Restore : Full Year 2021 Presentation

2021 Full Year Results

Restore is significantly larger and stronger and well positioned for continued expansion in 2022

+28%	+64%
£234.3m	£38.1m
Revenue	Adjusted profit
	before tax*

+0.0%	+55%
1.8x	23.2p
Leverage*	Adjusted basic

earnings per share*

*See appendix

Business and Strategic Highlights

1. Good performance across all business units contributing to growth, with strong underlying organic growth and eight successful acquisitions driving increased scale and capability across the Group

1. Exit run rate revenue of £260 million, 21% higher than pre pandemic levels

1. Restore Digital's transformative acquisition of EDM in April 2021 doubles exit run rate revenue to £46 million, enhances capability (Cloud, BPO, Software) and delivers scale margin benefit

1. Restore Technology completed three strategic acquisitions doubling run rate revenue to £34 million with strong demand and margin momentum building through the year

1. Restore Records Management gained further market share with strong organic revenue growth of 5.6%, alongside acquisition revenue growth of 5.9% and COVID-19 repair of 4.2%
2. • Positive net box growth momentum in line with expectations at 1.3% (2020: 0.9%)
   • Property consolidation strategy progressed with new high density storage facilities in Heywood and Sittingbourne

1. Restore Datashred continued steady recovery to 84% of pre- pandemic activity levels by Q4, with significant progress in underlying productivity although profit behind 2019 levels

1. Restore Harrow Green activity levels strong throughout the UK with a new site in Cambridge addressing the life sciences sector and delivering record profitability

1. Development of significant pipeline of further acquisition opportunities across the Group to support the ambitious growth plans

1. The Group announced its new ESG strategy, 'Restoring our World' with ambitious targets including our Net Zero commitment by 2035

Financial Highlights

1. Revenue up +28% to £234.3 million (2020: £182.7 million) driven by:
2. • Organic growth +5.0%
   • COVID19 repair +5.6%
   • In year acquisitions +16.4% plus full year effect of prior year acquisitions +1.2%

1. Adjusted profit before taxation up +64% to £38.1 million (2020: £23.2 million) and operating margin increasing from 18.5% in H1 to 20.7% in H2

1. Statutory profit before tax up 475% to £23.0 million

1. Strategic acquisitions successfully completed totalling £86.3 million during 2021, delivering a post synergy ROIC of 13.0%

1. Strong Cash conversion* at 85% with closing net debt at £100.8 million and leverage of 1.8x

1. New increased debt facility agreed post year end at enhanced terms, providing further capacity for continued investment

1. Proposed final dividend of 4.7 pence, taking total dividend for 2021 to 7.2 pence (2020: nil pence)

2021 Full Year Results

2

Results demonstrate delivery against our ambitious growth strategy to grow revenue to £450-500m and profits >£150m

Revenue growth track record

£450-500m

						c.£260m	£278m	£292m
			215.6		234.3
		195.5
	172.0		182.7
129.4
2016A	2017A	2018A	2019A	2020A	2021A	2021	2022*	2023*	Medium
						Exit run			term target
						rate

Sustained EBITDA generation and high quality margins

		£150m+
		c.£85m
48.2	70.0	74.2
3916%.8		57.4
.3

2017-2019	2019A	2020A	2021A	2021	Medium
Average growth				Exit run rate	term target
Pre-IFRS16**

5%	85%	£86.3m	13.0%
Organic revenue	Underlying cash	M&A spend 2021	ROIC on FY 2021
growth	conversion		Acquisitions

• Consensus revenue across the 5 covering analysts representing an organic only plan.
• 2017 - 2019 EBITDA as reported on a pre-IFRS16 basis. 2019 onwards reflects adoption of IFRS16.

2021 Full Year Results

3

Continued execution of the strategy delivers against our targets

Profit Roadmap

				Reduce
				Costs
		£800m+	better for less
		cost
		of revenue to
		consolidate
c.4-8+%	Margin
Revenue pa				expansion
Grow faster		Acquisitions
than market
Organic

2021

Profit

*Target calculations set out in appendix.

2021 Full Year Results

Strategic Growth Targets

		2017	2018	2019	2020	2021	Medium Term Targets
	Sustained Revenue	172.0	195.5	215.6	182.7	234.3	c.450-500m
	Expansion
	Profitable Organic	+6.0%	+3.0%	+3.1%	+1.4%	+5.0%	4-8+%
Growth	Growth
Attractive Operating	20.2%	21.6%	21.0%	17.4%	19.7%	>22%
	Margins
	Consistent EPS	+27%	+12%	+9%	(35%)	+55%	10-30%
	Growth*
	Strong Return On	10.2%	10.0%	11.4%	7.7%	10.1%	>11-13%
Quality	Invested Capital*
Strong Cash	+75%	+70%	+99%	+87%	+85%	80-90%
	Conversion*
	Carbon Emmissions				8,196t	9,000t	Scope 1 & 2 net
				zero by 2035

4

Restructured Divisions aligned for growth

Digital & Information Management	Secure Lifecyle Services

Growth trends	Growth trends
Secure storage	Secure data destruction and recycling
Flexible working demands	Workplace transformation
Digitisation	Rising technology lifecycle requirements
Market size: £800m growing at c.3%	Market size: £1.1b growing at c.4%
2021 Full Year Results	5