Restore : Half Year Results 2022 Presentation

2022 Half Year Results

Strategy Delivering Growth.

Highlights - Strategy delivering organic momentum and acquisition expansion

+32%	+36%
£140.3m	£21.2m
Revenue	Adjusted profit
	before tax*

-11%	+29%
1.7x	12.6p
Leverage*	Adjusted earnings
	per share*

Highlights

1. Strong business momentum and organic expansion resulting from high customer satisfaction and innovation
2. • Increasing demand and activity expansion continuing from 2021
   • Major contract wins in Digital and Information Management
   • Substantial evolution of Group's product range in Digital and Technology
   • 'Restoring our World' ESG strategy on track

1. Excellent progress in acquisition strategy
2. • Successful integration of prior year acquisitions all on track or ahead of plan
   • 2 bolt on acquisitions in Records Management for £0.7m during H1
   • Strategic acquisition of Ultratec for an enterprise value of £9.3m in May
   • Well developed pipeline of future acquisitions

1. Substantial financial growth
2. • Revenue of £140.3m (+ 32% YoY) from organic growth (+19%) and acquisitions (+13%)
   • Strong profit delivery of £21.2m (+36%) with price and productivity mitigation of cost pressures
   • Annualised run rate revenue increased to £280m pa

1. Strong cash management with leverage reduced to 1.7x with substantial headroom for further investment

1. Interim dividend of 2.6p per share declared (FY21: 2.5p)

1. Management remain confident the Group will deliver strong growth for FY 22

1. Growth strategy on track to double EBITDA to £150m

*See appendix glossary

2022 Half Year Results

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Delivering the growth strategy

Digital & Information Management

Strategy

O Growing through organic

expansion, strategic acquisition

and margin enhancement

Secure Lifecycle Services

through productivity and scale		No.2		No.1
Market Position
O Leading provider of;
		Partial Consolidation		Highly Fragmented
Market Structure

1) Digital and Information
Management	Others
	Restore		Restore
		Digital
	Records
2) Secure Lifecycle Services	Others
Management
	No.	small	Others
		large
O Substantial growth in our	3 & 4
foundation businesses which	Iron Mountain
deliver essential services
and provide strong recurring
revenues	Strategic Growth Targets
O Last 3 years developed leading

No.1

Extremely Fragmented

Restore

Technology

Others

large

Others

small

No.2

Highly Fragmented

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Datashred

Others

Shred-it

No.1

Fragmented

Restore

Harrow

Green

Others

small

Others

large

positions in large growth markets			2017	2018
in Digital and IT Recycling
	Sustained revenue expansion	£172.0m	£195.5m
through
• 2-4x scale	Growth	Profitable organic growth	+6.0%	+3.0%
• Product expansion	Attractive operating margins	20.2%	21.6%
O On track to double EBITDA to		Consistent EPS Growth	+27%	+12%
£150m+ in the medium term		Strong return on invested capital*	10.2%	10.0%
with many options to build
Quality		75%	70%
further	Strong cash conversion*

Carbon emissions

*Target calculations set out in appendix.

2022 Half Year Results

2019	2020	2021	Medium term goal
£215.6m	£182.7m	£234.3m	c.£450m - £500m
+3.1%	+1.4%	+5.0%	4-8+%
21.0%	17.4%	19.7%	>22%
+9%	(35%)	+55%	10 - 30%
11.4%	7.7%	10.1%	>11 - 13%
99%	87%	85%	80-90%
	8,196t	9,000t	Scope 1 & 2 Net Zero by 2035

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Financial Overview

Strategic investment and strong organic momentum delivering fast growth

2022 Half Year Results

4

Consolidated Income Statement:

Continued strong momentum and increase in scale

Income Statement Summary	H1 2022	H1 2021	Change
Revenue (£'m)	140.3	106.1	+32%
Adjusted PBT (£'m)*	21.2	15.6	+36%
Statutory PBT (£'m)	14.1	8.9	+58%
EBITDA (Post IFRS 16) (£'m)*	40.3	33.2	+21%
Adjusted basic EPS (p)*	12.6	9.8	+29%
Statuary EPS (p)	7.5	1.5	+400%
Dividend per share (p)	2.6	2.5	+4%

1. Strong revenue expansion to £140.3m (+32% YoY)
2. • Organic growth +19% YoY driven by strong Digital performance, sustained Records Management growth and increased activity in Datashred
   • Acquisition growth +13% YoY from successful integration of prior year investments

1. Adjusted profit before tax of £21.2m (+36% YoY)

1. Operating margins consistent with prior year at 18.4% with cost inflation largely recovered in price and productivity

1. Low level of exceptional and one-off items at £1.2m (H1 21: £1.7m) relating to bank refinancing (£0.3m) and acquisition related restructuring and transaction costs (£0.9m)

1. Adjusted EPS increased 29% to 12.6p supporting interim dividend payment of 2.6p (2021: 2.5p)

Group Revenue Momentum (£'m)

						140.3
					128.2
106.2	109.4			106.1
		89.5	93.2
H1 19	H2 19	H1 20	H2 20	H1 21	H2 21	H1 22

Group Margin Growth (£'m)

					7.0	21.2
15.6
	(0.6)		1.6
			(0.2)
		(2.2)
Adj PBT	Interest	Cost	Pricing	Non cash/	Underlying	Adj PBT
H1 2021		inflation		Accounting	growth	H1 2022

*See appendix glossary

2022 Half Year Results

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