Elis Sa · EURONEXT:ELIS
Elis Sa — Q3 2022 Earnings Presentation
19 slides from Elis Sa's earnings presentation, Oct 26, 2022
Slide 1: Q3 2022 trading update
Q3 2022 trading update 26 October 2022 We empower your day
Slide 2: Disclaimer
Disclaimer This document may contain information related to the Group’s outlook. Such outlook is based on data, assumptions and estimates that the Group regarded as reasonable at the date of this press release. Those data and assumptions may change or be adjusted as a result of uncertainties relatin
Slide 3: Q3 2022 trading update, outlook update, Q&A
Q3 2022 trading update Update on full-year 2022 outlook Q&A 3
Slide 4: Further strong momentum in Q3 2022, with accelerating price effect driven by higher inflation
Further strong momentum in Q3 2022, with accelerating price effect driven by higher inflation +17.0% organic growth in Q3 2022, driven by additional price Surging energy costs in August and Full-year 2022 objectives revised adjustments and good activity September led to higher-than- on the back of s
Slide 5: Q3 organic growth driven by further recovery in Hospitality, good commercial momentum and efficient pricing adjustments
Q3 organic growth driven by further recovery in Hospitality, good commercial momentum and efficient pricing adjustments Q3 2022 organic revenue evolution by geography +32.5% +21.4% +17.0% +17.0% +13.7% +13.2% +7.1% France Central Scandinavia & UK Southern Latin Group Europe Eastern Europe & Ireland
Slide 6: Good Hospitality summer season in France and Southern Europe
Good Hospitality summer season in France and Southern Europe Activity in the UK is still trailing 2019 level Hospitality volumes - Basis 100 January 2019 200 175 150 125 Continued activity pick-up in Q3 2022 100 75 Good summer season in Europe, especially in France, Spain 50 and Portugal 25 0 Activi
Slide 7: Non-hospitality markets continue to benefit from strong structural tailwind
Non-hospitality markets continue to benefit from strong structural tailwind Elis’ operational excellence and commercial dynamism further boost growth Many new contract wins in 2022, with an acceleration in first-time outsourcing The Group is rolling out to some other countries services that have alr
Slide 8: No sign of slowdown so far, and Elis' end-markets are very resilient through economic downturns
No sign of slowdown so far, and Elis’ end -markets are very resilient through economic downturns Main contributors End market Main market characteristics to 2021 revenue Industry is resilient given the nature of our clients, which mostly Food processing: 25% Industry are very resilient themselves Ph
Slide 9: Gas and electricity prices doubled in Q3 2022 compared to the first 6 months of the year
Gas and electricity prices doubled in Q3 2022 compared to the first 6 months of the year Netherlands TTF Natural Gas Forward Day Ahead (Bloomberg: TTFGDAHD) H1 2022 average gas price: 99€/MWh +101% Q3 2022 average gas price: 200€/MWh France Baseload Power Forward Day Ahead H1 2022 average electricit
Slide 10: +€35m additional costs for 2022 vs previous estimates
+€35m additional costs for 2022 vs previous estimates Additional pricing initiatives have been launched Additional inflation-related costs expected Cost item for 2022 vs July estimates Gas, electricity and fuel c. €25m Personnel costs c. €5m Other items (chemical products, spare c. €5m parts, consum
Slide 11: Elis should be able to fully offset the 2022 inflation-related cost increase through pricing initiatives
Elis should be able to fully offset the 2022 inflation-related cost increase through pricing initiatives The nature of the services provided by Elis leads to good pricing power The services proposed by Elis are essential for our customers ➔ Most of our customers cannot operate their business without
Slide 12: Q3 2022 trading update, outlook update, Q&A
Q3 2022 trading update Update on full-year 2022 outlook Q&A 12
Slide 13: Upgraded FY 2022 organic revenue growth guidance; Initial thoughts on 2023 organic growth
Upgraded FY 2022 organic revenue growth guidance Initial thoughts on 2023 organic growth We currently expect full-year 2022 organic growth to be above +20% (previously between +18% and +20%) Main working assumption: Activity in Hospitality in Q4 is expected to be around 2019 level on the back of goo
Slide 14: FY 2022 adjusted EBITDA margin guidance revised
FY 2022 adjusted EBITDA margin guidance revised FY 2022 adjusted EBIT and headline net income per share guidance confirmed 2022 adjusted EBITDA margin now expected at c. 33.0% (previously expected at c. 33.5%) ➔ Pricing adjustments cover cost base increase in Euros, with a mechanical dilutive effect
Slide 15: Elis' rapid deleveraging paves the way for investment grade rating
Elis’ rapid deleveraging paves the way for investment grade rating By the end of 2023 2024 2025 and beyond Net financial leverage Net financial leverage Maintaining close to 2.0x below 2.0x investment grade rating ➔ This deleveraging trajectory should quickly make Elis eligible for investment grade
Slide 16: Deleveraging and financial rating improvement should limit future refinancing costs
Deleveraging and financial rating improvement should limit future refinancing costs and improve Elis’ risk profile Well-diversified financing Debt and rating highlights As of 30 September 2022 Financial leverage of 2.6x as of 30 September 2022 compared to Bond (issued May 2022) Coupon 4.125% €300m M
Slide 17: Q3 2022 trading update, outlook update, Q&A
Q3 2022 trading update Update on full-year 2022 outlook Q&A 17
Slide 18: Appendix: Financial definitions
Appendix: Financial definitions Organic growth in the Group’s revenue is calculated excluding (i) the impacts of changes in the scope of consolidation of “major acquisitions” and “major disposals” (as defined in the Document de Base) in each of the periods under comparison, as well as (ii) the impac
Slide 19: Investor Relations contact
Nicolas Buron ELIS SA Investor Relations Director 5, boulevard Louis Loucheur Tel: +33 1 75 49 98 30 92210 Saint-Cloud Mob: +33 6 83 77 66 74 France Email: [email protected] https://fr.elis.com/en We empower your day