Elis SA · EURONEXT:ELIS
Elis SA — Investor Day (June 2009)
33 slides from Elis SA's investor day presentation, Jun 17, 2009
Slide 1: Investor Day - Meaux (France), June 2009
JUN E 200 9 INVESTOR DAY - MEAUX (FRANCE)
Slide 2: Agenda
Agenda Elis and the product service system 2 Elis – markets & products 8 Elis model – key factors of success 21 INVESTOR DAY - ELIS - JUNE 2009
Slide 3: Agenda
Agenda Elis and the product service system 2 Elis – markets & products 8 Elis model – key factors of success 21 INVESTOR DAY - ELIS - JUNE 2009 2
Slide 4: Sustainable development target: rebalance the performance
Sustainable development target: rebalance the performance Economic growth € INVESTOR DAY - ELIS - JUNE 2009 kg h Limited use of Additional ressources local work 3
Slide 5: Sustainable development target: on the road to product service system
Sustainable development target: on the road to product service system Traditional economy Product service system Rental for specific use Economic process Sale of product (and supply of associated services) Value created by the producer Value created by the producer Economic value cycle and destroyed
Slide 6: Rental & maintenance: a virtuous circle
Rental & maintenance: a virtuous circle Design For the customer • Products fit customer’s objectives • An alternative to disposable products • Recyclable materials • “He gets what he needs”, neither more • Maximum number of use or less; no sleeping inventory, nor • Facilitate maintenance and repair
Slide 7: Sustainable development and Elis positioning: a social responsibility
Sustainable development and Elis positionning: a social responsability A A shared shared vision vision Individual success with the team Training Availability and listenning as a behaviour rule Security Respect of differences INVESTOR DAY - ELIS - JUNE 2009 6
Slide 8: Sustainable development and Elis positioning: our commitments
Sustainable development and Elis positionning: our commitments Elis leaflet “Au service du développement durable” Member of the U.N. “Global compact” program since October 2006 Member in a working group for the french government initiative “Grenelle de l’environnement” Partnership with Max Havelaar
Slide 9: Agenda
Agenda Elis and the product service system 2 Elis – markets & products 8 Elis model – key factors of success 21 INVESTOR DAY - ELIS - JUNE 2009 8
Slide 10: 2008 key figures at a glance
2008 2008 NET NET SALES SALES €1,036mm €1,036mm Reported Reported net net 2008 2008 EBITDA EBITDA debt debt €327mm €327mm €1,878mm €1,878mm Number Number of of staff staff 270,000 270,000 13,349 13,349 customers customers INVESTOR DAY - ELIS - JUNE 2009 154 154 99 locations locations in in countries
Slide 11: Value-added service provider in 4 market segments
Elis is a value-added service provider of textile and hygiene services in 4 market segments Industry, Trade and Services (“ITS”) Hygiene & Well-being (“HWB”) A wide range of garments addressing the needs of the workforce Washroom Services Textile Soap Toilet paper Toilet seat Feminine Fragrance Fron
Slide 12: Comprehensive product lines: workwear
Comprehensive product lines adressing multiple needs: workwear HYGIENE COMFORT PROTECTION HEALTHCARE HOSPITALITY IMAGE INVESTOR DAY - ELIS - JUNE 2009 CLEAN ROOM 11
Slide 13: Comprehensive product lines: flat linen
Comprehensive product lines adressing multiple needs: flat linen HOSPITALITY RESTAURANTS HEALTHCARE INVESTOR DAY - ELIS - JUNE 2009 12
Slide 14: Comprehensive product lines: hygiene & well-being
Comprehensive product lines adressing multiple needs: hygiene & well-being Toilet paper Feminine hygiene Hand towel Mats Beverages Fragrance dispenser INVESTOR DAY - ELIS - JUNE 2009 13
Slide 15: Geographic coverage
INVESTOR DAY - ELIS - JUNE 2009 Geographic coverage Note : each mark stand for a processing or a service center 14
Slide 16: Primary products & services
Elis is a leader in rental, cleaning and maintenance of textile and hygiene services in Continental Europe with a c.12% market share 2008 total sales = €1,036mm 83% 13% 4% France Rest of Europe Production Industry trade All products WW FL HWB Hygiene and Well-being Hotel and Restaurants Healthcare a
Slide 17: Low outsourcing in France leaves room for growth
The relatively low level of outsourcing in France leaves room for growth Markets for textile & Market penetration Market size (€mm) hygiene services Current rental scope Potential for rental penetration Current rental Total market €2 200 Industry €550 Trade and 25% 75% Services €1 600 Washroom €240
Slide 18: Platforms for European expansion
Elis successfully established platforms for European expansion Portugal Belgium Germany Spain Italy Luxembourg Switzerland Rental market size ~€70mm ~€250mm ~€1.8bn ~€320mm ~€790mm ~€15mm ~€420mm Elis competitive 11 22 NM NM 33 33 11 NM NM positioning CWS, Bardusch, Initial, CWS, Initial, Canon, Ini
Slide 19: Leadership positions on key markets with strong fundamentals
Elis enjoys leadership positions on 4 key markets with strong fundamentals Competitive positioning In Continental Europe, Elis benefits from leading positions in various countries: — France, Portugal, Belgium, Spain and Italy Industry competition varies significantly among European countries: — Elis
Slide 20: Molinel, Le Jacquard Français and Kennedy: key add-ons
Molinel, Le Jacquard Français, and Kennedy Hygiene Products, key add-ons to Elis’ service value proposition High end manufacturer in table linen and a strong brand name, Le Jacquard Français provides Elis with a unique answer to high end hospitality clients willing to customize their linen Leader in
Slide 21: Key figures
Key figures €mm 2007 2008 Change Pro forma* Net sales 992.9 1,035.9 +4.3% +3.0% EBITDA 318.0 327.0 +2.8% +2.3% % margin 32.0% 31.6% INVESTOR DAY - ELIS - JUNE 2009 Reported net debt 1,842 1,878 Standard capex 17.5% In % of net sales * excluding acquisitions 20
Slide 22: Agenda
Agenda Elis and the product service system 2 Elis – markets & products 8 Elis model – key factors of success 21 INVESTOR DAY - ELIS - JUNE 2009 21
Slide 23: A unique business model in the industry (1/2)
A unique business model in the industry (1/2) Multi-service is the backbone of Elis business model A platform and cost structure perfectly suited to target small businesses in parallel to large accounts and offer them a full range of services A key factor of differenciation Elis business model, full
Slide 24: A unique business model in the industry (2/2)
A unique business model in the industry (2/2) This service organisation is complementary to a sales force of 500 people exclusively focusing on acquiring new customers Elis leverages a dense logistics network ensuring proximity to the customer base (85% of customers are located within a 50km range f
Slide 25: More to textile rental than cleaning: value-added service provider
There is more to textile rental than just cleaning — A value-added service provider… Workwear example - Elis is a value-added provider of services, successfully integrating three complex requirements and capabilities Workwear example - Elis is a value-added provider of services, successfully integra
Slide 26: Growth and profitability fuelled by multi-service
Elis’ growth and profitability are fuelled by multi-service Multi-products offering + Fertile customer base + Flexible infrastructure + Route density = Success of multi-service approach INVESTOR DAY - ELIS - JUNE 2009 Key benefits for Elis Top line acceleration Profitability enhancement Top line acc
Slide 27: Multi-service model is the core of profitability
Elis’ multi-service model is the core of Elis’ profitability Commercial Commercial organisation organisation delivery up-selling/cross- Leveraging fixed cost base across multiple selling Leveraging fixed cost base across multiple Customer single services. Each stop is an opportunity to services. Eac
Slide 28: Dense network ensuring proximity to customers
Leveraging a dense and effective network ensuring proximity to customers 85% of customers within a 50 km range, customer intimacy enhanced by service rep mission Processing center Service center Central purchase and supply center INVESTOR DAY - ELIS - JUNE 2009 Processing centres Service centres Pro
Slide 29: Sourcing & supply chain management key to performance
Sourcing & supply chain management are key to Elis’ performance Objectives and operating principles Location of Elis’ suppliers Objectives and operating principles Location of Elis’ suppliers 1. Search for quality: as owner of rented items, Elis has to continuously increase product life cycle 2. Red
Slide 30: Value creation through acquisitions
Value creation through acquisitions: 6 companies taken over in 2008 for €17mm in annual revenues Country Market segment BBB FRANCE Hospitality RDM FRANCE Medical waste Prohytex FRANCE Workwear INVESTOR DAY - ELIS - JUNE 2009 B3F FRANCE Hospitality Cleanteam GERMANY Hospitality La Paloma SPAIN Hospit
Slide 31: The c.13,000 employee base is instrumental to success
The c.13,000 employee base is instrumental to Elis’ success Management Management principles principles and and values values Proximity to employees is part of Elis management culture Decision-making process is to a certain extent decentralised, thus empowering employees Training essential to guaran
Slide 32: Powerful platform with multiple growth opportunities
Elis Elis is is the the undisputed undisputed leader leader inin France France and and also also enjoys enjoys established established Elis Elis is is aa leader leader in in positions positions in in 88 attractive attractive markets enjoying markets enjoying strongstrong Powerful European countries
Slide 33: Investor Day - Meaux (France)
JU IN 200 9 INVESTOR DAY - MEAUX (FRANCE) INVESTOR DAY - ELIS - JUNE 2009