2014 Preliminary Results Presentation 1 1 Welcome 27 February - PowerPoint PPT Presentation

2014 Preliminary Results Presentation 1 1 Welcome 27 February 2015 1

This presentation contains statements that are, or may be, forward-looking regarding the group's financial position and results, business strategy, plans and objectives. Such statements involve risk and uncertainty because they relate to future events and circumstances and there are accordingly a number of factors which might cause actual results and performance to differ materially from those expressed or implied by such statements. Forward-looking statements speak only as of the date they are made and no representation or warranty, whether expressed or implied, is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Other than in accordance with the Company’s legal or regulatory obligations (including under the Listing Rules and the Disclosure and Transparency Rules), the Company does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. Information contained in this announcement relating to the Company or its share price, or the yield on its 2 2 shares, should not be relied upon as an indicator of future performance. Nothing in this presentation should be construed as a profit forecast . 2

2014 Preliminary Results Introduction John McAdam Chairman 27 February 2015 3

Executing our Strategy: Andy Ransom Chief Executive 27 February 2015 4

Introduction At constant exchange rates • Strong end to the year with Q4 revenue, profit and cash; contributing to good overall performance for 2014: - Ongoing* revenue +3.6%, organic +1.2%, +2.4% from acquisitions - 6.5% ongoing* profit growth supported by reduction in central overheads - £93m improvement in continuing free cash flow at £129m • Accelerated M&A activity: 30 bolt-ons (23 in pest) with combined revenues of £66m • Further rebalancing of portfolio to higher growth markets and segments : - Expansion of Emerging and Growth quadrants to build density - Sale of IFS in March, further divestments in Manage for Value quadrant • £260m reduction in net debt – lowest net debt in 15 years – credit rating upgraded to BBB • 12.1% proposed increase in dividend year on year *Ongoing revenue and profit exclude the financial performance of disposed businesses but include results from acquisitions Solid first year performance towards medium-term targets, despite ongoing market challenges in parts of Europe • 5

2014 Preliminary Results Financial Overview Jeremy Townsend CFO 27 February 2015 6

Financial Highlights (Continuing Operations) Q4 £ million FY 2014 2013 2014 2013 £m £m £m £m REV Revenue at CER 474.3 453.5 4.6% 1,840.3 1,791.4 2.7% Revenue at CER – ongoing* 472.0 449.5 5.0% 1,830.5 1,766.8 3.6% Adjusted PBITA at CER 74.7 71.9 4.0% 249.1 236.1 5.5% Adjusted PBITA at CER – ongoing* 74.6 70.1 6.4% 248.7 233.5 6.5% PROFIT Adjusted PBTA at CER 64.9 56.3 15.3% 206.9 180.8 14.4% Adjusted PBTA at AER 59.8 54.04 9.9% 190.8 180.8 5.5% PBT at CER 52.2 23.8 119.3% 177.7 112.2 58.4% CASH Operating cash flow at AER 209.5 137.1 Free cash flow at AER 128.9 36.3 Adjusted EPS at AER 8.05p 7.36p 9.4% DIV Dividend 2.59p 2.31p 12.1% CER = constant exchange rates AER = actual exchange rates *Ongoing revenue and profit exclude the financial performance of disposed businesses but include results from acquisitions 7

Key Deliverables in 2014 At constant exchange rates Our plan for 2014 was to improve our financial performance … quickly Objectives Strong Progress Objectives Strong Progress • Demonstrate growth in revenue ü +3.6% increase in ongoing* revenue • Deliver improvement in profit performance ü +6.5% increase in ongoing* operating profit, £11.4m reduction in central and divisional overheads • Move away from reliance on restructuring charges ü P&L charge of £9.3m vs. £47.4m in 2013 • Generate significant improvement in cash delivery ü £93m improvement in free cash flow at £129m • Allowing greater freedom to execute M&A ü 30 bolt-ons; in-year cash spend £68m • Pay down debt ü £260m reduction in debt at £775m, net debt to EBITDA 1.9x ü +12.1% increase in dividend • Increase dividend *Ongoing revenue and profit exclude the financial performance of disposed businesses but include results from acquisitions 8

North America At constant exchange rates • Strong performance in 2014 supported by acquisitions % Group Revenue % Adj. PBITA • Revenue 1 up 6.6% (+1.7% organic), operating profit 2 up 15.6% - Strong end to the year with Q4 revenue up 8.4% (+3.3% organic) 20.0% 13.6% - Revenue growth supported by acquisitions (10 bolt-ons with annualised revenues of c.£20m) - Strong profit growth driven by acquisitions as well as back office and property rationalisation FY 2014 FY Revenue 1 £366.9m 6.6% - 0.9% improvement in margins, further improvement opportunities Adj. PBITA 2 £42.9m 15.6% through acquisitions, scale efficiencies and service productivity Margin % 11.7% 0.9% 1 ongoing revenue represents revenue with disposals removed and includes revenue from acquisitions 2 before amortisation and impairment of intangible assets, reorganisation costs and one-off items 9 9

Europe At constant exchange rates • 2014 financial performance held back by Benelux and challenging economic % Group Revenue % Adj. PBITA 3 environment • FY revenue 1 up 1.7% (-0.2% organic), operating profit 2 down 3.7% 48.8% 53.2% − More resilient Q4, revenue 1 up 2.1% − 2014 revenue growth driven by Germany (+2.3%) and Latin America (+308%) - France broadly flat (+0.3%), Benelux down 2.0% − Profit down 3.7% largely due to Benelux (-£9.9m) impacted by continued effect of poor service levels in 2013 and challenging economic conditions resulting in FY 2014 FY contract terminations and pricing pressure Revenue 1 £892.6m 1.7% Adj. PBITA 2 £167.8m (3.7%) • Outlook for European businesses in 2015 mixed Margin % 18.6% (0.9%) − German, Belgian and Italian businesses experiencing positive trading conditions - 1 ongoing revenue represents revenue with disposals expect to make good progress removed and includes revenue from acquisitions 2 before amortisation and impairment of intangible assets, − Outlook for France and Holland more uncertain with challenging economic reorganisation costs and one-off items 3 % excludes divisional overheads conditions and competitive markets expected to continue • Overall profitability in the Europe region in 2015 expected to be broadly in line with 2014 10 10

Middle East Turkey, Africa UK and ROW At constant exchange rates • FY revenue 1 up 5.6% (+3.2% organic), operating profit 2 down 1.0% % Group Revenue % Adj. PBITA 3 - Strong end to the year with Q4 revenue up 8.3% (+4.2% organic) - Continued growth from UK pest and hygiene categories, pest jobbing work 17.5% 21.2% in particular, but margins held back by new large contract set-up in UK and integration of previously loss making Green Compliance acquisition - Strong revenue growth in RoW, particularly Middle East and Caribbean, but offset by lower revenues in South Africa. Margins held back in South FY 2014 FY Africa by industrial action and pricing pressure Revenue 1 £321.2m 5.6% • Good execution of M&A programme – six acquisitions in year Adj. PBITA 2 £66.7m (1.0%) Margin % 20.7% (1.3%) including Peter Cox property care business in Q4 1 ongoing revenue represents revenue with disposals • Margin improvement expected in 2015 as new contracts and removed and includes revenue from acquisitions 2 before amortisation and impairment of intangible assets, acquisitions mature reorganisation costs and one-off items 3 % excludes divisional overheads 11 11

Asia At constant exchange rates • Excellent progress in 2014 % Group Revenue % Adj. PBITA • FY revenue 1 up 8.1% (+6.7% organic), operating profit 2 up 18.2% - Strong end to the year with Q4 revenue up 11.9% 5.8% 2.9% - Good performances from both pest and hygiene categories - Combined revenue growth of 29.1% from India, China and Vietnam - Combined high single-digit revenue growth from Indonesia and Malaysia FY 2014 FY - Profit increase reflecting leverage from revenue growth, 1.2% Revenue 1 £105.8m 8.1% Adj. PBITA 2 £9.1m 18.2% improvement in margins Margin % 8.6% 1.2% • Three small acquisitions in Singapore, Korea and India; M&A 1 ongoing revenue represents revenue with disposals removed and includes revenue from acquisitions pipeline strong 2 before amortisation and impairment of intangible assets, reorganisation costs and one-off items • Further margin improvement opportunities from revenue growth and back office rationalisation 12 12