Investor Presentation The UK’s leading provider of hazardous waste management solutions November 2019
Disclaimer The information in this presentation (the " Presentation ") has not been independently verified and must not be regarded as any kind of profit forecast or profit estimate. In addition, the Presentation contains forward-looking statements, which are, by their nature, inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. All statements that address expectations or projections about the future, including statements about operating performance, market position, industry trends, general economic conditions, expected expenditures and financial results, are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates" and similar expressions. Any statements contained herein that are not statements of historical fact are forward-looking statements. There are a number of factors including, but not limited to, commercial, operational, economic and financial factors, that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Augean PLC's (the " Company ") ability to control or estimate precisely, such as changes in taxation or fiscal policy, future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators, or other risk factors, such as changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions on a global, regional or national basis. These forward-looking statements speak only as of the date of the Presentation. The Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation. Accordingly, undue reliance should not be placed on these forward-looking statements. In particular, but without prejudice to the generality of the above, no representation or warranty is given, and no responsibility or liability is accepted, either as to the achievement or reasonableness of any future projections, forecasts, estimates or statements as to any prospects or future returns contained or referred to in the Presentation or in relation to the basis or assumptions underlying such projections or forecasts. The price of the Company’s shares and any income from them may go down as well as up and investors may not get back the full amount invested on disposal of such shares. 1
Augean at a glance The UK’s leading provider of hazardous waste management solutions Business overview Geographical footprint Augean is the UK’s leading hazardous waste management ⚫ Lerwick business with a strong and diverse customer base across a range of sectors and throughout the UK Aberdeen ⚫ Reliable and diverse revenue stream against which to Dundee operate key assets which are strategically located in respect of customers served Paisley Augean offers the full spectrum of hazardous waste ⚫ PC Waste services , from disposal via hazardous landfills to treatment Recovery Park Port Clarence for recovery or re-use of waste types Great Yarmouth Specialist critical analysis of best waste treatment / disposal ⚫ East routes for customers Thornhaugh Northants RMF ⚫ With 40% of the UK hazardous waste landfill and three associated dedicated treatment plants , the business is Avonmouth underpinned by secure long term disposal facilities Hazardous waste types treated originate from UK EfW plants, ⚫ Revenue and EBITDA contribution (2018A) waste from construction / demolition projects, industrial Revenue (£m) EBITDA (£m) processes, decommissioning of UK nuclear estate and the O&G industry 12% 27% ⚫ Strengthened and lean business built over the last two years with a focus on growing in key markets which are £80m £19m highly profitable with high EBITDA margin, cash generative 73% and high ROCE 88% Investment opportunities to extend the scope and ⚫ diversity of the business still remain and provide a platform Treatment and Disposal North Sea Services to sustain good growth into the future 2
Group divisional overview Active across multiple niche and attractive hazardous waste markets, with leading positions Divisions and waste value streams Treatment & Disposal North Sea Services Drilling and Well Construction & Radioactive waste Treatment & Industrial EfW residue Waste Services Abandonment industrial waste services recovery Services Treatment and disposal Treatment and disposal Disposal of low level Recovery and recycling Waste management Cleaning and General waste of by-products of contaminated waste activity radioactive of oil and solvents and waste generated decontamination management generated from EfW and from construction / waste mainly generated the generation of from the drilling and services, including services to active biomass plants (e.g. demolition activities and from decommissioning secondary liquid and abandonment of vessel, tanks tube O&G rigs and APCr ash) specialist manufacturers of UK nuclear plants solid fuels from haz wells bundles cleaning platforms packaged waste Est. Mkt. size c. £1.5bn – £2bn c. £1bn Market niche growth ✓ Most competitive ✓ Specialist ✓ Only disposal site ✓ Comprehensive ✓ Multi skilling ✓ Strategic ✓ One-stop-shop capabilities – pricing customer and capable of accepting treatment for all access to waste Competitive advantages technical support radioactive waste types allowing for a decommission- management ✓ Unique know-how team hazardous waste ✓ Multiple sites with wide range of ning hub and solutions for ✓ Multiple sites with ✓ Soil washing ✓ Preparation & in house know-how the offshore national coverage national coverage services O&G industry capabilities cleaning pre disposal ✓ On-site Technical Resource capability 3
Strategy post August 2017 ➔ Focus on extending the reach and share of existing growth niche markets ➔ Waste streams / customers profitability ➔ Maintain focus on margin and ROCE optimisation ➔ Invest where returns exceed 25% Overall Group strategic focus ➔ Site optimisation to drive efficiencies and increase utilisation ➔ Cost savings ➔ Drive cash ➔ Resolve HMRC ➔ North Sea, particularly decommissioning ➔ Support for Nuclear decommissioning Drive growth in specialist defensible areas and support the ➔ Contaminated construction and demolition soils current asset base with targeted ➔ EfW residue growth — support forward investment ➔ Invest in waste stream specific treatments to develop and enhance existing key assets 4
H1 2019 Financial highlights 1 1 4 7.61 44.2 31.6 +40% +114% Adjusted revenue 3.56 Adjusted EPS increase H1 2019 increase H1 2019 (excluding landfill tax) vs H1 2018 vs H1 2018 H1 '18 H1 '19 H1 '18 H1 '19 2 5 22.8 9.6 Net cash position of +100% +178% £22.8m – including Adjusted PBT 4.8 £3.35m increase H1 2019 increase H1 2019 8.2 proceeds received from the vs H1 2018 vs H1 2018 sale of East Kent H1 '18 H1 '19 H1 '18 H1 '19 3 6 14.2 +71% 8.3 44% Adjusted EBITDA ROCE increase H1 2019 Annualised ROCE vs H1 2018 H1 2019 H1 '18 H1 '19 Note 1 From continuing operations excluding landfill tax, exceptional items and share based payments 5
Group financials FCF (£m) 2 Revenue (£m) EBITDA (£m) Margin (%) Cash conversion (%) 5% 19% 17% 22% 24% 34% 39% 82% Growth (%) 19 80 15 67 15 64 13 6 4 1 2016A 2017A 2018A 2016A 2017A 2018A 2016A 2017A 2018A Treatment and Disposal North Sea Services Significant improvement in cash Strong track record of revenue growth Industry leading margins generation Notes 1 Revenue for 2016A excludes revenue generated from AIS (£5.5m), Colt (£3.5m) and East Kent (£2.7m) which are excluded from the financials reported on the continuing basis for 2017A and 2018A 2 Free Cash Flow (FCF) defined as EBITDA less capex; cash conversion defined as FCF over EBITDA 6
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