recall holdings limited 2016 half-year results · underlying ebitda 91.4 107.0 100.4 7% -9%...

Recall Holdings Limited

2016 Half-Year Results

29 February 2016

Doug Pertz, President & CEO Mark Wratten, CFO

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Background information

Unless otherwise stated

♦ Recall divested the German SDS business in December 2014. To demonstrate the performance

of the existing business, the prior comparable period in this presentation excludes any

contribution from this business

♦ Currency amounts are in US dollars

♦ Comparisons (absolute and percentages) are at constant currency

─ Constant currency results are presented by translating both current and prior corresponding period foreign currency results

into US dollars at the exchange rates applicable in the prior comparable period, so as to show relative performance between

the two periods before the translation impact of currency fluctuations.

♦ Numbers may not tie due to rounding

♦ Statutory results presented within the Appendix 4D comply with International Financial Reporting

Standards (IFRS) and are in accordance with Australian Accounting Standards (AAS)

♦ Definitions of terms and acronyms are in the appendix

.

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Strong underlying trends in H1 FY16

♦ Executing strategic plan until shareholders vote on transaction

♦ Revenue growth in line with expectations

─ organic growth ~2.0%, ahead of FY15

─ acquisition growth ~5.0%, slowed to assist Iron Mountain transaction process

♦ Growth across all service lines

♦ Organic carton growth across all regions

♦ Cost control maintained EBITDA margins

♦ Underlying trends are strong, although delay associated with Iron Mountain transaction is

creating short term revenue headwinds

Revenue EBITDA NPAT 1H FY16

Dividend

per share

9.5 (AUD cents)

+5.5%

+6.7%

$450.9M

+6.6%

$107.0M

+7.3% $38.3M

1H FY16

Constant FX

3

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Revenue growth – all service lines and categories

DMS +7.0%

♦ Organic carton growth in all regions

♦ Pricing net positive, although some pressure

in Europe

♦ Retention and activity revenue grew at

similar rate

♦ Continued strong performance in the

Americas

DPS +6.6%

♦ Growth driven by acquisitions and organic

retention revenue

♦ Trend to archival use continues to impact

activity revenue

SDS +5.1%

♦ Acquisition driven in North America and ANZ

Retention and Activity revenue

♦ Retention +7.9% – strong growth in North

America

♦ Activity +5.1% – driven by DMSP and SDS

Service line revenue growth

Retention and Activity revenue

% Growth 7.0% 6.6% 5.1% 6.7%

4

+7.9% +5.1%

231.7

180.7

250.1

190.0

0

50

100

150

200

250

300

Retention Activity

(US$

M)

H1 FY15 H1 FY16

422.4

450.9 23.1 2.9 2.5

350.0

375.0

400.0

425.0

450.0

475.0

H1 FY15Actual

DMS DPS SDS H1 FY16Constant

(US

$M

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Continued organic carton growth

1 Carton growth calculated using a rolling 12 month period

2 5 Year CAGR based on H1 FY11 ending holdings of 96.9M. 124.8M E’s is inclusive of the 1.0M E loss from the Citistorage fire. Adjusting

for the loss, the CAGR would be 5.3%.

Carton holdings at period end

(E millions)

98.2 101.9 104.7 114.3 122.1 124.8

-

20

40

60

80

100

120

140

FY11 FY12 FY13 FY14 FY15 H1 FY16

Cart

on

Eq

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nts

(m

illio

ns)

♦ Net carton growth of +4.8%1

♦ Organic carton growth in all regions

♦ Acquisition carton growth of +2.5%

♦ Carton growth impacted by

─ Completion of large implementations in prior period

─ Iron Mountain transaction uncertainty caused delays in

client decision-making

♦ Permout rate continued to decline

2.4%

2.4%

Net Organic Carton Growth1

Total Net Carton Growth1

2.7%

2.7%

2.6%

5.3%

1.6%

9.2%

2.2%

11.1%

2.6%

7.7%

2.2%

4.8%

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Delivered revenue growth across all regions

Americas Revenue +11.2%

♦ Organic revenue growth ~3% driven by

penetration into SME market

♦ Strong growth in Brazil, but slower due to local

economic issues

♦ Revenue growth across all service lines

♦ Acquisition revenue growth ~8%

♦ EBITDA +13.1%; EBITDA margin improved

Australia / New Zealand Revenue +3.2%

♦ Revenue growth driven by acquisitions

♦ Organic revenue flat – positive momentum from

FY15 continued into H1 FY16

♦ Positive net organic carton growth, improved

customer retention and acquisitions

♦ Short term EBITDA margin impact as expected

─ lower margin acquisitions (synergies yet to be realised)

─ duplicate costs associated with FOP 2 implementation

Asia

Revenue +4.0%

♦ Revenue growth derived organically

♦ Growth constrained by capacity

♦ Strong EBITDA margins maintained –

revenue mix offset by improved cost

controls and efficient capacity management

Europe Revenue +2.1%

♦ Revenue driven by acquisitions

♦ Organic revenue flat – carton growth offset by

pricing pressure

♦ Two acquisitions in H1 FY16 – France and UK

♦ Switzerland acquisition in Jan 2016 expanded

geographic footprint

♦ Cost control maintained EBITDA margin

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Update on proposed acquisition by Iron Mountain

7

Regulatory approval status

♦ Substantial progress made in Australia, USA, UK and Canada

♦ Confident that the substantive concerns of the authorities will be addressed and approvals

received

♦ Under the SID, IRM required to make any divestments necessary to obtain regulatory approval,

subject to certain revenue thresholds in North America only

Timing

♦ Required approvals not expected to be obtained in time for the Scheme Meeting to proceed on

17 March 2016

♦ Recall Scheme Meeting rescheduled for 19 April 2016, with implementation on 2 May 2016,

subject to court approval

♦ Timetable revised based on direction and assurances from Iron Mountain

Value creation

♦ Iron Mountain confident transaction continue to result in meaningful synergies and accretion

♦ Recall Directors continue to unanimously recommend shareholders vote in favour, in the

absence of a superior proposal

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Mark Wratten – CFO

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Income statement

♦ Gross margin up +30bps

─ Effective cost control initiatives

─ Initial benefits from FOP 1

♦ EBITDA margins maintained

─ lower margin acquisitions (synergies yet

to be realised)

♦ Depreciation and amortisation

increased due to investments and

acquisitions

♦ Significant items before tax -

$20.4M1

─ $16.2M associated with Iron Mountain

transaction

♦ Underlying profit after tax up +7.3%

9

H1 FY16 H1 FY16 H1 FY15 % Change

US$M Actual FX Constant

FX Actual FX

Constant

FX

Sales revenue 397.6 450.9 422.4 6.7%

Operating costs 341.8 383.1 357.8 7.1%

Underlying profit (EBIT) 55.8 67.8 64.7 4.9%

EBIT margin % 14.0% 15.0% 15.3%

Depreciation and amortisation 35.6 39.2 35.7 9.8%

Underlying EBITDA 91.4 107.0 100.4 6.6%

Underlying EBITDA % 23.0% 23.7% 23.7%

Results before Significant

Items

Underlying profit (EBIT) 55.8 67.8 64.7 4.9%

Finance costs (13.3) (14.9) (8.1)

Underlying profit before tax 42.5 52.9 56.6 (6.5%)

Tax expense (12.5) (14.6) (20.9)

Underlying profit after tax 30.0 38.3 35.7 7.3%

Underlying basic EPS (US cents) 9.6 12.2 11.4 6.9%

Effective Tax Rate (ETR) % 29.4% 36.9% 1 Further detail in Appendix

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Strengthening US dollar impacting statutory financials

♦ H1 FY16 revenue difference of $53.3M between

actual ($397.6M) and constant currency ($450.9M)

due to strengthening USD

♦ FX impact varies through P&L

─ Earnings and margin mix differ by currency

─ Different tax rates

─ Debt allocation

─ Global cost principally incurred in USD

♦ FX impact on reported EBITDA has negatively

impacted banking covenant position

─ ~3.1x (Actual FX) and ~2.8x (Constant FX)

♦ Significant FX movement occurred during H1

FY15, consequently expect less impact in H2

FY16 if rates stabilise

10

H1 FY16 H1 FY16 H1 FY15 %

Change

%

Change

US$M Actual

FX

Constant

FX

Actual

FX

Constant

FX

Actual

FX

Sales revenue 397.6 450.9 422.4 7% -6%

Underlying profit (EBIT) 55.8 67.8 64.7 5% -14%

Underlying EBITDA 91.4 107.0 100.4 7% -9%

Underlying profit after tax 30.0 38.3 35.7 7% -16%

0.60

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1.00

1.10

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2015 2016 Forecast

AUD:USD % Change Fiscal 15 (-18.2%) Fiscal 16 YTD (-5.0%)

0

50

100

150

BRL EUR AUD OtherCurrencies

USD

US

D

(millio

ns)

H1 FY16 Revenue Actual vs Constant

Constant

Actual

FX impact

$6.8

$16.4

$13.2

$16.9

37%

18% 11%

6%

29%

H1 FY16 Revenue by currency

USD

AUD

EUR

BRL

Other

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Finance costs and tax

Finance costs

♦ Reported net borrowing costs in line with H1

FY15

♦ Impact of FX movements

─ H1 FY16 incurred $2.6M in FX losses, predominantly on

intercompany transactions

─ H1 FY15 included $2.7M unrealised FX gain that

reversed in H2 FY15

11

Tax

♦ H1 FY16 effective tax rate (ETR) was 24.4% (at

actual FX rates)

─ H1 FY16 underlying effective tax rate of approximately

29.4%

─ ETR benefited from adjustments to tax provision

balances

♦ ETR for FY16 expected to be approximately 27%

H1 FY16 H1 FY15

Actual FX Actual FX

Net borrowing costs 10.7 10.8

FX losses / (gains) and other 2.6 (2.7)

Finance costs 13.3 8.1

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Cash flow and funding

Cash flow statement ♦ H1 FY16 EBITDA conversion ratio of 71%

─ Conversion ratio traditionally stronger in H2

─ Annual bonus payments and insurance costs

incurred in H1

─ European invoice cycle is H2 weighted

─ Expect FY16 conversion ratio to be broadly

consistent with FY15 at ~ 96%

♦ Net debt of $623M1 at 31 Dec 2015

─ Increase of $57M from 30 June 2015

─ Key funding requirements

─ Acquisitions $31M, Capex $34M

─ Benefit of stronger US dollar on foreign denominated

loans

♦ Net debt to EBITDA ratio of 3.1x2 (covenant of

3.5x)

─ Ratio increased from 2.6x at FY15

─ Approx 0.3x due to FX impact on EBITDA (2.8x at

Constant currency)

1 Excludes capitalised borrowing costs

2 Calculated as defined in the Syndicated Facility Agreement

H1 FY16 H1 FY15

US$M Actual FX Actual FX

Cash generated from operations 46.8 60.8

Finance costs and taxes paid (15.9) (28.1)

Net cash from operating activities 30.9 32.7

Capital expenditure (PP&E and Intangible

assets) (33.8) (27.5)

Proceeds from sale of business 0.0 20.4

Acquisition of businesses (net of acquired

cash) (31.2) (105.7)

Net cash from investing activities (65.0) (112.8)

Net change in borrowings 83.4 104.1

Dividends paid (22.3) (22.0)

Net cash from financing activities 61.1 82.1

Net increase in cash and cash equivalents 27.0 2.0

Cash conversion reconciliation

Cash generated from operations 46.8 60.8

Add back cash outflows on Significant Items 18.0 10.3

Adjusted cash generated from operations 64.8 71.1

Underlying EBITDA 91.4 100.4

Cash conversion % 71% 71%

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Reduced capital expenditure

Capital expenditure by category

H1 FY16 H1 FY15

US$M Actual FX Actual FX

Business line growth 10.2 14.5

Business operations -

maintenance/replacement 7.5 4.0

Operational efficiencies and cost savings 13.4 6.1

Product development 2.6 2.8

Real estate 0.0 0.1

Total capital expenditure 33.8 27.5

Less FOP and digital services (14.9) (5.3)

Adjusted capital expenditure

(excluding FOP and digital) 18.9 22.2

Percentage of revenue (total) 8.5% 6.4%

Percentage of revenue (adj. for FOP

and digital) 4.7% 5.2%

♦ Continued discipline of for capex

♦ Base capex as percentage of revenue

improved from 5.2% to 4.7%

♦ Increase in total capex - investment of

$14.9M in FOP 1 & 2 and digital services

♦ Major spend categories include

─ FOP 1 ($5.8M) and FOP 2 ($6.5M)

─ Racking – $5.5M

─ Customer on-boarding – $2.6M

─ Safety & security improvements - $3.2M

─ Portal/CommandIG & Digital Development –

$2.6M

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Facility optimisation programs on track

FOP 1 and FOP 2 to deliver IRRs in excess of 20%

FOP 1

♦ Announced June 2014 – expected completion

December 2016

♦ 27 facilities exited to date in North America and 1

in France

♦ 8 facilities yet to be exited

♦ Expected EBITDA benefit of full program - $9.4M

─ Reduced from the original EBITDA estimate of

$11M due to a number of projects being

cancelled or postponed

─ FY16 EBITDA benefit of ~$7M

♦ FY16 anticipated capex $6.8M

─ Reduced expected capex by $5.6M due to

cancelled and postponed projects

FOP 2

♦ Announced June 2015 – expected completion

September 2017

♦ Facilities in Australia, Brazil, France, Denmark, UK

─ Exited 6 facilities YTD

─ Carton moves are underway in all countries

─ Project on time in all countries except Australia

due to site selection and construction delays in

Sydney

♦ Expected EBITDA benefit of $6.5M

─ Minimal benefit FY16

─ Majority of benefits realised FY18 and beyond

♦ Total capex of $30M (FY16 - $20M)

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Racking and building utilisation

♦ Racking utilisation -120 bps to 91.5%.

♦ Building utilisation -70 bps to 84.5%

♦ Utilisation decline due to

─ Lower levels of utilisation in acquired

businesses

─ Capacity added to facilitate carton

moves required by FOP 1 and 2

resulted in temporary duplication

♦ Utilisation trends improving,

excluding temporary impacts of FOP

and acquisitions

♦ Once fully completed, closure of FOP

sites will improve both racking and

building utilisation

♦ Utilisation target by end of FY17

─ Improve racking utilisation to 93% - 95%

─ Improve building utilisation to 88% - 90%

15

Racking Utilisation % Building Utilisation %

FY16 - H1 FY15 FY16 - H1 FY15

Americas 94.2% 94.2% 86.0% 87.4%

ANZ 90.7% 92.0% 87.3% 88.6%

Europe 84.3% 88.4% 78.7% 78.3%

Asia 96.6% 96.4% 85.6% 84.3%

Total Recall 91.5% 92.7% 84.5% 85.2%

Adjust for FOP / acquisitions

Proforma Total1 93.7% 92.4% 87.2% 84.8%

1 The Proforma total is an illustration of capacity utilisation, excluding the impact of

acquisitions and temporary duplication related to FOP. This does not include FOP

projects that have yet to start.

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M&A update ♦ H1 FY16 acquisition revenue and future M&A pipeline deliberately slowed in the short term

─ To assist the regulatory review process

─ Taking account of the Iron Mountain footprint

♦ 6 acquisitions completed to date in FY16

─ One each in Brazil, France, New Zealand, Switzerland, UK and USA

─ Will contribute $19M to FY16 revenue

─ Annualised revenue of $28M

♦ Total purchase price – $56M (net of acquired cash)

♦ Average post-synergy EBITDA multiple less than 7.0x

♦ Synergies and integration tracking to expectations

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Dividend

Dividend

♦ Interim dividend of AUD 9.5 cents per share determined; increase of +5.5%

♦ Payout ratio 70% of H1 FY16 underlying NPAT

♦ Expected to be paid on 20 April 2016; record date 1 April 2016

♦ 30% franking applied; 70% conduit foreign income

♦ No DRP

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Doug Pertz – President & CEO

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Strategy continues to deliver

19

• Delivered consistent growth in H1 FY16: ~2% organic; ~5% acquisition • Net organic carton growth of +2.2%

• Permouts reduced from 3.3% to 3.0%

• 6 acquisitions closed YTD – acquisition in Switzerland established a new market

Sustainable profitable growth – organic and acquisition growth

• Tracked well in H1 FY16 • Gross margin improvement

• FOP 1 on track and further benefits with launch of FOP 2

• Managed base capital expenditure spend to 4.7% of revenue

Operational excellence – cost reduction and leverage, continuous improvement, improve asset utilisation and business mix

• Recall Portal™ availability expanded beyond Australia/New Zealand and U.S. with deployment in Malaysia and U.K markets

• CommandIG™ commercial trials completed and deployed in Australia, Malaysia, New Zealand and U.S.

• Market and release planning for additional markets underway

Innovation for the future – new products and services

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Outlook for FY16

♦ Executing strategic plan until shareholders vote on Iron Mountain transaction

♦ Short term revenue headwinds from IRM transaction, in particular due to the extended

regulatory review process

─ Despite this, expect organic Constant currency revenue growth for FY16 to be consistent with strategic plan

and H1 FY16 at ~2%

─ Acquisitions already completed will add ~5% Constant currency revenue growth in FY16

─ Acquisition growth deliberately slowed in the near term to assist the regulatory review process

♦ Expect the business1 to deliver for FY16, on a Constant currency basis

─ Revenue growth approaching high single digits - reflective of slowed M&A activity

─ EBITDA growth in line with revenue growth

♦ Strengthening US dollar continues to impact statutory results

─ At December 2015 exchange rates, impact expected to be lower in H2 than H1

─ Impact of FX movements on reported EBITDA reduces available debt capacity

1. The business excludes SDS Germany sold in December 2014 and adjusts for the impact of the revenue lost as a consequence of the

Citistorage fire of approximately $4m.

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Q & A

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Appendix

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Revenue - continuing business

H1 FY16 H1 FY16 H1 FY15 Change - Constant FX

US$M Actual FX Constant FX Actual FX $ %

By operating segment

Americas 198.2 217.2 195.2 22.0 11.2%

Australia & New Zealand 79.2 97.6 94.6 3.0 3.2%

Europe (Excl. Germany SDS) 84.5 96.5 94.6 2.0 2.1%

Asia 35.7 39.6 38.1 1.5 4.0%

Total Recall (Excl. Germany SDS) 397.6 450.9 422.4 28.4 6.7%

By service line

Document Management Services (DMS) 307.8 353.5 330.4 23.1 7.0%

Secure Destruction Services (SDS) 47.4 51.2 48.7 2.5 5.1%

Data Protection Services (DPS) 42.4 46.2 43.3 2.9 6.6%


By revenue category

Storage / retention 219.7 250.1 231.7 18.4 7.9%

Service and activity 168.0 190.0 180.7 9.3 5.1%

Paper and other 9.9 10.8 10.0 0.7 7.4%


By existing business and acquisitions

Existing business 376.8 430.0 392.5 1.8%

Acquisitions 20.9 20.9 29.9 4.9%

Total Recall (continuing business) 397.6 450.9 422.4 28.4 6.7%

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Segment results – Americas and Europe

Americas

Europe (Excluding SDS Germany)



Sales Revenue 84.5 96.5 94.6 2.0 2.1%

EBIT 9.1 10.5 10.8 (0.3) -2.8%

EBIT Margin % 10.8% 10.9% 11.4%

Depreciation and

Amortization 6.2 7.0 6.4 0.6 9.2%

EBITDA 15.3 17.5 17.2 0.3 1.6%

EBITDA Margin % 18.1% 18.1% 18.2%

Capital Expenditure 6.5 7.4 2.7



Sales Revenue 198.2 217.2 195.2 22.0 11.2%

EBIT 33.9 37.5 34.3 3.2 9.4%

EBIT Margin % 17.1% 17.3% 17.6%

Depreciation and

Amortization 17.0 18.2 15.0 3.2 21.6%

EBITDA 50.9 55.7 49.3 6.4 13.1%

EBITDA Margin % 25.7% 25.6% 25.2%


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Segment results – ANZ and Asia

ANZ

Asia



Sales Revenue 35.7 39.6 38.1 1.5 4.0%

EBIT 8.1 9.2 9.0 0.1 1.6%

EBIT Margin % 22.8% 23.2% 23.8%

Depreciation and

Amortization 2.9 3.2 3.3 (0.0) -0.8%

EBITDA 11.1 12.4 12.3 0.1 0.8%

EBITDA Margin % 31.0% 31.4% 32.4%




Sales Revenue 79.2 97.6 94.6 3.0 3.2%

EBIT 15.6 19.2 21.5 (2.2) -10.4%

EBIT Margin % 19.7% 19.7% 22.7%

Depreciation and

Amortization 5.3 6.5 5.9 0.5 9.2%

EBITDA 20.9 25.7 27.4 (1.7) -6.2%

EBITDA Margin % 26.4% 26.4% 28.9%


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Significant items

H1 FY16 H1 FY16 H1 FY15

US$M Actual FX Constant FX Actual FX

Demerger related expenses 1.3 1.4 2.4

Restructuring - - 0.8

Acquisition related expenses 2.9 3.3 2.7

Iron Mountain transaction costs 16.2 16.9 -

Significant Items - Before Tax 20.4 21.6 5.9

Tax effect of other significant items (7.1) (7.4) (2.0)

Significant Items - After Tax 13.3 14.2 3.9

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Impact of strengthening US dollar

27

0.70

0.90

1.10

1.30

1.50

1.70

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May Jun

2015 2016 Forecast

EUR:USD % Change

Fiscal 15 -18.2% Fiscal 16 YTD -2.5%

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2015 2016 Forecast

AUD:USD % Change


0.20

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0.35

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0.50

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2015 2016 Forecast

BRL:USD % Change


H1 FY16 Revenue Impact by major currency

Act vs.

Constant

US$M

Act vs.

Constant %

H1 FY16

Average FX

rate

H1 FY15

Average FX

rate

USD -

AUD (16.4) (18.8%) 0.7169 0.8834

EUR (6.8) (13.6%) 1.0977 1.2723

BRL (13.2) (35.7%) 0.2656 0.4137

Other (16.9) (13.7%)

Total (53.3) (11.8%)

• Recall operates in 20 currencies, all of which

depreciated against USD

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Definitions

Term Definition

Actual currency /

actual FX

In the statutory financial statements, results are translated into US dollars at the actual monthly

exchange rates applicable to each period being presented in the financial statements.

Business line growth

Expenditure that support new revenue growth. It is primarily related to capacity expansion such as

investments in new racking, tape storage systems, shred plants, bins, cases, scanners, and

processing capacity.

Carton or E Recall’s metric for the physical holdings of its customers: standard carton equivalent (E) equals

1.2 cubic feet.

Constant currency / constant

FX

Constant currency results are presented by translating both current and comparable period

results into US dollars at the actual monthly exchange rates applicable in the comparable period,

so as to show relative performance between the two periods before the translation impact of

currency fluctuations.

DMS The document management solutions service offering of Recall.

DPS The data protection services offering of Recall.

DRP Dividend reinvestment plan.

EBIT Underlying earnings before interest and taxation.

EBITDA

Earnings before interest, taxation, depreciation and amortisation. EBITDA is defined as Operating

profit from continuing operations after adding back depreciation and amortisation and Significant

items outside the ordinary course of business.

EPS Earnings per share.

Facility Optimisation

Program 1 Asset utilisation and cost improvement program as announced to the ASX on 30 June 2014.

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Definitions

Term Definition

Facility Optimisation

Program 2 Asset utilisation and cost improvement program as announced to the ASX on 22 June 2015.

FOP 1 & FOP 2 Facility Optimisation Program 1 and Facility Optimisation Program 2

IFRS International Financial Reporting Standards. Recall reports its financial results under Australian

Accounting Standards, which are compliant with IFRS.

Maintenance / replacement

Expenditure primarily related to major repairs and/or the replacement of assets such as facilities,

racking, information/destruction center equipment, vehicles and IT equipment at the end of its

useful life.

Net organic carton growth New cartons added from new and existing customers (adds); less cartons removed due to

destruction or withdrawal (permouts).

New product development Expenditure directly related to the develop of new product offerings or services.

NPAT Net profit after taxation.

Operating profit Operating profit is profit before finance costs and taxation, as shown in the statutory financial

statements.

Operational efficiencies

Expenditure primarily related to investments focused on driving increased profitability through

operational efficiencies and costs savings, such as facility consolidations, software systems, or

equipment to support operational or functional process improvements.

PAT Profit after taxation.

Real estate and buildings Expenditure related to the acquisition of real estate, either through purchase or construction of a

new facility, the buyout of an existing facility or the acquisition of land.

Recall or the Group Collective name for the group comprising Recall Holdings Limited and its controlled entities.

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Definitions

Term Definition

RDS Recall’s digital services offering. This service offering is reported within the DMS service line.

SDS The secure destruction services offering of Recall

Service and activity Revenue resulting from providing services in the DMS, SDS and DPS lines of business (does not

include storage charges).

Significant items

Significant items are items of income or expense which are, either individually or in aggregate,

material to Recall or to the relevant business segment and:

♦ outside the ordinary course of business (e.g. Iron mountain Transaction costs, the cost of

significant reorganisations or restructuring); or

♦ part of the ordinary activities of the business but unusual due to their size and nature.

SME Small and medium-sized enterprises

Storage / retention Revenue within the DMS and DPS service lines resulting from the storage of customer

information.

Total net carton growth New cartons added from new and existing customers (adds) and acquisitions; less cartons

removed due to destruction or withdrawal (permouts).

TTM Trailing twelve months

Underlying profit Underlying profit is profit from continuing operations before finance costs, taxation and significant

items.

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Disclaimer

No offer of securities

The publication or distribution of this presentation in some countries may be restricted by law and

therefore persons in such countries where this presentation is published or distributed, should

make enquiries and observe such restrictions. Nothing in this presentation should be construed as

either an offer to sell or a solicitation of an offer to buy or sell Recall securities in any jurisdiction.

Forward-looking statements

This presentation includes forward-looking statements regarding future events, conditions,

circumstances and the future financial performance of Recall. Forward-looking statements can

generally be identified by the use of the words such as “plans”, “expects”, “expected”, “scheduled”,

“estimates” or variations of such words and phrases or state that certain actions, events,

circumstances or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

These forward-looking statements are not guarantees or predictions of future performance, and

involve known and unknown risks, uncertainties and other factors, many of which are beyond our

control, and which may cause actual results to differ materially from those expressed in the

statements contained in this presentation.

All estimates and projections in this presentation are illustrative only. Our actual results may be

materially affected by changes in economic or other circumstances which cannot be foreseen.

Nothing in this presentation is, or should be relied on as, a promise or representation either as to

future results or events or as to the reasonableness of any assumption or view expressly or

impliedly contained herein.

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Investor Relations contacts

Investor Relations

Bill Frith

Senior Director, Investor Relations

[email protected]

+61 2 9582 0244

Americas, Europe & Asia media inquiries

MSL Group

David Sprague or

Amanda Fountain [email protected]

+1 781 684 0770

Australian media inquiries

GRACosway

Fleur Jouault

[email protected]

+61 2 8353 0419

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mailto:[email protected]



recall holdings limited 2016 half-year results · underlying ebitda 91.4 107.0 100.4 7% -9%...

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