Spotless Group Holdings LimitedFY16 Results Presentation

Presenters:

Martin Sheppard – Chief Executive Officer and Managing DirectorNigel Chadwick – Chief Financial Officer

24 August 2016

IMPORTANT NOTICES

Important notice and disclaimer• This document is a presentation of general background information about the activities of Spotless Group Holdings Limited (Spotless) current at the date of the

presentation, (24 August 2016). The information contained in this presentation is of general background and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. Spotless is not licensed to provide financial product advice in relation to Spotless securities or any other financial products.

• Accordingly, Spotless, its related bodies corporate and any of their respective officers, directors and employees (Spotless Parties), do not warrant the accuracy or reliability of this information, and disclaim any responsibility and liability flowing from the use of this information by any party. To the maximum extent permitted by law, the Spotless Parties do not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this document.

Forward looking statements• This document contains certain forward looking statements and comments about future events, including Spotless’ expectations about the performance of its

businesses.

• Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings or financial position or performance are also forward looking statements.

• Forward looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward looking statements will not be achieved. Forward looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance. Forward looking statements involve known and unknown risks, uncertainty and other factors which can cause Spotless’ actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements and many of these factors are outside the control of Spotless. As such, undue reliance should not be placed on any forward looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward looking statements, forecast financial information or other forecast. Nothing contained in this presentation nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Spotless.

Pro forma financial information• Spotless uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards. These measures are referred to

as non-IFRS financial information.

• Spotless considers that this non-IFRS financial information is important to assist in evaluating Spotless’ performance. The information is presented to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. Non-IFRS information has not been subject to audit or review in accordance with Australian Auditing Standards.

• All dollar values are in Australian dollars (A$) unless otherwise stated.

2

HIGHLIGHTS

Strategy Reset

• Short term issues outlined in the December trading update and reflected in this result have been resolved

• Strategy reset is complete. Strategy focused on extending the breadth of Spotless’ offer, unlocking value and repositioning our brand and employee value proposition to enable and facilitate our growth agenda

• After careful consideration of the potential growth in the Laundries business, and resolution of the acquisition integration issues that impacted performance in FY16, Spotless has determined that the best value for Spotless’ shareholders will be achieved by retaining this business

Result Highlights

• Results in line with guidance

• Significant growth in underlying revenue and EBITDA of 17% and 6% respectively

• Reported revenue growth of 10.6% with EBITDA down 1.5% on last year

• Reported result includes items communicated to the market in December 2015 – the business has absorbed integration and one-off costs during FY16

• Operating cash flow used to fund acquisitions and working capital requirements of acquired businesses

• Facility Services business (92% of revenue) maintained underlying EBITDA margin of 10.2%

• Final dividend of 5.0 cents partly franked (1.5 cents) representing a payout ratio of 71%

Outlook

• We are confident in the strength of the underlying business and the pipeline of opportunities will drive organic growth

• The pace of the growth will however depend on the success and pace of delivery of the initiatives arising from our strategy reset, in particular our recent investment in business development resources

• Renewals strong and win rates improving

• Management capability building

• Contestable market growing

3

CONTENTS

PERFORMANCE UPDATE - FY16 RESULTS

STRATEGY RESET

DETAILED FINANCIALS

OUTLOOK

APPENDICES

1

2

3

4

4

5

BUSINESS ACHIEVEMENTS

Delivery of FY16 result in line with guidance reflects the strong operational and financial focus from the new team

Management team capabilities expanded with new appointments. Investment in business development resources important in leveraging the strength of our core

Strategy reset provides a clear vision, purpose and strategy with benefits to flow through in the coming year and beyond

Integration of acquisitions now complete, with full year contribution expected in FY17

Underlying EBITDA margin for Facility Services maintained in line with previous year

Renewal rates strong, reflecting key account management and strength of integrated service offering

1.1

6

Acquisition contribution

2,693 3,139

FY15 FY16

FY16 FINANCIAL SUMMARY1.2

7

Reported result

Underlying result1

(2)

Revenue

17% increase

EBITDA

6% increase

NPAT

(4%) decrease

Note (1): Reported result impacted by a number of one-off items outlined on slide 3.2 Note (2): Normalised for pass-through revenue of $37m in FY16 (FY15 $180m)

Underlying result in line with guidanceStrong growth in underlying sales and EBITDA

Revenue EBITDA NPAT

2,873 3,176 10.6% 316 312 (1.5%) 143 122 (14.4%)

307 326

FY15 FY16

136 131

FY15 FY16

588 Acquisition contribution

34185 8

FY15 FY16 FY15 FY16 FY15 FY16

Underlying Revenue1

Health, Education & Gov.2 Commercial & Leisure Base & Township 2 Laundries & Linen

Strong contribution from commencement of new PPPs

Healthcare remained steady

Revenue increase driven by acquisitions – full year impact of UASG and part year benefit of AE Smith and TGS

Partially offset by lower sales within Sports & Leisure due to lower stadium and event activity

Defence sector delivered strong growth

Partially offset by reduced revenue in the Resources sector

Growth driven by contribution of acquisitions (Aladdin, ILS & Prime Laundry)

Integration issues affected performance of existing business

7% increase 35% increase 10% increase 6% increase

Commentary

Health, Education & Gov. Commercial & Leisure Base & Township Laundries & Linen

1.3

Sector performance was strong and includes benefit from acquisitions

8

PERFORMANCE BY SECTOR

892

1,201

FY15 FY16

547 599

FY15 FY16

278 295

FY15 FY16

Note (1): Includes intersegment revenue of $29m in FY16 (FY15 $28m)Note (2): Excludes pass-through revenue of $37m in FY16 (FY15 $180m)

1,004 1,072

FY15 FY16

Underlying EBITDA and margin1

Health, Education & Gov. Commercial & Leisure Base & Township Laundries & Linen

Strong earnings growth from PPPs

Steady earnings contribution from Education and Government

Growth driven by acquisitions

Partially offset by lower activity within Sports & Leisure and Business & Industry sectors

Margin decline reflects business development costs and lower margin acquisition (AE Smith)

Strong earnings contribution from Defence sector

Partially offset by reduced revenue and margins within Resources

Result adversely affected by acquisition integration related issues which have been resolved

8% increase 3% increase 30% increase (17%) decrease

Commentary

Health, Education & Gov. Commercial & Leisure Base & Township Laundries & Linen

1.4

EBITDA growth across Facility ServicesLaundries impacted by acquisition integration issues

9

PERFORMANCE BY SECTOR

107 116

FY15 FY16

79 81

FY15 FY16

74

96

FY15 FY16

86 71

FY15 FY16

10.6% 10.8% 8.8% 6.7% 13.6% 16.0% 31.0% 24.2%

Note (1): Segment EBITDA and margins exclude unallocated corporate overheads of $39m in FY16 (FY15 $39m)

EBITDA Margin

MARGINS

Underlying Margins1

Facility Services (~92% of revenue)

Laundries (~8% of revenue)

EBITDA EBITA

1.5

EBITDA margin in Facility Services business remains strongMargins in Laundries impacted by acquisition integration issues

Commentary

EBITDA margin declined reflecting acquisition of businesses with lower than Group margin

New contract wins on comparable margins to historical experience

Decrease in EBITA margin reflects impact of acquisitions and higher capex in previous periods impacting depreciation

EBITDA margin adversely impacted by acquisition integration issues

Acquisitions now fully integrated

EBITA margin decline driven by lower EBITDA and higher depreciation as a result of acquisitions and higher rental stock capex to support these acquisitions

10

31.0%

24.2%

16.3%

7.8%

FY15 FY16 FY15 FY16

EBITDA EBITA

10.6% 10.2% 9.8% 9.0%

FY15 FY16 FY15 FY16

Note (1): Segment margins exclude unallocated corporate overheads of $39m in FY16 (FY15 $39m)

FY14A 34% 27%

FY15A 45% 36%1

FY16A 50% 17%2

WIN AND RENEWAL RATES

Win rates

Renewal rates

By number By revenue

FY14A 63% 75%

FY15A 78% 91%

FY16A 83% 83%3

Note(1) Excluding onshore and offshore immigration losses(2) Excludes Rio Tinto new business loss(3) Excludes Rio Tinto renewal loss

1.6

Our win rate across the portfolio remains strong but has been impacted by several large value contract losses

Win rates and renewal rates

Commentary

11

Excluding Rio Tinto & Immigration

34% 27%

44% 20%

50% 12%

63% 75%

78% 91%

83% 73%

By number By revenue

All opportunities

Investment in business development resources across Government, Aged Care and Tertiary Education sectors important to improving win rates. Focus is on fewer but larger opportunities

High return, low capital intensive sectors and services are the priority

Enhancing key account management to focus on renewals by implementing a customer centricity program focused on top 200 existing accounts

BALANCE SHEET POSITION1.7

12

Net debt position

($m) June 2016 Dec 2015 June 2015

Cash (54) (40) (105)

Debt(1)(2) 844 842 669

Net debt 790 802 564

Net debt position is as expected and reflects acquisitions during the year,3 working capital requirements of acquired businesses and incremental laundry stock purchases

Debt covenants

ND / EBITDA Interest cover

Debt facilities maturity profile

Debt headroom of $220m

Weighted average committed debt facility maturity of approximately 2.6 years

Credit metrics comfortably within covenants

195

427

214

FY17 FY18 FY19 FY20 FY21

Drawn amount Committed facilities

Note (1): Debt is net of unamortised borrowing costs of $4m at Jun-16 and $4m at Jun-15 and includes $8m derivatives (FY15: $8m)Note (2): Depreciation of AUD against the NZD between Jun-15 and Jun-16 increased debt by $11mNote (3): Acquisitions include UASG (July 2015) and Prime Laundry (August 2015)

10.3x

8.8x

FY15 FY16

1.8x

2.4x

FY15 FY16

3.0x

3.5x

315

100

188

53

14

15

270 276

Operating cashflow before

interest and tax

Working capital& onerous

contract impacts

Exit ofsupply

contract

Paymentcycles

FY16 underlyingoperatingcash flow

FY15 underlyingoperatingcash flow

OPERATING CASH FLOW

Operating cash flow movements

Operating cash flow utilised to fund acquisitions

Commentary

Investment in working capital and onerous contract impacts relating to recently acquired businesses

One-off impact from large national food and beverage supply contract

Timing of payment cycles

13

A

A B

1.8

C

B

CNon-recurring

SAFETY

Safety initiatives:

Work stream risk profiling to assist in identifying actions and tailoring programs to manage safety risks

Pulse Assessment program to verify level of understanding of safety@spotless systems and processes

Safety Survey to obtain feedback and initiatives on what we can introduce to assist in improving safety culture

Safety@Spotless management system certification against AS4801

Initiatives translating to improved performance for FY16:

41% reduction in lost time injury frequency rate

8% reduction in total recordable injury frequency rate (all injuries)

1.9

Safety of our employees is paramount

14

2 Strategy Reset

Deliver business growth greater than GDP growth by:

growing revenue with existing customers (contract inflators and cross-sell)

winning new customers

winning new business in growing outsourcing markets

entry into new markets / development of new offerings

Drive customer value through long-dated, expandable, multi-service contracts which leverage our scale, geographical footprint and breadth of capabilities

customer benefits from scale include geographic reach, superior operational controls, counterparty financial strength, and superior back office / support service capabilities

customer benefits from breadth include delivery of complex total solutions, adoption of operational risk and lower management overhead

Spotless Group Objectives

2.1 CORPORATE OBJECTIVES

16

The centrepiece of the Spotless strategy involves focus areas that support organic growth

STRATEGY RESET COMPLETE2.2

17

Strategy reset provides a clear vision and purpose

STRATEGY RESET COMPLETE (CONT.)2.3

18

Health, Education and Government

Lower return, low growth sectors

High return sectors

High growth, high return acquisition opportunities

Represents adjusted assets of c.$100m

Growth equal to or less than GDP growth

Growth up to 5 ppt higher than GDP growth

Growth more than 5 ppt higher than GDP growth

Partnerships

Market growth / potential

2.4 UNLOCK VALUE – REVIEW OF CORE

19

Commercial and Leisure Base and Township

FY16 ROIC – EBITA / Adjusted assets (%)1

Spotless has reviewed the performance of each sector and the role it plays in the company portfolio

Strategy reset prioritises these services and markets

Laundries

Note (1): Adjusted assets is calculated as total assets less cash, inter-company loans, goodwill, intangibles and deferred tax

Facility Services

(20)

0

20

40

60

80

Single Service Line Businesses

2-3 Service Line Businesses

Multi-service Partnerships

Contracts are typically single-service, of limited scale and short-dated

Competition is fragmented or operations are capital intensive

Contracts are typically large scale, multi-service and long-term

Strong relationships enable partnerships on innovation

Spotless is willing to take high ‘perceived risks’

Spotless business value hierarchy

Contracts are very long term (e.g. up to 30 years)

Spotless takes full responsibility for an operation / asset and has an obligation to deliver an outcome over the life of the contract

Spotless will drive value by strategically partnering with customers and focusing on multi-service contracts

2.5 UNLOCK VALUE – PARTNER WITH CUSTOMERS

20

AE Smith Business & Industry

PPP

Resources

GovernmentHealth

Single service line

4+ service linesUASG

Leisure, Sport & Entertainment

Education

Defence

Laundries

Name

PPP’s – 16 AND BUILDING2.6

21

Contract Term0% 100%

Total Life (yrs)

Annual Revenue (A$m)

Life of Contract Revenue (A$m)

NSW Schools 1 28 $

Headquarters Joint OperationsCommand 30 $$

Southbank Tafe 34 $$

NSW Schools 2 28 $

Orange Hospital 25 $$$

South Australia Schools 30 $

Royal Children’s Hospital 25 $$

Queen Elizabeth II Carpark 25 $

Wiri Prison 25 $

Sydney Convention Centre 25 $$$

Sunshine Coast University Hospital 25 $$$

New Royal Adelaide Hospital 30 $$$

Bendigo Hospital 25 $$$

Victoria Schools 26 $

Western Australia Schools 30 $$

Australia National University 30 $

Op

erat

ion

alM

ob

ilisi

ng

Key for annual revenue: = A$0 – 10m = A$10 – 30m = A$30+mKey for life of contract revenue: $ = A$0 – 250m $$ = A$250 – 750m $$$ = A$750+m

A “smarter” Spotless leveraging technology to drive growth in new services and markets, and to enhance the customer experience

REPOSITION - BRAND AND INNOVATION2.7

22

Bluetrack – Digital Cleaning Tracker

Automated GuidedVehicles

Nudge Health and Lifestyle Program

Food Ordering App Smart Pipe

Customer Feedback Kiosks

REPOSITION - NEW MANAGEMENT TEAM2.8

23

CEO & Managing Director Martin Sheppard

Investor relations Mergers &

Acquisitions (1)

Geoff Bryant

Risk & Compliance &

LegalPaul Morris

Chief Financial Officer

Nigel Chadwick

Chief Operating Officer

Dana Nelson

Brand, Innovation & Technology

Julian Fogarty

Markets & GrowthAgi Luczak

People, Performance &

CultureCatherine Walsh

Sectors

Government, Education & Transport

Infrastructure, Comms & Utilities (AES and UASG)

Township (Resources &

Defence)PPP’s and Health

Business, Hospitality,

Leisure & SecurityNew Zealand Laundries

Subject Matter Experts / Sales Executive / Business Development

Food & Catering CleaningMaintenance / Construction

PPP / Government /

EducationResources

Facilities Management

Security

New to organisation and role Scope increased

Note (1): Effective 1 October 2016

There has been significant focus on building the capability within the Spotless leadership team

New to role

3 Market position, strategy and outlook3 Detailed Financials

REPORTED P&L RESULTS

Commentary

Revenue growth underpinned by stable performance of existing business and acquisition contribution

Acquired revenue and EBITDA of $588m (FY15 $185m) and $34m (FY15 $8m) respectively

Excluding acquisitions, revenue and EBITDA includes benefit from contract wins and renewals offset by impacts from:

– acquisition integration issues, particularly within Laundries

– loss of pass through revenue contract within Health, Education & Government sector (low margin)

– reduced stadium and event activity in current year

Underlying profit affected by materially increased depreciation (largely due to increases from acquired businesses), mobilisation costs and bid costs

Increase in finance costs reflects higher net debt

Tax rate of 27% reflects effective tax rate of 30% adjusted for deferred tax accounting movements

$m FY16 FY15 Var

Reported Sales Revenue 3,176 2,873 +10.6%

Underlying Revenue 3,139 2,693 +16.6%

Reported EBITDA 312 316 (1.5%)

Underlying EBITDA 326 307 +6.0%

Depreciation (88) (65) +35.4%

Facility Services (34) (19) +78.9%

Laundries (48) (41) +17.1%

Corporate (6) (5) +20.0%

Amortisation (16) (13) +23.0%

Customer contracts (10) (8) +25.0%

Other (SAP amortisation) (6) (5) +20.0%

Net finance costs (40) (34) +17.4%

Income tax expense (46) (61) (25.3%)

Reported NPAT 122 143 (14.4%)

Underlying NPAT 131 136 (4.0%)

3.1

25

REPORTED TO UNDERLYING RECONCILIATION

Commentary

FY16 EBITDA negatively impacted by a number of significant items including:

– Large tender bid costs on two unsuccessful bids ($9m)

– Treatment change on bid costs ($5m)

The items outlined above are considered one-off and have been resolved

FY15 EBITDA was impacted by the positive impact of the $9m re-measurement of property make good provisions ($7.6m) and Long Service Leave ($1.5m) provisions

Acquisition integration issues relating to Laundries and AE Smith outlined to the market in December have been included in both reported and underlying EBITDA

$m FY16 FY15

Reported Sales Revenue 3,176 2,873

Pass-through revenue (37) (180)

Underlying Sales Revenue 3,139 2,693

Reported EBITDA 312 316

One-off items1

Tender write-off 9 -

Small bid costs 5 -

Re-measurement of provisions2 - (9)

Underlying EBITDA 326 307

Reported NPAT 122 143

One-off items1 14 (9)

Income tax (5) 3

Underlying NPAT 131 136

3.2

26

Note (1): Items greater than $5mNote (2): Disclosed on page 58 of the 2015 annual report

CASH FLOW

$m FY16 FY15 Var

Underlying operating cash flow before interest and tax 270 276 (2.2%)

Working capital and onerous contact impacts (53)

Exit of supply contract (14)

Timing of payment cycles (15)

Net interest and tax (46) (29) 58.6%

Operating cash flow 142 247 (42.6%)

Investing cash flows

Acquisition of businesses (103) (99) 3.5%

Facility Services (86) (78) 9.7%

Laundries (17) (21) (19.2%)

Net investment in PPE, IT systemsand capitalised contract costs (142) (151) (5.6%)

Facility Services – PP&E1 (64) (83) (23.0%)

Laundries – PP&E1 (14) (10) 37.3%

Laundries – Rental Stock (46) (41) 13.3%

Corporate – PP&E and IT systems (21) (24) (14.5%)

Other 3 7 (65.8%)

Total investing cash flows (245) (250) (2.0%)

Free cash flow (103) (3) >100%

Underlying operating cash flow lower than previous year after taking into account:

– One-off items

– Working capital funding and onerous contract impacts relating to recently acquired businesses

– Exit of a national food & beverage supply contract which resulted in a one-off $14m net outflow

– Timing of year end payment cycles

Underlying EBITDA conversion was 83% (FY15 90%):

Moving forward there will be a greater focus on free cash flow

Note (1): Includes capitalised contract costs

Commentary

3.3

27

FY16 FY15

Underlying EBITDA 326 307

Underlying operating cash flow before interest and tax 270 276

Underlying EBITDA conversion 83% 90%

BALANCE SHEET3.4

28

Balances impacted by acquisition accounting

Goodwill largely relates to PEP acquisition ($827m), with remainder relating to recent acquisitions

Net working capital movements outlined on the operating cash flow slide (slide 1.8)

$m FY16 FY15 Var

Current assets 533 536 (0.5%)

Non-current assets 1,708 1,519 +12.4%

Goodwill 1,032 911 +13.2%

PP&E and other 676 608 +11.3%

Current liabilities 421 450 (6.4%)

Non-current liabilities 992 794 +25.0%

Net current assets 112 86 +30.4%

Net assets 828 810 +2.1%

Net debt 790 564 +40.2%

Gearing 48.8% 41.0%

Commentary

NET DEBT MOVEMENT3.5

29

Net debt bridge

Net debt as at 30 June 2016 of $790m

– 2.4x Net debt / EBITDA vs. 1.8x at 30 June 2015

Change since FY15 driven by:

– Reinvestment in the business including capital expenditure $142m and acquisition cost of $103m

– Dividends paid (final and interim) of $99m

– Other movements include foreign exchange impact on New Zealand dollar debt and impact of finance leases

Commentary

667

766

564

142 142

103

99 24

790

June 2015net debt

Operatingcash flow

Capex Businessacquisitions

Dividendspaid

Othermovements

June 2016net debt

Reinvestment in the business

Note (1): Operating cash flow includes certain non-recurring items as per slide 1.8

67(1)

4 Outlook

OUTLOOK4.1

We are confident in the strength of the underlying business and that the pipeline of opportunities support re-stimulation of organic growth. The rate of growth will be driven by the success and timing of the strategy reset initiatives, particularly the returns from the recent investment in business development resources.

For FY17 and beyond, growth and attractive returns are expected through:• Improved performance of the Laundries business;• Driving growth from our recently acquired businesses;• Commencement of recently won PPPs, with seven PPPs currently mobilising;• Price escalations in existing contracts;• Greater focus on free cash flow conversion;• New wins in a steadily growing contestable market; and• Conversion of the current pipeline of more than $1.3 billion of opportunities.

There are no significant contract renewals that will materially impact FY17.

31

5 Appendices

SIGNIFICANT CONTRACT WINS AND RENEWALS

Customer Services Quarter won / renewed

Ren

ewal

s

Clipsal 500 Integrated 1Q16

Central Alliance Health NZ Integrated 1Q16

SA Health Integrated 3Q16

Brisbane Domestic Terminal (retail outlets) Cleaning / Food 2Q16

Ergon Energy Asset Inspection 2Q15

NSW Land and Housing Corporation Maintenance 1Q16

QGC Township Management 3Q16

Anglo American Township Management 4Q16

Win

s

Ausco Maintenance 4Q16

Rio Tinto Hail Creek Township management 1Q16

Vic Schools PPP 2Q16

WA Schools PPP 2Q16

Win Australian National University PPP 1QFY17

Greater than 25yr

$130m contract wins and over $480m renewals in FY161

33

5.1

Greater than $30m pa

Note (1): Annual revenue

DIVERSIFIED OFFERING

SERVICE Facility management

Venue management

Accommodation management

Fleet management

Car park management

Concierge & mailroom

Event management

Patient management

Security services

Venue management

Food service solutions

Cleaning & hygiene solutions

Laundry, linen & uniforms

Security services

Asset and building maintenance

Waste management

Grounds & garden care services

Pest control services

Concierge

HVAC services

Refrigeration

BIM (Building Information Modelling)

Prefabrication / Modularisation

Engineering design

Commissioning (NEBB Certified)

Electrical, plumbing, drainage

Asset maintenance

Mechanical & electrical services

Retail fitouts

Building trades services

Painting services

Grounds & gardens

Pest control

Building management systems

Fire & emergency services

Energy & water management

Handyman services

Asset installation & maintenance

Meter installation & replacement

Meter reading

Energy conservation

Pole reinstatement

Asset inspection & monitoring

Street light maintenance & globe replacement

Electrical construction & maintenance

Vegetation management

Stadia, venue & event catering

Dining rooms & cafés

Functions

Corporate hospitality

Retail food & beverage

Venue management

Cafeterias

Canteens, cafés

Retail food & beverage

Resident dining

Aged care

Schools & colleges

Mining camps & defence sites

Hospital patient meals

Functions & boardrooms

Meals on wheels

Venue, event & precinct cleaning

Waste management & recycling

Commercial, retail & industrial cleaning

Waste management & recycling

Hygiene & washroom services

Window cleaning

Concierge & mailroom

Crowd control

Event management

Close circuit television (CCTV)

Alarm systems

Access control

24 hour alarm monitoring

People tracking

Risk management

Mail screening

Duress systems

First aid response

Patrols

Concierge services

Linen supply, laundering & management

Accommodation

Hospitality

Healthcare

Sterilising

Workwear laundering, rental & management

Workwear supply & design

Floor care & washroom

services

SECTORS Business & Industry

Defence

Education

Government

Health

Laundries

Leisure, Sports & Entertainment

PPP

Resources

Utilities

Leisure, Sports & Entertainment

Business & Industry

Defence

Education

Government

Health

Laundries

Leisure, Sports & Entertainment

PPP

Resources

Business & Industry

Defence

Education

Health

Government

Leisure, Sports & Entertainment

Resources

Business & Industry

Defence

Education

Government

Health

Laundries

Leisure, Sports & Entertainment

PPP

Resources

Utilities

Business & Industry

Leisure, Sports & Entertainment

Business & Industry

Defence

Education

Health

Government

Resources

Leisure, Sports & Entertainment

Business & Industry

Defence

Education

Health

Government

Resources

Business & Industry

Education

Government

Health

Leisure, Sports & Entertainment

Resources

Business & Industry

Defence

Education

Government

Health

Laundries

Leisure, Sports & Entertainment

Resources

SERVICE LINE INTEGRATED SERVICES

ENGINERING SERVICES ANDASSET MAINTENANCE

UTILITIESSERVICES

FOOD SOLUTIONS CLEANING SECURITY LAUNDRY

34

5.2

Spotless is the largest, most diversified essential services provider in Australia and New Zealand. The company provides services that are essential to our clients and their customers

LEVERAGE STRONG CORE5.3

35

1. Largest facility services provider in ANZ1,2,3 2. High quality and diverse customer base4

4. Embedded price growth mechanism63. Favourable end market exposure

94.6

5.4

0%

20%

40%

60%

80%

100% 5.4% with no price growth mechanism

94.6% with embedded price growth mechanism

Largest 150 contracts

Largest single contract

Gov’t backed contracts

c.60% revenue= Revenue

contracted5

c.87% revenue

=

c.5% revenue=

Weighted average

contract tenurec.4.8 years=

c.50% revenue=

% of revenue due for renewal in

FY17c.7% =

Facility Mgt.

Catering & Food

Cleaning

Laundry & Linen

Security

35%

37%

19%

9%

Health, Educ.& Gov't

Commercial &Leisure

Base &Township

Laundry &Linen

Only 8% resource exposure

3.2

1.9

1.4 1.0 0.9 0.8 0.8

0.5

Spotless Compass Broad-spectrum

Serco ISS Programmed Skilled Sodexo

Late

st A

ustr

alia

and

NZ

re

venu

e (A

$bn)

FY16 FY15 FY15 2015 2015 FY15 FY15 2015

Note (1): The market is defined by reference to the services Spotless currently provides to the four end-market customer sectors that Spotless currently serves, and includes both Facility Services and Laundries services. It does not include potential revenue from adjacent customer sectors that Spotless does not currently serve but that may be regarded as part of a broader facility services industryNote (2): Estimate of revenue derived from Australian and New Zealand public filings. New Zealand dollar revenues have been converted to Australian dollars using the RBA daily rate of 1.07 as at 12 August 2016

Note (3): On 27 June, Ferrovial Group completed its takeover of BroadspectrumNote (4): Based on top 150 identified contracts by FY17 Forecast revenueNote (5): Revenue that is contracted through FY17 as percentage of FY16 revenue.Note (6): Based on identified contracts greater than $1 million annual revenue