IMPEL GROUP
Performance in 2011
Management’s Presentation
IMPEL Group – General Information
VISION
-cash handling
CCTV and GPS monitoring manned guarding facility management cleaning services
technical maintenance of facilities
payroll and personnel outsourcing accounting services
temporary work
delivery logistics
(safety-at-work, hygiene, office supplies)
electronic security systems
laundry services
rental and service of work clothes
Optimisation of areas and restructuring
handling services facility furnishings: flooring and suspended ceilings
telecommunication and IT services
insurance brokerage
3
IMPEL Group – business highlights
comprehensive offer
– the largest number of services
for business on the Polish market
countrywide reach
– 30 branches ensuring service
availability in every place in Poland
experience
– 22 years of competence development in
optimising work organisation, technology selection and
staff management
Contact Center– multichannel platform for communication with Clients,
integrated with the SAP CRM system:
- centralised service for the IMPEL Group’s Clients
- centre of knowledge of operational events related to the rendered services - monitoring of event handling
- receiving complaints and alarm calls
Our clothes rentalservice is currently used by
9,500 people.
We deliver 200,000 piecesof clothing a month. We wash over 1 million kgof linen a
month.
Every day we serve 60,000meals in 80
facilities. Lunch for companies’ employees and service at events and conferences.
No. 1 on the market.Every day we keep clean the area of 10 million square metresall over Poland. Over
1,300Clients. We provide cleaning services in 8,000facilities. Our services are performed by 14,000trained employees.
IMPEL Group in figures
For 20 years among the top three largest entities on the manned securitymarket in Poland. The service is provided by 10,000
employees. We have 1,400pieces of firearms.
Every month we countover 12.5 billionzloty. We have 250special vehicles to carry out collection services. We make 450,000 "stops"a year.
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Impel S.A. - podmiot dominujący w Grupie Impel.
Notowany na GPW od 2003 r. Odpowiada za kwestie strategiczne oraz korporacyjne.
Skład zarządu Impel S.A.
Grzegorz Dzik – Prezes Zarządu
Józef Biegaj – Wiceprezes Zarządu ds. handlowych
Wojciech Rembikowski – Wiceprezes Zarządu ds. finansowych
Danuta Czajka – Wiceprezes Zarządu ds. rozwoju
3 SEGMENTY PODSTAWOWE
OBSŁUGA NIERUCHOMOŚCI OCHRONA DYSTRYBUCJA
Impel Group – organisational structure
PLN 612 m1) PLN 405 m1) PLN 222 m1)
POZYCJA KONKURENCYJNA Impel2)
49% 33% 17%
NUMBER 1
UPC TON
NUMBER 3 NUMBER 3-4
CAT LOG REN+PR HR+KP
1) Share in the Impel Group’s revenue in 2011 (percentage and value) 2) Data from the Marketing Office of Impel S.A. (March 2012)
3) SOLID - Solid’s revenue includes total revenue from activities other than security 1% 2% 2% 3% 17% 0% 10% 20% Clar System Grupa EVER Dozorbud ISS Impel 1% 1% 1% 2% 3% 0% 2% 4% ZST DTZ Polska Cofely Dalkia Impel 3% 4% 8% 9% 16% 0% 10% 20% Juwentus G4S Impel Konsalnet Solid 2% 2% 3% 7% 0% 5% 10% Gastropol Impel Eurest Sodexo 1% 2% 2% 4% 0% 2% 4% Impel Henry Kruse Merida Lyreco 1% 3% 6% 6% 0% 5% 10% Bardusch Impel Berendsen CWS Boco 5% 10% 16% 20% 0% 10% 20% 30% Impel Adecco Randstad Work Service
Impel S.A. - parent undertaking
in the Impel Group. WSE listed since 2003. Responsible for strategic and corporate issues. .
Composition of the Management Board of Impel S.A. Grzegorz Dzik – President of the Management Board
Józef Biegaj – Vice President responsible for Commercial Function Wojciech Rembikowski – Vice President responsible for Finance Danuta Czajka – Vice President responsible for Development
3 BASIC SEGMENTS
FACILITY MANAGEMENT SECURITY DISTRIBUTION
IMPEL’s COMPETITIVE POSITION2)
PLN'000 2010 2011 Sales revenue 1 110 671 1 240 413 Subsidies 37 681 37 917 EBITDA 93 110 86 013 EBITDA margin 8,4% 6,9% EBIT 66 057 54 608 EBIT margin 5,9% 4,4% Depreciation/Amortization (27 053) (31 405) Net profit 53 961 58 976 Assets 585 477 660 035
Equity and reserves 301 588 333 178
Net debt 12 692 69 040
balance-sheet data at end of periods
Dynamic increase in revenue
Better organic sales
Consolidated financial results [1]
organic sales revenue ofPLN 97.3 million
revenue increase by 11.7%
revenue from acquisitions of
PLN 32.4 million
Recommendation of Impel SA Management Board conc.
dividend payment:
PLN 1.5 per share
•decreased revenue and margin – services for the army
•policy of reserves (receivables and employee claims)
•increased cost of new products’ development
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Higher labour cost, involvement in new projects.
Consolidated financial results [2]
1 002,1 1 240,4 1 110,7 1 033,3 900 950 1 000 1 050 1 100 1 150 1 200 1 250 2008 2009 2010 2011 Przychody ze sprzedaży w mln zł 21,5 48,7 66,0 54,6 4,4% 5,9% 4,7% 2,1% 0 10 20 30 40 50 60 70 2008 2009 2010 2011 0% 2% 4% 6% 8%
EBIT w mln zł Marża EBIT
14,0 33,5 53,9 58,9 4,7% 4,9% 3,2% 1,4% 0 20 40 60 80 2008 2009 2010 2011 0% 2% 4% 6% 8% 10%
Zysk netto w mln zł Marża netto
43,4 69,7 93,1 86,0 6,9% 8,4% 6,7% 4,3% 0 20 40 60 80 100 2008 2009 2010 2011 0% 2% 4% 6% 8% 10%
EBITDA w mln zł Marża EBITDA
Revenue EBITDA
Operating profit (EBIT) Net profit
+11,7%
-7,6%
+11,8% -17,3%
EBIT (PLN million) EBIT margin Net profit (PLN million) Net margin Sales revenue (PLN million) EBITDA (PLN million) EBITDA margin
Q4 2011 – retained dynamics of sales; adjusted margins
Comparison of consolidated results
2,1
(7,9)
8,9
16,7
7,1
329,6
Q4
2011
7,9
(7,6)
10,3
17,9
10,5
288,9
Q1
2011
53,9
(25,1)
66,1
93,1
37,7
1 110,6
2010
PLN million
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q2
2011
Q3
2011
2011
Sales revenue 266,3 267,2 275,9 301,2
304,9 316,9
1 240,4
Subsidies
9,0
8,9
9,6
10,1
10,7
9,6
37,9
EBITDA
17,5
20,7
29,0
25,6
23,9
26,9
86,0
EBIT
11,1
14,3
22,7
17,7
16,2
18,7
54,6
Depr/Amort.
(6,4)
(6,449)
(6,3)
(7,9)
(7,8)
(8,1)
31,4
Net profit
11,0
10,8
17,6
14,2
34,1
14,4
58,9
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1) Revenue from sales outside the Group
2) Relative to sales revenue, taking account of charges for trademarks, as well as strategic and corporate management services 3) EBIT of Impel S.A. net of val.allowances for shares and dividend (except for dividend from TMSI)
4) Adjustments unallocated to any segment
PLN’000 Razem Facility
Management Security Distribution
2010 2011 2010 2011 2010 2011 2010 2011 Sales revenue 1) 1 110 671 1 240 413 523 353 612 672 413 463 405 364 173 855 222 377 BUSINESS SEGMENT RESULTS 66 669 56 701 31 560 29 479 32 338 22 955 2 771 4 267 EBIT margin2) 6,0% 4,5% 6,0% 4,8% 7,8% 5,7% 1,6% 1,9% Group’s overhead3) - 515 - 3 458 Eliminations4) - 97 1 365 EBIT 66 057 54 608
Reflection of market situation: stiff competition, pricing pressure.
Business segments
new contracts from (cross selling)
strong competition results in decreased margins on
one-off contracts high cost in implementing
new services
lower revenue from contracts with the army – relative to 2010
pricing pressure and reduction in rates – completion of contracts
at lower margins
employment restructuring costs relating to statutory elimination of
part of subsidies
companies’ revenue from acquisitions
+PLN32 million
EBIT margin 2010 5.0%
+ PLN 2 mrecognition of profit from taking
control of Consensus company + PLN 3.2 mrelease of provisions for
employee claims
Major events at IMPEL Group in 2011 [1]
Consolidation of
market position
increase in market share of cash processing services (Citi Handlowy, BH w Warszawie S.A.), CCTV and GPS monitoring (Ramirent S.A.), handling services (airlines - Enter Air, PLL LOT) and temporary work (Krajowa Spółka Cukrowa, MAHLE Polska, Federal-Mogul);
cross selling
–
joint concept of contract execution – comprehensive service including cleaning, guarding of property, FM and catering – Swissmed Hospital Centrum Zdrowia Warszawa, Military Hospital and Outpatient Clinic SP ZOZ inŻary;synergy of the Group’s services – comprehensive service offer including accounting, payroll&personnel, IT and temporary work.
Impel Catering – franchise agreement with NORDSEE concerning exclusivity for opening NORDSEE brand restaurants within the territory of Poland;
CleanPRO– new brand covering professional products for cleaning companies;
new activities in business area – acquisition of Impel Gwardia Wrocław
sports company and formation of Impel Volleyball S.A., incorporated to support the team and promote women’s volleyball in Lower Silesia;
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Major events at IMPEL Group in 2011 [2]
Changes in regulations
New undertakings in the
Group
finalised acquisition of two companies (AGROBUD BHP S.A. and Brokers Union sp. z o.o.) – return to development path through market acquisitions;
Formation of Rest&More Sp. z o.o. and Rest&More Sp. z o.o. S.K – companies formed to manage the franchise agreement signed with Nordsee GmbH, and authorized as the exclusive agent of the brand in Poland;
two new entities in Luxemburg – activation of the Impel trademark making use of the international structure
Payment of dividend
for 2010
payment of dividend at the level of PLN 2.00 per share dividend yield of 8% for 2010
ranked 26th among the companies with the highest dividend for 2010.
Regulations conc. Sheltered Employers of the Disabled (ZPCHr) – reduction in subsidy amounts for remunerations of persons with minor disability (as from 2011) and moderate disability (as from 2012)
Minimum wage – increase in minimum wage up to PLN 1,500 i.e. by 8.2%;
Disability pension contribution – increase in the premium by 2% on the part of the employer
Sources of value at IMPEL Group
Capital-related activities
Value increase through acquisitions:
• of companies whose profile is consistent with core
business
• of companies restructuring their operations • enabling entry into new niche segments
Operating and financial
activities
Thorough knowledge of customers + cross selling
Further streamlining of the capital and business structure Process optimisation + economies of scale in purchasing Growing role of service integrator
New outsourcing services
Steady improvement in the quality of offered services Incentive schemes
Tax optimisation
Positive effect of negotiations concerning the Group’s financial terms
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The Division – property development business spin-off
•
division of Impel S.A. effected by transferring a part of its assets, i.e. Zakład Ecoimpel, to
Vantage Development S.A. pursuant to Art. 529.1.4 of the Code of Commercial Companies
(in return for Vantage shares)
•
1 March 2012 – registration of the division by Court
•
6 March 2012 – determination of reference rate for IMPEL shares – share price adjustment
by 30.12%,
•
7 March 2012 – adjusted price of IMPEL shares = PLN 20.47
•
9 March 2012 – reference day
•
20 March 2012 – allocation of shares according to parity 1:3.2109,
•
26 marca 2012 – IPO of Vantage Development S.A.,
•
fair value of 1 division share of Vantage Development S.A. = PLN 4.72
•
increase in value of 1 Impel S.A. share follow. adjustment from PLN 20.47 to 24.99 (
by 22%).Enhanced transparency of ownership structure.
Concentration on IMPEL’s core business.
The separation will enable investors to match their investment portfolio with the
desirable risk profile
20,8x 19,2x 21,7x 17,2x 14,9x 15,3x 14,5x 13,3x 9,0x 12,0x 15,0x 18,0x 21,0x 24,0x
Mediana spółek porównywalnych = 16,2x
-69% 11,0x 10,0x 9,5x 9,4x 8,2x 8,3x 8,3x 8,2x 5,6x 4,7x 3,0x 5,0x 7,0x 9,0x 11,0x 13,0x
Capi ta Compass Sodexo Serco Prosegur G4S Securitas Miti e Rentokil
Initi al
Impel (po podziale)
-43% Mediana spółek porównywalnych = 8,3x
Potential valuation vs. comparable companies
EV/EBITDA ratio
P/E ratio
Impel’s current market valuation discount (following the division) in relation to comparable companies is about 43% (according to EV/EBITDA)
Impel’s current market valuation discount (following the division) in relation to comparable companies is about 69% (according to P/E; net result was not adjusted by deferred tax asset from trademark)
*
Impel
(after the division)
Average of comparable companies = 16.2x Average of comparable companies = 8.3x
