Rentokil Initial Investor Day Presentation Deck
Old Structure
Five Regions
NA, Europe (incl. LatAm), UK & ROW, Asia, Pacific
Categories
Pest Control, Hygiene, Protect & Enhance
Old Targets
Organic Revenue Growth
Group: 3% -4%
Pest Control: 4% -6%
Hygiene: 2% -3%
Workwear: n/a
Pest Control (1/1/2022)
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Snapshot Summary
Strongly positioned as we transition into the post-crisis world
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Ongoing Revenue Growth
Total Growth of 5% - 8%
Ongoing Operating Profit
Growth of c.10%
Global market: c.$22bn in 2020 (NA c.50%) - continued growth: 4.5%-5%+ pa.
Every region is growing its per capita spend on pest control.
Core growth drivers: Growing middle classes, urbanisation etc. unchanged.
c.20,000 highly trained technicians.
New medium-term organic growth target: 4.5% -6.5%.
Growth being driven by innovation, digital and sustainability.
Pipeline of over 50 innovations.
Free Cash Flow
Conversion rate
of c.90%
Rentokil
Initial
17 patent applications relating to RI inventions.
Digital pest control's time has come: Our ambition is to reach c. 25% of commercial customers
by 2026 (c.3% today).
Enlarged category: UK Property Care joins from 1/1/22.
M&A: Clear opportunity for value creation: NA, density building, cities of the future.
New Structure (1/1/2022)
Five Regions
NA, Europe (incl. LatAm), UK & Sub-Saharan Africa, Asia & MENAT, Pacific
Categories
Pest Control, Hygiene & Wellbeing, Workwear
New Targets (1/1/2022)
Organic Revenue Growth
Group: 4% - 5%*
Pest Control: 4.5% -6.5%
Hygiene & Wellbeing: 4% -6%*
Workwear: 3% -4%
* Excludes Disinfection
Hygiene & Wellbeing (1/1/2022)
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Ongoing Revenue Growth
Total Growth of 6% -9% (M&A 2%-5%)
Ongoing Operating Profit
Growth of 10%+
Free Cash Flow
Conversion rate
of c.90%
Core Hygiene market - pre-pandemic growth typically c.2%-3%, broadly in line with GDP.
Expectations and importance of Hygiene and Wellbeing services have changed forever.
New Hygiene & Wellbeing category - right business at the right time to meet the future needs of
our customers - including the expertise of Ambius, Dental Hygiene and Cleanrooms from
1/1/22.
New organic growth target: 4% -6% - on the enlarged category (excl. Disinfection) delivered
through Core washrooms (c.50% of target), premises/enhanced environments outside the
washroom and geographical expansion (c.50% of target).
Driving margins: Focus on postcode density, product density, shared overheads, M&A.
Strong fit with Pest Control: Shared infrastructure, cost synergies and revenue opportunities.
M&A: Emerging pipeline with c.80 targets already in place. Targeting annualised revenues of
£25m+ p.a. Open to the potential for larger transactions, if available.
Ambition to reach £1bn+ Ongoing Revenues.
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