Elis (ELIS) Investor Update summary

Strategic rationale and market context

• Pursuing international expansion through acquisition of market leaders aligns with long-term strategy and has driven significant growth and diversification across 30 countries.

• North America, especially the U.S., is seen as a large, attractive market with structural growth drivers and a $50 billion size, offering significant opportunities for expansion and risk diversification.

• Entry into the U.S. would be consistent with the approach of acquiring a national leader to establish a strong platform for further consolidation.

• North America’s addressable market is $48bn, about twice the size of Europe’s, with industry growth forecast at 5–6% annually.

• Ongoing research and early-stage exploration of North American opportunities.

Track record and operational expertise

• Demonstrated ability to integrate and optimize acquired businesses, as shown by margin improvements in Latin America and the U.K.

• Operational excellence measures, such as productivity improvements and cost optimization, have been successfully implemented in past acquisitions.

• KPIs across commercial, industrial, and social dimensions have improved post-acquisition, even during challenging periods like COVID.

• Continuous commercial momentum with new contract wins and strong customer retention.

• Ongoing productivity gains through best practice rollouts and logistics optimization.

Financial and operational performance

• H1 2024 revenue reached €2,246.7m, up 6.9% year-on-year, with organic growth of 5.5%.

• Adjusted EBITDA rose 10.9% to €774.3m, with margin improving to 34.5%.

• Adjusted EBIT increased 8.6% to €343.6m, and net income per share grew 1.6% to €0.83.

• Free cash flow was €55.5m, up by approximately €39m year-on-year.

• Financial leverage ratio improved to 2.06x as of June 30, 2024.