Elis Capital Markets Day 2025

Core Insights - Elis is positioned for profitable and sustainable growth through a financial strategy aimed at enhancing shareholder returns [1][5] Group Strategy and Financial Outlook - The company operates in 31 countries with a high-margin business model designed for sustainable growth [3] - CEO Xavier Martiré emphasized the strength of the company's model, highlighting its profitability and responsibility across various markets [4] - The focus for the coming years will be on deploying the current strategy while enhancing shareholder returns through operational excellence, sustainability, and financial discipline [5] Medium-term Financial Objectives - Elis targets revenue growth of +5% to +6% annually at constant exchange rates, with approximately +4% organic growth and +1% to +2% from acquisitions [7] - The company aims for an average annual EBITDA margin improvement of about +20 basis points and expects EBITDA, EBIT, and EPS growth to exceed revenue growth [7] - Cumulative free cash flow is projected to be around €1.5 billion from 2025 to 2028, a +35% increase compared to the previous four years [7] - Annual allocations of €50–150 million are planned for targeted acquisitions, while remaining cash will primarily enhance shareholder returns through dividends and share buybacks [7] Key Strategic Pillars 1. Sustainable Services and Circular Economy - Elis's circular rental model enhances operational efficiency and environmental leadership, with 69% of revenue aligned with the EU taxonomy in 2024 [6][8] 2. Industrial and Commercial Excellence - The company has improved industrial productivity by +45% in flat linen and +58% in workwear since 2007, with ongoing process optimization expected to yield an additional ~+2% annually [9] - Structural trends such as tighter hygiene standards and rising sustainability expectations support growth [9] 3. Consolidation of Existing Positions - Elis is reinforcing its presence in key geographies and expanding high-value-added services, generating €320 million in revenue in 2024 with strong organic growth [10] 4. Network Expansion - The company is diversifying geographically, focusing on high-growth potential countries, with significant success in Latin America and Europe [11]