3. Building on a proven track record of delivery
86
Strong year on year
improvement
Resilient underlying
business performance
weathering commodity /
Municipal headwinds /
natural decline in Landfill
Gas yields
Robust underlying cashflow
generation pre discretionary
growth spend
£103m of acquisitions
funded from underlying free
cash flow over last three
years
705
771
830
927
1006
1031
1090
34
49
63
74
81 82
89
10
20
30
40
50
60
70
80
90
100
110
500
600
700
800
900
1000
1100
2014 2015 2016 2017 2018 2019 FY20
Analyst
ConsensusNet Revenue Underlying EBIT
FY20 Company compiled consensus includes £2m impact of IFRS16
4. We have the balance sheet to fund our growth plans
87
Strong,
stable and
growing
Underlying
Free Cash
Flow
Gearing will rise over next 2 years but remain <2.5x*. Medium term target c2x*
Dividend
growth
through
improving
profitability
Collections
acquisitions Energy from Waste
Plastic recycling
solutions
Investment Priorities
* pre IFRS 16 measures as per banking covenants
5. And our ongoing delivery will drive significant shareholder value
88
Investment assumptions (FY20-
23):
• c£100m aggregate acquisition
spend* with high teen % IRRs
• £70-80m equity contributions
to EfW (3 year build and
commission) which will yield
mid-high teen % IRRs
• £60-£80m expenditure on
Plastics recycling capex with
low 20’s % IRRs
* in line with FY17-19
Targets:
Underlying operating profit growth of around 50%
compared to FY19
Underlying EPS growth of over 50%; and
Progressive dividend