Final Results
for the year ended 30 June 2014.
This presentation, which has been prepared by Regenersis PLC (“the Company”), includes statements that are, or may be
deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking
terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “foresees”, “intends”, “may”,
“will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements
include matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current
expectations. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and
circumstances. A number of factors could cause actual results and developments to differ materially from those expressed or
implied by the forward looking statements. Any forward-looking statements in this presentation reflect the Company’s view with
respect to future events and other risks, uncertainties and assumptions relating to the Company’s operations, results of
operations, growth strategy and liquidity. The Company undertakes no obligation publicly to release the results of any revisions or
up-dates to any forward-looking statements in this presentation that may occur due to change in its expectations or to reflect
events or circumstances after the date of this presentation.
This presentation comprises information which is already in the public domain. No reliance may be placed for any purposes
whatsoever on the information contained in this document or on its completeness. None of the Company, its advisers, or any other
party is under any duty to update or inform you of any changes to the information contained in this presentation.
2
Financial highlights.
Revenue
Headline operating cash flow**
10%
Growth
£197.5m
Working capital and
capex expansion
£179.7m
£12.9m
£4.5m
FY14
FY13
Headline operating profit
Another year
of double digit
growth in
Revenue and
HOP
FY14
Net Cash / (Debt)
Balance sheet
strengthened
around the Blancco
acquisition
16%
Growth
£11.0m
FY13
£20.6m
£9.5m
(£1.9m)
FY14
FY13
FY14
FY13
Corporate costs
Investment in people to
support the growth ambition
£4.6m
£2.2m
FY14
FY13
Headline operating profit excludes exceptional
restructuring costs, acquisition costs, amortisation or
impairment of acquired intangible assets, share-based
payments and share of results of jointly controlled entities.
(**)Headline operating cash flow excludes tax and interest
payments.
(*)
3
The margin story.
Advanced Solutions HOP
Growth rate of
over 100%
Effect on total
divisional margin
(before corporate costs)
£7.5m
£3.6m
FY14
FY13
7.9%
HOP Margin % (FY14)
c. 3x rest of
group average
HOP margin
16.2%
FY14
6.5%
FY13
5.4%
Advanced Solutions
Depot Solutions
Advanced Solutions % of Group HOP
Advanced Solutions
growth (due to accelerate
in FY15 with Blancco) is
very promising for group
margins going forward
48%
31%
FY14
FY13
4
Key developments in FY14.

Depot performed according to plan and proved that global integration will provide
scope for significant margin improvement

Advanced Solutions became the dominant driver of group profitability

The Digital Care business succeeded beyond (even) our expectations in Poland –
opening up a major new opportunity for international roll-out

Blancco fundamentally changed the group portfolio going forward, and the scope
of our future M&A activity

The new global sales force delivered a string of large new business wins,
especially in H2
Advanced solutions
became the
dominant driver
Headline operating profit
(£ million)
12
11.0
7.8
8
6
Group
9.5
10
7.5
6.3
5.7
4
Overall the Group
has delivered a
good rate of growth
in its target areas,
with more to come,
at improving
margins, from
Blancco and Digital
Care next year
2.4
2.9
Advanced
Solutions
3.6
2
0
FY10
FY11
FY12
FY13
FY14
5
Highlights: Depot
People

Senior management team strengthened, notably: new MD Depot/COO; CIO; and
Director of Sales, Innovation & Marketing
Globalisation, integration and operational improvement

Good first year of progress on globalising the operation

Global operations structure implemented, replacing regional structure

Global Continuous Improvement team created, and Kaizen successfully extended
from the UK to Poland and Spain

Copernicus system extended to further sites, replacing legacy IT platforms

New shared function opportunities identified in purchasing and reporting

Xcaliber diagnostic systems installed in our largest smartphone facilities

Oktra STB diagnostics systems installed in STB depots
Required rate of
change slowing as
focus on people and
global integration to
drive margin takes
effect
Differentiated technical capabilities built up

Advanced LCD delamination/relamination facility constructed (Romania)

Introduction of B2B operations to the United States (Memphis)
6
Highlights: Advanced solutions
Digital Care

In 2012 we set out to “change the rules” versus established insurance programs
Our solution

vs
Market
 Accidental damage, which
x
drives huge frustration
 Deliver service entirely
online
 Auto-attach the product
Theft and loss cover, which
penalises the honest majority
x
x
High-pressure sales
Expensive commissions
In 2013-14 we won contracts with all three of the mobile operators in Poland, our
lead market. The first programme began to ramp up in May 2014
IFT

Steady growth occurred in the USA. The big breakthrough of rolling out across the
whole estate of a major TV operator appears to be closer than ever

Consolidation of Virgin Media by Liberty Global has created both opportunities and
risks which we are working through
Advanced Solutions
now 48% of group
profits, showing
revenue growth of
64% and rapidly
improving HOP
margin of 16%.
Set to grow further
with a full year
contribution from
Blancco.
Recommerce


Market competition and volatility increased in the period, leading us to conclude that
the group has better investment opportunities elsewhere in the portfolio
Recommerce is now focused on a few large clients and on delivery of high quality
“closed loop” services
7
Highlights: New business
Overall

New business performance was strong over the year as a whole and accelerated in
the second half of the year
Depot highlights

Large contract with an industrial group in Europe to provide repair and reverse
logistics for a range of payment devices

Global refurbishment contract with global OEM, based on the new facility constructed
in Romania

Series of insurance-related fulfilment and repair contract for clients in Mexico,
Poland, Romania, and other territories
Good overall level
and mix of new
business
Advanced Solutions highlights

Digital Care programs with the three Polish mobile operators

Blancco partnership with Kroll Ontrack, formerly its largest competitor

Xcaliber Technologies succeeded in deploying pilot schemes with a number of
mobile operators and distributors, which should translate into new business in due
course
8
Strategy update.
DEM
SSD
Live
erasure
Environment
Digital
Erasure
IFT Care
SmartChk
Key developments looking forward
1. More proven
success to build on
than one year ago
Clients
Recurring income
across multiple
complementary
lines of
business
Service
Consistent
High-quality
execution
Integration
Global consistency
of processes
M&A
innovation and
global footprint
Platform
Sharing costs across services, sites and clients
3. Efforts so far show
significant potential to
reduce costs
Same focus on our
people
Integration to drive
margin increase in
Depot (on a huge
base of sales)
Innovation
Bringing new
services to
market
People
Building the best
team in our sector
M&A focused on
opportunities
anchored by Blancco
2. Blancco is an
excellent anchor
for further M&A
Advanced Solutions
focused on Blancco,
Diagnostics and
Digital Care
Same focus on
service and on global
client relationships
9
Software update.
Blancco

Blancco acquisition completed in April and made a small contribution to
FY14 (there is significant seasonality) – with a full year to come in FY15

Financial performance has been ahead of expectations

With two further acquisitive actions below, Blancco becomes a new hub of
activity for M&A growth
Investment in Xcaliber Technologies

Regenersis acquired 15% of Xcaliber in November 2013, for $1.2 million

Increased stake to 49% in July 2014, for $3.5 million

Integrated product with Blancco under development
Acquisition of SafeIT

Blancco has
performed well,
while its brand
leadership and large
international sales
force provide an
excellent platform
for further
acquisitions
Regenersis acquired SafeIT in August 2014 for £1.4 million
10
Software opportunities.
Proposition
What is it?
Who is it for?
Why do they need
it?
Why do they need it
from us?
Status
Corporate
Data Erasure
Management
Auditable data erasure
with exception reporting
Most corporates and
public sector
Compliance with new
Data Protection
regulation
 Blancco brand
 Blancco sales force
 Unique integrated
solution
Live revenuegenerating
product
Erasure in
Live
Enterprise
Environments
Erasure of remote files,
folders and LUNs
(logical drives) in
enterprise networks
Security-conscious
‘verticals’ adopting a
‘clean up as they go
along’ approach
Justified paranoia
about network
penetration
 SafeIT unique
technology
 Blancco brand
 Blancco sales force
Live revenuegenerating
product
Smartphone
self help and
returns
avoidance
Software which
diagnoses and fixes
smartphone problems
Mobile operators
Reduce cost of
customer service and
‘no fault’ returns
 Regenersis sales
force
 Xcaliber unique
technology
Live revenuegenerating
product
Integrated
Smartphone
Diagnostics &
Erasure
Automated smartphone
function testing and
erasure for high volume
logistic processes
Companies engaged
in smartphone
recommerce and
repair
Consolidate two
processes into one –
reduce costs and
improve quality




In
development
Unique solution
Blancco brand
Blancco sales force
Xcaliber technology
We are focused on “productising” our success in these areas so that they can
be sold rapidly across the whole global organisation
11
Income statement.

10% revenue growth

In constant currency terms
revenue would have been 8%
higher and £0.6m higher on
HOP i.e. £11.6m HOP
9.5
(1.9)
(0.1)
(0.4)
7.1

33% growth in HOP before
corporate costs

Corporate costs increased to
support growth
3.6
(0.2)

(1.2)
2.9
0.4
3.2
(1.2)
5.7
(1.0)
4.7
Acquisition costs primarily due
to Digicomp & Blancco
acquisitions

14% long term tax rate
£million
FY14
197.5
FY13
179.7
Headline operating profit before corporate costs
15.6
11.7
Corporate costs
(4.6)
(2.2)
Headline operating profit
Acquisition and restructuring costs
Amortisation of acquired intangible assets
Share based payments and JV
Profit on Disposal of JV/Associate/Subsidiary
Operating profit
Unwinding/re-evaluation of deferred
consideration
Net finance charge
Profit before tax
Tax
Profit after tax
11.0
(9.4)
(0.6)
(0.8)
0.2
0.5
Revenue
12
Balance sheet.
FY14
FY13
103.7
40.5
5.3
7.4
1.2
4.4
4.6
3.5
117.6
53.0
10.1
37.7
(43.5)
(1.5)
7.9
26.1
(33.4)
(1.0)
2.9
20.6
(0.4)
(1.9)
(6.4)
(7.8)
(4.3)
(10.6)
(3.5)
(11.3)
130.4
39.4
Capital Employed (*)
17.1
9.6
Annualised ROCE (HOP / Capital employed)
64%
99%
£million
Non current assets
Goodwill, acquired brand/IP/technology,
and investments
Tangible assets *
Intangible assets *
Deferred tax
Current assets
Stock *
Debtors *
Creditors * and VAT*
Other net current liabilities
Net Cash/(Debt)
Non current liabilities
Deferred consideration
Other non current liabilities
Net assets

Goodwill arising on Blancco and
Digicomp acquisition

Stock increase in newly
acquired businesses

Growth in debtors offset by
growth in creditors
13
Cash flow.
Capex and R&D:
£6.7m 2014
(£4.3m 2013)
Operating activities
25.0
£20.6m
15.0
10.0
5.0
Net proceeds raised, acquisitions and corporate matters
Net proceeds raised
Blancco
Digicomp
Others
Exceptional acquisition/restructuring costs
Taxation
Interest
Share option vesting
Dividend
FX and other
Total
Net cash at 30 June 2014
Net proceeds raised,
acquisitions and corporate
matters
Capex and R&D
Working capital
Depreciation/Amortisation
(5.0)
(£1.9m)
HOP
0.0
Net debt at 1 July 2013
£ millions
20.0
£ million
96.7
(49.6)
(4.5)
(1.2)
(9.4)
(0.8)
(0.7)
(5.3)
(1.5)
(0.6)
23.1
14
Divisional performance.
£m
Revenue
HOP
HOP %
FY14
FY13
FY14
FY13
FY14
FY13
Emerging Markets
76.0
55.4
6.7
5.9
8.8%
10.6%
Western Europe and North America
75.2
96.1
1.5
2.2
2.0%
2.3%
151.2
151.5
8.1
8.1
5.4%
5.4%
46.3
28.2
7.5
3.6
16.2%
12.8%
197.5
179.7
15.6
11.7
7.9%
6.5%
-
-
(4.6)
(2.2)
197.5
179.7
11.0
9.5
5.6%
5.3%
Depot Solutions
Advanced Solutions
HOP before corporate costs
Corporate costs
HOP

Standout operating profit
growth in Advanced Solutions

HOP before corporate costs
up 33%
15
Outlook.

Current trading in local currency terms is in line with our expectations and the group continues to target double digit
growth in revenue and profitability

Strong sterling pressures felt in the last financial year have continued in the year to date

New business wins have progressed very well and are significantly ahead of the run rate at this stage for last year

Advanced Solutions as a proportion of Group revenue is expected to continue to increase rapidly

Opportunities for global growth, both organically and by acquisition, remain strong.
16