Capital Markets Day17 September 2019

Leading in UK Sustainable Waste Management

Michael TophamCEO

Welcome

3

AgendaSubject Presenter

Welcome and Strategic Overview Michael Topham

Collections Growth Opportunity Jeff Anderson

Coffee Break

Leading in UK Plastic Recycling Mick Davis

Developing Energy from Waste Infrastructure

Mike Thair

Coffee Break

Funding our Sustainable Platform Richard Pike

Panel Discussion Various

Summary with Q&A Michael Topham

The Team

5

Michael TophamCEO

Richard PikeCFO

Jeff AndersonCOO - Collections

Mike ThairDirector of Business Development & Treatment

David Gooding IT Director

Jane Pateman HR Director

Roger Edwards Managing Director Municipal

Mick DavisCOO Resources & Energy

We are the leader in UK sustainable waste management

6

With a diverse range of capabilities, generating strong returns

£1,031mNet Revenue

£81.7mOperating Profit

7,900Employees

2,794Vehicles

> 190Locations

10.8m Tonnes waste

handled

Collections

I&CRevenue: £560.2m

MunicipalRevenue: £164.6m

Specialist ServicesRevenue:

£72.5m

Resources & Energy

RecyclingRevenue:

£79.2m

OrganicsRevenue:

£61.7m

InertsNet Revenue:

£47.1m

Landfill GasRevenue:

£45.5m

All number are from FY19

With a Strong Track Record of Profitable Growth

7

Average net revenue growth 7.9% p.a. FY14-FY19 split between organic (40%) and acquisition (60%)

Strong growth in tonnages

Strong growth in margins and return on assets since 2014

705

771

830

927

1006 10311090

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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 FY20Analyst

ConsensusNet Revenue Underlying EBIT

With a clear Vision to further strengthen and grow our business

Market presence

Services & infrastructure

Systems & processes

Three pillars… Vision

Grow

Develop

Optimise

8

Clear market Leader in Collections

Organic Growth above market

>£100m invested in acquisitions

Unparalleled scale driving sector leading margins

Larger, diversified and de-risked Resources & Energy business

Leading Polymer Processor, £120m - £150m revenues

Growing earnings from Energy from Waste assets

Unrivalled leadership in sustainability

Underpinned by supportive government legislation

Currently focused on three specific opportunities

9

Leading in UK Plastic Recycling

Operational and development track record

Control of materials

Trusted off take partnerships

Developing Energy from Waste Infrastructure

Proven market need

Control of waste and consented sites

Underpins I&C business

Collections Growth Opportunity

Scale and capabilities position us well for organic growth

Proven track record of M&A

Platform gives unique synergy opportunities

An Extremely Powerful Sustainability Story

10

Consolidation in Collections

Recycling/ EfWInvestments

Strong ESG Performance

• Drives more efficient logistics• Reduces carbon impact• Positions us well for fleet

electrification

• Moves waste up the hierarchy• Reduces carbon impact

• Investing in UK green economy infrastructure

• Substantial UK employer • Significant UK indirect tax payer

11%Reduction in distance between lifts in last four years

21%Reduction in Scope 1 emissions sinceFY16

*Taxes paid include: Landfill tax, VAT, PAYE, Employers NIC, IPT and SDLT

£230m Paid in UK indirect taxes*

Introduce Biffa’s Executive and leadership teams

Provide insights on our markets and changing regulatory industry dynamics

Explore our three key areas of strategic growth and the advantaged positions in each; and

Shine a light on our strong sustainability performance

Objectives of the Day

11

Biffa: our markets, growth prospects and ESG performance

Thank you.

Jeff AndersonChief Operating OfficerCollections

Plastics RecyclingPolymers

Collections:The growth opportunity in I&C

Introduction

Collections Division Structure

Industrial & Commercial (I&C)

MunicipalSpecialist Services

Stat

sO

verv

iew

Pri

orit

ies

Revenue £560.2mTonnes 2.5m (collected)

Revenue £164.6mTonnes 1.5m (collected)

Revenue £72.5m

Waste collection and materials handling services to I&C customers.

Household waste and recycling collections, street cleaning and other services.

Specialist services to I&C customers including;• Hazardous waste collection & treatment• Integrated resource management• Producer responsibility compliance

Continue to grow organically & via acquisitionsDevelop new routes to market including e-commerce capability

Business stabilised, positioned to selectively grow portfolioPrepare for & benefit from Government resource and waste strategy

Continue to drive organic growth in IRM complex customersRestructure Hazardous business to merge with IRM businessLeverage I&C customer base

16

I&C Market

I&C Market

Market Share

Market Sizing

£m %

Nationals (incl. Biffa I&C) 1,657 28%

Large Regionals 2,398 41%

Corporate Brokers 396 7%

Others 1,441 24%

Total 5,892 100%

Biffa I&C and Specialist Services

£632m 11%

Biffa is the clear leader in a fragmented market

Competitive Landscape

NationalsLarge

Regionals (e.g.)Corporate

BrokersOthers

VeoliaSuezViridorDS SmithFCCTradebeAugean

Bagnall & MorrisBywatersCawleysGrundonSimply WasteHillsEnva

First WasteGreenzoneMitie WasteReconomyUKWSLACMCheaperwaste

Local AuthoritiesC&D operatorsSmall regionalsSmall brokers

18

11%

17%

41%

7%

24%Biffa I&C

Nationals

Large Regionals

Corporate Brokers

Others

Source: estimates based on Biffa Data

► Only one national competitor has market share greater than 5% in I&C core market

► Other nationals have not been acquisitive in the collection market

► Biffa is the natural consolidator

Critical service which businesses must have

Mainly scheduled service based (as opposed to volume based) revenue

Ever increasing complexity in terms of segregated services and customer sustainability requirements

Evolving policy further underpins this

A market in which the scale operator has a distinct advantage

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Route density & lowest cost operator – scale

99% services are scheduled and non variable

Disposal costs absorb 50% of collection revenues - leveraging scale unlocks disposal benefits

Large operators have scaleadvantage – both nationally and locally - supporting further industry consolidation

Landfill diversion, contamination levels & carbon emissions

Smart logistics mapping allows constant re-configuration of routes

Technology supports customer, driver & vehicle data –management information driving efficiency

Carbon ‘waste miles’ becoming important

Critical Non-Discretionary Service

Increasingly requiring scale Increasing relevance of ESG performance

And are supported by the ongoing policy environment

Improvement in recycling rates will lead to greater requirement for segregation in containers and collections

Mandated separate food collections will drive density to I&C food fleet and re-inflate AD gate fees

Extended Producer Responsibility will lead to a greater recovery of recycling/re-processing costs from manufacturers & retailers

Deposit Return Schemes should lead to a reduction of plastic bottles in Dry Mixed Recycling (DMR)

Extended Producer Responsibility

20

Biffa’s differentiated I&C business

We provide a unique Integrated Waste Proposition

End to end integrated solution important to all customer channels

Group processing capability -importance of end destination reporting

Carbon and sustainability metrics

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And a clear track record of delivery

Price Management

1

Low Operating Cost

Improved Retention

Acquisition Integrations

Strong Management Team

5

2

3

4

Strong price management and maintenance across all channels especially in SME 21% growth since 2015

Operating costs have remained flat for 6 years offsetting inflationary increases with efficiency gains

Retention rates have consistently improved for 5 years – SME churn down to <10% for past 2 years

Effective at acquisition integration – faster synergy delivery for ‘tuck-under’ deals

Regional P&L ownership supported by strong people capability

FY15 FY16 FY17 FY18 FY19

Unit Ops cost

growth-6.1% -0.7% -1.0% 0.5% 1.9%

FY15 FY16 FY17 FY18 FY19

Unit Earnings

growth3.2% 5.6% 3.7% 4.7% 4.1%

FY15 FY16 FY17 FY18 FY19

SME Churn

13% 12% 12% 10% 9%

FY15 FY16 FY17 FY18 FY19

Deals 8 8 5 7 6

Revenue £6m £30m £19m £51m £64m

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• Unit earnings is collection revenue minus cost of disposal per m3

• SME churn – annualised impact, in year effect broadly 50% of annualised

With National Coverage

Consistent, effective, reliable – Strong platform for growth

1308Vehicles

37Transfer Stations

66Depots

The largest commercial waste collection network in UK

95% UK postcode coverage

Strong buying power – disposal costs

Critical mass supports flexibility & strong route density

98% first time service success

High customer retention rate

3400FTE

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And the greatest benefits of scale in a Fragmented Market

Lowest cost to serve, efficient & with strong ESG credentials

25

700kcontainers collected

each week

0.62lifts per km up 11% since 2015

Stable Ops cost over 5 years

Carbon mapping capability

Vehicle capacity increased due to fleet double shifting – 24/7 operations

Full waste stream coverage, close to customers and highly flexible

Modern collection fleet, significant investment over 5 years

Dedicated driver training resource

Carbon mapping tool introduced – demonstrates value of being located close to the customer

Well positioned to leverage electric vehicle technology

We have a winning formula for customers

Self Delivery 95% postcode coverage Well invested fleet Full waste stream coverage

Customer Service Levels 98% first time service Strong cash collection

Account profitability 100% corporate customers are profitable

SME higher margin

Brand Increasing profile of ESG

Pricing Critical mass and strong route density

Innovation & MI Un-paralleled real- time customer MI

Sustainability & Compliance

Waste data, traceability & supplier governance

Carbon mapping

Corporate Customers

165 customers - c. £283m collection revenue; 62 customers with annual spend > £1m pa

Strong cross sector mix – low exposure to single channel

Retail Leisure FM BrokerUtilities &

Construction

£78m £54m £61m £50m £40m

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Current run rate revenues; including SWR revenues

SME Customers

74,000 customers - c. £317m collection revenue with average spend > c. £4k pa

Strong cross sector mix – low exposure to single channel

Our Management Information is industry leading

E2E data supporting Customer Management Information

27

And we look to create strong sustainable partnerships

Customer Advocacy

10 year + relationship

1400 UK wide outlets including bakeries

One million collections each year across residual waste, food,

recyclables and other

36,000 waste tonnes handled

99% first time service – 95% self delivered

96% diverted from landfill

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Which is reflected in our win and churn rates

Retention & new business win rates are strong

National players & waste brokers compete for corporate customers

Regional & SME customers targeted by multiple suppliers

Impressive retention rates – strong link to acct management capability & service delivery

Strong track record of organic revenue growth

Price increase discipline ensures recovery of cost inflation

SME price elasticity well managed & industry leading

Added value services in corporate & IRM estates

45%

28%

95% 94% 91%

0

20

40

60

80

100

Corporate Regional Customers SME

Win Ratio Retention Rate

3.5%2.9%

5.9%

2.5%

3.2%

0

1

2

3

4

5

6

7

FY15 FY16 FY17 FY18 FY19

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n/a

Specialist Services

Integrated Resource Management

Hazardous Waste Compliance Schemes

Sta

tsO

verv

iew

Op

por

tun

ity

Revenue £34m Revenue £24m Revenue £14m

• Complex customers – manufacturing, retailers, food processors

• On-site support – waste segregation

• Commodity and rebate based

• Generates important volumes for Biffa Group – £7m revenue internalised

• Collection & disposal of packaged hazardous wastes

• Industrial cleaning – facilities e.g. power stations

• Liquid tanker operations

• End of life treatment (aerosols, flu tubes & bulk liquids)

• Biffpack

• Packaging Waste Compliance Scheme

• Sources Packaging Recovery Notes (PRNs) on behalf of customers

• 500 Scheme members

• Transform (WEEE) & Battery compliance

Waste segregation at source increasingly important on large facilities

• Resources & Waste strategy and end to end visibility of waste materials

• Strong link to PRN requirements

• Opportunity to penetrate I&C corporate customers

• Packaged waste opportunity in regional and SME accounts

• Retain current membership and profitability

• Engage with govt as part of EPR consultation process – Resources & Waste strategy 2023

Specialist Services provides strengthened core offer & growth

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Manufacturing Focused / Award Winning / Integrated Experts

Bespoke Service Offering

Tailored MI Reporting and dedicated on-site Management

Strong presence in Food Manufacturing Sector

Growth in Distribution Centres (JLP, BP etc)

Specialist Waste Handling & Telemetry provider - Biffa Equip

Building innovative waste food and co-product collection and

processing into pet food – ‘closed loop solution’

Integrated Resource Management: services a Broad Customer Landscape

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Nationwide fleet / UK Treatment Facilities / UK Transfer Station Network

Hazardous Waste complements the overall offering

National collection capability supported by Haz Waste transfer station network

National Tanker Fleet to deal with all types of liquid waste

Treatment capability in aqueous liquids, aerosols and fluorescent tubes

Secure Waste Destruction facility

Opportunities

► Most I&C customers will require a hazardous waste service

► Corporate, SWR and IRM customers will generate significant additional spend

► Infrastructure and disposal capability requires future investment

► Well positioned to build out capability & infrastructure through acquisition

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Digital & Channel Strategy

Increasing digital capability

35

Multiple digital communications and real time update development opportunities

Interface with customers through technology:

Real time etaTrack my serviceDynamic alerts and remindersPersonalised messagesDriver interactionIOT integration - Order services via voice activated search devicesAuto renewal / re-orderReactive SEO / digital marketingLaunch of e-commerce solutions

Driving more volume into the network

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Corporate SME Household (B2C)

Scheduled

Exchange

Reactive

Ser

vic

e

Self-delivered

Brokered

Part-brokered

Self-delivered

Self-deliveredPhone / account

managerComplex site

clearance

Self-deliveredOnline

TelesalesField sales

Online-BrokerTelesales

Self-deliveredOnline

Telesales

Regional acquisition

brandsSelf-delivered

Self-deliveredOnline only

Waste clearance

Click and pay

Self-delivered(Municipal

Division).co.uk

.co.uk Self-deliveredOnline only

Waste clearance

Click and pay

Self-deliveredOnline only

Waste clearance

Click and pay

Green wasteSelf-delivered

Online only

Channel Strategy

Digital Offering – Online Transactional Service

Initial phase of Biffa e-commerce and sub-brand strategy

Ad hoc waste collection service for the B2B and B2C market

Fast response van or skip service

Fully on-line transaction – ‘click & pay’

Nationwide coverage – linked to I&C depot & disposal network

Target launch: October 2019

‘The Simple way to get rid of stuff’

‘Skip it, van it, bag it’37

Growth through Acquisitions

DealsRevenueAcquired

Invested

FY14 2 £52m £32m

FY15 8 £6m £1m

FY16 8 £30m £10m

FY17 5 £19m £13m

FY18 7 £51m £47m

FY19 6 £64m £48m

FY20 2 £5m £3m

Total 38 £227m £154m

We have a clear track record of successful integration

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► Removal of duplicate routes

► Removal of duplicate locations

► Transfer Station infrastructure

► Internalising sub-contracted work

► Scale benefits for disposal costs

► Procurement efficiencies

► Back-office and management

Source of Synergies

► Well networked management team – able to source off-market deals

► Well respected by advisory community for execution track record

► Experienced M&A team

► Integration capability - able to integrate multiple deals each year

Critical Success FactorsTrack Record(Biffa Collections)

*Excludes Municipal revenues ex Cory acquisition 2017

UK network benefits from infill targets in all geographies

40

Primary Targets Looking Forward

I&C Compaction / Exchange

High synergy value

Route density – Ops cost m3

Speed of integration

Strengthens local market position

Transfer Station & Recycling infrastructure

Liberates ‘stranded’ tonnage for Biffa

EfW

Internalises recycling margin

Disposal cost protection

Waste Brokerage

Strong route density gains

Low synergy but internalises margin

Creates new routes to mark

Hazardous Waste & Source Segregated (e.g.food)

Strong cross – sell opportunity

Route density & infrastructure build

Potential for positive legislative impact

Distribution of acquisitions since 2015

Case Study

Strong regional competitor -£4.0m revenues

Strong local brand Well invested TS & Recycling

Facility Price discounter Distracted management –

business in decline No. 4 player in regional

market (Biffa No. 1)

Infill volume - route density Internalised waste transfer

capability Recycling Internalisation of sub-

contracted volumes, previously sub-optimal

Strong overhead & operational synergies

Pre-Acq Post Acq

Vehicles 15 10Ops FTE 20 9Back Office 6 1Locations 2 1

Synergy savings £0.8mPost synergy EBITDA multiple 3.5xTime to fully integrate 6 months

Target Company Profile Investment Rationale Post Integration Output

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Summary

Summary

Unparalleled National Footprint Route density across 95% UK postcodes Close to customers – Flexible 98% first time service

Market Consolidation Average 7 acquisitions pa over last 5 years Two further infill acquisitions in progress Future targets expanded to include

collections, brokers and Hazardous waste

Sector-leading Organic Growth Industry leading data & MI Growth through new channels E-commerce capability

Strong Management Team Strength in depth management team – low

attrition rate Industry leading Corporate accounts team Regional control – de-centralised

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Thank you.

Mick DavisChief Operating OfficerResources & Energy

Introduction to the Resources & Energy Division

Biffa’s Resources & Energy portfolio

47

InertsRecycling EfW developmentLandfill Gas

Key

S

tats

Treatment & disposal of contaminated inerts

Produces sands and aggregates

Provides landfill disposal for untreatable residues

Sorting and trading of dry recyclable commodities

Advanced closed loop food grade plastic recycling

Treatment of organic waste to produce compost and renewable energy

Includes long term MBT contracts at Leicester and West Sussex

Energy generation from landfill gas extraction

Net Revenue: £61.7MTonnages: 0.5MSites: 5

Treatment of general waste for energy recovery

Net Revenue: £79.2MTonnages: 0.5MSites: 8

Net Revenue: £45.5MGWh: 350Sites: 36

Net Revenue: £47.1MTonnages: 3.6M Sites: 23

Organics

Ov

erv

iew

*Gross Revenue: £120MTonnages: 750ktpaSites: 2

Quoted figures refer to the 52 week period ended 29 March 2019 *Gross Project Revenue. Biffa’s share to be incorporated as part of share of net income from JV

A reminder of Biffa’s Integrated proposition

Key to success is security of feed-stock quality and quantity

We have scale and are integrated

48

PRODUCTION

MANUFACTURING / RAW MATERIALS

BIFFAPOLYMERS

EFWUK

Plastics RecyclingPolymers

Resources & Energy:Polymers – Leading in UK plastic recycling

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Blue Planet

Consumer awareness – demand for recycled content

Brand Value – Sustainability non-negotiable

Legislation

HMRC – plastic tax

Recyclability – Extended Producer Responsibility

Public opinion and government policy are aligned

(1) Quant survey 2018, UK, CHI,INDO, FR, GER, SP, MEX

78% of consumers prefer more sustainable plastic packaging rather than choosing to abandon plastic completely1

Where the different policies for plastics sit in the waste hierarchy

StagesMost

Preferred

LeastPreferred

Prevention

Re-use

Recycling

Other recovery

Disposal

51

Ban on single use plastics

Bags for life

Closed loop mechanical recycling

Open loop mechanical recycling

Chemical recycling

Biodegradable plastics

Policy examples

52

5Process lines

63,000Tonnesinput pa

92Customers

143Full time employees

Current Operations based in Redcar

Operating from one of the most technically advanced plastic reprocessing facilities in the world, delivering solutions by converting waste plastics into high value raw materials.

Biffa PolymersRedcar

53

A Great Track Record to Build on

Completed In build

2000 ‘02 ‘04 ‘06 ’08 ‘10 ‘12 ‘14 ’16 ‘20

Pre-consumer PP processing

World’s first food grade HDPE (milk bottle) plant

Post-consumer mixed plastics processing

2nd HDPE line

’21

Extend mixed plastics capacity

PET Investments

‘18

FY00 FY08 FY16 FY19

Tonnage 6,000 24,000 52,000 63,000

Revenue £2m £10m £20m £40m

Collaboration along the entire supply chain from dairies to supermarkets

In 2008 set a target to achieve 30% recycled content by 2015

Biffa developed the world’s first food-grade standard recycling HDPE plant

Won the Queen’s Award for Enterprise Innovation in 2009

Industry standardised labels , glues and pigments to boost recycling

The result is Biffa’s recycled plastic is used in 85% of plastic milk bottles

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We pioneered a Sustainable Industry-wide Model

Delivering a True Closed-Loop Recycling Model

55

Collection SortingMixed Recycling

Hot Wash

Bales

Washed flake

Colour sort & decontamination

PelletsBlow Moulding

Supermarket

Dairy

Long-standing Customer Relationships

56

57,000Tonnes input pa

38,000Tonnes output pa

Investment Opportunity

Resources & Waste Strategy Dec 2018 :

To achieve at least 65% recycling of municipal waste by 2035

To work towards all plastics placed on the market being recyclable, reusable or compostable by 2025 and

To eliminate avoidable plastic waste over the lifetime of the 25 year plan

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Launched by WRAP in 2018

Members represent 80% of plastics packaging sold in UK supermarkets

The targets for 2025 are :

UK Government Policy is aligning with Europe and Public Sentiment

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… and this is Feeding a Huge Uplift in Demand

Growth Drivers for UK processing capacity

Extended producer responsibility boosting demand

Plastic tax

Deposit Return Schemes increasing supply

Sustainability becoming a key measure of business performance

Increasing capture rates expected to meet Government and Plastic Pact targets (66% and 70% by 2025)

Potential South East Asia ban on importing plastics

Potential UK ban on export of plastics

UK processing market could grow 3 - 5x by 2025

- 2017 based on National Packaging Waste data and Biffa recycled tonnage. - 2021 & 2025 indicative projections based on: exports declining to nil and 70% plastics recycling target achieved by 2025; total plastics volume remains constant.

New PET Bottle Recycling Facility in Seaham

60

£27.5mInvestment

57,000Tonnes input pa

1.3bn Bottlesrecycled pa

96Full time employees

BiffaPolymersSeaham

When completed Seaham will be the most modern and technically advanced PET facility in the world, converting waste plastic bottles into high purity food contact material.

£40mAnnual Revenues

Critical Success Factors

61

Biffa is uniquely positioned to succeed

Long established team

Pioneered food safety protocols in Europe

Self-delivered HDPE expansion in 2017

Flexible design to meet all end customers’ requirements

Biffa collections: 2,800 trucks

MRF network provides high quality sorted materials

Modifying MRFs to expand plastic sorting capacity

Long-standing relationships through HDPE business

Supply to blow moulders or brands directly

De-risked commercial model and long-term commitments under negotiation

Development & Operational Excellence

Control of Feedstock Trusted Offtake Partnerships

Indicative Expansion Strategy and Impact

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PP post-industrial 20,000

PP post-consumer 7,000

HDPE post-consumer 28,000

PP wash plant expansion 8,000

63,000

Operational now: Tonnes pa

PET (from FY21) 57,000

120,000

Committed and in-build (£27.5m):

Expand PP post-consumer 15,000

Expand HDPE 14,000

Expand PET 57,000

206,000

Future potential projects (£30-50m):

Medium term targets:

Revenue between £120M - £150M

Operating Profit £10M - £15M

Conclusion

Concluding Remarks

#1 in food grade recycled plastic Integrated supply chain

Market leader today

Government policy alignment and taxes Brand producers response Closed loop - highest level of recycling

Unprecedented demand

Same team Same technology Same customers

Demonstrated track record

Control of feedstock Protected margins Strength of team

De-risked business model

Developing Energy from Waste Infrastructure

Mike ThairDirector of BusinessDevelopment & Treatment

Market Overview

68

The Waste Hierarchy supports the drive away from landfill towards more beneficial recycling and recovery options

Since 2000 the UK’s environmental policies have focused on driving waste away from landfill towards more environmentally friendly recycling and recovery options

Once recycling has been maximised the next stage is to recover value from the remaining residual waste

Recovery is generally in the form of energy generation - realising the latent energy value in the materials we throw away to generate de-centralised renewable energy

For material that cannot be recycled or recovered Landfill remains the final disposal option

Market evolution supported by fiscal policy has resulted in an economic structure that supports environmental policy with disposal representing the highest cost option of managing waste.

Waste Hierarchy and Typical Cost

Waste Hierarchy & Economics – Driving recycling & diverting waste from landfill

Landfill - £110

Prevention

Re-use

Recycling

+/- £0

Other Recovery

£80-£100

Disposal

>£100

UK Waste Management – Progress

69

The UK has made substantial progress in recycling, increasing from ~10% in 2000 to 46% in 2017. Growth has now slowed and further stimulus is required to drive future increases

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

England - Household Waste Management

Recycling Recovery - EfW Landfill

Recycling

Driven by environmental and fiscal policies the UK has seen significant growth over the last 20 years

Recovery – Energy from Waste

EfW development was historically underpinned by Local Authorities and PFI contracts . Current and future development requires I&C waste and private finance

Landfill

Landfill tax has supported investment in Recycling & Recovery, reducing the UK’s reliance on landfill disposal

Source: DEFRA

Managing the UK’s residual waste

70

-

5.00

10.00

15.00

20.00

25.00

30.00

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Managing the UK’s Residual Waste (M tpa)

RDF Export Domestic EfW Capacity Residual Waste

New infrastructure to treat residual waste continues to be developed but there will continue to be a gap in capacity.

The amount of residual waste that requires managing depends on the future levels of recycling Current projections include assumed increases

in recycling performance

Domestic UK Energy from Waste (EfW) capacity treats >12M tpa (2018)

The UK currently exports approximately 3M tpa of residual waste to mainland Europe as Refuse Derived Fuel (RDF) – assumed to remain constant but may decrease over time

Despite further growth in recycling and the development of additional EfW capacity, the UK will have a persistent shortfall (c.6Mtpa) in treatment capacity

Source: Management Analysis

Developing EfW Capacity in the UK – Critical Success Factors

71

There are more than 40 operational plants in the UK processing >12mtpa. However, more than 20 further mid sized EfW plants are required to manage the UK’s residual waste – this represents an investment of more than £6bn. Critical to unlocking a development project are:

Control of Site: Proximity to waste arisings Planning Permission Environmental Permit

Control of Waste: Agregated volumes to support investment Stong balance sheet to support contractual commitment

Supply Chain: Proven technology with supporting performance guarantees Robust operator to maximise performance with proven technical capacbility

The Opportunity

Two opportunities have been developed to invest in EfW infrastructure

Located just off the M1 at junction 23 in Leicestershire

Annual capacity – 350ktpa of residual household and I&C waste

Biffa contracting to supply – 70% (245ktpa)

Construction Cost £285-£295m*

ProtosNewhurst

Development Opportunity – 750,000 tonnes per annum of robust, proven and reliable capacity

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Located at Ince Marshes near Ellesmere Port in Cheshire

Annual capacity – 400ktpa of residual household and I&C waste

Biffa contracting to supply – 61% (245ktpa)

Construction Cost £325-£335m*

* Excluding finance costs

Located in Shepshed (Leicestershire), Newhurst is immediately accessed from junction 23 of the M1

The site is owned by the Garendon Estate and was historically leased by Hanson for the extraction of mineral

Planning Permission & Environmental Permit granted

Newhurst – A former quarry located immediately off the M1 in Leicestershire

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Newhurst Key Metrics

Construction Cost £285-£295m

Leverage 70-75%

Biffa Equity (50%) £40-£45m

Biffa Group level IRR (post-tax) Mid-High Teens

Located in Ince near Ellesmere Port (Cheshire) the site is well located to serve Liverpool and Manchester with access from the M56

The Site (including the wider Protos estate) is owned by Peel.

Planning Permission and Environmental Permit granted

Protos – A green field site located near Ellesmere Port in Cheshire

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Key Metrics

Construction Cost £325-£335m

Leverage 60-70%

Biffa Equity @ 25% £30-£35m

Biffa Group level IRR (post-tax) Mid-High Teens

Partnership – Biffa has selected strong partners for the delivery Newhurst and Protos

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EPC (Engineering, Procurement & Construction) Turnkey Contract for the design, construction, commissioning and

testing of the facility

O&M (Operations and Maintenance) Provided by Covanta for a minimum term of 20 years

FSA (Fuel Supply Agreement) Provided by Biffa for a minimum term of 20 years

Sponsors Biffa will control 50% of the Newhurst Project alongside Covanta

and GIG

Protos – Biffa will control 25% - preferred investor identified to match Biffa’s 25%

Non-Recourse Project Finance Borrowed by ProjectCo for the sole purpose of funding construction

ProjectCo

EPC O&M FSA

Covanta Green

50%

50%50%

50%

Sponsors:

Non-Recourse Project Finance

EPC – Proven contracting structure for EfW and Project Finance

77

EPC (Engineering, Procurement & Construction)

Turnkey Contract for the design, construction, commissioning and testing of the facility

Fixed price, fixed programme contract with full responsibility for the performance of the plant through testing including ongoing availability tests

ProjectCo

EPC O&M FSA

Risk Mitigation Allocation

Capital Cost Increase Fixed price at financial closeFX HedgedVariations by approval – cost benefit analysis

EPC

Delay Fixed programme to completionLDs payable for delay

EPC

Performance Guaranteed performance including availability, throughput and electricity generation backed by performance bond and LDs EPC

Operation & Maintenance – Provided by a leading global EfW Operator

78

ProjectCo

EPC O&M FSA

O&M (Operations and Maintenance)

Provided by Covanta for a minimum term of 20 years Covanta operate 44 EfW facilities and process over 20m tpa Covanta employs over 4,000 people Market Cap $2.3bn

Full responsibility to operate and maintain the plant to agreed standards

Risk Mitigation Allocation

Cost Increase Variable (volume) and fixed price cost payment mechanism O&M

Health, Safety & Environment Contract obligation to comply with all legislation including environmental consents O&M

Performance Guaranteed performance including availability, throughput and electricity generationO&M

Fuel Supply

79

ProjectCo

EPC O&M FSA

FSA (Fuel Supply Agreement)

Provided by Biffa for a minimum term of 20 years

245,000 tonnes per annum per project

Competitive rate to ensure ‘better than market’ disposal solution

‘Put or Pay’ provisions for failure to supply

Volumes supplied from Biffa’s regional collection depots and transfer stations

Spare capacity available to tender forthcoming Local Authority Contracts and maximise revenue through spot market rates

Financial Summary – Project Level

80

Project Co. Worked Example

P&L (£m) FY25 FY29

Total Revenues 58 66

O&M (19) (21)

SPV Costs (5) (5)

Gross profit 34 40

Lifecycle (2) (3)

Depreciation (11) (11)

Net interest expense (10) (9)

Profit before Tax 11 18

Tax (3) (3)

Net Income 8 14

O&M Contract represents 81% of annual operational costs

Both O&M and Lifecycle costs fixed

* Excluding finance costs

Construction Cost - Worked Example

Uses %

Civils 29%

Process Equipment 23%

Mechanical & Electrical 13%

Spares 1%

General Project Costs 15%

Grid Connection 2%

ProjectCo Costs 8%

Lease Premium 4%

Construction / Project Management 3%

Fixed O&M Costs 2%

Mobile Equipment, IT, Outfitting 1%

Total* 100%

EPC Package – fixed price & fixed programme

EPC Cost equates to 81% of the total

Biffa will include its percentage share of profit after tax in its

results

Gate fees represent 2/3 of revenue

Contracted and inflation linked

Interest rates hedged at financial close

Biffa I&C Volumes – Strategy and delivery

81

Biffa has actively secured disposal capacity in domestic EfW over recent years. The combination of existing contracts and future developments delivers long term security combined with future flexibility

Biffa expects to continue to control more than 1.7mtpa of suitable material for treatment in EfW – signed and future disposal contracts account for 60% of Biffa’s suitable tonnage

Based on the signed and future Fuel Supply contracts, Biffa will be the UKs largest supplier of fuel to EfW

On completion of disposal contracts currently in negotiation (including Newhurst and Protos) Biffa will have secured 60% of its I&C tonnages to long-term EfW supply contracts

This commitment underpins the I&C operation on a national level and represents a suitable blend of committed tonnage and future flexibility

23%

14%

14%9%

40%

Biffa Volume

Contracted Volume Newhurst Protos Future EfW Uncontracted

Conclusion

Attractive projects delivering strategic needs

83

There is a clear need for more infrastructure in the UK to meet current and future needs

The Newhurst and Protos EfW projects offer attractive investment opportunities delivering a Biffa Post Tax IRR of mid-high teens for a £70-£80m investment

Access to EfW underpins our I&C business and supports continued growth

Both facilities expected to be operational in 2023

Future opportunities to refinance / recycle capital for further investment

Thank you.

Richard PikeCFO

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 10311090

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 FY20Analyst

ConsensusNet Revenue Underlying EBIT

FY20 Company compiled consensus includes £2m impact of IFRS16

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*

Dividendgrowth

through improving

profitability

Collections acquisitions Energy from Waste

Plastic recycling solutions

Investment Priorities

* pre IFRS 16 measures as per banking covenants

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

Thank you.

Panel Discussion

CEO Summary and Q&A

In Summary…

Market presence

Services & infrastructure

Systems & processes

Three pillars… Vision

Grow

Develop

Optimise

92

Clear market Leader in Collections

Organic Growth above market

>£100m invested in acquisitions

Unparalleled scale driving sector leading margins

Larger, diversified and de-risked Resources & Energy business

Leading Polymer Processor, £120m - £150m revenues

Growing earnings from Energy from Waste assets

Unrivalled leadership in sustainability

Underpinned by supportive government legislation

Q&A

Thank you.