Serco Group Plc (SRP:LN)

Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Business Description and Key Statistics

Serco Group is a provider of public services. Co.'s core sectors Current YTY % Chg include: Defense, which includes base and operational support, engineering, management and information services, and nuclear, Revenue LFY (M) 3,885 19.6 space and maritime services; Justice and Immigration, which EPS Diluted LFY 0.11 153.4 includes custodial services, immigration detention services, and detainee transport and monitoring; Transport, which includes rail, Market Value (M) 1,706 ferry and cycle operations, road traffic management, and air traffic control; Health, which includes facilities management and patient Shares Outstanding LFY (000) 1,226,344 administration and contact; and Citizen Services, which includes Book Value Per Share 0.58 contact centers and case management, middle, back office and IT services, and employment and skills services. EBITDA Margin % 7.70 Net Margin % 3.3 Website: www.serco.com Long-Term Debt / Capital % 29.5 ICB Industry: Industrials Dividends and Yield TTM 0.01 - 1.01% ICB Subsector: Professional Business Support Services Payout Ratio TTM % 9.4 Address: Serco House;16 Bartley Wood Business Park;Bartley Way 60-Day Average Volume (000) 2,733 Hook 52-Week High & Low 145.80 - 106.60 GBR Employees: 45,330 Price / 52-Week High & Low 0.95 - 1.30

Price, Moving Averages & Volume

147.8 147.8 Serco Group Plc is currently trading at 139.10 which is 0.5% above its 50 day moving 142.4 142.4 average price of 138.41 and 4.4% above its 200 day 137.0 137.0 moving average price of 133.20.

131.6 131.6 SRP:LN is currently 4.6% below its 52-week high price of 145.80 and is 30.5% above its 126.2 126.2 52-week low price of 106.60. Over the past 52-weeks, 120.8 120.8 SRP:LN is up 9.9% while on a calendar year-to-date basis it is up 16.4%. 115.4 115.4 The Relative Strength Index (RSI) indicator for SRP:LN is 110.0 110.0 currently 56.16. An RSI value of 70 and above is considered 104.6 104.6 overbought and 30 and below 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 oversold. Volume (000) 16,486 16,486

12,401 12,401

8,317 8,317

4,232 Mean (3143.54) 4,232

148 148 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21

Price Price (50-Day Simple Moving Average) Price (200-Day Simple Moving Average)

Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Price Performance, Technical Indicators & Risk Metrics

Difference Price Performance % Change vs FTSE 350 Technical Indicators 1-Day % -0.64 -1.95 50-Day Average Price 138.41 1-Week % 3.04 2.01 Price / 50-Day Average 1.00 4-Week % 3.81 4.40 200-Day Average Price 133.20 52-Week % 9.87 -13.50 Price / 200-Day Average 1.04 RSI - Relative Strength Index 56.16 Quarter-to-Date % 2.51 0.89

Year-to-Date % 16.40 5.65 Risk Metrics Last Month % -5.73 -7.65 Price Volatility 2.27 Last Quarter % -1.38 -6.05 Sharpe Ratio 0.03 Last Calendar Year % -26.19 -13.20 Sortino Ratio 0.05

5-Year Price Performance vs. FTSE 350

Serco Group Plc Current: 1.06 CAGR: 1.3% Over the past five years, Serco FTSE 350 Index Current: 1.19 CAGR: 3.5% Group Plc's stock price is up 6.4% which is 12.6% below 1.3 1.3 the FTSE 350 Index performance of 19.0% over the same period. Serco Group 1.3 1.3 Plc's cumulative annualized growth rate (CAGR) over the 1.2 1.2 five year period has been ^NMX:LN 1.3% while that of the FTSE 350 Index has been 3.5%. 1.1 1.1 Over the past year, Serco Group Plc's stock price 1.1 1.1 SRP:LN performance of 9.9% has underperformed that of the 1.0 1.0 FTSE 350 Index by 13.5%. On a year-to-date basis, Serco Group Plc's stock price 1.0 1.0 performance of 16.4% has underperformed the FTSE 0.9 0.9 350 Index by 5.6%. Over the past week, Serco 0.8 0.8 Group Plc's stock price performance of 3.0% has outperformed that of the FTSE 0.8 0.8 350 Index by 2.0%.

0.7 0.7

0.6 0.6 2016 2017 2018 2019 2020 2021 2022

Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Growth and Profitability Metrics

5-Year 10-Year Historical Growth 3-Year 5-Year 10-Year Profitability Current Average Average Revenues % 9.6 4.1 -1.1 Gross Margin % 9.9 9.3 9.6 Revenues Per Share % 7.0 -9.8 -9.6 EBITDA Margin % 7.7 3.8 0.4 EBITDA % 78.2 77.0 -0.8 Pre-Tax Margin % 3.6 1.1 -2.3 EPS Diluted % 999.9 999.9 -10.2 Net Margin % 3.3 1.2 -2.1 Free Cash Flow % 999.9 999.9 -7.7 Return on Equity % 22.3 9.3 -1.7 Cash from Operations % 999.9 999.9 1.1 Return on Capital % 15.3 6.0 -5.3 Book Value % 27.8 17.9 -10.2 Return on Assets % 6.0 2.3 -2.9

Revenue (M) Serco Group Plc's cumulative annualized revenue growth Current: 3884.80 Median: 3011.00 High: 3884.80 Low: 2836.80 CAGR: 6.6% rate over the charted period is 4,094.4 4,094.4 3,884.8 6.6%. This compares to cumulatative annualized 3,657.7 3,657.7 growth of 9.6% over the past 3 3,248.4 years. 3,221.1 3,221.1 3,011.0 2,953.6 2,836.8 2,784.4 2,784.4 2016 2017 2018 2019 2020 2021 Serco Group Plc's cumulative EPS Diluted annualized EPS growth rate Current: 0.11 Median: 0.04 High: 0.11 Low: 0.00 CAGR: 0.0% over the charted period is 0.13 0.13 0.0%. This compares to 0.11 cumulatative annualized 0.09 0.09 growth of 999.9% over the 0.06 past 3 years. 0.04 0.04 0.04

0.00 0.00 0.00 0.00 2016 2017 2018 2019 2020 2021

Net Profit Margin % Serco Group Plc's net profit margin of 3.3% is 2.1% above Current: 3.33 Median: 1.58 High: 3.33 Low: -1.28 CAGR: 0.8% the period's mean net margin 3.6 3.6 of 1.2%. During the charted period, the observed net profit 1.9 Mean (1.24) 1.9 margin high and low were 3.3% and -1.3% respectively. 0.2 0.2

-1.5 -1.5 2016 2017 2018 2019 2020 2021 Serco Group Plc's return on Return on Equity % equity of 22.3% is 13.0% Current: 22.30 Median: 12.30 High: 22.30 Low: -15.50 CAGR: 4.8% above the period's mean 24.2 24.2 return on equity of 9.3%. During the charted period, the 10.3 Mean (9.27) 10.3 observed ROE high and low were 22.3% and -15.5% respectively. -3.5 -3.5

-17.4 -17.4 2016 2017 2018 2019 2020 2021

Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Valuation Metrics

5-Year 10-Year 5-Year 10-Year Current Median Median Current Median Median

Price / EPS TTM 13.0 29.1 29.1 Earnings Yield % 7.90 3.09 3.10

Price / Sales 0.4 0.4 0.4 Free Cash Flow Yield % 13.44 0.00 0.00

Price / Operating Cash Flow 6.4 12.6 12.7 Dividend Yield % 1.01 0.00 0.72

Price / Book Value 2.4 3.3 3.1 Enterprise Value / EBITDA 5.9 14.2 15.0

Price / EPS TTM Serco Group Plc is trading at 13.04 times its EPS generated Current: 13.04 Median: 29.07 High: 99.90 Low: 10.98 CAGR: -33.5% during the latest fiscal year. 104.3 104.3 This multiple is below the historically observed median 71.7 71.7 of 29.07, while high and low observations have been 99.90 and 10.98. 39.1 Median (29.07) 39.1

6.5 6.5 2016 2017 2018 2019 2020 2021 Price / Sales Serco Group Plc is trading at a Price to Sales ratio of 0.43 Current: 0.43 Median: 0.43 High: 0.59 Low: 0.32 CAGR: 4.8% based on sales generated 0.60 0.60 during the latest fiscal year. This ratio is equal to the 0.50 0.50 historically observed Price/ Sales ratio of 0.43, while high Median (0.43) and low observations have 0.41 0.41 been 0.59 and 0.32.

0.31 0.31 2016 2017 2018 2019 2020 2021 Serco Group Plc is trading at a Price / Book Value Price to Book ratio of 2.39 Current: 2.39 Median: 3.28 High: 5.61 Low: 2.01 CAGR: -14.2% based on book value at the 5.8 5.8 latest fiscal year end. This ratio is below the historically observed median of 3.28, 4.5 4.5 while high and low observations have been 5.61 Median (3.28) 3.1 3.1 and 2.01.

1.8 1.8 2016 2017 2018 2019 2020 2021 Serco Group Plc has a Free Free Cash Flow Yield % Cash Flow Yield of 13.44% Current: 13.44 Median: 0.00 High: 15.95 Low: 0.00 CAGR: 2.6% based on free cash flow 16.7 16.7 generated during the latest fiscal year. This value is above the historically observed 10.9 10.9 median yield of 0.00%, while high and low observations 5.1 5.1 have been 15.95 and 0.00.

Median (0.00) -0.8 -0.8 2016 2017 2018 2019 2020 2021

Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Dividends Data

Dividends Per Share TTM 0.01 Payout Ratio TTM % 9.37% Dividend Yield TTM % 1.01%

Rate Ex Date Record Date Payment Date Currency Note 0.014 13-05-2021 14-05-2021 04-06-2021 GBP FINAL GROSS 0.010 14-05-2020 15-05-2020 05-06-2020 GBP BOARD WITHDRAWING RESOLUTION AUTHORISING PAYMENT OF FINAL DIVIDEND

Dividend Growth and Yield

Dividends Per Share TTM Serco Group Plc's trailing 12- month dividend per share is Current: 0.01 Median: 0.00 High: 0.01 Low: 0.00 CAGR: 0.0% 0.01 and its dividend has 0.011 0.011 grown at a cumulative annualized rate of 0.0% over 0.009 0.009 the charted period. This compares to dividend growth 0.007 0.007 of 40.00% over the past year and cumulative annualized growth of % over the past 3 0.005 0.005 years.

0.003 0.003

0.001 0.001

0.000 0.000 2016 2017 2018 2019 2020 2021

Dividend Yield TTM % Serco Group Plc's current dividend yield is 1.01% based Current: 1.01 Median: 0.00 High: 1.06 Low: 0.00 CAGR: 0.2% on trailing 12 month 1.11 1.11 dividends. The current yield is above the historically observed 0.92 0.92 median of 0.00% and, over the charted time period, the 0.72 0.72 observed high yield has been 1.06% and the observed low yield has been 0.00%. 0.53 0.53

0.34 0.34

0.14 0.14

-0.05 -0.05 2016 2017 2018 2019 2020 2021

Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 ICB Subsector Peer Comparisons

Price Change Year to Date % Price Change Last Calendar Year % -25.4 -5.5 14.3 34.2 54.1 -32.2 -20.5 -8.8 2.9 14.6

CPPGroup Plc 50.5 Rentokil Initial Plc 12.5

Inchcape PLC 31.2 Experian Plc 8.8 RWS Holdings Plc 22.2 Intertek Group Plc -3.5 Experian Plc 20.2 Peer Group Average -8.6 Rentokil Initial Plc 19.8 Inchcape PLC -8.8 Serco Group Plc 16.4 RWS Holdings Plc -12.0 Peer Group Average 15.0 Euromoney Institutional Investors Plc -18.1 Euromoney Institutional Investors Plc -3.9

Intertek Group Plc -6.1 IWG PLC -21.2

IWG PLC -15.2 Serco Group Plc -26.2

-25.4 -5.5 14.3 34.2 54.1 -32.2 -20.5 -8.8 2.9 14.6

Price / EPS TTM Price / Book Value 0.0 26.1 52.1 78.2 104.2 0.0 13.1 26.2 39.2 52.3

NRC Group ASA 99.9 CPPGroup Plc 49.9 CPPGroup Plc 99.9 Experian Plc 13.7 Inchcape PLC 99.9 Rentokil Initial Plc 11.3 IWG PLC 99.9 Peer Group Average 9.5 Peer Group Average 58.1 Intertek Group Plc 8.8 Experian Plc 52.5 IWG PLC 5.7 Rentokil Initial Plc 40.1 RWS Holdings Plc 4.4 RWS Holdings Plc 38.8 Inchcape PLC 3.1 Euromoney Institutional Investors Plc 35.6 Serco Group Plc 2.4 Intertek Group Plc 34.8 Euromoney Institutional Investors Plc 2.2 DKSH Holding Ltd 24.3 DKSH Holding Ltd 2.2 Serco Group Plc 13.0 NRC Group ASA 1.5 0.0 26.1 52.1 78.2 104.2 0.0 13.1 26.2 39.2 52.3

EPS 5-Year Growth Rate % Revenue 5-Year Growth Rate % -270.5 62.2 395.0 727.7 1,060.4 -11.6 4.0 19.6 35.2 50.7

Serco Group Plc 999.9 NRC Group ASA 47.9 Intertek Group Plc 999.9 RWS Holdings Plc 30.2 Peer Group Average 158.9 Peer Group Average 10.8 CPPGroup Plc 49.7 Rentokil Initial Plc 9.3 RWS Holdings Plc 18.3 IWG PLC 5.2 Experian Plc 3.2 CPPGroup Plc 4.9 Rentokil Initial Plc 1.2 Intertek Group Plc 4.8 DKSH Holding Ltd -5.1 Experian Plc 4.3 Euromoney Institutional Investors Plc -19.2 NRC Group ASA -100.0 Serco Group Plc 4.1 Inchcape PLC -100.0 DKSH Holding Ltd 1.2 IWG PLC -100.0 Euromoney Institutional Investors Plc -3.6 -270.5 62.2 395.0 727.7 1,060.4 -11.6 4.0 19.6 35.2 50.7

Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Abbreviations: CAGR - Cumulative annual growth rate. EBIT - Earnings before interest and taxes. EBITDA - Earnings before interest, taxes, depreciation & amortization. LFY - Last fiscal year M - Million LON - London Stock Exchange

Definitions: Market Value - Weekly Price times latest Shares Outstanding times any applicable ADR factor. Revenue - Sum of the last four quarters of Revenues. Revenue Per Share - Sum of the last four quarters of Total Revenue divided by Weighted Average Shares Outstanding. Operating EPS LFY - EPS excluding non-recurring, non-operating items, fiscal year aligned TTM value. 60-Day Average Volume (000) - The average of the last 60 daily volume values in thousands of shares. Price 52-Week High - The high closing price from the last 52 weeks of daily closing prices. Price 52-Week Low - The low closing price from the last 52 weeks of daily closing prices. Price / 52-Week High - Latest price divided by the high price from the past 52 weeks of daily closing prices. Price / 52-Week Low - Latest price divided by the low price from the past 52 weeks of daily closing prices. 50-Day Average Price - Mean of last 50 daily closing prices. 200-Day Average Price - Mean of last 200 daily closing prices. Price / 50-Day Average Price - Latest closing price divided by mean of last 50 daily closing prices, as a percentage. Price / 200-Day Average Price - Latest closing price divided by mean of last 200 daily closing prices, as a percentage. Relative Strength Index - Relative Strength Index or RSI measures the magnitude of gains over a given time period against the magnitude of losses over that period. The equation is RSI = 100 - 100 / (1 + RS) where RS = (total gains / n) / (total losses / n) and n = number of RSI periods. In this item, 14 days is used and one year of daily prices are considered. A value of 30 or below may imply oversold and 70 or above may imply overbought. Price Volatility - The standard deviation of the last 20 days of daily closing prices. Sharpe Ratio - The 5 year average of the excess monthly return over the risk - free rate(1 - month T - bill) over the 5 year standard deviation of the same series. Sortino Ratio - The same calculation as the Sharpe Ratio but with positive excess returns set to zero for the standard deviation denominator, so only negative volatility weighs in. Dividends Per Share TTM - Sum of the last four quarters of Dividends Per Share. Payout Ratio - Dividends Per Share TTM divided by Operating EPS TTM. Dividend Yield TTM % - Sum of the last four quarter of Dividends Per Share divided by Weekly Price. EBITDA - Sum of the last four quarters of EBITDA (Operating Income + Depreciation & Amortization). Free Cash Flow - Sum of the last four quarters Net Cash from Operations minus Capital Expenditures (Purchase of Property, Plant & Equipment), from the Cash Flow Statement. Book Value Per Share - Total Common Equity last quarter divided by Shares Outstanding last quarter. Gross Margin % - Sum of the last four quarters Gross Profit divided by the sum of the last four quarters Revenues. EBITDA Margin % - Sum of the last four quarters EBITDA divided by the sum of the last four quarters Revenues. Pre-Tax Margin % - Sum of the last four quarters of Earnings Before Taxes divided by sum of the last four quarters Revenues. Net Profit Margin % - Sum of the last four quarters of Operating EPS divided by sum of the last four quarters Revenues Per Share. Return on Equity % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Book Value. Return on Capital % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Capital Per Share. Return on Assets % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Assets Per Share. Price / EPS TTM - Weekly Price divided by the sum of the last four quarters of Operating EPS (capped at 99.9). Price / Sales - Weekly Price divided by Revenues Per Share TTM. Price / Book Value - Weekly Price divided by Book Value Per Share last quarter. Book Value Per Share is Total Common Equity last quarter divided by Shares Outstanding last quarter (capped at 49.9). Free Cash Flow Yield % - Free Cash Flow Per Share TTM divided by Weekly Price. Enterprise Value - Market Value plus Total Debt last year plus Preferred Equity last year minus Cash & Cash Equivalents last year. Enterprise Value / Sales - Enterprise Value divided by the sum of the last four quarters of Revenue. Enterprise Value / EBITDA - Enterprise Value divided by EBITDA TTM. Enterprise Value / EBIT - Enterprise Value divided by trailing four quarters of Operating Income. Enterprise Value / Free Cash Flow- Enterprise Value divided by the sum of the last four quarters of Free Cash Flow. Russell 1000 Index - The largest 1,000 stocks by market cap, the index comprehensively covers the US large cap universe. EPS 5-Year Growth Rate % is capped at 999.9%. Revenue 5-Year Growth Rate % is capped at 999.9%.

Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021

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