GHH - GEORGE H HOFFMAN - MANAGEMENT CONSULTANTS

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WORLD TEXTILE RENTAL CONGRESS

LONDON 4 OCTOBER 2001

THE STATE OF THE CONTINENTAL EUROPEAN TEXTILE RENTAL MARKETS

GHH - GEORGE H HOFFMAN - MANAGEMENT CONSULTANTS

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MAIN MARKET TRENDS

MODERATE TO STRONG GROWTHINCREASING INDUSTRY CONCENTRATIONSPECIALISATION AND DIVERSIFICATIONGROWTH OF A EUROPEAN INDUSTRY

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Moderate to Strong Growth

By country and region:1. More mature markets:

Germany, France, UK, BeneluxScandinavia, Finland, Austria, Ireland

2. Less mature markets:Italy, Spain, Portugal, Greece

3. New marketsCentral and Eastern Europe

By products

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Increasing Industry Concentration

Very Fragmented: Italy, Spain, Eastern

Europe

Fragmented: Germany

Concentrated: France, UK, Benelux,

Scandinavia,Austria, Finland

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Specialization and Diversification

1. Workwear and Uniforms: Elis, Boco, Johnson, Mewa, DBL, Bardusch, Steiner

2. Linen: Sunlight/Spring Grove,100’s of smaller companies

3. Healthcare: Sophus Berendsen, Rentex4. Hygiene: CWS, Rentokil Initial5. Mats: No one6. Wipers: Mewa

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Growth of a European Industry

1.Mainly national markets, with textile rental companies driving the consolidation process.

2.Some markets are merging: Scandinavia;Benelux; UK and Ireland; Spain and Portugal;Germany, Austria and Switzerland;Germany and France;Northern Italy and Germany

3.The emergence of a few major European companies.

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21 EUROPEAN MARKETSOECD COUNTRY AND ECONOMIC STATISTICS15 EU COUNTRIES, NORWAY,SWITZERLAND, CZECH REPUBLIC,

HUNGARY, POLAND, SLOVAK REPUBLIC, USA

COUNTRY AREA POP EMPLOYED GDP-2000 GDP per cap-2000(000 SQ KM) (1999-MILL) (1999-MILL) (PPP $ MILL) (PPP $000)

GERMANY 357 82.1 40 2,048 24.9UK 245 59.5 29.2 1,431 23.9FRANCE 549 59.1 26.1 1,403 23.2ITALY 301 57.1 23.5 1,414 24.5SPAIN 505 39.4 16.6 763 19.3

NETHERLANDS 41 15.8 8 437 27.5GREECE 132 10.5 4.5 169 16BELGIUM 31 10.2 4.4 269 26.3PORTUGAL 92 10 5.1 176 17.6SWEDEN 450 8.9 4.4 217 24.4AUSTRIA 84 8.1 3.9 211 26

DENMARK 43 5.3 2.9 151 28.3FINLAND 338 5.1 2.6 129 24.9IRELAND 70 3.7 1.7 108 28.5LUXEMBOURG 3 0.3 0.2 20 45

EU15 3,240 375.4 173 46% 9,007 23.5

NORWAY 324 4.5 2.3 132 29.4SWITZERLAND 41 7.1 4 216 30.1CZECH REPUBLIC 79 10.3 5.2 144 14HUNGARY 93 10.1 4.1 122 12.2POLAND 313 38.7 17.3 359 9.3SLOVAK REPUBLIC 49 5.4 2.6 61 11.4

USA 9,372 272.9 140.6 51.5% 9,927 36

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ETRA MARKET STATISTICS - 1995COUNTRY TOT TR SALES($MILL) TR SALES PER 1,000 POP($)

GERMANY 1,350 16,500UK 1,070 18,230FRANCE 1,067 18,318ITALY 619 10,799NETHERLANDS 411 26,540

SWEDEN 278 31,453DENMARK 257 48,989SPAIN 240 6,116BELGIUM 210 20,704AUSTRIA 198 24,628

FINLAND 80 15,550IRELAND 75 20,799GREECE 70 6,660LUXEMBOURG 10 23,753PORTGUAL 9 879

NORWAY 55 12,471SWITZERLAND 312 44,143

USA 9,000 33,583

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8 MAJOR EUROPEAN TEXTILE SERVICE MARKETS

(estimates in € millions for 2000)

GERMANY BRITAIN FRANCE ITALY SCAND HOLLAND SPAIN BELG

TURNOVER 1,800 1,250 1,200 650 550 455 400 225

GROWTH RATE 6% 4% 4% 3% 2% 3% 5% 3%

GHH - George H Hoffman - Management Consultants

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10 MAJOR EUROPEAN TEXTILE SERVICE COMPANIESTurnover in € Millions, 2000 (€ 1= £0.63)NOTE: Where not published, the figures have been obtained from the company or are estimates.

TEXTILE SERVICE GROUPCOMPANY TURNOVER (a) TURNOVER WITH OPERATIONS IN:

ELIS 1,020 1,020 F;USA; B; E; P;D;CH;I;L

RENTOKIL INITIAL 980 3,280 GB;F;B;NL;CZ;D;PL;E

HANIEL TEXTILE SERVICES 555 18,741 CWS:20+ COUNTRIES(FRANZ HANIEL & CIE) BOCO:D;B;PL;CH;SK

SOPHUS BERENDSEN 460 460 DK;S;N;D;NL;B;PL;EST

SUNLIGHT/SPRING GROVE 375 748 GB;IRL;D;F(DAVIS SERVICE GROUP)

MEWA 281 281 D;A;CH;I;F;B;E;CZ;SK

JOHNSON SERVICE GROUP 235 350 GB;IRL

BARDUSCH 158 158 D;CH;F;PL;E;BR;ZA;UNG;T

LINDSTROM, FINLAND 119 119 FIN;EST;LAT;LIT;UNG;CZ;SK;SL;RUSS

ALSCO, GERMANY 102 1,020 USA;CAN;AUST;NZ;BR;D;I(STEINER CORP., USA)

a) some companies do not produce textile service figures alone. Some figures include non-textile services. GHH - George H Hoffman - Management Consultants

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AND THEIR PRODUCT SECTORSATTENTION: SOME OF THESE FIGURES ARE ESTIMATES

COMPANY Textile Services Turnover PRODUCTS & EST %€ Million workwear hospital linen other

Elis 1,020 60 10 10 20

Rentokil Initial 980 30 20 20 30

Haniel Textile Services 555 35 0 0 65

Sophus Berendsen 460 25 50 15 10

Sunlight (SpringGrove) 375 35 15 40 10

Mewa 281 45 10 0 45

Johnson Group 235 65 0 20 15

Bardusch 158 55 20 10 15

DBL 147 65 5 25 5

Lindstrom 119 45 0 20 35

Alsco 102 60 0 15 25

GHH - George H Hoffman - Management Consultants

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MAJOR GERMAN TEXTILE SERVICE COMPANIES AND GROUPSTurnover in € millions for 2000ATTENTION: some of these figures are estimates.

TURNOVER GROUP TEXTILE GERMAN NUMBER OFCOMPANIES GERMANY SERVICE TURNOVER PLANTS/DEPOTS MEMBERS

HANIEL TEX. SERV. 340 555 39

MEWA 200 281 29

BARDUSCH 120 158 31

SOPHUS BERENDSEN 112 460 10

ALSCO (Steiner Corp.) 102 1,020 17

INITIAL (Rentokil Initial) 85 980 10

LAROSÉ 68 68 12

FRANCHISE ANDMARKETING GROUPS

DBL 147 147 23 15

RENTEX 95 95 32 27

PROFITEX 82 107 14 10

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GHH – GEORGE H HOFFMANMANAGEMENT CONSULTANTS

P.O. BOX 71GUILDFORD, SURREYGU3 3XYENGLAND

TELEPHONE: 44-1483-306820FAX: 44-1483-306828E-MAIL: ghhoffman@gmail.comWEBSITE: WWW.GEORGEHHOFFMAN.COM