Speedy Hire Plc Maintaining A Consistent Strategy Interim results for the six months ended September 2013
Legal Disclaimer This presentation has been prepared to inform investment Nothing contained within this presentation or communicated professionals about Speedy Hire Plc (‘Speedy’), and does verbally should be construed as a profjt forecast or profjt not constitute an offer of securities or otherwise constitute estimate. Speedy undertakes no obligation to publicly update an invitation or inducement to any person to underwrite, or revise any forward-looking statement, whether as a result of subscribe for or otherwise acquire securities in Speedy or any new information, future events or otherwise. of its subsidiary companies. Some of the factors which may adversely impact some of these The presentation and information communicated verbally to you forward-looking statements are discussed in Speedy’s audited may contain projections and other forward-looking statements results for the year ended 31 March 2013 under ‘Principal risks that are necessarily subject to risks and uncertainties, because and uncertainties’. they relate to future events. Our business and operations are subject to a variety of risks and uncertainties, many of which are This presentation contains supplemental non-GAAP fjnancial beyond our control and, consequently, actual results may differ and operating information that Speedy believes provides useful materially from those expressed or implied by any forward- insight into the performance of the business. looking statements and projections. Whilst this information is considered as important, it should be viewed as supplemental to Speedy’s fjnancial results prepared Although Speedy currently believes that the assumptions in accordance with International Financial Reporting Standards underlying these forward-looking statements are reasonable, and not as a substitute for them. any of the assumptions could prove inaccurate or incorrect and therefore can be no assurance that any results contemplated in the forward-looking statements will actually be achieved. 2
Agenda Financial Performance Year to Date Lynn Krige, Group Finance Director Building Momentum for the Future Steve Corcoran, Chief Executive Network Reconfjguration Update Lynn Krige, Group Finance Director Questions and Answer Session 3
Lynn Krige, Group Finance Director Financial Performance Year to Date
Financial Highlights Six months to 30 September 2013 2012 Change £m £m Revenue 169.1 0.4% 169.8 EBITDA 33.6 (2.7%) 32.7 EBITDA % 19.3% 19.9% EBITA 10.2 10.4 (1.9%) EBITA % 6.0% 6.2% PBT* 6.8 6.6 3.0% Adjusted earnings per share* 1.12p 1.10p 1.8% Dividend per share 0.26p 0.22p 18% * Pre amortisation ! Solid performance in a challenging UK environment 5
Financial Position As at 30 September 2013 2012 Change £m £m Property, plant & equipment 259.9 250.8 3.6% Debtor days – UK & Ireland 63.4 days 69.2 days Bad debt charge as a % of revenue 1.51% 1.58% Net debt 79.3 82.6 Gearing 32.9% 35.4% Net debt: EBITDA 1.09x 1.23x Shareholders’ funds 233.2 3.3% 241.0 Net asset value per share 46.5p 45.0p 3.3% ROCE 7.6% 7.0% ! Strong balance sheet - Fit for the future 6
Segmental Analysis - UK & Ireland Six months to 30 September 2013 2012 Change EBITDA margin £m £m Revenue 158.8 160.6 (1.1%) EBITDA 32.9 34.2 (3.8%) 21.3% EBITDA % 20.7% 21.3% 20.7% EBITA 13.1 13.8 (5.1%) 30 Sept 2013 30 Sept 2012 EBITA % 8.2% 8.6% NBV of property, plant & equipment 225.9 220.7 2.4% Net capital expenditure 35.2 24.8 41.9% EBITA margin Depreciation 19.8 20.4 (2.9%) Average age of hire fleet (years) 4.2 4.1 8.6% 8.2% 30 Sept 2013 30 Sept 2012 ! Operational effjciencies continue; Margins impacted by revenue mix 7
Segmental Analysis - International Six months to 30 September 2013 2012 Change EBITDA margin £m £m Revenue 11.0 8.5 29.4% 28.2% EBITDA 2.6 2.4 8.3% 23.6% EBITDA % 23.6% 28.2% EBITA 0.4 0.3 33.3% 30 Sept 2013 30 Sept 2012 EBITA % 3.6% 3.5% NBV of property, plant & equipment 34.0 30.1 13.0% EBITA margin Net capital expenditure 4.6 7.4 Depreciation 2.2 2.1 4.8% Average age of hire fleet (years) 2.1 1.5 3.6% 3.5% 30 Sept 2013 30 Sept 2012 ! Secured contacts underpin long-term growth 8
Cash Flow Group excluding International International 90 0.2 80 2.7 6.2 Movement in net debt (£m) 2.4 5.1 70 7.9 4.2 60 29.2 35.8 50 - 79.3 40 6.8 73.6 72.4 30 20 10 0 1 ¡ To ¡update ¡ UK - cash generation funding investment; International - investing for growth 9
Steve Corcoran, Chief Executive Building Momentum for the Future
H1 Momentum Driving H2 H1 Activity H2 Benefjt • No real improvement in general Construction market, • Improving trend in underlying Construction activity excluding Housing • National Grid mobilisation programme underway • Fully mobilised - benefjts due to fmow through in H2 • Several contracts due to be awarded in H1 ‘delayed’ • Six contracts awarded to a value of £9.6m pa at the end of H1/beginning of H2. Benefjts will fmow through H2 • Tendering for two major on-site Construction contracts • Secured on-sites at both projects: Carillion Battersea Power Station (£450m) and Nova Victoria Phase 1 (£350m) • Strong International growth in H1 • Annualised compound effect of increasing H1 growth, plus mobilisation of Zadco Island 3 • Assessing sole supply agreement with a major • Secured multi £m project in the Energy sector Industrial service provider • Executing further operational effjciencies • Benefjts of reduced underlying cost base begin to be realised Confjdent in achieving management expectations 11
Post Period End Contract Wins Growth from: Gatwick Airport* Securing new and developing existing revenues Keepmoat Morrison Utilities* in chosen markets: Northern Gas Networks* Perenco - Clear market leader in the UK Siemens - Growth from major contracts in the Infrastructure and Industrial markets Carillion - Particular success in the Utility market - Continued growth in International markets - Strong pipeline of future opportunities 30% revenue is now from service based income May Gurney Increasing presence in international oil & gas Kazakhstan Strong Pipeline *Joint Awards Solid nucleus of new work on which to build new growth 12
UK Contract Case Study - Perenco Who Are Perenco? Independent oil & gas company Operate in 16 countries across Northern Europe, Africa, South America & Southeast Asia Conduct both onshore and ofgshore operations Current production 375,000 barrels per day of oil equivalent In the UK operate ofgshore in the Southern North Sea and onshore at Bacton Gas Terminal; Wytch Farm, Kimmeridge and Wareham fjelds in Dorset Our Contract Integrated Services & Equipment, 3+2 years c£1.5m pa for rented asset support Supporting onshore oilfjeld operations in the South of England, UK Key activities of drilling, process and infrastructure maintenance Next Steps – H2 benefjt Fully mobilise and support contract Identify additional added value for Perenco Develop together a continual improvement and innovation program Ensure safety and effjciency are at the forefront of operations Further enhancement of our core industrial and energy capability 13
A Consistent Strategy A consistent focus on the right clients and markets sustainable the right an effective quality profjt proposition cost base service Right Client & Right Effective Quality Year On Year Market Focus Proposition Cost Base Service ! Revenues Up ! Utilisation Up Client Top 50 UK Hire : Non Hire Overheads* ! Costs Down Recommendations clients up 13.2% 70 : 30 down 4.3% 97% ! Recommendations Up H1 14 : 13 (FY13 72 : 28) FY13: (2%) (FY13 96%) Growing sustainable profit: Growing sustainable profjt: Strong growth with key clients in chosen markets Continued reduction in operational cost base Optimising assets and difgerentiated proposition ROCE – up to 7.6% from 7.0%, on a 12 month rolling basis PBT – up to £6.8m from £6.6m *Excludes expanding international operations. ! ROCE on track for 10% by end of CY14, and further growth beyond 14
Right Clients, Right Market Speedy Top 10 Customers by Market – FY11 - CY13 Actual Market Forecast CY13 - FY15 Revenue Comparison - H1FY14 : H1FY13 35% 30.6% Speedy 30% Growth +11.9% +1% Infrastructure 25% & Industrial Market 2 +1.3% 20% 18.5% 15% % Change Speedy 10% Growth +7.4% Construction +0.3% 3.6% Market 1 5% -8.3% -2.0% 0% Speedy 2011 Speedy Growth Market Growth 2011 to 2013 2013 to 2015 Construction Industrial Infrastructure Group Sources: Speedy Management Information; 1 Construction Products Association 2 CREDO -5% Strong performance in Infrastructure and Industrial markets, outstripping market growth Maintaining consistent performance in Construction despite poor market conditions Well placed to take advantage of Construction recovery in 2014/2015 Outperforming in our chosen markets. Well positioned to benefjt from forecast recovery 15
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