Measured progress Legal disclaimer This presentation has been - PDF document

1 For the year ended 31 March 2012 Speedy Hire Plc Annual Results Measured progress

Legal disclaimer This presentation has been prepared to inform investment professionals about Speedy Hire Plc (“Speedy”) and does not constitute an offer of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Speedy or any of its subsidiary companies. The presentation and information communicated verbally to you may contain projections and other forward-looking statements that are necessarily subject to risks and uncertainties because they relate to future events. Our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control and, consequently, ti bj t t i t f i k d t i ti f hi h b d t l d tl actual results may differ materially from those expressed or implied by any forward-looking statements and projections. Although Speedy currently believes that the assumptions underlying these forward-looking statements are reasonable, 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. Nothing contained within this presentation or communicated verbally should be construed as a profit forecast or profit estimate. Speedy undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Some of the factors which may adversely impact some of these forward-looking statements are discussed in Speedy’s audited results for the year ended 31 March 2012 under “Principal risks and uncertainties” audited results for the year ended 31 March 2012 under Principal risks and uncertainties . This presentation contains supplemental non-GAAP financial and operating information that Speedy believes provides useful insight into the performance of the business. Whilst this information is considered as important, it should be viewed as supplemental to Speedy’s financial results prepared in accordance with International Financial Reporting Standards and not as a substitute for them. 2

3 Ishbel Macpherson Welcome Chairman

Results presentation Agenda • Financial Performance – Lynn Krige • Measured Progress Clear Vision – Steve Corcoran Measured Progress, Clear Vision Steve Corcoran • Question and Answer Session – Ishbel Macpherson 4

2012 – A year of measured progress • ROCE* increased from 2.3% to 6.0%, reflecting improvements in operational efficiency, enhanced margin and capital performance • EPS* increased from (0.02p) to 1.72p • Gross hire fleet investment of £64.2m (2011: £41.8m) • Net debt reduced by £37.6m to £76.3m, with net debt to EBITDA* ratio y , improved to 1.2x (2011: 1.8x) • Full year dividend increased by 15% to 0.46p • Current trading in line with Board’s expectations * pre amortisation and exceptional costs 5

6 Financial performance Group Finance Director Lynn Krige

Summary of 2012 results Year ended Year ended Year ended Year ended March 2012 March 2011 Revenue £326.4m £313.0m * Continuing* EBITDA £62.6m £58.3m % margin 19.2% 18.6% EBITA £19.7m £12.3m % margin % margin 6 0% 6.0% 3 9% 3.9% Profit before tax* £12.4m £(0.7)m Earnings per share* 1.72p (0.02)p Group Dividend per share Dividend per share 0.46p 0 46p 0 40p 0.40p G ROCE* 6.0% 2.3% * pre amortisation and exceptional costs * ti ti d ti l t ** pre amortisation and exceptional costs and excluding disposed accommodation operation and the expired Network Rail maintenance only contract 7

Return on capital employed 500 20% 450 18% 400 16% 350 14% 300 12% £m 250 10% 200 200 8% 8% 150 6% 100 4% 50 2% ‐ ‐ FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 * (RHS) Capital employed (average) (LHS) EBITA margin (RHS) ROCE 8 * pre amortisation and exceptional costs

Continuing P&L bridge 340 enue enue 2.7 330 m £m 320 3 0 10 7 10.7 Rev Rev 326.4 310 313.0 300 65 * EBITDA* EBITDA* 63 63 2.1 61 £m 2.2 59 62.6 57 58.3 55 20 1.2 18 ITA* ITA* 16 6.2 m £m 14 14 19.7 19 7 EBI EBI 12 12.3 10 8 Continuing FY11 UK & Ireland Intern'l Corporate costs Continuing FY12 International * pre exceptional costs UK & Ireland driving profit improvement 9

UK & Ireland Year ended Year ended EBITDA margin March 2012 March 2011 Revenue £315.3m £304.6m 20.8% 20.8% EBITDA £65.7m £63.5m % margin % margin 20.8% 20 8% 20 8% 20.8% FY11 FY12 EBITA £27.9m £21.7m % margin 8.8% 7.1% EBITA margin • Pricing – improvement in price Pricing impro ement in price • Products – improved availability, increased quality and higher utilisation 8.8% • People – improved selection process and talent 7.1% development programmes development programmes • Place – reconfiguration of network leading to improved logistics and distribution FY11 FY12 All data excludes the disposed accommodation operations and the expired Network Rail contract and is pre-exceptional and corporate costs 10

International Year ended Year ended EBITDA margin March 2012 March 2011 Revenue £11.1m £8.4m 21.1% EBITDA £2.5m £0.4m 4.8% % margin % margin 21 1% 21.1% 4.8% 4 8% FY11 FY12 EBITA (£0.7m) (£1.9m) % margin (6.4%) (22.6%) EBITA margin (6.4%) • Second full year of trading • EBITA profit in H2 (22.6%) • Good pipeline of opportunities in target sectors • Exit revenue run rate is £14m Exit revenue run rate is £14m FY11 FY12 11

Strengthening financial position Year ended Year ended March 2012 March 2012 March 2011 March 2011 Property, plant & equipment £241.0m £219.9m N t d bt Net debt £76 3 £76.3m £113 9 £113.9m Net debt: EBITDA* 1.2x 1.8x Gearing 33.2% 49.7% Return on capital employed 6.0% 2.3% Net tangible asset value per share 33p 33p Shareholder funds £229.5m £229.4m * pre exceptional costs • Secured ABL funding to January 2015 • Working capital improvements Working capital improvements • Debtors days reduced to 63.3 (2011: 68.5 days) 12

Hire fleet investment 100 250% 90 80 200% 2012 2011 Cash flow £m £m 70 UK capex 54.5 36.8 60 150% International International 9.7 9.7 5.0 5.0 £m 50 capex 64.2 41.8 40 100% Proceeds from (19.4) (16.2) 30 disposals 20 50% Net fleet 44.8 25.6 investment 10 ‐ ‐ FY08 FY08 FY09 FY09 FY10 FY10 FY11 FY11 FY12 FY12 Fleet capex (gross) (LHS) Fleet depreciation exc Accmm(LHS) Depreciation Accommodation (LHS) Capex % of depreciation (RHS) Accelerated FY13 Capex Net debt reduced, even after significant investment in hire fleet 13

Debt structure & headroom Book value Borrowing base Borrowings Total facility Total £259.5m Receivables 85% of eligible UK & Ireland Overdraft £81.6m £5.0m debtors Total £152.6m Plant & £69.3m machinery £41.7m ABL facility 85% of eligible headroom UK & Ireland £215.0m plant & machinery £177.9m £110.9m £83.3m Funding secure – underpins capacity to invest in hire fleet 14

Self funded investment 120 8.9 debt (£m) 100 19.4 33.4 5.2 6.6 57.0 80 64.2 ovement in net 60 113.9 12.7 - 40 76.3 Mo 20 20 - 15

Financial summary • Continued net debt reduction • Reinvestment out of self generated cash • • Strong balance sheet Strong balance sheet • Well positioned for 2013 16

17 Measured progress – clear vision Steve Corcoran Chief Executive

Measured progress • Reduced costs • Increased efficiency • Improved customer service • Innovated products and systems Clear Vision Clear Vision • Targeted opportunities • Right customer, right markets • Extend value-add activities 18

Cost reduction Number of employees Number of vehicles 6,000 3,500 5,109 2,891 3,000 4,692 5,000 2,543 4,267 4,267 4 124 4,124 2,500 3,844 2,221 4,000 2,055 1,919 2,000 3,000 1,500 2,000 1 000 1,000 1,000 500 ‐ ‐ FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Number of depots Revenue and EBITA margin % 488 482.7 465.9 500 500 15% 399 400 400 400 400 363 363 351.1 3 354.2 2 329.3 327 283 10% 300 300 £m 200 200 5% 100 100 ‐ ‐ 19 ‐ FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12

Improved efficiency – well advanced Revenue* per depot Revenue* per employee 1.4 94.0 100 88.9 87.7 85.1 1.2 1.1 80.8 81.0 1.2 77 0 77.0 76 3 76.3 1.0 1 0 80 1.0 0.9 0.9 0.9 0.8 60 0.8 0.6 £m £000 0.6 40 0.4 0 4 20 0.2 ‐ ‐ FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Turnover to gross book value of hire • Efficiency in depot and fleet utilisation is now ahead of fleet 120% peak and downturn 110% 110% • Revenue per employee improving and leaves scope for 100% further efficiency and growth capacity 90% 93.9 97.5 • Operational efficiency well advanced; profit lags....... 80% 85.8 price remains circa 10% below peak price remains circa 10% below peak 81.5 81 5 77.6 70% 76.7 74.8 74.5 • Further efficiencies to be delivered 60% 20 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 * Adjusted for accommodation