NYC 2018 Capital Markets Day April 19, 2018 Legal Notice This - PowerPoint PPT Presentation

NYC 2018 Capital Markets Day April 19, 2018

Legal Notice This presentation has been prepared to inform investors and Some of the factors which may adversely impact some of these prospective investors in the secondary markets about the Group forward looking statements are discussed in the Principal Risks and does not constitute an offer of securities or otherwise constitute and Uncertainties section on pages 34-37 of the Group’s Annual an invitation or inducement to any person to underwrite, subscribe Report and Accounts for the year ended 30 April 2017 and in the for or otherwise acquire securities in Ashtead Group plc or any of unaudited results for the third quarter ended 31 January 2018 its subsidiary companies. under “Current trading and outlook” and “Principal risks and uncertainties”. Both these reports may be viewed on the Group’s website at www.ashtead-group.com The presentation contains forward looking statements which are necessarily subject to risks and uncertainties because they relate to future events. Our business and operations are subject to a variety This presentation contains supplemental non-GAAP financial and of risks and uncertainties, many of which are beyond our control operating information which the Group believes provides valuable and, consequently, actual results may differ materially from those insight into the performance of the business. Whilst this projected by any forward looking statements. information is considered as important, it should be viewed as supplemental to the Group’s financial results prepared in accordance with International Financial Reporting Standards and not as a substitute for them. 2

Today’s Agenda • 2021 Update • Our Markets - Geographic - Channel Breadth • Platform Development • Financial Update • Q&A 3

Agenda & Introductions Introductions Geoff Drabble Brendan Horgan Michael Pratt Brad Lull John Washburn 4

2021 Update

Project 2021 : Recap Project 2021 | Physical & Financial Plan General Tool & Specialty Branches Greenfields & Bolt-ons 354 2016 Highly Focused on Clustered & Capital Markets Day Larger Markets Project 2021 Rollout London, UK Additional Locations By 2021 Financial Elements 2021 plan did not detail Canada 329 U.S. locations | 25 Canadian locations | Plan inclusive of Canada now 900 locations 6

Project 2021 | Location Progress 900 2021 2021 Plan 2020 Composition of Growth 2019 715 Locations 102 67 169 2018 General Tool Specialty Total 2017 97 72 Greenfield Bolt-on 546 2016 Time 169 of 354 Progress to Plan 7

Location Growth from May 1, 2016  169 locations added  Further advancing clusters  Large market progress  Broadening and deepening customer reach  Notable growth in Growth Canada Original Footprint 8

Canada | Progress & Possibilities Growth since May 1, 2016 Plan Taking 13 35 Shape Bolt-ons Greenfields Real Growth Opportunity Ahead Bolster General Tool Augment with Specialty Diversify end market share businesses markets 9

Significant Progress in Largest Markets Market Band Location Additions 62 1 – 25 71 % 26 – 50 29 of U.S. Locations Added USA in Top 50 Markets 51 – 100 24 101 – 210 13 66 % 27 1 – 10 of Canadian Locations 11 – 25 5 Added in Top 10 Markets Canada 26 – 76 9 Total Locations 169 10

Cluster Market Progress USA Canada Rental Markets Top 25 26-50 51-100 101-210 1-10 11-25 26-76 Addressable 57% 19% 15% 9% 64% 22% 14% Market Cluster >10 >7 >4 >1 >7 >4 >1 Definition 9 10 3 10 - - - May 1, 2016 14 11 6 14 1 0 2 Today Expanding Our Clusters Creates Greater Opportunities 11

Project 2021 | Financial Progress Total Rental Revenue Growth Year 2021 Plan Actual 2017 12% 2018 YTD 20% ~10% 2019 - 2020 - 2021 - CAGR 16% 12

How We View Markets Geographically

Greenfield V. Bolt-On Our View of a Market | Expansion Strategy Large Target Greenfields Target Bolt-ons Greenfields Bolt-ons Market Size Target Greenfields Greenfields Bolt-ons Small Sunbelt Market Share High Low 14

Greenfield V. Bolt-On Where We Invested In Our Growth Large Market Size Small Sunbelt Market Share High Low Bolt-on Greenfield 15

New York City | Largest U.S. Rental Market Target Target Bolt-ons Greenfields Greenfields Bolt-ons Target Greenfields Greenfields Bolt-ons  Foundation for growing cluster  Step change in market share  40 years of customer relationships GT Specialty  Broad general equipment and specialty cross-selling opportunities Pride 16

Los Angeles | 2nd Largest U.S. Rental Market Target Target Bolt-ons Greenfields Greenfields Bolt-ons Target Greenfields Greenfields Bolt-ons  Collection of bolt-ons enhance coverage in key market GT  Specialty Strong legacy leadership & sales team Ventura Noble  Established anchor AWP location Arsenal 17

Atlanta | 10 th Largest U.S. Rental Market Target Target Bolt-ons Greenfields Greenfields Bolt-ons Target Greenfields Greenfields Bolt-ons  Bolt-ons complimented existing coverage  Strong legacy leadership and sales team GT Specialty  Convenience and cross-selling opportunities Nickell with new customer base West GA 18

St. Louis | 27 th Largest U.S. Rental Market Target Target Bolt-ons Greenfields Greenfields Bolt-ons Target Greenfields Greenfields Bolt-ons  Leading independent provider  Key coverage in “gateway” market  Strong legacy leadership team GT Specialty RGR 19

Demonstrating Our Range of End Markets

Anytown, USA Live Demo 21

Square Foot Under Roof | New Dimension to Consider USA Rental Markets  Not new to us Top 25 26-50 51-100 101-210 Total  Exponential growth potential for rental Sq. Ft 51B 18B 12B 6B 87B  Sunbelt leading Under Roof the charge  Product line and capabilities Sq. Ft essential Under Roof 59% 20% 14% 7% - (% of Total) 22

So What Does This Mean? | Square Footage Under Roof Rental Opportunity Rental Penetration Overstated ~2-3% $4 55% Rental Penetration (%) MRO p/Sq Ft MRO Rental Spend 87B $7-10B Sq Ft Under Roof Addressable Market 2000 2018 Market Share Sunbelt 8% Overstated   Building Services HVAC & Mechanical   Property Management Commercial Cleaning   Electrical & Lighting Remediation & Restoration 23

General Tool | Range of Business Development of a Clustered Market | End Market Composition Early Mid-Term Mature Kansas City Los Angeles Tampa Progression of Cluster Construction Non-Construction 24

General Tool | Range of Business Profile of Clustered Market | Maturity Makes The Difference Profile Non-Construction EBITA ROI  Platform for increased throughput Mature +60% 41% 29%  Broadens end market Mid-Term 40% 35% 22%  Catalyst for rental penetration  Better financial Early 20% 32% 19% returns 25 Top 100 Markets

Our Thinking of Markets & Clusters Has Evolved USA Canada Rental Markets Top 25 26-50 51-100 101-210 1-10 11-25 26-76 2016 >10 >7 >4 >1 >7 >4 >1 Cluster Definition Today Cluster >15 >10 >4 >1 >7 >4 >1 Definition  Greater location opportunity within cluster Addressable  Significance of non-construction sq. ft. under roof Markets  Understanding the potential of our cluster market platform 26

Climate Control Case Study

Climate Control | Timeline Opened 8 Greenfields and acquired Strategy Takes Shape Added R&R Product Line a single location Air Systems Added 4 Greenfields Added 7 Greenfields Expanded coverage across the U.S. 2012 2013 2014 2015 2016 2017 2018 Locations: 15 Locations: 22 Locations: 43 Locations: 52 Locations: 58 Locations: 62 Locations: 65 Market Entry Opened 3 Greenfields and added Significant pipeline Established Western Presence 3 locations from acquisition of Greenfields and April 2012 – Acquired Topp Opened 7 Greenfields and added 14 Acquisitions remain Portable Air (15 locations) Expanded presence into Bolt-Ons from Atlas Vancouver 28

Climate Control | Market Detail Current 65 Locations 25 Markets Top 25 33 Locations 44 Markets Top 50 53 Locations 29

Climate Control | Market Detail Current Opportunity 65 120 Locations 25 Markets 25 Markets Top 25 33 Locations 50 Locations 44 Markets 50 Markets Top 50 Market Opportunities 53 Locations 85 Locations Today’s Footprint 30

Climate Control  Significant room for growth  Leverage cluster platform  Small portion of business tied to construction  Diversifies end markets for general tool business 31

Flooring Solutions Case Study