2 AUGUST 2017 Results Presentation For the half year ending 30 June 2017 1 Results Presentation August 2017
Chris Weston CEO 2 Results Presentation August 2017
Agenda 1H17 Operating & Financial Review and Outlook Carole Cran, CFO Market Overview Chris Weston, CEO 3 Results Presentation August 2017
The first six Delivering growth, Argentina aside months Business priorities are repositioning Aggreko, and making it more competitive Changes to the Markets mixed, opportunities in each business unit business are delivering results Changes to the management team − Stephen Beynon joins as MD of Power Solutions − Search for successor to Carole Cran underway 4 Results Presentation August 2017
1H17 Operating & Financial Review Carole Cran CFO 5 Results Presentation August 2017
Group summary PBT in line with market expectations Group revenues up 6%, Movement excluding Argentina CHANGE excluding pass-through Exceptional charge of £m fuel and pre-exceptional items 1H17 1H16 CHANGE currency £10 million relating to Revenues 792 685 16% 0% completion of the Operating profit 79 82 (3)% (11)% business priorities Net interest expense (16) (11) (41)% Profit before tax 63 71 (10)% Tax rate of 28%, in line Taxation (18) (20) 10% with prior year Profit after tax 45 51 (10)% Diluted earnings per share 17.88 19.81 (10)% Operating margin 10% 12% (2)pp ROCE (rolling 12 months) 12% 14% (2)pp 6 Results Presentation August 2017
Movement Business CHANGE performance excluding 1H17 1H16 CHANGE pre-exceptional items currency Revenue (£m) 319 280 14% 2% RENTAL SOLUTIONS Operating profit (£m) 14 11 36% 14% Operating margin 5% 4% ROCE (rolling 12 months) 8% 14% REVENUE (% OF GROUP) Fleet capital expenditure (£m) 24 36 42 % Revenue excluding oil & gas up 7% − Majority of sectors performing well FLEET at 30 June (MW) Strong growth in temperature control 24 MW of next generation gas contracts won 1H17 1H16 2,287 2,322 Seasonal nature of business means majority of profits are delivered in the second half 52 % 51 % DIESEL GAS UTILISATION 7 Results Presentation August 2017
Movement Business CHANGE performance excluding 1H17 1H16 CHANGE pre-exceptional items currency Revenue (£m) 167 117 43% 20% POWER SOLUTIONS Operating profit (£m) 23 10 134% 76% INDUSTRIAL Operating margin 14% 8% ROCE (rolling 12 months) 9% 9% REVENUE (% OF GROUP) Fleet capital expenditure (£m) 11 23 22 % Eurasia, Middle East & Africa drive growth FLEET at 30 June (MW) Restructured business to improve performance − Redeployed fleet 1H17 1H16 2,633 2,494 67 % − Rationalised depot infrastructure 62 % − Reduced capital employed and costs DIESEL GAS UTILISATION 8 Results Presentation August 2017
Movement Business CHANGE performance excluding pass- through fuel pre-exceptional items & and 1H17 1H16 CHANGE excluding pass-through fuel POWER SOLUTIONS currency Revenue (£m) 264 264 0% (11)% UTILITY Operating profit (£m) 44 61 (28)% (33)% Operating margin 17% 23% REVENUE (% OF GROUP) ROCE rolling 12 months) 16% 16% 36 % Fleet capital expenditure (£m) 80 32 Ex Argentina, revenues and margins grow FLEET at 30 June (MW) Increase in debtor provision of $10 million 430 MW order intake year to date 76 % 75 % 1H17 1H16 − 28 MW of next generation gas engines 4,822 4,828 − Initial HFO & solar-diesel contracts signed − KBT adds 200 MW DIESEL GAS HFO UTILISATION 9 Results Presentation August 2017
Cashflow £m 1H17 1H16 Capital expenditure of £128 million EBITDA 230 219 Working capital (38) (101) − 90% of spend on fleet capex Cashflows relating to exceptional items (10) (15) Dividend maintained Other 2 (3) Operating cash flow 184 100 Net debt to EBITDA of 1.3 times Tax (33) (22) Net Interest (17) (11) Acquisitions (28) - Purchase of fixed assets (128) (98) Other fixed asset movements 4 14 Free Cash Flow (18) (17) Dividends (45) (45) Changes in Equity - (8) Net Cash Flow (63) (70) Exchange 29 (75) Movement in Net Debt (34) (145) Net Debt (683) (634) 10 Results Presentation August 2017
Working capital Improvement programme underway Payables £65 million net inflow − Consolidation of supply chain allows improvements in supplier terms Inventory Analysis phase complete; plan in place and underway Receivables Continues to be a challenge − Utility provision increases $10 million − One of the main pillars of the improvement project − Reviewing processes, reducing time to invoice & improving customer interactions 11 Results Presentation August 2017
Outlook Full year guidance unchanged Guidance for profit before tax unchanged − Third quarter is important Loss making nature of Younicos offset by KBT acquisition and slower off-hires in Argentina Guidance implies growth across the business, excluding the impact of Argentina 12 Results Presentation August 2017
Market Overview Chris Weston CEO 13 Results Presentation August 2017
Rental Solutions OBJECTIVE: Improve the Markets largely favourable customer journey Increase sector expertise North American oil & gas Implement new systems improved on Q4 2016 and applications Enhance our digital Temperature control growing platform well, bolt-on acquisitions increase capabilities PROGRESS: New website CRM rolling out across geographies Operations system to improve productivity and utilisation 14 14 Results Presentation August 2017 Results Presentation August 2017
Power Solutions Utility OBJECTIVE: Reduce the total cost Emerging economies expected to of energy grow at 4.5% in 2017 Improve fuel efficiency of existing fleet Power deficits persist and are Add new products to growing in many areas the mix − Prospect pipeline remains Enhance sales capability healthy PROGRESS: Strategy and actions will maintain market leading position HFO, new gas and solar/diesel contracts won Further upgrade to diesel engine in scope Training & recruiting in sales 15 15 Results Presentation August 2017 Results Presentation August 2017
Power Solutions Industrial OBJECTIVE: Understand customer Growing ahead of GDP needs Increase sales presence Middle East – largest part of the Restructure the Industrial business business − Strategies delivering growth − Refine depot infrastructure in a competitive region − Remove cost Eurasia – opportunities strong in PROGRESS: Russian Oil & Gas − Our solutions preserve Optimised footprint balance sheets and perform Right sized infrastructure and headcount well in challenging environments Redeployed equipment Focus on profitable work − Revenues increased 71% 16 16 Results Presentation August 2017 Results Presentation August 2017
Long term market trends Global energy markets are changing 17 Results Presentation August 2017
Conclusion The business priorities are repositioning Aggreko and improving competitiveness We continue to target returns in the medium term of around 20% Evolving energy markets provide exciting opportunities both now and in the future 18 18 Results Presentation August 2017 Results Presentation August 2017
Appendix 19 Results Presentation August 2017
Capital allocation discipline maintained Power Solutions Power Solutions Rental Solutions Industrial Utility 1H17 1H16 1H17 1H16 1H17 1H16 Average utilisation 67% 62% 75% 76% 52% 51% Fleet Capex / 33% 83% 124% 55% 57% 90% Fleet Depreciation Fleet Capex £11m £23m £80m £32m £24m £36m POWER SOLUTIONS POWER SOLUTIONS RENTAL SOLUTIONS (UTILITY) FLEET (INDUSTRIAL) FLEET FLEET at 30 June (MW) at 30 June (MW) at 30 June (MW) HFO 1H17 4,822 1H17 2,633 1H17 2,287 1H16 4,828 1H16 2,494 1H16 2,322 DIESEL GAS DIESEL GAS DIESEL GAS 20 20 Results Presentation August 2017 Results Presentation August 2017
Business performance Revenue by sector 1H 2017 POWER SOLUTIONS POWER SOLUTIONS RENTAL SOLUTIONS INDUSTRIAL UTILITY 39 39 % 11 % 11 10 10 % 82 % 82 7 % 7 % 18 % 18 11 11 % 10 % 10 OIL & GAS MANUFACTURING CONSTRUCTION UTILITIES OIL & GAS QUARRYING PETROCHEMICAL UTILITIES OIL & GAS & MINING & REFINING 7 % 7 % 6 % 4 % 10 % 10 8 % 8 % QUARRYING SERVICES EVENTS OTHER EVENTS MANUFACTURING CONTRACTING & MINING 6 % 4 % 10 % 10 8 % 7 % 20 % 20 UTILITIES CONTRACTING OTHER SERVICES CONSTRUCTION OTHER 21 Results Presentation August 2017
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