Results Presentation For the year ended 31 December 2017 1 - PowerPoint PPT Presentation

6 MARCH 2018 Results Presentation For the year ended 31 December 2017 1 Results Presentation March 2018

Introduction Chris Weston CEO 2 Results Presentation March 2018

Operating & financial review Heath Drewett CFO 3 Results Presentation March 2018

Group summary PBT in line with market expectations  Group revenue up 4%, Movement 9% excluding Argentina CHANGE excluding £m  Exceptional charge of pass-through pre-exceptional items FY17 FY16 CHANGE fuel and currency £41 million relating to Revenue 1,730 1,515 14% 4% investment in our business Operating profit 229 248 (8)% (10)% priorities programme Net interest expense (34) (27) (28)% Profit before tax 195 221 (12)%  Tax rate of 29% Taxation (57) (63) 9%  Recommended final dividend in Profit after tax 138 158 (13)% line with 2016 Diluted earnings per share 53.9p 61.9p (13)% Dividend per share 27.1p 27.1p - Operating margin 13% 16% (3)pp ROCE 11% 13% (2)pp 4 Results Presentation March 2018

Movement Business CHANGE performance excluding FY17 FY16 CHANGE pre-exceptional items currency Revenue (£m) 720 629 15% 9% RENTAL SOLUTIONS Operating profit (£m) 81 52 57% 49% Operating margin 11% 8% ROCE 12% 8% REVENUE Fleet capital expenditure (£m) 55 68 (% OF GROUP excl. pass-through fuel) 45 % % REVENUE BY SECTOR FY17 Business services & construction 21 % FLEET Petrochemical & refining 17 % at 31 December (MW) Utilities 11 % 10 % Events FY17 FY16 9 % Oil & gas 2,396 2,255 8 % Manufacturing Mining 5 % 56 % 52 % Other 19 % DIESEL GAS UTILISATION 5 Results Presentation March 2018

Movement Business CHANGE performance excluding FY17 FY16 CHANGE pre-exceptional items currency Revenue (£m) 340 262 30% 20% POWER SOLUTIONS Operating profit (£m) 55 32 71% 53% INDUSTRIAL Operating margin 16% 12% ROCE 11% 7% REVENUE Fleet capital expenditure (£m) 43 37 (% OF GROUP excl. pass-through fuel) 21 % % REVENUE BY SECTOR FY17 Oil & Gas 39 % FLEET Business services & construction 17 % at 31 December (MW) Events 11 % 8 % Manufacturing FY17 FY16 Utilities 7 % 2,521 2,465 7 % 68 % Mining 63 % Petrochemical & refining 2 % Other 9 % DIESEL GAS UTILISATION 6 Results Presentation March 2018

Movement Business CHANGE performance excluding pass- pre-exceptional items & through fuel FY17 FY16 CHANGE excluding pass-through fuel and currency POWER SOLUTIONS Revenue (£m) 531 564 (6)% (9)% UTILITY Operating profit (£m) 96 164 (42)% (42)% Operating margin 18% 29% REVENUE ROCE 10% 19% (% OF GROUP excl. pass-through fuel) Fleet capital expenditure (£m) 148 136 34 % % REVENUE BY SECTOR FY17 Utilities 83 % FLEET Oil & gas 7 % at 31 December (MW) Mining 6 % 3 % Manufacturing 79 % FY17 FY16 Other 1 % 74 % 5,004 4,947 DIESEL GAS HFO UTILISATION 7 Results Presentation March 2018

Cash flow £m FY17 FY16  Capital expenditure of £272 million EBITDA 529 533 Working capital (51) (119) − Fleet capex of £246 million Cash flows relating to exceptional items (30) (23)  Three acquisitions completed in year Other 2 (3) Operating cash flow 450 388 − Younicos £45m Tax (69) (64) − KBT £25m Net interest (34) (26) Acquisitions (73) (22) − TuCo £3m Purchase of fixed assets (272) (263) Other fixed asset movements 9 18  Net debt to EBITDA of 1.2 times, unchanged Free cash flow 11 31 Dividends (69) (69) Changes in equity - (8) Net cash flow (58) (46) Exchange 55 (114) Movement in net debt (3) (160) Net debt (652) (649) 8 Results Presentation March 2018

Working capital Inventory NET POSITION  Increased activity driven by major events and growth in INVENTORY Eurasia, offset by improved inventory management -1 2017 Payables -21 2016  Improvement in supplier terms; best practice employed to leverage scale PAYABLES 2017 +113 Receivables -17 2016  Revenue growth drove £90 million outflow RECEIVABLES  £36 million outflow as a result of payment delays in -163 2017 Africa -81 2016  Power Solutions Utility provision increased $23 million 9 Results Presentation March 2018

Reporting changes  Reflecting the changes in our business − focusing on what matters  More emphasis on average MW on hire, reduced prominence of order intake − no longer routinely announcing large individual contract wins  Increased customer sector focus − re-assign non utility work out of Power Solutions Utility into Industrial  No future Q1 trading updates 10 Results Presentation March 2018

Outlook  Continued growth expected in Rental Solutions and Power Solutions Industrial − further benefits of the business priorities programme − leveraging operational gearing  Off-hires in Japan and discounted pricing in Argentina remain headwinds for Power Solutions Utility  Recent strengthening of Sterling creates adverse translation effects − continuation of current rates would drive a c. 8% adverse profit impact Overall, excluding currency effects, 2018 profit before tax expected to be in line with 2017 11 Results Presentation March 2018

Making a massive difference for our customers Chris Weston CEO 12 Results Presentation March 2018

How we see our business today Making a massive difference for our customers and the communities we serve Aggreko is a customer focused specialist provider of power, temperature control and energy services on a global basis Customer Technology Efficiency People & Always Orange 13 13 Results Presentation March 2018 Results Presentation March 2018

Rental Solutions What we’ve done Market drivers Going forward  Introduced sector focus  Continued sector focus and specialisation 2.2 − 387 dedicated sales employees across the  Use new back office systems, remote business monitoring and data analytics to drive efficiency 2.0  Reorganised business operations  Drive to higher value, complex solutions  £27 million cost removed across Rental  Increase utilisation to >60% via fleet management systems  Rebuilt customer journey 1.8 − significant investment in new systems  Introduce e-commerce 1.7 1.7  Selective acquisitions GDP growth in developed markets 2017 - 2021 RESULTS TO DATE Revenue growing ROCE growing Utilisation improving +9 % 56 % 12 % 8 % UTILISATION 2016 2017 2016 2017 14 14 Results Presentation March 2018 Results Presentation March 2018

Power Solutions Industrial What we’ve done Market drivers Going forward  Sector focus  Continued sector focus and specialisation − Closed 20 depots; remaining around key  Deploy systems proven in Rental Solutions 7,050 62 sector locations − Use new back office systems and remote − 130 sector specialists employed monitoring to drive efficiency 61 60  Removed £25m of costs  Drive to higher value, complex solutions 60  Fleet rationalization and redeployment to  Increase utilisation to over 70% via fleet 6,800 improve utilisation management systems 6,719 6,700 Copper price forecast $/mt 2018-2021 Oil price forecast $/BBL 2018-2021 RESULTS TO DATE Revenue growing ROCE growing Utilisation improving +20 % 11 % 68 % 7 % UTILISATION 2016 2017 2016 2017 15 15 Results Presentation March 2018 Results Presentation March 2018

Power Solutions Utility What we’ve done Market drivers Going forward  Market Intelligence Platform improves market  Use new back office systems, remote monitoring  GDP growth & commodities understanding & customer insight and data analytics to drive efficiency  Transmission & distribution  58 dedicated regional specialists  Continued drive to reduce receivables and  Renewables penetration inventory  Removed £44 million of cost  Continue to develop sales discipline  New products designed to meet customer needs  Improve utilisation to above 80%  Deployed CRM system − particular focus on HFO & NGG sales  Enhanced sales discipline and focus Total market conversion 2 – 2.5GW RESULTS TO DATE IMPACTED BY LEGACY CONTRACTS Revenue down ROCE decline Utilisation down (9) % 8 % 74 % 2 % 11 % 8 % Argentina UTILISATION 2016 2017 2016 2017 16 16 Results Presentation March 2018 Results Presentation March 2018

The future: energy markets are transforming Cloud based data analytics Our digitalisation Opportunity as we digitalise Aggreko  Operating data collection via the ROC Energy market interface (where applicable)  Data analytics to benefit maintenance costs and customer focused product development  Y.Q system significantly enhances our ability to understand customer profiles and tailor solutions 17 Results Presentation March 2018

 Added capabilities to enhance our skills The future: energy Younicos brings software to smoothly manage integration of thermal, renewable and − markets are storage transforming  Opportunity as renewables grow and need to be integrated Off grid & microgrid − Commercial & Industrial behind the meter − Decarbonisation, Improve efficiency: driving down cost for customers, and through own use − decentralisation and digitalisation are changing the ways we generate and consume energy, globally \\\\\\\\ 18 Results Presentation March 2018