3 MARCH 2020 Results presentation For the year ended 31 December 2019 Results presentation March 2020 1
Introduction Chris Weston CEO Results presentation March 2020 2
Headlines Strong profit growth and cash generation, on track to deliver mid-teens ROCE in 2020 and beyond Strong underlying profit growth of 13% Significant working capital inflow of £107m ROCE increased 1.1pp to 11.2% Final dividend increased 3% to 18.3 pence Tokyo 2020 preparations progressing as expected Monitoring the potential impact of coronavirus Results presentation March 2020 3
Rental Solutions REVENUE (% OF GROUP excl. pass-through fuel) 53 % OPERATING MARGIN 15.9 % (FY18: 12.9%) 22% underlying Good growth in Granny Smith UTILISATION operating profit growth North America operational based on average MW on hire Driven by a strong Revenue up 5%, More than 20,000 FY19 58% performance in North supported by key solar panels and two America sectors Y.Cubes deployed FY18 62% Photo: 8MW solar array at Granny Smith gold mine, Australia Results presentation March 2020 4
Power Solutions Industrial REVENUE (% OF GROUP excl. pass-through fuel) 27 % OPERATING MARGIN 14.8 % (FY18: 16.6%) Revenue up 6% excl. Underlying profit Tokyo 2020 UTILISATION Winter Olympics & Tokyo 2020 down 7% Olympics based on average MW on hire Olympics Driven by Eurasia, Preparations to Growth in Africa, FY19 68% with slower order deliver the contract Middle East and intake and rate are progressing as LAM offset by FY18 71% pressure expected Eurasia and Asia Photo: Delivering the 2019 Rugby World Cup in Japan Results presentation March 2020 5
Power Solutions Utility REVENUE (% OF GROUP excl. pass-through fuel) 20 % OPERATING MARGIN 13.3 % (FY18: 13.4%) 21% underlying New contracts and Strong cash collection UTILISATION operating profit growth extensions performance based on average MW on hire Reduced costs and Major contract wins Significant progress in FY19 65% improved operational to be fully mobilised reducing overdue performance from 2021, Ivory balances FY18 66% Coast extension agreed Photo: Our operations in Ivory Coast Results presentation March 2020 6
Well-positioned as energy markets change Continuing to adapt to customers’ evolving needs With growing interest in lower carbon technology and our new battery storage product 185MW of hybrid work secured 30 Y.Cubes now under contract Results presentation March 2020 7
Continued focus on our four strategic priorities Customer focus Technology investment Capital efficiency Expert people Being particular about the sectors we target Developing competitive configurable products Being mobile & modular Living Always Orange Offering specialist solutions Smarter use of connected systems & data analytics Getting the very most out of our assets Nurturing our full potential Being simple to do business with Integrating renewable & storage technology Striving for the most competitive cost base Staying safe and professional at all times Update on Drivers of growth and returns strategic priorities Capital allocation policy The opportunity presented by the energy transition August 2020 Results presentation March 2020 8
2019 full year results review Heath Drewett CFO Results presentation March 2020 9
Group summary Movement CHANGE excluding Good underlying profit growth, pass-through up 13% fuel and £m FY19 FY18 CHANGE currency Operating margin of 14.9%, up Revenue 1,613 1,760 (8)% (1)% 1.8pp on an underlying basis Operating profit 241 219 10% 13% Effective tax rate of 35% Operating margin 14.9% 12.5% 2.4pp 1.8pp Net interest expense (42) (37) (13)% ROCE of 11.2%, up 1.1pp on an underlying basis Profit before tax 199 182 9% 13% Taxation (70) (57) (23)% Final dividend up 3% to Profit after tax 129 125 3% 18.3 pence Diluted earnings per share 50.7 49.2 3% 6% Final dividend per share 18.3 17.7 3% Full year dividend per share 27.7 27.1 2% ROCE 11.2% 10.3% 0.9pp 1.1pp Results presentation March 2020 10
Strong cash flow £m FY19 FY18 EBITDA 564 517 Working capital inflow of £107m Working capital 107 (56) Cash flows relating to fulfilment assets (66) (44) £m FY19 FY18 Cash flows relating to demob provisions (6) (4) Trade and other receivables 78 (10) Other 29 10 Trade and other payables 21 (60) Operating cash flow 628 423 Inventory 8 14 Tax (76) (61) Working capital 107 (56) Net interest (42) (32) Acquisitions and investments - (33) Fulfilment assets spend increase driven by Purchase of fixed assets (230) (216) Tokyo 2020 Other fixed asset movements/Lease payments (18) 5 Fleet capex of £189m (2018: £196m) Free cash flow 262 86 includes £26m related to Tokyo 2020 Dividends (69) (69) Free cash flow increase of £176m Changes in equity (4) (12) Net cash flow 189 5 Net debt/EBITDA (incl. IFRS 16 leases) down Exchange 16 (39) to 1.0x Movement in lease liability (net of exchange) (103) - Movement in net debt 102 (34) Net debt (584) (686) Results presentation March 2020 11
Significant progress on working capital £61m FY19 FY18 Overall working £8 m Decrease in inventory capital inflow Decrease driven by ongoing inventory initiatives across of £107m the Group (2018: £56m outflow ) £78 m Decrease in trade and other receivables Strong cash collection in Power Solutions Utility Reduced level of unbilled within Rental Solutions £21 m Increase in trade and other payables Increase driven by deferred revenue for Tokyo 2020 (£52m) Partially offset by a reduction in fuel creditors due to off-hiring of major contracts in Brazil Results presentation March 2020 12
Trade receivables Reduction of £58m, after five years of increases GROUP TRADE RECEIVABLES (£m) 600 Good progress on cash collections within Power Solutions Utility Reduction in the level of Rental Solutions unbilled, with focus now increasing on 400 collections 200 0 FY15 FY16 FY17 FY18 FY19 RS / PSI trade receivables PSU trade receivables Results presentation March 2020 13
Utility - Invoicing / receipts performance Good progress on collections, especially in Africa and LAM POWER SOLUTIONS UTILITY ($m) 200 $m 2H19 1H19 2H18 1H18 240 244 351 362 Invoicing 160 289 295 349 345 Receipts 49 51 (2) (17) Net total 120 80 Bad debt provision within PSU broadly unchanged at $81m 40 (Dec 2018: $83m) 0 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Invoicing Receipts Results presentation March 2020 14
IFRS 15 - Fulfilment asset progression Current year increase driven by Tokyo 2020 BALANCE SHEET MOVEMENTS (£m) Capitalised in the period Capitalised 120 £m 2019 2018 in period Burkina Faso 10 - 66 (24) 100 PIE-A 5 14 80 Amortised 86 Granny Smith 3 - to the Capitalised income Bangladesh - 11 60 in period statement Other 30 19 4 (12) 44 40 44 Sub total 48 44 Amortised Other to the Tokyo 2020 18 - 20 income statement Net total 66 44 8 0 Balance at Balance at Balance at 1 Jan 2018 31 Dec 2018 31 Dec 2019 Results presentation March 2020 15
Outlook PBT in line with current expectations − Currency headwinds of c. 8% (see appendix 4) − Effective tax rate of c. 35%, subject to geographic mix Confident of achieving mid-teens ROCE target in 2020 and beyond − Full year fleet capex £200-£250m − Further progress on working capital − Monitoring the potential impact of Coronavirus Expect another year of good cash generation Update on our strategic priorities alongside interim results in August Results presentation March 2020 16
Aggreko is a customer focused specialist provider of power, temperature control and energy services on a global basis. These services are based on modular and mobile equipment operated on a digital platform with a market leading integration capability. Results presentation March 2020 17
Appendix 1 – Rental Solutions Movement CHANGE excluding FY19 FY18 CHANGE currency Revenue (£m) 833 822 1% (1)% Operating profit (£m) 133 105 25% 22% Operating margin 15.9% 12.9% 3.0pp 2.9pp ROCE 16.7% 14.7% 2.0pp 1.7pp Fleet capital expenditure (£m) 71 79 % Revenue by sector FY19 Petrochemical & refining 19 % Building services & construction 18 % Oil & Gas 18 % Utilities 10 % Events 9 % Manufacturing 7 % 6 % Mining 13 % Other Results presentation March 2020 18
Appendix 2 – Power Solutions Power Solutions Industrial Power Solutions Utility Movement Movement CHANGE CHANGE excluding excluding FY19 FY18 CHANGE Excluding pass-through fuel FY19 FY18 CHANGE currency currency Revenue (£m) 434 424 3% 2% Revenue (£m) 319 342 (7)% (5)% Operating profit (£m) Operating profit (£m) 64 71 (9)% (7)% 43 46 (7)% 21% Operating margin 14.8% 16.6% (1.8)pp (1.4)pp Operating margin 13.3% 13.4% (0.1)p 2.9pp ROCE 10.4% 10.7% (0.3)pp (0.2)pp ROCE 5.8% 6.2% (0.4)pp 1.1pp Fleet capital expenditure (£m) 69 47 Fleet capital expenditure (£m) 49 70 % Revenue by sector FY19 This segment includes only Utility customer Oil & Gas 41 % projects Mining 15 % Events 13 % Building services & construction 10 % Manufacturing 7 % Utilities 4 % Petrochemical & refining 2 % Other 8 % Results presentation March 2020 19
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