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Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Vp plc Final Results for the year ended 31 March.

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Presentation on theme: "Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Vp plc Final Results for the year ended 31 March."— Presentation transcript:

1 Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Vp plc Final Results for the year ended 31 March 2012

2 Results Summary Operational Review Financial Review Conclusion Agenda 1

3 2 Results summary

4 3 Highlights Impressive trading performance - ahead of market expectations No improvement in overall market conditions Organic revenue growth, double digit margins maintained Strong cash generation Borrowings unchanged Increased fleet investment to £32.1m (+33%) - ROCE improved Successful share tender offer in March 2012 Service and market specialisation continues to deliver results

5 4 Revenue and operating profit trends Revenue (£m) Record revenues Positive profit trend Operating profit (£m)

6 5 Operational review

7 6 Effective market re-alignment Segmental % of Total Group Revenues

8 7 Group structure

9 8 Divisional overview All divisions profitable and growing Positives: –reputation for quality of service and equipment is delivering success across the divisions –appetite and opportunity for fleet investment is growing –divisional initiatives for continuing service improvement –rail, housebuild, oil and gas and utility markets supportive Challenges: –macro economic position tests market confidence, –general construction sector remains subdued –price inflation in transport, capital equipment and spares Potential for further progress

10 9 Business performance

11 10 Capital investment in fleet

12 11 Operational outlook New financial year has started well We will maintain our focus to improve the quality of earnings in our existing businesses Uncertainty in domestic and European markets remains a factor but....... Our established strength in specialist sectors across a breadth of markets will provide opportunity and..... Our excellent, long established, track record demonstrates we have the ideas, the ambition and the ability to deliver further business improvement

13 12 Financial review

14 13 Financial highlights – excellent performance

15 14 Earnings per share

16 15 Dividend per share Pence per share Dividend per share (pence)

17 16 Tender offer Share buy back of 3.1m shares at 254 pence per share £7.8m returned to shareholders Earnings per share enhancing Tender offer oversubscribed Successfully completed on 4 April 2012 at nominal expense Balance sheet liability of £7.8m at 31 March 2012

18 17 Robust ROACE - improved Average Capital Employed £m ROACE Average Capital Employed £m ROACE

19 18 Significant investment for organic growth Able to invest into customer demand Fleet asset lives 3 to 10 years £m

20 90% fleet Includes tender offer Low level gearing Further improvement 19 Strong balance sheet

21 21 Growth in EBITDA Capex growth Net debt maintained 20 Cash flow – significant capex net debt maintained

22 21 Bank facilities and headroom

23 24 Net debt reduced by £25m since 2009 Considerable headroom Less than 2.5 times Greater than 3 times 22 Comfortably within covenants

24 23 Conclusion

25 24 Conclusion

26 24 25 Supplementary schedules

27 26 Effective rate of tax

28 27 Net working capital

29 1954 1990 2010 2006 1973 1980 Turnover 1970: £2m 1980: £14m1990: £70m2000: £55m2010: £134m2012: £164m 28 Group history – 1954 to date

30 1990 1980 29 Group Thumbnail Rental specialist serving diverse, niche end markets 6 operating divisions Established for over 50 years Mainly UK based with growing European exposure (Groundforce/TPA) and global presence (Airpac Bukom Oilfield Services) 1500+ employees; £100m asset base; £160m+ revenues

31 1954 1990 2010 2006 1973 1980 30 TPA Europes market leader in portable roadways: Operations in UK, Republic of Ireland and Germany Skilled installation of bespoke roadway and fencing solutions Markets: Transmission, outdoor events, rail, construction - UK and Europe Opportunities: Regulated transmission programme, new products and European growth

32 1954 1990 2010 1973 1980 31 UK Forks National hire of telescopic handlers/rough terrain forklifts : Only UK national telehandler specialist Fleet of c.1200 machines Strategically located distribution network Markets: General construction, housebuild and industry Opportunities: Housebuilding improvement, market share growth

33 1990 2010 1980 32 Hire station Tool hire and specialist equipment for construction and industry: Local tool hire branches supported by national call centre Plus, specialist products and services °ESS Safeforce – safety equipment and confined space training °MEP – press fitting and electrofusion equipment °Climate Hire – heating and cooling products °Virtual Hire – white label partnerships, e.g. Homebase, Garden Centre Group Markets: Construction, industry, civil engineering, housebuild, DIY Opportunities: Specialist products, market share growth

34 1990 2010 1980 33 Groundforce Opportunities: AMP 5, European growth Markets: Civil engineering (including regulated AMP programme), construction and housebuilding UK market leaders in the rental and sale of Shoring Products and Solutions: Groundforce has the largest excavation support fleet in the UK and Ireland Plus, specialist products and services °Piletec – piling equipment °Stopper Specialists – pipeline pressure testing °Shorflo – pumps °U Mole – trenchless technology

35 1990 2010 1980 34 Torrent Trackside Opportunities: LUL, Crossrail, increased renewal activity Markets: Maintenance and renewals projects on national rail network, London Underground and Network Rail maintenance contract Provision of rail specific light plant, trackside lighting and skilled trackside personnel: Genuine 24/7 x 365 national support The widest range of specialist portable rail equipment in the UK Significant safety and compliance barriers to entry in a regulated market

36 1990 1980 35 Airpac Bukom Opportunities: Recovery in well test market, new applications and greater penetration of under represented geographic regions Markets: Well testing, rig maintenance, gas transfer, LNG International rental of high pressure air compressors, steam generators and specialist equipment supported by skilled engineers: Global network of six service and distribution facilities located in the UK (Aberdeen and Great Yarmouth), Singapore, Australia, Middle East and Latin America Rental assignments in more than 60 countries

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