Full Year Results For the year ending 31 December 2014
Agenda Introduction Ken Hanna, Chairman Initial Impressions Chris Weston, CEO 2014 Performance Review Carole Cran, CFO 2015 Outlook Carole Cran, CFO 2
Introduction Ken Hanna, Chairman 3
Initial Impressions Chris Weston, CEO 4
2014 Performance Review Carole Cran, CFO 5
2014: a solid trading performance in a challenging year Highlights Strong growth in Americas and good growth in EMEA 200m return of value to shareholders Balance sheet remains strong at 0.9x net debt to EBITDA Lowlights…
Underlying growth across both businesses Solid performance in Local; Revenue Trading profit underlying revenue up 8% FY14 FY13 Underlying FY14 FY13 Underlying m m % m m % Good performance in Power Local Business 904 838 8% 139 144…
Strong performance in the Americas Local business underlying revenue up 12% Reported Underlying m FY14 FY13 Change Change Local 457 445 3% 12% Power Projects revenue up 39% despite 20m military reduction Power Projects 227 200 13%…
Challenging year in APAC Local business underlying revenue down 9% Reported Underlying m FY14 FY13 Change Change Local 105 128 (18)% (9)% Power Projects underlying revenue Power Projects 141 175 (20)% (15)% down 15%, down 9% excluding…
Good performance in EMEA Local business underlying revenue up 9% Reported Underlying m FY14 FY13 Change Change Local 341 331 3% 9% Power Projects underlying revenue up 8% and good level of contract awards Power Projects 258 252 3% 8%…
Solid operating cashflow Working capital outflow driven by m FY14 FY13 debtors Operating Profit 310 358 Depreciation 262 278 Capex around 1x depreciation EBITDA 572 636 Working Capital (73) (25) Other (1) (8) 200m return of value…
Fleet utilisation continues to improve Power Projects and Local utilisation continued to improve Local Business Fleet At 31 December (MW) 14m of Local business capex 2014 4,814 funded from PP Diesel Gas 290 refurbishments in FY14…
2015 Outlook Carole Cran, CFO 14
What is the implication of a lower oil price for a sustained period Tailwinds Facts Headwinds Fuel component of 17% of Group revenue Reductions being seen in temporary power is from oil & gas sector exploration capex cheaper (c.50%…
Underlying Outloo trading profit broadly in line with last year We are encouraged by the Groups performance at this early stage Little impact to date from lower oil price, could be headwind later in year Security challenges remain in…
Appendix 17
Diverse customer base Utilities 42% of revenue, Power Projects driven Top 5 customers contribute 17% of revenue Events Oil & gas biggest sector in Local Construction 22% 2% 7% 6% Contracting 2% 4% 3% Services 4% Quarrying…
Balanced geographic spread 22% North America 21% 22% Europe Middle East Revenue 16% 15% Africa 1,529m 17% 9% Asia & Australasia FY14 Group Revenue (excl. pass- Latin America through fuel) 19
Stable revenue mix Revenue % of Revenue (ex fuel) FY14 FY13 Underlying1 FY14 FY13 Change pp m m % m m Power 1,062 1,086 8% 70% 71% (1) Temperature Control 119 124 2% 8% 8% - Oil-Free Air 29 30 1% 2% 2% - Total Rental 1,210 1,240…
Declining impact from Military & Japan Military & Japan not mainstream Japan and Military Revenue Japan was a black swan event Japan and Military Revenue Power Projects Revenue Military has been declining 180m 25% since 2009 160m…
Strong ratios maintained Strength relative to covenants FY14 FY13 Tax rate stable at 26% EBITDA 572m 636m ROCE 2pp lower, healthy 19% Capital investment 251m 228m Net borrowings 494m 363m Interest cover EBITDA basis 27x 26x Net…
Strong balance sheet FY14 FY13 m m Intangible assets/goodwill 148 151 Tangible fixed assets 1,177 1,165 Working capital 334 266 Retirement benefit obligation (7) (6) Derivative financial instruments (3) 2 Provisions for taxes…
Power fleet stable Local Business Power Projects FY14 FY13 FY14 FY13 Diesel 4,386 4,322 3,495 3,587 Gas 393 275 1,174 1,205 HFO 35 25 212 240 Total 4,814 4,622 4,881 5,032 24
Broadly in line with strategic targets Strategy Targets1 FY14 Performance Superior service Revenue growth: 8-12% Revenue growth: 8% Local Utilise global scale for Margin: 17-20% Margin: 16% efficiency ROCE: 18-21% ROCE: 15%…
Currently foreign exchange tailwind for 2015 FX Rates Revenue (m) FY14 February FY14 Actual FY14 Actual Variance % Variance m 2015 at February Closing 2015 Rates US Dollar 1.65 1.54 1,013 1,081 68 7% Euro 1.24 1.36 93 85 (8) (9)%…
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