Our objective Our objective is to be the leading global provider of modular, mobile power and related solutions, delivering long-term value to shareholders, outstanding service to customers and rewarding careers to our employees.…
Our business model is strong and unique Our People & Committed and passionate people Culture Fast pace Strong customer service Can-do attitude Expertise Over 50 years of operational experience Sector specific and complex project…
Base business is strong but slower more recently Business grew strongly 2008 - 2012 benefiting from exceptional events Group Trading Profit Bridge (m) 500 Since 2012 we have faced 100m 400 profit headwind 300 Gradual off-hire in…
The market environment has changed Lower EM GDP Competitive Commodity prices Geopolitical and has reduced environment has have fallen from security concerns projected power intensified in their highs.we have increased.…
We need to evolve Invested heavily in depot infrastructure Mixed success in technology Local Business Revenue by Depot 14 G3+ 12 10 HFO Revenue (m) 8 6 Our cost base has grown Costs as a % of revenue 4 43%…
Listening to our customers 9
Reorganising to better focus on our customers Rental Solutions Power Solutions Aggreko never let us down theyve done a fantastic job. Michael Eavis Founder of Glastonbury Festival Developed markets Developing markets…
Focusing on the market opportunity 11
Rental Solutions operates in growth markets We have a leading competitive position in our four main markets Expected Market Growth 2014-2019 (North America, Australia, UK, Germany) 10% Delivered strong performance in 5% key sectors…
Power Solutions operates in three market segments Market by Type of Customer Demand More proactive demand Industrial 10-20% industrials demand - On grid industrials requiring backup for grid failure - Off grid industrial projects,…
The market for Industrial customers is growing Presence in largest developing countries GDP of Developing Countries with Aggreko Presence Scale presence in countries with high GDP growth 3,500 5% 2014 GDP (USD bn) Linked to power…
and for Utility customers the power shortfall continues to increase Demand is projected to grow faster than supply Forecast Growth in Shortfall vs. GDP Growth in shortfall has slowed in line CAGR (14-19) with slower GDP growth 6%…
Delivering sustainable growth 16
Business priorities to deliver sustainable growth We are enhancing our existing competitive advantages Customer Tailoring sales and service channels to customers Focusing on key sectors Pursuing adjacencies Evaluating bolt-on M&A…
Rental Solutions 18
Improving customer service Rental Solutions Customer Global and national a/c management Global Account Global & large customers Key sector focus Management Single point of contact Consistency of service Oil & gas, mining,…
Enhancing processes and systems Rental Solutions Efficiency Deploy new systems and automation in the field Fleet optimisation and planning Remote monitoring of equipment (ARM, Louisiana; deployment across Rental Solutions)…
Bolt-on acquisitions a viable growth opportunity Rental Solutions Customer Geographic, sector and adjacent product opportunities Synergies from using our distribution network Cross selling where adjacent products are added Good…
Power solutions 22
Optimising deployment of resources Power Solutions Efficiency Reducing the cost base Removing duplication Criteria for Evaluation of Rightsizing functional support In-Country Presence Aggreko-related Optimising the depot footprint…
Using technology to reduce the total cost of power Power Solutions Technology Overall cost of power generation is important Relative Cost of Power (/MWh) Small units provide flexibility, 200 mobility and modularity 175 Mobile…
Assessing other market opportunities Power Solutions Technology Increasing gas availability is an opportunity Monetise stranded gas CNG/LNG is 60% premium to permanent power (85% for diesel) CNG/LNG could expand the market…
Improving sales expertise and customer service Power Solutions Customer Continue to build sales expertise for complex projects Sales expertise Increase technical capability Improve skills for complex Market approach projects…
Group 27
Streamlining our cost base Group Efficiency Reorganisation will remove duplication Regional structure led to duplication Streamlining our processes, improving customer service Improving procurement practices New procurement…
A high performance organisation Group Safety Enhancing Orange Rules Current behaviours Training and developing our people Committed Passionate Increasing expertise Fast paced Technical leadership Can-do attitude Customer…
Programme Management Office to drive delivery 2H 2015 1H 2016 2H 2016 1H 2017 Tailoring sales and service channels Customer Focusing on key sectors Pursuing adjacencies and evaluating bolt-on M&A opportunities Investing in…
Financial Implications 31
Aggreko is a growth business With a strong focus on margins and returns Revenue Markets are forecast to grow between 2% and 6% We expect to grow faster than our markets over the medium term Margins and Returns Self help measures…
Progress and performance Business Unit Key Initiatives Relevant KPIs Rental Solutions Tailoring sales and service channels to Revenue growth* customers Trading margin* Increasing market penetration ROCE* Improving processes and…
How we plan to use our capital Capital allocation framework Invest for Bolt-on M&A Sustainable Return surplus growth opportunities ordinary cash to dividend shareholders Maintain strong balance sheet Leverage c.1x net…
Building the future Our business model is strong and unique We see opportunities for growth in all of our markets Plans in place to execute on strategy and deliver growth Customer Technology Efficiency We expect to grow ahead of…
Q&A 36
Appendix 37
There is opportunity for growth in all our markets POWER SOLUTIONS RENTAL SOLUTIONS Industrial Utility Market Drivers GDP growth GDP growth Power shortfall Propensity to rent Propensity to rent GDP growth: 5% threshold Commodity…
Market engagement framework Activity Timing Content included Full Year Results March Revenue growth Customer satisfaction Fleet utilisation Emissions Order book Trading margins Order intake ROCE Off-hire rate Staff turnover Safety…
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