Interim Results For the six months ended 30th June 2014
Agenda 1. Introduction Ken Hanna, Chairman 2. Financial Review Carole Cran, CFO 3. Operating Review & Outlook Angus Cockburn, Interim CEO 2
Financial Review Angus Cockburn, CFO Introduction Ken Hanna, Chairman 3
Financial Review Carole Cran, CFO 4
Encouraging start to the year Reported Underlying Underlying revenue up 12% m 1H14 1H13 Change Change Power Projects +14% Revenue 768 760 1% 12% Local +10% Revenue excl. 745 745 -% pass-through fuel Underlying trading profit…
Currency translation is having a significant impact Trading m Revenue Profit 1H13 760 157 Currency impact from strength of GBP Currency Translation (80) (23) & ongoing emerging market currency 2013 Pass Through Fuel (15) 2…
Generated good operating cashflow m 1H14 1H13 Working capital outflow of 61m Operating Profit(1) 142 159 Increased activity drives gross debtors higher Depreciation(1) 130 137 PP debtor days up 5 days since Dec 13; EBITDA 272…
Strong balance sheet maintained 1H14 1H13 EBITDA 272m 296m Strength relative to key financial covenants Capital investment 121m 123m Net debt to EBITDA at 0.9x Net borrowings 537m 552m following return of value Interest cover…
Cashflows fund significant investment & shareholder returns Business model highly cash generative 1.2bn invested in capex since 2009 Cumulative shareholder returns of approx 600m in same period Net debt only 405m higher Priority…
Fleet utilisation starting to improve Power Fleet at 30 Jun 2014 Power Fleet at 30 Jun 2013 MW MW Power Projects utilisation improving 4,918 Q2 utilisation 5pp better than 4,654 34 217 5,070 Q1 at 77% 358 HFO 4,568 107 1,170…
Operating Review & Outlook Angus Cockburn, Interim CEO
Highlights & Lowlights Highlights Strong growth in 2 of 3 regions in revenue and trading profit EMEA+14%/69%, Americas +25%/26% Double digit revenue growth in Local business Broadly spread across developed and emerging markets…
Good underlying growth across both businesses Revenue Trading Profit Strong performance in 1H14 1H13 Underlying 1H14 1H13 Underlying Local business with m m % m m % underlying revenue up 10% Margins & returns Local Business 431…
Very strong performance in EMEA Local business underlying revenue up 14% m 1H14 1H13 Reported Underlying (ex fuel) Change Change Broadly spread across countries and sectors Local 161 149 8% 14% Oil & gas strong - Russia, Romania…
Challenging first half in APAC m 1H14 1H13 Reported Underlying Change Change Local business revenue down 11% Local 53 69 (24)% (11)% Australia weaker with mining sector decline Power Projects 72 97 (26)% (20)% and low level of…
Strong performance in the Americas m 1H14 1H13 Reported Underlying Change Change Local business revenue up 14% Local 218 215 2% 14% Broadly spread growth in North America Power Projects 122 102 20% 51% Continued strong growth in…
Full year expectations unchanged Group has made encouraging progress in the first half of the year Second half comparators are more challenging Third quarter is important for the Local business Customers remain cautious but order…
Q&A
Appendix
Revenue mix stable m Revenue % of Revenue (ex fuel) Underlying(1) Change 1H14 1H13 1H14 1H13 % pp Power 522 536 10% 70% 72% (2) Temperature Control 52 56 2% 7% 8% (1) Oil-Free Air 14 15 (1)% 2% 2% - Total Rental 588 607 9%…
Main impact on balance sheet is currency translation of c. 136m m 1H14 1H13 Intangible assets/goodwill 151 171 Tangible fixed assets 1,124 1,304 Working capital 317 278 Retirement benefit obligation (3) (2) Derivative financial…
Foreign exchange translation impact significant FX Rates Revenue (m) FY13 Actual at FY13 26 July FY13 % 26 July 2014 Variance Average 2014 Actual Variance Rates US Dollar 1.57 1.70 983 906 (77) (8)% Euro 1.18 1.26 96 90 (6) (7)%…
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