Slide 1: Ambition with Purpose: Full Year Results
AMBITION WITH PURPOSE FULL YEAR RESULTS 15 June 2021
Slide 2: Legal Notice
LEGAL NOTICE This presentation has been prepared to inform investors and Some of the factors which may adversely impact some of prospective investors in the secondary markets about the these forward looking statements are discussed in the Group and does not constitute an offer of securities or Princ
Slide 3: Delivering for all our stakeholders
DELIVERING FOR ALL OUR STAKEHOLDERS Our people Our customers Our investors Health and safety always top priority; Essential service provider £1bn of pre-tax profit record safety year Remained open across our network Reduced leverage from top to bottom of No COVID related redundancies tar
Slide 4: Highlights
HIGHLIGHTS A year of market leading performance; demonstrating the strength and flexibility in our model Profit before tax of £998m (2020: £1,061m) Record free cash flow of £1,382m (2020: £792m) Reduced debt and lowered leverage1 to 1.4 times net debt to EBITDA 29 greenfields opened in Nor
Slide 5: 2021/22 Outlook
2021/22 OUTLOOK Guidance1 Rental revenue1 - US 6 – 9% - Canada 20 – 25% - UK 5 – 8% - Group 6 – 9% Capital expenditure (gross) 2 £1.37 – 1.54bn Free cash flow2 £600 – 800m 1 Represents year-over-year rental revenue growth. Canada includes full year impact of William F. White. 2 Stated at £1 = $1.40
Slide 6: Financial Review
FINANCIAL REVIEW MICHAEL PRATT 6 Full year results ¦ 30 April 2021
Slide 7: Group Full Year Results
GROUP FULL YEAR RESULTS £m 2021 2020 Change1 Revenue 5,031 5,054 3% ‐ of which rental 4,473 4,606 1% Operating costs (2,730) (2,678) 6% EBITDA 2,301 2,376 1% Depreciation (1,104) (1,091) 5% Operating profit 1,197 1,285 -3% Net interest (199) (224) -8% Profit before amortisation, exceptional items an
Slide 8: US Full Year Results
US FULL YEAR RESULTS $m 2021 2020 Change Revenue 5,418 5,490 -1% ‐ of which rental 4,933 5,046 -2% Operating costs (2,783) (2,769) 1% EBITDA 2,635 2,721 -3% Depreciation (1,190) (1,161) 2% Operating profit 1,445 1,560 -7% Margins ‐ EBITDA 49% 50% ‐ Operating profit 27% 28% Return on investment 20% 2
Slide 9: Canada Full Year Results
CANADA FULL YEAR RESULTS 2021 2020 Change C$m Legacy WFW As reported Revenue 372 129 501 421 19% ‐ of which rental 317 119 436 361 21% Operating costs (212) (70) (282) (264) 7% EBITDA 160 59 219 157 39% Depreciation (91) (30) (121) (103) 18% Operating profit 69 29 98 54 80% Margins ‐ EBITDA 43% 46%
Slide 10: UK Full Year Results
UK FULL YEAR RESULTS £m 2021 2020 Change Revenue 635 469 35% ‐ of which rental 481 408 18% Operating costs (442) (320) 38% EBITDA 193 149 30% Depreciation (132) (113) 17% Operating profit 61 36 67% Margins ‐ EBITDA 30% 32% ‐ Operating profit 10% 8% Return on investment 10% 5% The results in the tabl
Slide 11: Cash Flow
CASH FLOW FULL YEAR RESULTS £m 2021 2020 EBITDA before exceptional items 2,301 2,376 Cash conversion ratio1 99% 102% Cash inflow from operations2 2,287 2,430 Replacement and non-rental capital expenditure (676) (858) Rental equipment and other disposal proceeds received 305 258 Interest and tax paid
Slide 12: Net Debt
NET DEBT £m 2021 2020 Leverage (excluding impact of IFRS 16) Opening net debt 5,363 3,745 2.5 2.3 Impact of transition to IFRS 16 - 883 Opening net debt including IFRS 16 5,363 4,628 2.0 2.0 1.9 Change from cash flows (1,045) 314 1.8 1.8 1.8 1.7 1.7 Translation impact (343) 133 1.6 1.4 New lease lia
Slide 13: Presentational Currency
PRESENTATIONAL CURRENCY CHANGE TO US DOLLARS FROM MAY 2021 Changing presentational currency to US dollars will result in: $m 2021 2020 more accurate reflection of underlying performance Revenue 6,639 6,399 ‐ of which rental 5,902 5,833 closer alignment with earnings and asset base Operating co
Slide 14: Operational Review
OPERATIONAL REVIEW BRENDAN HORGAN 14 Full year results ¦ 30 April 2021
Slide 15: US Trading
US TRADING Rental revenue Sunbelt US: fleet on rent Q1 Q2 Q3 Q4 Full year General Tool -9% -7% -4% +7% -4% Specialty +6% +18% +6% +18% +13% Oil and gas -62% -53% -40% -25% -44% Total -8% -3% -3% +8% -2% Rental only revenue presented on a billing day basis May May Jun Jul Jul Aug Sep Oct Oct Nov Dec
Slide 16: US Construction Market Outlook
US CONSTRUCTION MARKET OUTLOOK Dodge construction starts Construction starts return to growth in 2021 and reach Indexed: 2000=100 250 pre-COVID levels in 2022 230 210 190 170 Although the construction starts forecasts anticipate some 150 130 increase in infrastructure, construction put in place
Slide 17: Canada Trading
CANADA TRADING Fleet on rent (excluding William F. White) Underlying Canadian business pure rental revenues declined only 2% while delivering record profit and margins Gained share through market outperformance Established specialty business platform and showing early results Lighting, Grip
Slide 18: UK Trading
UK TRADING Fleet on rent Business poised to improve market position following Sunbelt 3.0 launch Significant market outperformance driven by: COVID-19 response efforts Share gains in broad end markets Fleet on rent above comparable 2019 levels, excluding fleet on rent supporting DoH May Ju
Slide 19: Group Fleet Plan
GROUP FLEET PLAN 2020 2021 2022 Actual Actual Guidance1 US ($m) - rental fleet 1,452 576 1,200 – 1,400 - non-rental fleet 234 102 300 1,686 678 1,500 – 1,700 Canada (C$m) - rental fleet 116 79 200 – 230 - non-rental fleet 12 17 50 128 96 250 – 280 UK (£m) - rental fleet 57 132 110 – 120 - non-rental
Slide 20: Sunbelt 3.0
SUNBELT 3.0 20 Full year results ¦ 30 April 2021
Slide 21: Sunbelt 3.0 strategy powered by five actionable components
SUNBELT 3.0 STRATEGY POWERED BY FIVE ACTIONABLE COMPONENTS 1 GROW GENERAL TOOL Actionable Advance our clustered market approach through a proven playbook to meet demand and components: enable increased rental penetration in North America while optimising our operational & ADVANCE OUR CLUSTERS networ
Slide 22: Grow General Tool
GROW GENERAL TOOL CONTINUING TO ADVANCE OUR CLUSTERS THROUGH SUNBELT 3.0 CLUSTER VS. NON-CLUSTER US Comparison to similar sized Metric / KPI non-clustered markets1 Rental markets Top 25 26-50 51-100 100-210 Active customer count 2.2x customers Rental market % 57% 19% 16% 8% Revenue 15% more revenue
Slide 23: Specialty market sizing, rental penetration and share
SPECIALTY MARKET SIZING, RENTAL PENETRATION AND SHARE REVENUE WILL GROW BY $1BN IN 3.0 WITH AMPLE OPPORTUNITY BEYOND CURRENT, PROJECTED AND ILLUSTRATIVE RENTAL REVENUE BY BUSINESS LINE, $M 10% FY21 total rental revenue RENTAL MARKET Incremental projected FY24 total rental revenue via existing locati
Slide 24: UK: Driving Sustainable Margins and Returns
UK DRIVING SUSTAINABLE MARGINS AND RETURNS Organic Enhanced and Strong free Sustainable returns growth focused sustained margins cash flow 12–14% RoI 24 Full year results ¦ 30 April 2021
Slide 25: Our technology focus centres on continuous improvement
OUR TECHNOLOGY FOCUS CENTRES ON CONTINUOUS IMPROVEMENT DELIVERY OVER THE COURSE OF 3.0 CUSTOMER EXPERIENCE Enabling The Perfect RentalTM Support an omni-channel experience Predictive analytics will aid customer experience ORDER CAPTURE AND Creating a larger funnel FULFILLMENT Process optim
Slide 26: Lead with ESG
LEAD WITH ESG Group commitment to reduce carbon intensity 15% by 2024, and 35% by 2030 Environmental and social aspects of ESG are a catalyst for enhanced structural change; specifically increased rental penetration and the big getting bigger Health and safety – culture of continuous improveme
Slide 27: Capital Allocation
CAPITAL ALLOCATION CONSISTENTLY APPLIED POLICY CONTINUES CLEAR PRIORITIES APPLICATION Organic fleet growth Same-store £718m invested in the business Greenfields 29 greenfields opened in North America £125m spent on bolt-ons, with seven locations added Bolt-on acquisitions Good pipeline R
Slide 28: Summary
SUMMARY A market leading performance across all divisions Strength of the model and breadth of markets demonstrated with growth in Specialty and resiliency in General Tool Launch of Sunbelt 3.0 – Ambition with Purpose Well-placed to strengthen our market position in all geographies Long ru
Slide 29: Appendices
APPENDICES 29 Full year results ¦ 30 April 2021
Slide 30: Divisional Performance: Fourth Quarter
DIVISIONAL PERFORMANCE FOURTH QUARTER Revenue EBITDA Profit 2021 2020 Change1 2021 2020 Change1 2021 2020 Change1 US ($m) 1,383 1,210 14% 643 532 21% 339 221 54% Canada (C$m) 144 100 45% 65 26 151% 34 (3) nm US (£m) 997 963 3% 462 424 9% 243 176 37% UK 191 104 83% 57 27 107% 22 (1) nm Canada (£m) 83
Slide 31: Divisional Performance: Twelve Months
DIVISIONAL PERFORMANCE TWELVE MONTHS Revenue EBITDA Profit 2021 2020 Change1 2021 2020 Change1 2021 2020 Change1 US ($m) 5,418 5,490 -1% 2,635 2,721 -3% 1,445 1,560 -7% Canada (C$m) 501 421 19% 219 157 39% 98 54 80% US (£m) 4,106 4,336 -5% 1,996 2,149 -7% 1,095 1,232 -11% UK 635 469 35% 193 149 30%
Slide 32: US Fleet Profile
US FLEET PROFILE Smooth fleet profile Benefits of prolonged cycle and our growth strategy Strong position providing optionality through the cycle Flexibility to turn replacement into growth Strengthens partnership with suppliers through predictability 32 Full year results ¦ 30 April 2021
Slide 33: Robust and Flexible Debt Structure
ROBUST AND FLEXIBLE DEBT STRUCTURE Debt maturity £4,000m Facilities committed for average of 5 years at a weighted average cost of less than 4% £3,000m Fixed / floating external borrowing ratio: 71% / 29% £2,000m £1,000m No financial monitoring covenants whilst availability exceeds $410m (Apri
Slide 34: Cash Flow Funds All Fleet Investment
CASH FLOW FUNDS ALL FLEET INVESTMENT (£m) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 EBITDA before exceptional items 2,301 2,376 2,107 1,733 1,504 1,178 908 685 519 381 284 255 356 364 310 225 170 EBITDA margin 46% 47% 47% 47% 47% 46% 45% 42% 38% 34% 30% 30%
Slide 35: $3,011m of Availability at 30 April 2021
$3,011M OF AVAILABILITY AT 30 APRIL 2021 Book value Borrowing base Senior debt £6,363m (April 20: £7,360m) £670m Calculation: £4,593m (April 20: £5,532m) Inventory – 50% of book value £541m Receivables – 85% of net eligible receivables £5,330m Fleet and vehicles – 85% of net appraised market value o
Slide 36: Debt and Covenants
DEBT AND COVENANTS Facility Interest rate Maturity $4.1bn first lien revolver LIBOR + 125-175 bps December 2023 $600m senior notes 4.150% August 2025 Debt $600m senior notes 5.250% August 2026 $600m senior notes 4.375% August 2027 $600m senior notes 4.000% May 2028 $600m senior notes 4.250% November
Slide 37: Increased Footprint and Market Share
INCREASED FOOTPRINT AND MARKET SHARE April 2012 April 2021 0% 10% 15% April 2012 Location growth May 2012 to April 2021 Source: IHS Markit / ARA: State of the Equipment Rental Industry, April 2021 and management estimates 37 Full year results ¦ 30 April 2021
Slide 38: Location Growth during 3.0
LOCATION GROWTH DURING 3.0 CLEARLY DEFINED April 2021* 936 Sunbelt 3.0 +298 1,234 April 2024 April 2021 Sunbelt 3.0 – May 2021 – April 2024 * Excludes two Sunbelt 3.0 locations opened in April 2021 38 Full year results ¦ 30 April 2021
Slide 39: Environmental Roadmap
ENVIRONMENTAL ROADMAP INITIATIVES ON THE PATH TO 35X30 NEAR TERM: 3.0 PERIOD MEDIUM LONG TERM TARGET: 15% BY 2024 TERM GOAL: 35% BY 2030 Retrofit of heating and hot Migration to alternative 1 water infrastructure energy for HGVs/tractors 2 Step change in 3 service/sales vehicle All new vehicles use
Slide 40: US Market Share
US MARKET SHARE 2010 2021 Future 5% 4% 14% 20%+ 3% 3% 6% 11% 45% All others 3% 13% 7% One or two 66% others 20% United Rentals Sunbelt RSC Herc Rentals Top 4-10 Top 11-100 Other Two or three have 50%+ of the market 40 Full year results ¦ 30 April 2021
Slide 41: Key Metrics Through the Cycle
IMPORTANT TO NOT LOSE SIGHT OF THROUGH THE CYCLE KEY METRICS Group RoI Group EBITDA margin Group adjusted EPS % % p 19 19 20 19 50 46 47 47 47 47 46 200 18 18 45 18 17 45 42 180 174 175 16 166 15 15 15 38 38 16 40 160 14 35 35 33 34 14 13 35 140 128 12 30 30 12 30 120 104 10 10 25 100 85 8 7 20 80 6