Ashtead Technology Holdings Plc · LSE:AT.
Ashtead Technology — FY2022 Earnings Presentation
24 slides from Ashtead Technology's earnings presentation, May 2023
Slide 1: 2022 Results Presentation
2022 Results Presentation May 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by, and is the sole responsibility of, Ashtead Technology Holdings plc (the “Company”), being the current holding company of the Ashtead Technology Holdings plc group (the “Group”). For the purpose of this disclaimer notice, “presentation” sh
Slide 3: Leading position & positive market backdrop driving strong growth
Leading position & positive market backdrop driving strong growth Increased confidence in outlook for the business underpinned by customers reporting highest backlogs in a decade ▪ FY22 revenues +31.0% - growth across all geographic markets, driven by higher demand in both offshore renewables and of
Slide 4: Ashtead Technology overview
Ashtead Technology overview ▪ Providing equipment rental, advanced underwater technologies & integrated support services to the global offshore energy sector ▪ Clear growth strategy through expanding the breadth, depth and reach of our operations both organically and through M&A Over 38 years £129m
Slide 5: Financial Overview
Financial Overview
Slide 6: 2022: Delivering beyond expectations
2022: Delivering beyond expectations Robust first year trading as a plc driven predominately by organic growth Revenue Adjusted EBITA Cost Utilisation Net debt / Adjusted EBITDA £73.1m £20.1m 44% 1.0x FY21: £55.8m FY21: £13.7m FY21: 43% FY21: 1.0x Adjusted Adjusted ROIC Total Recordable EBITA Margin
Slide 7: Track record of strong financial performance
Track record of strong financial performance FY22 demonstrates continued strong organic growth supplemented by two H2 acquisitions Revenue1,4 (£m) Adjusted EBITDA1,2,4 (£m) Adjusted EBITA1,3,4 (£m) 46% 40% 40% 39% 45% 26% 25% 15% 15% 25% 25% 27% 28% 7.8 5.8 5.0 5.8 2.1 - 1.7 73.1 28.6 20.1 55.8 47.8
Slide 8: Profit & Loss
Profit & Loss Profit and loss demonstrates first full year of plc costs £m FY21 FY22 Overview ▪ FY22 revenues +31.0% - growth across all geographic markets, driven by higher demand in both offshore renewables Revenue 55.8 73.1 and offshore oil and gas YoY performance 31.6% 31.0% ▪ 23.7% organic grow
Slide 9: Cashflow
Cashflow Track record of delivering strong operating and free cash flow conversion £m FY21 FY22 Operating and free cash flow conversion FY20 to FY22 (pre exceptionals) Adj. EBITDA 22.4 28.6 129% Exceptional costs (4.5) (0.9) 119% Gain on sale of fixed assets (0.9) (0.8) 90% Other (0.2) 0.8 72% 73% C
Slide 10: Balance sheet
Balance sheet Strong balance sheet with year end net debt leverage at 1.0x £m FY21 FY22 Working Capital to Revenues 22% 12% 17% 3% GBV of rental fleet 104.9 129.1 Accumulated depreciation of rental fleet (85.6) (99.0) NBV of rental fleet 19.2 30.1 2019 2020 2021 2022 Goodwill 48.7 66.0 Intangible as
Slide 11: Capital allocation priorities focus on investment in growth
Capital allocation priorities focus on investment in growth First dividend recommended and refinancing completed to support future growth Medium Term Leverage Policy Adjusted Net Debt to EBITDA: 1.0x – 2.0x Refinancing overview Organic fleet growth Bolt-on acquisitions Shareholder returns ▪ Refinanc
Slide 12: Operational Overview
Operational Overview
Slide 13: Market backdrop supportive of continued growth
Market backdrop supportive of continued growth Ashtead Technology’s addressable market is expected to reach more than $2bn by 2025 supported by record global O&G upstream free cash flows Total addressable market by cost group1 Total free cash flows from Global O&G upstream portfolio Billion USD 1600
Slide 14: Record backlogs for key Ashtead Technology customers
Record backlogs for key Ashtead Technology customers Significant uplift in customer backlogs driving market tightness for equipment and personnel in turn driving higher propensity to rent Offshore relevant backlog Billion USD1 45 +66% “Record results in 2022, supported by the Offshore wind 2022Q4 Pr
Slide 15: Pricing & utilisation show continued positive trends
Pricing & utilisation show continued positive trends A tightening market is continuing to drive strong utilisation and increased pricing Tendering activity increasing Consistent Cost Utilisation1 Disciplined Pricing 2021 2022 2023 44% 41% 43% +4% 39% 37% 35% +6% +4% -6% +3% Jan Feb Mar Apr May Jun J
Slide 16: Other operational updates
Other operational updates Continued investment in people, equipment and processes for growth ▪ Employee headcount increased to 260, positioning the business for continued growth ▪ Further strengthening of the senior team across the service lines, regions and group support ▪ Investment of £13.1m in e
Slide 17: M&A strategy
M&A strategy M&A strategy set out at IPO continues with focus on expanding operational breadth, depth and reach Existing Capability / Market Penetration A clear and focused set of M&A criteria… Service line / End market APAC Middle East Europe Americas ▪ Consolidation of a highly fragmented market S
Slide 18: Hiretech acquisition
Hiretech acquisition Strong synergies and complementary capabilities to expand our mechanical solutions service line Background ▪ Founded in 2011, providing back deck and subsea equipment along with a suite of complementary support ▪ 80% of revenues derived from equipment rental ▪ Pre-acquisition su
Slide 19: Environmental, Social, Governance
Environmental, Social, Governance A clear commitment to the energy transition and focus on ESG ensures Ashtead Technology is well positioned to benefit all stakeholders 2022 achievements Focus on offshore renewables ▪ 22% growth in renewables revenues ▪ Appointed global business development manager
Slide 20: Outlook – positive momentum continues
Outlook – positive momentum continues Positive momentum on pricing and utilisation has continued through the traditionally seasonally weaker Q1 Leading position & positive market backdrop driving strong growth ▪ Continued to perform strongly in the first three months of 2023, ▪ Activity levels conti
Slide 21: Appendix
Appendix Ashtead Technology
Slide 22: Reconciliation – 2022 adjusted to reported figures
Reconciliation – 2022 adjusted to reported figures Acquisition Restructuring Adjusted profit & loss (£m) Adjusted Other Reported Adjusted EBITDA / EBITA / Profit before tax (£m) Costs Costs Revenue Reported operating profit 18.1 73.1 - - - 73.1 Gross profit Depreciation 8.4 54.3 - - - 54.3 Administr
Slide 23: Overheads
Overheads Overhead increased 39% year on year – first full year as a plc, investment in employees and re-introduction of bonus scheme £m FY21 FY22 Overview Revenue 55.8 73.1 YoY performance 31.6% 31.0% ▪ Staff costs increased due to: ▪ Increase in employees from 204 to 260 Bonus 0.3 2.5 ▪ 3% pay inc
Slide 24: Ashtead Technology
eb Ashtead Technology
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