Speedy Hire Plc · LSE:SDY
Speedy Hire — Investor Day (July 2018)
36 slides from Speedy Hire's investor day presentation, Jul 20, 2018
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY Friday 20 July 2018
Slide 2: Agenda
Agenda Time Presenter 10:45 Coffee and welcome 11:00 Introduction Russell Down, Chief Executive 11:15 Tour of Tamworth site John Richards, NDC Manager 12:00 Lunch 12:30 Operating model Chris Morgan, Group Finance Director 13:00 Speedy as a digital business Mark Sunderland, CIO 13:40 Colleague engage
Slide 3: Introduction
Introduction Russell Down, Chief Executive
Slide 4: Market
Market • The UK construction rental market remains highly fragmented and competitive • Significant scale infrastructure projects started/ in pipeline • Top five players have c.30% share • Speedy share is c.7%; addressable market is c.£2.0bn • Relationships with 85 of the top 100 UK contractors • Spe
Slide 5: Trading update
Trading update • Q1 FY19 revenue up 6.6% • UK and Ireland like for like revenue up c.1% • Middle East performing well; strong pipeline of opportunities • Net debt £67.0m (31 March 2018: £69.4m) • David Shearer appointed Chairman from 1 October 2018 5
Slide 6: Network coverage
wv Network coverage @ NDC and MSC © Superstores © Express depots
Slide 7: Tamworth
Tamworth • National Distribution Centre • 10 acre site • 143 staff • Capabilities: • Tools and survey repair and refurbishment • Power and plant repair and servicing • Events trading • Lloyds British • Platform Sales and Hire • Transport hub • Internal and external training centre • Customer facilit
Slide 8: Tour of Tamworth facility
Tour of Tamworth facility John Richards, NDC Manager
Slide 9: Health and safety
Health and safety • Safety – priority • Hi vis • Keep to walkways • Hazards • No fire alarms planned • Presentation stations 9
Slide 10: Presentation stations
Presentation stations 1 Training and survey 5 5 2 2 Repair, asset Events, fencing replenishment and and fuel ready for rent 4 4 3 Power, plant and Refurbishment, powered access trunking and integration damage recovery 10
Slide 11: Site tour presentation stations
Site tour presentation stations Goods Available Refurbishment Out Equipment 2 3 4 Power and Events/ Survey Repairs Plant Fencing 5 Training 1 Goods In Small Access You are Fuel here Large Powered Power and Plant Access 11
Slide 12: Operating model
Operating model Chris Morgan, Group Finance Director
Slide 13: Operating model improving business performance
Operating model improving business performance Investment Customer Operational Reporting KPIs appraisals insights performance 13
Slide 14: ROCE target
ROCE target 16.0 % 15.0 % 14.0 % Enablers include: 13.0 % • Digital business 15.0 % 12.0 % • Artificial intelligence 11.0 % 11.5 % • Colleague engagement 10.0 % • Testing, inspection and certification 14
Slide 15: Speedy as a digital business
Speedy as a digital business Mark Sunderland, Chief Information Officer
Slide 16: Business intelligence
Business intelligence • Centralised control of reporting – single source of the truth • Focus on key business metrics – enablers and resulting • Self service dashboards with secure permission access • Easy to use graphical user interface with drill down to lowest level • Driving business results: •
Slide 17: What does a digital hire business look like?
What does a digital hire business look like? People Key overarching principles: • Data centric organisation • Culture change required • Combination of people, business process and “things” • Built on trust and ease of transaction Data Intelligence Customers Products and services 17
Slide 18: Speedy's digital vision and objectives
Speedy’s digital vision and objectives • Complementary to our current offering • Be the easiest transaction possible for our customers – any place, any time, any device purchasing, hiring and off hiring • Reduce the cost to serve through automation and intelligence • Self serve, educate and personal
Slide 19: Complexity of a hire business
Complexity of a hire business c.220 depots 1,060 vehicles 3,500 product lines c.50,000 customers Pricing Cyclicality Seasonality Variable hire periods Repair cycle c.300,000 itemised assets 19
Slide 20: Artificial intelligence
Artificial intelligence Asset optimisation • Net demand calculation developed for each product at each location through machine learning • Ability to forecast asset requirement based around certainty of fulfilment • 37 million calculations per period • Quarterly forecast of asset holding • Customer
Slide 21: Artificial intelligence
Artificial intelligence Revenue maximisation • 50,000+ customers within database • Analysis of customer spending behaviour and patterns • Third party data considered • Improved segmentation of customer base • Ability to rank customers from a risk and opportunity perspective • More focused sales targ
Slide 22: Artificial intelligence
Artificial intelligence The future • Hundreds of millions of lines of data consistently being reviewed • Continue to build the machine learning capability and enhance algorithms • Additional third party data consideration • Deeper integration to fully automate business processes • Opportunity to fur
Slide 23: Colleague engagement
Colleague engagement Cathy Dawson, HR Director
Slide 24: Customer experience – a differentiator
Customer experience – a differentiator We’ve listened to our customers • Service and relationships are key to customer loyalty – more important than price • Communicate our total service offering • Capital commitment – Trust us to deliver 24
Slide 25: Customer led culture
Customer led culture Easy to do business with – internal and Employee advocacy external Measure and celebrate Customer led Think and act “customer” success Great relationships Promises delivered 25
Slide 26: Culture
Culture • Customer led • Trust us to deliver • Employee advocacy • Empowered • Disciplined • Changing behaviours 26
Slide 27: Training and development
Training and development • High potential programme • Emerging • Accelerate • Evolve • Mandatory training • Induction • Performance reviews 27
Slide 28: Lloyds British
Lloyds British Ryan White, Lloyds British Director
Slide 29: Overview and history
Overview and history • Formed in 1812 by the ‘Association of Wrought Iron Chain Manufacturers’ • Developed the first standard for testing and certifying chains and anchors • Now widely recognised as a market leader in providing compliance and lifting solutions • National coverage both national plann
Slide 30: Service capabilities
Service capabilities • Addressable market value is estimated at c.£1.45bn per annum • TIC is the largest market with an addressable market of c.£850m • Other services are complementary to the TIC sector 30
Slide 31: Test, inspection and certification overview
Test, inspection and certification overview • Sector is regulated by the Health and Safety Executive (HSE) and local authorities • Owners of equipment within the workplace must be able to demonstrate compliance with the relevant regulations • Types of equipment certified includes: • Lifting and work
Slide 32: Lloyds British integration
Lloyds British integration • A smooth and efficient integration process with no disruption to the business or customers • The critical success factors were: • Speedy expertise • Collaboration and support • Customer and staff retention • Business continuity • Financial savings • Brand identity mainta
Slide 33: Lloyds British growth strategy
Lloyds British growth strategy • Continuous development of TIC offering and associated revenues by: • Identifying existing customers who own equipment which needs to be inspected under legislation • Winning national contracts from key competitors • Developing partnerships with insurance brokers • In
Slide 34: Summary
Summary Russell Down, Chief Executive
Slide 35: Summary
Summary • Management information significantly enhanced • Artificial intelligence provides opportunities to improve performance further • Customer led service approach • Culture change ongoing: empowerment within a disciplined framework • Services business growth improving ROCE 35
Slide 36: Le , Pri
Le , Pri oof