Ashtead Technology Holdings Plc · LSE:AT.
Ashtead Technology — FY2023 Earnings Presentation
24 slides from Ashtead Technology's earnings presentation, April 2024
Slide 1: 2023 Results Presentation
2023 Results Presentation April 2024
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: Continued strengthening of the business and its markets
Continued strengthening of the business and its markets Confidence in outlook for the business underpinned by increasing customer backlogs ▪ Revenues increased by 51% with growth across all geographic markets, driven by continued strong demand ▪ 35% organic growth Strong revenue ▪ 17% growth from M&
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 39 years £161m
Slide 5: Well positioned for continued growth
Well positioned for continued growth Delivering customer value through an unrivalled capability and a “one team” integrated project approach Survey & robotics Mechanical Asset solutions integrity Agility Collaboration Excellence 5
Slide 6: Financial Overview
Financial Overview 6
Slide 7: 2023: Delivering strong growth
2023: Delivering strong growth Record growth delivered organically supplemented by M&A Revenue Adjusted EBITA Cost Utilisation Net debt / Adjusted EBITDA £110.5m £36.2m 45% 1.3x FY22: £73.1m FY22: £19.9m FY22: 44% FY22: 1.0x Adjusted Adjusted ROIC Total Recordable EBITA Margin Incident Rate EPS 28%
Slide 8: A track record of growth and strong financial performance
A track record of growth and strong financial performance Strong organic growth supplemented by the acquisition of ACE Winches 28% Revenue1 (£m) Adjusted EBITDA1,2,4 (£m) Adjusted EBITA1,3,4 (£m) 40% 40% 39% 44% 41% 15% 26% 25% 15% 27% 33% 30% 149.6 45.4 60.9 39.1 9.2 12.6 110.5 36.2 48.3 73.1 28.3
Slide 9: Profit & Loss
Profit & Loss Record organic growth alongside positive impact of M&A delivered strong profit growth £m FY223 FY23 Overview ▪ FY23 revenues +51.1% Revenue 73.1 110.5 YoY performance 31.0% 51.1% ▪ 35% organic growth ▪ 17% growth from M&A – ACE Winches deal completed Nov 2023 Cost of sales (18.8) (24.2
Slide 10: Cashflow
Cashflow Strong operating and free cash flow conversion £m FY22 FY23 Operating and free cash flow conversion FY20 to FY23 (pre exceptionals) Adj. EBITDA 28.3 48.3 129% 119% Exceptional costs & FX (1.3) (3.6) 108% Gain on sale of fixed assets (0.8) (0.7) 90% Other 0.8 3.0 72% 75% Cash generated befor
Slide 11: Balance sheet
Balance sheet Strong balance sheet with year end net debt leverage at 1.3x (1.0x proforma) £m FY222 FY23 Working Capital to Revenues 12% 17% 3% 4% GBV of rental fleet 129.1 160.7 Accumulated depreciation of rental fleet (99.0) (97.7) NBV of rental fleet 30.1 63.0 2020 2021 2022 2023 Goodwill 66.0 77
Slide 12: Capital allocation priorities focus on investment in growth
Capital allocation priorities focus on investment in growth Consistent priorities with a sustainable, progressive dividend Medium Term Leverage Policy Adjusted Net Debt to EBITDA: 1.0x – 2.0x Debt overview Organic fleet growth Bolt-on acquisitions Shareholder returns ▪ Exercised one year extension o
Slide 13: Sustainability
Sustainability A clear commitment to the energy transition and sustainability ensures Ashtead Technology is well positioned to benefit all stakeholders 2023 achievements Focus on offshore renewables ▪ 50% growth in renewables revenues ▪ Renewables projects completed across 3 of our 4 regions ▪ Conti
Slide 14: Operational Overview
Operational Overview 14
Slide 15: Market backdrop strengthening, supportive of continued growth
Market backdrop strengthening, supportive of continued growth Ashtead Technology’s addressable market is expected to reach c.$3.5bn by 2027 Offshore greenfield investment by sanctioning year Total addressable market by cost group1 (capex committed)1 Historical Forecast 148 Average 144 139 (forecast)
Slide 16: Significant growth in offshore renewables forecast through to 2030
Significant growth in offshore renewables forecast through to 2030 194 offshore wind farms operational as of March 2024, forecast to exceed 500 by 2030 ▪ Global capacity (exc. China) of 173GW by 2030 – 21% CAGR from 2023 Source: Rystad Energy, Management Information 1 Excludes China 16
Slide 17: Key Ashtead Technology customers continue to build backlog
Key Ashtead Technology customers continue to build backlog Multi-year customer backlogs provides confidence on longevity of outlook Offshore relevant backlog Billion USD1 Subsea EPC backlog development by execution year per reported year ▪ Customer published backlogs have doubled in the past three y
Slide 18: Pricing & utilisation show continued positive trends
Pricing & utilisation show continued positive trends A tightening market is continuing to drive strong utilisation and increased pricing Cost utilisation continues to trend up1,2 Maintaining a price leadership position 2 44% 45% +13% 41% 43% 39% 37% 35% +6% +4% +4% +3% -6% 2017 2018 2019 2020 2021 2
Slide 19: 2022 acquisitions performing ahead of expectations
2022 acquisitions performing ahead of expectations Combined revenue growth of 30% since acquisition ▪ Highly complementary to mechanical solutions service line ▪ Fully integrated into the Ashtead Technology group with legacy entities wound up ▪ Investment in rental fleet adding additional capacity ▪
Slide 20: Continuing our focused M&A strategy
Continuing our focused M&A strategy M&A strategy set out at IPO remains focused on expanding operational breadth, depth and reach ACE Winches fits with our clear M&A strategic themes ▪ Consolidation of a highly fragmented market Synergistic opportunities to ▪ Geographic expansion enhance integrated
Slide 21: ACE Winches acquisition
ACE Winches acquisition A strategically and financially compelling acquisition Background Highly complementary to Ashtead Technology ▪ UK headquartered ACE Winches is a market-leader in the design, assembly and rental of lifting, pulling and deployment solutions to the offshore energy industry c80%
Slide 22: Outlook – positive momentum continues
Outlook – positive momentum continues Positive momentum continuing into 2024 supported by a strong market backdrop Leading position & positive market backdrop driving strong growth ▪ Continued to perform strongly in the first three months of 2024, supported by strengthening customer demand across bo
Slide 23: Appendix
Appendix
Slide 24: Reconciliation – 2023 adjusted to reported figures
Reconciliation – 2023 adjusted to reported figures Acquisition Restructuring Software Deferred Adjusted profit & loss (£m) Adjusted Amortisation FX Other Reported Costs Costs Costs finance cost Revenue 110.5 - - - - - - - 110.5 Gross profit 86.3 - - - - - - - 86.3 Administration expenses (52.2) - (0
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