Ashtead Technology Holdings PLC · LSE:AT.
Ashtead Technology — H1 2023 Earnings Presentation
26 slides from Ashtead Technology's earnings presentation, September 2023
Slide 1: HY 2023 Results Presentation
HY 2023 Results Presentation September 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: Continuing to deliver strong growth
Continuing to deliver strong growth Increased confidence in outlook for the business underpinned by strengthening market ▪ HY23 revenues +57.1% on prior year ▪ Continued strengthening of market conditions across both offshore renewables and offshore oil and gas Continued revenue ▪ 40.5% organic grow
Slide 4: Ashtead Technology delivers services across the full offshore lifecycle
Ashtead Technology delivers services across the full offshore lifecycle A technology and service capability that spans the lifecycle of offshore energy infrastructure Site characterisation Construction & installation Operations & maintenance Life extension Decommissioning Survey technologies & Asset
Slide 5: What makes Ashtead Technology unique?
What makes Ashtead Technology unique? A key strength is our collective capability delivered through our “one team” integrated project approach, delivering vessel time savings & customer project efficiencies Survey & robotics Largest independent Trusted partner Building capability Plugging technology
Slide 6: Financial overview
Financial overview 6
Slide 7: HY 2023 highlights: A strong start to the year
HY 2023 highlights: A strong start to the year Record growth and strong returns delivered in H1 Revenue Adjusted EBITA Cost Utilisation Net debt / Adjusted EBITDA £15.7m 92% 45% 57% £49.8.m 0.7x HY22: £31.7m HY22: £8.2m HY22: 44% HY22: 0.9x Adjusted EBITA Adjusted Basic ROIC Total Recordable Margin
Slide 8: Continuing track record of growth and strong financial performance
Continuing track record of growth and strong financial performance Track record of growth and delivering solid margins Revenue1 (£m) Adjusted EBITDA1,2 (£m) Adjusted EBITA1,3 (£m) 40% 40% 42% 43% 41% 43% 15% 25% 31% 28% 31% 7.8 5.8 5.0 73.1 3.2 28.6 2.1 20.1 55.8 49.8 22.4 1.6 21.3 15.7 42.4 13.7 17
Slide 9: Profit & loss
Profit & loss Continued organic growth alongside positive impact of M&A delivers strong profit growth £m HY22 HY23 Overview Revenue 31.7 49.8 ▪ Revenue grew by 57.1% from HY22 to HY23 YoY performance 28.5% 57.1% ▪ 40.5% organic growth – driven by continued growth in offshore oil and gas, and renewab
Slide 10: Cashflow
Cashflow Continuing track record of delivering strong operating cash flow conversion £m HY22 HY23 Operating and free cash flow conversion (pre exceptionals) Adj. EBITDA 12.3 21.3 129% 119% Exceptional costs (0.1) (0.0) 98% Gain on Sale of fixed assets (0.6) (0.5) 90% 80% Other 0.5 1.6 72% 73% Cash g
Slide 11: Balance Sheet
Balance Sheet Further strengthened balance sheet with leverage at 0.7x and delivering increased asset returns (ROIC of 26%) £m HY22 FY22 HY23 Working Capital to Revenues 12% 17% 3% 16% 9% GBV of rental fleet 115.0 129.1 130.3 Accumulated depreciation of rental fleet (90.9) (99.0) (97.6) NBV of renta
Slide 12: Maintaining capital discipline with focus on investment in growth
Maintaining capital discipline with focus on investment in growth Focussed on building long-term value for shareholders 1 2 3 Organic fleet growth Bolt-on acquisitions Shareholder returns Continued investment in maintenance Deploy free cash flow and balance sheet Sustainable progressive final divide
Slide 13: Operational overview
Operational overview 13
Slide 14: 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 resulting in record high customer backlogs Addressable market1 by cost group Customer backlogs reach new record levels2 BUSD BUSD 2.5 70 CAGR +80% +12% 2.16 60 2.0 1.93
Slide 15: Offshore oil and gas sanctioning activity provides multi-year visibility
Offshore oil and gas sanctioning activity provides multi-year visibility UK oil and gas greenfield sanctioning down whilst Norway and Latin America booming Sanctioning offshore greenfield investments (Capex committed) 1 Billion USD Global UK and Norway 140 ▪ Globally, offshore oil & gas greenfield s
Slide 16: Growth of offshore wind in international markets
Growth of offshore wind in international markets High auctioning levels support strong backlogs with industry expanding across the globe Awarded capacity through auctions per year1 (2023 based on planned/announced awards) GW, per year Global1 UK ▪ 2023 is expected to surpass 2022 auctioning levels w
Slide 17: Pricing & utilisation show continued positive trends
Pricing & utilisation show continued positive trends A tightening market is contributing to strong utilisation and increased pricing Tendering activity remains high Consistent cost utilisation1 Disciplined pricing 2021 2022 2023 45% 44% 43% +9.5% 41% 39% 37% 35% +4% +6% +4% +3% -6% Jan Feb Mar Apr M
Slide 18: Other operational updates
Other operational updates Continued investment in people, equipment and processes for growth Investing in senior team ▪ Christine Cochrane, first HR Director appointed to further strengthen leadership team ▪ Over 20 years’ experience in a breadth of HR disciplines covering talent acquisition, traini
Slide 19: M&A: strategic rationale
M&A: strategic rationale Strong synergies and complementary capabilities to expand our mechanical solutions service line Transaction Completed September 2022 Completed December 2022 structure Acquisition revenues of £1.9m, adjusted EBITDA of £1.1m. Debt TTM revenues of £6.5m, EBITDA £4.1m. Debt / ca
Slide 20: Enabling growth through focused and targeted M&A
Enabling growth through focused and targeted M&A M&A strategy set out at IPO remains focused on expanding operational breadth, depth and reach A clear and focused set of M&A criteria… ▪ Consolidation of a highly fragmented market Survey & ▪ Geographic expansion Robotics Expanding reach ▪ Product and
Slide 21: Outlook – positive momentum continues
Outlook – positive momentum continues Positive momentum continues into Q3 but H2 growth to moderate vs strong prior year comparators Strategic positioning Market indicators ▪ Strong HY23 results with positive market momentum across both offshore wind, ▪ Remain well placed to support the changing req
Slide 22: Appendices
22 Appendices Ashtead Technology
Slide 23: Sustainability
Sustainability A clear commitment to the energy transition and focus on sustainability ensures Ashtead Technology is well positioned to benefit all stakeholders HY 23 achievements Focus on offshore renewables ▪ 74% growth in renewables revenues ▪ Completed first scope of work directly for offshore w
Slide 24: Reconciliation – HY23 adjusted to reported figures
Reconciliation – HY23 adjusted to reported figures Restructuring Adjusted profit & loss (£m) Adjusted Other Reported Adjusted EBITDA / EBITA / Profit before tax (£m) Costs Revenue Reported operating profit 15.1 49.8 - - 49.8 Gross profit Depreciation 5.6 39.3 - - 39.3 Administration expenses (24.6)
Slide 25: Overheads
Overheads Overhead increases with staff and other overhead costs reducing as a % of revenue £m HY22 HY23 Commentary Revenue 31.7 49.8 YoY performance 28.5% 57.1% ▪ Salaries increased due to: ▪ Increase in employees from 219 to 289, growth predominantly coming from further expansion of our technical
Slide 26: Ashtead Technology
8, Ashtead Technology
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