Ashtead Technology Holdings PLC · LSE:AT.
Ashtead Technology — FY2021 Earnings Presentation
26 slides from Ashtead Technology's earnings presentation, June 2022
Slide 1: 2021 Results Presentation
2021 Results Presentation June 2022
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: Overview of Ashtead Technology
Overview of Ashtead Technology A subsea technology business that supports the installation, IMR and decommissioning of the offshore energy industry Leading market • Market leader in advanced subsea technology rental and solutions with a 37 year track record and blue chip customer base position • Exp
Slide 4: Ashtead Technology: A summary
Ashtead Technology: A summary Specialist equipment, technical solutions and support services enabling customers to understand the subsea environment and manage their offshore energy infrastructure Ashtead Technology’s equipment and solutions are critical to many offshore energy activities, including
Slide 5: Why customers choose Ashtead Technology
Why customers choose Ashtead Technology Delivering a cost effective, reliable and on time service 1 • A one-stop-shop for subsea equipment rental, related Competitor landscape and capabilities 1 Unrivalled services and solutions customer offering • Deep domain expertise Survey & Mechanical Asset Sca
Slide 6: Financial overview
Financial overview 5 Ashtead Technology
Slide 7: 2021: A year of significant progress
2021: A year of significant progress Revenue Adjusted EBITA Cost Utilisation Net debt / Adjusted £55.8m £13.7m 43% EBITDA FY20: £42.4m FY20: £6.3m FY20: 37% 1.0x FY20: 2.1x Adjusted EBITA Adjusted EPS ROIC Total Recordable Margin Incident Rate 13.2p 17% 24.6% 0 FY20: 7% FY20: 0 FY20: 14.8% 7
Slide 8: Track record of strong financial performance
Track record of strong financial performance Track record of organic and inorganic growth, resilience through COVID and recovering solid margins Revenue1 (£m) Adjusted EBITDA1,2 (£m) Adjusted EBITA1,3 (£m) 43% 45% 40% 40% 22% 26% 15% 25% 5.8 1.7 2.1 13 5.1 3.8 55.8 13.7 47.8 21.9 22.4 12.1 42.4 37.7
Slide 9: Profit & loss
Profit & loss Profits show strong recovery from FY20 £m FY192 FY20 FY21 Overview Revenue 47.8 42.4 55.8 ▪ Revenue grew by 32% from FY20 to FY21 YoY performance 26.7% (11.3%) 31.6% Cost of sales (11.9) (11.0) (15.5) • Driven by an increase in demand from both the offshore renewables Gross profit1 35.
Slide 10: Cashflow
Cashflow Track record of delivering strong operating and free cash flow conversion £m FY19 FY20 FY21 Operating and free cash flow conversion FY19 to FY21 (pre exceptionals) Adj. EBITDA 21.9 17.0 22.4 119% Exceptional costs (2.2) (1.7) (4.4) 90% Gain on Sale of fixed assets (1.2) (1.2) (1.0) 76% 72%
Slide 11: Balance sheet
Balance sheet Strengthened balance sheet with year end net debt leverage at 1x £m FY19 FY20 FY21 Working Capital to Revenues 22% 12% 17% 60 GBV of rental fleet 106.4 104.9 104.9 40 Accumulated depreciation of rental fleet (80.3) (84.6) (85.6) NBV of rental fleet 20 26.1 20.3 19.2 0 Goodwill 48.7 48.
Slide 12: Capital allocation priorities focus on investment in growth
Capital allocation priorities focus on investment in growth Medium Term Leverage Policy Adjusted Net Debt to EBITDA: 1.0x – 2.0x Organic fleet growth Bolt-on acquisitions Shareholder returns Continued investment in maintenance and Sustainable progressive dividend for Deploy free cash flow and balanc
Slide 13: Operational overview
Ashtead —_ - Technology i) ? \, ROo
Slide 14: Overview of the fleet
Overview of the fleet Ashtead Technology’s leading market position is underpinned by its track record and its broad and well-maintained fleet • 17,000 stock items with 85% fully fungible across oil and • Quality and reliability of the AT fleet is fundamental to its gas and wind long-term customer re
Slide 15: Pricing & utilisation
Pricing & utilisation A tight market driving strong utilisation and supporting price rises Consistent cost utilisation1 Disciplined pricing 41% 43% 39% 37% 35% +6% -6% +4% +3% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 • Cost utilisation increased by 6% to 43% in the year • Pricing increase o
Slide 16: Rapidly expanding offshore wind market with supportive oil & gas backdrop
Rapidly expanding offshore wind market with supportive oil & gas backdrop Ashtead’s addressable market is expected to reach more than $2bn by 2025 Clear market drivers supporting organic growth Impact of the current backdrop already showing in tendering activity ▪ Increasing focus on energy security
Slide 17: Step change in Ashtead Technology's renewables activity
Step change in Ashtead Technology’s renewables activity Dedicated focus on renewables driving significant increase in revenue, tendering and early project discussions Strong growth in renewables revenues from Engagement with windfarm installers and operators yielding a significant increase in the pr
Slide 18: M&A strategy
M&A strategy Existing capability and geographical gaps highlight room to grow through M&A Service line / Existing Capability / Market Penetration A clear and focused set of M&A criteria… End market APAC Middle East Europe Americas Survey & Robotics ▪ Consolidation of a highly fragmented market Mecha
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 Supporting the energy transition is core to our strategy, providing equipment, technical expertise and innovative solutions to the
Slide 20: Outlook – positive momentum
Outlook – positive momentum Continued to perform strongly in the first four months of 2022, supported by strengthening customer demand across both offshore wind and oil and gas end markets Clear market drivers supporting growth ▪ Remain well placed to support the changing requirements of the ▪ Activ
Slide 21: Why Ashtead Technology?
Why Ashtead Technology? Targeting low-double digit annual organic revenue growth over the medium term 6 1 Market consolidation, value accretive Exposure to high growth M&A offshore renewables market 5 2 Underpinned by resilient oil & gas Strong cash generation, high returns market 4 3 A strong platf
Slide 22: Appendix & Supplementary detail
Appendix & Supplementary detail 22
Slide 23: Appendix 1: Reconciliation - adjusted to reported figures
Appendix 1: Reconciliation - adjusted to reported figures Restructuring Adjusted profit & loss (£m) Adjusted IPO Costs Other Reported Adjusted EBITDA / EBITA / Profit before tax (£m) Costs Revenue Reported operating profit 7.6 55.8 - - - 55.8 Gross Profit Depreciation 8.7 40.3 - - (0.2) 40.5 Adminis
Slide 24: Executive management and company history
Executive management and company history Allan Pirie Ingrid Stewart CEO CFO • 13 years with Ashtead Technology • Joined Ashtead Technology in January 2021 • 27 years in the Subsea Services industry • 25 years in the Subsea Services industry Previous Experience: Previous Experience: Company History 2
Slide 25: Footprint provides platform to internationalise acquisitions
Footprint provides platform to internationalise acquisitions Track record of driving revenue synergies Ashtead Technology’s international footprint Sales by region (FY21) Halifax, NS, Canada Acq 2018 Aberdeen, UK (HQ) Est 1985 5% 14% Houma, LA, USA Acq 2019 Singapore Est 1994 Broussard, LA, USA Acq
Slide 26: A rapidly expanding offshore wind market
A rapidly expanding offshore wind market Ashtead Technology is well-positioned to capitalise on significant market growth in offshore wind Forecast offshore wind spend by region 2021-2030 Europe: CAGR +12% N America: CAGR +35% 2030: $9.3bn 2030: $54.38bn • The wind market is expanding from its histo
Ashtead Technology Holdings — FY2021 Earnings Presentation on 6ix