Zigup PLC · LSE:ZIG
Zigup — Q3 FY2018 Earnings Presentation
8 slides from Zigup's earnings presentation, Feb 22, 2018
Slide 1: Q3 Trading Update & Fleet Optimisation Strategy
Q3 Trading Update & Fleet Optimisation Strategy 22nd February 2018
Slide 2: UK and Spain VOH Growth by Quarter
In the UK, closing VOH is now in growth and management are confident of meeting the Q4 KPI. In Spain, VOH has grown strongly and is expected to significantly outperform the Q4 KPI. UK – VOH Growth by Quarter Spain – VOH Growth by Quarter Average VOH Average VOH (Qtr/Qtr Prior Year) (Qtr/Qtr Prior Ye
Slide 3: Group Average VOH Growth
Quarterly average VOH growth for the Group reached 5.0% in Q3. Further growth is anticipated and Q4 is expected to perform well within the committed KPI range. Group Average VOH Growth Group Average VOH (Qtr/Qtr Prior Year) 10.0% 8.0% KPI » Continued strong growth in 6.0% Range Spain 14.2% (Q3 vs Q3
Slide 4: Marginal ROCE and Q3 Movement in Rental Margin
Marginal ROCE on all new and redeployed capital is strongly ahead of WACC. Group rental margins improved modestly in Q3 driven by Spain. Marginal ROCE (1) – New and Redeployed Capital Q3 Movement in Rental Margin Spain » Capital largely to service growth » Spain increased by 3.3% pts » Volume growth
Slide 5: Holding periods should be extended to maximise cash returns
Holding periods should be extended to maximise cash returns on fleet investment. The historical approach to disposals has not led to the maximisation of long term shareholder value. Optimal Holding Periods Fleet & Disposals Profile » Approach » Approach » Scope included UK, Spain & Ireland » Asset b
Slide 6: Fleet Optimisation Strategy and Financial Impact
The new fleet optimisation strategy maximises cash returns and creates a more efficient capital base for the business. Operational cash generation and EBITDA are not affected. FY18 PBT is, however, expected to reduce by c.25% versus the £75million reported in prior year Fleet Optimisation Strategy F
Slide 7: Outlook
Outlook » UK » Improving trend in VOH to continue through the year end and into FY19 Leadership » Rental margins expected to remain challenging through Q4 and into FY19 » Spain » Strong growth in VOH to continue as fixed term products gain market share and substitute for ownership » Investor call to
Slide 8: Appendix: Disposal strategy or depreciation change does not impact EBITDA
Appendix: Any change in disposal strategy or depreciation rate does not impact EBITDA X EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) » PPU is a Non-GAAP measure (X) Depreciation of tangible assets used to describe the adjustment X EBIT (Earnings Before Interest and Tax, also