Speedy Hire Plc · LSE:SDY
Speedy Hire — FY2014 Earnings Presentation
27 slides from Speedy Hire's earnings presentation, Mar 31, 2014
Slide 1: Setting the Future Agenda
Speedy Hire Plc Setting the Future Agenda Preliminary Results for the year ended 31 March 2014
Slide 2: Legal Disclaimer
>) Legal Disclaimer This presentation has been prepared to inform investment professionals about Speedy Hire Plc (‘Speedy’), and does not constitute an offer of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities i
Slide 3: Mark Rogerson, Chief Executive Officer
Mark Rogerson Chief Executive Officer
Slide 4: Financial Performance
Financial Performance Lynn Krige: Group Finance Director
Slide 5: Financial Highlights
>) Financial Highlights Financial year ended 31 March 2014 2013* Change £m £m Revenue 349.7 340.0 2.9% Gross Margin 214.6 223.0 (3.8%) Gross Margin % 61.3% 65.6% EBITDA* 68.7 72.0 (4.6%) EBITDA % 19.6% 21.2% EBITA* 22.1 22.9 (3.5%) EBITA % 63% 67% PBT* 14.6 15.3 (4.6%) Adjusted earnings per share* 2
Slide 6: Financial Position
>) Financial Position As at 31 March 2014 2013* Change £m £m Property, plant & equipment 255.1 2417 5.5% Debtor days — UK & Ireland 64.3 days 61.3 days Bad debt charge as a % of revenue 1.57% 133% Net debt 84.4 724 (16.6%) Gearing 35.3% 30.8% Net debt: EBITDA 1.2x 1.0x Shareholders’ funds 239.3 234.
Slide 7: Return on Capital Employed
>) Return on Capital Employed “Giteay Return on capital employed 12% N% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2.0% 1.9% FY10 9.5% 8.5% 7.5% 7.0% 6.6% 3.0% i FYI] FYI2 FYI3 FY14 HE ROCE-Group [ll ROCE - Group excl International Optimise & Protect & Enable
Slide 8: Segmental Analysis — UK & Ireland
>) Segmental Analysis — UK & Ireland “Gpezay EL Financial year ended 2014 2013 Change 31 March £m £m Revenue Revenue 328.1 321.4 2.1% +84 Gross Margin % 63.1% 66.2% 474 +6 4 EBITDA 73.3 73.8 (0.7%) +5 4 EBITDA % 22.3% 23.0% 4 EBITA 32.7 31.2 4.8% % | EBITA % 10.0% 97% an 33 +14 NBV of property, plan
Slide 9: Segmental Analysis — International
>) Segmental Analysis — International Financial year ended 31 March 2014 2013* Change £m £m Revenue 21.6 18.6 16.1% EBITDA 0.8 40 EBITDA % 37% 21.5% EBITA (4.3) (0.7) EBITA % (19.9%) (3.8%) NBV of property, plant & equipment 34.1 31.1 9.6% Net capital expenditure 9.3 15.5 (40.0%) Depreciation 5.1 47
Slide 10: Cash Flow
>) Cash Flow cluding International Group ex i=] a So wo [=] =] i=] (wig) }Qap jeu ul yUsIaAO; Optimise & Protect & Enable
Slide 11: Financial results summary
>) Financial results summary & Q4 revenue growth showing an increasing trend & EBITA of underlying business up 11.9% & Action taken to resolve international issues now complete & Investment providing platform for growth & Underpinned by a strong Balance Sheet 11 Optimise & Protect & Enable
Slide 12: Setting the Future Agenda
Setting the Future Agenda Mark Rogerson: Chief Executive Officer
Slide 13: What have we focused on?
>) What have we focused on? & Addressing Middle East issues & Implemented a new organisational structure & Enabling our sales force & Winning and mobilising new contracts & Bring greater clarity to our business strategy >] Rebuilding confidence and momentum 13 Optimise & Protect & Enable
Slide 14: Going forward: Implementing our vision
>) Going forward: Implementing our vision “Wirteay & Our vision: c To be the UK's leading provider of tools, equipment and plant, offering a complementary range of support services to our customers & Atour core we aim to: 14 c Optimise our business and our customers’ operations Protect our own and o
Slide 15: Our strategic priorities
>) Our strategic priorities “Gteay & To achieve our vision we will focus on 5 core themes, to ensure we are: & The industry leader in safety & Anengine of growth Optimise Protect Sustainability Enable & The most efficient at everything we do & Preferred by our customers through delivering service ex
Slide 16: Growth: Being a growth engine
Growth: Being a growth engine - Wrteay We have a unique value proposition and customer set & Building on our market leading position through: & Core Products & Specialist Solutions & Support Services Optimise Protect & Innovation Enable & Our enviable customer set: Solutions Products & 64,000 custom
Slide 17: Origination of Group revenue
Origination of Group revenue >) Growth: Being a growth engine Current Revenue £m 17 Strategic Accounts Major Accounts Regional and Local Accounts Current Revenue % Optimise & Protect & Enable
Slide 18: An example of our strategy in action
Growth: Being a growth engine Yer, An example of our strategy in action jonecdy & Strategic: & Balfour Beatty Preferred Bidder Status & Babcock — c.£30m over 3 years : © TATA Steel -— c.£10m over 3 years orang Major Regional 6 Major: accounts accounts & Morrisons Utility - £4.5m over 3 years Optimis
Slide 19: Business Efficiency: Being the most efficient
>) Business Efficiency: Being the most efficient & Improving capital discipline & Optimising our network Strategic accounts & Fully integrating our logistics fleet Major . . accounts & Transforming our business processes 7S” * Optimise & Protect & Enable
Slide 20: Service Excellence: Preferred by our customers
>) Service Excellence: Preferred by our customers e & Systems & Dedicated Customer Service desks ¢ > Strategic accounts & Aculture of ‘Customer First’ Major accounts & Management information and KPI's 4 *” Optimise & Protect & Enable
Slide 21: People: Being an employer of choice
>) People: Being an employer of choice “Wirteay & New Leadership Team & Additional frontline people & Empowered culture, controlled performance & Improved internal and external comms —w” * Optimise & Protect & Enable
Slide 22: Summary: Journey to Excellence
Summary: Journey to Excellence lilo suramary: Joumey Wrzcay & Improving market conditions & Great brand Strategic accounts & Market leading value proposition Major Regional accounts accounts & Sell it harder Optimise Protect Sustainability & Be faster, better Enable & & Y = i] n a 2 Z a 3 JONITI|D K
Slide 23: Questions and Answers
>) Questions and Answers
Slide 24: Appendices
Slide 25: Borrowing base and facility
Book value Borrowing Base Borrowings Total facility Receivables 85% of eligible £82.7m UK & Ireland £5.0m debtors Total £168.5m £44.8m £68.4m unutilised facility £215.0m Plant & machinery £188.2m 85% of eligible UK & Ireland plant & machinery £123.7m £100.1m 25
Slide 26: Covenants
Covenants Asset Backed Lending Facility - £220m Covenant Position at Methodology threshold 31 Mar 14 Not greater Leverage thane? 25x 1.28x Total Net Debt to EBITDA EBITDAR to Rent Adjusted Finance Charges ("RAFR") Where: Fixed Charge Not less 30 EBITDAR is EBITDA before operating lease charges Ox i
Slide 27: Growth Profile: Year on Year
>) Growth Profile: Year on Year 27 UK & Ireland Q3 a4 “Wirteay Total Services +4 4 #2 4 +10 + % +84 +6 + | 15.2 5.3 +24 0+ T T T Ql Q2 Q3 Core Hire a4 Ql Q2 Q3 a4 Optimise & Protect & Enable