Slide 1: Full Year Results FY 2023
Full Year Results FY 2023 5 July 2023
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Redde Northgate Plc (the “Company” and, together with its subsidiaries, the “Group”). For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or ans
Slide 3: Agenda
Agenda Overview Martin Ward Financial Review Philip Vincent Martin Ward Chief Executive Officer Business Update Martin Ward Q&A Philip Vincent Chief Financial Officer 3
Slide 4: Overview
4 redd@n@rTHGATE Overview Martin Ward
Slide 5: FY 2023 Overview: Financial performance
FY 2023 Overview: Financial performance Underlying Trading Revenues: + 22.2% to £1,336.9m Revenue (£m) PBT (£m) EBIT: + 12.7% to £189.2m 1,336.9 165.9 PBT: + 9.7% to £165.9m ROCE: 0.2 ppt increase to 14.1% +22.2% +9.7% FY 2022 FY 2023 FY 2022 FY 2023 Leverage: 1.5x (April 2022 1.4x) Reflecting Board
Slide 6: FY 2023 Overview: Achievements
FY 2023 Overview: Achievements Strong operational performance FY2023 strategic progress Revenue growth drivers Delivering on strategic goals Fleet size: up over 4,000 to over 130,000, growth Acquisitions: of Sustainability: new in Spain & Redde vehicle specialists Group committee, Blakedale & Scope
Slide 7: Financial Review
Financial Review Philip Vincent 7 7
Slide 8: FY 2023 Overview: Underlying Group Performance
FY 2023 Overview: Underlying Group Performance Revenue EBIT Profit before tax EPS +22.2% +12.7% +9.7% +9.5% FY 2023: £1,336.9m FY 2023: £189.2m FY 2023: £165.9m FY2023: 55.6p FY 2022: £1,093.6m FY 2022: £167.9m FY 2022: £151.3m FY 2022: 50.8p Steady state cash gen. Net debt & leverage ROCE DPS -£24.
Slide 9: Group revenue waterfall FY 2022-23
Group revenue waterfall FY 2022-23 Comments £196.0m £3.0m £1,489.7m • UK&I rental revenue +6.1%, ave. VOH -2.6% • Spain rental revenue +14.6%, ave. VOH +6.2% £32.1m • Redde revenue +37% £15.1m including new contracts £1,243.6m • UK&I vehicle sales revenue -6% • Spain vehicle sales revenue +24% Exclu
Slide 10: Group underlying profit waterfall FY 2022-23
Group underlying profit waterfall FY 2022-23 Comments Disposal profit £12.3m £(1.0)m • UK&I rental margin 15.1% £165.9m • Spain rental margin 18.5% £1.4m £1.5m £(8.7)m • Disposal profits reduced £9.1m £51.5m in UK&I, increased in Spain £151.3m • Redde contracts onboarded £50.1m • Average interest ra
Slide 11: Cashflow and capex
Cashflow and capex FY 2023 FY 2022 Change £m £m £m Underlying EBIT 189.2 167.9 21.3 Depreciation and amortisation8 223.0 198.8 24.2 Underlying EBITDA 412.2 366.7 45.5 Net replacement capex1 (155.6) (106.7) (48.9) Underlying growth Lease principal payments (65.1) (43.7) (21.4) Replacing fleet Steady
Slide 12: Well-financed to drive sustainable shareholder value
Well-financed to drive sustainable shareholder value A strong financial platform … Acquisitions and cumulative returns to shareholder (£m) FY 2023 FY 2022 120.0 121.0 £m £m Dividends paid final Acquisitions 100.0 Dividends paid interim Share buyback Net debt £694.4m £582.5m 80.0 68.8 Net debt / EBIT
Slide 13: Business Update
Business Update Martin Ward 1313
Slide 14: Current environment
Current environment Market Demand strong in Traffic activity stabilising at all geographies ‘new normal’ Growing interest in Repair capacity remains value-added services scarce Fleet supply UK: Better visibility, but Pockets of supply are timing uncertainty available Spain: Improved Undersupply supp
Slide 15: Strategic progress: Delivering for customers
Strategic progress: Delivering for customers Differentiated customer offering Simple access, multiple touchpoints 24/7 Greater flexibility and responsiveness Functioning seamlessly as a combination Increasing cross-platform customer efficiencies as scale grows 15
Slide 16: Strategic progress: supporting the customer proposition
Strategic progress: supporting the customer proposition Customers People Organic platform growth Building a future talent pipeline EV consulting Reinforcing shared culture Digital enablement Advancing technology capabilities Sourcing new technologies Connecting, listening & learning M&A Helping our
Slide 17: Strategic progress: Redde contracts
Strategic progress: Redde contracts Major insurer contracts New large multi-year contract (June 2023) Top 5 leasing company Significant onboarding exercise Multi-year full-service contract Historic relationship with Northgate All live by early FY 2023 Combination of outsourcing and supplier consolid
Slide 18: Strategic progress: expanding the platform
Strategic progress: expanding the platform 30% growth in fleet to over Nationwide network of 425 vehicles food & pharma customers Traffic Fleet of over 600 28% growth in customer base Includes EV vans on fleet management temperature vehicle hire Strong cross-platform pipeline controlled vehicles Pip
Slide 19: Strategic progress: broadening into adjacencies
Strategic progress: broadening into adjacencies EV Transition Other Services >4,500 EV/Hybrids on fleets 12 UK/16 Spanish EV models Open days for fleet customers 550 driver EV experiences Consulting Iberdrola Spanish partnership workshops Solar Alternative charging vehicle solutions Telematics 19
Slide 20: Looking forward
Looking forward ` Investment proposition Outlook Continue to enjoy robust demand at start Sustainable Market leading returns profile FY 2024 platform Further Redde contract reflects healthy new business pipeline Leveraging Expect to continue to make strategic structural Strong balance sheet, progres
Slide 21: Q&A
Q&A Martin Ward & Philip Vincent 2121
Slide 22: Appendices
Appendices Divisional financials Fleet reconciliation Customer sector profile ESG target setting Depreciation rate analysis Website 2222
Slide 23: Northgate UK&I
Northgate UK&I FY 2023 FY 2022 % change £m £m Key Highlights Revenue – Vehicle hire 367.7 346.6 6.1% • Rental margin of 15.1%, at sustainable level Rental profit 55.6 53.1 4.7% • Restricted vehicle supply held back VOH (-2.6%) and disposal Rental margin 15.1% 15.3% (0.2ppt) volume (-2.0%) • Lower VO
Slide 24: Northgate Spain
Northgate Spain FY 2023 FY 2022 % change £m £m Key Highlights Revenue – Vehicle hire 252.7 220.6 14.6% • Rental margin 18.5% vs. medium term guidance of c.15% Rental profit 46.7 38.6 20.9% • Improved vehicle supply increased VOH (+6.2%) and disposal volume (+30.4%) Rental margin 18.5% 17.5% 1.0ppt •
Slide 25: Redde
Redde FY 2023 FY 2022 % change Key Highlights £m £m • Significant volume growth from Revenue – Claims and 738.9 543.7 35.9% normalised traffic and new services contracts Gross profit 151.5 127.7 18.7% • EBIT increasing with volumes • Focused on growing workshop Gross margin 20.5% 23.5% (3ppt) techni
Slide 26: Appendix – fleet reconciliation
Appendix – fleet reconciliation Vehicles # (UK&I) UK&I Spain Redde Group Opening owned fleet (Apr-22)* 56,300 58,100 14,500 128,900 Purchases 4,800 13,200 5,100 23,100 Disposals (9,200) (7,900) (700) (17,800) Transfers 1,100 (1,100) Movements on direct vehicles 400 0 0 400 Movement on leased vehicle
Slide 27: Our rental customers
Our rental customers UK Customer profile Spanish Customer profile % Fleet % Fleet VoH Sectors Sectors Sub sectors VoH Facilities Mgmt/Civil Engineering Construction, infrastructure Construction 10-15% ea Specialist construction 20-30% ea Rental services, safety, Support services maintenance, health
Slide 28: ESG target setting
ESG target setting FY 2022 to FY 2027 • New Sustainability committee; significant workstreams to evaluate emissions profile targets for scope 1&2 • Scope 1&2 direct/purchased emissions less than 1% of total • Three major categories for Scope 3: • Purchased vehicles, fleet emissions, fleet usage afte
Slide 29: Appendix – Impact of depreciation rate
Appendix – Impact of depreciation rate £m FY23 FY24 FY25 FY26 FY27 Total Reduced depreciation 55.1 46.7 22.3 5.4 0.1 129,6 Key points Reduced disposal profits (8.6) (34.0) (50.6) (31.8) (4,6) (129.6) Statutory adjustment re-phased Impact on Statutory EBIT 46.5 12.7 (28.3) (26.4) (4.5) - on same vehi
Slide 30: Corporate website upgrade, new email alert registration
Corporate website upgrade, new email alert registration Our geographical footprint Our customer solutions Corporate website New corporate website launched More information on RN businesses & strategy Includes factsheets on operations, plus Sustainability actions etc. Email notification alerts New pr