Slide 1: Full Year Results FY2024
Full Year Results FY2024. 10.07.2024
Slide 2: Agenda
Agenda. Overview Martin Ward Financial Review Philip Vincent Business Update Martin Ward Q&A Martin Ward Philip Vincent CEO CFO 2
Slide 3: Business overview
Business overview. Martin Ward
Slide 4: Strong financial performance
Strong financial performance. Revenue (£m) PBT(£m) Underlying Trading 1,520.6 Revenues: + 13.7% to £1,520.6m 1,336.9 180.7 165.9 EBIT: + 13.0% to £213.7m +13.7% +8.9% PBT: + 8.9% to £180.7m FY 2023 FY 2024 FY 2023 FY 2024 ROCE: +0.4 ppt increase to 14.5% Final dividend increased to Leverage 17.5p (F
Slide 5: Significant operational progress across the businesses
Significant operational progress across the businesses. Rental Claims & Services • Spain, specialist vehicles, value- • Contract extensions/expansion added services • VRA – out of hours FNOL/ • Blakedale: fleet growth & recovery bespoke fitouts • Lex, Abacai, Motability, Royal • EV fleet growth & ad
Slide 6: Financial Review
Financial Review. Philip Vincent
Slide 7: FY 2024 Overview
FY 2024 Overview. Revenue: EBIT: Profit before tax: EPS: +13.7% +13.0% +8.9% +10.4% FY 2024: £1,520.6m FY 2024: £213.7m FY 2024: £180.7m FY 2024: 61.4p FY 2023: £1,336.9m FY 2023: £189.2m FY 2023: £165.9m FY 2023: 55.6p EBITDA: Net debt & leverage: ROCE: DPS: +£34.1m +£47.8m n/a +0.4ppt +7.5% FY 202
Slide 8: Group revenue waterfall
Group revenue waterfall. Key points. • UK&I rental revenue +4.6%, ave. VOH –7.7% • Spain rental revenue +8.4%, ave. VOH +4.1% • C&S revenue +19% • UK&I vehicle sales revenue +116% • Spain vehicle sales revenue +79% Excludes inter-segment revenue. 8
Slide 9: Group underlying profit waterfall
Group underlying profit waterfall. Disposal profit Underlying profit Key points. £61.9m • UK&I rental margin 15.5% £51.5m • Spain rental margin 18.2% • Disposal profits decreased in UK&I, increased in Spain • C&S EBIT margin of 6.0% • Underlying profit excluding disposals +10% 9
Slide 10: Cashflow & Capex
Cashflow & Capex. Cash flow reordered to reflect priorities FY 2024 FY 2023 Change Key points. £m £m £m • FY 2024 UK&I ave fleet age -1.7 to 34 months EBITDA 446.3 412.2 34.1 • FY 2024 Spain ave fleet age -2.6 to 30 months Net replacement capex (NRC)1 (280.2) (155.6) (124.6) Lease principal payments
Slide 11: Robust balance sheet & prudent leverage
Robust balance sheet & prudent leverage. £177.2m FY 2024 FY 2023 Acquisitions Net debt £742.2m £694.4m Dividends paid £121.0m Fleet assets £1.3bn £1.2bn Share buyback Net debt / EBITDA 1.5x 1.5x £85.0m £68.8m 1-2x £60.4m Target leverage range of £41.5m £45.5m Debt headroom £244m £290m £31.5m £24.9m
Slide 12: Strategic Review
Strategic Review. Martin Ward
Slide 13: Sustained demand, normalising supply conditions
Sustained demand, normalising supply conditions. Improving vehicle supply UK&I: new LCV registrations Positive current environment LT ave 2020 2021 2022 2023 2024-5e • Rental demand strong in both geographies 370k 292k 355k 282k 341k +3-4% • Continued diversity of customer profile Source: SMMT • Sta
Slide 14: Platform well positioned for growth opportunities
Platform well positioned for growth opportunities. Breadth of platform capability • Vehicle provision & repair capacity at scale • Trusted expertise across the vehicle lifecycle • Multi-service offering, tailored solutions Differentiating through value-added services • Enhancing core mobility soluti
Slide 15: Simplified, with refreshed brand & pillars
simplified, with refreshed brand & pillars. Organisational re-alignment • Simplified UK reporting structure: increasingly unified service to customers, enhanced cross-selling • Executive Committee: strategic oversight of growth opportunities and investment decisions Brand launch • Rebrand: working t
Slide 16: Enable: Joined up, sustainable smarter mobility solutions
Enable: Joined up, sustainable smarter mobility solutions. Consumer focused platforms. Enable Robotics This encompasses developing sustainable & automation. products, services and operational capabilities that embrace technologies which enable increasingly connected mobility within our customer prop
Slide 17: Enable: Joined up, sustainable smarter mobility solutions
Enable: Joined up, sustainable smarter mobility solutions. Customer focused platforms Training & support Fleet Management portals in development, providing fleet and vehicle-level analytics for optimising performance: UK H1 pilot with customers, Spain in FY 2025 144 34 87,000 5 courses to support sh
Slide 18: Deliver: a differentiated & responsible customer experience
Deliver: a differentiated & responsible customer experience. ‘Customer first’ delivery. Deliver One Road/ Cross-sell Deliver is centred around being trusted by our customers to provide expert advice and opportunities. service that exceeds expectations, delivering industry-leading responsiveness and
Slide 19: Deliver: a differentiated & responsible customer experience
Deliver: a differentiated & responsible customer experience. ‘Customer first’ delivery Investment within branches • Building Aspiration and Purpose amongst our colleagues. We have invested in new tooling and process across our locations, including plastic welding • Transforming the customer tools to
Slide 20: Grow: Broadening customers, markets & product offering
Grow: Broadening customers, markets & product offering. Expanding locations. Grow Enhanced product We are continually exploring opportunities range. to responsibly grow the business’s breadth, size and capabilities, including into both complementary and new products and geographies. New vehicle segm
Slide 21: Grow: Broadening customers, markets & product offering
Grow: Broadening customers, markets & product offering. Further locations opened in FY 2025 Enhanced product & vehicle range C&S specialist solutions Northgate Spain – Cadiz (40,000 sq ft branch, 40% increase on previous site): & new 3rd Barcelona (97,000 sq ft) branch: both operational in early H1
Slide 22: Confidence in pipeline and outlook
Confidence in pipeline and outlook. Outlook • Demand for services remains robust, positive momentum in pipeline • Growing capacity through expanding footprint • Vehicle supply improving & market normalising • Expect LCV RVs will moderate over short term but remain elevated • Proposition and differen
Slide 23: Q&A
Q&A. Martin Ward & Philip Vincent
Slide 24: Appendices
Appendices. + ZIGUP
Slide 25: ESG actions
ESG actions. ESG Commitments Our Progress in FY 2024 In FY 2025, we plan to 15% reduction in Scope 1 and 2 GHG emissions from FY 2023 Develop Group level emission reduction business plans 64% of the energy we procure across is from renewable sources, Embed circular economy principles 9% reduction in
Slide 26: UK & I Rental
UK & I Rental. FY 2024 FY 2023 % change £m £m Revenue – Vehicle hire 384.4 367.7 4.6% Rental profit 59.8 55.6 7.4% Key Highlights • Rental margin of 15.5%, close to Rental margin 15.5% 15.1% 0.4ppt sustainable level • Restricted vehicle supply held back Disposal profit 34.0 37.8 (9.9%) VOH (-7.7%) E
Slide 27: Spain Rental
Spain Rental. FY 2024 FY 2023 % change £m £m Revenue – Vehicle hire 274.0 252.7 8.4% Rental profit 50.0 46.7 6.9% Key Highlights • Strong growth in rental revenue Rental margin 18.2% 18.5% (0.3ppt) +8.4% • Investment in fleet increasing VOH Disposal profit 27.8 13.7 102.7% (+4.1%) EBIT 77.8 60.4 28.
Slide 28: Claims & Services
Claims & Services. FY 2024 FY 2023 % change £m £m Revenue – Claims & services 882.3 738.9 19.4% Key Highlights Gross profit 171.0 151.5 12.9% • Increased volumes from existing customers & new contracts Gross margin 19.4% 20.5% (1.1ppt) launched • Operating profit up 15.5% based on Operating profit 5
Slide 29: Cash flow reconciliation
Cash flow reconciliation. FY 2024 Cash generation Cash flow reordered to reflect priorities FY 2024 FY 2023 Change FY 2024 FY 2023 Change £m £m £m £m £m £m EBIT 213.7 189.2 24.5 EBITDA 446.3 412.2 34.1 Depreciation and amortisation 232.6 223.0 9.6 Net replacement capex1 (280.2) (155.6) (124.6) Under
Slide 30: Our rental customers
Our rental customers. UK Customer profile Spanish Customer profile % Fleet % Fleet VoH Sectors Sectors Sub-sectors VoH Construction, infrastructure 10-15% ea Facilities Mgmt/Civil Engineering 20-30% ea Construction Rental services, safety, Support services maintenance, health Specialist construction
Slide 31: Impact of depreciation rate
Impact of depreciation rate. £m FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Total Reduced depreciation 55.1 38.3 15.7 4.1 - 113.2 Key points Reduced disposal profits (8.5) (38.3) (40.5) (22.3) (3.6) (113.2) Impact on Statutory EBIT 46.6 - (24.8) (18.2) (3.6) - • Statutory adjustment re-phased on same ve
Slide 32: Fleet reconciliation
Fleet reconciliation. Claims & Vehicles # UK&I Spain Group Services Opening owned fleet (Apr-23)* 53,800 63,400 18,500 135,700 Acquisitions 100 - - 100 Purchases 10,900 17,600 2,600 31,100 Disposals (15,100) (14,500) (3,700) (33,300) Transfers 1,700 - (1,700) - Movements on direct vehicles (2,600) -
Slide 33: Corporate Website
Corporate Website. Corporate Website Our customer solutions • Enhanced corporate website • More information on ZIGUP & our strategy • Includes video & social media content on operations • Email notification alerts www.zigup.com/investors/news-and-alerts/email-alerts/ Our geographical footprint 33