Speedy Hire Plc · LSE:SDY
Speedy Hire — Investor Day (July 2023)
55 slides from Speedy Hire's investor day presentation, Jul 11, 2023
Slide 1: Capital Markets Event
Capital Markets Event Tuesday 11 July 2023 Speedy Milton Keynes Innovation Centre
Slide 2: Presentation Team
Presentation Team Dan Evans Paul Rayner Paul Jackson Richard Potter Amelia Woodley Chief Executive Chief Financial Officer Chief Digital and Peak, Chief Executive Officer ESG Director Transformation Officer 2
Slide 3: Velocity strategy
Velocity strategy Dan Evans, Chief Executive
Slide 4: Velocity
VELOCITY Velocity measures the difference between a start and eventual position It’s about Speed and Direction of travel Both are important We need Velocity!
Slide 5: Our vision
Our vision To inspire and innovate the future of hire and accelerate sustainable growth
Slide 6: Our mission
Our mission To be the most efficient and sustainable hire business in the UK and Ireland: digital and data driven, optimised through operational excellence and powered by our people
Slide 7: Our values
Our values PLE FIRST EO ” O2% Innovative Inclusive Safe Together Trusted We lead with We nurturea Weare all unique, Weshared Weare family; Weare responsible. bravery to make culture where and we all belong collective proud to work as and do the right anything possible. ideas grow. responsibility to
Slide 8: Velocity - Our five year strategy for growth
Velocity - Our five year strategy for growth • Velocity is a five year transformation and growth strategy • There are two defined stages to drive sustainable long-term growth: Enable growth Deliver growth Deliver foundational improvements across Become the most efficient and technology and operation
Slide 9: Our strategy - driving sustainable long-term growth (Stage 1)
Our strategy - driving sustainable long-term growth Stage 1. Enable growth: Deliver foundational improvements across technology and operational efficiency Group-wide Brand and Technology Cloud based transformation customer and data secure platform programme Clear brand strategy Technology and data l
Slide 10: Our strategy - driving sustainable long-term growth (Stage 2)
Our strategy - driving sustainable long-term growth Stage 2. Deliver growth: To be the most efficient and sustainable UK hire business Customers Sectors Products Grow customer base; Expand market share in Invest in cleaner energy national, regional, trade key target sectors* and efficient technology
Slide 11: Key infrastructure
Key infrastructure Rail Highways HS2 Nuclear Water 11
Slide 12: Our growth engines
Our growth engines Core hire Specialist products Trade and retail products and services markets Grow our market share with all A focus on niche products and services Grow trade and retail customers, customer segments across all with significant growth and margin through conversion of sales into hire
Slide 13: Growth engine: Core hire
Growth engine: Core hire £730m 16% Focusing on regional market share growth in all of our locations UKI addressable Speedy’s market market share New business wins Sector targeting Grow existing customer revenue Source: AMA market research 13
Slide 14: Growth engine: Specialist products and services
Growth engine: Specialist products and services Customer Solutions Power & Energy Focus: HVO, Hydrogen, LPG, Battery services Project management Power & Specialist Haulage & & consultancy renewables plant vehicles Non Mech New Focus: Fencing, Traffic management, Ground protection Waste management Cr
Slide 15: Growth engine: Trade and Retail
Growth engine: Trade and Retail Key areas of focus c.£15bn <1% Channel partners Hire vs buy Trade and Retail Market share market opportunity • Tool hire directly on B&Q’s channels for home delivery and collection across relevant products for Trade and DIY Market creation Ease / digital • Hire orders
Slide 16: Executing our strategy
Executing our strategy Dan Evans, Chief Executive
Slide 17: Transforming Speedy
Transforming Speedy We are building a digital and data led business to step change our efficiency and power our growth We have mobilised a group-wide transformation programme to deliver the technical and operational changes required to establish our future platform People Digitally andPowered data d
Slide 18: Improving margin
Improving margin We will leverage data and AI to transform our business, driving profitability and creating a foundation for sustainable growth Optimise Optimise people Optimise infrastructure and technology supply chain Use of data and AI to link our fit Aligning our people and their skills Evoluti
Slide 19: Strategic pillars
Strategic pillars Foundational elements that will support everything we do to accelerate sustainable growth People first ESG Digital Modern experience workplace Aim to be a Top 100 employer Our “Decade to deliver,” Easy to do business with Intuitive user systems with AI driven encouraging people to
Slide 20: People first
People first • Become recognised as a top 100 employer • Place our people at the centre of everything we do • Living our values Our Colleague Value Proposition journey over 5 years Culture Attraction Easy to Compensation Career and retention work for Embed Speedy values Introducing flexible Further
Slide 21: Modern Workplace
Modern Workplace Realising benefits Focus areas to drive Company wide The right device for Data driven from investment in operational excellence productivity colleagues to execute automation driving cloud based ERP and increased applications their use case efficiency and revenue analytics Microsoft
Slide 22: Our commitment to safety
Our commitment to safety People & Reporting Innovation communities Collective Responsibility safety RIDDOR Accident Frequency Rate of 0.12 EcoOnline programme, delivering effective risk (FY22: 0.35) management and leading the way in Workplace and fleet raising safety standards across the Lost time i
Slide 23: Digital and data transformation
Digital and data transformation Paul Jackson, Chief Digital & Transformation Officer
Slide 24: Transforming Speedy to deliver Velocity
Transforming Speedy to deliver Velocity 24
Slide 25: Inspiring and innovating the future of hire
Inspiring and innovating the future of hire 25
Slide 26: Our 5 year transformation plan will achieve three broad outcomes
Our 5 year transformation plan will achieve three broad outcomes Improved Seamless New revenue business operations customer growth & processes experience opportunities Leveraging digital and data People Powered 26
Slide 27: Our transformation plan is focused on 6 key themes
Our transformation plan is focused on 6 key themes Seamless Process Depot network Data driven Investing in Speeding up on omnichannel optimisation & of the future revenue growth our people sustainability customer efficiency experience Tailored digital channels Depots focused on Automated order CRM,
Slide 28: How are we going to do this?
How are we going to do this? People first Scaling our 5 year plan Expert Evolving our technology partners systems Focus on the and digital All activities and people and teams sequencing Building on our Leveraging and organisation outlined to cloud based ERP making targeted change aspects Digital, de
Slide 29: Peak: Speedy's AI Partner
Peak Speedy’s AI Partner Richard Potter, CEO Peak
Slide 30: Every business needs its own AI
Every business needs its own AI © 2023 Peak AI Ltd. All Rights Reserved 30
Slide 31: Every company needs its own AI
Every company needs its own AI. Every business will have AI at the heart of their operations over the next decade. This AI will connect and optimise each key profit and growth driver in the business. Peak's AI platform optimises inventories, pricing, and customer personalisation for businesses of al
Slide 32: Speedy x Peak Today
Speedy x Peak AI Applications Today: Today Demand Stock Level Forecasting Optimisation Reduced inventory, increased utilisation & improved service. Every month, on average, the team makes a 4% saving on inventory whilst satisfying 8% more demand across the network. Faster, more accurate distribution
Slide 33: Speedy x Peak AI Applications Today: How it works
Speedy x Peak AI Applications Today: How it works Demand Stock Level Forecasting Optimisation 325 billion ~35,000 data points ingested possible product and service into Peak everyday center combinations For core hire, the AI runs millions of permutations to reach an accurate demand forecast and then
Slide 34: Speedy x Peak: How we got here
Speedy x Peak How we got here Data Unification Codified Cultural Change & Governance Business Logic Management Speedy’s industry advantage… A single source of truth A large integrated team for clean AI-ready data. of Peak Data Scientists. A data-centric culture An exclusive hire industry that collab
Slide 35: Speedy x Peak Tomorrow
Speedy x Peak Interconnected AI at the heart of Speedy’s value chain: Tomorrow Demand Stock Level Forecasting Optimisation Asset Customer Purchasing Personalisation Stock Price Replenishment Optimisation Logistics Emissions Optimisation Optimisation AI powering Speedy’s All transactions are made Fut
Slide 36: Winning The ESG Race to accelerate sustainable growth
Winning The ESG Race to accelerate sustainable growth Amelia Woodley, ESG Director
Slide 37: Speeding up on sustainability
Speeding up on sustainability The next ten years will define the next hundred. So we need to make this decade count. It’s time to act. It’s time to deliver sustainable hire to all This is it, The Decade to Deliver, so that’s what we’ve called our plan 37
Slide 38: We're racing ahead to…
We’re racing ahead to… Get out in front of customer needs • Major contracts now have 10-30% sustainability weighting • 40% of our customers have net zero and social value targets Be the best solution provider • We're top rated for sustainability so we're getting out in front to lead, win work and su
Slide 39: We're on the pace
We’re on the pace • 44% of our itemised hire products are now eco • 82 apprentices and 12 graduates • 52% of our revenue comes from eco technologies • 21% female • Zero waste to landfill • c.£9m social value • First in UK Hire to commit to and submit a science based Net Zero targets • Donated £75,00
Slide 40: Getting out in front of our customer needs
Getting out in front of our customer needs NOW: Sustainability counts Net Zero Social Value Modern Slavery & Human Rights 40
Slide 41: Be the best solutions provider
Be the best solutions provider NEXT: Sustainability as the ignition for business success Low carbon vehicles Low carbon property Low carbon circular products Diversity, equity and inclusion Communities Sustainable supply chain 41
Slide 42: Financial growth metrics
Financial growth metrics Paul Rayner, Chief Financial Officer
Slide 43: 5 year financial KPIs
5 year financial KPIs Through-cycle financial targets framework Revenue EBITDA Leverage Target revenue £650m Grow EBITDA margins to 28% Maintain sustainable leverage at 1.0 – 1.5x EBITDA 43
Slide 44: Speedy Hire revenue roadmap
Speedy Hire revenue roadmap £650m £441m FY2023 Core Hire Specialist Trade & Retail FY2028 44
Slide 45: Speedy Hire EBITDA roadmap
Speedy Hire EBITDA roadmap Revenue drivers Operational leverage 28% margin 24% margin FY2023 Core Hire Specialist Trade & Retail Pillars Operational FY2028 efficiency 45
Slide 46: Capital allocation priorities and policy
Capital allocation priorities and policy Operating cash flow Excess cash Organic business investment Deleveraging the balance sheet • Assets • Maintain balance sheet leverage at 1.0 – 1.5x EBITDA • People • Property • Technology Dividend Additional shareholder returns • Progressive dividend growth •
Slide 47: Financial metrics
Financial metrics Total revenue Operating cash Utilisation EPS Profitable Cashflow Assets Shareholder growth returns EBITDA Net debt to EBITDA ROCE DPS 47
Slide 48: Summary
Summary Dan Evans, Chief Executive
Slide 49: Summary
Summary VISION To inspire and innovate the future of hire and accelerate sustainable growth MISSION To be the most efficient and sustainable hire business in the UK and Ireland: digital and data driven, optimised through operational excellence, and powered by our people VALUES Ambitious | Innovative
Slide 50: Appendices
Appendices a s sd
Slide 51: Speedy Hire at a glance
Speedy Hire at a glance Speedy is the UK and Ireland’s leading provider of tools, specialist equipment and services. We provide exceptional customer experience, accelerating collective success towards a sustainable future To inspire and innovate the future of hire Vision and accelerate sustainable g
Slide 52: Our current business structure
Our current business structure Targeted revenue and margin growth by customer, product and channel Customers and sectors Product offer Sales channels (Inbound and outbound) Hire Services Key Sectors - UK & Ireland Product and Account Service Core Hire cconsumable Training managed centres Telephone I
Slide 53: Why invest in Speedy Hire
Why invest in Speedy Hire Ambitious, purpose-led Velocity Supportive long-term end strategy to accelerate profitable market fundamentals Ambitious growth and become the UK’s most End markets efficient and sustainable Hire business A digital and data driven business, Strong balance sheet and cash opt
Slide 54: Awards and accreditations
Awards and accreditations We work to leading industry standards to ensure best practice and are certified to over 20 separate ISO and industry accreditations A+ Energy Performance Certificate Carbon Disclosure Programme (EPC): Achieved at our Innovation Grade B Accreditation: For our ISS Prime: Rank
Slide 55: Disclaimer
Disclaimer The information, opinions and statements contained in this presentation and any associated discussion (this “Presentation”) has been prepared by Speedy Hire PLC (the “Company”) and has not been independently verified. The Presentation is only intended for information and reference purpose