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Our objective
4
Our objective is to be the leading global provider of modular, mobile power
and related solutions, delivering long-term value to shareholders,
outstanding service to customers and rewarding careers to our employees.
Our business model is strong and unique
5
Our People &
Culture
• Committed and passionate people
• Fast pace
• Strong customer service
• Can-do attitude
Expertise • Over 50 years of operational experience
• Sector specific and complex project expertise
• In-house manufacturing and engineering capability
Scale • Global business with network of depots and hubs
• Lower equipment cost, good levels of utilisation and fleet availability
• Speed and reliability
• Sector and geographic diversity
Technology • Strong relationships with OEMs and other partners
• Optimised fleet for varied rental environments
• New product design
Our business model is underpinned by a strong balance sheet
Base business is strong but slower more recently
6
Business grew strongly 2008 - 2012
benefiting from exceptional events
Since 2012 we have faced £100m
profit headwind
• Gradual off-hire in Japan / Military in
Power Projects
• Events in Local boosted ROCE in 2008,
2010 and 2012
Base business top line has grown 4%
since 2012 with margins and returns
maintained
Margins and returns in both
businesses are strong
Local Business ROCE
Group Trading Profit Bridge (£m)
0
100
200
300
400
500
2008 Japan/Military
London2012
BaseBusiness
2012 Japan/Military
London2012
BaseBusiness
2014
0%
10%
20%
30%
40%
2008 2010 2012 2014
Large Events
0%
10%
20%
30%
40%
2008 2010 2012 2014
Japan / Military
Power Projects ROCE
Note: Trading profit excludes pass through fuel
The market environment has changed
7
• Broader range of
competitors
• Competitors looking
for volume have lower
return expectations
• Libya
• Yemen
• Iraq
• Russia
195
105
2012 2015 2012 2013 2014 2015
Iron Ore CopperCrude Oil
2020 Projected Shortfall1
(GW)
Relative Commodity Prices
Lower EM GDP
has reduced
projected power
shortfall….but still
forecast to grow
6% CAGR
Competitive
environment has
intensified in
emerging
markets….but we
are still #1 or #2 in
all our markets
Commodity prices
have fallen from
their highs….we
are well placed for
the recovery &
other sectors
present
opportunities
Geopolitical and
security concerns
have increased….
harder to do
business but we
have many years
of experience
1: Projected power shortfall is defined as the gap between power supply and power demand
We need to evolve
8
0
2
4
6
8
10
12
14
0 1 2 3 4 5 6 7 8 9 10 11
Revenue (
£m
)
Depot Age (years)
Invested heavily in depot infrastructure
Local Business Revenue by Depot
Mixed success in technology
G3+
HFO
39%
36%
43%
38%
Cost of Sales Overheads
2010 2014
Our cost base has grown Costs as a % of revenue
Immature Sub-Scale
Developing markets
Larger, longer term projects
Concentrated sector base
Power main product
Competition varied & increasingly present
Developed markets
Transactional, mature business
Diverse sector base
Multi product offering
Competition highly fragmented but stable
Reorganising to better focus on our customers
10
Rental Solutions Power Solutions Aggreko never let
us down… they’ve
done a fantastic job.
Michael Eavis
Founder of Glastonbury Festival
2014 Revenue £616m
• 7% CAGR between 2010-2014
• Trading margin 17%
• ROCE 22%
Industrial: 2014 Revenue £288m
• 15%* CAGR between 2010-2014
• Trading margin 11%
• ROCE 7%
Utility: 2014 Revenue £625m (ex fuel)
• 8% CAGR between 2010-2014
• Trading margin 27%
• ROCE 25%
* Excludes 2010 World Cup and Asian Games revenue
Note: ROCE is calculated by taking the operating profit on a rolling 12-month basis and expressing it as a percentage of the average net operating assets at 31
December, 30 June and previous 31 December.
Rental Solutions operates in growth markets
12
We have a leading competitive
position in our four main markets
(North America, Australia, UK,
Germany)
• Delivered strong performance in
key sectors where we have focused
attention
Further opportunity for growth
• Average GDP growth of c.2%* 2014-
2019 and key sectors growing ahead
of the market
• Gain market share and increase
sector penetration
• M&A and adjacencies
Expected Market Growth 2014-2019
Returns vs. Market Share
-5%
0%
5%
10%
North America UK Germany Australia
GDP Oil & Gas Mining Petrochem & Refining
France
UK
Australia
NorthAmerica
ItalySpain
Benelux
Germany
RO
CE
Relative Market Share
* Source: IMF; Includes: Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, UK, USA
Source: Aggreko, Bain
Source: IMF, IHS Global Insight
Power Solutions operates in three market segments
13
Market by Type of Customer Demand
• 20-30% reactive demand (wars/disasters,
utility emergencies, and droughts reducing
hydro output)
• 40-60% power shortfall linked utility
demand (bridging, peaking)
• Power shortfall conversion varies widely
between countries
More
proactive
demand
More
reactive
demand
Industrial • 10-20% industrials demand
- On grid industrials requiring backup for grid failure
- Off grid industrial projects, particularly mining and O&G
projects often in remote locations
• 37%* of Power Solutions revenue in 2014
Utility - Power Shortfall Linked • 40-60% power shortfall linked utility demand
• Power shortfall conversion varies widely between countries
• 41%* of Power Solutions revenue in 2014
Reactive Demand • 20-30% reactive demand (wars/disasters, utility emergencies,
and droughts reducing hydro output)
• 22%* of Power Solutions revenue in 2014
* Excluding pass through fuel
The market for Industrial customers is growing…
14
Presence in largest developing
countries
• Scale presence in countries with
high GDP growth
Linked to power shortfall where
customers cannot rely on the grid
Opportunity for growth
• Average GDP growth of c.5%*
2014-2019 and key sector growth
• Gain market share and
create markets
• Increased sector penetration
• New country entry
-1%
0%
1%
2%
3%
4%
5%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
MENA Brazil Russia Average otherwith presence
(ex India &China)
Averagewith no
presence
US
D b
n
2014 GDP (USD bn)
CAGR 14 - 19
* Source: IMF; Includes: Argentina, Brazil, Chile, China, Colombia, India, Middle East, Nigeria, Peru, Poland, Romania, Russia, Singapore, South Africa and Turkey
GDP of Developing Countries with Aggreko Presence
… and for Utility customers the power shortfall continues to increase
15
Demand is projected to grow faster
than supply
• Growth in shortfall has slowed in line
with slower GDP growth
• New generation has not prevented the
shortfall increasing
Expect c.6% Power Shortfall CAGR
Good market growth opportunity
• Sensitivity to GDP growth
• Market share gain
0
20
40
60
80
2008 2009 2010 2011 2012 2013 2014
GW
New Generation Capacity Shortfall
New Power Generation vs. Shortfall
Source: EIA; Platt's; Country Research; Economist; IMF; World Bank
2014 2015 2016 2017 2018 2019
Power Shortfall GDP (non OECD ex China)
Forecast Growth in Shortfall vs. GDP
CAGR
(14-19)
6%
5%
Source: EIA; Platt's; Country Research; Economist; IMF; World Bank
Business priorities to deliver sustainable growth
17
We are enhancing our existing competitive advantages
Customer • Tailoring sales and service channels to customers
• Focusing on key sectors
• Pursuing adjacencies
• Evaluating bolt-on M&A opportunities
Technology • Working with our strategic partners to develop market leading products
• Strengthen and expand strategic partnerships
• Reducing the overall cost of power for our customers
Efficiency • Streamlining our cost base
• Optimising deployment of resources
• Improving processes and systems
Improving customer service
19
Rental Solutions
Global and national a/c management
Key sector focus
• Oil & gas, mining, petrochemical & refining
and events
Developing a digital offering for highly
transactional part of business
Adjacencies
• Temperature control
– Regional temperature control heads in place
– 80% power pull through
• Loadbanks offer a further opportunity
Customer
Global Account
Management
• Global & large customers
• Single point of contact
• Consistency of service
• Sector specific expertise
National Account
Management
• Large customers
• Single point of contact
• Consistency of service
• Sector specific expertise
Sector Focus • Tailored solutions
• Sector specific expertise
Digital • Online offering for transactional
customers
• Sales and service
Enhancing processes and systems
20
Rental Solutions
Deploy new systems and automation in the field
• Fleet optimisation and planning
• Remote monitoring of equipment (ARM, Louisiana;
deployment across Rental Solutions)
Enhance CRM database
• Customer requirements, history and service provision
Streamlining back office processes to increase efficiency
Efficiency
Bolt-on acquisitions a viable growth opportunity
21
Rental Solutions
Geographic, sector and adjacent product opportunities
Synergies from using our distribution network
Cross selling where adjacent products are added
Good track record of integrating businesses
we have bought
Strong balance sheet which affords us the flexibility
to move quickly
Customer
Optimising deployment of resources
23
Power Solutions
Reducing the cost base
• Removing duplication
• Rightsizing functional support
Optimising the depot footprint
• Assessing local presence
• Moving to a regional hub and spoke model to reduce overhead costs
Reducing the cost of equipment in some markets
• Equipment is over specified in a few markets
• Reviewing the use of locally assembled equipment
Improving efficiency of project delivery
• Different levels of site specification
• Reducing site mobilisation and operational costs
• Increased proportion of local workforce on site
Aggreko-related
GDP
Size of
Power Shortfall
GDP growth
rate
Propensity
to Rent
Rental
Rates
Local Regs
& Laws
Competitor
landscape
Criteria for Evaluation of
In-Country Presence
Efficiency
Using technology to reduce the total cost of power
24
Overall cost of power generation
is important
Small units provide flexibility,
mobility and modularity
Simple portfolio minimises
complexity
Strategic relationships support
product development
• Engine efficiency
0
25
50
75
100
125
150
175
200
CombinedCycle Gas
Turbine
Open CycleGas Turbine
AdvancedCoal
Next Gen Gas G3+
Mobile Permanent
Based on 100MW, 30 year project, running 6250 hours a year; assumes oil at $75/bbl
Source: Platts, EIA, Bain
Technology
Relative Cost of Power
($/MWh)
Power Solutions
Assessing other market opportunities
25
Power Solutions
Increasing gas availability is an opportunity
• Monetise stranded gas
• CNG/LNG is 60% premium to permanent power
(85% for diesel)
• CNG/LNG could expand the market
Emerging opportunities in renewables
• Solar/Diesel hybrid opportunities in remote areas
• Investigating how we can adapt energy storage for our
business model
Technology
Improving sales expertise and customer service
26
Power Solutions
Continue to build sales expertise for
complex projects
• Market approach
• Training and best practice sharing
• CRM investment
Global account management and key sector focus
• Utilities, oil & gas, mining, petrochemical & refining
Develop strategic partnerships
• Bridging to permanent power
• Service and repowering
Customer
Sales expertise • Increase technical capability
• Improve skills for complex
projects
• Best practice sharing
Global Account
Management
• Global & large customers
• Single point of contact
• Consistency of service
• Key sector focus
Partnerships • OEMs and other technology
providers
• Global bodies
Streamlining our cost base
28
Group
Reorganisation will remove duplication
• Regional structure led to duplication
• Streamlining our processes, improving customer service
Improving procurement practices
• New procurement organisation
• Defining global vs local purchasing
Improving project site efficiency
Identified £80m in savings
• One off cash costs of around £30m
• Expect to fully deliver in 2017
• Balance reinvestment for growth with margins and returns
Efficiency
Current
behavioursCommitted
Passionate
Fast paced
Can-do attitude
Customer focused
A high performance organisation
29
Group
Safety
• Enhancing Orange Rules
Training and developing our people
• Increasing expertise
• Technical leadership
Enhancing our culture
• Strong and unique
• Highly valued internally
• Nurture and develop
Aligning incentives and behaviours with business priorities
Programme Management Office todrive delivery
30
Customer
Efficiency
Technology
2H 2015 1H 2016 2H 2016
Tailoring sales and service channels
Pursuing adjacencies and evaluating bolt-on M&A opportunities
Focusing on key sectors
Reducing the cost of power
Investing in product design
Optimising deployment of resources
Streamlining our cost base
Improving processes and systems
1H 2017
Strengthen and expand strategic partnerships
Aggreko is a growth business
32
With a strong focus on margins and returns
Revenue
• Markets are forecast to grow between 2% and 6%
• We expect to grow faster than our markets over the medium term
Margins and Returns
• Self help measures identified to help mitigate macro headwinds
• Savings identified of £80m to be delivered in 2017
• One-off cash cost to achieve of c.£30m
• Balance reinvestment for growth with margins and returns
• Group margins and returns of around 20% in the medium term
• 2016 year of change in the business; margins and returns lower in
the short term
Capital Discipline will be maintained
• We will continue to be disciplined and flexible in our use of capital
NOTE: * Reported twice a year; **Reported annually
Progress and performance
33
Business Unit Key Initiatives Relevant KPIs
Rental Solutions • Tailoring sales and service channels to
customers
• Increasing market penetration
• Improving processes and systems
• Revenue growth*
• Trading margin*
• ROCE*
• Fleet utilisation*
• Customer satisfaction**
• Safety**
Power Solutions • Streamlining our cost base
• Optimising depot network
• Optimal deployment of resources
• Investing in product development
• Reducing the cost of power
• Revenue growth*
• Trading margin*
• ROCE*
• Fleet utilisation*
• Order book*
• Order intake*
• Off-hire rate*
• Customer satisfaction**
• Safety**
How we plan to use our capital
34
Capital allocation framework
Invest for
growth
Bolt-on M&A
opportunities
Sustainable
ordinary
dividend
Return surplus
cash to
shareholders
Maintain strong balance sheetLeverage c.1x net debt/EBITDA
Likely to be a more capital intensive in the short term as we invest for growth
Building the future
35
Our business model is strong and unique
We see opportunities for growth in all of
our markets
Plans in place to execute on strategy and
deliver growth
• Customer
• Technology
• Efficiency
We expect to grow ahead of our markets
and deliver attractive margins and returns
There is opportunity for growth in all our markets
38
RENTAL
SOLUTIONS
POWER SOLUTIONS
Industrial Utility
Market Drivers • GDP growth
• Propensity to rent
• Commodity cycle
• GDP growth
• Propensity to rent
• Commodity cycle
• Power shortfall
• GDP growth: 5% threshold
for conversion
Aggreko
Growth Drivers
• Market share gain
• Sector penetration
• M&A and adjacencies
• Market share gain
• Market creation
• Sector penetration
• New market entry
• Market share gain
• Increase conversion rates as
cost of generation falls
Competitive
Environment
• Stable • Increased competition • Increased competition
Market Growth
Rate
• 2% • 5% • 6%
Market engagement framework
39
Activity Timing Content included
Full Year Results March • Revenue growth
• Fleet utilisation
• Order book
• Order intake
• Off-hire rate
• Customer satisfaction
• Emissions
• Trading margins
• ROCE
• Staff turnover
• Safety (FAR)
Half Year Results August • Revenue growth
• Fleet utilisation
• Order book
• Order intake
• Off-hire rate
• Trading margins
• ROCE
Trading Update April (with AGM), November • Short update on current trading conditions
Investor briefings Ad hoc, at least annually • Short briefing to educate on parts of the business
Capital Market Days At least biannually • In-depth education and site visits for parts of the business
• Start with Rental Solutions in 2016
Contract Announcements Ad-hoc • New contracts over 100MW in size and six months
in duration
Disclaimer
40
This presentation may contain certain “forward-looking” statements. By their
nature, forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. Actual outcomes and results
may differ materially from any outcomes or results expressed or implied by
such forward-looking statements. Any forward-looking statements made by
or on behalf of Aggreko speak only as of the date they are made and no
representation or warranty is given in relation to them, including as to their
completeness or accuracy or the basis on which they were prepared.
This presentation is published solely for information purposes.
The distribution of this presentation in jurisdictions other than the UK may
be restricted by law and therefore any persons who are subject to the laws
of any jurisdiction other than the UK should inform themselves about, and
observe, any applicable requirements.
All opinions expressed in this presentation are subject to change without
notice and may differ from opinions expressed elsewhere.
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