Annual General Meeting 2017 INTRODUCTION Ken Hanna Chairman - - PowerPoint PPT Presentation

A P R I L 2 7

Annual General Meeting 2017

INTRODUCTION

Ken Hanna Chairman

1 Introduction Ken Hanna, Chairman 2 2016 overview, business priorities update & 2017 outlook Chris Weston, CEO 3 Resolutions Ken Hanna, Chairman

Agenda

Chris Weston CEO

Overview

• Number of significant issues to manage

− North American oil & gas − Venezuela debtors − Argentina contract extensions

• A number of achievements in year

− New HFO, gas and solar diesel products − 1.3GW order intake − Commonwealth Games & Winter Olympic wins − Significant cost base reduction on track − Implemented a CRM system; digital platform

progressing well

• Taking the right actions and making progress

A challenging year for the business

Group summary

• Group margins & returns

slightly down; impacted by lower oil price

• Tax rate of 28%
• Dividend maintained

PBT in line with market expectations

Movement £m pre-exceptional items 2016 2015 Change Change excl pass-through fuel and currency Revenues 1,515 1,561 (3)% (10)% Operating profit 248 275 (10)% (11)% Net interest expense (27) (23) (17)% Profit before tax 221 252 (12)% Taxation (63) (69) 8% Profit after tax 158 183 (13)% Diluted earnings per share 61.9p 71.7p (14)% Operating margin 16% 18% (2)pp ROCE 13% 16% (3)pp

Business performance

Rental Solutions

• Revenue down 8%
• Lower oil price impacts upstream and downstream oil & gas sectors in

North America Power Solutions Industrial

• Revenue down 9%, European Games in comparator
• Good growth in Eurasia and Africa

Power Solutions Utility

• Revenue down 13%, mainly due to notable offhire in Mozambique
• Argentina contract negotiations challenging, but mainly impact 2017

Rental Solutions

• Key sector focus
• Develop digital offering

What we’ve done What we said

Business priorities

• Deploy new systems and

automation in the field

• Streamline back office processes

 Surveyed over 1,000 customers in key sectors  Mapped customer journey; re-worked processes and sourced most appropriate systems  Implementing new CRM  Wider digitisation of organisation  Remote monitoring across whole Rental fleet  Acquisition of Dryco

CUSTOMER EFFICIENCY BOLT-ON ACQUISITIONS

Power Solutions

• Reduce the cost base
• Optimise the depot footprint

What we’ve done What we said

Business priorities

• Improve cost of power
• Leverage strategic supplier

relationships

• Explore options in renewables

EFFICIENCY TECHNOLOGY

• Improve sales expertise &

customer service

• Global account management

CUSTOMER

 5 year technology road map, supported by suppliers  Upgraded around 300 G3 diesel engines to G3+, upgrade path to next generation of this engine progressing  Investment in new gas engine, upgrade path to next generation of this engine progressing  First 16 medium speed HFO engines built, 2 contracts agreed  First solar diesel contract signed  Removed £80 million in costs to date  Plans to right-size or close a third of depots  Review of overhead and functional structures  Work to understand customers by country & type  Recruiting new sales force; upskilling existing team  CRM introduced across the business

Outlook

• Power Solutions Utility

− Significant impact from Argentina repricing − Order intake 156MW − Expected off-hire rate of 25 to 30%

• Power Solutions Industrial

− Eurasia, Africa & Middle East expected to drive performance

• Rental Solutions

− North America: Most sectors up on last year − Oil and gas outlook more positive

• Reducing cost base, annualised incremental savings of £25m with similar one off charge

− Total cash saving now increased from £80m to around £100m

• Fleet capex expected of £300m
• Growth and incremental savings will be more than offset by Argentina repricing;

profit before tax to be lower than 2016

Growth offset by Argentina reprice

FORMAL BUSINESS

Ken Hanna Chairman

RESOLUTION 1

Ordinary resolution

To receive the for the year ended 31 December 2016

reports of the Directors and Auditors and to adopt the Company’s accounts

RESOLUTION 1

To receive the for the year ended 31 December 2016

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

100% 0.00%*

189,260,583 2,345,008

73.89% 0.92%

reports of the Directors and Auditors and to adopt the Company’s accounts

*The actual percentage is 0.002%

RESOLUTION 2

Ordinary resolution

To approve the for the year ended 31 December 2016

Annual Statement and Report on Remuneration

RESOLUTION 2

To approve the for the year ended 31 December 2016

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

97.50% 2.50%

190,476,788 1,128,803

74.37% 0.44%

Annual Statement and Report on Remuneration

RESOLUTION 4

To approve the

final dividend

for the year ended 31 December 2016 of

17.74 pence

per ordinary share

Ordinary resolution

RESOLUTION 4

To approve the

final dividend

for the year ended 31 December 2016 of

17.74 pence

per ordinary share

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

100% 0.00%

191,394,442 211,149

74.73% 0.08%

RESOLUTION 5

To elect

Barbara Jeremiah

as a Director of the Company

Ordinary resolution

RESOLUTION 5

To elect

Barbara Jeremiah

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

97.56% 2.44%

191,331,201 274,390

74.70% 0.11%

RESOLUTION 6

To elect

Miles Roberts

as a Director of the Company

Ordinary resolution

RESOLUTION 6

To elect

Miles Roberts

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.98% 0.02%

191,330,114 275,477

74.70% 0.11%

RESOLUTION 7

To re-elect

Ken Hanna

as a Director of the Company

Ordinary resolution

RESOLUTION 7

To re-elect

Ken Hanna

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

96.92% 3.08%

191,328,383 277,208

74.70% 0.11%

RESOLUTION 8

To re-elect

Chris Weston

as a Director of the Company

Ordinary resolution

RESOLUTION 8

To re-elect

Chris Weston

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.98% 0.02%

191,332,663 272,928

74.70% 0.11%

RESOLUTION 9

To re-elect

Carole Cran

as a Director of the Company

Ordinary resolution

RESOLUTION 9

To re-elect

Carole Cran

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.02% 0.98%

191,332,854 272,737

74.70% 0.11%

RESOLUTION 10

To re-elect

Dame Nicola Brewer

as a Director of the Company

Ordinary resolution

RESOLUTION 10

To re-elect

Dame Nicola Brewer

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.98% 0.02%

191,337,315 268,276

74.70% 0.10%

RESOLUTION 11

To re-elect

Russell King

as a Director of the Company

Ordinary resolution

RESOLUTION 11

To re-elect

Russell King

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

95.38% 4.62%

191,330,442 275,149

74.70% 0.11%

RESOLUTION 12

To re-elect

Uwe Krueger

as a Director of the Company

Ordinary resolution

RESOLUTION 12

To re-elect

Uwe Krueger

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

96.05% 3.95%

191,331,076 274,515

74.70% 0.11%

RESOLUTION 13

To re-elect

Diana Layfield

as a Director of the Company

Ordinary resolution

RESOLUTION 13

To re-elect

Diana Layfield

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.99% 0.01%

191,331,498 273,837

74.70% 0.11%

RESOLUTION 14

To re-elect

Ian Marchant

as a Director of the Company

Ordinary resolution

RESOLUTION 14

To re-elect

Ian Marchant

as a Director of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

97.57% 2.43%

191,328,282 277,309

74.70% 0.11%

RESOLUTION 15

The re-appointment of

KPMG

as Auditor of the Company

Ordinary resolution

RESOLUTION 15

The re-appointment of

KPMG

as Auditor of the Company

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.80% 0.20%

190,879,586 726,005

74.53% 0.28%

RESOLUTION 16

To authorise the Audit Committee of the Board to determine the

Ordinary resolution

Remuneration

• f the Company’s

Auditor

RESOLUTION 16

To authorise the Audit Committee of the Board to determine the

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.90% 0.10%

191,387,233 218,358

74.72% 0.09%

Remuneration

• f the Company’s

Auditor

RESOLUTION 17

The authority for

Ordinary resolution

Directors to allot

• rdinary shares

RESOLUTION 17

The authority for

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

94.63% 5.37%

185,556,350 6,049,241

72.45% 2.36%

Directors to allot

• rdinary shares

RESOLUTION 19

Ordinary resolution

To approve the

Employee sharesave plans

RESOLUTION 19

Ordinary resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.87% 0.13%

187,120,523 4,485,068

73.06% 1.75%

To approve the

Employee sharesave plans

RESOLUTION 20

Special resolution

To approve the

Disapplication of statutory pre-emption rights

RESOLUTION 20

Special resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

97.73% 2.27%

191,381,697 223,894

74.72% 0.09%

To approve the

Disapplication of statutory pre-emption rights

RESOLUTION 21

Special resolution

To approve the

Additional disapplication of statutory pre- emption rights

RESOLUTION 21

Special resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

96.70% 3.30%

185,555,744 6,049,847

72.45% 2.36%

To approve the

Additional disapplication of statutory pre- emption rights

RESOLUTION 22

Special resolution

To authorise the Company to

purchase Ordinary Shares in the capital

• f the Company

RESOLUTION 22

Special resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

99.50% 0.50%

191,393,877 211,714

74.73% 0.08%

To authorise the Company to

purchase Ordinary Shares in the capital

• f the Company

RESOLUTION 23

Special resolution

That a

general meeting of the

Company (other than an AGM)

may be called on not less than 14 clear days’ notice

RESOLUTION 23

Special resolution

Total votes cast Votes withheld % of issued share capital In favour Against % of votes cast VOTES

97.71% 2.29%

191,392,888 212,703

74.73% 0.08%

That a

general meeting of the

Company (other than an AGM)

may be called on not less than 14 clear days’ notice

A P R I L 2 7

Annual General Meeting 2017