A P R I L 2 7 Annual General Meeting 2017
INTRODUCTION Ken Hanna Chairman
Agenda 1 Introduction Ken Hanna, Chairman 2 2016 overview, business priorities update & 2017 outlook Chris Weston, CEO 3 Resolutions Ken Hanna, Chairman
Chris Weston CEO
Overview A challenging year for the business 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
Group summary PBT in line with market expectations Movement Group margins & returns Change excl slightly down; impacted pass-through by lower oil price £m fuel and pre-exceptional items 2016 2015 Change currency Tax rate of 28% Revenues 1,515 1,561 (3)% (10)% Dividend maintained 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 Business priorities What we said What we’ve done Surveyed over 1,000 customers in key sectors CUSTOMER Mapped customer journey; re-worked processes Key sector focus and sourced most appropriate systems Develop digital offering Implementing new CRM EFFICIENCY Wider digitisation of organisation Deploy new systems and Remote monitoring across whole Rental fleet automation in the field Streamline back office processes BOLT-ON Acquisition of Dryco ACQUISITIONS
Power Solutions Business priorities What we said What we’ve done EFFICIENCY Removed £80 million in costs to date Reduce the cost base Plans to right-size or close a third of depots Review of overhead and functional structures Optimise the depot footprint 5 year technology road map, supported by suppliers TECHNOLOGY Upgraded around 300 G3 diesel engines to G3+, upgrade path to next Improve cost of power generation of this engine progressing Leverage strategic supplier Investment in new gas engine, upgrade path to next generation of this relationships engine progressing First 16 medium speed HFO engines built, 2 contracts agreed Explore options in renewables First solar diesel contract signed CUSTOMER Work to understand customers by country & type Improve sales expertise & Recruiting new sales force; upskilling existing team customer service CRM introduced across the business Global account management
Outlook Growth offset by Argentina reprice 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
FORMAL BUSINESS Ken Hanna Chairman
RESOLUTION 1 Ordinary resolution To receive the reports of the Directors and Auditors and to adopt the Company’s accounts for the year ended 31 December 2016
RESOLUTION 1 Ordinary resolution To receive the % of issued share capital VOTES reports of the Directors 73.89 % Total votes cast and Auditors and 189,260,583 0.92 % Votes withheld 2,345,008 to adopt the Company’s accounts % of votes cast for the year ended 31 December 100 % In favour 2016 0.00 % * Against *The actual percentage is 0.002%
RESOLUTION 2 Ordinary resolution To approve the Annual Statement and Report on Remuneration for the year ended 31 December 2016
RESOLUTION 2 Ordinary resolution To approve the % of issued share capital VOTES Annual Statement 74.37 % Total votes cast 190,476,788 and Report on 0.44 % Votes withheld 1,128,803 Remuneration for the % of votes cast year ended 31 December 2016 97.50 % In favour 2.50 % Against
RESOLUTION 4 Ordinary resolution To approve the final dividend for the year ended 31 December 2016 of 17.74 pence per ordinary share
RESOLUTION 4 Ordinary resolution To approve the % of issued share capital VOTES final dividend 74.73 % Total votes cast 191,394,442 for the year ended 0.08 % Votes withheld 211,149 31 December 2016 of 17.74 pence % of votes cast per ordinary share 100 % In favour 0.00 % Against
RESOLUTION 5 Ordinary resolution To elect Barbara Jeremiah as a Director of the Company
RESOLUTION 5 Ordinary resolution To elect % of issued share capital VOTES Barbara Jeremiah 74.70 % Total votes cast 191,331,201 as a Director of the Company 0.11 % Votes withheld 274,390 % of votes cast 97.56 % In favour 2.44 % Against
RESOLUTION 6 Ordinary resolution To elect Miles Roberts as a Director of the Company
RESOLUTION 6 Ordinary resolution To elect % of issued share capital VOTES Miles Roberts 74.70 % Total votes cast 191,330,114 as a Director of the Company 0.11 % Votes withheld 275,477 % of votes cast 99.98 % In favour 0.02 % Against
RESOLUTION 7 Ordinary resolution To re-elect Ken Hanna as a Director of the Company
RESOLUTION 7 Ordinary resolution To re-elect % of issued share capital VOTES Ken Hanna 74.70 % Total votes cast 191,328,383 as a Director of the Company 0.11 % Votes withheld 277,208 % of votes cast 96.92 % In favour 3.08 % Against
RESOLUTION 8 Ordinary resolution To re-elect Chris Weston as a Director of the Company
RESOLUTION 8 Ordinary resolution To re-elect % of issued share capital VOTES Chris Weston 74.70 % Total votes cast 191,332,663 as a Director of the Company 0.11 % Votes withheld 272,928 % of votes cast 99.98 % In favour 0.02 % Against
RESOLUTION 9 Ordinary resolution To re-elect Carole Cran as a Director of the Company
RESOLUTION 9 Ordinary resolution To re-elect % of issued share capital VOTES Carole Cran 74.70 % Total votes cast 191,332,854 as a Director of the Company 0.11 % Votes withheld 272,737 % of votes cast 99.02 % In favour 0.98 % Against
RESOLUTION 10 Ordinary resolution To re-elect Dame Nicola Brewer as a Director of the Company
RESOLUTION 10 Ordinary resolution To re-elect % of issued share capital VOTES Dame Nicola Brewer 74.70 % Total votes cast 191,337,315 as a Director of the Company 0.10 % Votes withheld 268,276 % of votes cast 99.98 % In favour 0.02 % Against
RESOLUTION 11 Ordinary resolution To re-elect Russell King as a Director of the Company
RESOLUTION 11 Ordinary resolution To re-elect % of issued share capital VOTES Russell King 74.70 % Total votes cast 191,330,442 as a Director of the Company 0.11 % Votes withheld 275,149 % of votes cast 95.38 % In favour 4.62 % Against
RESOLUTION 12 Ordinary resolution To re-elect Uwe Krueger as a Director of the Company
RESOLUTION 12 Ordinary resolution To re-elect % of issued share capital VOTES Uwe Krueger 74.70 % Total votes cast 191,331,076 as a Director of the Company 0.11 % Votes withheld 274,515 % of votes cast 96.05 % In favour 3.95 % Against
RESOLUTION 13 Ordinary resolution To re-elect Diana Layfield as a Director of the Company
RESOLUTION 13 Ordinary resolution To re-elect % of issued share capital VOTES Diana Layfield 74.70 % Total votes cast 191,331,498 as a Director of the Company 0.11 % Votes withheld 273,837 % of votes cast 99.99 % In favour 0.01 % Against
RESOLUTION 14 Ordinary resolution To re-elect Ian Marchant as a Director of the Company
RESOLUTION 14 Ordinary resolution To re-elect % of issued share capital VOTES Ian Marchant 74.70 % Total votes cast 191,328,282 as a Director of the Company 0.11 % Votes withheld 277,309 % of votes cast 97.57 % In favour 2.43 % Against
RESOLUTION 15 Ordinary resolution The re-appointment of KPMG as Auditor of the Company
RESOLUTION 15 Ordinary resolution The re-appointment of % of issued share capital VOTES KPMG 74.53 % Total votes cast 190,879,586 as Auditor of the Company 0.28 % Votes withheld 726,005 % of votes cast 99.80 % In favour 0.20 % Against
RESOLUTION 16 Ordinary resolution To authorise the Audit Committee of the Board to determine the Remuneration of the Company’s Auditor
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