Customer teach-in 1 Customer teach-in October 2017 Introduction - - PowerPoint PPT Presentation

1 Customer teach-in October 2017

Customer teach-in

11 OCTOBER 2017

2 Customer teach-in October 2017

Chris Weston

CHIEF EXECUTIVE OFFICER

Introduction

3 Customer teach-in October 2017

Agenda

Introduction Customer priority in Power Solutions Customer priority in Rental Solutions Q&A Lunch Breakout groups: Petrochemical & Refining Oil & Gas Mining Utilities Events Temperature Control Business development Q&A Event close 10:30am 12:00pm 1:00pm 4:00pm 5:00pm Chris Weston Stephen Beynon Bruce Pool Robert Harrison Alex du Valukoff, David Dickert George Whyte, Jamie Shepherd Ana Amicarella, Bruce Pool Robert Wells Bill Carrick, Nicolas Protais Dan Ibbetson

4 Customer teach-in October 2017

Breakout groups

Group assignments

RED YELLOW BLUE GREEN ORANGE WHITE Carole Cran Tom Hull Andy O’Brien Stephen Beynon Chris Weston Louise Bryant

5 Customer teach-in October 2017

Business Priorities

Comprehensive programme in place

CUSTOMER

 Tailor sales and service channels  Focus on key sectors  Pursue adjacencies  Evaluate bolt-on M&A opportunities

EFFICIENCY

 Streamlining our cost base  Optimising deployment of resources  Improving processes and systems

TECHNOLOGY

 Work with our strategic partners to develop market

leading products

 Strengthen and expand strategic partnerships  Reduce the overall cost of power for our customers

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Stephen Beynon

MD, POWER SOLUTIONS

Power Solutions

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 Power gap estimated at 115GW

− Utility industry addresses around 8.5GW today

 Lower commodity prices have impacted developing economies, particularly export dependent  Power demand growth has been impacted but effect varies by sector and geography

Conditions vary by geography & sector

Markets

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Needs & behaviours are changing

Customer needs

Utility Customers Industrial Customers

• More organised, more

advanced purchasing departments, tenders commonplace

• Increasingly focused
• n total cost of energy
• Demand flexibility in

fuel types

• Embracing off balance

sheet solutions

• Need reliable sources of

power

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Renewables

Influencing the energy agenda

 Numerous potential benefits to developing economies

− Low/no fuel costs − Reduce emissions − Can provide access to power in off-grid areas

 Still relatively immature, improvements needed to increase cost competitiveness  Political support and subsidies required but largely unavailable

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 Our scale  Our culture  Our specialist knowledge

Our competitive advantages

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 Use our technology to drive the lowest possible total cost of energy  Improve the efficiency of our operations  Increasing our customer focus

− Deepening our knowledge of markets and

sectors

− Up-skilling and increasing our sales network − Implementing a new CRM

Building on our competitive advantages

Responding to a changing environment

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Initiative 1: Market & sector knowledge

 New approach to managing and using market intelligence – Power Market Tool

− In depth understanding of market dynamics, key to identifying most likely

• pportunities to meet our potential targets

 Detailed view of markets in 5 key areas

− Economic & political stability, ability to pay − Supply and demand balance, economic costs of no electricity − Fuel availability and cost − Off-grid opportunities − Power generation cost curve

 Benefits

− Proactive in approaching customers − Identify opportunities earlier − Manage resources effectively

Already a competitive advantage

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Initiative 2: Sales function upscale & upskill

 Recruiting more sales people

− 25% increase in Business Development Managers − Focus on sector expertise; local hires − Complement experienced in house team

 Improved training

− Strategic sales training programme − Online tool, covers products, key sectors, sales process, competitive landscape,

safety and ethics

− Supported by in depth market analysis from our Power Market Tool

Reinvesting in our sales function

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Initiative 3: Implementation of CRM

 Single source to collate, manage and track opportunities  Common sales approach across all regions  Real time flow of information globally, unlock the full value of the organisation  Improve forecasting and visibility

Managing a complex, multi stage sales process

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Conclusion

 Outlook for energy demand is

increased growth

 Business priorities are

strengthening and building on competitive advantages

 Developing a truly customer

focused business

 Committed to delivering future

growth

Our competitive advantages are the right building blocks

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16 Customer teach-in October 2017

Bruce Pool

PRESIDENT, RENTAL SOLUTIONS

Rental Solutions

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Our competitive advantage

 Engineering & technical

expertise

 In-depth front line

understanding of our customers’ problems

 Flexibility to respond to

changes in demand WOMEN’S BASKETBALL

 Cooling required with

number of environmental variables

 Used prior experience

CATALYST COOLING

 Customers wanted an

alternative to costly nitrogen for cooling

 We developed a patented

cooling process, saving the customer up to $5m

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18 Customer teach-in October 2017

• 1. Enhanced sector focus
• 2. Investment in

adjacencies

• 3. Investment in

new systems

• 4. Global account

management

Focuses us

• n four areas

Our customers expectations

Transactional Customers Full Solutions Customers

• Transactions with

minimal human interaction

• Standard packages
• Easy and repeatable

experience

• Easy, multiple options

for help

• Important to maintain

the partnership relationship

• Can benefit from

automation

• Comprehensive

technical support

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Initiative 1: Sector focus

 Oil & Gas  Utilities  Petrochemical & Refining  Events  Quarrying & Mining  Manufacturing  Business Services & Construction  Services

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OFF-GRID MINE

 Designed a low cost, low emissions solution for an

• ff-grid mine

 Used a predominantly gas solution with diesel back

up

 Heat recovery system designed to remove need for

separate heaters

 On rent for over a year, no current end date

Customer teach-in October 2017

8 clear sectors

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Products adjacent to power

Initiative 2: Adjacencies

ACQUIRED

September 2015

ACQUIRED

August 2016

ACQUIRED

January 2017

ICS

Heating specialist, Canada

Dryco

Moisture control, Illinois USA

TuCo

Heating & air conditioning, Washington USA

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SEARCH CONTACT SELECT PRICE ORDER SCHEDULE RECEIVE INSTALL OPERATE OFF HIRE RETURN INVOICE PAY LOYALTY

Customers

CMS CTI CRM CPQ E - Commerce ERP Fleet Management Transport / Inventory Management Field Service Management CRM Case Management ROC Effective Invoicing Credit / Collections NPS

Option

• ns

s being evalu luat ated ed - 2018

• Order Fulfilment
• Capacity Planning
• Mobile Logistics – Technician Apps

Initiative 3: New systems

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Initiative 3: New systems

Search & Contact Transport & Dispatch Install & Operate & De-Install Invoice & Pay

The customer journey

Refine & Select

 Customers find

solutions online

 Live chat available

to assist

 Partners have

customized portal

 Customer calls,

answered by sector experts empowered to close deal

 Access to quotes via

multiple channels

 Proposals can be

self-produced or requested

 Proposal can be

received while on phone with call center

 Seamless process

between field and technical team to complete sale

 Customer selects

delivery window and can track equipment and tech status online

 Proactive delivery

updates provided

 Customer knows

what to expect prior to arrival

 Proactive and easy

monitoring, service, and maintenance

 Load data is

documented and transparent

 Partners have

frequent status updates on Aggreko performance

 One-call assistance

for operational issues

 Reminder when

contract ending

 Multiple channels

exist to flag when ready to off-hire the equipment

 Up-to-date charges

accessible any time

 Pickup checklists to

ensure quick and efficient collection

 Easy to read

invoice that ties to

• riginal estimate/

proposal

 Customers can

select how they receive invoice

 Invoicing and

payment based on customer choice

Order process tailored to rental needs Real-time information availability Best-in-class transport and commissioning Flawless equipment reliability Best-in-class pick-up and decommissioning Simple, correct invoicing

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Video

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 Business development function and CRM open

• pportunities to pursue global accounts

 Visibility of global customers  For example Rio Tinto in mining  Potential for real value for both customers and Aggreko

Initiative 4: Global account management

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Conclusion

 Our core competency is our ability

to understand our customers’ problems and deliver complex solutions

 We are proud of being innovative

and finding new market

• pportunities

 Our initiatives strengthen us and

position us to grow

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26 Customer teach-in October 2017

Customer teach-in

11 OCTOBER 2017

27 Customer teach-in October 2017

Breakout groups

Group assignments

RED YELLOW BLUE GREEN ORANGE WHITE Carole Cran Tom Hull Andy O’Brien Stephen Beynon Chris Weston Louise Bryant

28 Customer teach-in October 2017

Dan Ibbetson

GROUP BUSINESS DEVELOPMENT DIRECTOR

Business Development

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 What business development means in Aggreko  How Aggreko structure the activity in this area  Working example – energy markets

Business Development Topics

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What business development means

 Global lines of business, adjacent product based or customer based:

− Pull through revenue − Deploying capability, building on expertise

 New products or services:

− Structural approach − Staying relevant and valuable to our customers

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 Valuable adjacent services operated as global lines

• f business:

− Temperature control − Load banks − Aggreko Events Services, global accounts

 New products or services:

− Combine with core capabilities to create

differentiated value

− Hybrid generation, data, green fuel are examples − Strong link to technology

 Corporate functions:

− M&A − Strategy

How Aggreko structure the activity in this area

Establish, learn, adjust and scale

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 Changes we are seeing in energy markets:

− Importance of electricity − Growth in renewables − Intermittency and transmission/distribution

issues  Complimentary skills and experiences required to service new and core markets  New product offering – hybrid system  Using M&A to build further capabilities – more comprehensive micro-grid offer  Learn, adjust and scale the model

Working example Energy markets

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Working example Hybrid micro-grid

 Priority is given to solar to meet the demand  Any solar excess is stored  When not enough solar is available, diesel

and storage are combined to meet the load

Dispatch Algorithm

 The overall aim is to displace expensive

diesel consumption and replace it with cheap solar electricity

Insights on Operation

6,000 4 March 2017 00:00:00 Time of day Dispatch plots 4,000 2,000

• 2,000

6 March 2017 00:00:00 5 March 2017 00:00:00

Power Diesel Power Renewable Power Storage Power Demand Excess Power

Unit: Percentage of the total load over a year

Losses ENERGY STORAGE DIESEL EXCESS RENEWABLES RENEW GENERATION LOAD 63.4 1.7 34.9 2.9 39.9 2.1 0.4 100

34 Customer teach-in October 2017

 Changes we are seeing in energy markets:

− Importance of electricity − Growth in renewables − Intermittency and transmission/distribution

issues  Complimentary skills and experiences required to service new and core markets  New product offering – hybrid system  Using M&A to build further capabilities – more comprehensive micro-grid offer  Learn, adjust and scale the model

Working example Energy markets

35 Customer teach-in October 2017

Customer teach-in

11 OCTOBER 2017