Project 2021 OCTOBER 13, 2016 Ashtead Group plc Investor - PowerPoint PPT Presentation

Project 2021 OCTOBER 13, 2016 Ashtead Group plc Investor Presentation

2 Ashtead Group plc Investor Presentation AGENDA / SPEAKERS What’s happening with rental penetration? Brendan Horgan CEO 20 Years Further share gains John Washburn SVP Outlook for Greenfields and Bolt-Ons 22 Years • Target markets • Benefits of clusters • What does it all shape up to? Brad Lull VP 19 Years What does it all look like by 2021?

3 Ashtead Group plc Investor Presentation PROJECT 2021  Initial plan set in 2011 to take advantage of structural changes in the market  Objective was to grow and diversify from both a geographic and product perspective  The plan proved very successful and Project 2021 is all about refining our plans

4 Ashtead Group plc Investor Presentation OUR GROWTH April 2016 April 2011 $1.1bn $2.9bn Rental Revenue Rental Revenue $1.0bn $0.2bn EBITA EBITA $2.2bn $5.5bn Fleet Size Fleet Size 356 546 # of Locations # of Locations 4% 7% Market Share Market Share

5 Ashtead Group plc Investor Presentation OUR DIVERSIFICATION SEGMENTAL ANALYSIS GEOGRAPHY GENERAL TOOL SPECIALTY 40% 22% 22 % 22% 60% TOTAL BUSINESS 47% 53% Non-Construction 2012 Construction Growth Locations

6 Ashtead Group plc Investor Presentation WHERE THE GROWTH HAS COME FROM CAGR FY11 – FY16 Same Store Bolt-Ons & Total Rental Only Growth Greenfields Revenue Growth + = +16% +6% +22% End Market Structural Share Growth Gains +8% +8%

7 Ashtead Group plc Investor Presentation OUR MARKET

8 Ashtead Group plc Investor Presentation OUR MARKET CONSTRUCTION Construction  Airports  Highways and bridges  Office buildings  Data centers  Schools and universities  Shopping centers  Residential  Remodel

9 Ashtead Group plc Investor Presentation OUR MARKET ENTERTAINMENT AND SPECIAL EVENTS Entertainment / Special Events  Concerts  Sporting events  Movies/TV production  Theme parks  Festivals  Farmers market  Local 5K

10 Ashtead Group plc Investor Presentation OUR MARKET FACILITIES AND MUNICIPALITIES Facilities and Municipalities  Office complexes  Parks and recreation depts  Schools and universities  Shopping centers  Condo complexes  Sidewalk/Curb repairs  Golf Course maintenance  Government

11 Ashtead Group plc Investor Presentation OUR MARKET EMERGENCY RESPONSE Emergency Response  Fire  Hurricanes  Flooding  Tornados  Winter storms  Residential emergencies

12 Ashtead Group plc Investor Presentation STRUCTURAL CHANGE Customers Shifting to Rental from Ownership Rental Penetration (%) 55% Market Product 20% Customer Economics 2000 2016 Years

13 Ashtead Group plc Investor Presentation RENTAL PENETRATION THE PRODUCT RANGE HIGH LOW

14 Ashtead Group plc Investor Presentation RENTAL PENETRATION THE PRODUCT RANGE AERIAL WORK PLATFORM +90% MARKET PENETRATION Drivers  Product range introduced by rental  Range of quantity and size needs  Health and safety requirements

15 Ashtead Group plc Investor Presentation RENTAL PENETRATION THE PRODUCT RANGE ROUGH TERRAIN FORKLIFT +80% MARKET PENETRATION Drivers  Manufactured largely by Aerial OEMs  Health and safety requirements • Exponential growth — universal applications

16 Ashtead Group plc Investor Presentation RENTAL PENETRATION THE PRODUCT RANGE GENERAL EQUIPMENT ~35% MARKET PENETRATION Drivers  Deep history of ownership  Absence of industry reliability

17 Ashtead Group plc Investor Presentation RENTAL PENETRATION THE PRODUCT RANGE CONTRACTOR TOOLS ~10% MARKET PENETRATION Drivers  Deep history of ownership  Absence of industry reliability  Vast range

18 Ashtead Group plc Investor Presentation RENTAL PENETRATION THE CUSTOMER – CONSTRUCTION MARKET Large National Contractor Mid-Sized Contractor Small Local Contractor

19 Ashtead Group plc Investor Presentation RENTAL PENETRATION THE CUSTOMER – NON-CONSTRUCTION MARKET Events / Entertainment Remediation / Restoration Facility / Municipality Rental Penetration

20 Ashtead Group plc Investor Presentation UNDERSTANDING RENTAL PENETRATION ECONOMICS ACQUISITION OPERATING TECHNOLOGY COSTS EXPENSES / REGULATORY    Inflation Facilities Tier4    Tier4 Employees Legislative Requirements    Capital Availability Stocking Spare Parts OSHA    Cash in hand v. Repair / Maintenance Environmental in equipment   Logistics D.O.T.

21 Ashtead Group plc Investor Presentation WHY FROM SUNBELT? PRODUCT RANGE Product Stats Fleet size $6 billion $600k Fleet range $340k 8,500 classes $190k $38k $9k $1k $250 $45 135 ’ 19’ Electric 2” Submersible 2 meg 400 ton Track Rotary Steel for Generator Chiller Boom Skidsteer Scissor Hammer Pump Air Hammer

22 Ashtead Group plc Investor Presentation WHY FROM SUNBELT? FOOTPRINT

23 Ashtead Group plc Investor Presentation WHY FROM SUNBELT? SERVICE & SOLUTIONS 193K 10,125 EMPLOYEES SERVICE CALLS JUST SAY YES! 689 FIELD TECHNICIANS 1,724 We solve customers problems AND make it easy! DRIVERS 1,442 2,440 DELIVERY & SERVICE TECHNICIANS FLEET 98 M MILES DRIVEN 73% ENGINEER, DESIGN LAST YEAR (BYPASS – SCAFFOLD - ORDERS CLIMATE CONTROL ETC.) WITHIN 24 HRS

24 Ashtead Group plc Investor Presentation WHY FROM SUNBELT? PRODUCT (Size & Range) + FOOTPRINT = (Breadth & Depth) + SERVICE & SOLUTIONS (People, Technology, Specialty)

25 Ashtead Group plc Investor Presentation WHY FROM SUNBELT? INNOVATION Complete digital eco-system COMMAND CENTER & ACCELERATE VDOS TOOLFLEX COMMAND CENTER MOBILE CREATING AVAILABILITY, RELIABILITY AND EASE FOR THE CUSTOMER

26 Ashtead Group plc Investor Presentation COMMAND CENTER

27 Ashtead Group plc Investor Presentation ACCELERATE

28 Ashtead Group plc Investor Presentation VEHICLE DELIVERY OPTIMIZATION SYSTEM (VDOS)

29 Ashtead Group plc Investor Presentation MOBILE FIELD SERVICE TOOLS

30 Ashtead Group plc Investor Presentation WHY FROM SUNBELT? INNOVATION Innovation driving rental penetration in under-penetrated product segments

31 Ashtead Group plc Investor Presentation WHY FROM SUNBELT?

32 Ashtead Group plc Investor Presentation FUTURE GROWTH STRATEGY

33 Ashtead Group plc Investor Presentation THROUGH THE CYCLE GROWTH: FY08 – FY16 Revenue EBITA FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Same Store Greenfield/Bolt-Ons Same Store Greenfield/Bolt-Ons

34 Ashtead Group plc Investor Presentation THE RENTAL MARKET: MACRO VIEW Sunbelt Rental Market Today's Rental % Of 2015 Sunbelt Rental Market Sunbelt Vs CAGR Rental Market DMAs Market $bn Market Share* CAGR (08-15) Market (08-15) 1 to 25 22.5 56% 6% 3.0% 10% 3.3x 7.5 19% 9% 2.7% 9% 3.3x 26 to 50 51 to 100 6.5 16% 5% 2.7% 13% 4.8x 100 to 210 3.8 9% 6% 2.1% 11% 5.2x Top 25 26 To 50 Markets Sunbelt Has Out Is Historically The Performed The Markets = 56% “Sunbelt” Of The Market In Each Of The U.S. U.S. – 9% Share Segment No Less Rental Market Than 3x *As of December 2015

35 Ashtead Group plc Investor Presentation THE RENTAL MARKET: MICRO VIEW

36 Ashtead Group plc Investor Presentation GROWTH TIMELINE – GREENFIELDS & BOLT-ONS 138 116 Greenfields General Tool Bolt-Ons 98 Specialty 120 Total Additions 236 236 Growth locations since April 2011

37 Ashtead Group plc Investor Presentation WHERE WE ADDED LOCATIONS 2016 2012 Opened locations Added locations in Introduced specialty existing markets to locations to existing in new markets build out clusters clusters 2012 Growth Locations

38 Ashtead Group plc Investor Presentation 2021 GROWTH LOCATIONS April 16 Planned Openings 2021 Locations 546 329 875 Targeted Advancement of Continued Clusters progression of location Specialty business openings

39 Ashtead Group plc Investor Presentation COMPOSITION OF GROWTH LOCATIONS Total 329 General Tool Specialty LOCATION TYPE 185 144 Current Partial New MARKET TYPE Clusters Clusters Markets 92 170 67 $10m - $15m $5m - $10m Under $5m $15m plus LOCATION SIZE 93 77 104 55

40 Ashtead Group plc Investor Presentation GENERAL TOOL GREENFIELD V. BOLT-ON Large Greenfields Target Bolt-Ons Target Bolt-Ons Greenfields Market Size Greenfields Greenfields Target Bolt-Ons Small High Low Sunbelt Market Share

41 Ashtead Group plc Investor Presentation SPECIALTY GREENFIELD V. BOLT-ON High Industrial Climate Control Specialty Maturity Pump & Power Scaffolding Flooring Low Greenfield Bolt-On

42 Ashtead Group plc Investor Presentation OPPORTUNITY FOR BOLT-ONS

43 Ashtead Group plc Investor Presentation UNDERSTANDING UNDERSTANDIN G THE THE CLUSTER CLUSTER

44 Ashtead Group plc Investor Presentation WORKING CLUSTER Baltimore/Washington DC Fleet Size $299 million GT Locations 21 Specialty Locations 10 Market Share 12% EBITA 44% General Tool Pump & Power ROI 31% Climate Control Flooring Industrial Scaffold