6 MARCH 2018 Results Presentation For the year ended 31 December 2017 1 Results Presentation March 2018
Introduction Chris Weston CEO 2 Results Presentation March 2018
Operating & financial review Heath Drewett CFO 3 Results Presentation March 2018
Group summary PBT in line with market expectations Group revenue up 4%, Movement 9% excluding Argentina CHANGE excluding £m Exceptional charge of pass-through pre-exceptional items FY17 FY16 CHANGE fuel and currency £41 million relating to Revenue 1,730 1,515 14% 4% investment in our business Operating profit 229 248 (8)% (10)% priorities programme Net interest expense (34) (27) (28)% Profit before tax 195 221 (12)% Tax rate of 29% Taxation (57) (63) 9% Recommended final dividend in Profit after tax 138 158 (13)% line with 2016 Diluted earnings per share 53.9p 61.9p (13)% Dividend per share 27.1p 27.1p - Operating margin 13% 16% (3)pp ROCE 11% 13% (2)pp 4 Results Presentation March 2018
Movement Business CHANGE performance excluding FY17 FY16 CHANGE pre-exceptional items currency Revenue (£m) 720 629 15% 9% RENTAL SOLUTIONS Operating profit (£m) 81 52 57% 49% Operating margin 11% 8% ROCE 12% 8% REVENUE Fleet capital expenditure (£m) 55 68 (% OF GROUP excl. pass-through fuel) 45 % % REVENUE BY SECTOR FY17 Business services & construction 21 % FLEET Petrochemical & refining 17 % at 31 December (MW) Utilities 11 % 10 % Events FY17 FY16 9 % Oil & gas 2,396 2,255 8 % Manufacturing Mining 5 % 56 % 52 % Other 19 % DIESEL GAS UTILISATION 5 Results Presentation March 2018
Movement Business CHANGE performance excluding FY17 FY16 CHANGE pre-exceptional items currency Revenue (£m) 340 262 30% 20% POWER SOLUTIONS Operating profit (£m) 55 32 71% 53% INDUSTRIAL Operating margin 16% 12% ROCE 11% 7% REVENUE Fleet capital expenditure (£m) 43 37 (% OF GROUP excl. pass-through fuel) 21 % % REVENUE BY SECTOR FY17 Oil & Gas 39 % FLEET Business services & construction 17 % at 31 December (MW) Events 11 % 8 % Manufacturing FY17 FY16 Utilities 7 % 2,521 2,465 7 % 68 % Mining 63 % Petrochemical & refining 2 % Other 9 % DIESEL GAS UTILISATION 6 Results Presentation March 2018
Movement Business CHANGE performance excluding pass- pre-exceptional items & through fuel FY17 FY16 CHANGE excluding pass-through fuel and currency POWER SOLUTIONS Revenue (£m) 531 564 (6)% (9)% UTILITY Operating profit (£m) 96 164 (42)% (42)% Operating margin 18% 29% REVENUE ROCE 10% 19% (% OF GROUP excl. pass-through fuel) Fleet capital expenditure (£m) 148 136 34 % % REVENUE BY SECTOR FY17 Utilities 83 % FLEET Oil & gas 7 % at 31 December (MW) Mining 6 % 3 % Manufacturing 79 % FY17 FY16 Other 1 % 74 % 5,004 4,947 DIESEL GAS HFO UTILISATION 7 Results Presentation March 2018
Cash flow £m FY17 FY16 Capital expenditure of £272 million EBITDA 529 533 Working capital (51) (119) − Fleet capex of £246 million Cash flows relating to exceptional items (30) (23) Three acquisitions completed in year Other 2 (3) Operating cash flow 450 388 − Younicos £45m Tax (69) (64) − KBT £25m Net interest (34) (26) Acquisitions (73) (22) − TuCo £3m Purchase of fixed assets (272) (263) Other fixed asset movements 9 18 Net debt to EBITDA of 1.2 times, unchanged Free cash flow 11 31 Dividends (69) (69) Changes in equity - (8) Net cash flow (58) (46) Exchange 55 (114) Movement in net debt (3) (160) Net debt (652) (649) 8 Results Presentation March 2018
Working capital Inventory NET POSITION Increased activity driven by major events and growth in INVENTORY Eurasia, offset by improved inventory management -1 2017 Payables -21 2016 Improvement in supplier terms; best practice employed to leverage scale PAYABLES 2017 +113 Receivables -17 2016 Revenue growth drove £90 million outflow RECEIVABLES £36 million outflow as a result of payment delays in -163 2017 Africa -81 2016 Power Solutions Utility provision increased $23 million 9 Results Presentation March 2018
Reporting changes Reflecting the changes in our business − focusing on what matters More emphasis on average MW on hire, reduced prominence of order intake − no longer routinely announcing large individual contract wins Increased customer sector focus − re-assign non utility work out of Power Solutions Utility into Industrial No future Q1 trading updates 10 Results Presentation March 2018
Outlook Continued growth expected in Rental Solutions and Power Solutions Industrial − further benefits of the business priorities programme − leveraging operational gearing Off-hires in Japan and discounted pricing in Argentina remain headwinds for Power Solutions Utility Recent strengthening of Sterling creates adverse translation effects − continuation of current rates would drive a c. 8% adverse profit impact Overall, excluding currency effects, 2018 profit before tax expected to be in line with 2017 11 Results Presentation March 2018
Making a massive difference for our customers Chris Weston CEO 12 Results Presentation March 2018
How we see our business today Making a massive difference for our customers and the communities we serve Aggreko is a customer focused specialist provider of power, temperature control and energy services on a global basis Customer Technology Efficiency People & Always Orange 13 13 Results Presentation March 2018 Results Presentation March 2018
Rental Solutions What we’ve done Market drivers Going forward Introduced sector focus Continued sector focus and specialisation 2.2 − 387 dedicated sales employees across the Use new back office systems, remote business monitoring and data analytics to drive efficiency 2.0 Reorganised business operations Drive to higher value, complex solutions £27 million cost removed across Rental Increase utilisation to >60% via fleet management systems Rebuilt customer journey 1.8 − significant investment in new systems Introduce e-commerce 1.7 1.7 Selective acquisitions GDP growth in developed markets 2017 - 2021 RESULTS TO DATE Revenue growing ROCE growing Utilisation improving +9 % 56 % 12 % 8 % UTILISATION 2016 2017 2016 2017 14 14 Results Presentation March 2018 Results Presentation March 2018
Power Solutions Industrial What we’ve done Market drivers Going forward Sector focus Continued sector focus and specialisation − Closed 20 depots; remaining around key Deploy systems proven in Rental Solutions 7,050 62 sector locations − Use new back office systems and remote − 130 sector specialists employed monitoring to drive efficiency 61 60 Removed £25m of costs Drive to higher value, complex solutions 60 Fleet rationalization and redeployment to Increase utilisation to over 70% via fleet 6,800 improve utilisation management systems 6,719 6,700 Copper price forecast $/mt 2018-2021 Oil price forecast $/BBL 2018-2021 RESULTS TO DATE Revenue growing ROCE growing Utilisation improving +20 % 11 % 68 % 7 % UTILISATION 2016 2017 2016 2017 15 15 Results Presentation March 2018 Results Presentation March 2018
Power Solutions Utility What we’ve done Market drivers Going forward Market Intelligence Platform improves market Use new back office systems, remote monitoring GDP growth & commodities understanding & customer insight and data analytics to drive efficiency Transmission & distribution 58 dedicated regional specialists Continued drive to reduce receivables and Renewables penetration inventory Removed £44 million of cost Continue to develop sales discipline New products designed to meet customer needs Improve utilisation to above 80% Deployed CRM system − particular focus on HFO & NGG sales Enhanced sales discipline and focus Total market conversion 2 – 2.5GW RESULTS TO DATE IMPACTED BY LEGACY CONTRACTS Revenue down ROCE decline Utilisation down (9) % 8 % 74 % 2 % 11 % 8 % Argentina UTILISATION 2016 2017 2016 2017 16 16 Results Presentation March 2018 Results Presentation March 2018
The future: energy markets are transforming Cloud based data analytics Our digitalisation Opportunity as we digitalise Aggreko Operating data collection via the ROC Energy market interface (where applicable) Data analytics to benefit maintenance costs and customer focused product development Y.Q system significantly enhances our ability to understand customer profiles and tailor solutions 17 Results Presentation March 2018
Added capabilities to enhance our skills The future: energy Younicos brings software to smoothly manage integration of thermal, renewable and − markets are storage transforming Opportunity as renewables grow and need to be integrated Off grid & microgrid − Commercial & Industrial behind the meter − Decarbonisation, Improve efficiency: driving down cost for customers, and through own use − decentralisation and digitalisation are changing the ways we generate and consume energy, globally \\\\\\\\ 18 Results Presentation March 2018
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