2012 Results and Strategy Review

Transcription

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2 Results and Strategy Review

3 Results - Review Ken Hanna Chairman 3

4 Results - Review Angus Cockburn Chief Financial Officer 4

5 Results Pre-Exceptional Movement As reported Underlying Revenue 1,583 1, Revenue excl. pass-through fuel 1,543 1, Trading profit Operating profit Net interest expense (25) (18) (32) Profit before tax Taxation (95) (93) (2) Profit after tax Dividends per share (declared) 23.91p 20.79p 15 Diluted Earnings Per Share (1) All numbers are pre-amortisation of intangible assets arising from business combinations and pre-exceptional items. Note: Post amortisation and exceptional items: PBT 367m, PAT 276m, D-EPS p; PBT 324m, PAT 260m, D-EPS 97.49p 5 5

6 Results Post-Exceptional Movement As reported Underlying Revenue 1,583 1, Revenue excl. pass-through fuel 1,543 1, Trading profit Operating profit Net interest expense (25) (18) (32) Profit before tax Taxation (92) (64) (50) Profit after tax Dividends per share (declared) 23.91p 20.79p 15 Diluted Earnings Per Share (1) All numbers are pre-amortisation of intangible assets arising from business combinations Note: Post amortisation and exceptional items: PBT 367m, PAT 276m, D-EPS p; PBT 324m, PAT 260m, D- EPS 97.49p 6 6

7 Results Bridge Revenue Trading Profit 1, Currency translation impact (6) (1) pass-through fuel (108) (2) pass-through fuel 40 (1) Poit Energia acquisition 33 3 Underlying growth incl events , Headline growth Constant Currency growth revenue from Asian Games & London Olympics (6)m revenue from London Olympics 60m Underlying growth in constant currency excl events 14 6 (1) All numbers are pre-amortisation of intangible assets arising from business combinations and pre-exceptional items. (2) The underlying growth percentages include the currency impact of pass-through fuel (revenue 1m, trading profit nil ) 7 7

8 Results Balance Sheet Intangible assets/goodwill Tangible fixed assets 1,278 1,087 Working capital Provisions for liabilities & charges (6) - Retirement benefit obligation (4) (6) Derivative financial instruments (3) (14) Provisions for taxes (58) (52) Net borrowings (593) (365) NET ASSETS 1,

9 Results Financial Indicators EBITDA (1) 626m 531m Capital investment 440m 418m Net borrowings 593m 365m Interest cover EBITDA basis (1) 25 times 28 times Net debt to EBITDA (1) 0.9 times 0.7 times Effective tax rate (1) Gearing Dividend Cover (declared basis) (1) 4.2 times 4.2 times Return on average capital employed (2) (1) Before amortisation of intangible assets arising from business combinations and exceptional items. (2) Before amortisation and excluding the net book value of intangible assets arising from business combinations and pre-exceptional items. 9

10 Results Cash Flow from Operating Activities () Operating profit pre exceptional items (1) Exceptional items 7 - Depreciation & amortisation (1) Changes in working capital (169) (38) Net movement in provisions for liabilities & charges 6 - Other non-cash movements 9 16 Net cash inflow from operating activities (1) Before amortisation of intangible assets arising from business combinations 10

11 Results Cash Flow Statement () Net cash inflow from operating activities Net interest paid (23) (17) Taxation paid (83) (89) Acquisitions (1) (127) (14) Purchase of fixed assets (440) (418) Proceeds from disposal of fixed assets Dividends paid (58) (52) Cash outflow in year (239) (68) Issue of shares 3 2 Purchase of own shares held under trust (11) (10) Return of capital to shareholders (2) (148) Exchange 21 (8) Movement in net debt in year (228) (232) (1) Total cash paid as at 31 Dec for Poit was 136m comprising 127m per acquisitions line, 6m within working capital movements and the add back of the 3m of cash acquired. 11

12 Another strong performance Highlights Both business grew revenues in difficult economic environment Power Projects revenues +15, Local +23; 20 increase in average MW power on rent Power Projects benefitting from key strategic moves Gas continues to grow strongly: 750 MW on rent, + 77 more on rent y-o-y 100 MW cross-border project in Mozambique operating as an Independent Power Producer Local business growing fast Strong performance in North America; 30+ growth in emerging markets Flawless execution of London Olympics Poit Energia acquisition completed and integration progressing well Successful implementation of new organisation structure Lowlights Power Projects margins and ROCE; on-going debtor challenge in Power Projects with 25m increase in bad debt provision Continued low growth in European business in face of weak economic environment Weak H2 Power Projects order intake slowing growth rates in emerging markets 12

13 Underlying vs Reported Growth Revenues as reported (excl pass through fuel) Revenues underlying (1) (2) Trading Profit as reported (excluding pass through fuel) 14 8 Trading Profit underlying (1) (2) 6 26 (1) Underlying adjustments in were Asian Games, the London Olympics, Poit Energia, pass-through fuel and currency. (2) Underlying adjustments in were the Vancouver Winter Olympics, FIFA World Cup, the Asian Games, the London Olympics, pass-through fuel and currency. (3) All numbers are stated pre-amortisation of intangible assets. 13

14 Segmental performance as reported (1) REVENUE TRADING PROFIT Constant Curr Constant Curr Local Business Trading Margin: Rolling 12-month ROCE: Power Projects (1) excl pass-through fuel Trading Margin: Rolling 12-month ROCE: Pass-through fuel (63) (1) 2 (133) Total 1,583 1, Trading Margin: Rolling 12-month ROCE: (1) Pre-amortisation and excluding the net book value of intangible assets arising from business combinations. 14

15 Segmental performance underlying (1) REVENUE Underlying TRADING PROFIT Underlying Local Business Trading Margin: ROCE: Power Projects (1) excl pass-through fuel Trading Margin: ROCE: Total 1,450 1, Trading Margin: ROCE: (1) Pre-amortisation and excluding the net book value of intangible assets arising from business combinations. Also excluding revenue, trading profit and operating assets from Asian Games, London Olympics, Poit acquisition, pass-through fuel and currency. 15

16 Revenue Mix () REVENUE OF REVENUE EXCL PASS- THROUGH FUEL Underlying (1) Change pp Power 1, Temperature Control (2) Oil-Free Air Total Rental 1,251 1, Service Revenue Revenue excl passthrough fuel 1,543 1, Pass-through fuel N/A Total Revenue 1,583 1, (1) excluding revenue from Asian Games, London Olympics, Poit acquisition, pass through fuel and currency. 16

17 Local Business North America $m REVENUE TRADING PROFIT (1) $m Underlying Change $m $m Underlying Change Full year Trading Margin Second half Trading Margin Strong performance across a number of sectors and geographies Power revenue up 31; volume and rates up; strong performance in oil & gas sector TC down 1 mainly due to lower volumes in Cooling Towers business Significant steps taken on emissions technology; by end of 2013 will be Tier 3/4 compliant on 50 of fleet (1) before amortisation of intangible assets arising from business combinations. Note: Underlying excludes currency 17

18 Local Business Europe & Middle East REVENUE TRADING PROFIT (1) Underlying Change Underlying Change Full year Trading Margin Second half (1) Trading Margin Strong year on reported basis with successful execution of 60m London Olympics contract Respectable year on an underlying basis: Europe revenues up 3 and Middle East & Developing Europe up 8 Mixed performance across geographies: UK, Spain, Italy and most of Middle East good; Germany, France and Qatar more difficult Continued growth in Russia: over 160 MW on rent at Dec 12; and market looks promising in Iraq and Eastern Europe (1) before amortisation of intangible assets arising from business combinations. Note: Underlying excludes currency & London Olympics 18

19 Local Business Aggreko International REVENUE TRADING PROFIT (1) Underlying Change Underlying Change Full year Trading Margin Second half Trading Margin Strong growth in most areas: Australia Pacific +27, Brazil (ex Poit) +34, Mexico +34, Argentina +49 Poit Energia acquisition completed and integration of two businesses progressing well 26 new locations opened or acquired (1) before amortisation of intangible assets arising from business combinations. Note: Underlying excludes currency, Asian Games & Poit Energia acquisition. 19

20 Power Projects Excluding pass-through fuel REVENUE TRADING PROFIT (1) $m $m Underlying Change $m $m Underlying Change Full year 1, (1) Trading Margin Second half (10) Trading Margin new contracts / 1,029 MW of new work in 13 countries; 280 MW Asia, 606 MW Africa & Middle East, 143 MW Latin America Bad debt provision increased by $39m ; mainly in respect of 2 slower paying customers 12 months of revenue at current run rates Fleet size over 5,000 MW at 1/1/2013; over 1,000 MW gas Continued strong growth in gas, 77 increase in average MW on rent (1) before amortisation of intangible assets arising from business combinations. 20

21 Outlook Local business had very strong start ~20 more power on rent year-on-year; helped in part by Poit acquisition in April Power Projects signs 140 MW of new orders year to date; including 56 MW for our new HFO engine and 57 MW in Djibouti Power Projects trading remains subdued and is likely to remain so in the first half; however some improvement in prospect pipeline in recent weeks Expectations for the year as a whole remain unchanged from previous guidance 21