2012 Interim Results Financial Review
2012 Interim Results                                                               2012                2011               ...
2012 Interim Results                                                                           Bridge           Revenue   ...
2012 Interim ResultsBalance Sheet                                                2012    2011                             ...
2012 Interim ResultsFinancial Position                                                                            2012    ...
2012 Interim ResultsCash Flow from Operating Activities (£m)                                                              ...
2012 Interim Results                                       Cash Flow Statement (£m)                                       ...
2012 Interim Results Operating Review
A successful first half•   Highlights     •   Both business segments performed strongly; IPP revenues +17%, Local +15%    ...
Segmental performance – as reported, pre amortisation (1)      Half Year Segmental Analysis            REVENUE            ...
Segmental performance – underlying(1)        Half Year Segmental Analysis                                        REVENUE  ...
2012 Interim Results      Revenue Mix (£m)                                                                     REVENUE    ...
Local Business – North America                                                                       REVENUE              ...
Local Business – Europe & Middle East                                                                    REVENUE          ...
Local Business – Aggreko International                                                                    REVENUE         ...
International Power Projects       Excluding pass-through fuel                                     REVENUE                ...
Outlook  •   Expect to report strong growth in revenue and profit in Local business supported by      London Olympics and ...
2012 Interim Results Financial Review       END
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Aggreko 2012 Interim Results

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Aggreko 2012 Interim Results

  1. 1. 2012 Interim Results Financial Review
  2. 2. 2012 Interim Results 2012 2011 Movement £m £m As reported Underlying Revenue 734 637 15% 16% Trading profit 159 127 25% 23% Operating profit 160 129 24% Net interest expense (12) (8) (45)% Profit before tax 148 121 23% Taxation (39) (35) (12)% Profit after tax 109 86 27% Dividend per share (declared) 8.28p 7.20p 15% Diluted earnings per share (pence) 41.48 32.03 30%Note: All numbers are pre-amortisation of intangible assets arising from business combinations. Post amortisation 2012 PBT £146m, PAT £108m, D-EPS 40.91p; 2011 PBT £119m, PAT £85m, D-EPS 31.58p. 2
  3. 3. 2012 Interim Results Bridge Revenue Trading Profit £m £m 2011 637 127 Currency translation impact 7 3 2011 pass-through fuel (53) (1) 2012 pass-through fuel 20 - Poit Energia acquisition 11 2 Underlying growth incl events 112 28 2012 734 159 Headline growth 15% 25% Constant Currency growth 14% 22% 2011 revenue from Asian Games £(2)m 2012 revenue from London Olympics £21mUnderlying growth in constant currency excl events 16% 23%All numbers are pre-amortisation of intangible assets arising from business combinations. 3
  4. 4. 2012 Interim ResultsBalance Sheet 2012 2011 £m £m Intangible fixed assets/goodwill 180 82 Tangible fixed assets 1,235 939 Working capital 255 183 Retirement benefit obligation (1) (1) Derivative financial instruments (14) (9) Provisions for taxes (50) (62) Net borrowings (678) (257) NET ASSETS 927 875 4
  5. 5. 2012 Interim ResultsFinancial Position 2012 2011 EBITDA £270m £215m Capital investment £233m £181m Net borrowings £678m £257m Interest cover – EBITDA basis (1) 26 times 36 times Net debt/EBITDA (1) 1.2 times 0.5 times Effective tax rate 26.0% 28.5% Dividend Cover (declared basis) (2) 5.0 times 4.4 times Return on average capital employed (1) (2) 27% 29% (1) Rolling 12 month basis. (2) Pre-amortisation of intangible assets arising from business combinations and excluding net book value of intangible assets from business combinations (2011 ROCE restated to exclude net book value of intangible assets from business combinations). 5
  6. 6. 2012 Interim ResultsCash Flow from Operating Activities (£m) 2012 2011 Operating profit (1) 160 129 Depreciation & amortisation (1) 110 86 Changes in working capital (143) (69) Other non-cash movements 7 9 Net cash inflow from operating activities 134 155 (1)Pre-amortisation of intangible assets arising from business combinations. 6
  7. 7. 2012 Interim Results Cash Flow Statement (£m) 2012 2011 Net cash inflow from operating activities 134 155 Net interest paid (11) (6) Taxation paid (44) (53) Acquisitions(1) (122) (14) Purchase of fixed assets (233) (181) Proceeds from disposal of fixed assets 5 6 Dividends paid (36) (33) Cash outflow in period (307) (126) Issue of shares 2 1 Purchase of own shares held under trust (11) - Return of capital to shareholders (2) - Exchange 4 - Movement in net debt in period (314) (125)(1) Total cash paid as at 30 June 2012 for Poit was £130m comprising £122m per acquisitions line, £5m within working capital movements and the add back of the £3m of cash acquired. 7
  8. 8. 2012 Interim Results Operating Review
  9. 9. A successful first half• Highlights • Both business segments performed strongly; IPP revenues +17%, Local +15% underlying • Strong order intake in International Power Projects • IPP gas continues to grow rapidly; ~100% more on rent y-o-y • Strong performances in North America, International Local and Middle East & Developing Europe • Successful start to London Olympics contract – now worth around £55m • Poit Energia acquisition completed and performing in line with our expectations• Lowlights • IPP Debtors: $25m increase in bad debt provision in H1 2012 • Continued weakness in European business in face of weak macro economic environment • Lack of emergency cooling tower work impacted temperature control revenues in Q2 in US 9
  10. 10. Segmental performance – as reported, pre amortisation (1) Half Year Segmental Analysis REVENUE TRADING PROFIT 2012 2011 Constant 2012 2011 Constant £m £m Curr % £m £m Curr % Local Business 404 325 24% 54 41 29% Trading Margin: 13% 13% Rolling 12-month ROCE: 18% 23% Int’nl Power Projects 310 259 17% 105 85 22% excl pass-through fuel Trading Margin: 34% 33% Rolling 12-month ROCE: 38% 37% Pass-through fuel 20 53 (64)% - 1 (150)% Total 734 637 14% 159 127 22% Trading Margin: 22% 20% Rolling 12-month ROCE: 27% 29%sing from business combinations. 10
  11. 11. Segmental performance – underlying(1) Half Year Segmental Analysis REVENUE TRADING PROFIT 2012 2011 Underlying 2012 2011 Underlying £m £m % £m £m % Local Business 372 323 15% 50 41 24% Trading Margin: 14% 13% Rolling 12-month ROCE: 19% 20% Int’nl Power Projects 310 266 17% 105 86 22% excl pass-through fuel Trading Margin: 34% 33% Rolling 12-month ROCE: 38% 37% Total 682 589 16% 155 127 23% Trading Margin: 23% 22% Rolling 12-month ROCE: 28% 28%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, FIFA World Cup (from 2011 ROCE number), pass-through fuel and currency. 11
  12. 12. 2012 Interim Results Revenue Mix (£m) REVENUE % OF REVENUE EXCL PASS-THROUGH FUEL 2012 2011 Underlying(1) 2012 2011 Change % pp Power 518 416 18% 72% 71% 1 Temperature Control 49 52 (6)% 7% 9% (2) Oil-Free Air 13 13 (2)% 2% 2% - Total Rental 580 481 15% 81% 82% (1) Service Revenue 134 103 22% 19% 18% 1 Revenue excl pass- 714 584 16% 100% 100% through fuel Pass-through fuel 20 53 N/A Total Revenue 734 637 16%(1) excluding revenue from Asian Games, London Olympics, Poit acquisition, pass–through fuel and currency. 12
  13. 13. Local Business – North America REVENUE TRADING PROFIT(1) 2012 2011 Underlying 2012 2011 Underlying $m $m Change $m $m Change % % First half 208 185 12% 33 28 20% Trading Margin 16% 15% • Strong performance in the first half • Power revenue up 27%; volume and average rates up; strong performance in oil & gas sector; TC down 10% mainly due to lower volumes in our Cooling Towers business • Significant steps taken on emissions technology; by end of 2013 will be Tier 3/4 compliant on 50% of fleet • Good start to H2; we expect good growth in H2 and for year as a whole(1) before amortisation of intangible assets arising from business combinations. Note: Underlying excludes currency. 13
  14. 14. Local Business – Europe & Middle East REVENUE TRADING PROFIT(1) 2012 2011 Underlying 2012 2011 Underlying £m £m Change £m £m Change % % First half 165 132 10% 14 10 20% Trading Margin 9% 7% • Good first half, but underlying revenue growth strongly skewed to Middle East & Developing Europe (+25%); European revenues flat year-on-year • Power rates increase but TC rates decrease • London Olympics: over 550 generators & 1,500 kilometres of cable across 44 sites; total contract worth around £55m - £21m recognised in H1 • For year as a whole we expect to report strong growth as a result of the Olympics; underlying growth will be modest(1) before amortisation of intangible assets arising from business combinations. Note: Underlying excludes currency and London 2012 Olympics. 14
  15. 15. Local Business – Aggreko International REVENUE TRADING PROFIT(1) 2012 2011 Underlying 2012 2011 Underlying £m £m Change £m £m Change % % First half 107 78 27% 19 15 34% Trading Margin 17% 19% • Strong growth across most countries: Australia Pacific + 18%, Brazil (excl Poit Energia) +33%, India +64%, Mexico +42% • Poit Energia acquisition completed and performing in line with our expectations • New locations opened in Cape Town & Nairobi; continue to expand in fast growing economies • Underlying rate of growth to moderate in H2 as comparatives becoming more challenging; we still expect to deliver a strong underlying growth for the year as a whole(1) before amortisation of intangible assets arising from business combinations. Note: Underlying excludes currency, Asian Games & Poit acquisition. 15
  16. 16. International Power Projects Excluding pass-through fuel REVENUE TRADING PROFIT(1) 2012 2011 Underlying 2012 2011 Underlying $m $m Change $m $m Change % % First half 490 419 17% 166 137 22% Trading Margin 34% 33% •24 new contracts equating to 669 MW of new work - 196 MW in Asia, 116 MW in Latin America, 357 MW in Africa & Middle East •Bad debt provision increased by $25m; similar to H1 2011 ($23m) •Record Order book ; 16% higher at start of H2 than prior year •Continued strong growth in gas, c100% increase in average MW on rent •We expect IPP to have a strong year of revenue growth; margins & returns will be lower due to(1) before amortisation of intangible assets arising from business combinations. Note: Underlying excludes currency. 16
  17. 17. Outlook • Expect to report strong growth in revenue and profit in Local business supported by London Olympics and Poit Energia acquisition • Underlying revenue growth in Local business will be lower in H2 than H1 due to tough comparators and macro-economic weakness in mature markets; margins on both underlying and reported basis will be higher than 2012 • IPP record order intake means business will have a strong year in terms of revenue growth. Margins and returns forecast to be lower than 2011; assumptions on bad debt provisioning and unusually high mobilisation costs a significant factor in this • Anticipate Group margins for the year as a whole to be at similar levels to last year with Local margins and favourable mix offsetting lower margins in IPP • Overall we continue to believe that we will deliver another year of good growth in 2012 and reiterate £415m fleet capex guidance 17
  18. 18. 2012 Interim Results Financial Review END

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