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HALF YEAR RESULTS 10 December 2024
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Half year results | 31 October 20242 LEGAL NOTICE This presentation has been prepared to inform investors and prospective investors in the secondary markets about the Group and does not constitute an offer of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Ashtead Group plc or any of its subsidiary companies. The presentation contains forward-looking statements which are necessarily subject to risks and uncertainties because they relate to future events. Our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control and, consequently, actual results may differ materially from those projected by any forward-looking statements. Some of the factors which may adversely impact some of these forward-looking statements are discussed in the Principal Risks and Uncertainties section on pages 36-41 of the Group’s Annual Report and Accounts for the year ended 30 April 2024 and in the unaudited results for the second quarter ending 31 October 2024 under “Current trading and outlook” and “Principal risks and uncertainties”. Both these reports may be viewed on the Group’s website at www.ashtead-group.com. This presentation contains supplemental non-GAAP financial and operating information which the Group believes provides valuable insight into the performance of the business. Whilst this information is considered as important, it should be viewed as supplemental to the Group’s financial results prepared in accordance with International Financial Reporting Standards and not as a substitute for them.
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Half year results | 31 October 20243 PROPOSED US PRIMARY LISTING We believe the US market is the natural long-term listing venue for the Group. In arriving at this conclusion, the Board has considered several factors and potential benefits, including: alignment of the primary listing location with the majority of the Group’s business activity, leadership team and employee base; increased exposure to US investors through a primary US listing; enhanced overall liquidity in the Group’s shares given access to deeper US capital markets; improved Group profile and go-to-market strategy through a Group rebranding as Sunbelt Rentals; simplify share ownership for the wider employee base of the Group and expanded access to the recruitment and retention of top US talent; and optimised positioning of the Group for inclusion in premier US equity indices. Over the coming weeks, we will discuss this proposal with shareholders before putting forward a formal resolution for approval of a move to a US primary listing at a general meeting in due course. We expect that the necessary steps would be implemented over the next 12-18 months.
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Half year results | 31 October 20244 HIGHLIGHTS Group rental revenue up 6%, revenue up 2%; US rental revenue up 5%, revenue up 1% 4% increase in EBITDA to $2,698m (2023: $2,583m) with strong fall-through Lower used equipment sales resulted in gains of $35m (2023: $113m) Profit before tax¹ of $1,255m (2023: $1,312m) and EPS¹ of 213.6ȼ (2023: 225.8ȼ) $1.7bn of capital invested in the business (2023: $2.5bn) Strong first half free cash flow of $420m (2023: outflow of $355m) Interim dividend of 36ȼ per share (2023: 15.75ȼ), reflecting rebalanced interim/final dividend split Net debt to EBITDA leverage² of 1.7 times (2023: 1.8 times) Adjusted our full-year guidance to reflect local commercial construction market dynamics Exercising dynamic capital allocation with launch of new share buyback programme of up to $1.5bn over 18 months Our outlook is positive and we look to Sunbelt 4.0 and the future with confidence 1 Adjusted PBT and EPS 2 Excluding the impact of IFRS 16
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FINANCIAL REVIEW Half year results | 31 October 20245 MICHAEL PRATT
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Half year results | 31 October 20246 GROUP The results in the table above are the Group’s adjusted results and are stated before intangible amortisation 1 At constant exchange rates $m 2024 2023 Change1 Revenue 5,695 5,573 2% ‐ of which rental 5,265 4,960 6% Operating costs (2,997) (2,990) - % EBITDA 2,698 2,583 4% Depreciation (1,156) (1,020) 13% Operating profit 1,542 1,563 -1% Net interest (287) (251) 14% Profit before amortisation and tax 1,255 1,312 -4% Earnings per share 213.6ȼ 225.8ȼ -5% Margins ‐ EBITDA ‐ Operating profit 47.4% 27.1% 46.3% 28.1% Return on investment 15.2% 18.3%
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Half year results | 31 October 20247 US The results in the table above are the US’s adjusted results and are stated before intangible amortisation $m 2024 2023 Change Revenue 4,844 4,792 1% ‐ of which rental 4,518 4,299 5% Operating costs (2,442) (2,461) -1% EBITDA 2,402 2,331 3% Depreciation (970) (850) 14% Operating profit 1,432 1,481 -3% Margins ‐ EBITDA ‐ Operating profit 49.6% 29.6% 48.7% 30.9% Return on investment 20.9% 26.1%
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Half year results | 31 October 20248 CANADA The results in the table above are Canada's adjusted results and are stated before intangible amortisation C$m 2024 2023 Change Revenue 508 446 14% ‐ of which rental 459 382 20% Operating costs (273) (256) 7% EBITDA 235 190 24% Depreciation (124) (110) 13% Operating profit 111 80 38% Margins ‐ EBITDA ‐ Operating profit 46.3% 21.9% 42.7% 18.0% Return on investment 12.0% 14.3%
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Half year results | 31 October 20249 UK The results in the table above are the UK’s adjusted results and are stated before intangible amortisation £m 2024 2023 Change Revenue 371 359 3% ‐ of which rental 319 301 6% Operating costs (262) (257) 2% EBITDA 109 102 7% Depreciation (73) (69) 5% Operating profit 36 33 12% Margins ‐ EBITDA ‐ Operating profit 29.5% 9.8% 28.5% 9.1% Return on investment 7.3% 6.5%
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Half year results | 31 October 202410 CASH FLOW Half year LTM October $m 2024 2023 2024 EBITDA before exceptional items 2,698 2,583 5,007 Cash conversion ratio1 94% 86% 97% Cash inflow from operations2 2,543 2,228 4,857 Replacement and non-rental capital expenditure (1,236) (1,458) (2,585) Rental equipment and other disposal proceeds received 245 345 779 Interest and tax paid (544) (422) (881) Cash inflow before discretionary expenditure 1,008 693 2,170 Growth capital expenditure (588) (1,048) (1,179) Free cash flow 420 (355) 991 Business acquisitions (59) (676) (258) Business disposals - - 2 Investments - (5) (10) Dividends paid (387) (368) (456) Purchase of own shares by the Company / ESOT (85) (72) (121) Increase in net debt (111) (1,476) 148 1 Cash inflow from operations as a percentage of EBITDA 2 Before fleet changes
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Half year results | 31 October 202411 NET DEBT 2.5 2.1 2.0 1.9 1.8 1.8 1.8 1.9 1.7 1.5 1.6 1.8 1.7 1.0 1.5 2.0 2.5 3.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Leverage (excluding impact of IFRS 16) 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Fleet cost Fleet OLV Net debt $m $m 2024 2023 Opening net debt 10,655 8,960 Change from cash flows 111 1,476 Translation impact 2 (44) Debt acquired 19 97 New lease liabilities 154 152 Deferred debt raising cost amortisation 4 3 Net debt at period end 10,945 10,644 Comprising: First lien senior secured bank debt 2,035 2,839 Senior notes 6,151 5,303 Cash in hand (24) (26) Net borrowings at period end 8,162 8,116 Lease obligations 2,783 2,528 Net debt at period end 10,945 10,644 Net debt to EBITDA leverage1 (excl. IFRS 16) (x) Net debt to EBITDA leverage1 (incl. IFRS 16) (x) 1.7 2.2 1.8 2.2 1 At October 2024 exchange rates $3.7bn At constant exchange rates (October 2024)
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Half year results | 31 October 202412 ROBUST AND FLEXIBLE DEBT STRUCTURE Closed increased $4.75bn ABL facility and extended maturity to November 2029 Subsequent to refinancing, borrowing facilities committed for average of six years at a weighted average cost of 5% No financial monitoring covenants whilst availability exceeds $475m (October 2024: $2,824m pro forma for increased ABL) Debt maturity prior to refinancing activities $m $1,000m $2,000m $3,000m $4,000m $5,000m $6,000m FY25 FY26 Aug 2026 $550m Aug 2027 $600m May 2028 $600m Nov 2029 $600m FY31 Aug 2031 $750m Aug 2032 $750m May 2033 $750m Oct 2033 $750m Apr 2034 $850m Undrawn Drawn Notes Debt maturity subsequent to refinancing activities $m $1,000m $2,000m $3,000m $4,000m $5,000m $6,000m FY25 FY26 Aug 2026 $550m Aug 2027 $600m May 2028 $600m Nov 2029 $600m FY31 Aug 2031 $750m Aug 2032 $750m May 2033 $750m Oct 2033 $750m Apr 2034 $850m Undrawn Drawn Notes
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Half year results | 31 October 202413 2024/25 OUTLOOK Previous guidance Current guidance Rental revenue1 - US 4 to 7% 2 to 4% - Canada 15 to 19% 15 to 19% - UK 3 to 6% 3 to 6% - Group 5 to 8% 3 to 5% Capital expenditure (gross)2 $3.0 to 3.3bn $2.5 to 2.7bn - of which, rental fleet is: $2.3 to 2.6bn $1.9 to 2.1bn Free cash flow2 c. $1.2bn c. $1.4bn 1 Represents year-over-year rental revenue growth at constant currency 2 Current guidance stated at C$1 = $0.75 and £1 = $1.27
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OPERATIONAL REVIEW BRENDAN HORGAN Half year results | 31 October 202414
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Half year results | 31 October 202415 US TRADING FY24 FY25 Q1 Q2 Q3 Q4 FY Q1 Q2 YTD General tool +14% +13% +8% +7% +11% +3% +1% +2% Specialty +17% +14% +8% +15% +14% +17% +14% +15% Total +15% +13% +8% +9% +12% +7% +4% +6% Growth of +4% in Q2 on top of +13% last year General tool growth reflects slower local non-residential construction market offset by ongoing mega projects Specialty growth of +14% aided by hurricane response efforts and the benefit of ongoing structural change Rental rates advanced for another quarter, with indicators pointing to continued progression Fleet on rent May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2022/23 2023/24 2024/25 1 Rental only revenue presented on a billing day basis Rental revenue1
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• Strong non-resi/non-building construction market with moderate growth forecast through 2028, following three years of accelerated growth • Outlook underpinned by market dynamics, such as onshoring, technology advancement and federal investments (e.g. IIJA, CHIPS, IRA) • Current environment leads to record levels of mega projects and prolonged infrastructure spend offsetting lower local, every day, commercial construction Half year results | 31 October 202416 US CONSTRUCTION OUTLOOK 2022 2023 2024 2025 2026 2027 2028 2029 Construction put in place ($bn) Non-residential 608 744 772 817 844 877 925 978 Non-building 314 363 415 477 508 522 526 519 Construction (excl. resi) 922 1,107 1,187 1,294 1,352 1,399 1,451 1,497 Growth +13% +20% +7% +9% +4% +3% +4% +3% Residential 927 873 949 1,020 1,130 1,287 1,445 1,593 Construction (total) 1,849 1,980 2,136 2,314 2,482 2,686 2,896 3,090 Construction growth +14% +7% +8% +8% +7% +8% +8% +7% Rental market ($bn) Rental 64 72 78 83 86 90 94 na Rental growth +14% +13% +8% +6% +4% +4% +5% na Source: Dodge Data & Analytics (December 2024) Source: S&P Global Market Intelligence (November 2024) na: not available 50 70 90 110 130 150 170 190 210 230 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 50 100 150 200 250 300 350 400 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 Dodge construction starts Indexed: 2000=100 Source: Dodge Data & Analytics (November 2024) Dodge momentum index Indexed: 2000=100, seasonally adjusted Source: Dodge Data & Analytics (November 2024)
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Half year results | 31 October 202417 A KEY FEATURE OF THE CONSTRUCTION LANDSCAPE 1. Dodge Construction Network – November 2024 MEGA PROJECTS ENDURE PLANNEDMEGA PROJECTVALUEONGOINGAND PLANNEDPROJECTSFROM MAY2022 THROUGHAPRIL20271 • Mega projects typically take ~3 years to complete • FY25-27 project count and values continue to increase • Robust mega project win rate FY22-24 FY25-27 $509bn $974bn 414 projects 689 projects
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Half year results | 31 October 202418 INCREASINGLY LARGE AND RESILIENT WITH VAST OPPORTUNITY FOR GROWT H MAJOR NON-CONSTRUCTION END MARKETS 1. Frost & Sullivan 2024 2. IBIS World 2024 3. IBIS World 2024 4. GovWin 2024 SLED Government Forecast 5. USDA 2024 6. US DOD FY25 Budget Request 7. 2018 Commercial Buildings Energy Consumption Survey MAINTENANCE, REPAIR & OPERATIONS Highly stable end market characterised by work that is needed regardless of macro-economic landscape. ANNUAL SPEND US MARKET $575bn1 ENTERTAINMENT & SPECIAL EVENTS Large and stable end market with predictability and long-term growth prospects.ANNUAL SPEND US MARKET $395bn2 EMERGENCY RESPONSE & RESTORATION Large natural disasters generate spikes in demand, but day to day emergencies generate steady demand. ANNUAL SPEND US MARKET $80bn3 STATE & LOCAL GOVERNMENT Most stable end market, with expenditure typically determined in advance, that is sheltered from macro- economic shifts. ANNUAL SPEND US MARKET $832bn4 AGRICULTURE NATIONAL DEFENSE Annual operating budget for crop and livestock production Annual operating budget for military agencies $238bn5 $876bn6 COMMERCIAL PROPERTY UNDER ROOF >100bn sq.ft.7 Areas of existing rental applications and ongoing opportunity for rental penetration growth
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Half year results | 31 October 202419 CANADA TRADING May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2022/23 2023/24 2024/25 Canada has a strong foundation, with 5 of the top 10 markets clustered (13 in total), to deliver strong margins and returns during Sunbelt 4.0, as the business continues to mature Added five locations through greenfields and a bolt-on Rental rates continue to progress Film & TV activity levels have recovered but lagging pre-strike levels 2021 2022 2023 2024 2025 2026 2027 2028 Market growth +18% +11% +5% +7% +8% +7% +4% +4% Canadian rental market forecasts 2022 2023 2024 2025 2026 2027 2028 Market (C$m) 136,060 134,791 154,400 148,628 155,295 161,035 167,612 Market growth +7% -1% +15% -4% +4% +4% +4% Canadian building permit values Source: Dodge Data & Analytics (July 2024) Source: S&P Global Market Intelligence (November 2024) Fleet on rent (excluding Film & TV)
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Half year results | 31 October 202420 UK TRADING Rental revenue up 6%, driven by market share gains Market conditions remain subdued Unique range of general and specialty products in the UK market resulting in significant customer wins across diverse end markets Focus on rental rate is paramount to improved performance Expertise and range of product to deliver an integrated solution for complex customer requirements Sustainability efforts delivering a differentiated customer value proposition Source: Construction Products Association (Autumn 2024) 2022 2023 2024 2025 2026 Construction industry +7% +2% -3% +2% +4% Diversify the customer base Broaden the total addressable market Drive margin expansion through efficiencies and rate progression Deliver long-term sustainable value for our people, customers and communities Invest responsibly driving strong free cash flow Sunbelt 4.0
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Half year results | 31 October 202421 CONSISTENTLY APPLIED POLICY CONTINUES 1. Reflects rebalancing of interim and final dividend split CAPITAL ALLOCATION CLEAR PRIORITIES APPLICATION Organic fleet growth Same-store Greenfields $1.7bn invested in the business 36 greenfields opened in North America Bolt-on acquisitions $53m spent on two bolt-on acquisitions, which added 11 locations Good pipeline – exercising pricing discipline Returns to shareholders Progressive dividend policy Share buybacks Interim dividend announced of 36ȼ1 per share (2023: 15.75ȼ) Launched new share buyback programme of up to $1.5bn over 18 months UNDERPINNED BY TARGET NET DEBT TO EBITDA LEVERAGE RANGE OF 1.0 TO 2.0 TIMES – 1.7 TIMES AT 31 OCTOBER 2024
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Half year results | 31 October 202422 5 ACTIONABLE COMPONENTS UNDERPINNED BY STRONG FOUNDATIONAL ELEME NTS SUNBELT 4.0 CUSTOMER GROWTH INVESTMENT PERFORMANCE 2 4 5 3 1 SUSTAINABILITY Progress Actionable component $1.7bn of capital invested in the business of which $1.4bn invested in rental assets Opened 36 greenfields in North America $53m spend on two bolt-on acquisitions, adding 11 locations in North America 59 of the top US markets clustered Margin progression through leveraging SG&A and maturation of Sunbelt 3.0 location additions Advancing our technology platform, Connect360, throughout the organisation Laying foundations for enhanced community involvement through signature partnerships, local giving and hurricane relief efforts Amended and extended $4.75bn senior credit facility now maturing in November 2029 Interim dividend announced of 36ȼ (2023: 15.75ȼ) Launched share buyback programme of up to $1.5bn over 18 months
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Half year results | 31 October 202423 SUMMARY Well positioned in supportive end markets Robust mega project landscape mitigating weaker local commercial construction markets Sunbelt 4.0 initiatives progressing well Proposed US primary listing Demonstrating the benefits of structural progression and our business model: - discipline in capital expenditure - disciplined pricing environment - strong free cash flow deployed in accordance with capital allocation priorities Launch of new share buyback programme of up to $1.5bn over 18 months Leverage towards the middle of our target range Our outlook is positive and we look to Sunbelt 4.0 and the future with confidence
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APPENDICIES Half year results | 31 October 202424
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Half year results | 31 October 202425 SECOND QUARTER RESULTS DIVISIONAL PERFORMANCE Revenue EBITDA Profit 2024 2023 Change1 2024 2023 Change1 2024 2023 Change1 Canada (C$m) 260 233 11% 128 97 31% 65 40 61% UK (£m) 185 181 2% 56 52 7% 19 17 11% US 2,509 2,480 1% 1,253 1,227 2% 762 789 -3% Canada ($m) 190 172 11% 93 71 31% 47 29 60% UK ($m) 242 225 7% 73 65 13% 25 21 17% Group central costs - - - % (9) (9) -2% (9) (9) -2% 2,941 2,877 2% 1,410 1,354 4% 825 830 -1% Financing costs (143) (133) 8% Profit before amortisation and taxation 682 697 -2% Amortisation (29) (31) -6% Profit before taxation 653 666 -2% Taxation (167) (172) -3% Profit after taxation 486 494 -2% Margins - US - Canada - UK - Group 49.9% 49.2% 30.2% 48.0% 49.5% 41.7% 28.8% 47.1% 30.4% 25.0% 10.2% 28.1% 31.8% 17.3% 9.3% 28.9% 1 As reported
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Half year results | 31 October 202426 LAST TWELVE MONTHS DIVISIONAL PERFORMANCE Revenue EBITDA Profit 2024 2023 Change1 2024 2023 Change1 2024 2023 Change1 Canada (C$m) 959 885 8% 408 358 14% 169 156 8% UK (£m) 718 682 5% 206 184 12% 62 50 24% US 9,359 8,945 5% 4,476 4,288 4% 2,584 2,663 -3% Canada ($m) 704 656 7% 299 266 13% 123 116 7% UK ($m) 917 843 9% 263 228 15% 79 62 27% Group central costs - - - % (31) (33) -5% (32) (34) -5% 10,980 10,444 5% 5,007 4,749 5% 2,754 2,807 -2% Financing costs (580) (465) 25% Profit before amortisation and taxation 2,174 2,342 -7% Amortisation (118) (121) -3% Profit before taxation 2,056 2,221 -7% Taxation (510) (553) -8% Profit after taxation 1,546 1,668 -7% Margins - US - Canada - UK - Group 47.8% 42.5% 28.7% 45.6% 47.9% 40.5% 27.0% 45.5% 27.6% 17.6% 8.6% 25.1% 29.8% 17.6% 7.3% 26.9% 1 As reported
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Half year results | 31 October 202427 GROUP FLEET PLAN 1 Stated at C$1 = $0.75 and £1 = $1.27 2023 Actual 2024 Actual 2025 Previous guidance 2025 Current guidance1 US ($m) - rental fleet 2,878 3,170 2,000 – 2,300 1,600 – 1,800 - non-rental fleet 436 577 550 450 3,314 3,747 2,550 – 2,850 2,050 – 2,250 Canada (C$m) - rental fleet 254 318 230 – 250 230 – 250 - non-rental fleet 56 87 100 100 310 405 330 – 350 330 – 350 UK (£m) - rental fleet 161 174 100 – 120 100 – 120 - non-rental fleet 26 34 45 45 187 208 145 – 165 145 – 165 Group ($m) Capital plan (gross) 3,772 4,311 2,980 – 3,320 2,480 – 2,720 Disposal proceeds (667) (907) (500) (450) Capital plan (net) 3,105 3,404 2,480 – 2,820 2,030 – 2,270
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Half year results | 31 October 202428 US FLEET PROFILE Smooth fleet profile Benefits of prolonged cycle and our growth strategy Strong position providing optionality through the cycle Flexibility to turn replacement into growth and vice versa Strengthens partnership with suppliers through predictability
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Half year results | 31 October 202429 CASH FLOW FUNDS ALL FLEET INVESTMENT ($m) Oct-24 LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 EBITDA before exceptionals 5,007 4,893 4,412 3,609 3,037 3,008 2,748 2,319 1,947 1,769 1,452 1,098 817 607 444 409 597 730 593 399 316 EBITDA margin 46% 45% 46% 45% 46% 47% 47% 47% 47% 46% 45% 42% 38% 34% 30% 30% 33% 35% 35% 35% 32% Cash inflow from operations1 4,857 4,541 4,074 3,406 3,017 3,076 2,664 2,248 1,889 1,617 1,347 1,030 789 581 438 426 604 715 607 385 307 Cash conversion ratio 97% 93% 92% 94% 99% 102% 97% 97% 97% 91% 93% 94% 97% 96% 99% 104% 101% 98% 102% 96% 97% Replacement capital expenditure (1,936) (2,121) (1,381) (830) (754) (823) (617) (503) (536) (680) (432) (400) (426) (354) (285) (58) (349) (391) (407) (266) (178) Non-rental capital expenditure (649) (686) (510) (398) (138) (264) (220) (189) (146) (165) (126) (137) (92) (80) (32) (11) (46) (73) (62) (30) (10) Disposal proceeds 779 879 615 369 403 327 250 215 208 271 164 163 151 144 93 49 154 186 150 90 67 Interest and tax (881) (759) (628) (450) (643) (393) (253) (278) (195) (127) (152) (89) (76) (90) (111) (87) (107) (166) (132) (74) (58) Cash flow before discretionary items 2,170 1,854 2,170 2,097 1,885 1,923 1,824 1,493 1,220 916 801 567 346 201 103 319 256 271 156 105 128 Growth capital expenditure (1,179) (1,638) (1,639) (936) (63) (906) (1,344) (945) (787) (1,010) (939) (650) (399) (216) - - - (242) (120) (111) (19) Exceptional costs - - - (36) - (16) - (32) - - (1) (4) (25) (5) (19) (13) (16) (19) (131) (35) (10) Free cash flow 991 216 531 1,125 1,822 1,001 480 516 433 (94) (139) (87) (78) (20) 84 306 240 10 (95) (41) 99 Business acquisitions, disposals and investments (266) (889) (1,125) (1,317) (195) (577) (767) (477) (542) (102) (383) (163) (53) (35) (55) (1) 175 (12) (622) (77) 1 Cash flow available to equity holders 725 (673) (594) (192) 1,627 424 (287) 39 (109) (196) (522) (250) (131) (55) 29 305 415 (2) (717) (118) 100 Dividends paid (456) (436) (358) (269) (235) (234) (214) (192) (152) (122) (99) (65) (32) (24) (23) (21) (22) (21) (14) (4) - Share issues/returns (121) (108) (277) (433) (16) (592) (621) (230) (73) (18) (34) (34) (16) (6) - - (30) (48) 275 117 - 148 (1,217) (1,229) (894) 1,376 (402) (1,122) (383) (334) (336) (655) (349) (179) (85) 6 284 363 (71) (456) (5) 100 1 Before fleet changes and exceptional items
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Half year results | 31 October 202430 $2,571M OF AVAILABILITY AT 31 OCTOBER 2024 Rental fleet and vehicles Receivables Inventory Other PPE Book value Borrowing base Calculation: Inventory – 50% of book value Receivables – 85% of net eligible receivables Fleet and vehicles – lower of 85% of net appraised market value and 95% of net book value of eligible equipment $15,572m (April 24: $14,974m) $11,632m (April 24: $11,466m) Senior debt Availability of $2,571m Borrowing base covers today’s net ABL outstandings 5.6x Borrowing base reflects July 2024 asset values $12,708m $10,211m $2,154m of net ABL outstandings, including letters of credit of $91m (April 24 - $1,954m) $1,710m $1,362m
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Half year results | 31 October 202431 DEBT AND COVENANTS Debt Facility Interest rate Maturity $4.75bn first lien revolver SOFR / CORRA / SONIA + 125-137.5 bps November 2029 $550m senior notes 1.500% August 2026 $600m senior notes 4.375% August 2027 $600m senior notes 4.000% May 2028 $600m senior notes 4.250% November 2029 $750m senior notes 2.450% August 2031 $750m senior notes 5.500% August 2032 $750m senior notes 5.550% May 2033 $750m senior notes 5.950% October 2033 $850m senior notes 5.800% April 2034 Ratings S&P Moody’s Fitch Corporate family BBB- Baa3 BBB Second lien BBB- Baa3 BBB Availability Availability of $2,571m at 31 October 2024 Fixed charge coverage covenant EBITDA less net cash capex to interest paid, tax paid, dividends paid and debt amortisation must equal or exceed 1.0x if availability is below $450m ($475m post refinancing) – greater than 1.0x at October 2024
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Half year results | 31 October 202432 REALISATION OF STRUCTURAL PROGRESSION STRUCTURAL CHANGE OUTPUTS Rental increasingly essential for customer success Shift from ownership to rental The larger, experienced, capable rental companies have and will continue to get disproportionately larger • Rental has become core rather than top up • Big getting bigger in a growing market • Larger and more diversified addressable market • Pricing discipline and progression • Less cyclical, more resilient Clear and proven structural progression has transformed the industry providing the foundation and springboard for our next chapter of growth
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Half year results | 31 October 202433 RENTAL RATE DISCIPLINE AND PROGRESSION BENEFIT OF STRUCTURAL PROGRESSION Major events 2008–09 GREAT FINANCIAL CRISIS 2014–16 OIL & GAS CRISIS 2020–21 COVID-19 PANDEMIC 2022–23 LAST 6 QUARTERS Structural progression • Top 3 rental companies ~10% share • Top up rentals • Moderate rental penetration • Industry consolidation and big getting bigger • Alternative to ownership • Increasing rental penetration • Top 3 rental companies ~30% share • Rental better alternative to ownership • Increasing rental penetration End market demand Non-resi collapsed, put-in-place fell 21% Weakened significantly in oil & gas geographies Weakened with many major cities closing construction sites entirely Stable growth post- pandemic, boosted by federal stimulus (IIJA, IRA &, CHIPS) Industry utilization Declined Fell due to over-supply of affected products Historic decline followed by a strong rebound Fell 3–5% Second-hand values Declined Declined Declined then climbed Declined Rates
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Half year results | 31 October 202434 REVENUE IS EXPECTED TO GROW BY ~$2 BILLION IN 4.0 WITH AMPLE OPP ORTUNITY BEYOND SPECIALTY MARKET SIZING, RENTAL PENETRATION & SHARE 1. Market size and rental penetration levels indicated herein validated by Verify Markets 2. Total North America market share; FY24 compares FY24 budget revenue to CY23 market size, FY29 compares FY29 projected revenue to CY28 market size 10% Current rental penetration for all of Specialty ~$5bn Specialty revenue in FY29 >$10bn Revenue potential at more mature rental penetration levels and market share gains Rental penetration1 Market share2 Line of business NA rental revenue, $M Today Future Today Future Power & HVAC 7% 15% 20% 25% Climate Control 7% 20% 23% 25% Scaffold Services nm nm 17% 30% Flooring Solutions 5% 20% 40% 40% Pump Solutions 20% 35% 10% 20% Trench Safety 27% 45% 6% 20% Industrial Tool 3% 15% 8% 15% Film & TV 38% 45% 7% 10% Temporary Structures 6% 15% 6% 15% Ground Protection 25% 40% 8% 25% Temporary Fencing 34% 45% 4% 20% Temporary Walls nm nm nm nm LTM 31 January 2024 4.0 growth Incremental illustrative Sunbelt potential total rental 0 500 1,000 1,500 2,000 2,500 4,700 CURRENT, PROJECTEDAND ILLUSTRATIVE RENTALREVENUE BY BUSINESSLINE ($M)
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Half year results | 31 October 202435 SCOPE 1 AND 2 OUR PATHWAY TO NET ZERO 2050 NEARLY ALL ON-ROAD FLEET IS EMISSION FREE 2022– 2023 2024– 2025 2026– 2029 2030– 2034 2035– 2039 2040– 2041 2042– 2047 2048 2050 2025 Evaluate beta MEDIUM DUTY 2034 ~20% EV in fleet MEDIUM DUTY 2040> Only EV purchased MEDIUM DUTY 2037 ~50% EV in fleet MEDIUM DUTY 2043 Near 100% EV in fleet MEDIUM DUTY 2028 ~100% RECs/ REGOs for electricity 2023 Beta (6 Class 8) HEAVY DUTY 2029 ~8% use HVO in fleet HEAVY DUTY 2040 ~60% EV/ H2 in fleet HEAVY DUTY 2045 ~95% EV/ H2 in fleet HEAVY DUTY 2048 Near 100% EV/ H2 in fleet HEAVY DUTY 2030> Only EV purchased LIGHT DUTY 2026–2027 ~10% 2nd gen in fleet LIGHT DUTY 2035 Near 100% EV in fleet LIGHT DUTY 2024 Increasing use of HVO across West Coast MEDIUM & HEAVY DUTY 2022 EV trials – 1st gen LIGHT DUTY 34 50
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Half year results | 31 October 202436 THE BIG GETTING BIGGER IN A GROWING MARKET THE RENTAL INDUSTRY LANDSCAPE 1. Based on new ARA/S&P Global Market Intelligence market sizing 2. 2023 estimates for Top 4-10, 11-100, and other based on 2023 proportions from RER 2024 NA RENTALMARKETSIZE1 ($BN) MARKETSHARE BREAKDOWN1,2 URISunbelt Herc Top 4–10 Top 11–100 Other 56.5 77.0 93.5 2023 4% 8% 21% Future All others Two or three have 50%+ of the market 20%+ One or two others 2018 2023 2027 57 77 94 11% 15% 4% 8% 20% 42%
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Half year results | 31 October 202437 IMPORTANT TO NOT LOSE SIGHT OF THROUGH THE CYCLE KEY METRICS 15 13 14 10 5 7 12 16 19 19 19 17 18 18 15 15 18 19 16 2 4 6 8 10 12 14 16 18 20 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Group RoI Group EBITDA margin Group adjusted EPS 35 35 38 33 30 30 34 38 42 45 46 47 47 47 47 46 45 46 45 5 10 15 20 25 30 35 40 45 50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 22 20 29 20 0 6 28 50 75 100 128135 171 227222219 307 388 387 50 100 150 200 250 300 350 400 450 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Cost of capital