annual general meeting 2016 - aggreko/media/files/a/aggreko/agm... · 2017-03-29 · 5 annual...
TRANSCRIPT
1 Annual General Meeting April 2016
Annual General Meeting 201628 April 2016
2 Annual General Meeting April 2016
Ken Hanna, ChairmanIntroduction1
3 Annual General Meeting April 2016
Ken Hanna, ChairmanIntroduction
Chris Weston, CEO
2015 Overview, Business Priorities Update& 2016 Outlook
Ken Hanna ChairmanResolutions
1
Agenda
2
3
4 Annual General Meeting April 2016
Chris Weston, CEO
2015 Overview, Business Priorities Update& 2016 Outlook
2
5 Annual General Meeting April 2016
Group summary
• Full year profit before tax of £252m in line with expectations set out at the half year
• Full year dividend maintained
• New, focused organisational structure and management team in place and working well
• Good progress on our three business priorities: customer, technology and efficiency
A solid performance in face of challenging market conditions
6 Annual General Meeting April 2016
Operational summary
Rental Solutions
• Sector diversity offsets decline in oil & gas
• Strong growth in temperature control; successful acquisition of ICS
Power Solutions Industrial
• Good growth in key markets; challenges persist in Brazil
• Successful delivery of European Games in Baku
Power Solutions Utility
• Revenue down; driven by Bangladesh and Panama
• Order intake in 2015: 640MW
7 Annual General Meeting April 2016
Business priorities on trackConfident that executing will deliver sustainable growth
• Tailor sales and service channels• Focus on key sectors• Pursue adjacencies• Evaluate bolt-on M&A opportunities
PriorityCUSTOMER• Initiatives underway, market / sector specific strategies and
sales expertise• Plan to enhance our CRM and provide a digital platform for
our customer• ICS acquisition completed; building pipeline of M&A
opportunities
Status
8 Annual General Meeting April 2016
Business priorities on trackConfident that executing will deliver sustainable growth
• More fuel efficient gas engine in field trial• Plan to further improve efficiency of the G3+ diesel engine• Continue to evaluate HFO product offering• Developing strategic relationships to support product
development
Status
• Tailor sales and service channels• Focus on key sectors• Pursue adjacencies• Evaluate bolt-on M&A opportunities
PriorityCUSTOMER
TECHNOLOGY• Work with our strategic partners to develop
market leading products• Strengthen and expand strategic
partnerships• Reduce the overall cost of power for our
customers
Priority
• Initiatives underway, market / sector specific strategies and sales expertise
• Plan to enhance our CRM and provide a digital platform for our customer
• ICS acquisition completed; building pipeline of M&A opportunities
Status
9 Annual General Meeting April 2016
Business priorities on trackConfident that executing will deliver sustainable growth
Status
• On track to deliver £80m of cash savings by 2017 • Deploying new systems to optimise fleet utilisation, fleet
planning and allow remote monitoring• Streamlining back office processes • Improving efficiency of sites and project delivery
Status
• Tailor sales and service channels• Focus on key sectors• Pursue adjacencies• Evaluate bolt-on M&A opportunities
PriorityCUSTOMER
TECHNOLOGY
EFFICIENCY
• Work with our strategic partners to develop market leading products
• Strengthen and expand strategic partnerships
• Reduce the overall cost of power for our customers
Priority
• Streamlining our cost base• Optimising deployment of resources• Improving processes and systems
Priority
• Initiatives underway, market / sector specific strategies and sales expertise
• Plan to enhance our CRM and provide a digital platform for our customer
• ICS acquisition completed; building pipeline of M&A opportunities
Status
• More fuel efficient gas engine in field trial• Plan to further improve efficiency of the G3+ diesel engine• Continue to evaluate HFO product offering• Developing strategic relationships to support product
development
10 Annual General Meeting April 2016
Solid performance in face of challenging market conditions
• Margins of 17%
• Strong balance sheet,
net debt slightly down
• Dividend maintained in line with 2014
£m (pre-exceptional items) FY15 FY14
Reported
Change
Underlying
Change1
Revenue 1,561 1,577 (1)% (3)%
Revenue excl.
pass-through fuel1,501 1,529 (2)% (3)%
Trading profit 270 306 (12)% (14)%
Operating profit 275 310 (11)%
Net interest expense (23) (21) (8)%
Profit before tax 252 289 (13)%
Tax (69) (74) 7%
Profit after tax 183 215 (15)%
Diluted earnings per share 71.7p 82.5p (13)%
Dividends per share (declared) 27.1p 27.1p -%
Net Debt at period end 489 494
£m (post-exceptional items) FY15
Trading profit 244
Profit before tax 226
Profit after tax 162
Diluted earnings per share 63.5p
1 Underlying excludes pass-through fuel and currency translation
11 Annual General Meeting April 2016
2016 Outlook
Power Solutions Utility
• Strong order book; 486MW of new work; healthy pipeline; expect off hire of around 30%
• 200MW, 3 year diesel contract in Zimbabwe recently announced
Power Solutions Industrial
• Continued good performances in the Middle East, Russia and Africa
• Softer trading in Latin America
Rental Solutions
• Slow start in North America
• Rest of Rental Solutions has had a solid start
• Fully mobilised 108MW in Tasmania
Group
• Investing around £250m in fleet capex; more fuel efficient engines
• Expect PBT to be slightly lower than the prior year on a constant currency basis; in line with current consensus
PBT slightly lower than prior year
12 Annual General Meeting April 2016
Ken Hanna, ChairmanResolutions3
13 Annual General Meeting April 2016
Resolution 1Ordinary resolution
To receive the reports of the Directors and Auditors and to adopt
the Company’s accounts for the year ended 31 December 2015
14 Annual General Meeting April 2016
Resolution 1Ordinary resolution
To receive the reports of the Directors and Auditors and to adopt
the Company’s accounts for the year ended 31 December 2015
Total votes cast
Votes withheld
% of issuedshare capital
67.97%
0.10%
In favour
Against
% of votes cast
99.91%
0.09%
VOTES
174,085,760
245,748
15 Annual General Meeting April 2016
Resolution 2Ordinary resolution
To approve the Annual Statement and Report on Remuneration
for the year ended 31 December 2015
16 Annual General Meeting April 2016
Resolution 2Ordinary resolution
To approve the Annual Statement and Report on Remuneration
for the year ended 31 December 2015
Total votes cast
Votes withheld
% of issuedshare capital
67.47%
0.59%
In favour
Against
% of votes cast
98.94%
1.06%
VOTES
172,811,918
1,519,590
17 Annual General Meeting April 2016
Resolution 3Ordinary resolution
To declare a final dividend on the Company’s Ordinary Shares of
17.74 pence per share
18 Annual General Meeting April 2016
Resolution 3Ordinary resolution
To declare a final dividend on the Company’s Ordinary Shares of
17.74 pence per share
Total votes cast
Votes withheld
% of issuedshare capital
68.06%
0.00%
In favour
Against
% of votes cast
99.91%
0.09%
VOTES
174,329,920
1,588
19 Annual General Meeting April 2016
Resolution 4Ordinary resolution
To elect Dame Nicola Brewer as a Director of the Company
20 Annual General Meeting April 2016
Resolution 4Ordinary resolution
To elect Dame Nicola Brewer as a Director of the Company
Total votes cast
Votes withheld
% of issuedshare capital
68.04%
0.03%
In favour
Against
% of votes cast
99.69%
0.31%
VOTES
174,261,692
69,816
21 Annual General Meeting April 2016
Resolution 5Ordinary resolution
To re-elect Ken Hanna as a Director of the Company
22 Annual General Meeting April 2016
Resolution 5Ordinary resolution
To re-elect Ken Hanna as a Director of the Company
Total votes cast
Votes withheld
% of issuedshare capital
67.75%
0.31%
In favour
Against
% of votes cast
99.15%
0.85%
VOTES
173,531,342
800,166
23 Annual General Meeting April 2016
Resolution 6Ordinary resolution
To re-elect Chris Weston as a Director of the Company
24 Annual General Meeting April 2016
Resolution 6Ordinary resolution
To re-elect Chris Weston as a Director of the Company
Total votes cast
Votes withheld
% of issuedshare capital
68.04%
0.03%
In favour
Against
% of votes cast
99.18%
0.82%
VOTES
174,263,258
68,250
25 Annual General Meeting April 2016
Resolution 7Ordinary resolution
To re-elect Carole Cran as a Director of the Company
26 Annual General Meeting April 2016
Resolution 7Ordinary resolution
To re-elect Carole Cran as a Director of the Company
Total votes cast
Votes withheld
% of issuedshare capital
68.04%
0.03%
In favour
Against
% of votes cast
99.17%
0.83%
VOTES
174,264,270
67,238
27 Annual General Meeting April 2016
Resolution 8Ordinary resolution
To re-elect Russell King as a Director of the Company
28 Annual General Meeting April 2016
Resolution 8Ordinary resolution
To re-elect Russell King as a Director of the Company
Total votes cast
Votes withheld
% of issuedshare capital
67.77%
0.29%
In favour
Against
% of votes cast
86.90%
13.10%
VOTES
173,576,099
755,409
29 Annual General Meeting April 2016
Resolution 9Ordinary resolution
To re-elect Uwe Krueger as a Director of the Company
30 Annual General Meeting April 2016
Resolution 9Ordinary resolution
To re-elect Uwe Krueger as a Director of the Company
Total votes cast
Votes withheld
% of issuedshare capital
68.04%
0.03%
In favour
Against
% of votes cast
99.07%
0.93%
VOTES
174,263,820
67,688
31 Annual General Meeting April 2016
Resolution 10Ordinary resolution
To re-elect Diana Layfield as a Director of the Company
32 Annual General Meeting April 2016
Resolution 10Ordinary resolution
To re-elect Diana Layfield as a Director of the Company
Total votes cast
Votes withheld
% of issuedshare capital
68.04%
0.03%
In favour
Against
% of votes cast
99.82%
0.18%
VOTES
174,259,540
71,968
33 Annual General Meeting April 2016
Resolution 11Ordinary resolution
To re-elect Ian Marchant as a Director of the Company
34 Annual General Meeting April 2016
Resolution 11Ordinary resolution
To re-elect Ian Marchant as a Director of the Company
Total votes cast
Votes withheld
% of issuedshare capital
68.04%
0.03%
In favour
Against
% of votes cast
99.82%
0.18%
VOTES
174,263,005
68,503
35 Annual General Meeting April 2016
Resolution 12Ordinary resolution
To appoint KPMG LLP as auditor of the Company
36 Annual General Meeting April 2016
Resolution 12Ordinary resolution
To appoint KPMG LLP as auditor of the Company
Total votes cast
Votes withheld
% of issuedshare capital
68.03%
0.03%
In favour
Against
% of votes cast
99.97%
0.03%
VOTES
174,247,652
83,856
37 Annual General Meeting April 2016
Resolution 13Ordinary resolution
To authorise the Audit Committee of the Board to determine
the remuneration of the Company’s auditor
38 Annual General Meeting April 2016
Resolution 13Ordinary resolution
To authorise the Audit Committee of the Board to determine
the remuneration of the Company’s auditor
Total votes cast
Votes withheld
% of issuedshare capital
68.06%
0.00%
In favour
Against
% of votes cast
99.98%
0.02%
VOTES
174,322,182
9,326
39 Annual General Meeting April 2016
Resolution 14Ordinary resolution
To authorise the Board to allot shares and to grant rights
to subscribe or convert security into shares
40 Annual General Meeting April 2016
Resolution 14Ordinary resolution
To authorise the Board to allot shares and to grant rights
to subscribe or convert security into shares
Total votes cast
Votes withheld
% of issuedshare capital
68.06%
0.00%
In favour
Against
% of votes cast
96.22%
3.78%
VOTES
174,320,682
10,826
41 Annual General Meeting April 2016
Resolution 15Special resolution
Disapplication of statutory pre-emption rights
42 Annual General Meeting April 2016
Resolution 15Special resolution
Disapplication of statutory pre-emption rights
Total votes cast
Votes withheld
% of issuedshare capital
67.79%
0.27%
In favour
Against
% of votes cast
88.17%
11.83%
VOTES
173,631,020
700,488
43 Annual General Meeting April 2016
Resolution 16Special resolution
To authorise the Company to purchase Ordinary Shares in
the capital of the Company
44 Annual General Meeting April 2016
Resolution 16Special resolution
To authorise the Company to purchase Ordinary Shares in
the capital of the Company
Total votes cast
Votes withheld
% of issuedshare capital
68.06%
0.01%
In favour
Against
% of votes cast
99.28%
0.72%
VOTES
174,311,868
19,640
45 Annual General Meeting April 2016
Resolution 17Special resolution
That a general meeting of the Company (other than an AGM)
may be called on not less than 14 clear days’ notice
46 Annual General Meeting April 2016
Resolution 17Special resolution
That a general meeting of the Company (other than an AGM)
may be called on not less than 14 clear days’ notice
Total votes cast
Votes withheld
% of issuedshare capital
67.33%
0.74%
In favour
Against
% of votes cast
86.95%
13.05%
VOTES
172,439,249
1,892,257
47 Annual General Meeting April 2016
Annual General Meeting 201628 April 2016