1

Presentationto Carillion

The Equipment Rental Specialists

9th June 2010

The Equipment Rental Specialists

DRAFT #3 (24 Nov)

The Equipment Rental Specialist

Results for the

year ended

31 March 2017

2

Strategy and Highlights

Operational Review

Financial Review

3

Strategy and Highlights

4

Our aim is to create sustainable value

Resilient & proven model First class asset management

Specialist equipment rental Buy quality products at competitive

prices

Market leading positions in niche sectors Maintain assets through rental life cycles

Diverse markets in the UK and Overseas Use strong balance sheet and cash

generation for fleet growth and

acquisitions

Enhancing our offer Building on core attributes

Embrace change and innovate Retain and attract the best people

Take long term view Safe and sustainable business

Continue to exceed customer

expectations

Product reliability and operational

excellence

Provide value added services

5

● Strong profits – PBTA increase of 17%

● Revenue growth of 19%

● Strong investment in rental fleet – up 25% to £57.6m

● Acquisitions delivered:

TR Pty and Tech Rentals New Zealand

JMS and Zenith Survey (post year end)

● High quality return on capital at 16%

● Focus on specialist rental markets continues to pay off

A year of substantial progress

6

(£m)

167.0

183.1205.6

208.7

248.7

0

50

100

150

200

250

2013 2014 2015 2016 2017

17.4

20.1

26.8

29.8

34.9

0

5

10

15

20

25

30

35

2013 2014 2015 2016 2017

(£m)

Revenue Profit before tax and amortisation

Positive long term momentum

Revenue growth, aided by acquisitions Profits doubled in 4 years

7

Operational Review

8

Key markets

InfrastructureHousebuild

Oil & Gas Construction

9

Market segment

Revenue Growth/

decline

on

prior year

2017

£m

2016

£m

Infrastructure* 105.0 92.1 +14%

Construction 66.2 60.0 +10%

Housebuilding 31.5 25.7 +23%

Oil & Gas 21.5 19.7 +9%

Other (inc. Events & Defence) 24.5 11.2 +119%

Total 248.7 208.7 +19%

*Utilities, Rail, Transmission and Facilities Management

o Infrastructure growth – rail / water / transmission

o Construction growth – repair & maintenance / fit out

o Housebuild – strong growth

o Offshore Oil & Gas – challenging market

o Other includes events and defence revenues from TR for the first time

Market dynamics

10

Business performance - Group

2017

£m

2016

£m

Revenue 248.7 208.7 +19%

PBITA 37.8 31.9 +18%

Operating margin 15.2% 15.3%

o Excellent UK performance

o Strong profit growth

o Core markets very supportive, bar offshore oil & gas

o Post year end acquisitions

11

Business performance - UK

2017

£m

2016

£m

Revenue 220.0 193.6 +14%

PBITA 35.9 30.7 +17%

Operating margin 16.3% 15.9%

o Infrastructure growth – Groundforce

o Construction opportunity – buoyant trading in Hire Station

o Stable housebuild market – UK Forks

o Busy rail sector – Torrent Trackside

o Maiden contribution from Higher Access

12

Business performance - International

2017

£m

2016

£m

Revenue 28.7 15.2 +89%

PBITA 1.9 1.2 +53%

Operating margin 6.6% 8.1%

o Maiden, part year contribution from TR Group in Australia

o TR Group integrating well into Vp

o Global offshore oil & gas remains challenging for Airpac Bukom,

though early signs of stability returning

TR Group

13

Fleet investment

2017

£m

2016

£m

UK 53.9 44.5

International 3.7 1.4

Total fleet investment 57.6 45.9

Disposal proceeds (16.7) (17.2)

Net expenditure on fleet 40.9 28.7

o Strong fleet capex in UK

o Growth investment into Hire Station/Groundforce/TPA

o International fleet capex – TR Group

14

Acquisitions

April 2016 – TR Group Pty – Australia, Malaysia, New Zealand

○ test & measurement, communications and audio visual rental

○ consideration A$17.4m plus A$6.6m debt

November 2016 – TechRentals New Zealand

○ test & measurement and calibration services

○ consideration NZ$2.6m

April 2017 – JMS M&E

○ Mechanical and electrical specialist tool hire

○ Consideration £3.6m

April 2017 – Zenith Survey Equipment

○ survey and safety equipment rental and sales

○ consideration £3.85m plus £2.3m debt

Post Year End

15

● Good momentum into new financial year

● Market sectors continue to be broadly supportive

● Infrastructure, housebuild and construction provide solid base

● Offshore oil & gas recovery expected in medium term

● Long term objective is to deliver growth in specialist rental

markets in the UK and Overseas

● Fresh contribution from latest acquisitions

● We look forward to another year of progress for Vp

Outlook

16

Financial Review

17

2017

£m

2016

£m

Revenue 248.7 208.7 +19%

EBITDA 71.2 59.3 +20%

Depreciation (33.5) (27.4) +22%

EBITA 37.8 31.9 +18%

Interest (2.9) (2.1)

Profit before tax and amortisation 34.9 29.8 +17%

Net margin 14.0% 14.3%

Financial highlights – significant growth

18

2017 2016

Basic EPS (pre amortisation)69.5p 62.2p +12%

Profit before tax and amortisation£34.9m £29.8m +17%

Weighted average number of shares39.2m 38.9m

Effective tax rate22.0% 18.6%

Earnings per share

19

Dividend per share (pence)

11.412.3

14.0

16.5

18.9

22.0

6

8

10

12

14

16

18

20

22

24

2012 2013 2014 2015 2016 2017

2017 2016

Full year dividend per share 22.0p 18.9p +17%

Dividend cover 3.2x 3.3x -

EPS pre amortisation 69.5p 62.2p +12%

Full year dividend – 17% increase

20

ROACE – very robust

13.3 13.5

16.2 16.3 16.0

0

2

4

6

8

10

12

14

16

18

20

2013 2014 2015 2016 2017

13.5%13.3%

16.2% 16.3% 16.0%

21

2017

£m

2016

£m

Property, plant and equipment 195.6 167.2

Intangible assets/goodwill 47.5 46.4

Net working capital (1.9) (2.3)

Other (5.0) (3.8)

Net debt (98.9) (86.1)

Net assets 137.3 121.4

Solid balance sheet

22

2017

£m

2016

£m

EBITDA 71.2 59.3 +20%

Cash from operations 69.9 47.9

Capital expenditure (64.7) (50.2)

Proceeds from disposals 16.7 17.2

Interest and tax (7.4) (6.9)

Acquisitions (10.0) (7.1)

Dividends (7.6) (6.6)

Other (5.8) (10.5)

Debt acquired (3.9) (3.1)

Change in net debt (12.8) (19.3)

Strong cash generation

23

Facilities

2017

£m

Facilities

2016

£m

Net Debt

2017

£m

Net Debt

2016

£m

RCF expiring May 2020 65.0 45.0

RCF expiring December 2021 55.0 50.0

Total RCF 120.0 95.0 107.0 88.0

Overdraft 5.0 5.0 - -

Bank balances (10.1) (4.5)

Finance leases 2.0 2.6 2.0 2.6

Total 127.0 102.6 98.9 86.1

● RCF includes £20m step up provision

Net debt and facilities - headroom

24

14.2015.24

13.00

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

FY 15 FY 16 FY 17

EBITA

Interest

Cover

1.241.45 1.39

0.0

0.5

1.0

1.5

2.0

2.5

3.0

FY 15 FY 16 FY 17

Net Debt /

EBITDA

Significant headroom against covenants

25

Any Questions?

26

Supplementary

Schedules

27

2017

%

2016

%

Standard rate 20.0 20.0

Impact of tax rate change - (1.3)

Permanent disallowables 0.6 0.9

Chattels (1.4) (1.8)

Prior year adjustments 0.5 0.1

Non qualifying depreciation 0.7 0.7

Overseas tax rate 0.1 0.1

Impairment of intangibles 1.6 -

Other (0.1) (0.1)

Effective rate 22.0 18.6

Effective rate of tax - reconciliation

28

Group history – 1954 to date

Revenue:1970:

£2m

1980:

£14m

1990:

£70m

2000:

£55m

2010:

£129m

2013:

167m

2014:

£183m

2015:

206m

2016:

£209m

2017:

£249m

1954

1973

19801990

2017

1954Vibratory Roller & Plant Hire(Northern) Limited founded

1973Floated on main market

Vibroplant plc

1975First move into specialist plant

Airpac

1980Shoringdivision

established

1982US powered

access

business established

1990Groundforceacquired f rom

SGB

1996Cannon Tool Hire

acquired

Exit f rom USA

1997Rail:

Torrent

Trackside acquired

2000UK

Forks

divisioncreated

2001Hire Station formed through merger

of 5 regional tool businesses

2001renamed Vp

plc

2005TPA and ESS

acquired

2006Acquisition of

Bukom

Oilf ield Services(Airpac Bukom

formed)2010

Geographical expansion:Global (Airpac Bukom)

Eire (Groundforce)Germany (TPA)

2015Acquisition of

Test &

Measurement

2016Acquisition of Higher Access and

TR Pty Ltd (Australia)

2017Acquisition ofJMS M&E and

Zenith Survey Equipment

2014Vp

celebrates

60 years

29

Rough terrain material handling equipment and tracked access

platforms

Excavation support systems and specialist products

Tool hire, safety equipment, press fitting and low level access

Infrastructure equipment and services to the railway renewals and

maintenance sector

Portable roadway and temporary access solutions

UK division

International division

Equipment and service providers to the international oil and gas

exploration and development markets

Test & measurement, communications and audio visual rental in

Australia, New Zealand and Malaysia.TR Group