Presentation

to Carillion

The Equipment Rental Specialists

9th June 2010

The Equipment Rental Specialists

Vp plc

Final Results

for the year ended

31 March 2014

Agenda 1

● Results Summary

● Operational Review

● Financial Review

Agenda

2 Results summary

2014 2013

Profit before tax and amortisation £20.1m £17.4m +16%

Revenue £183.1m £167.0m +10%

Earnings per share pre amortisation 42.0p 35.5p +18%

Total dividend per share 14.0p 12.25p +14%

Return on average capital employed 13.5% 13.3%

Agenda

3 Highlights

● Excellent profits – 16% up on prior year, ahead of market expectation

● Strong final quarter

● Delivering growth – revenues up 10%

● Return on average capital employed improved to 13.5%

● Strong cash generation – EBITDA £44.3m

● Growing investment in rental fleet – £38.2m

● Acquisition of Mr Cropper £4.6m – September 2013

● Most markets supportive, UK construction modest improvement

Agenda

4 Revenue and profit profile

Revenue (£m)

Profit before tax and amortisation (£m)

Revenues growing Progressive profit trend

129.5 138.1

161.5 167.0

183.1

0

20

40

60

80

100

120

140

160

180

200

2010 2011 2012 2013 2014

16.0

13.8

16.0 17.4

20.1

0

5

10

15

20

25

2010 2011 2012 2013 2014

Agenda

5 Operational review

Agenda

6 Markets – all key markets delivering growth

Market Segments

Infrastructure

Construction

Oil & Gas

Housebuilding

Other

Market Segments

Growth/

Market 2014 2013 Decline

segment £m £m on prior year

Infrastructure* 86.0 78.2 +10%

Construction 44.0 38.1 +15%

Oil & Gas 21.1 20.2 +4%

Housebuilding 18.7 16.4 +14%

Other 13.3 14.1 -6%

Total 183.1 167.0 +10%

*Utilities, Rail, Transmission and Facilities Management

Revenue

47%

24%

12%

10%

7%

Agenda

7

● Diverse market exposure continues to deliver results

● Housebuild, infrastructure, water and transmission – positive

● Oil and gas – stronger H2, much improved outlook

● European markets progressing, particularly TPA

● Strong cash flows supporting investment for growth

● Fleet investment increased 70%

● Mr Cropper acquisition integrated well

● Return on Capital continues to guide investment decisions

Divisional overview

8 Business performance

2014 2013 2014 2013

£m £m £m £m

UK Forks 16.3 14.1 2.5 2.1 Housebuild and construction demand

Groundforce 42.3 37.2 7.9 7.8 Another strong, high quality result

Airpac Bukom 20.2 17.4 2.0 2.0 Stronger 2nd half, improving outlook

Hire Station 66.2 62.0 4.8 4.3 Markets improving

TPA 15.8 14.9 1.8 1.3 Progress in UK and Germany

Torrent Trackside 22.3 21.4 2.8 2.2 Busy rail sector

TOTAL 183.1 167.0 +10% 21.8 19.8 +10%

Operating Margin 11.9% 11.9% Margin maintained

Revenues PBITA

Agenda

9 Capital investment in fleet

2014 2013

£m £m

UK Forks 7.0 0.4 Fleet growth to meet increased demand

Groundforce 8.0 7.3 Investment in UK and Europe

Airpac Bukom 5.8 2.1 Investment for new financial year

Hire Station 13.4 9.4 Growth opportunity, product availability

TPA 1.0 2.4 Replacement expenditure

Torrent Trackside 3.0 0.9 Fleet refreshment and growth

Total fleet capex 38.2 22.5

Disposal proceeds (8.6) (9.6)

Net expenditure 29.6 12.9

Agenda

10 Operational outlook

● Strong final quarter has created excellent business momentum into the

new financial year

● All markets positive, but expect further improvement in general

construction and oil and gas

● Business development is targeted both in UK and overseas markets

● Consistency of quality in products, services and people increasingly

valued by customers

● Group well positioned for further growth

Agenda

11 Financial review

Agenda

12 Financial highlights – excellent performance

2014 2013

Revenue £183.1m £167.0m +10%

EBITDA £44.3m £41.0m +8%

EBITA £21.8m £19.8m +10%

Profit before tax and amortisation £20.1m £17.4m +16%

Net margin 11.0% 10.4%

ROACE 13.5% 13.3%

13 Earnings per share – 18% increase

2014 2013

Basic EPS 39.8p 33.6p +18%

Basic EPS (pre amortisation) 42.0p 35.5p +18%

Profit before tax and amortisation £20.1m £17.4m +16%

Weighted average number shares 39.5m 38.8m

Effective tax rate 17.1% 20.4%

Agenda

14 Full year dividend per share – 14% increase

Dividend per share (pence)

10.5 10.8 10.8 10.8 11.35

12.25

0

2

4

6

8

10

12

14

16

2008 2009 2010 2011 2012 2013 2014

14.0

2014 2013

EPS pre amortisation 42.0p 35.5p +18%

Full year dividend per share 14.0p 12.25p +14%

Dividend cover 3.0x 2.9x

Ave

rag

e C

ap

ita

l E

mp

loye

d £

m

RO

AC

E

Significant investing activity, ROACE further improved

149.9

140.2

133.8

142.6

148.5

161.2

17.0%

13.3%

12.3% 13.0%

13.3% 13.5%

5%

7%

9%

11%

13%

15%

17%

120

130

140

150

160

170

180

2009 2010 2011 2012 2013 2014

15

Average Capital Employed

£m

ROACE

2014 2013

£m £m

Rental equipment (fleet) 112.9 99.1

Other assets 53.3 50.7

Net working capital (1.3) 2.6

Deferred tax/pension (3.9) (6.2)

Capital employed 161.0 146.2

Net debt (53.0) (45.3)

Net assets 108.0 100.9

Gearing 49% 45%

Debtor days year end 57 57

Bad debt write off as % turnover 0.6% 0.7%

16 Strong balance sheet

90% fleet

Tax rate

Maintained

Modest increase

17 Financial performance - strong cash generation 17

Other

£5.8m

Cash inflows

Cash outflows

EBITDA : £44.3m

Increase in net debt

£7.7m

Net capex £30.9mAcquisition

£4.5m

Tax / Interest

£5.8m

Dividends

£5.0m

18 Bank facilities

31 March 31 May

2014 2013

£m £m

Revolving credit

Facility A to May 2016 35.0 35.0

Facility B to Oct 2017 30.0 30.0

65.0 65.0

Overdraft facility 5.0 5.0

Total facilities 70.0 70.0

Step up facility C 25.0 25.0

Net debt 53.0 45.3

Headroom against facilities 17.0 24.7

Agenda Headroom for growth

7.10 6.10

7.30 8.00

12.30

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

FY 10 FY 11 FY 12 FY 13 FY 14

EBITA

Interest

Cover

1.29 1.16 1.05 1.10 1.20

0.00

0.50

1.00

1.50

2.00

2.50

3.00

FY 10 FY 11 FY 12 FY 13 FY 14

Net Debt /

EBITDA

Less than 2.5 times

Greater than 3 times

19

Agenda

20 Supplementary schedules

2014 2013

£m £m

Operating profits 21.8 19.8

Depreciation 22.5 21.2

EBITDA 44.3 41.0

Changes in working capital 3.9 0.1

Gross capex (39.5) (29.6)

Proceeds from disposals 8.6 9.6

Profit on asset disposals (2.9) (2.6)

Interest (1.8) (2.5)

Tax (3.9) (3.8)

Dividends (5.0) (4.4)

Acquisitions (4.5) (4.1)

Other (purchasing of own shares) (6.9) (8.6)

Cash movement (change in net debt) (7.7) (4.9)

Agenda

21 Cash flow

Growth in

EBITDA

Small increase

in debt

Increased

capex

Agenda

22 Effective rate of tax

Mar 2014 Mar 2013

% %

Standard rate 23.0 24.0

Impact of tax rate change (5.7) (2.2)

Permanent disallowables 0.8 0.3

Chattels (1.0) (1.5)

Prior year adjustments (0.6) (1.2)

Non qualifying depreciation 0.6 0.8

Overseas tax rate - 0.2

Effective rate 17.1 20.4

Agenda

23 Net working capital

2014 2013

£m £m

Inventories 5.3 5.7

Trade debtors 33.4 29.1

Prepayments and other debtors 5.0 4.1

Current assets 43.7 38.9

Trade creditors (15.6) (13.3)

Accruals, other creditors and tax (29.4) (23.0)

Net working capital (1.3) 2.6

24 Group history – 1954 to date

Turnover 1970: £2m 1980: £14m 1990: £70m 2000: £55m 2010: £129m 2013: £167m 2014: £183m

2014 Vp plc

Celebrates its

60th Anniversary

1954Vibratory Roller & Plant Hire

(Northern) Limited founded

1973Floated on main market

Vibroplant plc

1980Shoring division

established

1982US powered access

business established

1996Tool Hire:

Cannon Tool Hireacquired in 1996

2001Hire Station formed

through merger of5 regional tool

businesses

2002-2004Shoring expansion

through acquisitionof Mechplant,

Trenchshore &Eve Shorco

2006Acquisition of Bukom

Oilfield Services(Airpac Bukom formed)

1975First move into

specialistplant - Airpac

1990Groundforce

acquired fromSGB

1996Exit from USA;

UK specialist businessesexpanded

1997Rail: Torrent

Trackside acquired

2000UK Forks

divisioncreated

2001Renamed Vp plc

2005TPA and

ESSacquired

2007 - 2009Continuing growth in

specialist areas viaacquisitions of MEP and

U Mole

2010Geographical expansion:

Global (Airpac Bukom).Eire (Groundforce),

Germany (TPA)

1954

19731980 1990

2006

2011Mainland Europe -

Groundforce

2014

Agenda

25 TPA

Europe’s market leader in portable roadways:

• Operations in UK, Republic of Ireland and Germany

• Skilled installation of bespoke roadways and walkways

Markets:

• Transmission, construction, rail and outdoor events

Opportunities:

• Regulated transmission programme, new products and

European growth

Agenda 26 UK Forks

National hire of telescopic handlers/rough terrain forklifts:

• Only UK national telehandler specialist

• Fleet of c.1335 machines

• Strategically located distribution network

Markets:

• General construction, housebuild and industry

Opportunities:

• Housebuilding, construction recovery and market share growth

Agenda Hire Station

Tool hire and specialist equipment for construction and industry:

• Local tool hire branches supported by national call centre

• Plus, specialist products and services

° ESS Safeforce – safety equipment and confined space training

° MEP – press fitting, electrofusion and low level access

Markets:

• Construction, industry, civil engineering, housebuild, DIY

Opportunities:

• Specialist products, construction recovery and market share growth

27

Agenda Groundforce

UK market leaders in the rental and sale of shoring products and

solutions:

• Groundforce has the largest excavation support

fleet in the UK and Ireland

• Plus, specialist products and services

° Piletec & Mr Cropper – piling equipment

° Stopper Specialists – pipeline pressure testing

° Shorflo – pumps

° ‘U’ Mole – trenchless technology

Markets:

• Civil engineering (including regulated AMP

programme), construction and housebuilding

Opportunities:

• Infrastructure, European growth and construction recovery

28

Agenda Torrent Trackside

Provision of rail specific light plant, trackside lighting and skilled

trackside personnel:

• Genuine 24/7 x 365 national support

• The widest range of specialist portable rail equipment in the UK

• Significant safety and compliance barriers to

entry in a regulated market

Markets:

• Maintenance and renewals projects on national rail

network, London Underground and Network Rail

maintenance contract

Opportunities:

• CP5, Crossrail, maintenance

29

Agenda

International rental of high pressure air compressors, steam

generators and specialist equipment supported by skilled engineers:

• Global network of six service and distribution facilities located in the

UK (Aberdeen and Great Yarmouth), Singapore, Australia, Middle

East and Latin America

• Rental assignments in more than 60 countries

Markets:

• Well testing, rig maintenance, gas transfer, LNG

Opportunities:

• Well test market, LNG, new products and growth in under

represented geographic regions

Airpac Bukom 30