1

Presentation to Carillion

The Equipment Rental Specialists

9th June 2010

The Equipment Rental Specialists

DRAFT #3 (24 Nov)

The Equipment Rental Specialist

Interim Results for the

period ended

30 September 2016

2

Agenda

Strategy & Highlights

Operational Review

Financial Review

3

Strategy & Highlights

4

Business Model and Strategy

WE AIM TO CREATE

VALUE THROUGH

SPECIALIST EQUIPMENT

RENTAL IN NICHE

SECTORS WHERE WE

HAVE MARKET LEADING

POSITIONS

Aim to provide “value

added” services –

people, training, design

Deliver product

service reliability and

operational

excellence:

- centralised hire desk

- sector leading IT

systems

Embrace change and

look for innovation yet

take long term view

Retaining and

attracting the best

people and working

safely are key to our

aims of exceeding

customer

expectations and

enhancing

shareholder value

Buy quality products

at competitive prices,

maintain our assets

through their rental life

cycle

Use our strong

balance sheet and

positive cash

generation to grow

through fleet

investment and

acquisitions

5

A positive trading period

● Excellent progress – 9% uplift in profits

● 16% revenue growth – mix of organic and acquisitions

● Profit margin 15.4%

● Fleet investment increased to £29.9m

● Return on average capital employed 15.6%

● TR Group acquired – April 2016

● No change in business demand since Brexit

6

Revenue and profit profile

84.0 91.3

101.3 105.1

121.7

167.0

183.1

205.6

241.5

0

20

40

60

80

100

120

140

160

180

200

220

240

260

2013 2014 2015 2016 H1 2017

208.7

11.0

12.8

16.2 17.2

18.7

29.8

17.4

20.1

26.8

33.7

0

4

8

12

16

20

24

28

32

36

2013 2014 2015 2016 H1 2017

£m £m

Profit before tax and amortisation Revenue

* *

*N+1 Singer forecast

7

Operational Review

8

Infrastructure

45%

Other

5% House

building

13%

Oil & Gas

10%

Construction

27%

Key markets

Infrastructure

43%

Construction

27%

Oil & Gas

9%

House

building

11%

Other

10%

H1 2017 H1 2016

9

Market dynamics

Revenue

Market

Segment

H1

2017

£m

H1

2016

£m

Growth/

Decline

on prior

year

Infrastructure* 52.6 46.8 +12% Civils & Transmission

Construction 33.1 28.8 +15% R+M/fit out/market share

Oil & Gas 10.3 10.2 +1% Onshore Offshore

Housebuilding 13.7 13.3 +3% Private sector

Other 12.0 6.0 Events / Defence

Total 121.7 105.1 +16%

* Utilities, Rail, Transmission and Facilities Management

10

Business performance - UK

H1 2017 H1 2016

Revenue 108.1 96.7 +12%

PBIT 19.5 17.2 +13%

Margin 18.0% 17.8%

● Infrastructure growth – Groundforce

● Construction growth – strong trade in Hire Station

● Stable housebuild activity – UK Forks

● Busy rail sector – Torrent Trackside

11

Business performance - International

● Offshore oil & gas markets remain challenging

● Maiden, part year contribution from TR Group

● TR Group integrating well into Vp

H1 2017 H1 2016

Revenue 13.7 8.5

PBIT 0.6 1.0

Margin 4.8% 11.9%

12

Acquisition – TR Group

● TR Group Pty – Australia, Malaysia, New Zealand

● Acquired April 2016

● Consideration A$17.4m

● Test & measurement, communications and audio visual rental

● Settling in well to the Vp group

● Tech Rentals NZ acquisition post period end NZ$2.6m

13

Fleet investment

H1 2017 H1 2016

£m £m

UK 27.8 23.0

International 2.1 0.4

Total fleet capex 29.9 23.4

Disposal proceeds (8.1) (9.2)

Net expenditure 21.8 14.2

● Strong fleet capex in UK

● Growth investment into Hire Station / Groundforce / TPA

● International fleet capex – TR Group

14

Operational outlook

● Construction, housebuild and infrastructure remain positive markets in UK

● Offshore oil and gas challenged but recovery anticipated in medium term

● Investment opportunities both for UK and International divisions

● Trading into H2 2017 has started well

● Autumn statement supportive on housebuilding and infrastructure investment

● Alert to any changes in sentiment

● Anticipate positive progress for the full year

15

Financial Review

16

Financial highlights – continuing progress

H1 2017 H1 2016 FY 2016

Revenue £121.7m £105.1m +16% £208.7m

EBITDA £36.3m £31.4m +16% £59.3m

Profit before tax and amortisation £18.7m £17.2m +9% £29.8m

Net margin 15.4% 16.4% 14.3%

ROACE 15.6% 16.1% 16.3%

17

H1 2017 H1 2016

Basic EPS (pre amortisation) 37.9p 35.1p +8%

Profit for period before tax and amortisation £18.7m £17.2m +9%

Weighted average number of shares 39.1m 38.9m

Tax rate 20.7% 20.5%

Earnings per share – 8% increase

18

Dividend per share (pence)

Interim dividend – 12% increase H1 2017 H1 2016 FY 2016

Basic EPS (pre amortisation) 37.9p 35.1p +8% 62.21p

Interim dividend per share 6.00p 5.35p +12% 18.85p

Dividend cover 6.3x 6.6x 3.3x

3.1 3.3 3.6 5.0 5.35 6.00

11.35 12.25

14.0

16.5

18.85

0

2

4

6

8

10

12

14

16

18

20

2012 2013 2014 2015 2016 H1 2017

Interim Dividend Full Year Dividend

19

Ave

rag

e C

ap

ita

l E

mp

loye

d -

£m

Strong ROACE

161.2

169.4

177.3

185.1

196.0

217.6

13.5%

14.9%

16.2% 16.1% 16.3%

15.6%

3%

5%

7%

9%

11%

13%

15%

17%

19%

120

130

140

150

160

170

180

190

200

210

220

FY14 H1 15 FY 15 H1 16 FY 16 H1 17

RO

AC

E %

20

Robust balance sheet

H1 2017 FY 2016 H1 2016

£m £m £m

Rental equipment (fleet) 167.4 147.2 137.2

Other property, plant and equipment 21.0 20.0 18.7

Goodwill and intangibles 50.3 46.4 42.5

Net working capital 2.4 (2.3) 0.9

Deferred tax / pension (4.5) (3.8) (3.1)

Net debt (107.5) (86.1) (81.8)

Net assets 129.1 121.4 114.4

Gearing 83% 71% 72%

Debtor days 57 56 56

Debt write off as % revenue 0.4% 0.4% 0.3%

21

Healthy EBITDA, significant investment

Cash inflows

EBITDA : £36.3m

Cash outflows

Net capex £25.5m Acquisitions

£8.9m

Working

Capital

£4.7m

Tax /

Interest

£2.9m

Dividends

£5.3m

Other

£10.4m

Increase in net debt

£21.4m

22

17 Bank facilities H1 2017

£m

FY 2016

£m

Committed facilities

Due to expire Oct ’17 50 50

Due to expire May ‘20 65 45

Overdraft facilities 5 5

Total facilities 120 100

Step up facility 5 20

H1 2017

£m

FY 2016

£m

Net debt 107.5 86.1

Headroom 12.5 13.9

23

17 Headroom for growth

7.30 8.04

12.28

14.23 15.24

13.25

Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 H1 17

Greater than 3 times

EBITA

Interest

Cover

1.05 1.10 1.20 1.24 1.45

1.68

0.00

0.50

1.00

1.50

2.00

2.50

3.00

FY 12 FY 13 FY 14 FY 15 FY 16 H1 17

Considerable headroom

Less than 2.5 times Net Debt /

EBITDA

24

Any Questions?

25

Supplementary Schedules

26

Group history – 1954 to date

Revenue: 1970: £2m 1980: £14m 1990: £70m 2000: £55m 2010: £128m 2013: £167m 2014: £183m 2015: £206m 2016: £209m

1954

Vibratory Roller & Plant Hire

(Northern) Limited founded

1973Floated on main

marketVibroplant plc

1980Shoring

divisionestablished

1982US powered access

business established

1996Tool Hire:

Cannon Tool Hireacquired

2001Hire Station

formedthrough merger of 5 regional

tool businesses

2006Acquisition of Bukom

Oilfield Services

(Airpac Bukom formed)

1975First move into

specialistplant

Airpac

1990Groundforce

acquired fromSGB

1996Exit from USA;

UK specialist businesses

expanded

1997Rail:

TorrentTrackside

acquired

2000UK Forks

divisioncreated

2001

RenamedVp plc

2005TPA and

ESSacquired

2010Geographical

expansion:Global

(Airpac Bukom).Eire (Groundforce),

Germany (TPA)

1954

19731980 1990

20162013

2015Acquisition of

Test & Measurement

2014

Vp celebrates its60th Anniversary

2016Acquisition

Higher Accessand

TR Pty Ltd

27

UK division 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 solutions

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

28

Cash flow

H1 2017 H1 2016 FY 2016

£m £m £m

Operating profits 19.2 17.3 29.6

Depreciation / Amortisation 17.1 14.1 29.7

EBITDA 36.3 31.4 59.3

Changes in working capital (4.7) (6.7) (6.7)

Gross capex (33.6) (29.8) (50.2)

Asset disposal profit (3.3) (3.1) (6.2)

Proceeds from disposals 8.1 9.2 17.2

Acquisitions (8.9) - (7.1)

Interest (1.4) (1.0) (2.1)

Tax (1.5) (2.7) (4.8)

Dividends (5.3) (4.5) (6.6)

Other (2.8) (7.8) (9.0)

Debt / Finance Leases acquired (4.3) - (3.1)

Cash movement (change in net debt) (21.4) (15.0) (19.3)

29

Effective rate of tax

H1 2017

%

H1 2016

%

Standard rate 20.0 20.0

Impact of tax rate change on deferred tax - -

Permanent disallowables 0.4 0.3

Chattels (1.3) (0.9)

Prior year adjustments 0.4 -

Non qualifying depreciation 0.6 0.4

Overseas tax 0.6 0.7

Effective rate 20.7 20.5

30

Net working capital

H1 2017

£m

FY 2016

£m

H1 2016

£m

Cashflow

movement

H1 2017

Inventories 5.4 5.4 5.0 -

Trade debtors 44.3 38.4 35.6 (5.9)

Prepayments and other debtors 7.1 6.4 8.4 (0.7)

Trade creditors (19.6) (18.8) (16.8) 0.8

Accruals, other creditors and tax (34.8) (33.7) (31.3) 1.1

Net working capital 2.4 (2.3) 0.9 (4.7)

Capital creditors movement 2.0

Other cashflow swap/tax (2.0)

Cashflow changes in debtors, creditors and stock (4.7)