Zigup Plc · LSE:ZIG
Zigup — Redde Northgate — Investec conference November 2023
23 slides from Zigup's conference presentation, November 2023
Slide 1: Investec conference
Investec conference November 2023
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Redde Northgate Plc (the “Company” and, together with its subsidiaries, the “Group”). For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or ans
Slide 3: Content
Content • Recap of recent public statements • FY23 financial overview • Group business overview
Slide 4: Recap of recent public statements
Recap of recent public statements 44
Slide 5: FY 2023 Overview: Achievements
FY 2023 Overview: Achievements Strong operational performance FY2023 strategic progress Revenue growth drivers Delivering on strategic goals Fleet size: up over 4,000 to over 130,000, growth in Spain & Redde Acquisitions: of Sustainability: new vehicle specialists Group committee, New contracts: Str
Slide 6: Current environment (July 23)
Current environment (July 23) Market Demand strong in Traffic activity stabilising at all geographies ‘new normal’ Growing interest in Repair capacity remains value-added services scarce Fleet supply UK: Better visibility, but Pockets of supply are timing uncertainty available Spain: Improved Unders
Slide 7: AGM commentary – current trading (end-Sep 23)
AGM commentary – current trading (end-Sep 23) The Group has started the year very well and current trading momentum remains strong with healthy demand and activity across the business Rental demand in UK&I outstrips supply which remains constrained Vehicles are starting to arrive in greater quantiti
Slide 8: AGM commentary – business model (end-Sep 23)
AGM commentary – business model (end-Sep 23) Board very confident of the Group‘s strategy and prospects, and its longstanding business model Operating with a prudent level of leverage well within its 1-2x target range Supported by fleet assets of £1.2bn, delivering profitable and cash generative ret
Slide 9: Financial Overview
Financial Overview 9 redde@n@rTHGATE
Slide 10: FY 2023 Overview: Underlying Group Performance
FY 2023 Overview: Underlying Group Performance Revenue EBIT Profit before tax EPS +22.2% +12.7% +9.7% +9.5% FY 2023: £1,336.9m FY 2023: £189.2m FY 2023: £165.9m FY2023: 55.6p FY 2022: £1,093.6m FY 2022: £167.9m FY 2022: £151.3m FY 2022: 50.8p Steady state cash gen. Net debt & leverage ROCE DPS -£24.
Slide 11: Group revenue waterfall FY 2022-23
Group revenue waterfall FY 2022-23 Comments £196.0m £3.0m £1,489.7m • UK&I rental revenue +6.1%, ave. VOH -2.6% • Spain rental revenue +14.6%, ave. VOH +6.2% £32.1m • Redde revenue +37% £15.1m including new contracts £1,243.6m • UK&I vehicle sales revenue -6% • Spain vehicle sales revenue +24% Exclu
Slide 12: Well-financed to drive sustainable shareholder value
Well-financed to drive sustainable shareholder value A strong financial platform … Acquisitions and cumulative returns to shareholder (£m) FY 2023 FY 2022 120.0 121.0 £m £m Dividends paid final Acquisitions 100.0 Dividends paid interim Share buyback Net debt £694.4m £582.5m 80.0 68.8 Net debt / EBIT
Slide 13: Cashflow and capex
Cashflow and capex FY 2023 FY 2022 Change £m £m £m Underlying EBIT 189.2 167.9 21.3 Depreciation and amortisation8 223.0 198.8 24.2 Underlying EBITDA 412.2 366.7 45.5 Underlying growth Net replacement capex1 (155.6) (106.7) (48.9) Replacing fleet Lease principal payments (65.1) (43.7) (21.4) Steady
Slide 14: Capital allocation – cashflow priorities
Capital allocation – cashflow priorities FY23 Cashflow statement Capital allocation priorities Cashflow reordered to reflect priorities FY 2023 Funding 1 £m organic growth Underlying EBITDA 412.2 Net replacement capex1 (155.6) 2 Sustainable & growing dividend Lease principal payments (65.1) Steady s
Slide 15: Group Business Overview
Group Business Overview 1515
Slide 16: Overview of Redde Northgate
Overview of Redde Northgate The UK’s leading Largest purchaser of LCVs integrated mobility in UK and Spain 40 years in business solutions provider (c.30k vehicles per annum) 175 branches across >130,000 Owned Fleet UK, Ireland & Spain Member of the FTSE 250 >700,000 Managed Vehicles FY23 Underlying
Slide 17: What we do
| What we do Vehicle provision Fleet support Management of the performance, compliance and maintenance of commercial fleets such as service scheduling, telematics, driver liaison, training and downtime management. Additional fleet support services together with EV charging and solar installation and
Slide 18: Delivering services across the vehicle lifecycle
Delivering services across the vehicle lifecycle 18
Slide 19: Breadth of related services
Breadth of related services Integrated platform of related services Leveraging breadth & scale of mobility platform No major gaps in core product & services offering Potential to explore adjacencies 19
Slide 20: Integrated Mobility Solutions: Delivering for customers
Integrated Mobility Solutions: Delivering for customers Differentiated customer offering Simple access, multiple touchpoints 24/7 Greater flexibility and responsiveness Functioning seamlessly as a combination Increasing cross-platform customer efficiencies as scale grows 20
Slide 21: Our customers
Our customers Corporates from blue-chip to SMEs Public Sector Renting vehicles to corporate customers from the We are an accredited Public Sector provider through largest of blue chips through to SMEs a number of Framework Agreements A broad cross section of industries from support Providing rental
Slide 22: Diverse rental customer exposure
Diverse rental customer exposure UK Customer profile Spanish Customer profile % Fleet % Fleet VoH Sectors Sectors Sub sectors VoH Facilities Mgmt/Civil Engineering Construction, infrastructure Construction 10-15% ea Specialist construction 20-30% ea Rental services, safety, Support services maintena
Slide 23: Our locations
UK & Ireland 91 Rental locations 64 Repair centres 6,100 Colleagues 23 Rental locations 117 Repair centres Colleagues 103. 7,400 Spain 26 is oo ‘ e © Rental locations a a . 39 ys % eee Repair centres + 4g Se 1,300 od o e O C) Colleagues init ory a ; . G ose x ° . eo or Se “ © . @@e O e “ * 2's e wat