Presentation

to Carillion

The Equipment Rental Specialists

9th June 2010

The Equipment Rental Specialists

Vp plc

Interim Results

for the six months ended

30 September 2012

● Results Summary

● Operational Review

● Financial Review

● Conclusion

Agenda 1

2 Results summary

H1 H1

2013 2012

Profit before tax and amortisation £11.0m £10.4m +6%

Revenue £84.0m £82.7m +2%

Earnings per share pre amortisation 22.46p 19.41p +16%

Dividend per share 3.25p 3.10p +5%

Return on Average Capital Employed 13.2% 13.1%

3 Highlights

● Excellent profits

● Challenging trading conditions

● Strong operating cash flow

● Focus on quality delivered improved profit margins and ROCE

● Tender offer successfully completed April 2012

● Acquisition of Balfour Beatty businesses in July 2012

● Balance sheet remains strong

4 Revenue and operating profit trends

Revenue

(£m)

Operating profit (£m)

20.1

84.0

166.8

82.7 69.1

67.8

81.6 76.0 61.3

11.6 10.0 11.3

15.9 13.4 8.8

Actual Half Year Brewin Dolphin Forecast

5 Operational review

6 Markets

Infrastructure

Construction

Oil & Gas

Housebuilding

Events

Other

Revenue H1 Growth/

by 2013 decline

sector £m on prior year

Infrastructure 36.9 +9% AMP5, Rail, Transmission

Construction 22.4 No change Market conditions

Oil & Gas 10.6 -4% LNG 'gap'

Housebuilding 5.0 -7% Market conditions

Events 4.2 -9% Focus on quality

Other 4.9 -7%

Total 84.0

Market segments

7 Divisional overview

● Focus on business improvement, product and service innovation,

new markets

● Actions on contract selection/fleet mix deliver margin improvements

at TPA and Hire Station

● Completion of Pluto LNG project creates expected revenue gap at

Airpac Bukom

● Successful integration of Balfour Beatty acquisitions into Hire Station

and UK Forks

● Further European infrastructure expansion for TPA and Groundforce

8 Business performance

2013 2012 2013 2012

£m £m £m £m

7.0 6.4 1.0 1.0 Performance stabilised

18.2 16.5 4.1 3.5 AMP5 and infrastructure

9.6 10.3 1.3 2.0 LNG gap on Pluto completion

29.3 29.1 1.7 1.5 Improved revenue quality

9.5 10.5 2.5 2.2 Improved revenue quality

10.5 10.0 1.7 1.4 Maintained rail demand

TOTAL 84.0 82.7 12.3 11.6

Operating Margin 14.7% 14.0% Further margin improvement

Revenues H1 PBITA H1

9 Capital investment in fleet H1 H1

2013 2012

£m £m

0.2 3.2 Response to levelling of demand

3.6 2.6 AMP5 pick up/European infrastructure

0.9 0.2 Replacement expenditure

5.2 4.7 Safety rental products

2.3 4.0 Pitch cover

0.4 1.2 Replacement expenditure

Total fleet capex 12.6 15.9

Disposal proceeds (3.9) (3.5)

Net expenditure 8.7 12.4

10 Operational outlook

● Trading in line with expectations into H2

● Little prospect of construction market recovery, relatively defensive

approach maintained

● Specific accretive opportunities will be pursued e.g. Balfour Beatty deal

● Continue to invest in our people, systems and fleet for longer term

● Revenue quality, fleet mix, rental pricing, business improvement

● Maintained focus on ROCE

● Investing for profit quality not revenue size

11 Financial review

12 Financial highlights – continuing progress

H1 H1 Full Year

2013 2012 2012

Revenue £84.0m £82.7m +2% £161.5m

EBITDA £22.7m £21.5m +6% £38.7m

EBITA £12.3m £11.6m +6% £18.5m

Profit before tax and amortisation £11.0m £10.4m +6% £16.0m

Net margin 13.0% 12.5% 9.9%

ROACE 13.2% 13.1% 13.0%

13 Earnings per share

EPS bridge

Pence %

EPS H1 2012 19.41

Reduced number of shares 1.42 7.3

Increase in net profit 1.55 8.0

Reduction in tax rate 0.08 0.4

EPS H1 2013 22.46 15.7

H1 H1

2013 2012

Basic EPS 21.63p 18.84p +15%

Basic EPS (pre amortisation) 22.46p 19.41p +16%

Net profit for period pre amortisation £8.7m £8.0m +8%

Weighted average number shares 38.6m 41.4m

Tax rate 20.8% 22.3%

14 Dividend per share – 5% increase at interim

Pe

nc

e p

er

sh

are

Dividend per share (pence)

Interim Dividend Full Year Dividend

H1 H1 FY

2013 2012 2012

Basic EPS 21.63p 18.84p +15% 29.63

Dividend per share 3.25p 3.10p +5% 11.35

Dividend cover 6.7x 6.1x 2.6x

H1 H1

2013 2012

£m £m

Rental equipment (fleet) 103.1 95.2

Other assets 11.4 10.7

Intangible assets 39.8 39.3

Net working capital 2.0 2.1

Deferred tax/pension (7.3) (8.5)

Capital employed 149.0 138.8

Net debt (50.1) (43.4)

Net assets 98.9 95.4

Gearing 51% 45%

Net assets per issued share £2.46 £2.12

Net debt to EBITDA 1.26x 1.16x

Low gearing with

capacity to grow

15 Strong balance sheet

8% growth in fleet

self funded

1.6

50.1

7.8

4.1

15.1 2.6

40.4 22.7

3.2

3.0

3.4

Opening EBITDA Change Interest / Dividend Capex Asset Acquisition Tender Other Closing

Debt Working Tax Disposal Offer Debt

31/03/12 Capital NBV 30/09/12

15

50

30

20

40

21 16 Financial Performance – strong cash generation

Share Buy Back

Fleet £12.6m

Other £2.5m

Balfour Beatty

activities

Final dividend

brought forward

£m

17 Robust ROACE A

ve

rag

e C

ap

ita

l E

mp

loye

d £

m

RO

AC

E

Average Capital

Employed £mROACE

Estimated

WACC

21

18 Debt structure – capacity for growth

£35m

Drawn Headroom

£50m net debt £20m

£m

Key Covenants H1 13 H1 12 Covenant

Net debt/EBITDA 1.26x 1.16x <2.5x Significant headroom against covenantsEBITA interest cover 7.26x 7.11x >3x

19 Conclusion

20 Conclusion

Economy & Markets ● General market upturn unlikely

● Micro market specifics can be different

and opportunity does exist

Future Growth ● Maximising quality of return in UK

● Development of European growth platform

● New products, complementary acquisitions

● Relatively defensive stance to continue

Capacity ● Management and financial resources

available to deliver further longer term progress

Performance ● Profit growth

● 15% operating margins

● 13% ROCE

● 5% interim dividend increase

● Reliable and impressive track record

24 21 Supplementary schedules

22 Effective rate of tax

Sep 2012 Sep 2011

% %

Standard rate 24.0 26.0

Impact of tax rate change on deferred tax (3.0) (3.7)

Permanent disallowables 0.6 1.0

Chattels (1.2) (1.5)

Share option schemes - (0.4)

Prior year adjustments (0.3) -

Non qualifying depreciation 0.7 0.9

Other - -

Effective rate 20.8 22.3

23 Net working capital

H1 H1

2013 2012

£m £m

Inventories 5.2 5.9

Trade debtors 31.1 31.5

Prepayments and other debtors 5.3 7.5

Current assets 41.6 44.9

Trade creditors (16.4) (17.7)

Accruals, other creditors and tax (23.2) (25.1)

Net working capital 2.0 2.1

1980

Turnover 1970: £2m 1980: £14m 1990: £70m 2000: £55m 2010: £130m 2012: £162m

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

specialist

1990Groundforce

acquired fromSGB

1996Exit from USA;

UK specialist businessesexpanded

1997Rail: Torrent

Trackside acquired

2000UK Forks

divisioncreated

2001Renamed Vp plc

2005TPA and ESS

acquired

2007 - 2009Continuing growth in

specialist areas viaacquisitions of MEP and

U Mole

2010Geographical expansion:

Global (Airpac Bukom).Eire (Groundforce),

Germany (TPA)

1954

1973

1980 1990

2006

2012

2011Mainland Europe -

Groundforce

24 Group history – 1954 to date

1980

25 Group Thumbnail

● Rental specialist serving diverse, niche end

markets

● 6 operating divisions

● Established for c.60 years

● Mainly UK based with European exposure

(Groundforce/TPA) and global presence

(Airpac Bukom)

● 1600+ employees; £160m+ revenues

1980

26 TPA

Markets: • Transmission, outdoor events, rail and construction

Opportunities: • Regulated transmission programme, new

products and European growth

Europe’s market leader in portable roadways:

• Operations in UK, Republic of Ireland

and Germany

• Skilled installation of bespoke roadway and

fencing solutions

1980

27 UK Forks

National hire of telescopic handlers/rough

terrain forklifts:

• Only UK national telehandler specialist

• Fleet of c.1250 machines

• Strategically located distribution network

Markets:

• General construction, housebuild and industry

Opportunities: • Housebuilding improvement, market share growth

1980

28 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 and electrofusion

° Climate Hire – heating and cooling products

° Virtual Hire – ‘white label’ partnerships, e.g.

Homebase, Garden Centre Group

Markets: • Construction, industry, civil engineering,

housebuild, DIY

Opportunities: • Specialist products, market share growth

1980

29 Groundforce

Opportunities:

• AMP 5, European growth

Markets:

• Civil engineering (including regulated AMP

programme), construction and housebuilding

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 – piling equipment

° Stopper Specialists – pipeline pressure testing

° Shorflo – pumps

° ‘U’ Mole – trenchless technology

1980

30 Torrent Trackside

Opportunities:

• LUL, Crossrail, increased renewal activity

Markets:

• Maintenance and renewals projects on

national rail network, London Underground

and Network Rail maintenance contract

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

1980

31 Airpac Bukom

Opportunities:

• Recovery in well test market, new applications and

growth in under represented geographic regions

Markets:

• Well testing, rig maintenance, gas transfer,

LNG

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