Growth Through the Energy Transition Strategic Report in Order to Grow While Continuing to Meet Our Customers’ Changing Needs, We Will Evolve the Way We Do Business

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Growth Through the Energy Transition Strategic Report in Order to Grow While Continuing to Meet Our Customers’ Changing Needs, We Will Evolve the Way We Do Business Growth through the energy Aggreko plc Aggreko transition Aggreko plc Annual Report and Accounts 2020 Annual Report and Accounts 2020 Report Accounts and Annual I would like to recognise and thank everyone at Aggreko for the great job they have done in responding to the COVID-19 pandemic, adapting and continuing to serve our customers safely and reliably through these challenging times. We can, and will, emerge stronger, and we are excited about the opportunity in front of us to grow through the energy transition, while continuing to power progress for our customers wherever they are in the world. Chris Weston Chief Executive Officer Performance highlights Revenue Pre-exceptional Post-exceptional profit before tax operating loss £1,365m £102m £(39)m 2019: £1,613m 2019: £199m 2019: £241m Pre-exceptional Pre-exceptional return Post-exceptional operating profit on capital employed1 loss before tax £136m 7.5% £(73)m 2019: £241m 2019: 11.2% 2019: 199m Pre-exceptional Dividend per share Post-exceptional diluted EPS diluted EPS 21.8p 15.00p (43.4)p 2 2019: 50.7p 2019: 9.38p 2019: 50.7p Exceptional items are explained in Note 7 to the Accounts 1 ROCE calculation is detailed on page 159 2 Interim dividend only Contents Strategic report Governance Financial statements 01 Growth through the 52 Chairman’s introduction 98 Independent auditor’s 154 Company statement of energy transition report changes in equity 54 Our Board 02 Aggreko at a glance 106 Group income statement 155 Notes to the Company 56 2020 Board priorities and accounts 04 Chairman’s statement COVID-19 response 106 Group statement of comprehensive income 159 Definition and calculation 05 CEO Chris Weston’s view 58 Purpose statement & of non-GAAP measures Our Culture and Values 107 Group balance sheet 06 Meeting the challenge of 161 Shareholder information the energy transition 59 Ethics & Corporate 108 Group cash flow statement Responsibility report 08 Our business model 109 Reconciliation of net 62 Nomination Committee cash flow to movement 10 Our strategic priorities report in net debt 24 Group performance review 64 Audit Committee report 110 Group statement of 30 Financial review changes in equity 68 Remuneration Committee 35 Principal risks and report 112 Notes to the Group accounts uncertainties 93 Statutory disclosures 152 Company balance sheet 42 Sustainability 97 Statement of Directors’ 153 Company statement of 46 Our stakeholders and responsibilities comprehensive income section 172 statement 01 Growth through the energy transition report Strategic In order to grow while continuing to meet our customers’ changing needs, we will evolve the way we do business. To enable that, we have refreshed our strategy, with clear commitments. Governance 1. 2. 3. To become a net-zero To maintain our To retain our relentless business by 2050 target of delivering focus on capital or sooner a mid-teens ROCE employed: With commitments Focusing on profitable − Disciplined capital investment statements Financial in the range £250–350m per for the next decade: growth: year supporting the transition − Reduce diesel fuel used − Delivering revenue growth − Maintaining our focus on in customer solutions by of ~5–10% per year over the improving utilisation at least 50% medium term − Continuous improvement in − Reduce local air quality − Driving mid-term margin working capital performance emissions of our solutions expansion into the high teens by 50% Read more on page 20 − Achieve net-zero emissions Read more on page 12 across our business operations Read more on page 07 information Shareholder Our strategic priorities enable us to pursue these aims: Customer Technology Capital Expert focus investment efficiency people Being particular about the Developing competitive Being mobile and modular Living Always Orange sectors we target configurable products Getting the very maximum Nurturing our full potential Offering specialist solutions Smarter use of connected out of our assets Staying safe and systems and data analytics Being simple to do Striving for the most professional at all times business with Integrating renewable competitive cost base and storage technology Read more on page 12 Read more on page 16 Read more on page 20 Read more on page 22 Annual Report and Accounts 2020 Annual Report and Accounts Learn more about us at www.plc.aggreko.com Aggreko plc Aggreko 02 Aggreko at a glance The world-leading provider Rental Solutions We provide power, heating and cooling in of mobile modular power, developed markets, focused on seven key sectors. Our customer requirements tend temperature control and to revolve around smaller, short-term but energy services often complex projects, and key events. We are working at the forefront of a rapidly changing energy market. Our focus is on solving our customers’ challenges to provide cost-effective, flexible and greener solutions across the world. Revenue Our global reach £693m 80 6,008 MW 53% of Group revenue countries average power on hire Pre-exceptional operating profit 6,000+ 697 MW £102m permanent employees average temperature control 75% of Group operating profit on hire Post-exceptional operating profit 182 119 MW sales and service centres of hybrid projects on hire £77m Key sectors % of revenue 1. Building services & construction 21% 2. Petrochemical & refining 17% 3. Utilities 13% 4. Oil & gas 11% 5. Manufacturing 7% 6. Mining 7% 7. Events 4% 8. Other 20% Annual Report and Accounts 2020 Annual Report and Accounts Aggreko plc Aggreko 03 Strategic report Strategic Power Solutions Our purpose We provide power, heating and cooling focused on seven key sectors across We power progress emerging markets for customers with generally longer-term power needs. by delivering energy Industrial (PSI) anywhere Comprises medium-term projects, as well as shorter-term rental contracts for We are united by our ambition to power progress, industrial customers. as the world grows more concerned with how its energy is produced. If we can lead our customers through the energy Governance transition and help them achieve their carbon reduction targets – while remaining true to our values and being Always Orange – then we will Revenue power progress by delivering energy anywhere. £362m 27% of Group revenue Our investment case Pre-exceptional operating profit Attractive, enduring markets targeting £18m 5 – 10% mid-term revenue growth statements Financial 13% of Group operating profit Read more about our markets on page 06 Post-exceptional operating loss Focus on key sectors where our specialisation £(22)m differentiates us Read more about our business model on page 08 Key sectors % of revenue 1. Oil & gas 39% Proven technology expertise with a growing 2. Mining 16% renewable and storage integration capability 3. Building services & construction 10% Read more about our technology strategy on page 16 4. Events 7% 5. Manufacturing 8% Well positioned for profitable growth information Shareholder 6. Utilities 6% with a clear path to mid-teens returns 7. Petrochemical & refining 5% Read more about our capital efficiency onpage 20 8. Other 9% Progressive dividend within a balanced Utility (PSU) capital allocation framework Longer-term projects providing Read more about our capital allocation on page 09 power to national utility customers. Revenue* £265m 20% of Group revenue Pre-exceptional operating profit £16m 12% of Group operating profit Post-exceptional operating loss £(94)m *PSU revenue excludes pass-through fuel Annual Report and Accounts 2020 Annual Report and Accounts 100% of revenue is derived from national utility customers. See page 24 for financial performance plc Aggreko 04 Chairman’s statement Aggreko has been able to depend on its adaptability, flexibility and reliability through 2020, the toughest of years In my 10 years with Aggreko, I have been immensely impressed by the resilience with which the business has adapted to significant changes in its markets, but never more so than in the way it dealt with COVID-19. As I write my final statement, I know this resilience will enable Aggreko to grow through the energy transition. Ken Hanna Chairman Performance and the Dividend Reflections on leaving Aggreko COVID-19 pandemic We remain committed to a progressive As I leave Aggreko after nine years as As you look at last year’s performance, dividend which, supported by the Chair, the themes running through my you will see the impact of COVID-19, business performance, delivers regular reflections are resilience and adaptability. but what you will not be able to see cash returns to our shareholders. It is worth remembering just how much is the valiant way in which our people Following the decision at the 2020 we have had to adapt, particularly in the responded. These results cannot do Annual General Meeting (AGM), not to time since Chris Weston joined as Chief justice to the resilience of our business pay the 2019 final dividend, in line with Executive Officer in 2015. Following the or the adaptability of our people, as steps taken to preserve the Group’s cash significant impact of the collapse of the well as the strengthening of Aggreko’s position through the COVID-19 crisis, oil price in 2014, we reappraised the foundations over the last five years. the Board approved an interim dividend balance of our markets, resulting in Profit before tax was down 45% on of 5 pence per share for 2020. This today’s greater diversity. From 2015, we an underlying basis and our return on reduction on the prior year reflected addressed the increase in competition capital employed (ROCE) was 7.5% (the lower earnings and the market in our Power Solutions Utility markets, calculation is on page 159). Our financial uncertainty at that time, and not a resulting in today’s more resilient Group performance is discussed on page 24. change in the Group’s dividend policy. structure, with the faster-growing Rental Solutions and Power Solutions Industrial Our primary concern has been and Given the strength of our foundations, businesses representing 80% of Group remains the welfare of our people, their our disciplined execution and our evolved revenue.
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