to Carillion

1
Vp plc Interim Results for the six months
ended 30 September 2009

• Presentation
• to Carillion

9th June 2010
The Equipment Rental Specialists
The Equipment Rental Specialists
2
Summary
3
Sound performance in difficult markets

• Economic background remains weak
• Profit reduced, but good result in the
  circumstances
• Appropriate cost actions to match weakening
  demand
• Strong cash generation debt reduced
• Maintained dividend
• Financial position further strengthened

4
Operational review
5
Challenging times - successful response

• 10m profit
• Reduced fixed cost base by 7
• Reduced capex 60
• Generated 5m proceeds from fleet sales
• Reduced working capital by 2m
• No acquisitions in the period
• 11m cash generated in first 6 months

6
Revenue and Operating Profit
Revenue (m)
Operating Profit (m)
11.3
71.1
Actual Brewin Dolphin Forecast
7
Business performance
8
Divisional performance
Track renewals activity subdued
Torrent Trackside
Well test steady LNG good
Events good Transmission quieter
Airpac Bukom
TPA
Vp
UK Forks
Hire Station
Housebuild stabilised
General construction downturn
Groundforce
Reduced demand AMP 4 closing
9
Divisions

• Divisions/markets have experienced downturn at
  different times
• Responses largely divisional specific
• Business opportunities do exist
• investment in sales and marketing
• improved co-ordination between divisional sales
  teams
• we are opening many doors
• targeting a greater share in a flat market
• financial covenant of Vp is increasingly an asset
  with customers
• rebranding better alignment with Vp plc

10
Rebranding
Divisions rebranded to better reflect
association with Vp whilst explicitly maintaining
the specialist focus that customers value
11
Capital expenditure
12
Strength through diversity
13
Overseas growth
of Total Group Revenue
10
8
13
Overseas Revenue
5
1

• Overseas activities have continued to grow in the
  last 4 years and now represent 13 of Group
  Revenues
• Primarily Airpac Bukom, but also TPA, Groundforce
  and Hire Station

14
Operational outlook

• Business remains well balanced, with broad
  market base
• More challenges ahead fundamentals weak
• Effective asset management and long term
  financial conservatism is
• paying dividends
• Handling change is in the Groups culture it
  is not one-off in nature
• We aim to secure market share and capitalise on
  the upturn when it
• comes

15
Financial Review
16
Financial highlights
17
Components of pre-tax profit
18
Cost saving measures (fixed costs)
19
Earnings and dividend per share
20
Rental fleet
21
Net working capital
22
Focus on debt reduction
23
Modest gearing, comfortably within covenants
Net debt
Underlying gearing
-17
-23
Interest cover (12 months)
Net debt / EBITDA (12 months)
-7
Unchanged bank facilities of 80m 50m matures
November 2010
24
Quality returns
Operating Margin ()
Return on Average Capital Employed ()
Dividend per share (pence)
Earnings per share (pence)
Actual Brewin Dolphin Forecast
25
Conclusion
26
Sector leading performance

• Quality earnings
• No asset write downs
• No bank restructuring
• No equity funding required
• Balance sheet strengthened organically
• Maintained dividend
• Good margins
• 11m cash all units cash positive
• These are very good results, in a very poor
  market

27
Outlook

• Market fundamentals are weak but relatively
  stable
• Opportunities are available with increased focus
  on sales and marketing
• Cash generation will remain a key measure
• Diversity and financial strength will enable
  long term progress

28
Vp plc Interim Results for the six months
ended 30 September 2009

• Presentation
• to Carillion

9th June 2010
The Equipment Rental Specialists
The Equipment Rental Specialists
29
Supplementary schedules
30
Robust balance sheet
31
Operating cash flow (before changes in working
capital)
32
Shareholder value
33
Effective rate of tax