Delivering customer service and support - HSS …

1 Delivering customer service and supportHSS Hire Group plcAnnual report 2015(1) Source: European Rental Association, Equipment rental Industry report 2015.;OPZ 9 LWVY[ JVU[HPUZ JLY[HPU MVY^HYK SVVRPUN Z[H[LTLU[Z ^P[O YLZWLJ[ [V [OL VWLYH[PVUZ Z[YH[LN` WLYMVYTHUJL UHUJPHS JVUKP[PVU HUK NYV^[O VWWVY[\UP[PLZ VM [OL .YV\W By their nature, these statements involve uncertainty and are based on assumptions and involve risks, uncertainties and other factors that could cause actual results and KL]LSVWTLU[Z [V KP LY TH[LYPHSS` MYVT [OVZL HU[PJPWH[LK ;OL MVY^HYK SVVRPUN Z[H[LTLU[Z YL LJ[ RUV^SLKNL HUK PUMVYTH[PVU H]HPSHISL H[ [OL KH[L VM WYLWHYH[PVU VM [OPZ 9 LWVY[ and, other than in accordance with its legal and regulator y obligations, HSS under takes no obligation to update these for ward-looking statements.]]]]]]]]]]]]]]]]]]]]]]]]]]]]] ]]]]

2 Nothing in this report should IL JVUZ[Y\LK HZ H WYV [ MVYLJHZ[ Our focusOur marketOur investment caseOur businessCoreThe HSS Hire Group is a leader in the equipment hire market supporting major businesses, contractors, trades and consumers across the UK and Ireland. Our focus is on the less capital-intensive and non-cyclical [ V\[ THPU[HPU HUK VWLYH[L THYRL[ ZLNTLU[Z HS[OV\NO our Specialist businesses and rehire operation also service the construction sector. It is estimated that the market for equipment rental will grow by an average of a year over [OL UL_[ [^V `LHYZ >L HYL ^LSS WVZP[PVULK [V ILUL [ MYVT that growth and intend to continue our outperformance of the have a strong presence in the market, with a well-established brand and evolving retail-like distribution model, TLHUPUN [OH[ ^L HYL HISL [V TLL[ KLTHUK L LJ[P]LS` HUK TH_PTPZL [OL YL[\YU VU V\Y HZZL[Z [OYV\NO [OL L LJ[P]L deployment of our capital focus is on what matters most to our customers.]]]]]]]]]]]]]]]]]]]]]]]]]

3 SafetyValueAvailabilitySupportWe have nine main branded businesses, each presenting a distinct brand proposition to the operate in the UK tool and equipment hire market, the total turnover for which was estimated to be in 2015(1).UK equipment rental companies provide customers with a wide variety of items ranging from larger equipment ( plant hire ), to smaller equipment ( tools and equipment hire ) and specialist equipment. The primary customers for equipment rental companies include construction contractors, utilities and facilities management operators, government entities, retailers, infrastructure developers and Hire Group plc Our Marketplace 04 Specialist Our Business at a Glance 02 Other InformationKey highlights 2015 Our added valueOur strategic prioritiesRevenue + EBITA ( )Core utilisation (LTM)48% +1p pAdjusted EBITDA ( )Adjusted ( )Specialist utilisation (LTM)76% +6pp1.

4 Optimise the distribution and branch Win new, and deepen existing, customer Continued development and growth of our specialist businesses. Our Strategy in Action 15We create value through maximising the utilisation of capital equipment by ensuring its availability through our unique distribution ensure it is maintained, safe and ready to build long-term relationships with customers.>L WYV]PKL HKKLK ]HS\L ZWLJPHSPZLK ZLY]PJLZ PU ZWLJP J market areas. Our Business Model 08 HSS Hire Group plc Annual report 201501 Our BusinessOur PerformanceGovernanceOur ResponsibilitiesFinancial Information Our Financial Review 22 Strategic ReportOur Business02 Our Business at a Glance04 Our Marketplace06 Chairman s Statement08 Our Business Model10 Our Unique Distribution Network12 *OPLM ,_LJ\[P]L 6 JLY Z 9L]

5 PL^15 Our Strategy in ActionOur Performance22 Financial Review26 Our Key Performance IndicatorsOur Responsibilities28 Principal Risks and Uncertainties32 Corporate ResponsibilityDirectors ReportGovernance38 Chairman s Introduction40 Board of Directors42 Corporate Governance48 Audit Committee Report50 Nomination Committee Report51 Market Disclosure Committee Report52 Directors Remuneration Report69 Other statutory disclosures72 Directors Responsibility StatementFinancial Information73 Independent Auditor s Report76 Consolidated Income Statement77 Consolidated Statement of Comprehensive Income78 Consolidated Statement of Financial Position79 Consolidated Statement of Changes in Equity80 Consolidated Statement of Cash Flows81 Notes to the Consolidated Financial Statements107 Company Statement of Financial Position108 Company Statement of Changes in Equity109 Company Statement of Cash Flows110 Company Notes to the Financial StatementsOther Information113 Shareholder Information114 Company Information115 +L UP[PVUZ HUK.]

6 SVZZHY`Other InformationHSS Hire Group plc Annual report 201502 Our Business at a GlanceOur business focuses on supplying equipment HUK ZLY]PJLZ [V [OL [ V\[ THPU[HPU HUK operate sectors of the market, with our specialist businesses also supplying construction contractors. Over 90% of our revenue comes from B2B clients. ;OL .YV\W JH[LYZ [V H SVUN Z[HUKPUN HUK KP]LYZP LK customer base ranging from retailers and airports to facilities management companies and infrastructure developers, serving them anytime, anywhere . We segment our operations into Core businesses and Specialist s customer needs and requirementswhich we believe will enable us tocontinue growing the business and create shareholder valueinform our Strategic valueswhich underpin the achievement of our Strategic prioritieswhich sit at the heart of our Strategic enablersSafetyOptimise the distribution and branch networkEnsure safe, sustainable working environments for colleagues and customers Deliver value and quality to our customers -VJ\Z VU WYV [HIPSP[` HUK NYV^[O+YP]L H]]]]]]]]

7 HPSHIPSP[` HUK VWLYH[PVUHS L JPLUJ`Invest in our colleaguesValueWin new, and deepen existing, customer relationshipsAvailabilityContinued development and growth of our Specialist businessesSupport41 Specialist locations252training locations21national distribution centre9regional distribution centres288trading locations27local distribution centres Our Strategy in Action 15 Our Unique Distribution Network 10123(1) As at 26 December 2015.(2) Some of which are co-located with other HSS core or specialist network(1)Our customer -led strategyHSS Hire Group plc Annual report 201503 Our BusinessOur PerformanceGovernanceOur ResponsibilitiesFinancial InformationOther InformationProvides an extensive range of tools and equipment for hire across over 1,600 product [V J\Z[VTLYZ ZWLJP J ULLKZ MVY LX\PWTLU[ UV[ [`WPJHSS` WHY[ VM V\Y JVYL V LYPUN ^VYRPUN ^P[O H UL[^VYR VM TVYL [OHU 450 suppliers to source over 2,000 equipment ]]]]]]]]]]]

8 PKLZ [YHPUPUN [V TLL[ [OL YLX\PYLTLU[Z VM J\Z[VTLYZ 6 LYZ 261 industry-recognised technical and safety courses at either customer sites or one of 52 HSS training venues throughout the UK and specialist provider of powered access equipment operating across [OL <2 HUK V LYPUN ZHML[` HZ Z[HUKHYK [OYV\NO [OL HKKP[PVU VM P[Z award-winning anti-entrapment device Activ Shield Bar. The Group is the second largest provider of powered access equipment in the UK. The range is provided under the HSS Powered Access brand in Ireland.<UKLY [OL 9 LPU[LJ HUK ;LJ:LY] IYHUKZ [OL .YV\W V LYZ LX\PWTLU[ management solutions to the contract cleaning market, providing the ILUL [Z of management, maintenance, compliance and JVZ[ L JPLUJ` 262m84% of revenue 51m16% of revenueWe believe the Group is now the second largest provider of temporary power generation and distribution equipment and services PU [OL <2 ^P[O H ^LSS PU]LZ[LK LL[ VM 9 LTV[L -SLL[ 4 HUHNLTLU[ :THY[ Equipment generators operating under the ABird brand in England and Wales, Apex in Scotland and HSS Power in of the UK s leading HVAC companies.]]]]]]]]]]]]]]]]]]]]]]]]]

9 ;OL I\ZPULZZ V LYZ a wide range of specialist, frequently complex, boilers, chillers and air-conditioning units to multiple sectors including facilities and property management, construction, datacentres and Promoter Score All HSS customers in the UKSource: TNS Our Financial Review 22 customer satisfactionCore businessesSpecialist businessesCustomer propositionRevenueRevenueCustomer proposition403020100 Survey 1 Feb/Mar2015 Survey 2 May/Jun2015 Survey 3 Jul/Aug2015 Survey 4 Nov/Dec201536 TNS UK Benchmark Top third12 TNS UK Benchmark 24333536 HSS Hire Group plc Annual report 201504 Our MarketplaceWe operate in the UK tool and equipment hire market, the total turnover for which was estimated to be in 2015(1).

10 UK equipment rental companies provide customers with a wide variety of items ranging from larger construction equipment ( plant hire ), to smaller equipment ( tools and equipment hire ) and specialist equipment. The primary customers for equipment rental companies include construction contractors, utilities and facilities management companies, government entities, retailers, infrastructure developers and customers (residential, non-residential and infrastructure) are estimated to account for of UK equipment hire market non-construction portion of the market largely constitutes the service and industrial UK equipment hire market is highly fragmented, with a large number of small operators servicing trades, and larger compani