Fih Group Plc · LSE:FIH
Fih — Falkland Islands Holdings — FY2013 Earnings Presentation
42 slides from Fih's earnings presentation, June 2013
Slide 1: Falkland Islands Holdings Results Year ended 31 March 2013
Click to edit Master title style FALKLAND ISLANDS HOLDINGS Results Year ended 31 March 2013 Positioned for growth
Slide 2: Strategic Overview
Strategic Overview FIC: Positioned for oil led growth in Falklands Momart: Building further momentum PHFC: Modernising the fleet FKL: Delivering superior growth over the next 5 years : EPS target :Average annual growth+10% 2 2
Slide 3: Trading Overview
FKL : Year ended 31 March 2013 Trading Overview • Revenue up by 4.4% to £35.6m (2012: £34.1m) — Momart : Strong growth – profits up 24% — FIC : Revenue investment – profits down £0.2m — PHFC – 9% decline in passenger numbers – profits down 10% • Operating profit £3.5m (2012: £3.6m) down ‐1.8% • Unde
Slide 4: FKL Group Trading profit & loss account
FKL : Year ended 31 March 2013 FKL Group Trading profit & loss account Overview Year ended 31 March 2013 2012 £000 £000 Change +/- Turnover – continuing operations 35,596 34,109 +4.4% Underlying operating profit 3,502 3,568 -1.8% Interest (net) incl. pensions costs (211) (334) -36.8% Underlying pre
Slide 5: FKL Group: Cash net & borrowings
FKLGroup FKL : Cashnet & borrowings Liquidity and liquidity 31 March 2013 31 March 2012 Change £000 £000 £000 Bank Loans (2,003) (2,987) 984 Pontoon Finance Lease (4,913) (4,938) 25 Hire Purchase & Other borrowings (372) (360) (12) Total borrowings (7,288) (8,285) 997 Cash 11,416 2,751 8,665 Net Cas
Slide 6: FIC: Preparing for First Oil
FIC : Preparing for First Oil 6
Slide 7: FIC: Trading - Year ended March 2013
FIC – Year ended 31 March 2012 FIC : Trading ‐ Year ended 31 March 2013 • Sales flat at £15.2million ( +1.6% ) • Falklands economy – exploration stimulus limited – Leiv Eiriksson rig departed December 2012 • Cruise ship visitors down 15% ‐ impact on disposable income • FIC profits £0.2m lower at £1.
Slide 8: FIC: Year ended March 2013
– FIC : Year ended 31 March 2013 Revenue 2013 2012 Change £ million £ million % Retail 9.73 9.45 +3.0% Falklands 4x4 1.87 1.57 +19.1% Freight and port services 1.65 2.01 ‐17.9% Support services 1.21 1.28 ‐5.5% Property and construction 0.76 0.67 +13.4% Total Revenue 15.22 14.98 +1.6% Operating profi
Slide 9: Falklands: Timeline for Oil
Timeline for Oil Falklands : Timeline for Oil Sea Lion Timeline 2014 2015 2016 2017 2018 Further Exploration 2 rigs 2 rigs Field Development Lay down & Spool areas Develop Develop Flow Line Assembly Build Assemble Assemble Sub sea network Drill & Construct FIRST OIL FPSO FPSO Infrastructure Temp Har
Slide 10: Falklands set for dramatic growth
Falklands set for dramatic growth Base Case: Premier Oil, Sea Lion Development only • Building: Infrastructure commencing late 2013 , field construction mid 2014 • Jobs: 400 plus new onshore jobs (+20%) from 2014 onwards for field development • Housing: 190 new units + temporary worker accommodation
Slide 11: FIC: Positioned for Growth
FIC: Positioned for Growth FIC: Positioned for Growth Key Falklands Data 2012 2018 2020 2022 Falklands Population ( excl MPA ) 2,471 2,811 2,771 2,771 Employed ‐ Base 1,575 1,575 1,575 1,575 Oil related Note 1 340 300 300 Total Employed 1,575 1,915 1,875 1,875 GDP ( £m ) £140 £1,000 £1,000 £800 FIG
Slide 12: Sea Lion Impact on Jobs
Sea Lion Impact on Jobs Sea Lion Impact on Jobs Projected Onshore Jobs Temp construction workers 100 Onshore O&G jobs 90 Private Services 90 Flow line Construction 50 Public Services 80 Port logistics & transport 70 Total at peak ( Sea Lion only ) 480 ( Source Regeneris esimates ) + 20% increase 12
Slide 13: FIC: Business Opportunities from Oil
FIC : Business Opportunities from Oil All specialist oil support services will be sourced externally largely from Aberdeen . Requirements : • Residential & Office accommodation — Further expansion of rental portfolio . — 26 x2 bed serviced apartments under construction . — Sites for modern HSE compl
Slide 14: FIC: Fitzroy Road Apartments
FIC: Fitzroy Road Apartments FIC: Fitzroy Road Apartments Site work commences July 2013 on 26 x 2 bed, serviced units with amenity blocks Site 1 14 14
Slide 15: FIC: Development sites in Stanley
FIC: Development sites in Stanley FIC: Development sites in Stanley Dairy Paddock 36 acre YPF site on Stanley site in central Stanley Harbour 2.25 acres Fairy Cove : 300 acre site next to Prestige site for offices Planning for workers camp and and high quality Prime 350 central site for houses Navy
Slide 16: FIC Construction
FIC Construction FIC Construction SATCO: South Atlantic Trading Falkland Building Services (FBS) Company • Large (+£1m) infrastructure contracts • House building (kit homes) smaller • 50:50 JV with Trant Construction projects and support for SATCO • Trant is a privately owned engineering & • Subsidi
Slide 17: New Deep Water Port
New Deep Water Port New Deep Water Port • Site of Deep Water Port now agreed by FIG • FIC owns 300 acres of land at Fairy Cove adjacent to port site • Road surveys now complete • Construction of road & port facilities could commence as early as late 2013 • Project cost c £100m incl. road • Scalable
Slide 18: FIC Strategy Summary
FIC Strategy Summary FIC Strategy Summary • Falkland Islands economy set for dramatic growth • FIC in a unique position with its platform of service businesses and freehold land for development • Key projects 2013 ‐14 £m • 26x 2 bed serviced apartments 3.0 • Falklands 4x4 0.3 • Builders Merchant & G
Slide 19: Momart: Building on its Reputation
Momart : Building on its Reputation 19
Slide 20: Momart: Overview
FIC – Year ended 31 Momart : Overview • Specialist Art Logistics company serving fine art market in the UK & overseas • Market leading position with reputation for quality ‐ high barriers to entry • 3 business streams : • Museum Exhibitions –planning, case making , packing, transport and installatio
Slide 21: Momart: Strong Momentum now Established
Momart : Building on its reputation Momart : Strong Momentum now Established Y/e 31 March 2011 2012 2013 Revenue 13,186 14,970 16,298 Operating Profit 532 964 1,193 Margin 4.0% 6.4% 7.3% Growth in Profit 81.2% 23.8% 21
Slide 22: Momart: Trading year ended March 2013
Momart: Trading year ended 31 March 2013 Revenues 2013 2012 Change £ million £ million % Museums & Public Exhibitions 9.01 7.05 +27.8% Gallery Services 5.50 6.30 ‐12.7% Storage 1.79 1.62 +10.5% Total 16.30 14.97 +8.9% Operating profit 1.19 0.96 +24.0% Operating profit margin 7.3% 6.4% +14.1% 22
Slide 23: Momart: Trading year ended March 2013
Momart: Trading year ended 31 March 2013 • Strong growth delivered record sales and profits • – Revenue up 9% to £16.3m ( 2012 £15.0m ) • – Profits up 24% to £1.2m ( 2012 £0.96m ) • Record Exhibitions revenues + 28% to £9.0m • Gallery Services – No bluebird contract as in prior year – Revenue £5.5m
Slide 24: Momart: Building on its reputation
Momart: Building on its reputation Continued strength of global art market provides positive backdrop – Art Prices 2007‐12 + 92%; since 2001 + 199% – Auction records continue –eg Christies’ New York – Modern & Contemporary May 2013‐ – $495m ( 70 units ) Art Museums expanding – Museum attendances Bri
Slide 25: Momart: Building on its reputation
mart: Building on its reputation Momart: Building on its reputation • Closer relationships with major auction houses • Technically demanding ,complex ,international exhibitions an increasing source of business • Working closely with high quality international partners • New offices and introduction
Slide 26: Portsmouth Harbour Ferry Company Overview
Portsmouth Portsmouth Harbour Harbour Ferry Company Ferry Company (PHFC) Overview Overview • Ferry service for foot, cycle & motor cycle passengers • Operating since 1874 • Acquired by FIH in Dec. 2004 ‐ £7.5m • 5 minute journey across mouth of harbour from Gosport to Portsmouth (1/3 mile) • Return
Slide 27: PHFC: Trading year ended March 2013
PHFC PHFC: ‐Trading year 31 Year ended ended 312013 March March 2013 Revenues 2013 2012 Change £ million £ million % Ferry fares 3.89 3.97 ‐2.0% Other revenue 0.19 0.19 ‐ Total 4.08 4.16 ‐1.9% Operating Profit 0.98 1.09 ‐10.1% Operating profit margin (%) 24.0% 26.2% ‐8.4% Passenger journeys (000s) 3
Slide 28: PHFC: Trading year ended March 2013
PHFC P : Trading year ended 31 March 2013 • Passenger journeys down 8.8% to c.3.0 million ( 2012 – 2.1% ) • Affected by change in MoD expenses policy • Fares increased 3‐4 % following large rises(17.5%) in prior year to fund pontoon rent — Adult Return fares £2.70 > £2.80, Child / OAP unchanged at £
Slide 29: FOGL Licences: Location Map
FO FOGL Licences: Location Map 29
Slide 30: Falkland Oil and Gas (FOGL)
Falkland Oil and Gas (FOGL) • FKL owns 12.8m FOGL shares (4.0%) ‐1FOGL share for each FIH share in issue • Book cost 20p per share • FOGL Interest Northern licences 40% :Southern 52.5% • Partners : Noble Energy ( Mkt cap c $20bn) Edison International (Mkt cap EDF c $40bn ) • 6,200 sq km 3D seismic p
Slide 31: FKL: Strategy
FKL: Strategy FKL: Strategy • FIC : Leverage property assets and support services to maximise long term returns • Momart : Expand storage capacity and exploit international opportunities • PHFC : Modernise fleet • FOGL : Maintain shareholding through next drilling campaign • Group :Maintain progress
Slide 32: Appendices
Appendices Additional Information on Falkland Islands Holdings
Slide 33: Divisional Analysis by company
FKLFKL : Year ended 31 March 2013 Divisional Analysis by company 2013 2012 Change Year ended 31 March £000 £000 +/- FIC 15,222 14,979 +1.6% PHFC 4,076 4,160 -2.0% Momart 16,298 14,970 +8.9% Turnover - continuing operations 35,596 34,109 +4.4% FIC 1,325 1,510 -12.3% PHFC 984 1,094 -10.1% Momart 1,193
Slide 34: FKL Group: Balance sheet
FKLFKL Group balance : Balance sheet Sheet 31 March 2013 31 March 2012 Change £000 £000 £000 Property, plant and equipment 13,725 12,911 814 Investment properties 2,786 1,452 1,334 Intangibles & goodwill 12,315 12,713 (398) Deferred tax assets & sundry other 862 763 99 Investment in FOGL at market v
Slide 35: FKL Group: Cash flow
FKL FKL : Cash Group cashFlow flow Year ended 31 March 2013 2012 £000 £000 Underlying operating profit 3,502 3,568 Depreciation 1,204 1,069 Tax paid (735) (862) Decrease / (Increase) in working capital (529) 831 Other 25 0 Net cash flow from operating activities 3,467 4,606 Capital expenditure (2,41
Slide 36: Sea Lion Development Plan
Plan SeaLion Development Plan • July 2012 Premier Oil acquired 60% interest from Rockhopper Exploration • Consideration was cash $231m + $770m carry • 300mm bbls net discovered 2C resources • $3bn spend to first oil in Q3 2017 • ( FPSO leased ) • 22 producing wells +13 injectors • Insulated flow lin
Slide 37: FIC: Sites for development
FIC: Sites for development FIC: Sites for development Site Location & size Development Potential 1 Fitzroy Road 2 acres , Central Stanley 26 x 2 bed apartments . Work starts July 2013 2 Dairy Paddock Western Stanley 36 acres Planning for 350 houses / Work camp 3 YPF site Central Stanley, 2.25 acres
Slide 38: Map of FIC Development Sites
Map of FIC Development Sites Map of FIC Development Sites 38
Slide 39: Map of FIC Development Sites
Map of FIC Development Sites Map of FIC Development Sites 39
Slide 40: FKL - 8 Year Track Record
FKL – 8 Year Track Record EPS Growth 2006- 2013 Growth in Turnover 2006 -2013 40,000 30.0 26.3 34,109 35,596 35,000 32,251 31,841 25.0 Cagr 8.8% 22.0 21.6 29,224 22.0 30,000 Cagr 13.0% 19.0 20.0 17.1 25,000 12.0 15.0 9.0 20,000 15,209 15,618 17,200 15,000 10.0 10,000 5.0 5,000 0.0 0 2006 2007 2008 2
Slide 41: Management Team
Management Team Management Team David Hudd, Chairman David joined the Board in March 2002. He is a Chartered Accountant and was a partner in Price Waterhouse until 1982. Since then, he has been Chairman or Chief Executive of a number of listed companies.. He is currently also non‐executive Director
Slide 42: ) Fe lle a
) Fe lle a os ands Holdings
Falkland Islands Holdings — FY2013 Earnings Presentation on 6ix