Fih Group Plc · LSE:FIH
Fih — Falkland Islands Holdings — FY2012 Earnings Presentation
30 slides from Fih's earnings presentation, June 2012
Slide 1: Falkland Islands Holdings plc – Results Year ended 31 March 2012
David Hudd – Chairman John Foster - Managing Director Falkland Islands Holdings plc – Results Year ended 31 March 2012
Slide 2: FKL 2011-12 Results Overview
Falkland Islands Holdings Plc : FKL 2011-12 Results Overview UK Falkland Islands • Pontoon • Underlying Portsmouth Harbour Ferry successfully The Falkland Islands Company profits similar installed June to prior year. 2011 • Contribution • Contribution £1.5m increased to £1.1m • Strong • 2m shares bo
Slide 3: Highlights year ended 31 March 2012
FKL : Highlights year ended 31 March 2012 • Good Results — Record revenue & profits — Strong cash flow — Minimal bank debt — Final dividend increased by 27% to 7p per share, 11p for year (2011 9.5p) • FIC – PBIT (ex property) similar to prior year @ £1.5m. Management team strengthened • PHFC - Ponto
Slide 4: Financial highlights for year ended 31 March 2012
FKL - Financial highlights for year ended 31 March 2012 • Revenue ahead by 7.1% to £34.1m (2011: £31.8m) — Good trading from all 3 companies / Recovery at Momart +81% • Operating profit £3.56m (2011: £2.93m) +21.8% • Underlying pre tax profits +18.3% to a record £3.23m (2011: £2.73m) • Earnings per
Slide 5: FKL Group profit & loss account
FKL Group profit & loss account Year ended 31 March 2012 2011 £000 £000 Change +/- Turnover – continuing operations 34,109 31,841 +7.1% Underlying operating profit 3,568 2,935 +21.8% Interest (net) incl. pensions costs (334) (207) +61.4% Underlying pre tax profit 3,234 2,728 +18.5% Amortisation of I
Slide 6: FKL revenue and operating profit split
FKL revenue and operating profit split Revenue 2012 Revenue 2011 Momart Momart Falklands Falklands 44% 41% 47% 44% Ferry Ferry 12% 12% Operating profit 2012 Operating Profit 2011 Momart Momart 27% 18% Falklands 42% Falklands Ferry Ferry 55% 31% 27% 6
Slide 7: FKL Group - Revenue and profits by company
FKL Group - Revenue and profits by company Year ended 31 March 2012 2011 Change £000 £000 +/- Falklands 14,979 14,921 +0.4% PHFC 4,160 3,734 +11.4% Momart International 14,970 13,186 +13.5% Turnover - continuing operations 34,109 31,841 7.1% Falklands 1,510 1,613 -6.4% PHFC 1,094 790 +38.5% Momart I
Slide 8: Falkland Islands Company (FIC)
Falkland Islands Company ( FIC ) Fishing supply Aerial view of Stanley harbour vessel in Stanley harbour CBF South Atlantic at opening of West Store MPA Nov 2011 Aerial view of Stanley. Green roofs =FIC 8
Slide 9: FIC – Year ended 31 March 2012
FIC – Year ended 31 March 2012 Revenue 2012 2011 Change £ million £ million % Retail 9.45 9.72 -2.8% Motor 1.57 1.91 -18.1% Support services 2.61 2.14 +22.0% Freight 1.10 0.69 +62.6% Property sales 0.23 0.45 -50.1% Total Revenue 14.98 14.92 +0.4% Operating profit 1.51 1.61 -6.4% Operating profit mar
Slide 10: FIC – Year ended 31 March 2012 commentary
FIC – Year ended 31 March 2012 • Retail sales down 2.8% at £9.45m ( 2011 £9.72m ) after 20% rise in prior year — Squeeze on household budgets – inflation 8% — Limited stimulus from oil exploration – Leiv Eirikson rig more self sufficient — Cruise ship passenger visits down 10% • Motor : Lower milita
Slide 11: Portsmouth Harbour Ferry Company (PHFC)
Portsmouth Harbour Ferry Company (PHFC) 17 miles by road 500 yds New Gosport pontoon by ferry from Gosport shore Spirit of Gosport approaches New pontoon from harbour 11
Slide 12: PHFC - Year ended 31 March 2012
PHFC - Year ended 31 March 2012 Revenues 2012 2011 Change £ million £ million % Ferry fares 3.97 3.59 10.6% Other revenue 0.19 0.14 35.7% Total 4.16 3.73 11.5% Operating Profit 1.09 0.79 38.0% Operating profit margin (%) 26.2% 21.2% 23.6% Passenger journeys (000s) 3,328 3,400 -2.1% 12
Slide 13: PHFC - Year ended 31 March 2012 commentary
PHFC - Year ended 31 March 2012 • New pontoon successfully installed 27 June 2011 – 50 Year extendable lease • Pontoon Finance ( fixed ) interest & rental £0.3m pa + deprec. £0.1m pa • Fares increased 17.5% to compensate for increased pontoon costs — Adult Return fares £2.40 > £2.70, Child / OAP £1.
Slide 14: Momart
Momart Year ended 31 March 2012 14
Slide 15: Momart – Year ended 31 March 2012
Momart – Year ended 31 March 2012 Revenues 2012 2011 Change £ million £ million % Museums & Public Exhibitions 7.05 6.67 5.7% Gallery Services 6.30 5.00 26.0% Storage 1.62 1.52 6.6% Total 14.97 13.19 13.5% Operating profit 0.96 0.53 81.1% Operating profit margin 6.4% 4.0% 60.0% 15
Slide 16: Momart - Year ended 31 March 2012 commentary
Momart - Year ended 31 March 2012 • Strong recovery – Revenue +13.5% to £15.0m ( 2011 £13.2m ) — Exhibitions +5.7% to £7.1million — Gallery Services + 26% to record £6.3m ( 2011 £5.0m ) — Storage +6.6% to £1.6million • Buoyant worldwide demand for commercial art • Storage facilities at capacity • La
Slide 17: FKL Group balance sheet
FKL Group balance sheet 31 March 2012 31 March 2011 Change £000 £000 £000 Property, plant and equipment 12,911 7,489 5,422 Investment properties 1,452 1,721 (269) Intangibles & goodwill 12,713 13,111 (398) Deferred tax assets & sundry other 763 634 129 Investment in FOGL at market value @ 64.5p (201
Slide 18: FKL Group cash flow
FKL Group cash flow Year ended 31 March 2012 2011 £000 £000 Underlying operating profit 3,568 2,935 Depreciation 1,069 846 Share based payments 101 207 Tax paid (862) (1,008) Decrease / (Increase) in working capital 831 (2,145) Other (101) (18) Net cash flow from operating activities 4,606 817 Capit
Slide 19: FKL Group net borrowings and liquidity
FKL Group net borrowings and liquidity 31 March 2012 31 March 2011 Change £000 £000 £000 Bank loans due within 1 year (1,000) (1,000) Bank loans due after I year (1,987) (2,971) 984 Total Bank Loans (2,987) (3,971) 984 Pontoon Finance Lease (4,938) - (4,938) Hire Purchase & Other borrowings (360) (1
Slide 20: Investment in Falkland Oil & Gas (FOGL)
Investment in Falkland Oil & Gas ( FOGL) • FKL holds 14m shares in FOGL • Market value 31 March 2012 - £9.0m @64.5p • Book cost 20p per share • Shares held in Falklands – no CGT • FKL holding represents 4.4% of FOGL issued share capital of 320m shares • No restriction on sale • Potential read across
Slide 21: FOGL Licences - Location Map
FOGL Licences - Location Map Stebbing
Slide 22: FOGL Drilling programme
FOGL Drilling programme • FOGL is planning a 2 well programme commencing in early July 2012 • First well on Loligo, identity of 2nd well dependent on results First well Second well options Successful Either 2nd well on Loligo result Loligo Or 4700 mmbbls Disappointing Nimrod result 1500 mmbbls Scoti
Slide 23: 1st well - Loligo – 4.7 billion boe resource potential
1st well - Loligo – 4.7 billion boe resource potential Tertiary Channel Play Loligo NW 3000m Loligo Squid 23
Slide 24: 2nd well - Scotia – 1.1 billion bbl resource potential
2nd well - Scotia – 1.1 billion bbl resource potential • Hersilia, Hero and Scotia are 3 large prospects in the Mid Cretaceous fan play and are part of the Hersilia fan complex • Scotia has estimated mean prospective resources of 1.1 billion barrels (same play type as Jubilee, Ghana & Zaedyus, Frenc
Slide 25: FOGL - Expected timetable
FOGL - Expected timetable 31 Jan 2012 Darwin spudded Leiv Eiriksson: FOGL has two rig slots Q1 2012 Q2 2012 Q3 2012 Q4 2012 - 2013 Q1/Q2 2012 July 2012 August 2012 Forward plan B&S to drill FOGL to commence FOGL to commence Acquire new seismic in Q4 Darwin & drilling of the Loligo drilling
Slide 26: Impact of oil in Falklands - Background
Impact of oil in Falklands - Background • Rockhopper Sea Lion field now confirmed as commercial – awaits partner • First oil could be in 2016 • Any further discovery incremental to prospects • Transformational impact on Falklands economy and FIG finances expected • Infrastructure spending expected t
Slide 27: FKL Opportunities
FKL Opportunities • Leverage existing property assets – 70acres in Stanley + 600acres in “Greater Stanley” • ( FIC Investment Properties & Land valued at £3.9m representing +£2.4m surplus to book value ) • Develop land for oil support services (warehouses & offices) • Provide residential accommodati
Slide 28: FKL - Outlook
FKL - Outlook FIC • Departure of rig in Q4 2012 will reduce demand but seismic activity could compensate • Investment in strengthening management team • JV’s with UK and local partners being progressed • Various options being pursued to deliver first mover advantage in developments in the Islands PH
Slide 29: FKL – 8 Year Track Record
FKL – 8 Year Track Record Growth in Underlying Pre Tax Profit ( PBTae ) Growth in Turnover 2005 -2012 3,500 3,234 40,000 34,109 35,000 32,251 31,841 3,000 2,688 2,728 Cagr 18.7% 29,224 30,000 2,500 2,316 2,010 25,000 2,000 1,654 20,000 17,200 1,490 15,209 15,618 1,500 15,000 12,206 972 1,000 10,000
Slide 30: Falkland Islands Holdings plc – June 2012
Falkland Islands Holdings plc – June 2012
Falkland Islands Holdings — FY2012 Earnings Presentation on 6ix