Clarkson Plc · LSE:CKN
Clarkson — H1 2016 Earnings Presentation
24 slides from Clarkson's earnings presentation, Aug 15, 2016
Slide 1: Interim Results
Interim Results Clarkson PLC 30 June 2016
Slide 2: Agenda
Agenda Headline results Divisional performance The markets Outlook
Slide 3: Results Summary
Results Summary June 2016 June 2015 £m £m Revenue 147.2 145.3 Profit before taxation (Before exceptional items and acquisition related costs) 21.8 23.6 Exceptional items - (3.7) Acquisition related costs (4.3) (9.1) Profit before taxation (After exceptional items and acquisition related costs) 17.5
Slide 4: Revenue by half year
Revenue by half year £156.5m £145.3m £147.2m £6.1m £9.6m £6.7m £5.0m £126.2m £11.4m £8.3m £12.9m £5.7m £16.7m £111.7m £17.3m £14.5m £4.7m £3.6m £14.1m £5.1m Research £129.4m £115.5m £110.1m Support £102.4m £87.8m Financial Broking H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 Pre Platou Acquisition Incl 5
Slide 5: Divisional Performance - Profit
Divisional Performance - Profit 2016 2015 H1 H1 £m £m Broking 19.3 22.0 • • Freight rates / asset values impact on spot income Increase in Shipbroking volumes Financial 2.4 2.2 • • Weak investor confidence Notable successes Support 0.8 2.0 • • Weakness in North Sea oil and gas market Record export v
Slide 6: Acquisition Related Costs
Acquisition Related Costs 2016 2015 £m £m Cash & share-based payment charges 0.5 1.3 Loan note interest 0.6 0.4 Amortisation: Platou 3.2 4.4 Legal & professional fees - 3.0 4.3 9.1 15 August 2016 Interim results www.clarksons.com 6
Slide 7: Balance Sheet
Balance Sheet Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Jun 2016 £m £m £m £m £m £m Tangible fixed assets 9.2 8.8 9.4 8.4 33.1 33.0 Investments 1.9 1.9 1.8 1.9 1.9 1.9 11.1 10.7 11.2 10.3 35.0 34.9 Working capital (2.8) (2.8) 3.1 (1.8) (7.1) (8.6) Net funds 71.1 75.2 75.0 115.7 91.6 70.0 68.3 72.4
Slide 8: Intangible assets
Intangible assets Other intangible Goodwill Total Carrying value assets NOK/GBP £m £m £m At 1 January 2016 251.7 11.5 263.2 13.05 Amortisation charge - (3.2) (3.2) Foreign exchange retranslation 31.7 1.2 32.9 At 30 June 2016 283.4 9.5 292.9 11.19 15 August 2016 Interim results www.clarksons.com 8
Slide 9: Net Funds
Net Funds Jun 2016 Dec 2015 £m £m Cash and cash equivalents 106.3 168.4 Current investments 5.4 5.4 Net cash equivalents 111.7 173.8 Reserved for bonus (full cost) (41.7) (82.2) Net available funds 70.0 91.6 Loan notes outstanding (23.3) (46.1) Net available funds after Loan Notes 46.7 45.5 Reserved
Slide 10: Movement in Net Funds
Movement in Net Funds 21.5 (11.9) (1.0) (4.9) (0.5) (23.4) 91.6 (1.1) (0.3) (23.3) 70.0 46.7 Net Funds Profit Dividend Capex Tax paid Debtors / Loan note Pension Deferred Net Funds Loan note Net Available Dec 15 creditors payment consideration Jun 16 Jun 2017 Funds Jun 16 Before Loan Before Loan Not
Slide 11: Dividends Pence per Share
Dividends 65 60 55 50 Pence per Share 45 40 40 39 37 35 32 33 30 30 26 27 26 25 24 20 22 16 15 11 22 22 10 9 19 21 16 16 17 18 18 12 14 5 9 10 6 7 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Interim Final 15 August 2016 Interim results www.clarksons.com 11
Slide 12: The Macro Case
The Macro Case
Slide 13: ClarkSea Index
ClarkSea Index $’000/day Average Maximum Minimum 2016 Average 55 50 45 40 35 30 25 20 15 10 5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Average 12,236 13,396 11,284 9,883 16,877 15,315 10,678 19,122 30,975 27,562 24,618 33,057 32,657 1
Slide 14: World Seaborne Trade
World Seaborne Trade major dry bulk minor dry bulk crude oil oil products chemicals liquefied gas containers other dry cargo World Population 12 12 11 11 10 10 9 9 8 8 Billion tonnes Billion people 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Slide 15: Growing World Population
Growing World Population Impact on Energy, Food & Transportation China India Population Dynamics 2015-2020 Other Asia Pacific Middle East 9 North America Latin America & Caribs 200 14% Europe Africa Population Growth % Growth 180 12% 8 +1.1 bn people 12% 160 7 140 10% 6 Million people Billion people
Slide 16: World Population Growth
World Population Growth 2030 (Projected) 8.34 billion 2015 (Estimated) 7.26 billion 1990-2010 2010-2030 600 571 500 400 Million people 300 288 285 200 396 335 339 111 100 90 184 67 55 145 95 18 7 66 0 China India Other Asia Middle East Africa Europe North America Latin America & Existing Population
Slide 17: Fleet Deliveries & Orderbook
All Types* Fleet Deliveries & Orderbook 180 160 Other Ship Types Vessels above 20k dwt 140 Gas Carrier 120 Million dwt 100 Container Ship 80 60 Bulk Carrier 40 20 Tanker 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020- 22 Data Source: Clarksons 15 August 2016 Interim results www.c
Slide 18: Orderbook Non-Delivery Ratio
All Types Orderbook % Non-Delivery Ratio (Vessels 20,000 dwt+) Expected Deliveries as at the start of the year Reported Deliveries 3,000 36% 31% 29% 2,500 37% 37% 35% 2,000 No. of vessels 34% 16% 46% 1,500 2,625 2,595 2,360 1,000 2,103 2,005 1,788 1,814 1,685 1,676 1,586 1,337 1,324 1,271 1,287 1,12
Slide 19: Quarterly Demolition Volumes, 2008-2016ytd
Quarterly Demolition Volumes, 2008-2016ytd 15 August 2016 Interim results www.clarksons.com 19
Slide 20: Global Demolition Activity 2008-2016ytd
Global Demolition Activity 2008-2016ytd 15 August 2016 Interim results www.clarksons.com 20
Slide 21: Shipping Lending Overview (by Bank and Geography)
Shipping Lending Overview(by Bank and Geography) Geographical Breakdown of Lenders EUROPE 83.1% 79.3% 75.1% 72.9% 70.5% 62.3% USA 2.1% 1.7% 2.8% 2.7% 2.6% 2.1% ASIA-PAC 14.8% 19.0% 22.0% 24.4% 26.8% 35.6% 2010 2011 2012 2013 2014 2015 30 410 Aggregate Portfolios 400 (by year) 25 $403.7bn 390 $387.4.
Slide 22: Outlook
Outlook 15 August 2016 Interim results
Slide 23: Outlook summary
• Continued growth in seaborne trade • Recalibration underway • Short term may be bumpy • Capital Markets challenged, but strong market share 15 August 2016 Interim results www.clarksons.com 23
Slide 24: Disclaimer
Disclaimer THIS PRESENTATION IS CONFIDENTIAL AND IS SOLELY FOR THE USE OF THE RECIPIENT. NEITHER THE WHOLE NOR ANY PART OF THE INFORMATION CONTAINED IN THE PRESENTATION MAY BE DISCLOSED TO, OR USED OR RELIED UPON BY, ANY OTHER PERSON OR USED FOR ANY OTHER PURPOSE WITHOUT THE PRIOR WRITTEN CONSENT OF