Clarkson Plc · LSE:CKN
Clarkson — FY2013 Earnings Presentation
43 slides from Clarkson's earnings presentation, Mar 10, 2014
Slide 1: Final Results 31 December 2013
Final Results 31 December 2013 Clarkson PLC 10 March 2014 www.clarksons.com
Slide 2: Agenda
Agenda Headline results Divisional performance Business Model & Strategy The market Outlook 10 March 2014 Final Results www.clarksons.com 2
Slide 3: Results Summary
Results Summary 2013 2012 Change £m £m % Revenue 198.0 176.2 +12% Profit before taxation (Before exceptional item and acquisition costs) 25.1 20.0 +26% Exceptional item (1.0) 4.5) Acquisition costs (2.1) (1.6) Profit before taxation (After exceptional item and acquisition costs) 22.0 22.9 Earnings p
Slide 4: Revenue by half year
Revenue by half year £110.6m Research, £5.1m £90.7m £89.8m Support, £10.9m £89.6m Financial, £7.7m Research, £4.6m Research, £4.6m Research, £4.6m Support, £9.1m Support, £8.8m Support, £10.1m Financial, £2.7m Financial, £3.9m Financial, £2.6m Broking, £86.9m Broking, £73.2m Broking, £72.5m Broking,
Slide 5: Revenue
Revenue £201.3m £9.7m £179.4m £19.7m Research +£0.5m or 5.4% £9.2m £11.6m £19.2m Support +£0.5m or 2.6% £5.3m Financial +£6.3m or 118.9% Broking +£14.4m or 10.0% £160.3m £145.7m 2012 2013 10 March 2014 Final Results www.clarksons.com 5
Slide 6: Divisional performance - Result
Divisional performance - Result 2012 H1 2012 H2 2013 H1 2013 H2 £m £m £m £m Broking 12.7 12.5 12.4 15.1 Financial (4.8) (5.1) (2.8) (0.5) Support 2.1 2.1 1.6 1.5 Research 1.4 1.4 1.3 1.7 10 March 2014 Final Results www.clarksons.com 6
Slide 7: Net Funds
Net Funds Dec 2013 Dec 2012 £m £m Cash and cash equivalents 96.9 89.4 Current investments 25.2 25.2 Reserved for bonus (full cost) (47.1) (39.4) Net cash 75.0 75.2 Borrowings - - Net available funds 75.0 75.2 Reserved for dividend (7.0) (6.2) 10 March 2014 Final Results www.clarksons.com 7
Slide 8: Movement in Net Funds
Movement in Net Funds 75.2 -9.6 24.9 75.0 -4.7 -2.2 -1.6 -3.6 -3.4 Net Funds Dec 12 Dividend Taxation Pension Capex Debtors / Acquisitions (net) Profit Net Funds Dec 13 Creditors 10 March 2014 Final Results www.clarksons.com 8
Slide 9: Balance Sheet
Balance Sheet 2007 2008 2009 2010 2011 2012 2013 £m £m £m £m £m £m £m Fixed Assets 25.4 29.1 27.4 21.6 21.3 23.5 21.9 Intangibles 47.2 32.3 32.5 32.7 40.3 39.8 40.2 72.6 61.4 59.9 54.3 61.6 63.3 62.1 Investments 16.4 16.1 14.9 13.2 1.9 1.9 1.8 Working Capital (25.8) (22.0) (9.3) (12.8) (4.7) (5.0) 0
Slide 10: Dividends Pence per Share
Dividends 55 50 45 Pence per Share 40 37 35 32 33 30 30 26 27 26 25 24 20 22 16 15 11 10 9 19 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 Interim Final 10 March 2014 Final Results www.clarksons.com 10
Slide 11: Forward Order Book
Forward Order Book (for invoicing in the following year) 2013* 2012* US$m US$m Total FOB 100 81 *Best estimates of deliverable FOB 10 March 2014 Final Results www.clarksons.com 11
Slide 12: Business Model
Business Model 10 March 2014 www.clarksons.com
Slide 13: 10 March 2014 Final Results www.clarksons.com
10 March 2014 Final Results www.clarksons.com 13
Slide 14: 10 March 2014 Final Results www.clarksons.com
10 March 2014 Final Results www.clarksons.com 14
Slide 15: Offshore and Shipping
Offshore Shipping 25,000 structures, vessels Over 114,000 vessels and companies 10,000 companies 6,000 oil and gas fields. 600 shipyards Valuations Freight More than 20,000 Over 100,000 time series valuations annually, Track 10bn tonnes of Shipping and Offshore seaborne trade Ove
Slide 16: 10 March 2014 Final Results www.clarksons.com
10 March 2014 Final Results www.clarksons.com 16
Slide 17: Shipping broking sectors
Tankers LPG & Ammonia Newbuildings Dry Cargo Secondhand Petchem Gases Demolition Containers Specialised Products LNG 10 March 2014 Final Results www.clarksons.com 17
Slide 18: 10 March 2014 Final Results www.clarksons.com
10 March 2014 Final Results www.clarksons.com 18
Slide 19: Offshore broking sectors
PSV OSV Newbuildings AHTS Secondhand FPSO Rigs Demolition Jackups Subsea 10 March 2014 Final Results www.clarksons.com 19
Slide 20: Provision of Capital
Provision of Capital 10 March 2014 Final Results www.clarksons.com 20
Slide 21: Provision of Capital
Provision of Capital Private Equity IPO & Public markets Research Shipping, Oil Services, Coal & Mining, E&P, MLPs 113 listed stocks covered Sales & Trading over 130 clients M&A Restructuring Debt finance 10 March 2014 Final Results www.clarksons.com 21
Slide 22: Risk Management
Risk Management 10 March 2014 Final Results www.clarksons.com 22
Slide 23: Risk Management
Risk Management Freight Forward Agreements (FFAs) LPG Swaps Iron Ore Swaps 10 March 2014 Final Results www.clarksons.com 23
Slide 24: 10 March 2014 Final Results www.clarksons.com
10 March 2014 Final Results www.clarksons.com 24
Slide 25: Support: Agency, Project logistics, Forwarding
Lerwick Aberdeen Leith Newcastle Hull Liverpool Great Yarmouth Ipswich Harwich Avonmouth Tilbury Southampton Agency Project logistics Forwarding Stevedoring Supplies Tools 10 March 2014 Final Results www.clarksons.com 25
Slide 26: 10 March 2014 Final Results www.clarksons.com
10 March 2014 Final Results www.clarksons.com 26
Slide 27: The heart of global shipping…
The heart of global shipping… 10 March 2014 Final Results www.clarksons.com 27
Slide 28: Enabling global trade
The heart of global shipping… Enabling global trade 10 March 2014 Final Results www.clarksons.com 28
Slide 29: The Markets
The Markets 10 March 2014 Final Results www.clarksons.com 29
Slide 30: ClarkSea Index
ClarkSea Index 55,000 50,000 45,000 40,000 35,000 US$ per day 30,000 25,000 20,000 15,000 10,000 5,000 0 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Source: Clarksons 10 March 2014 Final Results www.clarksons.com 30
Slide 31: ClarkSea Index
ClarkSea Index 55.0 50.0 45.0 Average Maximum Minimum 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Average 13,568 13,315 9,786 11,081 11,883 13,800 12,256 13,424 11,336 9,840 16,848 15
Slide 32: VLCC Spot Earnings
$ per day 0 10,000 20,000 30,000 40,000 50,000 60,000 10 March 2014 Jan-12 Feb-12 Mar-12 Apr-12 Final Results May-12 Data Source: Clarksons Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 VLCC Spot Earnings Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 VLCC c. 2010blt Ras Tanura - Chiba Jun-13 Jul-13 Aug-13 S
Slide 33: Capesize Spot Earnings
Capesize Spot Earnings Capesize, 1999/00-blt, Average Spot Earnings 45,000 40,000 35,000 30,000 $ per day 25,000 20,000 15,000 10,000 5,000 0 Apr-12 Nov-13 Jul-12 Nov-12 Apr-13 Jul-13 Sep-12 Oct-12 Sep-13 Oct-13 Jan-12 Dec-12 Jan-13 Dec-13 Jan-14 May-12 May-13 Feb-12 Mar-12 Jun-12 Aug-12 Feb-13 Mar-
Slide 34: Containership Charter Rates
Containership Charter Rates $000/day 14 1700 teu gls 1-Yr TC 12 3500 teu gls 1-Yr TC 4400 teu gls 1 Yr TC 10 8 6 4 2 0 Jul-12 Nov-12 Jul-13 Nov-13 Apr-12 Apr-13 Sep-12 Oct-12 Sep-13 Oct-13 Jan-12 Dec-12 Jan-13 Dec-13 Jan-14 May-12 May-13 Feb-12 Mar-12 Jun-12 Aug-12 Feb-13 Mar-13 Jun-13 Aug-13 Feb-14
Slide 35: LPG Spot Earnings
$ per tonne 10 20 40 50 70 80 30 60 90 0 Jan-12 10 March 2014 Feb-12 Mar-12 Apr-12 May-12 Data Source: Clarksons Final Results Jun-12 Jul-12 Aug-12 Sep-12 LPG Spot Earnings Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 43,000 mt Gulf-Japan LPG Rates Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-1
Slide 36: Regional Spot Chemical Freight Developments
Regional Spot Chemical Freight Developments Rotterdam Far East U.S Gulf Far East Rott - MPFE 3,000mt Rott - MPFE 5,000mt Hou - MPFE 5,000mt Hou - MPFE 10,000mt 140 110 130 100 120 90 110 USD pmt USD pmt 80 100 70 90 60 80 70 50 60 40 Jul-12 Nov-12 Jul-13 Nov-13 Jul-12 Nov-12 Jul-13 Nov-13 Sep-12
Slide 37: World Seaborne Trade
World Seaborne Trade major dry bulk minor dry bulk crude oil oil products liquefied gas containers other dry cargo World Population 10 7.5 9 8 6.0 7 Billion tonnes Billion people 6 4.5 5 4 3.0 3 2 1.5 1 0 0.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2
Slide 38: Fleet Deliveries & Orderbook
Fleet Deliveries & Orderbook 2,500 gas carrier 2,000 container ship No. of vessels 1,500 1,000 bulk carrier 500 tanker 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Data Source: Clarksons 7 March 2014 Final Results www.clarksons.com 38
Slide 39: Demolition Trends 2000 – 2013
Demolition Trends 2000 – 2013 Demolition – Vessels above 1,000 GT (Number & Dwt) No. m.Dwt 1600 80 Bars show the number of Line shows the annual volume of vessels demolished (LHS) dwt demolished (RHS) 1400 1,366 70 1200 1,168 60 1,110 1,083 1000 930 50 800 40 600 591 572 600 542 30 431 400 313 20 26
Slide 40: Orderbook Development By Value
Orderbook Development By Value Orderbook Value by estimated contract price ($ billion), Start Year USD Billion 700 600 580.7 580.7 519.2 500 485.7 416.0 400 349.8 336.1 295.0 297.4 300 232.1 200 167.5 117.7 90.8 92.8 88.5 100 73.9 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20
Slide 41: CCM Transactions 2013
CCM Transactions 2013 December 2013 December 2013 December 2013 November 2013 November 2013 November 2013 Drybulk Joint Venture Navig8 Crude Tankers Inc. Undisclosed Baltic Trading Limited Joint Venture with $160,000,000 $300,000,000 $77,000,000 $400,000,000 $58,200,000 Institutional Investors Priva
Slide 42: Outlook
The heart of global shipping… Outlook 1. Execution of Strategy 2. Continued volume growth 3. General rate improvement 4. Increased volatility 5. Increased FOB 6. Currency caution Enabling global trade 10 March 2014 Final Results www.clarksons.com 42
Slide 43: 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