Clarkson Plc · LSE:CKN
Clarkson — H1 2013 Earnings Presentation
34 slides from Clarkson's earnings presentation, Aug 19, 2013
Slide 1: Interim Results
Interim Results 30 June 2013 Clarkson PLC 19 August 2013 www.clarksons.com
Slide 2: Agenda
Agenda Headline results Divisional performance The market Outlook Andi Case CEO Jeff Woyda CFO 19 August 2013 Interim Results www.clarksons.com 2
Slide 3: Results Summary
Results Summary June 2013 June 2012 Change £m £m % Revenue 89.1) 88.0) +1.25% Profit before taxation (Before exceptional item and acquisition costs) 10.8) 10.8) +0% Exceptional item (1.0) 4.5) Acquisition costs (0.8) (0.8) Profit before taxation (After exceptional item and acquisition costs) 9.0) 14
Slide 4: Net Funds
Net Funds June 2013 Dec 2012 £m £m Cash and cash equivalents 69.2 89.4 Current investments 25.1 25.2 Reserved for bonus (full cost) (22.4) (39.4) Net cash 71.9 75.2 Borrowings - - Net available funds 71.9 75.2 Reserved for dividend (3.6) (6.1) 19 August 2013 Interim Results www.clarksons.com 4
Slide 5: Movement in Net Funds
Movement in Net Funds 75.2 -6.2 10.2 71.9 -5.1 -3.0 2.6 -1.0 -0.8 Net Funds Dec 12 Dividend Debtors / Taxation Pension Capex FX Gains Profit Net Funds Jun 13 Creditors 19 August 2013 Interim Results www.clarksons.com 5
Slide 6: 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 22.1 Intangibles 47.2 32.3 32.5 32.7 40.3 39.8 39.5 72.6 61.4 59.9 54.3 61.6 63.3 61.6 Investments 16.4 16.1 14.9 13.2 1.9 1.9 1.9 Working Capital (25.8) (22.0) (9.3) (12.8) (4.7) (5.0) 1
Slide 7: Dividends
Dividends 55 50 45 Pence per Share 40 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 19 August 2013 Interim Results www.clarksons.com 7
Slide 8: Broking
Broking 19 August 2013 Interim Results www.clarksons.com 8
Slide 9: Broking
Broking Deep Sea Tankers Petrochemical Specialised LPG LNG Gas Products Dry Cargo Containers Offshore Newbuildings Secondhand Demolition 19 August 2013 Interim Results www.clarksons.com 9
Slide 10: Broking
Broking Revenue Revenues hold up £73.4m Strong performances in Tankers, Specialised, Gas, S&P and Offshore (2012 - £73.2m) $10m lower FOB in Jan 13 Profit £12.4m Rates environment lower (2012 - £12.7m) ClarkSea index down 8.5% Continuing to add staff Globally Across products Extending analysis Growt
Slide 11: Financial
Financial 19 August 2013 Interim Results www.clarksons.com 11
Slide 12: Financial
Financial Debt Corporate Finance Risk Management Equity Capital Markets Specialist expertise in Advisors on Mergers Specialised and agile Research and the shipping and and Acquisitions and risk management execution covering: offshore markets for: corporate restructuring. solutions including: • marit
Slide 13: Financial
Financial Revenue Clarkson Securities £3.9m Remains a market leader in FFAs (2012 - £2.7m) Market volumes in Cape FFAs down 17% and average rates down 24% Loss Increased activities in Iron Ore £2.8m Extended operation in far east (2012 - £4.8m) First half market volumes almost same as whole of 2012
Slide 14: Financial
Financial Clarkson Capital Markets Research enhanced 5 Verticals – Shipping, Oil Services, Coal & Mining, E&P, MLPs 86 listed stocks covered Sales & Trading client list extended over 100 clients Rationalised overall cost base Closed Dubai Annual saving US$ 2m Banking Mandates increasing 19 August 20
Slide 15: Financial – progression in 2013
Financial – progression in 2013 2013 First 6 Months 2012 Year 2011 Year 19 August 2013 Interim Results www.clarksons.com 15
Slide 16: Support
Support 19 August 2013 Interim Results www.clarksons.com 16
Slide 17: Support – Clarkson Port Services
Support – Clarkson Port Services Lerwick Vessel Agency Ship’s agency at 14 UK and 2 Egyptian ports by a dedicated team of 80 professionals 24/7. Aberdeen Project Logistics Ensuring deadlines are met, co-ordinating Leith berthing, route research, on-site attendance and port authority liaison. Newcast
Slide 18: Support
Support Revenue Slight fall in underlying revenue £8.8m (2012 - £9.1m) Poor grain exports Delayed North Sea and renewables projects Profit £1.6m (2012 - £2.1m) Added offices Leith ** 2012 included a £0.3m one-off receipt relating to a Lerwick rates rebate Continued Integration Rollout of admin, fina
Slide 19: Research
Research 19 August 2013 Interim Results www.clarksons.com 19
Slide 20: Research
Research Offshore and energy Shipping and trade Valuations • 25,000 structures, vessels • Over 114,000 vessels • World leading provider of and companies and valuations • In service and on order • 6,000 oil and gas fields. coverage, • Portfolio services to • Ship finance banks • Bespoke data feeds, •
Slide 21: Research
Research Revenue Product market leaders £4.6m Shipping Intelligence Network, Shipping Intelligence Weekly (2012 - £4.6m) World Fleet Register, Offshore Intelligence Monthly Profit Global reach extended £1.3m 5 year CAGR - Asia Pacific 23% - USA 11.1% (2012 - £1.4m) Client list continues to grow ** 2
Slide 22: ClarkSea Index
ClarkSea Index 60 50 $000/day 40 30 20 10 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Clarksons 19 August 2013 Interim Results www.clarksons.com 22
Slide 23: 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 24: 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 10 9 9 8 8 7 7 Billion tonnes Billion people 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2008 2009 2010 2011 2012 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 20
Slide 25: Seaborne Trade per Capita
Seaborne Trade per Capita 1.5 1.2 Tonnes per Capita 0.9 0.6 0.3 0.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Clarksons & US Census Bureau 19 August 2013 Interim Results www.clarksons.com 25
Slide 26: World Seaborne Trade vs. GDP
World Seaborne Trade vs. GDP 1 Trillion dollars GDP generates 100 million tonnes of Seaborne Trade World Seaborne Trade Trade trend volume GDP Current Prices GDP trend volume 16 140 World Seaborne Trade (Billion tonnes) 14 120 12 100 GDP (Trillion dollars) 10 80 8 60 6 40 4 2 20 0 0 1991 1999 2007 2
Slide 27: Fleet Deliveries & Orderbook
All Types* Fleet Deliveries & Orderbook 4,500 Miscellaneous service vessels 4,000 rigs / platforms 3,500 offshore production / storage vessels 3,000 deck cargo No. of Ships 2,500 passenger vehicle 2,000 general cargo 1,500 gas carrier 1,000 container ship bulk carrier 500 tanker 0 1996 1997 1998 199
Slide 28: Global Vessel Contracting
Global Vessel Contracting 5,500 5,017 5,000 4,500 4,000 3,782 3,500 3,023 No of vessels 2,659 3,000 2,520 2,500 2,026 2,215 2,000 1,271 1,131 1,581 1,500 1,124 1,160 1,072 1,010 1,124 1,124 947 913 1,000 854 500 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 29: Demolition Trends 2000 – 2013
Demolition Trends 2000 – 2013 No. Demolition – Vessels above 1,000 GT (Number & Dwt) m.Dwt 1600 70.0 Bars show the number of Line shows the annual volume of vessels demolished (LHS) dwt demolished (RHS) 2013 YTD 1400 1,340 60.0 1,340 1200 1,168 1,110 50.0 1000 930 40.0 800 600 591 572 605 30.0 600 5
Slide 30: Orderbook Development By Value
Orderbook Development By Value Orderbook Value by estimated contract price ($ billion), Start Year USD Billion 700.0 580.7 580.7 600.0 519.2 500.0 485.7 416.0 400.0 349.8 336.1 295.4 300.0 232.1 200.0 167.5 117.7 90.8 92.8 88.5 100.0 73.9 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20
Slide 31: Top Shipping Banks – Regional Breakdown
Top 30 Shipping Banks – Regional Breakdown The below chart shows the regional breakdown of the top 30 shipping banks by region As of end of 2012, total global shipping loan portfolio 600 estimated to be $525bn Far East and Australia USA Europe $525.0 500 Fall off in top 30 banks portfolio $66.4 has
Slide 32: Global Recorded Loans - Geographically
Global Recorded Loans - Geographically European banks continue to dominate shipping finance scene, however their share is declining. Whereas the US- based banks provide a minimal contribution, the share of the Asian financial institutions continues to increase. Data Source: Clarksons / Marine Money
Slide 33: Outlook
Outlook 19 August 2013 Interim Results www.clarksons.com 33
Slide 34: 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