Fih Group Plc · LSE:FIH
Fih — Falkland Islands Holdings — H1 2014 Earnings Presentation
29 slides from Fih's earnings presentation, November 2013
Slide 1: Falkland Islands Holdings Interim Results
Click to edit Master title style FALKLAND ISLANDS HOLDINGS Interim Results 6 months ended 30 September 2013 1
Slide 2: Interim Results Sept 2013 Overview
Interim Results – Sept 2013 ‐ Overview FIC: Quieter Trading – No oil rig in Falklands waters Momart: Further strong growth – record H1 result PHFC: Stable – trading in line with last year FKL: Profits up 15% ‐ UK operations offsetting temporarily subdued Falklands trading 2
Slide 3: FKL Trading Overview
FKL : 6 Months ended 30 September 2013 Trading Overview • Revenue up by 4.4% to £17.2m (2012: £16.5m) — Momart : Strong growth – profits up 121% to £0.76m ( 2012 £0.34m ) — FIC : Hiatus in oil related activity but continued investment – profits down £0.24m to £0.3m — PHFC : Robust trading in line wi
Slide 4: FKL Summary P&L
FKL : Summary P&L ‐ 6 months ended 30 September 2013 6 months ended 30 September 2013 2012 £000 £000 Change +/- Turnover 17,239 16,518 +4.4% Trading Profit 1,472 1,352 +8.9% FIC Pension scheme financing costs (60) (66) Pontoon lease interest (117) (118) Net Bank / HP interest received/(paid) 76 26 N
Slide 5: FKL Segmental Analysis
FKL : Segmental Analysis ‐ 6 months ended 30 September 2013 6 Months ended 30 September 2013 2012 £000 £000 Change +/- Turnover FIC 6,757 6,942 -2.7% PHFC 2,236 2,216 +0.9% Momart 8,246 7,360 +12.0% Total Turnover 17,239 16,518 +4.4% Pre Tax Profit FIC 301 538 -44.1% PHFC 311 313 -0.6% Momart 759 34
Slide 6: FIC: Getting to First Oil
FIC : Getting to First Oil
Slide 7: FIC Half Year Results
FIC–:Year FIC 6 months ended ended 30 September 31 March 2012 2013 • Absence of oil rig & 30th Anniversary visitors reduced economic activity • FIC Revenue down 2.7% at £6.8m ( 2012 £6.9m ) • PBTa lower by £0.24m to £0.3m ( 2012 £0.54m ) • After write off of £0.1m of site survey / preparation costs
Slide 8: FIC Investment and Projects
FIC–:Year FIC 6 months ended ended 30 September 31 March 2012 2013 • Continued investment in Falklands Building Services – 31 staff now employed • Further work done to modernise Falklands 4x4’s Servicing facilities • Growing WIP & Order book for commission building of kit homes • Modernisation of FI
Slide 9: Falklands Oil Development Timeline: Revised View
Falklands Oil Development Timeline : Revised View – November 2013 Revised Sea Lion Timeline Nov‐13 2014 2015 2016 2017 2018 2019 Exploration Drilling 2 rigs Revised view 1 rig 2‐ 6 wells Field Development Build Develop Develop Construct Revised view Nov 2013 Prepare Develop Develop Construct TLP wil
Slide 10: FIC Summary
FIC Strategy Summary FIC Summary • Falkland Islands economy still set for dramatic growth in medium term (H2 2016) • Key milestone will be Premier project sanction of Sea Lion – currently expected December 2014 • Short term growth prospects more limited but important preparatory work under way • FIC
Slide 11: Momart: Continued strong growth
Momart : Continued strong growth 11
Slide 12: Momart: 6 months ended 30 September 2013
Momart : 6 months ended 30 September 2013 • Encouraging performance with continued strong growth • Revenue ahead by 12.0% to £8.25million ( 2012 £7.4m ) • PBTa + 121% at £0.76million (2012 £0.34m) • Strong growth in UK and overseas Exhibitions – Revenue + 21% to £4.77million ( 2012 £3.95m ) – Gross
Slide 13: Portsmouth Harbour Ferry Company (PHFC)
Portsmouth Harbour Ferry Company (PHFC) 13
Slide 14: PHFC: 6 months ended 30 September 2013
PHFC : 6 months ended 30 September 2013 P • Ferry revenues ahead by 0.9% at £2.24million • Fare rises of 3‐4% in June 2013 — Adult Return fares £2.90 (£2.80) , 10 Trip Ticket £13.50 ( £13.00) — Child / OAP increased to £1.90 ( following 2 year hold at £1.80 ) • Passenger numbers fell by 1.7% vs H1 2
Slide 15: FOGL Licences: Location Map
FO FOGL Licences: Location Map Stebbing 15
Slide 16: Falkland Oil and Gas (FOGL)
Falkland Oil and Gas (FOGL) • FKL retains 12.8m FOGL shares (4.0%) – 1 FOGL share for each FKL share in issue – Book cost 20p per share – FOGL Interest Northern licences 40% :Southern 52.5% – Partners : Noble Energy ( Mkt cap c $26bn) Edison International (Mkt cap EDF c $67bn ) • Combination with De
Slide 17: FKL: Outlook
FKL : Outlook • FIC – Falklands economy set to remain quiet H2. – Key growth trigger will be Premier’s final confirmation of Sea Lion development – Dec 2014 . – Argentine pressure on cruise ship operators likely to continue – House building and new vehicle sales will help offset quieter retail envir
Slide 18: FKL: Strategy
FKL: Strategy FKL: Strategy • FIC : Preparing for long term oil led growth. Strengthen management team & increase capital investment as oil development crystallises. Develop specialist support services to maximise returns. • Momart : Expand storage capacity and UK and International client base • PHF
Slide 19: Appendices
Appendices 19
Slide 20: Current Sea Lion Development Plans
Plan Current Sea Lion Development Plans • Phased Development proposed for Sea Preparing for FEED Lion Finalising basis of design • Initial development in the north Finalising build methodologies • 284 mm bbls from 30 development wells • Gas cap is assumed in the west Studying a Tension Leg Platform
Slide 21: FKL: Cash flow
FKL : Cash flow 6 months ended 30 September 2013 All figs £’000’s 2013 2012 Operating profit 1,279 1,153 Depreciation 630 560 Amortisation of Intangibles 193 199 Provision for share based payments 51 124 Cost of July 2012 capital raising - (682) Increase in working capital (2,415) (1,373) Net Cash F
Slide 22: FKL: Balance Sheet
FKL : Balance Sheet All figs £’000’s 30 Sept 2013 31 March 2013 30 Sept 2012 Tangible Fixed Assets 13,962 13,725 13,391 Investment properties at net book value 2,960 2,786 1,435 Goodwill & Intangibles 12,122 12,315 12,514 Quoted investments at m.v 3,623 3,399 8,400 Deferred Tax & other assets 955 86
Slide 23: FKL: Net borrowings and liquidity
FKL: Net borrowings and liquidity 30 Sept 2013 31 March 2013 30 Sept 2012 £000 £000 £000 Bank Loans & HP due within 1 year (1,093) (1,122) (1,135) Bank loans & HP due after 1 year (745) (1,253) (1,764) Total Bank Borrowings & HP (1,838) (2,375) (2,899) Cash 8,171 11,416 10,876 Total net cash / (debt
Slide 24: FIC: Sites for development
FIC: Sites for development FIC: Sites for development Site Location & size Development Potential 1 Fitzroy Road 2 acres , Central Stanley Planning permission for 2 bed apartments . Final design being developed 2 Dairy Paddock Western Stanley 36 acres Planning permission for 350 houses / Work camp 3
Slide 25: 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 high Planning permission for workers quality residential homes Prime camp central and site for
Slide 26: Map of FIC Development Sites
Map of FIC Development Sites Map of FIC Development Sites 26
Slide 27: Map of FIC Development Sites
Map of FIC Development Sites Map of FIC Development Sites 27
Slide 28: FKL 8 Year Track Record
Key Financial Metrics 2006 ‐ 2013 FKL – 8 Year Track Record Growth in Underlying Pre Tax Profit ( PBTae ) Growth in Turnover 2006 -2013 3,500 3,234 3,291 40,000 35,596 34,109 3,000 35,000 32,251 31,841 2,688 2,728 29,224 2,316 30,000 2,500 2,010 25,000 2,000 1,654 20,000 1,490 17,200 1,500 15,209 15
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Falkland Islands Holdings — H1 2014 Earnings Presentation on 6ix