Braemar Plc · LSE:BMS
Braemar — Braemar Shipping Services — H1 2021/22 Earnings Presentation
29 slides from Braemar's earnings presentation, November 2021
Slide 1: Interim Results Presentation
Interim Results November 2021 0 Braemar Shipping Services Plc Interim Results Presentation Targeted growth strategy A strong performance in H1 November 2021 November 2021
Slide 2: Strong performance laying foundations for growth
Interim Results November 2021 1 Strong performance laying foundations for growth Strong growth in revenue and Streamlined business profit refocused on Shipbroking Trading continues in line with Balance Sheet Strengthened upgraded expectations November 2021
Slide 3: New Ambitions
Interim Results November 2021 2 New Ambitions • Double the size of our business over the next 4 years • Achieve optimum scale and market share • Utilise our position as a UK listed company How we achieve this: • Organic growth • Targeted acquisitions • New products coverage • Utilise technology • St
Slide 4: Strategic Progress Since Year End
Interim Results November 2021 3 Strategic Progress Since Year End Board changes • Nigel Payne, Chairman • Tris Simmonds, COO • Elizabeth Gooch, NED Rescheduling of Naves acquisition liabilities • £2.5m previously due for repayment before the end of December 2022 deferred to be paid no earlier than S
Slide 5: Strategic Progress Since Year End
Interim Results November 2021 4 Strategic Progress Since Year End Disposal of non-core investment in AqualisBraemar • Total cash proceeds of £7.9m • Further balance sheet strengthening Planned joint venture between the Logistics Division, Cory Brothers, and Vertom • Significant stake in much larger
Slide 6: Trading Overview
Interim Results November 2021 5 Trading Overview • Revenue up 11%, Underlying Operating Profit up 10% • Shipbroking markets strong in Dry Cargo, Sale & Purchase and Securities, Tankers now showing signs of recovery • Significant success fees for Naves, revenue up by 49% • Revenue and profit growth i
Slide 7: Summary Results
Interim InterimResults ResultsNovember November2021 2021 6 Summary Results £m H1 2021/22 % H1 2020/21 FY 2020/21 Revenue 47.4 11% 42.8 111.8 Underlying Operating Profit 5.6 10% 5.1 8.9 Underlying Operating Profit, 6.9 23% 5.6 8.9 including Cory Brothers Reported Profit before tax 7.2 118% 3.3 9.4 Un
Slide 8: Shipping market commentary
Interim Results November 2021 7 Shipping market commentary • Shipbroking set for consolidation • Shipping faces regulatory challenges over carbon reduction • Slow steaming is expected and as a result longer charters • COVID-19 disruption is set to continue meaning more congestion and longer discharg
Slide 9: Future Direction
Interim Results November 2021 8 Future Direction Growth Opportunities • Strategic organic growth to increase market share • Acquire new businesses to complement existing markets • Increase geographical presence • Expand derivatives coverage • Develop new products for a changing regulatory environmen
Slide 10: Future Direction
Interim Results November 2021 9 Future Direction Growth Opportunities Technology Innovation • A Strategic Investment in technology via our joint venture with Zuma Labs • A comprehensive solution for all our broking desks • An improved workflow with better access to markets • A complete set of data a
Slide 11: Cory Vertom Joint Venture rationale
Interim Results November 2021 10 Cory Vertom Joint Venture rationale ✓ Combined port agency and freight forwarding operation ✓ History of two existing JVs together for ~10 years ✓ Complementary cultures and values ✓ Cost and operational synergies ✓ Will allow broader European and Global coverage ✓ C
Slide 12: Revenue Analysis
Interim InterimResults ResultsNovember November2021 2021 11 Revenue Analysis £47.4m £42.8m HY21 - Revenue HY22 - Revenue Financial, 11% Deep Sea Financial, 8% Tankers, 19% Securities, 10% Securities, 12% Offshore & Deep Sea Renewables, Tankers, 38% Specialised 3% Offshore & Tankers Renewables, (Chem
Slide 13: Shipbroking
Interim InterimResults ResultsNovember November2021 2021 12 Shipbroking H1 2021/22 H1 2020/21 FY 2020/21 Revenue £42.2m £39.3m £77.7m Underlying operating profit £5.9m £6.1m £10.1m Margin 14.0% 15.5% 13.0% Forward Order Book $55.5m $42.4m $43.4m • Revenue growth from Dry Cargo, Sale and Purchase and
Slide 14: Financial Division
Interim InterimResults ResultsNovember November2021 2021 13 Financial Division H1 2021/22 H1 2020/21 FY 2020/21 Revenue £5.2m £3.5m £6.0m Underlying profit £1.7m £0.7m £1.0m Operating margin 32.7% 20.0% 16.7% #Oct 21 #Oct 20 Retainer only 6 4 • More transactions completed Retainer + 8 11 • Higher su
Slide 15: Cory Brothers
Interim InterimResults ResultsNovember November2021 2021 14 Cory Brothers Port Agency H1 2021/22 H1 2020/21 FY 2020/21 Revenue £4.4m £4.0m £8.1m Underlying Operating Profit £0.5m £0.4m £1.0m Operating Margin 11.4% 10.0% 12.3% Freight Forwarding H1 2021/22 H1 2020/21 FY 2020/21 Revenue £16.9m £9.5m £
Slide 16: Summary and Outlook
Interim InterimResults ResultsNovember November2021 2021 15 Summary and Outlook Summary • Strong Shipbroking performance driven by Dry Cargo, Securities and Sale and Purchase • Higher success fees in Naves, two significant transactions closing in the period • Strong trading in Cory Brothers as a res
Slide 17: Q&A
Interim InterimResults ResultsNovember November2021 2021 16 Q&A November 2021
Slide 18: Appendices
Interim Results November 2021 17 Appendices November 2021
Slide 19: Key Performance Indicators
Interim InterimResults ResultsNovember November2021 2021 18 Key Performance Indicators Underlying Operating Profit Revenue Per Head Revenue Margin (%) FY17A FY18A FY19A FY20A FY21A FY17A FY18A FY19A FY20A FY21A FY17A FY18A FY19A FY20A FY21A Forward Order Book Total Leverage Debt Ratio Annual Average
Slide 20: Revenue From Continuing Operations
Interim InterimResults ResultsNovember November2021 2021 19 Revenue From Continuing Operations H1 2021/22 H1 2020/21 Change Revenue £m £m % Dry Cargo 10.9 6.5 68% Sale & Purchase 9.8 5.7 72% Deep-sea Tankers 8.9 16.3 (45%) Securities 5.5 4.2 31% Financial 5.2 3.5 49% Specialised Tankers (including 5
Slide 21: Group Balance Sheet
Interim InterimResults ResultsNovember November2021 2021 20 Group Balance Sheet H1 2021/22 H1 2020/21 FY 2020/21 £m £m £m Goodwill and other intangibles 81.2 85.8 86.1 Non-Current Assets 15.3 19.1 16.7 Investment in AqualisBraemar - 7.1 3.8 Current assets* 50.1 36.5 37.5 Current liabilities* (51.2)
Slide 22: Group Cash Flow
Interim InterimResults ResultsNovember November2021 2021 21 Group Cash Flow H1 2021/22 H1 2020/21 FY 2020/21 £m £m £m Opening Cash 14.2 28.8 28.8 Cashflow from continuing trading 3.9 8.1 14.7 operations Movement on borrowing and liabilities (5.4) (24.0) (32.4) Net interest payment (0.6) (0.6) (1.3)
Slide 23: Group Specific Items
Interim InterimResults ResultsNovember November2021 2021 22 Group Specific Items H1 2021/22 H1 2020/21 £m £m Acquisition related items: - (0.1) • Braemar ACM • Braemar Naves 2.3 (0.7) • Atlantic - (0.2) • Attributed interest - (0.2) Gain/(loss) from discontinued operations 3.5 (2.8) Taxation - - Tot
Slide 24: Discontinued Operations
Interim InterimResults ResultsNovember November2021 2021 23 Discontinued Operations Wavespec and AqualisBraemar Disposals & Cory Brothers Held for Sale H1 2021/22 H1 2020/21 £m £m Post tax trading loss (0.1) (0.5) Estimated impairment - (1.5) Loss on disposal (0.8) - Cory Brothers trading profit 1.1
Slide 25: Shipping market drivers
Interim Results November 2021 24 Shipping market drivers Economic recovery underway Chinese economic growth has barely missed a beat Chinese and other East Asian imports are the key drivers of tanker and bulker demand IMF Growth forecasts for 2021 and beyond seemingly unaffected by Covid Tanker mark
Slide 26: Shipping market drivers
Interim Results November 2021 25 Shipping market drivers Dry Cargo demand has proved more stable through the Covid pandemic Dry bulk demand has been shielded from the pandemic thanks to stimulus spending – particularly on infrastructure projects Strong Chinese economic growth and population expansio
Slide 27: Shipping market drivers
Interim Results November 2021 26 Shipping market drivers Historically limited ordering of new ships bodes well for stronger markets Strong freight markets rely on demand for shipping outpacing its supply Today’s small inventory of newbuilding projects is a strong market signal New building orders at
Slide 28: Disclaimer
Interim InterimResults ResultsNovember November2021 2021 27 Disclaimer This presentation (this "presentation") is for general information only and is the property of Braemar Shipping Services Plc ("Braemar"). Making this presentation available in no circumstances whatsoever implies the existence of
Slide 29: Interim Results November 2021
Interim Results November 2021 28 James Gundy Group Chief Executive Officer E: [email protected] T: +44 (0) 20 3142 4100 Tris Simmonds Group Chief Operating Officer E: [email protected] T: +44 (0) 20 3142 4100 Nick Stone Group Chief Financial Officer E: [email protected] November T
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