Braemar Plc · LSE:BMS
Braemar — H1 2014/15 Earnings Presentation
18 slides from Braemar's earnings presentation, Oct 29, 2014
Slide 1: Interim Results Presentation
Interim Results Presenta5on James Kidwell, Chief Execu4ve Officer Mar4n Beer, Finance Director Johnny Plumbe, Execu4ve Director 29 October 2014 www.braemar.com 1 Petrochemical tanker leaving Busan
Slide 2: Divisional service overview
Divisional service overview • Tanker chartering – Crude oil, Clean Petroleum Products, LPG, LNG, Chemicals, FFAs, Projects (4me charter) • Sale & purchase – second hand, newbuilding, recycling, valua4ons Shipbroking • Dry Bulk chartering • Offshore – chartering and sale & purchase • Container – chart
Slide 3: Operational highlights
Opera4onal highlights – Merger with ACM Shipping Group completed on 25 July 2014 – Ac4on taken to reduce cost base of merged shipbroking business expected to achieve £4 million annualised cost saving by the year end – Profit from the Technical division is down from the excep4onal level achieved in th
Slide 4: A year of transformation
A year of transforma4on • Merger with ACM – Shipbroking teams now co-‐located – Systems and processes integra4on well under way – Team structure defined and efficiencies realised – Process under way to merge teams to one site in London – Net £4m annualised saving • Across the Group – Environmental now
Slide 5: Financial highlights
Financial highlights Revenue EBITA *Restated *Restated H1 2014 H1 2013 FY 13/14 H1 2014 H1 2013 FY 13/14 £m £m £m £m £m £m Shipbroking 21.0 19.0 40.9 Shipbroking 1.4 1.1 2.6 Technical*1 22.9 23.8 45.7 Technical*1 2.3 3.4 6.9 Logis4cs 20.6 21.1 38.9 Logis4cs 1.0 1.3 2.0 Unallocated costs (1.1) (1.1)
Slide 6: Shipbroking - merger with ACM
Shipbroking -‐ merger with ACM – Established shipbroking division, Braemar ACM Shipbroking Divisional results summary H1 H1 – Merger has created one of the largest full-‐service shipbrokers in 2014 2013 £’m £’m the world Revenue* 21.0 19.0 – Division has performed ahead of the same period last yea
Slide 7: Enhanced global broking coverage
Enhanced global broking coverage 180 160 140 120 Research No. of brokers 100 Tankers SNP 80 Offshore 60 LNG Dry 40 Container 20 0 Braemar Braemar ACM Braemar Braemar ACM Braemar Braemar ACM Braemar Braemar ACM Asia Australia EMEA USA www.braemar.com 7
Slide 8: Shipping market drivers
Shipping market drivers Major seaborne cargo developments Global GDP and seaborne trade developments 15 14,000 12,000 10 Percent Change Seaborne Crude Oil and Oil 10,000 5 Products Million Tonnes 8,000 Seaborne Dry Bulk Cargo 0 6,000 -‐5 4,000 Seaborne Containerised Cargo 2,000 -‐10 2004 2005 2006
Slide 9: Market volatility creates opportunity
Market vola4lity creates opportunity DeepWater Horizon Braemar ACM's chronology of main events affecting oil & tanker markets Oil Leak 04/2010 Hurricanes Dennis(07/2005), 'Arab Spring': Libyian 1/3rd of Japan's nuclear reacters Katrina (08/2005) and Rita Asian economies Oil Supply shut down due to s
Slide 10: Technical - headlines
Technical -‐ headlines – Remains the largest contributor to group profit Divisional results summary – Offshore ac4vity in the Far East has returned to more normal H1 H1 2014 2013 levels aner a strong H1 2013 Revenue 22.9 23.8 – Sales and profits up in Braemar Adjus4ng, Braemar Engineering Opera4ng pro
Slide 11: Technical - overview
Technical -‐ overview – Full suite of technical service solu4ons for Revenue split the marine and energy industries – Demonstra4ng broad-‐ranging capability with a widespread global presence – Provision of exper4se to large, long-‐term oil and gas projects – World leader in the field of LNG carrie
Slide 12: Logistics - headlines
Logis4cs -‐ headlines – Management change has reduced cost base and improved sales Divisional results summary and marke4ng focus H1 H1 2014 2013 – Sale of seasonal non-‐core Tours business Revenue 20.6 21.1 – Exci4ng new Project Forwarding opportuni4es Opera4ng profit 1.0 1.3 Staff numbers 195 213 –
Slide 13: Logistics - overview
Logis4cs -‐ overview – Worldwide services for Port Agency, Liner and Logis4cs Revenue split – A network of offices and trusted partners – Leading UK player with scope to expand – Challenger to global players – Cory Brothers is a long-‐established name with over 170 years in shipping agency in the UK
Slide 14: Income Statement
Income Statement H1 14/15 H1 13/14 FY 13/14 £m * £m £m Revenue 64.5 63.9 125.5 – Includes one month of ACM EBITA 3.6 4.7 9.3 – Amor4sa4on will reflect Amor4sa4on of acquired goodwill (0.3) (0.3) (0.4) accoun4ng value of ACM Excep4onal items (3.0) -‐ -‐ forward order book – Excep4onal items -‐ £0.9
Slide 15: Cashflow
Cashflow H1 14/15 H1 ‘13/14 FY 13/14 £m £m £m EBITA 3.6 4.7 9.3 – £5m decrease in bonus accrual Change in Receivables (3.2) (5.7) (4.2) Change in Payables (2.4) (9.3) (3.3) – Underlying working capital stable Restructuring related (1.0) -‐ -‐ – Tax paid reflects improved Other items / non-‐cash cha
Slide 16: Balance sheet
Balance sheet Aug 14 Aug 13 Feb 14 £m £m £m – Increased goodwill from Goodwill and other intangibles 80.6 31.6 31.5 ACM merger Fixed asset and investments 12.4 8.9 9.5 – Other asset movement levels reflect take on of ACM balance sheet Current assets 57.2 50.4 47.4 – Includes a small defined Current li
Slide 17: Dividend
Dividend 30 25 20 – First half profit down on last year 15 – Second half expected to 10 benefit from ACM for full period 5 – Second half expected to benefit from cost savings 0 2009/10 2010/11 2011/12 2012/13 2013/14 2013/14 – Full year expected to remain H1 dividend Full year dividend unchanged – Inte
Slide 18: Summary
Summary – ACM merger – wider scale, stronger broking teams, greater market coverage, enhanced broking synergies – Full year numbers will include a full contribu4on in the second half from ACM – Opportunity for long term cyclical recovery in shipping markets – Structural changes within Technical and