Clarkson PLC · LSE:CKN
Clarkson — FY2012 Earnings Presentation
26 slides from Clarkson's earnings presentation, Mar 7, 2013
Slide 1: Final Results Announcement
07 March 2013 Final Results Announcement 12 months ended 31 December 2012
Slide 2: Agenda
07 March 2013 Agenda • Financial Overview – Jeff Woyda, CFO • The Market – Andi Case, CEO • Outlook – Andi Case, CEO 2
Slide 3: Results summary
07 March 2013 Results summary Change 2012 2011 % Revenue £176.2m £194.6m -9.5% EBITDA* £22.7m £34.2m -33.6% Profit before taxation* £20.4m £32.2m -36.6% Profit before taxation** £23.3m £35.4m -34.2% Earnings per share** 87.2p 134.1p -35.0% Dividend per share 51.0p 50.0p +2.0% * Before exceptional it
Slide 4: Broking Revenue £145.7m, Profit £25.2m
07 March 2013 Broking Revenue £145.7m (2011 - £163.6m) Profit £25.2m (2011 - £35.9m) ● Significant demand/supply imbalance ● Lower asset values ● Very challenging freight rates (ClarkSea index down 23% y-o-y) ● Transaction volumes ● Up across all chartering activities ● Many show double digit % grow
Slide 5: Financial Revenue £5.3m, Loss £9.9m
07 March 2013 Financial Revenue £5.3m (2011 - £12.1m) Loss £9.9m (2011 – Loss £2.3m) ● CSL ● FFA market suffering from lack of volatility ● Perfect storm ● Market volumes down ● Rates down ● Iron Ore swaps and options ● CCM ● Equity sales ● NY sales operation start up costs ● Research coverage exten
Slide 6: Support Revenue £16.0m, Profit £4.2m
07 March 2013 Support Revenue £16.0m (2011 - £10.8m) Profit £4.2m (2011 - £1.7m) ● Port & Agency profit £2.8m (2011: £0.8m) ● EnShip & Opex acquisitions exceeded expectations ● Integration working well ● New operations in Tyne and Great Yarmouth in the period ● Property services profit £1.4m (2011:
Slide 7: Research Revenue £9.2m, Profit £2.8m
07 March 2013 Research Revenue £9.2m (2011 - £8.1m) Profit £2.8m (2011 - £2.0m) ● Martin Stopford retired, remains under consultancy agreement ● Steve Gordon becomes MD, supported by an outstanding board ● Headline revenue growth of 14%, underlying revenue growth 10% ● Major areas of growth ● Digita
Slide 8: Profit & Loss
07 March 2013 Profit & Loss ● Acquisition costs £1.6m ● Share-based payments ● Amortisation of intangibles ● Non-recurring receipt of US$7m (£4.5m) – exceptional item ● Taxation – rate 29.9% (2011: 29.1%) ● Profits in high tax jurisdictions ● Exchange rate ● Average year ended 31 December 2012: £1:$
Slide 9: Dividend Pence per Share
07 March 2013 Dividend 55 50 45 Pence per Share 40 35 32 33 30 Final 30 26 27 26 25 24 Interim 20 22 16 15 11 10 9 16 16 17 18 18 12 14 5 9 10 6 7 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9
Slide 10: Net Funds
07 March 2013 Net Funds 2012 2011 £m £m Cash and cash equivalents 89.4 132.9 Current investments 25.2 - Reserved for bonus (full cost) (39.4) (61.8) Net cash 75.2 71.1 Borrowings - - Net available funds 75.2 71.1 Reserved for final dividend (6.1) (6.0) 10
Slide 11: Balance Sheet
07 March 2013 Balance Sheet 2006 2007 2008 2009 2010 2011 2012 £m £m £m £m £m £m £m Fixed Assets 27.2 25.4 29.1 27.4 21.6 21.3 23.5 Intangibles 42.4 47.2 32.3 32.5 32.7 40.3 39.8 69.6 72.6 61.4 59.9 54.3 61.6 63.3 Investments 14.0 16.4 16.1 14.9 13.2 1.9 1.9 Working Capital (18.0) (25.8) (22.0) (9.3
Slide 12: Forward Order Book
07 March 2013 Forward Order Book (for invoicing in the following year) 2012* 2011* US$m US$m Broking 81 91 Financial 1 1 Total FOB 82 92 *Best estimates of deliverable FOB 12
Slide 13: ClarkSea Index
$000/day 0 10 20 30 40 50 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 ClarkSea Index Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 07 March 2013 13
Slide 14: ClarkSea Index
07 March 2013 ClarkSea Index 55.0 50.0 Average Maximum Minimum 45.0 40.0 35.0 $000/day 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 Average 13,568 13,315 9,786 11,081 11,883 13,800 12,256 13,424 11,3
Slide 15: Baltic Dry Index
07 March 2013 Baltic Dry Index 12,000 11,500 11,000 10,500 Average Minimum Maximum 10,000 9,500 9,000 8,500 8,000 Lowest Average Highest 7,500 554 1,289 2,352 7,000 14% below 2012 min (647) 40% above 2012 level 45% above 2012 max Peak 6,500 (920) (1,624) to 6,000 Trough 5,500 (95.3%) $/day 5,000 4,5
Slide 16: World Seaborne Trade
07 March 2013 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 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 200
Slide 17: Tonnes per Capita
Tonnes per Capita 0.0 0.3 0.6 0.9 1.2 1.5 1990 1991 1992 1993 1994 1995 Source: Clarksons & US Census of Bureau 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Seaborne Trade per Capita 2006 2007 2008 2009 2010 2011 2012 2013 07 March 2013 17
Slide 18: World Population Growth
07 March 2013 World Population Growth Census 2030 8.31 billion Today 7.07 billion 1990-2010 2010-2030 600 500 400 Million people 555 300 433 370 394 200 335 288 182 100 143 61 16 107 9 8 66 61 0 China India Other Asia Oceania Africa Europe North Latin America America Source: US Census of Bureau 18
Slide 19: China's urbanisation ratio is still low
07 March 2013 China’s urbanisation ratio is still low China urbanisation rate Urban population as a % of total 2011e: 82.6% 2011e: 51% Source: World Bank 19
Slide 20: Energy Demand – Growth
07 March 2013 Energy Demand – Growth CHINA INDIA 180 50 150 40 Quadrillion BTU Quadrillion BTU 120 30 90 20 60 30 10 0 0 2005 2010 2015 2020 2030 2005 2010 2015 2020 2030 OIL GAS COAL NUCLEAR OTHER OIL GAS COAL NUCLEAR OTHER OECD AFRICA 300 30 250 25 Quadrillion BTU Quadrillion BTU 200 20 150 15 100
Slide 21: Oil Consumption per Capita
07 March 2013 Oil Consumption per Capita per capita oil cons World oil cons per capita OECD oil cons per capita 7,000 6,632 6,000 OECD=5 x China OECD=12.8 x India Per capita oil cons (litre) 5,000 4,000 3,801 3,521 World Av=1.7 x China 3,000 World Av=4.4 x India 2,651 2,039 2,000 1,485 1,060 1,000 7
Slide 22: Emerging market steel consumption is still below industrialised economies
07 March 2013 Emerging market steel consumption is still below industrialised economies Per capita steel consumption Per capita steel consumption - 2011 1400 1,300 1300 1,200 1200 1,100 1100 1,000 1000 900 900 kg per person 800 800 Kg per year 700 700 600 600 500 500 400 400 300 300 200 200 100 100
Slide 23: All Types Fleet Deliveries & Orderbook
07 March 2013 All Types* Fleet Deliveries & Orderbook 3,500 other ship types 3,000 2,500 gas carrier No. of Ships 2,000 container ship 1,500 bulk carrier 1,000 tanker 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Data source: Clarksons
Slide 24: Global Vessel Contracting
07 March 2013 Global Vessel Contracting 5,500 5,138 5,000 4,500 3,917 4,000 3,500 No of vessels 3,093 3,000 2,752 2,659 2,500 2,280 2,092 2,000 1,657 1,500 1,197 1,247 1,321 1,015 963 1,084 1,213 1,173 1,120 1,000 500 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 25: Outlook
07 March 2013 Outlook • Very challenging markets highlights importance of: • Global reach • Product diversity • Quality research and analysis • Being best in class • Clarkson Capital Management • Strong balance sheet • Enables investment in teams • Optimises ability to take advantage of opportunitie
Slide 26: Disclaimer
07 March 2013 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 WRIT