Braemar Plc · LSE:BMS
Braemar — Braemar Shipping Services — FY2022 Earnings Presentation
18 slides from Braemar's earnings presentation, Sep 5, 2022
Slide 1: Braemar Shipping Services plc FY Results Presentation
Braemar Shipping Services plc FY Results Presentation James Gundy — CEO Nick Stone - CFO Tris Simmonds — Coo eS
Slide 2: Introduction
Introduction * Excellent collective trading performance: Revenue up, profit up, transaction volumes up, debt down * This outperformance was due to our outstanding personnel and our competitive advantages * Optimised, resilient business model and enhanced fe brand enable growth ¢ Motivated team: Unit
Slide 3: Strategic steps
Strategic steps ¢ Successful delivery: non-core businesses disposed; shipbroking and corporate finance merged ¢ Rebuilt foundations, redefined strategy, strengthened balance sheet * On track to double profits by 2024: Our focus is generating more growth and enhancing revenue and profitability
Slide 4: Trading results
Trading results ¢ Revenue up, profits up, and margins up * Increased transaction growth and market share ¢ Investments in people, technology, and new offices generating positive returns
Slide 5: Financial summary
Financial summary Success across the board: Braemar is a diversified and durable shipbroker Underlying operating profit up 31%, and statutory reported profits up 209% Forward order book up by 15%, operating cashflow up by 61%, dividend covered three times, bank debt reduced by 69% Strong balance she
Slide 6: Revenue
Revenue Financial summary Feb -22 Feb -21 Revenue £101.3m 21% £83.7m Underlying operating profit £10:1m 31% £7.7m Reported profit £13.9m, 209% £4.5m Operating Cashflow £20.5m 61% £12.7m Net bank debt £2.8m* 69% £89 Dividend for the year 9p 80% 5p Forward order book $50.0m 15% $43.4m * Following rece
Slide 7: Growth / KPIs
Growth / KPIs Revenue ($’m) Revenue Per Head ($’m) Underlying Operating Profit Margin (%) Fig FYIQ.-FY20.-FY21—FY22 Fig FYI. FY20. FYI FY22 Fig FYIQ.FY20.- FYI FY22 Forward Order Book ($’m) Total Leverage Debt Ratio Annual Average Fig FYi9QFY20.—F¥2t Ss F¥22 Fig FYigQ-FY20.—F¥2t F222 © 2022 BRAEMAR
Slide 8: Revenue split by desk
Revenue split by desk £101.3m £83.7m £70.7m +21% YoY FY21 - Revenue FY16 - Revenue FY22 - Revenue © 2022 BRAEMAR
Slide 9: Opportunities for growth
Opportunities for growth Tankers Specialised Derivatives Dry Cargo Sale and Offshore and Finance Purchase Renewables toon ASKS MAKI MIN MWY MII KY LY Europe AAS KK VIL KYL AK MiddleEast YAKS fff S S S WA ape AK/K/ NAV VN KL WY WY Americas | TiE A v v vY v Very Strong AKA Moderate N/ Strong AK Opport
Slide 10: Shipping Market Outlook
Shipping Market Outlook * Shipping sector is the most exciting it has been in years * Growth in ton-miles and high volatility is creating more trade and more transactions * Lack of shipbuilding capacity limits newbuild arrivals until 2025 * Tanker and dry bulk newbuild orderbooks at their lowest in
Slide 11: Onwards and upwards
Onwards and upwards * On track to double the underlying operating profit to £18m within four years, as promised in October 2021 * Growth in fixture volumes that’s uncorrelated with market rates and generating alpha growth * Enhanced Braemar brand, offices, and people; launching our sustainability of
Slide 12: Braemar Outlook
Braemar Outlook * Forward order book up 15% on previous year end anda further 14% since * Our volume growth provides diversification, creates economies of scale, and reduces our exposure to shipping's natural cyclicality * Our increased scale and focused strategy position us well to seize an enhance
Slide 13: Appendix
Slide 14: Percentage of Box fleet waiting at port
Percentage of Box fleet waiting at port Source - Kiel Institute 12% I & Apr 20 Jul20 Oct 20 Jan 21 Apr 21 Jul 21 Oct 21 Jan 22 Apr 22 © Georgia South Carolina ™ North_Sea ™ Shanghai_Zhejiang ™ Hong_Kong_Guangdong m SCalifornia Container charter market continues to be supported by port congestion. Th
Slide 15: Ships on order
Ships on order 360 300 Million DWT 250 200 160 100 50 : 22822992928 228922299 dedegiaserdedaseaaae g Bek eoAGE ADE KOR HASH SSSSSssseSesessss SSSssgsssRsgRRRRRRRER LPG LNG Container Dry Cargo Tanker The tanker and dry bulk sectors both have small orderbooks by historical standards. Although the dry
Slide 16: Average sector earning - $k/day
Average sector earning - $k/day Source — Braemar 100 80 100 80 60 60 40 40 20 20 i} fe) a aaa oe aa & RI SRSSERERSSRERTSSSRLE wmSsgeresSeagseasaegssess s<s<gggesLeegsteseASsgsgsgssg a RARE SSSF HSH SHHBSES EGA - VLCC-Avg ‘Suezmax-Avg LR2-Avg Aframax-Avg * Crude and product stocks are low and refiner
Slide 17: Revenue growth analysis
Revenue growth analysis Revenue (£m) Revenue FY22 FY2 growth (%) Volume growth
Slide 18: James Gundy, Nick Stone, Tris Simmonds contacts
JAMES GUNDY Chief Executive Officer James.Gundy@Braemar.com NICK STONE Chief Financial Officer Nick.Stone@Braemar.com TRIS SIMMONDS Chief Operating Officer Tris.Simmonds@Braemar.com
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