Clarkson PLC · LSE:CKN
Clarkson — H1 2014 Earnings Presentation
20 slides from Clarkson's earnings presentation, Aug 18, 2014
Slide 1: Interim Results
Interim Results 30 June 2014 Clarkson PLC 18 August 2014 Interim Results www.clarksons.com
Slide 2: Agenda
Agenda Headline results Divisional performance The market Outlook 18 August 2014 Interim Results www.clarksons.com 2
Slide 3: Results Summary
Results Summary June 2014 June 2013 Change £m £m % Revenue 111.7 89.1 +25% Profit before taxation (Before acquisition and exceptional costs) 15.8 10.8 +46% Exceptional cost - (1.0) Acquisition costs (1.7) (0.8) Profit before taxation (After acquisition and exceptional costs) 14.1 9.0 +57% Earnings p
Slide 4: Revenue
Revenue £111.7m Research +£0.1m or 2.2% Research, £4.7m £89.1m Support, £14.1m Support +£6.9m or 95.8% Financial, £8.4m Research, £4.6m Support, £7.2m Financial +£4.5m or 115.4% Financial, £3.9m Broking +£11.1m or 15.1% Broking, £84.5m Broking, £73.4m H1 2013 H1 2014 18 August 2014 Interim Results w
Slide 5: Revenue by half year
Revenue by half year Research £111.7m £108.9m Support £4.7m Financial £5.1m £9.2m £14.1m Broking £89.1m $14.1m $12.3m £7.7m £8.4m £4.6m £7.2m £3.9m $6.0m $138.8m $141.7m £86.9m £84.5m £73.4m $112.6m H1 2013 H2 2013 H1 2014 H1 2013 H2 2013 H1 2014 Average US$ rate 1.5340 1.5972 1.6771 Closing US$ rat
Slide 6: Divisional performance - Profit
Divisional performance - Profit 2013 H1 2013 H2 2014 H1 £m £m £m Broking 12.4 15.1 14.9 Financial (2.8) (0.5) 0.3 Support 1.6 1.5 2.5 Research 1.3 1.7 1.4 18 August 2014 Interim Results www.clarksons.com 6
Slide 7: Profit – restated for Constant Currency
Profit – restated for Constant Currency 2013 H1 2014 H1 % Actual Actual £m £m Broking 12.4 14.9 +20% Financial (2.8) 0.3 Support 1.6 2.5 +56% Research 1.3 1.4 +8% 18 August 2014 Interim Results www.clarksons.com 7
Slide 8: Profit – restated for Constant Currency
Profit – restated for Constant Currency 2013 H1 2014 H1 % 2013 H1 2014 H1 % Actual Actual Actual Restated £m £m £m (@ 2013 H1 rate) £m Broking 12.4 14.9 +20% 12.4 17.4 +40% Financial (2.8) 0.3 (2.8) 0.4 Support 1.6 2.5 +56% 1.6 2.5 +56% Research 1.3 1.4 +8% 1.3 1.4 +8% Average US$ rate 1.5340 1.6771
Slide 9: Net Funds
Net Funds Jun 2014 Dec 2013 £m £m Cash and cash equivalents 75.1 96.9 Current investments 25.2 25.2 Reserved for bonus (full cost) (26.3) (47.1) Net cash 74.0 75.0 Borrowings - - Net available funds 74.0 75.0 Reserved for dividend (4.0) (7.0) 18 August 2014 Interim Results www.clarksons.com 9
Slide 10: Movement in Net Funds
Movement in Net Funds 75.0 -6.9 74.0 15.6 -5.0 -1.0 -0.4 -1.0 -2.3 Net Funds Dec 13 Dividend Taxation Pension Capex Debtors / Acquisitions (net) Profit Net Funds Jun 14 Creditors 18 August 2014 Interim Results www.clarksons.com 10
Slide 11: Balance Sheet
Balance Sheet 2007 2008 2009 2010 2011 2012 2013 2014 £m £m £m £m £m £m £m £m Fixed Assets 25.4 29.1 27.4 21.6 21.3 23.5 21.9 20.8 Intangibles 47.2 32.3 32.5 32.7 40.3 39.8 40.2 40.5 72.6 61.4 59.9 54.3 61.6 63.3 62.1 61.3 Investments 16.4 16.1 14.9 13.2 1.9 1.9 1.8 1.8 Working Capital (25.8) (22.0)
Slide 12: Dividends: Pence per Share
Dividends 55 50 45 Pence per Share 40 37 35 33 32 30 30 26 27 26 25 24 20 22 16 15 11 10 9 19 21 16 16 17 18 18 12 14 5 9 10 6 7 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Interim Final 18 August 2014 Interim Results www.clarksons.com 12
Slide 13: 18 August 2014 Interim Results www.clarksons.com
18 August 2014 Interim Results www.clarksons.com 13
Slide 14: The Markets
The Markets 18 August 2014 Interim Results www.clarksons.com 14
Slide 15: ClarkSea Index
ClarkSea Index Average Maximum Minimum 55 50 45 25 year Average – 16,059 (+46% on H1 average) 40 10 year average – 18,858 (+71% on H1 average) 35 30 25 20 15 10 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 2013 2014 ytd Averag
Slide 16: World Seaborne Trade
World Seaborne Trade major dry bulk minor dry bulk crude oil oil products liquefied gas containers other dry cargo World Population 11 11 10 10 1990: 0.80 tonnes per capita 9 9 2014: 1.44 tonnes per capita 8 8 Billion People Billion tonnes 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 1990 1991 1992 1993 1994 199
Slide 17: Fleet Deliveries & Orderbook
Fleet Deliveries & Orderbook 2,500 gas carrier 2,000 container ship No. of vessels 1,500 1,000 bulk carrier 500 tanker 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Data Source: Clarksons 18 August 2014 Interim Results www.clarksons.com 17
Slide 18: CCM Transactions
CCM Transactions June 2014 May 2014 May 2014 April 2014 $360,000,000 $650,000,000 $139,700,000 $92,300,000 Convertible Senior Notes Senior Unsecured Notes Initial Public Offering Common Stock Offering Sole Co-Manager Co-Manager Joint Book-Runner Co-Manager April 2014 March 2014 March 2014 February 2
Slide 19: Outlook
The heart of global shipping… Outlook 1. Execution of strategy 2. Continued volume growth 3. General rate improvement 4. Increased volatility 5. Increased FOB 6. Currency caution Enabling global trade 18 August 2014 Interim Results www.clarksons.com 19
Slide 20: Disclaimer
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 WRITTEN CONSENT OF