Braemar Plc · LSE:BMS
Braemar — FY2024 Earnings Presentation
32 slides from Braemar's earnings presentation, May 23, 2024
Slide 1: FY24 Results
@) braemar FY24 Results ‘Robust trading performance with a platform for growth’ 23 May 2024
Slide 2: Management team
Management team James Gundy - CEO James has worked in shipbroking for over 35 years, specialising in Tankers and Sale & Purchase projects. He became the Chief Executive Officer of Braemar’s Shipbroking Division after the acquisition of ACM Shipping Group PLC, where he had also served as CEO. James w
Slide 3: Business Update
® braemar Business Update ‘Our strategy is delivering a more diversified and resilient business James Gundy, CEO Braemar -2024 3
Slide 4: Highlights
Highlights FI52.8m Revenue (FY23: £152.9m) Revenue sustained following 51% growth in the prior year (FY22: £101.4m) FI8.AM Underlying operating profit! (FY23: £20.1m) Performance in line with market expectations £1.0m Net cash (FY23: £6.9m) Positive cash position maintained +8% Growth in total fixtu
Slide 5: Our business
Our business 400+ people in 16 offices across 12 countries with 3 divisions providing a fully integrated Shipbroking and Securities offering for our clients << Working with our clients to meet their short and long-term chartering requirements using our expertise and market intelligence Commission re
Slide 6: Building resilience
Building resilience Over recent years the Group has been simplified and focused on successfully building a more diversified revenue mix in Shipbroking and Securities 2014 Braemar acquires ACM Growing the overall coverage of the Group, particularly in Tankers FY14 Revenue! £41m Notes: 2018 Acquisitio
Slide 7: Investment case
Investment case The Group has a clear investment case led by a strong and experienced management team Growth Strategy Clear growth strategy; hiring talent, geographic expansion and M&A The Group is a consolidator in a fragmented market, providing opportunities to build teams as well as grow through
Slide 8: Growth Strategy
Growth Strategy ‘We have a very clear growth strategy that we will continue to exécute’ Tris Simmonds, COO Braemar - 2024 8
Slide 9: Growth strategy
Growth strategy Three clear areas for growth Organic Expansion Opportunities to expand capabilities with new desks and grow existing teams Geographic expansion Product expansion Investment in training and retention Actions taken Opened Corporate Finance offices in Singapore and Athens Launched Natur
Slide 10: Growth opportunities
Growth opportunities Continue to make progress and significant opportunities remain New European OTF to New UK OTF' to be be established established TANKERS SPECIALISED ,.,8P:. DRY CARGO S&P OFFSHORE SECURITIES ux eo oO 0 o e@ 90 0 Europe @) @) @) @) @) @) O Middle East @) @) O 6) @) O ©) spac 0 0 0
Slide 11: Our people
Our people Our people are critical to our ongoing success Headcount 409 Average over the financial year Trainee Brokers 35 Strong pipeline of future brokers to support growth ® braemar No. of Brokers 250 Average over the financial year Development 6 Number of promotions from within to desk heads Div
Slide 12: Financial Performance
® braemar Financial Performance ‘Diverse revenue mix delivering a resilient performance’ Grant Foley, CFO Braemar - 2024 12
Slide 13: Income Statement
Income Statement Underlying operating profit in line with expectations and double that of FY21 FY24 FY23 VAR Revenue £152.8m £152.9m - Operating expenses (excluding acquisition related expenditure) (£134.7m) (£1382.8m) (1%) Underlying operating profit £18.1m £20.im (10%) Margin 12% 13% Acquisition-r
Slide 14: Well Balanced Revenue Mix
Well Balanced Revenue Mix The Group is delivering a more diversified revenue mix by sector and geography Sub-Sector = Securities = Corporate Finance = Sale and Purchase Offshore = Dry Cargo ™ Specialised Tankers = Tankers ® braemar FY24 Geography £152.9m £152.8m 15% 14% Europe & ROW =APAC =USA, FY22
Slide 15: Increasingly resilient
Increasingly resilient The Group achieved £153m revenue, despite mixed market conditions Chartering Investment Adv. Risk £3.0m Adv. £13.4m || Improved Tanker performance was driven by acquisitions. co Dry cargo revenue was £14m lower than i the prior year, primarily due to lower rates. £152.9m eal e
Slide 16: Chartering Volumes and Rates
Chartering Volumes and Rates Chartering revenue grew 5%. Growth in overall fixture volumes of 8% offset lower Dry Cargo rates £(6.4)m Chartering fixture volumes grew by 8%, driven by the acquisitions in Tankers and the growth of the offshore business. This was offset by significantly weaker rates in
Slide 17: Operating costs
Operating costs! Operating costs up just 1% on the prior year, mainly driven by foreign exchange movements. £2.6m £134.0m . . Staff cost decreased due to a reduction in £1.0m £0.im bonuses payable, partly offset by the increase ee P| in headcount £132.6m £(2.8)m . + Travel & Entertainment cost incre
Slide 18: Liquidity
Liquidity Positive cash position maintained VARIANCE Year-end cash position lower than prior year Cash and cash equivalents £27.9M £34.7m (£6.7m) due to payments of tax on account (Eim), cost of internal independent investigation (£2.6rm) as well as some bonus payments paid before the year end (£2m)
Slide 19: Key performance indicators
Key performance indicators Revenue Revenue Per Head! £152.9m £152.8m £398k £373k £101.4m FY22 FY23 FY24 FY22 FY23 FY24 Forward Order Book Net (Debt) / Cash | OT al FY22 FY23 FY24 $82.6m FY22 FY23 FY24 Notes: 4. Total revenue divided by the total number of heads ® braemar 2. Underiying Operating Prof
Slide 20: Market & Outlook
® braemar Market & Outlook ‘Outlook for the shipping industry remains positive’ James Gundy, CEO Braemar - 2024 20
Slide 21: Global fleet
Capaeity (billon DW 1? Global fleet Ageing fleet with an increasing, albeit relatively low, newbuild order book underpinning rates os Global Fleet' 50 gs Fleet Over 15 Years Old Newbuild Order Book oF FS rr 2 9 8 3 2 2 $ 20 9 a} 5 15 3 8 8 8 20 § 6 2 2 1 6 10 10 | I || - ) 2004 2006 2008 2010 2012 2
Slide 22: Rates
Rates Lower Dry Cargo rates in 2023 but expected to stabilise, the outlook for Tankers remains positive Braemar Index’ Tankers 100 to) 201 «2017 S208. 2018» 2020 2021» 2022 2028 2024 350 300 Dry 250 200 160 400 50 2016 2018 2019 2020 2022 ° Index: 100 2016 «207 = 2018._ = 2019-2020 2021» 2022 2023 2
Slide 23: Summary and Outlook
Summary and Outlook Summary Robust revenue performance following on from very strong prior year, with clear strategy delivering i Fixture volumes up 8% ®& Acquisitions performing well K Maintained net cash position — Total dividend 18p, up 8% Outlook I Outlook for the shipping industry remains posit
Slide 24: Braemar - 2024 24
Braemar - 2024 24
Slide 25: Appendix
® braemar . Appendix
Slide 26: EPSG
EPSG Making a positive impact Qe Goal — Net zero by 2050 — Protect 10,000km*? of marine biodiversity area by 20380 — Facilitate responsible and sustainable shipping Actions — Focus on reducing our carbon footprint — Offset our carbon footprint through the purchase of carbon credits ® braemar Ge | Go
Slide 27: Facilitating climate-smart shipping
Facilitating climate-smart shipping We incorporate climate-smart expertise into our client services, taking the lead and collaborating with the maritime industry to achieve shared EPSG goals OFFER CARBON OFFSETS Braemar’s Carbon Offsets platform was launched in April 2022. We are the first shipping
Slide 28: Revenue Split
Revenue Split Overall Growth in Chartering and Risk advisory offsetting weaker Investment Advisory revenues FY24 FY23 VAR % Chartering £104.0m £99.im 5% Investment advisory £25.7m £36.8m (80%) Risk advisory £23.1m £17.0m 36% Total £152.8m £152.9m (0.1%) ® vraomar Braemar - 2024 28
Slide 29: Forward order book (USD)
Forward order book (USD) Forward order book up 47% from prior year with strong growth in Sale & Purchase Split by Date Split by Type $56.2m FY23 FY24 FY23 m< 12 months ™12 - 24 months => 24 months mChartering Notes: braemar Taken at 28 February 2023 and 29 February 2024 §$82.6m FY24 uSale & Purchase
Slide 30: GBP-USD rates
GBP-USD rates GBP-USD FX rates over time Mar-21 Mar-22 Mar-23 Mar-24 FY24 FY23 Average rate 1.25 1.21 Spot rate (29-Feb 2024/28- Feb 2023) 126 1.20 Forward currency contracts: Notional value Sti9m $123m Average rate 1.25 4.22 Braemar- 2024 30
Slide 31: Disclaimer
Disclaimer The information contained within this presentation is given in good faith based on the current market situation at the time of preparing this report and as such is specific to that point only. While all reasonable care has been taken in the preparation and collation of information in this
Slide 32: Thank You
® braemar . Thank You