James Fisher And Sons Plc · LSE:FSJ
James Fisher And Sons — FY2023 Earnings Presentation
37 slides from James Fisher And Sons's earnings presentation, Apr 16, 2024
Slide 1: James Fisher and Sons plc
James Fisher and Sons plc Presentation of results for the year ended 31st December 2023 16th April 2024 www.james-fisher.com ©2024 James Fisher and Sons plc
Slide 2: Disclaimer
Disclaimer This presentation is confidential and is delivered to interested parties for information only. It is delivered solely on the basis that neither the whole nor any part of the information contained in this presentation may be disclosed to, or used or relied upon by, any other person or used
Slide 3: Today's agenda
Today's agenda 01 Business and strategic highlights 02 Financial results 03 Strategy and priorities 04 Conclusion 05 Q&A www.james-fisher.com ©2024 James Fisher and Sons plc 3
Slide 4: Business and strategic highlights
01 Business and strategic highlights www.james-fisher.com ©2024 James Fisher and Sons plc 4
Slide 5: 2023 Business highlights
2023 Business highlights ▪ Underlying results ahead of last year with underlying profit growth across all Divisions ▪ Robust Energy performance through oil and gas, with renewables returning to break-even ▪ Defence returned to profit but impacted by contract delays, strong growing revenue pipeline ▪
Slide 6: 2023 strategic commitments
2023 strategic commitments Embed One Improve Build a stronger James Fisher performance platform Deliver the business turn- Build a stronger, more Strengthen our financial position around through a new sustainable business, delivering and establish key foundations in business model, executed improved
Slide 7: Our focus as a service company
Our focus as a service company ▪ A services company operating in the Blue Economy ▪ Leveraging market and customer synergies across three Divisions ▪ Asset-light with a focus on pooling assets, people and resources For Energy For Defence For Maritime Transport Supporting the energy transition throug
Slide 8: Financial results
02 Financial results www.james-fisher.com ©2024 James Fisher and Sons plc 8
Slide 9: Early signs of progress
Early signs of progress Underlying operating Underlying operating Revenue up profit up1 margin1 (up 50bps) 3.8% 12.1% 6.0% Net debt 2 (covenant ROCE3 (up 130bps) Net debt 2 to EBITDA basis) £149.8m 2.75x 6.6% 1. Underlying operating profit is defined as operating profit adjusted for acquisition rela
Slide 10: Revenue up c.4% - improvement in Energy and Defence
Revenue up c.4% - improvement in Energy and Defence Revenue for year ended 31st December 2023 £m 2022 £m % change Energy 266.5 242.6 +9.9 Defence 72.5 68.2 +6.3 Maritime Transport 157.2 167.3 -6.0 Revenue (continuing operations) 496.2 478.1 +3.8 www.james-fisher.com ©2024 James Fisher and Sons plc 1
Slide 11: Underlying operating profit up c.12%
Underlying operating profit up c.12% - focus on improving margins, investing in capability Underlying Operating profit for year ended 31st December 2023 £m 2022 £m % change Energy 15.7 13.9 +12.9 Defence 1.5 (0.4) n/m Maritime Transport 23.3 18.8 +23.9 Corporate (10.9) (5.9) -84.7 Underlying operati
Slide 12: Energy
2023 £m 2022 £m % change Energy Total revenue 266.5 242.6 +9.9 Robust performance with strong Operating profit 15.7 13.9 +12.9 demand in Well Testing and Margin 5.9% 5.7% 20 bps Bubble Curtain and Artificial Lift ROCE 9.3% 8.0% 130 bps • Good performance across the majority of product lines • Revenu
Slide 13: Defence
2023 £m 2022 £m change Defence Total revenue 72.5 68.2 +6.3 Contract delays impacted Operating profit 1.5 (0.4) n/m performance - solid growing Margin 2.1% (0.6)% 270 bps revenue pipeline ROCE 2.1% (0.4)% 250 bps • Recovery in the energy sector driving increase in demand for commercial diving and hy
Slide 14: Maritime Transport
2023 £m 2022 £m % change Maritime Transport JF Tankships 76.1 78.9 -3.5 Fendercare 81.1 88.4 -8.3 Solid performance focused on Total revenue 157.2 167.3 -6.0 margin improvement and portfolio rationalisation Operating profit 23.3 18.8 +23.9 • Reduction in fuel pass through Margin 14.8% 11.2% 360 bps
Slide 15: Underlying results impacted by higher finance charges
Underlying results impacted by higher finance charges Underlying results for year ended 31st December 2023 £m 2022 £m Revenue 496.2 478.1 Operating profit 29.6 26.4 Finance income 3.2 0.7 Finance charges (24.5) (10.9) Profit before tax 8.3 16.2 Taxation (6.0) (4.7) Profit after tax 2.3 11.5 Underlyi
Slide 16: Reported results
Reported results Year ended 31st December 2023 £m 2022 £m Underlying operating profit 29.6 26.4 Impairment charges (28.1) (0.7) Refinancing (12.2) - Restructuring costs (5.7) (1.7) Amortisation of acquired intangible assets (1.1) (2.1) Disposal of businesses and assets 1.7 3.4 Other (2.8) (0.6) Repo
Slide 17: Cash flow
Cash flow Free cash flow from continuing operations for year ended 31st December 2023 £m 2022 £m Underlying operating profit from continuing operations 29.6 26.4 Depreciation and amortisation (less ROU1) 23.1 26.6 Net working capital (outflow) (2.5) (2.6) Net interest paid (12.8) (6.7) Tax paid (8.6
Slide 18: Net debt and committed facilities
Net debt and committed facilities Year ended 31st December 2023 £m 2022 £m Net Borrowings 201.1 185.8 Less: right-of-use lease (ROU) liability (61.2) (52.9) Add: ROU liability associated to finance leases (under IAS 17) 4.3 6.9 Add: bonds and guarantees 5.6 2.3 Other 1 Net debt – covenant basis 149.
Slide 19: 2024 Guidance
2024 Guidance ▪ Q1 2024 to date, performance is in line with the Board's expectations • Looking forward, we continue to see supportive end markets in 2024 and would expect to deliver further benefits from our turnaround initiatives ▪ Expect the refinancing of our current facilities in H2 2024 follow
Slide 20: Strategy and priorities
03 Strategy and priorities www.james-fisher.com ©2024 James Fisher and Sons plc 20
Slide 21: Progress on turnaround
Progress on turnaround One James Harnessing the Key priorities Fisher Blue Economy and enablers Despite a challenging year, Refocused as an engineering Completing groundwork on delivered initial steps of services company operating in our five key priorities, business turn-around the Blue Economy, le
Slide 22: Our turnaround roadmap
Our turnaround roadmap One James Fisher 2023: Fix 2024: Stabilise 2025: Grow 2026+ Focus Synergies and growth • Purpose and portfolio • Financial foundations • Unified company priorities Simplify Accountability and efficiency • OJF ExCo team • Three divisions Standardisation and resource sharing Del
Slide 23: 2024 priorities
2024 priorities • Lost Time Injury Frequency no greater than Exceptional Exceptional Safety is our key priority. We are focused on providing a safe, healthy and resilient 0.44 safety environment for everyone to thrive. • Total Recordable Case Frequency no greater than 2.09 and no fatalities • Reduci
Slide 24: Energy
Energy Market positioning and outlook • Delivers safe, sustainable products and services for two core markets, O&G and renewables • Backdrop of energy security and efficient supply driving strong demand for well SEABASS image testing, intervention and production optimisation, particularly in the US,
Slide 25: Defence
Agile image Defence Market positioning and outlook • Provides underwater systems and life support capabilities for the defence and commercial diving markets • Geopolitical and energy security trends continue, demand for undersea and Shadow seal image special operations capabilities set to increase •
Slide 26: Maritime Transport
Maritime Transport LMF image Market positioning and outlook • Leading the way in targeted coastal shipping and global oil and natural gas ship- to-ship transfers • Continues to play a key role in the critical supply of energy, petrochemicals and Fendercare image / alternative fuels brazil – Fenders
Slide 27: Conclusion
04 Conclusion www.james-fisher.com ©2024 James Fisher and Sons plc 27
Slide 28: Conclusion - delivering the turnaround
Conclusion - delivering the turnaround ✓ Attractive markets aligned to James Fisher’s focus on the Blue Economy ✓ Delivering early-stage progress on business turnaround, current year trading in line with expectations ✓ Establishing a robust and sustainable financial platform, with lower levels of de
Slide 29: Q&A
05 Q&A www.james-fisher.com ©2024 James Fisher and Sons plc 29
Slide 30: Thank you
Thank you www.james-fisher.com ©2024 James Fisher and Sons plc 30
Slide 31: Appendix
Appendix www.james-fisher.com ©2024 James Fisher and Sons plc 31
Slide 32: Strengthening our financial position
Strengthening our financial position Announced the sale of RMSpumptools for £90m ▪ Deleverages the balance sheet, accelerating sustainable recovery for the Group ▪ Solid platform to refinance in H2 2024 ▪ Enables the group to work towards a leverage range of 1.0-1.5x (Net Debt to EBITDA) ▪ Delivers
Slide 33: Encouraging progress against KPIs
Encouraging progress against KPIs 2023 actuals Progress made • MT and Defence met targets, key The best at HSE • LTIF: 0.98 vs target 0.48 focus on Energy • TRCF: 3.30 vs target 2.39 • Launch of Group-wide Exceptional 10% improvement on 2022 Safety initiative Meet our budget and forecasts Revenue on
Slide 34: Sustainability in all we do
Sustainability in all we do People Planet Partnerships Talent Strength, Equity, Diversity Portfolio choices, Resource Innovation, Customers and and Inclusion, Health and Safety efficiency, GHG emissions Suppliers, Governance • Scope 1 and 2 emissions reduction on track • Sustainability policy adopte
Slide 35: Income Statement
Income Statement Year ended Year ended 31 December 31 December 2023 2022 Total Total £m £m Continuing operations Revenue 496.2 478.1 Cost of sales (360.3) (350.9) Gross profit 135.9 127.2 Administrative expenses (109.6) (97.5) Impairment charges (28.4) (4.9) Refinancing costs (12.2) – Restructuring
Slide 36: Underlying operating profit - 2023
Underlying operating profit - 2023 Continuing operations Amortisation of acquired Impairment Disposal of As intangible charges/ Re- businesses Underlying 2023 reported assets (reversals) Refinancing structuring and assets Other / Tax results Continuing operations £m £m £m £m £m £m £m £m Revenue 496.
Slide 37: Underlying operating profit - 2022
Underlying operating profit - 2022 Continuing operations Amortisation Specific of acquired Impairment trade Disposal of As intangible charges/ receivables Re- businesses Underlying 2022 reported assets (reversals) provision structuring and assets Other/Tax results Continuing operations £m £m £m £m £