Braemar Plc · LSE:BMS
Braemar — H1 FY2022/23 Earnings Presentation
15 slides from Braemar's earnings presentation, November 2022
Slide 1: Mid-Year Results Presentation
Braemar Plc | — Mid-Year Results Presentation | James Gundy —- CEO Nick Stone — CFO Tris Simmonds — coo
Slide 2: Introduction
Introduction ¢ Mid-year results significantly ahead of original expectations. ¢ Revenue and fixture volumes continue to grow, and profits doubled. * Success due to focus on core strengths and executing the shipbroking-centred growth strategy. * Growth is due to increased scale, global reach, sectora
Slide 3: Trading results
Trading results ¢ Revenue is up 46%; underlying operating profits up 95%. ¢ No bank debt; (20m) in Feb 2020. Net cash of £1.8m and a stronger balance sheet. ¢ Continuing to increase transaction volumes. ¢ Strong FX tailwinds for FY22/23. ¢ Very strong operating cashflow supports a progressive divide
Slide 4: Financial summary
Financial summary Aug - 22 Aug - 21 Underlying operating profit £10.9m 95% £5.6m Operating cashflow £12.3m 223% £3.8m Feb - 22 Net bank cash/(debt) £1.8m - (£9.3m) © 2022 BRAEMAR
Slide 5: Shipbroking growth and KPIs
Shipbroking dat ih G rowth and KPIs a from leverage ratio Revenue ($m) Revenue Per Head ($'m) Underlying Operating Profit Margin (%) HYIo HY20 HY2i Hy22 Hy23 Hye Hy20 Hy22 Hy23 HY Hy20 HyZI Hy22 Hy23 Forward Order Book ($'rn) Total Leverage Debt Ratio Annual Average Hye HY20 Hv Hv22 Hr23 “ope Fv20 F
Slide 6: Revenue - Split by Desk
Revenue - Split by Desk a oa Pppogamess aes exer HY22/23 Corperate gy - £69.4m +46% y/ men pee eageceey ae rs 3% ‘Special ee By Secures ez) Sale & Purchase Vallone 208 Dry Cargo 23% HY21/22 Comer! £47.4m corporate "e oftshore Energy Someos Deep Sea “ Specialised Tankers Tankers: 19% 8 Dry Cargo 24%
Slide 7: Revenue split by segment
Revenue split by segment * Chartering: Revenue is up 68% and underlying operating profit is up 176% on HY21/22 o Tanker and Offshore outlooks continue to be favourable. o Rates expected to remain firm. o Dry Cargo rates have declined from major highs, o Lack of newbuildings for 2022-24 creates a rat
Slide 8: Enhancing Securities offering
Enhancing Securities offering ¢ New products added. ¢ Natural Gas desk introduced to help clients navigate fluctuations in the energy market. ¢ Anatural complement to our market-leading shipping Securities desks. * Securities offering has grown from 3% of revenue in HY18/19 to 12% in HY22/23.
Slide 9: Opportunities for growth
Opportunities for growth Tankers Specialised Derivatives Dry Cargo Sale and Offshore and Finance Purchase Renewables London SA vf SY Europe WA v Y v ue eee eee hose Pl w Yev anette ff G\ EY © 2022 BRAEMAR
Slide 10: Shipping Market Outlook
Shipping Market Outlook * Huge opportunities in majority of shipping sectors. * Strong dynamics in most of Braemar’s core markets. ° Freight rates and vessel second-hand prices remain high. * Sanctions are materially altering trade routes. * Major growth in ton-miles, and likely to be sustained * Ta
Slide 11: Braemar outlook
Braemar outlook * Trading is exceeding expectations, and FY22/23 is looking very positive. * Success due to outstanding team and continued execution of growth strategy. * On target to double the underlying operating profit to £18m within four years — as promised in October 2021. * Free of bank debt.
Slide 12: Contact details
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
Slide 13: Appendix
Slide 14: Baltic Tanker Indices and Spot Shipping Market
2500 2000 1500 1000 00 ° Baltic Tanker Indices Jan-09 Jan40 Jan-11 Jan-12 Jan-13. Jan-44 Jan-tS Jan-t6 Jana? Jan-18 Jan-19 Jan-20 Jan-24 Jan-22 —talticClean Tanker Index index ——Baltic Dirty Tanker index index Sanctions are shifting trade flows, and supply chain inefficiencies are making average voy
Slide 15: Container ship and dry bulk market
20 6 10 Container ship Demo. u me g e ¢ 8 g 8 e 8 8 g § ES 5 5 § 5 5 a § & 5 Upto Panamax Over Panamax In two years the timecharter rate increased by 10x. Rates now returning to normal as supply chain inefficiencies ease. Distance-adjusted demand has grown slower than fleet capacity. Impact on conta