Slide 1: FY23 Finals & H1 FY24 Interims
FY23 Finals & SS = Fy 24 Interims | increasingly resilient business 29 November 2023 (B) braemar
Slide 2: Management team
Management team James Gundy — Chief Executive Officer 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 our merger with ACM Shipping Group PLC, where he had also serv
Slide 3: Executive summary
Executive summary WE HAVE DELIVERED STRONG RESULTS AND ARE WELL PLACED TO CONTINUE TO BUILD UPON THIS ©® ©® © FY23 Record revenue and profits Revenue of £152.9m (increase of 51%), underlying profit of £20.1m (increase of 100%) Full year dividends up 33% on prior year 12p dividend for full year, FY22
Slide 4: braemar
braemar
Slide 5: Our business
Our business A FULLY INTEGRATED PRODUCT OFFERING FOR OUR CLIENTS We provide expert services to our clients, arranging deals and earning commissions in our three business segments braemar braemar ms = es | NAAT Shipping Investment Advisory- h@hartering Shipping Risk Advisory ® New Build ® Tankers ® S
Slide 6: Two years on....
Two years on.... THE FIRST PHASE OF THE PLAN HAS BEEN SUCCESSFULLY ACHIEVED ‘ab Dispose of non-core businesses Cory Brothers, AqualisBraemar and Wavespec disposals a~e Focus on shipbroking and diversify within that space Acquired Southport Maritime Inc. and Madrid Tanker Desk (“MSA”) Launched Natura
Slide 7: Independent investigation complete
Independent investigation complete Issue Historical 2006 to 2013 transactions Internal independent investigation Committee chaired by Non-Executive Chairman External advisors Investigation completed by FRP Advisory with external legal counsel Outcome — Investigation was thorough, time consuming and
Slide 8: Clear strategy is delivering growth, diversification and resilience
Clear strategy is delivering growth, diversification and resilience REVENUE AND FIXTURE NUMBERS HAVE GROWN SIGNIFICANTLY OVER THE PAST TWO YEARS, AS WELL AS MARKET SHARE FOR SECURITIES H1 FY22 TO Hi FY24 FY21 TO FY23 REVENUE! (£) & FIXTURES (NO.) REVENUE! (£) & FIXTURES (NO.) 4,264 2,950 5,264 i 5,8
Slide 9: Financial performance: Full Year FY23
Financial performance: Full Year FY23° Grant Foley, CFO
Slide 10: Income statement
Income statement STREAMLINED BUSINESS DELIVERED OUTSTANDING PERFORMANCE Strong revenue performance across all FY23 FY22 VAR % business segments, with fixture numbers up 32% year on year and the Group benefiting from a stronger US Revenue £162.9m £101.3m 51% dollar Operating expenses £1382.8m £91.3m
Slide 11: Well balanced revenue mix
Well balanced revenue mix BALANCED REVENUE MIX WITH GROWTH IN ALL AREAS, HELPING TO BUILD RESILIENCE THROUGH THE CYCLE FY22 FY23 Corporate finance 3% Corporate finance 7% Specialised Tankers £101.3M 11% Specialised Tankers N% Offshore 4% Offshore 4% © 2023 BRAEMAR "1
Slide 12: Geographically diverse
Geographically diverse ACQUISITIONS WILL FURTHER IMPROVE GEOGRAPHIC REACH AND DIVERSITY FY22 FY23 RoW 4% £101.3M £152.9M © 2023 BRAEMAR 12
Slide 13: Operating expenses
Operating expenses AS EXPECTED, INCREASE IN REVENUE DRIVING INCREASED BROKER 90% OF REVENUE £35.4m £1.6m eZ a - £91.3m Broker costs Share-based payments FY22 Professional fees Other cOsTS £132.8m FY23 87% OF REVENUE © 2023 BRAEMAR 13
Slide 14: Strong underlying performance resulting in improved cash position
STRONG UNDERLYING PERFORMANCE RESULTING IN IMPROVED CASH POSITION, PROVIDING THE BUSINESS WITH LIQUIDITY FOR INVESTMENT VARIANCE Cash and cash equivalents £34.7m £14.0m £20.8m Borrowings (£27.8m) (£23.3m) (£4.6m) Net cash / (debt) £6.9m (£9.3m) £16.2m Movement in net debt includes receipt from the d
Slide 15: Key performance indicators
Key performance indicators CLEAR STRATEGY DELIVERING IMPROVEMENTS ACROSS ALL KPIS REVENUE REVENUE PER HEAD OPERATING PROFIT MARGIN! 10% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FORWARD ORDER BOOK NET (DEBT)/CASH DIVIDENDS +33% £6.9m +80% 8p 7p 5p 4 | | FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY2
Slide 16: Financial performance
inancial performance
Slide 17: H1 FY24 Income statement
Hi FY24 Income statement THE BUSINESS CONTINUES TO GENERATE STRONG RESULTS Hi FY24 Hi FY23 VAR % Revenue £749m £69.4m 8% Operating expenses! (£66.6m) (£60.5m) 10% Underlying operating Profi ony 84m = B9M (6%) Foreign exchange (£0.8m) £2.0m (139%) Acquisition-related expenditure? (£0.9m) - - Reported
Slide 18: Resilient revenue mix in H1
Resilient revenue mix in H1 INCREASING DIVERSIFICATION PROVIDING A BALANCE AGAINST WEAKER MARKETS _ —— | | £(6.6)m £69.4m Tankers Dry Cargo Hi FY23 Specialised £1.5m Offshore a £17m £74 9m B(L7)m Strong Tanker and Securities performance, more than offsetting weaker Dry Cargo and Corporate Finance re
Slide 19: H1 Operating expenses
Hi Operating expenses INCREASE IN OPERATING EXPENSES PRIMARILY DUE TO INCREASED BROKER COSTS FROM HIGHER REVENUE £2.4m £66.6m £0.8m Haein AS 2m £3.6m — £60.5m HIFY23 Broker costs —Other Hi FY24! Fx Acq. costs Hi FY24 Notes ‘Excludes foreign exchange and acquisition-related expenditure © 2023 BRAEMAR
Slide 20: Liquidity position continues to provide capacity for investment
LIQUIDITY POSITION CONTINUES TO PROVIDE THE BUSINESS INVESTMENTS FOR FUTURE GROWTH Hi FY24 WITH CAPACITY TO MAKE Hi FY23 VARIANCE Cash and cash equivalents £29.1m £24.1m £5.0m Borrowings (£25.9m) (£22.3m) (£3.7m) Net cash £3.1m £1.8m £1.3m © 2023 BRAEMAR 20
Slide 21: H1 Key performance indicators
Hi Key performance indicators REVENUE GROWTH OF 8% ACHIEVED WITH WEAKER OPERATING PROFIT MARGIN DUE TO INVESTMENTS REVENUE REVENUE PER HEAD OPERATING PROFIT MARGIN! sHt =H2 , £83.5m e216k _ |£53.9m £147k FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 FORWARD ORDER BOOK NET (DEBT)/CASH DIVIDENDS | 3m |
Slide 22: Tris Simmonds, COO
Tris Simmonds, COO L braemar ...
Slide 23: Identifying opportunities
Identifying opportunities WE HAVE A CLEAR AND FOCUSSED APPROACH TO GROWTH OPPORTUNITIES © 7] ry EB Profit enhancing Business/team needs to be profitable with clearly identifiable revenue and cost synergies Complimentary / Additive Must compliment or be additive to our existing geographic coverage an
Slide 24: Growth opportunities
Growth opportunities MULTIPLE OPPORTUNITIES REMAIN ACROSS ALL VERTICALS AND GEOGRAPHIES Acquired Madrid Tanker Hired Natural Gas team & Hired Dry Cargo Desk launched Oil derivatives team TANKERS SPECIALISED SECURITIES OFFSHORE pone UK s «) ©) e <) s ) Europe ©) «) O <) <) O ) Middle East @) @) O O O
Slide 25: Successful execution
Successful execution ACQUISITIONS ARE REALISING SYNERGIES AND ADDING VALUE TO THE GROUP SOUTHPORT MARITIME INC. iIMSA MADRID SHIPPING ADVISORS Florida based, significantly enhancing the Group’s coverage of the Americas Leader in crude and refined products Highly complementary to the Group’s existing
Slide 26: Securities
Securities SIGNIFICANT REVENUE GROWTH IN 3 YEARS, WITH FURTHER OPPORTUNITIES FOR GROWTH FY21 TO FY23 FULL YEAR REVENUE H1 FY22 TO FY24 Hi REVENUE FY21 FY23 H1FY22 H2 FY22 Hi FY23 H2 FY23 H1 FY24 Securities offering is highly complementary to our shipbroking offering Provides insight to our clients a
Slide 27: Growth for FY25 onwards
Growth for FY25 onwards INTERNAL AND EXTERNAL OPPORTUNITIES TO DRIVE GROWTH Group is well positioned to support clients through the ‘Green Energy Transition’ Continued selective hiring Move into new markets Targeted acquisitions in a fragmented market EU ETS — provide a service for our shipping clie
Slide 28: Summary and outlook
Summary and outlook James Gundy, CEO
Slide 29: Outlook
Outlook FY23 WAS A RECORD PERFORMANCE FOR THE GROUP FY24 ©) Revenue in line with market Forward Order Book continue expectations Underlying operating profit (excluding acquisition-related expenditure) in line with consensus! ormance Maintain progressive dividend policy Notes ' Consensus underlying o
Slide 30: To conclude
To conclude BUILDING AN INCREASINGLY RESILIENT BUSINESS a “a SHIPBROKING % SECURITIES wr TIN PROFIT [© DIVIDEND Grow market share Acquisitions Hiring New markets Underpinned by balance sheet strength @eee Grow Securities offering ® Establish OTF ® Launch new complementary products Deliver sustainabl
Slide 31: ae cae cE
ae cae cE 1a = braemar Y
Slide 32: Appendix
Appendix
Slide 33: ESG
EPSG MAKING A POSITIVE IMPACT SOCIAL GOVERNANCE Goal Goal — Activate global — Think globally, act locally to — Collect data and report programmes for bringing drive benefit to our on ESG metrics aligned to diverse talent into the communities strategy workforce Actions Actions Develop diverse talent
Slide 34: Facilitate climate-smart shipping
Facilitate climate-smart shipping We incorporate climate-smart expertise into our client services, and we will collaborate with the maritime industry to achieve shared ESG goals. OFFER CARBON OFFSETS ENABLE EU-ETS COMPLIANCE STRATEGIC ADVISORY Braemar’s Carbon Offsets platform was launched in Ships
Slide 35: Revenue Split
Revenue Split WITH STRONG GROWTH ACROSS ALL BUSINESS LINES Hi FY24 Hi FY23 VAR % Investment advisory £36.8m £26.3m 40% £12.4m £16.3m -24% Chartering £99.2m £63.0m 57% £52.6m £44.9m 17% Risk Advisory £17.0m £12.0m 42% £9.9m £8.2m 21% Total £152.9m £101.3m 51% £74.9m £69.4m 8% © 2023 BRAEMAR
Slide 36: Forward order book (USD)
Forward order book (USD) FORWARD ORDER BOOK IS 21% HIGHER THAN AT H11IN THE PRIOR YEAR BY DATE! BY TYPE §$56.2m < 12 months 812 - 24 months $19.3m => 24 months = Chartering =SeP 7m FY22 =< 6 months 6 - 18 monins => 48 months = Chartering =SeP H1 FY23 H1FY24 H1 FY23 H1 FY24 Notes 1 Represents the est
Slide 37: GBP-USD rates
GBP-USD rates GBP/USD 1.450 1.400 1.350 1.300 1.250 1.200 1.150 1.100 1.050 1.000 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 FY23 FY22 Average rate 12145 13723 Spot rate (28-Feb) 1.2020 13419 Hi Hi FY24 FY23 Average rate 1.2544 12473 Spot rate (31-Aug) 1.2673 11622 © 2023 BRAEMAR a7
Slide 38: 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 39: Thank You