Braemar Plc · LSE:BMS

Braemar — Braemar Shipping Services — FY2015/16 Earnings Presentation

25 slides from Braemar's earnings presentation, May 2016

  1. Slide 1: Braemar Shipping Services plc Preliminary Results Presentation May 2016

    Braemar Shipping Services plc Preliminary Results Presentation May 2016

  2. Slide 2: Agenda

    Agenda  Group Strategy and Business Model  Group Financial Highlights  Shipbroking Division  Technical Services Division  Logistics Division  Group Results  Outlook 2 www.braemar.com

  3. Slide 3: Group Strategy

    Group Strategy  To continue to build our diversified global portfolio of businesses in growth sectors  To continue to develop service provision to shipping, marine, energy, offshore and insurance markets  To continue to grow our global, integrated geographic footprint  Shipbroking division to ma

  4. Slide 4: Our Business Model

    Our Business Model www.braemar.com

  5. Slide 5: Successful Execution of Strategy

    Successful Execution of Strategy Long-term growth in volatile markets Group Revenue 160 140 120 100 £m 80 60 40 20 0 2011/12 2012/13 2013/14 2014/15 2015/16 Shipbroking Technical Logistics Note that 2014/15 includes 7 months of ACM revenue within the Shipbroking section 5 www.braemar.com

  6. Slide 6: Group Financial Highlights

    Group Financial Highlights FY 2015/16 FY 2014/15 FY 2013/2014 Revenue £159.1m £145.6m £125.5m Underlying* £13.8m £11.5m £9.3m Pre-Tax Profit Underlying* 34.70p 32.28p 33.51p EPS * Excluding acquisition related expenses and non-recurring items Restated following closure of Brazil operations Financial

  7. Slide 7: Shipbroking Division - Operating Review

    Shipbroking Division - Operating Review WHAT WE DO BUSINESS GROWTH DRIVERS  Tanker chartering  Seaborne Trade – Crude Oil – Clean Petroleum Products – Liquefied Petroleum Gas (“LPG”)  Transaction volumes – Liquefied Natural Gas (“LNG”) – Specialised tankers – Forward Freight Agreements (“FFA) – P

  8. Slide 8: Shipbroking Division - Operating Review

    Shipbroking Division - Operating Review FY 2015/16 FY 2014/15 FY 2013/14 Revenue £70.7m £53.6m £40.9m Underlying* Operating £9.7m £5.6m £2.6m Profit • Underlying operating profit increased by over 70%, following our 2014 merger to form Braemar ACM Shipbroking • Diversity of Shipbroking activity has

  9. Slide 9: Shipbroking Division – 2015/16 Revenue

    Shipbroking Division – 2015/16 Revenue • Bottom of cycle • Long term growth opportunity  Strong current • Strength in Asia/Australia market  Oil production driven Dry Cargo 14%  Leader in market sector • Major player • Synergy with Tankers project team S&P 18% Tankers 62% Offshore 6% • Offshore a

  10. Slide 10: Tankers - VLCC Spot vs Time Charter (1 year)

    $K/Day 0 20 40 60 80 100 120 -20 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 Tanker Rates May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 Spot May-13 Jul-13 Sep-13 Nov-13 Jan-14 Time Charter Mar-14 May-14 Jul-14 Sep-14 Tankers - VLCC Spot vs Time Charter (1 year) Nov-14 Jan-15 Mar-15 May-15 Ju

  11. Slide 11: Dry Cargo - Capesize Spot vs Time Charter (1 Year)

    $K/Day 0 5 15 20 25 30 35 40 10 45 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 Spot May-13 Dry Bulk Carrier Rates Jul-13 Sep-13 Nov-13 Jan-14 Time Charter Mar-14 May-14 Jul-14 Sep-14 Dry Cargo - Capesize Spot vs Time Charter (1 Year) Nov-14 Jan-1

  12. Slide 12: Five year old yearly average vessel prices ($m)

    Five year old yearly average vessel prices ($m) 160 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Capesize Bulk Carrier VLCC Tanker 12 www.braemar.com

  13. Slide 13: Technical Division - Operating Review

    Technical Division - Operating Review WHAT WE DO KEY BUSINESS DRIVERS  Vessel surveys  Number and scale of assignments  Liquefied Natural Gas consulting  Staff utilisation  Marine engineering  Diversity and depth of knowledge  Ship construction – supervision and skill base  Marine warranty s

  14. Slide 14: Technical Division – Operating Review

    Technical Division – Operating Review FY 2015/16 FY 2014/15 FY 2013/14 Revenue £54.3m £49.6 £45.7m Underlying* Operating £5.2m £6.3m £6.9m Profit Restated following closure of Brazil operations • Profitability reduced by exploration and production expenditures reductions in energy sector but we are

  15. Slide 15: Technical Division – Revenue Diversity

    Technical Division – Revenue Diversity Diversified portfolio allows revenue growth in variable market conditions Revenue - FY 2014/15 Revenue - FY 2015/16 Environmental Environmental 11% 9% Offshore 20% Offshore 24% Engineering Engineering 21% 29% Adjusting 17% Adjusting 18% Salvage Association Salv

  16. Slide 16: Logistics Division - Operating Review

    Logistics Division - Operating Review WHAT WE DO KEY BUSINESS DRIVERS  Port & Liner Agency  Key long term client relationships  Hub Agency  Geographical presence  Freight Forwarding  Bespoke project management capability  Customs clearance  Brand recognition – “Cory Brothers”  Integration w

  17. Slide 17: Logistics Division - Operating Review

    Logistics Division - Operating Review FY 2015/16 FY 2014/15 FY 2013/14 Revenue £34.1m £42.4m £38.9m Underlying* Operating £1.6m £2.3m £2.0m Profit • Challenging year as management repositioned business to focus on higher value work • Key client relationships targeted for long term growth • Investmen

  18. Slide 18: Group Income Statement

    Group Income Statement FY 2015/16 FY 2014/15 FY 2013/14 £m £m £m Performance improvement Revenue 159.1 145.6 125.5 from acquired businesses and organic growth Underlying profit 13.8 11.5 9.3 Exceptional items relate to Exceptional Items (3.4) (5.9) (0.4) ACM Merger Operating profit 10.3 5.6 8.9 Net

  19. Slide 19: Group Balance Sheet

    Group Balance Sheet FY 2015/16 FY 2014/15 FY 2013/14 £m £m £m Goodwill on acquisition Goodwill and other of ACM in 2014 intangibles 79.6 79.4 31.5 Fixed assets and investments 9.2 8.2 9.5 Current assets 58.1 57.4 48.0 Increased working capital due to business Current liabilities (44.7) (43.0) (35.0)

  20. Slide 20: Group Cashflow Statement

    Group Cashflow Statement FY 2015/16 FY 2014/15 FY 2013/14 £m £m £m Cashflow from 10.4 3.4 1.0 operations Acquisitions (net) - (0.5) (0.5) Infrastructure Capital Expenditure (2.2) (4.9) (1.3) Development Debt Net Borrowings (6.8) 9.1 - Repayment Increased Dividends/purchase share volume of own shares

  21. Slide 21: Dividend

    Dividend 30  Strong and consistent dividend yield of 25 c.5.7% 20  Proposed final dividend of 17p Pence 15 remains unchanged (Full Year: 26p)  Objective remains to build cover to 10 1.5x 5  Purchase of own shares of £0.4m 0 during year 2011/12 2012/13 2013/14 2014/15 2015/16 Interim Final 2011/1

  22. Slide 22: Braemar Outlook

    Braemar Outlook  Similar market conditions expected to continue during 2016/17  Diversified portfolio of businesses enables Braemar to handle market volatility so we expect to maintain current activity levels  Opportunity for medium and long term organic growth  Strong balance sheet offers poten

  23. Slide 23: Board of Directors

    Board of Directors Executive Directors Chief Executive Officer James Kidwell Finance Director Louise Evans Non-Executive Directors Chairman David Moorhouse CBE Non-Executive Directors Jurgen Breuer Alastair Farley Senior Independent Director Mark Tracey 23 www.braemar.com

  24. Slide 24: Disclaimer

    Disclaimer This presentation (this "presentation") is for general information only and is the property of Braemar Shipping Services Plc ("Braemar"). Making this presentation available in no circumstances whatsoever implies the existence of a commitment or contract by or with Braemar, or any of its a

  25. Slide 25: James Kidwell and Louise Evans contact details

    James Kidwell E: james.kidwell@braemar.com T: 020 3142 4100 Louise Evans E: louise.evans@braemar.com T: 020 3142 4100

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