FIH Group plc · LSE:FIH

FIH — Falkland Islands Holdings — FY2016 Earnings Presentation

27 slides from FIH's earnings presentation, March 2016

  1. Slide 1: Falkland Islands Holdings Results – Year ended 31 March 2016

    Click to edit Master title style FALKLAND ISLANDS HOLDINGS Results ‐ Year ended 31 March 2016 Solid profitability, Nav 310p per share Record cash reserves £14m

  2. Slide 2: FIH: Overview Year ended 31 March 2016

    FIH : Overview Ye/ 31 March 2016 • Underlying Pre‐Tax profits £3.08m (2015: £3.56m) • Cash flow from operations £5.1m – Record levels of cash on hand : £14.0m • FIC: Record trading result ‐ PBTa £1.9m ( 2015 £1.6m ) – modernisation of infrastructure completed • Momart: Profits lower – PBTa £0.5m vs

  3. Slide 3: FIH: Year ended 31 March 2016 Trading Overview

    FIH : Year ended 31 March 2016 Trading Overview • Group revenue +1.1% to £39.0m (2015: £38.6m) — FIC : PBTa up £0.4m (+24.5%) to £1.94m . Record trading result – boosted by oil exploration and record squid catch. Strong car hire and vehicle sales + record property rental — Momart: Revenue + 3.2% but

  4. Slide 4: FIH: Year ended 31 March 2016 Trading Overview

    FIH: Year ended 31 March 2016 Trading Overview Year ended 31 March 2016 2015 Change +/‐ £000 £000 Turnover – continuing operations 38,996 38,560 +1.1% Underlying operating profit 3,301 3,763 ‐12.3% Interest (net) incl. pensions costs (223) (204) 9.3% Underlying pre tax profit 3,078 3,559 ‐13.5% (143

  5. Slide 5: FIH: Cash & Liquidity

    FIH : Cash & Liquidity 31 March 31 March 2016 2015 Change £000 £000 £000 Bank Loans * (3,264) (735) (2,529) Hire Purchase & Other borrowings (309) (280) (29) Total borrowings (3,573) (1,015) (2,558) Cash 14,037 7,435 6,602 Net Cash 10,464 6,420 4,044 Pontoon Finance Lease (4,828) (4,858) 30 * Bank l

  6. Slide 6: FIH: Segmental Analysis – year ended 31 March 2016

    FIH: Segmental Analysis – year ended 31 March 2016 2016 2015 £000 £000 Change +/- Turnover FIC 18,495 18,506 -0.1% PHFC 4,244 4,301 -1.3% Momart 16,257 15,753 +3.2% Total Turnover 38,996 38,560 +1.1% Pre Tax Profit FIC 1,937 1,556 +24.5% PHFC 684 796 -14.1% Momart 457 1,207 -62.1% Underlying Pre-Tax

  7. Slide 7: FIC: Record results boosted by oil exploration

    FIC: Record results boosted by oil exploration 7

  8. Slide 8: FIC: Oil Exploration 2015-16

    FIC: Oil Exploration 2015‐16 • Exploration support onshore boosted local demand – car / plant / property rental • 4 wells drilled by Eirik Raude rig in 11 months: programme ended early in Feb 2016 – Humpback well in Southern basin – found no commercial hydrocarbons – 3 positive results in Northern b

  9. Slide 9: FIC: Year ended 31 March 2016

    – FIC: Year ended 31 March 2016 Revenue 2016 2015 Change £ million £ million % Retail 9.66 9.54 1.3% Falklands 4x4 3.93 3.07 28.1% Freight and port services 0.90 1.24 ‐27.6% Support services 1.63 1.66 ‐1.8% Property rental 0.57 0.36 59.2% Property and construction 1.81 2.64 ‐31.5% Total Revenue 18.5

  10. Slide 10: FIC: Trading – Year ended 31 March 2016

    FIC: Trading ‐ Year ended 31 March 2016 • Revenue maintained at record levels ‐ £18.5m ‐ last 2 years lifted by oil related activity • Contribution +24.5% to £1.94m (2015: £1.56m ) • Total retail revenue + 1.3% to £9.66m – West Store +4.5% ‐tougher in DIY Homecare • Strong growth in Falklands 4x4 +

  11. Slide 11: FIC: New warehouse: East Stanley

    FIC : New warehouse : East Stanley 11

  12. Slide 12: FIC: Year ended 31 March 2016

    FIC: Year ended 31 March 2016 • £1.2 m capital investment during year : • Completion New chiller and warehouse / container facilities at Airport Road • Redevelopment of the Retail facilities and the Head Office at Crozier place ‐ creation family friendly retail destination with new Car Park & Home L

  13. Slide 13: FIC: Expanded Home Builder DIY Store

    FIC : Expanded Home Builder DIY Store 13

  14. Slide 14: Momart: Year ended 31 March 2016

    Momart : Year ended 31 March 2016 14

  15. Slide 15: Momart: Trading year ended 31 March 2016

    Momart: Trading year ended 31 March 2016 Revenue 2016 2015 Change £ million £ million % Museums & Public Exhibitions 8.39 8.68 ‐3.4% Gallery Services 5.82 5.21 11.8% Storage 2.05 1.86 10.1% Total Revenue 16.26 15.75 3.2% Operating Profit 0.46 1.24 ‐62.9% Interest (0.03) ‐ Pre Tax Profit * 0.46 1.21

  16. Slide 16: Momart: Trading year ended 31 March 2016

    Momart: Trading year ended 31 March 2016 • Revenue up 3.2% to £16.3m (2015: £15.8m ) Profits down to £0.46m (2015: £1.24m ) • Exhibitions revenues ‐£0.3m (‐3.4% ) • Overseas revenues £5.8m ‐22.7% down on 2015 ( £7.5m ) • Commercial Gallery Services revenues +11.8% to £5.82million • Storage revenues

  17. Slide 17: Momart: Investment in sales & marketing

    Momart : Investment in sales & marketing 17

  18. Slide 18: Portsmouth Harbour Ferry Company (PHFC)

    Portsmouth Harbour Ferry Company (PHFC) 18

  19. Slide 19: PHFC: Trading year ended 31 March 2016

    PHFC: PHFC Trading year ended ‐ Year ended 31 March 31 March 2013 2016 Revenues 2016 2015 Change £ million £ million % Ferry fares 4.09 4.13 ‐0.8% Other revenue 0.15 0.17 ‐13.1% Total Revenue 4.24 4.30 ‐1.3% Operating Profit 1.03 1.03 ‐0.4% Boat mortgage loan interest (0.12) (0.01) Pontoon lease fin

  20. Slide 20: PHFC: Trading year ended 31 March 2016

    PHFC: P Trading year ended 31 March 2016 • Revenue down 1.3% at £4.2 million • PBT ‐14.1% to £0.68m (2015: £ 0.79m ) • Passenger journeys down 3.3% to c.2.83 m (2015: ‐2.1% to c.2.92m ) – Lower petrol prices make driving around harbour relatively more affordable – Subsidised Park & Ride in Portsmout

  21. Slide 21: FIH: Outlook

    FIH : Outlook • FIC – Falklands economy quieter post oil – weaker illex catch Spring 2016 – But : Lower profitability at pre oil levels ‐ focus on cash flow – reduced capex – FIC well set up for eventual move to oil production – Significant oil upside remains ( 1 bn barrels of identified reserves in

  22. Slide 22: FIH: Strategy

    FKL: Strategy FIH : Strategy • FIC: Focus on increased efficiency & cash flow pending development of oil. • Momart: Secure returns from expanded storage – leverage investment in sales & marketing. • PHFC: Maintain fleet, steady profits & strong cash flow • Group: • No dividend planned ‐ cash reinves

  23. Slide 23: Appendices

    Appendices Additional Information on Falkland Islands Holdings

  24. Slide 24: FIH: Group balance sheet

    FKLFIH: Group balance Balance sheet Sheet 31 March 2016 31 March 2015 Change £000 £000 £000 Property, plant and equipment 19,930 19,621 309 Investment properties 3,632 3,693 (61) Intangibles & goodwill 12,037 12,226 (189) Deferred tax asset, HP debtors & Joint venture net assets 1,578 1,852 (274) In

  25. Slide 25: FIH: Group cash flow

    FKL FIH: GroupCash Flow cash flow Year ended 31 March 2016 2015 £000 £000 Underlying operating profit 3,301 3,763 Depreciation 1,459 1,426 Tax paid (324) (792) Decrease in working capital 507 2,145 Other (192) (158) Net cash flow from operating activities 4,751 6,384 Capital expenditure (1,854) (4,9

  26. Slide 26: Management Team

    Management Team Management Team Edmund Rowland, Chairman Edmund joined the Board in April 2013, and became Chairman on 9 February 2015. He currently serves as a Director of Blackfish Capital Management, a specialist asset manager based in London and as Chief Executive Officer of Banque Havilland S.A

  27. Slide 27: A Sha hy

    A Sha hy i ands Holdings

Falkland Islands Holdings — FY2016 Earnings Presentation on 6ix