Clarkson Plc · LSE:CKN
Clarkson — FY2014 Earnings Presentation
28 slides from Clarkson's earnings presentation, Mar 9, 2015
Slide 1: Final Results
Final Results 31 December 2014 Clarkson PLC 9 March 2015 Final Results www.clarksons.com
Slide 2: Agenda
Agenda Clarksons 2014 results The RS Platou acquisition RS Platou 2014 performance Business Model & Strategy The market Outlook 9 March 2015 Final Results www.clarksons.com 2
Slide 3: Clarksons Results for 2014
Clarksons Results for 2014 9 March 2015 Final Results www.clarksons.com 3
Slide 4: Results Summary
Results Summary 2014 2013 Change £m £m % Revenue 237.9 198.0 +20% Profit before taxation (Before exceptional item and acquisition costs) 33.8 25.1 +35% Exceptional item (1.6) (1.0) Acquisition costs (7.0) (2.1) Profit before taxation (After exceptional item and acquisition costs) 25.2 22.0 Earnings
Slide 5: Revenue by half year
Revenue by half year £127.9m Research, £5.7m £113.3m £110.6m Support, £16.2m Research, £4.7m Research, £5.1m Financial, £7.1m Support, £10.9m Support, £15.7m £90.7m Financial, £7.7m Research, £4.6m Financial, £8.4m Support, £8.8m Financial, £3.9m Broking, £98.9m Broking, £86.9m Broking, £84.5m Broki
Slide 6: Revenue
Revenue £241.2m £10.4m Research +£0.7m or 7.2% £201.3m £31.9m Support +£12.2m or 61.9% £9.7m £15.5m £19.7m £11.6m Financial +£3.9m or 33.6% Broking +£23.1m or 14.4% £183.4m £160.3m 2013 2014 9 March 2015 Final Results www.clarksons.com 6
Slide 7: Divisional performance - Result
Divisional performance - Result 2013 2014 % £m £m Broking 27.5 34.1 +24.0% Financial (3.3) (1.4) +57.5% Support 3.1 4.0 +29.0% Research 3.0 3.5 +16.7% 9 March 2015 Final Results www.clarksons.com 7
Slide 8: Net Funds
Net Funds Dec 2014 Dec 2013 £m £m Cash and cash equivalents 152.9) 96.9 Current investments 25.3) 25.2 Reserved for bonus (full cost) (62.5) (47.1) Net cash 115.7) 75.0 Borrowings -) - Net available funds* 115.7) 75.0 Cash Consideration on Acquisition (23.4) - Net available funds 92.3) 75.0 Reserved
Slide 9: Movement in Net Funds
Movement in Net Funds 30.6 115.7 33.3 (4.5) 75.0 (10.8) (7.7) (2.0) 3.7 (1.9) Net Funds Dec Dividend Taxation Pension Capex Debtors / Profit Acquisitions Placing Net Funds Dec 13 Creditors (net) proceeds 14 9 March 2015 Final Results www.clarksons.com 9
Slide 10: Balance Sheet
Balance Sheet 2008 2009 2010 2011 2012 2013 2014 £m £m £m £m £m £m £m Fixed Assets 29.1 27.4 21.6 21.3 23.5 21.9 23.4 Intangibles 32.3 32.5 32.7 40.3 39.8 40.2 40.4 61.4 59.9 54.3 61.6 63.3 62.1 63.8 Investments 16.1 14.9 13.2 1.9 1.9 1.8 1.9 Working Capital (22.0) (9.3) (12.8) (4.7) (5.0) 0.6 (3.8)
Slide 11: Dividends
Dividends 60 55 50 Pence per Share 45 40 39 37 35 32 33 30 30 26 27 26 25 24 20 22 16 15 11 10 9 19 21 16 16 17 18 18 12 14 5 9 10 6 7 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Interim Final 9 March 2015 Final Results www.clarksons.com 11
Slide 12: Forward Order Book
Forward Order Book (for invoicing in the following year) 2014* 2013* US$m US$m Total FOB 110 100 *Best estimates of deliverable FOB 9 March 2015 Final Results www.clarksons.com 12
Slide 13: Details of the Acquisition
Details of the Acquisition A reminder 9 March 2015 Final Results www.clarksons.com 13
Slide 14: Details of the transaction
Details of the transaction Clarksons acquired 100% of the issued share capital of Platou % Amount Restrictions on sale 1/3rd released on 1st anniversary £m 1/3rd released on 2nd anniversary 1/3rd released on 3rd anniversary Shares 75.00% £210.83 Loan Notes ½ repayable on 30th June, 2016 Cash 8.34% £
Slide 15: Board of Directors (post completion)
Board of Directors (post completion) James Hughes-Hallett Non Executive Chairman Andi Case Chief Executive Officer Peter M. Anker Jeff Woyda President Broking & Banking Chief Financial Officer Peter Backhouse James Morley Non Executive Director Non Executive Director Senior Independent Director Chai
Slide 16: RS Platou Results for 2014
RS Platou Results for 2014 9 March 2015 Final Results www.clarksons.com 16
Slide 17: Platou group underlying and continuing results
Platou group underlying and continuing results Continuing Continuing 12 months to 12 months to 31 Dec 2013 31 Dec 2014 (unaudited) £m £m Revenue 132.7 115.3 Administrative expenses (99.1) (87.7) Operating Profit 33.6 27.6 Finance revenue 1.2 2.1 Finance costs (2.0) (1.4) Other finance costs - (0.6)
Slide 18: Platou group underlying and continuing results
Platou group underlying and continuing results Continuing Continuing Continuing Continuing Increase/ 12 months to 12 months to 12 months to 12 months to (Decrease) 31 Dec 2013 31 Dec 2014 31 Dec 2013 31 Dec 2014 (unaudited) (unaudited) Constant Constant Currency Currency % £m £m £m £m Revenue 132.7
Slide 19: Combined Results (Underlying)
Combined Results (Underlying) Clarksons Platou Combined Continuing Continuing 12 months to 12 months to 12 months to 31 Dec 2014 31 Dec 2014 31 Dec 2014 (unaudited) £m £m £m Profit Before Tax 33.8 27.7 61.5 Profit after Tax 25.1 20.2 45.3 Minority Interest - (2.0) (2.0) Minority Interest Acquired -
Slide 20: Business Model
Business Model Reinforced… 9 March 2015 Final Results www.clarksons.com 20
Slide 21: The heart of global shipping
The heart of global shipping… Enabling global trade 9 March 2015 Final Results www.clarksons.com 21
Slide 22: Enhanced Global Presence
Enhanced Global Presence A Houston B New York C Casablanca D London E Rotterdam F Geneva G Genoa H Oslo I Uppsala J Hamburg K Athens L Johannesburg M Alexandria N Cairo O Dubai P New Delhi Q Singapore R Hong Kong S Shanghai T Perth U Melbourne V Aberdeen New Offices X Rio De Janiero Y Moscow Z Cape
Slide 23: The Markets
The Markets 9 March 2015 Final Results www.clarksons.com 23
Slide 24: ClarkSea Index
ClarkSea Index 55.0 50.0 45.0 Average Maximum Minimum 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average 13,568 13,315 9,786 11,081 11,883 13,800 12,256 13,424 11,336 9,840 16,8
Slide 25: World Seaborne Trade
World Seaborne Trade 1990-2014 Data Source: Clarkson Research Services 9 March 2015 Final Results www.clarksons.com 25
Slide 26: Shipping Fleet Development
Shipping Fleet Development 1990-2015 37% of tonnage public c. 300 companies 10 Year CAGR (2004-2014) 6.6% $1 trillion fleet c. 200 Public 20% of tonnage Companies public Data Source: Clarkson Research Services, data prior to 1996 does not include retrospective changes and certain estimates. 9 March
Slide 27: Outlook
The heart of global shipping… Outlook 1. Execution of Strategy 2. Integration 3. Focus on further volume growth 4. Increased volatility 5. Increased FOB 6. Oil price caution 7. Capital markets opportunities Enabling global trade 9 March 2015 Final Results www.clarksons.com 27
Slide 28: Disclaimer
Disclaimer THIS PRESENTATION IS CONFIDENTIAL AND IS SOLELY FOR THE USE OF THE RECIPIENT. NEITHER THE WHOLE NOR ANY PART OF THE INFORMATION CONTAINED IN THE PRESENTATION MAY BE DISCLOSED TO, OR USED OR RELIED UPON BY, ANY OTHER PERSON OR USED FOR ANY OTHER PURPOSE WITHOUT THE PRIOR WRITTEN CONSENT OF