Slide 1: Interim Results Presentation
| Interim Results Presentation 30 June 2022 Andi Case & Jeff Woyda 8 August 2022
Slide 2: Financial results
Financial results Jeff Woyda Chief Financial Officer and Chief Operating Officer 2
Slide 3: Results summary
Results summary To 30 June 2022 2021 £m £m Revenue 266.7 190.1 +40.3% Underlying profit before taxation 42.2 27.5 +53.5% (Before acquisition related costs) Acquisition related costs (0.2) (0.2) Profit/(loss) before taxation 42.0 27.3 +53.8% (after acquisition related costs) Underlying earnings per s
Slide 4: Segmental performance
Segmental performance Revenue, profit and margin Revenue Revenue Profit Profit Margin Margin 2022 2021 2022 2021 2022 2021 £m £m £m £m Broking 211.2 142.7 47.0 30.3 22.3% 21.2% Financial 27.6 24.7 5.7 5.3 20.7% 21.5% Support 18.3 14.1 2.0 1.5 10.9% 10.6% Research 9.6 8.6 3.4 3.1 35.4% 36.0% Results
Slide 5: USD v GBP Exchange Rate
USD v GBP Exchange Rate GBP 1 is worth the following in USD 2022 2021 Arithmetic average for the half year to June 1.2858 1.3911 Spot rate at 30 June 1.2172 1.3814 Results Presentation | 30 June 2022 5 Andi Case & Jeff Woyda | 8 August 2022
Slide 6: Sea/ related IT costs
Sea/ related IT costs to 30 June Jun 2022 Jun 2021 £m £m Items taken to income statement Non capitalized items (Sea/ only) (4.0) (5.9) Amortisation (1.9) (0.3) Jun 2022 Dec 2021 Jun 2021 £m £m £m Software-related intangible assets as at 1 January 17.1 15.6 15.6 Additions 1.2 2.9 1.7 Amortisation (1.
Slide 7: The intelligent marketplace for fixing freight
The intelligent marketplace for fixing freight. Management Progress • Appointed Peter Schroder as CEO of Maritech • Fully established Senior leadership team, incorporating CTO, CPO, CCO, CFO, CSO,CDO and an HR business partner • Restructuring offshoring development resources • Full value benefit ana
Slide 8: Balance sheet
Balance sheet At 30 June Dec 2018 Dec 2019 Dec 2020 Dec 2021 Jun 2022 £m £m £m £m £m Tangible fixed assets 29.3 28.9 28.6 24.7 24.1 Intangible fixed assets (software only) 5.4 9.9 15.6 17.1 16.4 Investments (relating to convertible bonds) 6.7 6.7 5.5 0.7 0.7 Investments (other) 4.8 4.8 2.9 1.0 1.2 4
Slide 9: Net available funds and free cash resources
Net available funds and free cash resources 30 June 31 December 2022 2021 £m £m Cash and cash equivalents 231.6 261.6 Interest-bearing loans and borrowing - - Current investment deposits 5.4 9.6 Net cash equivalents 237.0 271.2 Reserved for bonus (full cost) (111.2) (148.9) Net available funds 125.8
Slide 10: Movement in free cash resources
Movement in free cash resources 1 January 2022 to 30 June 2022 Results Presentation | 30 June 2022 10 Andi Case & Jeff Woyda | 8 August 2022
Slide 11: Dividend history
Dividend history 20 years of progressive dividend 57 53 54 50 51 40 43 39 37 32 33 30 26 27 26 24 22 16 27 29 11 22 22 23 24 25 25 9 18 18 19 21 14 16 16 17 9 10 12 6 7 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Interim Final Deferred 201
Slide 12: Markets
Markets Andi Case Chief Executive Officer 12
Slide 13: Where are we in the cycle?
Where are we in the cycle? Timeline of each cycle not defined and varies Containers Weakening market Strong market Chemical/Specialised Tankers Renewables Dry Bulk LNG Products Tankers Offshore Recovering market Crude Tankers Weak market LPG Results Presentation | 30 June 2022 13 Andi Case & Jeff Wo
Slide 14: Seaborne Trade Recovery
Seaborne Trade Recovery Strong Covid-19 recovery, growth now slowing in 2022 on macroeconomic headwinds… Global Seaborne Trade, bn tonnes 1.8 Dry Bulk 13 Thousands Oil 12 1.6 Containers Gas 11 Others 1.4 10 Trade (tonnes) per Capita (LHS) 9 1.2 8 1.0 7 0.8 6 5 0.6 4 0.4 3 2 0.2 1 0.0 0 1991 1992 199
Slide 15: Fleet & Orderbook Development Still Supportive
Fleet & Orderbook Development Still Supportive Fleet growth generally manageable; orderbook up from recent c.30 year lows but still ‘short’ at 10% of fleet DWT… Development of World Fleet, m dwt Orderbook as % Fleet, end year Fleet growth peaked 2,500 Fleet, end year at c. 9% in 2010 10% 80% Fleet G
Slide 16: Shipyards & Contracting
Shipyards & Contracting Capacity has been consolidating; newbuild ordering has picked up, modest capacity growth expected… No. Of Active Yards No. Of Global Newbuilding Orders 350 2009: 3,500 320 yards Rest of World 300 China - Japan - Korea 3,000 2,934 250 2,500 200 2,000 July 2022: 116 yards 1,510
Slide 17: Crude and Products Trade Distances
Crude and Products Trade Distances (Replacement Cargoes into Europe) Crude oil and gasoil/diesel trade routes Crude oil trade routes 6,000 5,000 4,000 Nautical Miles 3,000 2,000 1,000 0 -1,000 -2,000 Russian Baltic to NW Russian Black Sea to Middle East Gulf to US Gulf to Europe West Africa to Europ
Slide 18: Security Of Energy Supply: Increased Long-Term LNG Trade Potential
Security Of Energy Supply: Increased Long-Term LNG Trade Potential Security of energy supply moving rapidly up the agenda with Russia-Ukraine conflict… Stronger expectations for European LNG Most additional production comes from Long-run LNG trade outlook to 2030 imports by 2030, slightly softer out
Slide 19: LPG Trade continues to rise
LPG Trade continues to rise …exports from the Middle East have registered the largest % growth 1H22. US to rise 2H22/’23, raising tonne-miles 60 LPG Exports U.S Natural Gas Processing LPG Production raised for ’22 & ‘23 53.7 55 6 2.5 2018 2019 47.0 50 45 40.5 2020 2021 5 38.8 2 38.5 36.2 40 34.9 1H2
Slide 20: Offshore & Renewables market strengthening significantly
Offshore & Renewables market strengthening significantly Likely to see a multi-year upcycle, following several years of downturn in traditional offshore oil and gas Clarksons Offshore Index at highest level in 7 years Offshore Oil & Gas and Renewables strengthening significantly Clarksons Offshore I
Slide 21: Congestion Remains Elevated
Congestion Remains Elevated Congestion has had a major impact over the last year or so; will likely take some time to unwind fully… Containership Congestion Index*, % TEU Bulkcarrier Congestion Index^, % dwt Car Carrier Congestion Index”, % CEU 40% 38% Feb-22 peak: 30% Apr-22 peak: Jul-22 peak: Hund
Slide 22: Container Shipping Market Trends
Container Shipping Market Trends Charter & freight markets remain extraordinary, continuing to be supported by major “disruption upside” Containership Charter Rate Index Spot Container Freight Rate Index (SCFI) 500 6,000 450 5,000 400 350 4,000 300 250 3,000 200 2,000 150 100 1,000 50 0 0 Jan-08 Jan
Slide 23: Chemical Tanker Congestion Fuelling Rise in Freight Rates
Chemical Tanker Congestion Fuelling Rise in Freight Rates Increased Waiting Times Impacting Productivity & Driving Freight Upwards China ‘Zero’ COVID Policy Driving An Increase in Port Congestion, January 2021 to date Restricting Available Supply Increase of 173% to Europe & 112% to US 4.5 230 4 210
Slide 24: Chemical Tanker Fleet Development & Outlook
Chemical Tanker Fleet Development & Outlook Marginal Fleet Growth Expected in Future Years With Contraction Expected from 2023 Onward – Orderbook Stands at 5.9% of In-Service DWT 7 35% 6 30% 5.3% Contraction Expected 2022-2025 5 25% 4 20% DWT (millions) % Change YoY 3 15% 2 10% 1 5% 0 0% -1 -5% -2 -
Slide 25: Dry Bulk Commodity Growth Needed to Ease Inflation
Dry Bulk Commodity Growth Needed to Ease Inflation Increase in supply and redirection of key routes will add to tonne & tonne-mile growth Grain & Coal Tonnemile % Change y/y 25% 20% 20% 19% 16% 16% 15% 13% 10% 12% 10% 8% 8% 9% 8% 7% 6% 4% 4% 6% 4% 4% 5% 3% 3% 0% 2% 0% 1% -2% -7% -3% -5% -6% -8% -6%
Slide 26: LNG Fuel Gaining Traction
LNG Fuel Gaining Traction But no clear ‘winner’ yet; LPG traction on LPG carriers; recent high-profile methanol/‘alt. fuel ready’ orders… Fleet (2,000+ GT) Using Alternative Fuels (5% of fleet by GT) Orderbook (2,000+ GT) Set To Use Alt. Fuels (42% by GT) c.780 200 c.730 LNG (c.730) 160 LNG (c.780)
Slide 27: EU Emissions Trading System (ETS)
EU Emissions Trading System (ETS) Inclusion of shipping in ETS could generate potentially significant additional voyage costs European Climate Exchange EUA Nearest % Sector Port Calls In EU*, GT, 2021 Potential Additional Costs ‘in EU’, $/day December Futures Price, Weekly Avg 60% $/tonne End Jan 20
Slide 28: Significant Containership Fleet Renewal Requirements
Significant Containership Fleet Renewal Requirements “Green Transition” & decarbonisation regulations will increasingly impact containership supply/demand balance Age Profile Will Drive Renewal Requirement Alternative Fuels “Ramping Up” Decarbonisation To Drive Supply Disruption Containership Fleet
Slide 29: Environmental Pressures Building
Environmental Pressures Building IMO targets 50% CO2 reduction by 2050, pressure for more ambition; regulatory timeline accelerating, policy ramping up; technology uncertain; Green Transition key industry focus… Lower EEDI Ratification of Ballast BWMC Lower EEDI 50% GHG Baltic Sea 1.0% ECA 3.5% Glob
Slide 30: Vessel Speed Trends: Emissions Policy May Impact
Vessel Speed Trends: Emissions Policy May Impact Speeds still well down on decade-ago levels despite improvements in market conditions… Crude Tanker Speeds, knots Bulkcarrier Speeds, knots Containership Speeds, knots 13.0 12.4 16.5 12.2 16.0 12.5 12.0 11.8 15.5 12.0 11.6 15.0 11.5 11.4 14.5 11.2 11.
Slide 31: Decarbonisation Impact on Shipping Markets
Decarbonisation Impact on Shipping Markets A Set of IMO and European Union regulations aimed at restricting carbon emissions to be introduced in 2023 and 2024 = Cross-Sector impact on tonnage availability • IMO regulations in force from 1st January 2023 • Emissions reduction measures will likely lea
Slide 32: Outlook
CLARKSON PLC — = — —— — CS Outlook 32
Slide 33: Outlook: Tailwinds vs Headwinds
Outlook Tailwinds vs Headwinds Headwinds…? Sentiment Covid & War Exchange rate Global GDP Covid-19 - is it USD vs contraction? over? GBP,NOK…Head wind or tailwind ? Inflation? War – how long and how deep? Tailwinds Markets Company Supply side Regulation & Renewables & Forward order Cash Progressive
Slide 34: Thank you
Thank you Commodity Quay St. Katharine Docks London, E1W 1BF UK www.clarksons.com 34
Slide 35: Disclaimer
Disclaimer Clarkson PLC The material and the information (including, without limitation, any future rates and/or forward looking predictions) contained herein (together, the "Information") are provided by Clarkson PLC (Clarksons) for general guide. The Information is provided on ‘as is’ and ‘as avai