Clarke Inc. · TSX:CKI

Clarke — Investor Presentation (November 2014)

19 slides from Clarke's investor presentation, Nov 11, 2014

  1. Slide 1: Clarke Inc. Corporate Presentation

    Clarke Inc. Corporate Presentation November 11, 2014

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This document may contain or refer to certain forward-looking statements relating, but not limited to, Clarke's expectations, intentions, plans and beliefs with respect to Clarke. Often, but not always, forward-looking statements can be identified by the use of words such

  3. Slide 3: Overview of Clarke Inc.

    Overview of Clarke Inc.  Publicly-traded investment company based in Halifax, Canada  $202mn Market Cap  $165mn Enterprise Value  Trades on Toronto Stock Exchange under the symbol CKI  Focused on acquiring undervalued or underperforming businesses with hard assets, working with management to im

  4. Slide 4: Clarke Inc. 5-Year Stock Chart

    Clarke Inc. 5-Year Stock Chart 4

  5. Slide 5: Executive Team

    Executive Team GEORGE ARMOYAN – Executive Chairman  Entrepreneur with extensive experience in real estate development, mergers and acquisitions and capitalizing on turn-around opportunities over his 32 year career.  Mr. Armoyan holds an Executive MBA from Harvard Business School. MICHAEL RAPPS – P

  6. Slide 6: Corporate History and Select Transactions

    Corporate History and Select Transactions 2013 • Increased dividend to $0.10/Q 2009 • Haw appointed VP Investments SIB for $9mn debentures at 75% of • Sold Bonnett’s for $26mn face value • Sold Highkelly for $12mn 2011 2002 • Redeemed $18mn debentures Armoyan becomes • SIB for 3mn shares at $5.00 Ch

  7. Slide 7: Clarke Today

    Clarke Today  Focus on:  Increasing the value of current investments  Identifying new investment opportunities  Returning capital to shareholders through dividends and share repurchases  Well positioned for growth with strong balance sheet:  $37mn of net cash (net of debt)  $132mn marketable

  8. Slide 8: Public Portfolio

    Public Portfolio  Marketable securities of $132mn  Realize income through dividends, interest payments and capital gains Ticker Value ($mn)* % of Portfolio Holloway Lodging Corp. (Equity) HLC $41 31.1% Holloway Lodging Corp. (Debentures) HLC.DB $17 12.7% Supremex Inc. SXP $35 26.5% TerraVest Capit

  9. Slide 9: Other Assets

    Other Assets  Other assets worth $114mn  Pension surplus  Private debt investments  Real estate assets  Private equity interests  Other Investments  Non-capital tax loss carry-forwards of $28mn 9

  10. Slide 10: Other Investments

    Other Investments  Private company investments La Traverse (100% interest) MV Shamrock (100% interest)  Passenger ferry operating in Rivière-du-  Container ship operating in the Loup, QC Caribbean  Entered into agreement for sale of vessel 10

  11. Slide 11: Investment Process

    Investment Process Identify Engage with opportunity Management / Board Invest Create value Exit investment Return capital & Reinvest Realize value 11

  12. Slide 12: Case Study #1: Highkelly Drilling Ltd.

    Case Study #1: Highkelly Drilling Ltd.  Clarke acquired 38% of Highkelly for $9mn in January 2012  Highkelly is a private contract drilling company based in Calgary, AB  Signed drilling contracts with Progress Energy  First drilling rig was delivered to Progress in October 2012  Second drilling

  13. Slide 13: Case Study #2: Gestion Jerico

    Case Study #2: Gestion Jerico  Invest  Acquired secured debt of Granby Industries LP, a manufacturer of residential tanks  Launched take-over bid for Granby at a market value of $1.3mn in January 2008  EBITDA was $490k  Create Value  Consolidated commercial and residential tank industry  Rati

  14. Slide 14: Clarke Going Forward

    Clarke Going Forward 1. Focus on Creating Shareholder Value  We do not need to be fully invested  We do not invest to generate management or director fees  We invest when we can make an attractive return with a sufficient margin of safety  We will continue to identify and invest in undervalued a

  15. Slide 15: Reduction in Debentures Outstanding

    Reduction in Debentures Outstanding *All remaining Convertible Debentures were Redeemed during the first half of 2014. 15

  16. Slide 16: Reduction in Shares Outstanding

    Reduction in Shares Outstanding 16

  17. Slide 17: Investment Performance

    Investment Performance The graph represents the Company’s book value per share and trading price for the ten years ended December 31, 2013 and as at September 30, 2014. The 2014 price per share is based on the closing price on November 11, 2014. 17

  18. Slide 18: Capital Structure

    Capital Structure Clarke Inc. (TSX: CKI) Shares Outstanding 19,686,791 Share Price $10.25 52-Week Trading Range $7.33– $12.24 Market Cap $202mn Cash $40mn Total Debt $3mn Enterprise Value $165mn 18

  19. Slide 19: Contact

    Contact Clarke Inc. 6009 Quinpool Road, 9th Floor Halifax, Nova Scotia B3K 5J7 www.clarkeinc.com MICHAEL RAPPS – President & CEO (416) 855-1925 DUSTIN HAW– Vice President, Investments (416) 855-1928 ANDREW SNELGROVE – Chief Financial Officer (902) 442-3987 KIM LANGILLE – Vice President, Taxation (90

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