James Fisher And Sons Plc · LSE:FSJ
James Fisher And Sons — FY2022 Earnings Presentation
36 slides from James Fisher And Sons's earnings presentation, Apr 28, 2023
Slide 1: 2022 Full Year Results Presentation
James Fisher and Sons plc 2022 Full Year Results Presentation 28 April 2023
Slide 2: Disclaimer
Disclaimer This presentation is confidential and is delivered to interested parties for information only. It is delivered solely on the basis that neither the whole nor any part of the information contained in this presentation may be disclosed to, or used or relied upon by, any other person or used
Slide 3: Jean Vernet, CEO and Duncan Kennedy, CFO
Jean Vernet Duncan Kennedy Chief Executive Officer Chief Financial Officer
Slide 4: Agenda
Agenda Introduction Financial Headlines Business Review Strategy and Markets Roadmap and Short-Term Priorities Summary and Outlook Q&A James Fisher and Sons plc 2023 4
Slide 5: Summary FY2022
Summary FY2022 Good strategic and financial progress 8% revenue growth and underlying operating profit from Continuing Operations stabilised, and ROCE improved 30bps Three non-core business disposals completed in December 2022 (Mimic, Prolec, Strainstall UK) Swordfish sale agreed in Dec 22, cash
Slide 6: Post Year End Progress
Post Year End Progress Refinancing of borrowing facilities £210m secured Revolving Credit Facility to complete by 7 June Able to offer reduction in commitments (from £247.5m) following progress on debt reduction programme Existing 6 lenders continuing to participate Maturity March 2025; quarterl
Slide 7: Financial Headlines
James Fisher and Sons pic Pioneering Sustainably Financial Headlines
Slide 8: Financial Summary
Financial Summary Continuing operations £m 2022 2021 % Revenue 478.1 442.4 +8.1 Operating profit/(loss) 24.7 (20.7) n/m Underlying operating profit 26.4 28.0 (5.7) Underlying operating profit margin 5.5% 6.3% (80)bps Discontinued operations Loss after tax from Discontinued Operations (19.8) (0.1) n/
Slide 9: Financing and Tax
Financing and Tax Financing £m 2022 2021 • Average cost of borrowing increased Net bank interest payable (8.1) (6.0) • Reflects interest swap expiry/ Pensions - (0.1) renewal, leverage position and average UK base rate increase Unwind of lease liability (2.1) (2.2) • Further increase expected in 202
Slide 10: Cashflow
Cashflow £m 2022 2021 Loss before tax (6.8) (29.0) • Working capital: Depreciation and amortisation 41.1 44.2 • Net working capital increased by £2.7m in Non-cash separately disclosed items 11.6 38.4 the year, principally as a result of £3.2m increase in inventory to meet market Finance expense 10.3
Slide 11: Borrowing Facilities
Borrowing Facilities Banking covenants 2022 2021 • Progress in reducing leverage in 2022 Net debt : EBITDA < 3.5x 2.7 2.9 Interest cover > 3x 3.5 5.4 • New, secured, RCF agreed at £210m: • Sufficient liquidity and scheduled amortisations aligned with our business Headroom at 31 December Drawn Undraw
Slide 12: Business Review
James Fisher and Sons pic Pioneering Sustainably Business Review
Slide 13: Divisional Summary
Divisional Summary Revenue Underlying Operating Profit £m 2022 2021 % change 2022 2021 % change Marine Support 224.5 214.5 4.7 7.9 5.0 58.0 Specialist Technical 68.1 81.5 (16.4) 0.6 10.0 (94.0) Offshore Oil 106.6 86.3 23.5 15.2 11.1 36.9 Tankships 78.9 60.1 31.3 8.6 4.8 79.2 Central costs (5.6) (2.9
Slide 14: Marine Support
Marine Support • Subsea Services £m 2022 2021 % Business stabilisation continuing; collectively profitable in 2022 vs collective loss in 2019, 2020 and 2021 Revenue 224.5 214.5 4.7 Swordfish sold in early 2023; continue to pursue Operating profit/(loss) 10.1 (21.0) n/m partnerships Underlying op
Slide 15: Specialist Technical
Specialist Technical • Continuing Operations – JFD Continuing operations £m 2022 2021 % Order intake in 2022 did not compensate for completion of long-term projects; closing order book at trough of cycle Revenue 68.1 81.5 (16.4) Challenges with long-term sub rescue services contract Operating pr
Slide 16: Offshore Oil
Offshore Oil • Scantech +18% revenue growth in 2022 £m 2022 2021 % Strong demand expected to continue in buoyant market Revenue 106.6 86.3 23.5 New leadership is leading the pooling of rig top assets and field Operating profit/(loss) 14.7 (5.2) n/m crews to drive best in class service delivery
Slide 17: Tankships
Tankships • Tankers £m 2022 2021 % Strong market in 2022 after COVID disruption Revenue 78.9 60.1 31.3 Utilisation rates at 88% vs 83% in 2021 Operating profit/(loss) 9.9 1.3 n/m 34% of fleet on long-term charters serving smaller ports not Underlying operating profit 8.6 4.8 79.2 accessible by
Slide 18: Strategy and Markets
James Fisher and Sons pic Pioneering Sustainably Strategy and Markets
Slide 19: Reflections on First 8 Months
Reflections on First 8 Months Employees that are passionate about what they do • c.100 introductory 1:1s with key staff around the Group, in all major territories in which we operate • Strong sense of motivation from contributing to the “Blue Economy” towards a sustainable future Markets that are fu
Slide 20: We Operate in the Blue Economy
We Operate in the Blue Economy* The marine environment is an essential component of the global life-support system, covering 71% of the Earth's surface and providing us with food, oxygen and jobs The Blue Economy has been defined as the "sustainable use of ocean resources for economic growth, im
Slide 21: We Make a Difference
We Make a Difference Our Vision Harness the unlimited possibilities of our marine ecosystems, inventing new ways of nurturing its treasures, while protecting life with courage and integrity Our Purpose Pioneering safe and trusted solutions to complex problems in harsh environments to create a sustai
Slide 22: Divisional Structure Aligned to Market Verticals
Divisional Structure Aligned to Market Verticals Energy Defence Maritime Transport Marine Contracting JFD Tankers Offshore Oil Cattedown Fendercare ~50% FY22 revenue ~15% FY22 revenue ~35% FY22 revenue • Offshore Oil joins Marine Support to create Energy, which is then arranged around Product Lines:
Slide 23: Energy Division
Energy Division Overview • Global energy demand +25% to 2040 across oil, natural gas, renewables supply, with transitioning expertise across the sectors • Efficiency improvements (c.5% p.a.) required for supply to meet demand • Decarbonisation pressures will grow exponentially, as more commit to net
Slide 24: Defence Division
Defence Division Segment Market segment CAGR Market drivers Impact JFS portfolio forecast (%) Submarine rescue • Increased investment in global vessels and long- Defence Global geopolitical situation is threatening term service security across multiple fronts – energy, • Alliances are getting stro
Slide 25: Maritime Transport Division
Maritime Transport Division Segment Market segment CAGR Market drivers Impact JFS portfolio forecast (%) • Additional transport for alternative fuels LNG ship-to-ship • Crude oil routes changing means new routes transfers • LNG becomes a globally traded • Emissions concerns and controls New tanker c
Slide 26: Roadmap and Short-Term Priorities
Roadmap and Short-Term Priorities
Slide 27: Our Roadmap 2023 – 2027: One James Fisher
Our Roadmap 2023 – 2027: “One James Fisher” 1 2 3 4 Long term growth opportunity: Focus Simplify Deliver Positioned to contribute to a sustainable, changing world 2023 – 2024 2025… and another 175 years Deploy marine “One James Fisher” Deliver on our Tier 1 provider, chosen by our customers engineer
Slide 28: Our 2023 Priorities
Our 2023 Priorities Guiding principle of working as “One James Fisher” 1. The best at HSE Our ‘internal’ KPI scorecard ‘External’ outcomes Any incident is one too many 10% improvement on 2022 1. Improvement in 2. predictability 2. Meet our budget and forecasts Revenue and margin deviations vs Budget
Slide 29: Summary and Outlook
James Fisher and Sons pic Pioneering Sustainably Summary and Outlook
Slide 30: Summary and Outlook
Summary and Outlook • Strong and growing markets ‒ Oil & gas upward short and mid-term momentum across exploration and production ‒ Renewables global expansion; Underwater defence market accelerating; Maritime Transport solid • Turnaround priorities ‒ Regain credibility ‒ Focus, Simplify, Deliver >
Slide 31: James Fisher and Sons plc
James Fisher and Sons plc Pioneering Sustainably
Slide 32: Appendix
James Fisher and Sons pic Pioneering Sustainably Appendix
Slide 33: Income Statement
Income Statement Year ended Year ended 31 December 2022 31 December 2021 restated* Total Total £m £m Continuing operations Revenue 478.1 442.4 Cost of sales (350.9) (338.8) Gross profit 127.2 103.6 Administrative expenses (104.4) (118.9) Impairment of trade and other receivables 0.3 (7.3) Share of p
Slide 34: Underlying Operating Profit FY22
Underlying Operating Profit FY22 Continuing operations Amortisation of acquired Impairment Specific trade Disposal of Dis- Total Restructuring As intangible charges / receivables businesses Other / Underlying continued underlying 2022 reported assets (reversals) provision and assets Tax results Oper
Slide 35: Underlying Operating Profit FY21
Underlying Operating Profit FY21 Continuing operations Amortisation of Specific Trade Disposal of Discontinued Total underlying 2021 As acquired Impairment receivables businesses and Underlying operations results reported intangible assets charges provision Litigation assets Other / Tax results Cont
Slide 36: Sustainability Overview
Sustainability Overview People Planet Partnership Top talent, Diversity and inclusion, Portfolio choices, Resource efficiency, Innovation, Customer engagement, Health, safety and security GHG emissions Governance • Improvement in LTIF and TRIF health and • Continued focus on renewables and • Partner