Final Results - Clarksons · 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

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Final Results 31 December 2014

9 March 2015

Clarkson PLC

Final Results

www.clarksons.com

Agenda

Clarksons 2014 results

The RS Platou acquisition

RS Platou 2014 performance

Business Model & Strategy

The market

Outlook

9 March 2015 Final Results 2

www.clarksons.com 3

Clarksons Results for 2014

9 March 2015 Final Results

www.clarksons.com 9 March 2015 Final Results 4

Results Summary

2014 £m

2013 £m

Change %

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 per share (Before exceptional item and acquisition costs) 134.2p 98.0p +37%

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Revenue by half year

5

Broking, £73.4m

Broking, £86.9m Broking, £84.5m

Broking, £98.9m

Financial, £3.9m

Financial, £7.7m Financial, £8.4m

Financial, £7.1m

Support, £8.8m

Support, £10.9m Support, £15.7m

Support, £16.2m

Research, £4.6m

Research, £5.1m Research, £4.7m

Research, £5.7m

H1 2013 H2 2013 H1 2014 H2 2014

£90.7m

£110.6m £113.3m

£127.9m


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Revenue

6

£241.2m

£201.3m

Financial +£3.9m or 33.6%

Support +£12.2m or 61.9%

Broking +£23.1m or 14.4%

Research +£0.7m or 7.2%


£160.3m

£183.4m

£11.6m

£15.5m

£19.7m

£31.9m

£9.7m

£10.4m

2013 2014

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Divisional performance - Result

2013 £m

2014 £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%

7 9 March 2015 Final Results

www.clarksons.com Final Results 8

Net Funds

Dec 2014 £m

Dec 2013 £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 for dividend (11.7) (6.9)

9 March 2015 * Includes placing proceeds of £30.6m

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Movement in Net Funds

9

30.6

(7.7)

75.0 (10.8)

(2.0) (1.9)

3.7

33.3 (4.5)

115.7

Net Funds Dec13

Dividend Taxation Pension Capex Debtors /Creditors

Profit Acquisitions(net)

Placingproceeds

Net Funds Dec14

9 March 2015 Final Results Final Results


Balance Sheet

2008

£m

2009

£m

2010

£m

2011

£m

2012

£m

2013

£m

2014

£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)

Net Funds 38.4 38.2 62.5 71.1 75.2 75.0 115.7

16.4 28.9 49.7 66.4 70.2 75.6 111.9

32.5 43.8 62.9 68.3 72.1 77.4 113.8

Net Assets before pensions 93.9 103.7 117.2 129.9 135.4 139.5 177.6

Pensions 8.5 (6.9) (0.8) (6.6) (9.4) (1.8) (10.3)

Net Assets 102.4 96.8 116.4 123.3 126.0 137.7 167.3

9 March 2015


Dividends

6 7 9 10 12 14 16 16 17 18 18 19 21 9 11

16

22

24

26 26 27

30 32 33

37

39

0

5

10

15

20

25

30

35

40

45

50

55

60

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pe

nce

pe

r S

ha

re

Interim Final

9 March 2015

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Forward Order Book (for invoicing in the following year)

9 March 2015 12

2014* US$m

2013* US$m

Total FOB 110 100

*Best estimates of deliverable FOB

Final Results

www.clarksons.com 13

Details of the Acquisition A reminder


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Details of the transaction

Clarksons acquired 100% of the issued share capital of Platou

Restrictions on sale 1/3rd released on 1st anniversary

1/3rd released on 2nd anniversary

1/3rd released on 3rd anniversary

Loan Notes ½ repayable on 30th June, 2016

½ repayable on 30th June, 2017

Conditions Regulatory approvals

Shareholder approval

Additional employment related retention mechanisms

% Amount £m

Shares 75.00% £210.83

Cash 8.34% £23.44

Loan Notes 16.66% £46.83

Total £281.10

Completion took place on 2nd February, 2015 – 2 months earlier than anticipated due to quicker regulator response

Amount Shares

Shares before transaction 18,984,691

Shares issued in the placing 1,613,698

Shares issued at completion 9,518,369

Total Issued share capital 30,116,758

Issued Share Capital

Final Results 9 March 2015 14

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Board of Directors (post completion)

James Hughes-Hallett Non Executive Chairman

Andi Case Chief Executive Officer

Peter M. Anker President Broking & Banking

Jeff Woyda Chief Financial Officer

Peter Backhouse Non Executive Director

Senior Independent Director

Ed Warner Non Executive Director

Chair Remuneration Committee

James Morley Non Executive Director

Chair Audit Committee

Birger Nergaard Non Executive Director

Final Results 9 March 2015 15


RS Platou Results for 2014

Final Results 9 March 2015

www.clarksons.com

Platou group underlying and continuing results

9 March 2015

Continuing

12 months to

31 Dec 2013

£m

Continuing

12 months to

31 Dec 2014 (unaudited)

£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)

Profit before taxation 32.8 27.7

Taxation (10.2) (7.5)

Profit for the period 22.6 20.2

Minority interest (3.7) (2.0)

18.9 18.2

Minority interest acquired 1.0

Final Results 17

www.clarksons.com

Platou group underlying and continuing results

9 March 2015

Continuing

12 months to

31 Dec 2013

£m

Continuing

12 months to


£m

Continuing

12 months to

31 Dec 2013

Constant

Currency

£m

Continuing

12 months to


Constant

Currency

£m

Increase/

(Decrease)

%

Revenue 132.7 115.3 126.2 115.3

Administrative expenses (99.1) (87.7) (95.8) (87.7)

Operating Profit 33.6 27.6 30.3 27.6

Finance revenue 1.2 2.1 1.2 2.1

Finance costs (2.0) (1.4) (2.0) (1.4)

Other finance costs - (0.6) - (0.6)

Profit before taxation 32.8 27.7 29.5 27.7

Taxation (10.2) (7.5) (9.2) (7.5)

Profit for the period 22.6 20.2 20.4 20.2

Minority interest (3.7) (2.0) (3.3) (2.0)

18.9 18.2 17.1 18.2 + 6.4%

Minority interest acquired 1.0 1.0

Final Results 18

www.clarksons.com

Combined Results (Underlying)


Clarksons

12 months to

31 Dec 2014

£m

Platou

Continuing

12 months to


£m

Combined

Continuing

12 months to

31 Dec 2014

£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 - 1.0 1.0

Retained Profit 25.1 19.2 44.3


Business Model Reinforced…



The heart of

global shipping…

Enabling global

trade



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 Town


www.clarksons.com

The Markets

23 9 March 2015 Final Results


ClarkSea Index

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

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 Maximum Minimum

Average

13,568

13,315

9,786

11,081

11,883

13,800

12,256

13,424

11,336

9,840

16,848

15,431

10,626

18,953

30,753

27,785

24,661

32,969

32,954

11,711

15,721

12,947

9,586

10,442 11,800

Maximum

17,736

18,185

12,040

12,023

15,116

14,456

13,609

15,098

12,250

11,150

23,160

24,350

16,720

28,390

44,140

33,910

29,330

50,710

50,690

16,320

20,420

15,890

12,485

17,141 16,684

Minimum

11,218

11,150

8,608

9,838

10,772

13,295

10,923

11,980

9,850

8,650

11,340

8,920

8,870

15,690

23,420

19,230

18,860

25,280

13,740

7,730

13,060

10,980

7,523

7,574 9,175


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Data Source: Clarkson Research Services

World Seaborne Trade

1990-2014

25 Final Results 9 March 2015

www.clarksons.com

Data Source: Clarkson Research Services, data prior to 1996 does not include retrospective changes and certain estimates.

10 Year CAGR (2004-2014)

6.6%

c. 200 Public

Companies

$1 trillion

fleet

37% of tonnage

public c. 300

companies

20% of

tonnage

public

Shipping Fleet Development

1990-2015

26 Final Results 9 March 2015

www.clarksons.com

Outlook


The heart of global shipping…

Enabling global trade

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

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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 CLARKSON PLC (CLARKSONS).

THE INFORMATION CONTAINED IN THE PRESENTATION, AND UPON WHICH THE PRESENTATION IS BASED, HAS BEEN DERIVED FROM PUBLICLY

AVAILABLE INFORMATION. NONE OF THE INFORMATION ON WHICH THE PRESENTATION IS BASED HAS BEEN INDEPENDENTLY VERIFIED BY ANY MEMBER OF CLARKSONS NOR ANY OF ITS CONNECTED PERSONS. ACCORDINGLY, NO MEMBER OF CLARKSONS NOR ANY OF ITS CONNECTED PERSONS MAKE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE ACCURACY OF THE INFORMATION CONTAINED IN THE PRESENTATION, OR ON WHICH THE PRESENTATION IS BASED, OR THAT THIS INFORMATION REMAINS UNCHANGED AFTER THE ISSUE OF THE PRESENTATION.

THE PRESENTATION IS NOT TO BE CONSTRUED AS CARRYING THE ENDORSEMENT OF CLARKSONS OR ANY OF ITS CONNECTED PERSONS.

CONSEQUENTLY, NEITHER CLARKSONS NOR ANY OF ITS CONNECTED PERSONS CAN BE HELD LIABLE TO ANY PERSON TO WHOM INFORMATION DERIVED FROM THE PRESENTATION IS MADE AVAILABLE FOR THE ACCURACY OF THE INFORMATION CONTAINED IN IT.

THE PRESENTATION IS NOT INTENDED TO RECOMMEND ANY STRATEGIC DECISION BY THE COMPANY AND SHOULD NOT BE CONSIDERED AS A

RECOMMENDATION SUPPORTING ANY OF THE OPTIONS DISCUSSED HEREIN BY ANY MEMBER OF CLARKSONS OR ANY OF ITS CONNECTED PERSONS TO ANY RECIPIENT OF THE INFORMATION. EACH PERSON TO WHOM THE INFORMATION IS MADE AVAILABLE MUST MAKE THEIR OWN INDEPENDENT ASSESSMENT OF THE OPTIONS AVAILABLE.

NOTHING IN THE PRESENTATION IS, OR SHOULD BE RELIED UPON AS, A PROMISE OR REPRESENTATION AS TO THE FUTURE.

Clarkson PLC ST. MAGNUS HOUSE, 3 LOWER THAMES STREET, LONDON, EC3R 6HE

TELEPHONE +44 (0) 207-334-0000

Documents

Final Results - Clarksons · 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