22 August 2012 Andi Case & Jeff Woyda - clarksons.com · Service provider to Global Mariti me, Energy & Natural Resources 22 August 2012 Andi Case & Jeff Woyda CLARKSONS Interim Results

Service provider to Global Maritime, Energy & Natural Resources

22 August 2012 Andi Case & Jeff Woyda

CLARKSONS

Interim Results Announcement 6 months ended 30 June 2012

www.clarksons.com

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Interim Results Announcement

Agenda

● Financial Overview – Jeff Woyda, CFO

● The Market – Andi Case, CEO

● Outlook – Andi Case, CEO

22 August 2012

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3 22 August 2012


Results Summary

30 June2012

30 June2011

Revenue £88.0m £88.6m

Profit before taxation £11.0m £13.5m

Exceptional item £4.5m £0m

Acquisition costs £(0.8m) £0m

Profit before taxation £14.7m £13.5m

EPS before exceptional & acquisition costs 39.8p 52.6p

EPS after exceptional & acquisition costs 54.0p 52.6p

www.clarksons.com22 August 2012

Clarksons

Research

Broking

Financial

Support

2012Profit

£m

2011Profit

£m

12.7 14.6

(4.8) (2.5)

2.1 1.1

1.4 0.9


4

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Broking

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● Significant demand/supply imbalance● Lower asset values● Very challenging freight rates

● Transaction volumes up in most areas

● Particularly good performance from● Specialised products● Tankers● Gas

● Revenue challenges greater in● Dry Cargo● Containers

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Financial

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● CSL● FFA market suffering from lack of volatility● Perfect storm

● Market volumes down● Rates down

● 4 major players remain● Market predominantly hedging based – traders participation down

● CCM● USA developed with sales operation● Research coverage extended● Reducing costs in Dubai● Currently challenging market for investment banking

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Support

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● Port & Agency profit £1.5m (2011: £0.5m)

● EnShip & Opex acquisitions met expectations with excellent results in first 6 months

● Integration working well● New operations in Tyne and Great Yarmouth in the period

● Property services profit £0.68m (2011: £0.75m)

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Research

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● Martin Stopford retired, remains under consultancy agreement

● Steve Gordon becomes MD, supported by an outstanding board

● Headline revenue growth of 21%, underlying revenue growth 11%

● Major areas of growth● Digital Income● Customer Services● Offshore● Valuations

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Profit & Loss

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● Acquisition costs £0.8m● Share-based payments● Amortisation of intangibles

● Taxation – rate 32.0% (2011: 29.1%)● Profits in high tax jurisdictions● Unrelieved losses

● Exchange rate ● Average 1st half 2012 £1:$1.5842 (2011: £1:$1.6251)● Spot at 30 June £1:$1.5685 (2011: £1:$1.6055)● Average year ended 31 December 2011: £1:$1.61● Spot at 31 December 2011 £1:$1.5541

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Dividend

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Net Funds30 June

2012£m

30 June 2011

£m

Cash and short-term investments 101.4 101.3

Reserved for bonus (full cost) (25.0) (29.5)

Net cash 76.4 71.8

Borrowings - -

Net available funds 76.4 71.8

Reserved for Dividend (3.4) (3.4)

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Balance Sheet2006

£m2007

£m2008

£m2009

£m2010

£m2011

£m2012

£m

Fixed Assets 27.2 25.4 29.1 27.4 21.6 21.3 23.3

Intangibles 42.4 47.2 32.3 32.5 32.7 40.3 39.969.6 72.6 61.4 59.9 54.3 61.6 63.2

Investments 14.0 16.4 16.1 14.9 13.2 1.9 1.9

Working Capital (18.0) (25.8) (22.0) (9.3) (12.8) (4.7) (7.1)

Net Funds (7.3) 10.9 38.4 38.2 62.5 71.1 76.4

(25.3) (14.9) 16.4 28.9 49.7 66.4 69.3

(11.3) 1.5 32.5 43.8 62.9 68.3 71.2

Net Assets before pensions 58.3 74.1 93.9 103.7 117.2 129.9 134.4

Pensions 7.1 9.9 8.5 (6.9) (0.8) (6.6) (11.1)

Net Assets 65.4 84.0 102.4 96.8 116.4 123.3 123.3

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ClarkSea Index

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ClarkSea Index

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11.3 9.8

16.8 15.4

10.6

19.0

30.8

27.8 24.7

33.0 33.0

11.7

15.7

12.9

10.2

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$000

’spe

r da

y

Maximum

Minimum

Average

Average down70%

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Baltic Dry Index

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Baltic Dry Index

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Average down85%


Dry Bulk Timecharter Rates

Data Source: Clarksons


17

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Tanker Spot Earnings

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Crude Product


18

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Containership 6-12m Timecharter Rates


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LPG Earnings – 82k m3



20


LPG Timecharter Rates



21


LNG Charter Rates


LNG Charter Rates basis a modern conventional DFDE LNG carrier


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Specialised Products

Data Source: ClarksonsIndex Re-based to 100 as of 04/01/2008 22 August 2012


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Offshore Freight Rates North SeaAHTS Spot Rates PSV Spot Earnings


0

5,000

10,000

15,000

20,000

25,000

Aug

-10

Nov

-10

Feb-

11

May

-11

Aug

-11

Nov

-11

Feb-

12

May

-12

£/da

y

< 600m2 600-800m2

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

Au

g-1

0

No

v-1

0

Feb

-11

May

-11

Au

g-1

1

No

v-1

1

Feb

-12

May

-12

£/d

ay

13-16k BHP 18k BHP+


24


5yr old Secondhand Prices


25



Dry Bulk 15yr old vs. Scrap Price Differential


Capesize

Current

HandysizePanamax

26


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Fleet Age Profile

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All Types* Orderbook Development (>999GT)

Data source: Clarksons*excludes offshore, passenger/cruise, government vessels

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Global Vessel Contracting

Source: Clarksons

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World Seaborne Trade

Source : Clarkson Research Services

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Outlook

• Very challenging markets highlights importance of:• Global reach• Product diversity• Quality research and analysis• Being best in class

• Clarkson Capital Management

● Strong balance sheet● Enables investment in teams● Optimises ability to take advantage of opportunities

● Strategy of clear focus

22 August 2012

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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 INFORMATIONCONTAINED IN THE PRESENTATION MAY BE DISCLOSED TO, OR USED OR RELIED UPON BY, ANY OTHER PERSON OR USED FOR ANY OTHER PURPOSEWITHOUT 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 AVAILABLEINFORMATION. NONE OF THE INFORMATION ON WHICH THE PRESENTATION IS BASED HAS BEEN INDEPENDENTLY VERIFIED BY ANY MEMBER OFCLARKSONS NOR ANY OF ITS CONNECTED PERSONS. ACCORDINGLY, NO MEMBER OF CLARKSONS NOR ANY OF ITS CONNECTED PERSONS MAKE ANYREPRESENTATION 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 THEPRESENTATION 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 ARECOMMENDATION SUPPORTING ANY OF THE OPTIONS DISCUSSED HEREIN BY ANY MEMBER OF CLARKSONS OR ANY OF ITS CONNECTED PERSONS TOANY RECIPIENT OF THE INFORMATION. EACH PERSON TO WHOM THE INFORMATION IS MADE AVAILABLE MUST MAKE THEIR OWN INDEPENDENTASSESSMENT OF THE OPTIONS AVAILABLE.

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

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

TELEPHONE +44 (0) 207-334-5420

22 August 2012


Documents

22 August 2012 Andi Case & Jeff Woyda - clarksons.com · Service provider to Global Mariti me, Energy & Natural Resources 22 August 2012 Andi Case & Jeff Woyda CLARKSONS Interim Results