Results Presentation T H 1 4 A U G U S T 2 0 1 7 - PowerPoint PPT Presentation

Results Presentation T H 1 4 A U G U S T 2 0 1 7

Agenda  Financial Results  Markets  Outlook Andi Case Jeff Woyda CEO COO/CFO 14th August 2017 2017 Interim Results 2

Results summary June 2017 June 2016 Increase £m £m % Revenue 156.8 147.2 +6.5% Underlying Profit before taxation 24.5 21.8 +12.4% (Before acquisition related costs) Acquisition related costs (2.6) (4.3) Profit before taxation 21.9 17.5 +25.1% (After acquisition related costs) Underlying Earnings per share 57.5p 52.9p +8.7% (Before acquisition related costs) Earnings per share 50.8p 41.7p +22.0% (After acquisition related costs) 14th August 2017 2017 Interim Results 3

Summary of first half 2017 results £156.8m £147.2m Successes £7.3M £8.3M £6.7M £8.3M • Broking transaction volumes up again Research £23.2M £16.7M • Average ClarkSea index H1 17 vs H1 16 up 2% • Increased revenue from new transactions in 2017 Support • Increased Financial deal flow and revenues (+US$5.8m or 24%) Financial £118.0 £115.5 M M Headwinds Broking • Lower revenue brought forward from FOB • Weakness in North Sea projects continues to impact port services 2017 2016 Other • Increased HO costs includes technology not capitalised GBP/USD H1 2017 H1 2016 • Weaker sterling environment following Brexit decision June 2016 Average 1.27 1.42 Closing 1.30 1.34 14th August 2017 2017 Interim Results 4

Segmental margin Revenue Profit Margin Revenue Profit Margin 2017 2017 2017 2016 2016 2016 £m £m £m £m Broking 118.0 21.0 17.8% 115.5 19.3 16.7% 23.2 5.0 16.7 2.4 Financial 21.5% 14.4% Support 8.3 0.7 8.3 0.8 8.4% 9.6% Research 7.3 2.4 32.9% 6.7 2.3 34.3% 14th August 2017 2017 Interim Results 5

ClarkSea Index 2011 to 2017 1997 to 2003 2004 to 2010 Average = 11,202 Average = 13,780 Average = 25,222 35.0 Average Minimum 30.0 1 st Half 2017 Average = 10,040 25.0 Uplift to Average 1997 to 2003 +37% 20.0 15.0 10.0 5.0 - 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average 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 11,793 14,164 9,441 10,040 Minimum 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 12,364 7,073 8,465 Data source: Clarksons Research 14th August 2017 2017 Interim Results 6

Acquisition related costs Acquisition related costs* June 2017 June 2016 £m £m Cash & share-based payment charges 0.5 0.5 Loan note interest 0.3 0.6 Amortisation: Platou 1.8 3.2 2.6 4.3 *Assuming no further acquisitions, this should amount to a further £2.2m in 2017 and £2.5m in 2018 14th August 2017 2017 Interim Results 7

Balance sheet Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Jun 2017 £m £m £m £m £m £m Tangible fixed assets 8.8 9.4 8.4 33.1 33.0 31.9 Investments 1.9 1.8 1.9 1.9 4.1 4.3 June billings 10.7 11.2 10.3 35.0 37.1 36.2 & Hedge Working capital (2.8) 3.1 (1.8) (7.1) (15.1) (3.3) Net funds 75.2 75.0 115.7 91.6 98.4 71.4 72.4 78.1 113.9 84.5 83.3 68.1 IAS19 Surplus Pensions (9.4) (1.8) (10.3) (4.1) 2.3 5.5 Deferred tax 12.5 10.0 13.0 8.4 7.1 4.9 75.5 86.3 116.6 88.8 92.7 78.5 Repaid June Net assets before loan notes & intangibles 86.2 97.5 126.9 123.8 129.8 114.7 2017 Loan notes - - - (46.1) (23.6) - Net assets before intangibles 86.2 97.5 126.9 77.7 106.2 114.7 Currency revaluation Intangibles 39.8 40.2 40.4 263.2 300.5 293.7 Net assets 126.0 137.7 167.3 340.9 406.7 408.4 14th August 2017 2017 Interim Results 8

Net available funds Jun 2017 Dec 2016 £m £m Cash and cash equivalents 117.4 154.0 Current investment deposits 5.4 29.4 Net cash equivalents 122.8 183.4 Reserved for bonus (full cost) (51.4) (85.0) Net available funds 71.4 98.4 Loan notes outstanding - (23.6) Net available funds after loan notes 71.4 74.8 14th August 2017 2017 Interim Results 9

Movement in net funds (after bonus & loan notes) 1.3 (13.1) 24.1 (5.6) (5.3) (3.3) (1.6) 74.8 71.4 Net Funds Operating Profit Other Dividends Working capital FX loss on cash Taxation Capex Net Funds Dec 16 held Jun 17 14th August 2017 2017 Interim Results 10

Dividend history Interim Final 70 60 50 43 40 39 40 37 33 32 30 30 27 26 26 24 22 20 16 11 23 22 22 9 21 10 19 18 18 17 16 16 14 12 10 9 7 6 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 14th August 2017 2017 Interim Results 11

Strategy & the markets O S L O

ClarkSea Index 55.0 50.0 Average Maximum Minimum 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average 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 11,793 14,164 9,441 10,040 Minimum 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 12,364 7,073 8,465 Maximum 15,907 12,250 11,148 23,161 24,343 16,719 28,382 44,132 33,901 29,319 50,702 50,682 15,784 20,172 14,993 12,485 17,141 16,684 17,524 13,876 11,842 14th August 2017 2017 Interim Results 13 Data source: Clarksons Research

World Seaborne Trade major dry bulk minor dry bulk crude oil oil products chemicals liquefied gas containers other dry cargo World Population 12 12 11 11 10 10 Seaborne Trade (billion tonnes) Population (billion people) 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 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 2015 2016 14 14th August 2017 2017 Interim Results Data Source: Clarksons / US Census Bureau

Shipping Fleet Development: 1989-2018 1 Bulkers Tankers Containers Gas Carriers Other Growth 2,500 10% 10 Year CAGR (end 1989-99) Fleet as at end year. Fleet 1 st August 2017: 1.8% 2017-18: projection. 9% 1,897m dwt 8 Year CAGR (end 2008-16) Comprises world merchant fleet >100 2,000 GT, including ship-shaped offshore 5.6% 8% units 7% 1,500 Fleet at end 2008: 6% million dwt Fleet at end 1990: 1,204m dwt 681m dwt 5% 1,000 4% 3% 2% 500 1% Year-on-year fleet growth (RHS) 0% 0 1989 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 2015 2016 2017(f) 2018(f) Note: data prior to 1996 does not include retrospective changes and certain estimates. 1 Fleet forecast based on provisional estimates. Data source: Clarksons Research 14th August 2017 2017 Interim Results 15 Data as of 1st August 2017

All Types* Fleet Deliveries & Projections Tanker Bulk Carrier Container Ship Gas Carrier Other Ship Types (>2,000 Dwt/GT) 3,500 Projected deliveries 3,000 2,500 No. of vessels 2,000 1,500 1,000 500 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Data Source: Clarksons Research Shipbuilding Forecast Club. *Not including Fishing Vessels, vessels below 2000 DWT/GT excluded 14th August 2017 2017 Interim Results 16

Global Vessel Contracting and Demolition Contracting Demolition 3,500 Includes vessels of 20,000+ DWT only 3,000 2,500 2,000 1,500 2,905 No. of vessels 2,255 1,000 2,047 1,874 1,833 1,378 1,197 1,140 1,337 1,107 1,043 500 795 707 667 580 545 547 546 480 411 267 217 0 -206 -196 -233 -272 -266 -315 -340 -340 -368 -371 -344 -507 -562 -548 -537 -137 -89 -638 -697 -123 -109 -850 -500 -1,000 -1,500 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017ytd Source: Clarksons 14th August 2017 2017 Interim Results 17

Regional Shipbuilding Shares (1990-2017ytd) 100.0 90.0 80.0 % total ships delivered (GT) 70.0 60.0 Other 50.0 USA Taiwan 40.0 China S. Korea Japan 30.0 Europe 20.0 10.0 0.0 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 2015 2016 2017ytd Data source: Clarksons Research 14th August 2017 2017 Interim Results 18 Data as of 1st August 2017

Global Newbuilding Orders at Historic Low… 3,500 Orders representative of vessels over 20,000 dwt 2,905 3,000 2,500 2,255 2,047 1,874 2,000 1,833 No. Ships 1,378 1,500 1,337 1,197 1,140 1,107 1,043 1,000 795 707 667 580 545 547 546 480 411 500 217 267 0 Data source: Clarksons Research 14th August 2017 2017 Interim Results 19 Data as of 1st August 2017