Slide 1: Full Year Presentation
Full Year Presentation 17 August 2009
Slide 2: Presentation relates to NZX announcement and media release
This presentation relates to the Freightways Limited NZX announcement and media release of 17 August 2009. As such it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. These full year results are drawn from audited financial statements pre
Slide 3: Presentation
Presentation ¾ 2009 Full Year Highlights ¾ Operating Performance ¾ Business Strategy ¾ Outlook
Slide 4: Freightways
Freightways
Slide 5: 2009 Full Year Highlights
Freightways 2009 Full Year Highlights
Slide 6: General Highlights
General Highlights • Overall satisfactory performance in a difficult operating environment • Very good ‘information management’ division result • Successful completion of a range of capital management initiatives to strengthen FRE balance sheet
Slide 7: Financial Highlights
Financial Highlights Jun-09 Jun-08 Increase $000 $000 % Operating revenue 339,491 323,910 5% EBITDA 70,548 68,463 3% EBITA 60,971 60,478 1% NPAT 34,593 32,250 7% NB: Included in the above EBIT DA and EBIT A numbers is a one-off profit of $4m (NPAT included $3.9m) generated from the sale and lease-ba
Slide 8: Operating Performance
Freightways Operating Performance
Slide 9: Operating Revenue
Operating Revenue 400 350 300 250 2nd Half $M 200 1st Half 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Ended 30 June • 5% revenue growth compared to 2008 • 10-year compound average annual revenue growth of 8%
Slide 10: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From
Slide 11: EBITA
EBITA 70 60 50 40 2nd Half $M 30 1st Half 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Ended 30 June • 1% EBITA growth compared to 2008 • 10-year compound average annual EBITA growth of 13%
Slide 12: Business Segments
Business Segments Operating Performance - Year ended 30 June 2009 Revenue EBITA 82% 81% 18% 19% Express Package & Business Mail Information Management
Slide 13: Express Package & Business Mail
Express Package & Business Mail Jun-09 Jun-08 Variance $000 $000 % Operating revenue 279,733 277,655 1% EBITA 46,914 51,567 (9%) Margin 17% 19%
Slide 14: Information Management
Information Management Jun-09 Jun-08 Variance $000 $000 % Operating revenue 60,961 47,498 28% EBITA 11,145 9,711 15% Margin 18% 20%
Slide 15: Balance Sheet
Balance Sheet • Increase in fixed assets of $8m (net of depreciation and property sale) • Increase in goodwill of $11m • Overall annual net decrease in bank debt of $36m • Decrease in derivatives fair value of $11m • Increase in issued capital of $49m
Slide 16: Capital Management Initiatives
Capital Management Initiatives • $49m received from capital raisings completed in 2009 • $8.3m received from property sale and lease-back • DRP implemented in respect of FY09 final dividend • All proceeds used to reduce net debt position to strengthen balance sheet and create improved financial flex
Slide 17: Cash Flow - Key Points
Cash Flow - Key Points • Cash generated from: - operations $67m - capital raisings $49m - property sale & lease-back $8m • Capital expenditure of $21m • Payments for acquisitions of $18m
Slide 18: Dividend
Dividend • Final dividend: 8.5 cps • Imputation credits: 4.2 cps • Supplementary dividend: 1.5 cps • Record date: 18 September 2009 • Payment date: 30 September 2009 • DRP offered in respect of the 2009 Final Dividend
Slide 19: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 20: Business strategy
Business strategy • Develop organic growth opportunities • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 21: Recent Acquisitions
Recent Acquisitions • NOW/FPS/NRM Overall 1st year targeted earnings achieved • Acquisition of Access Information Management in WA during the year is currently on track to achieve 1st year targeted earnings
Slide 22: Express Package & Business Mail
Express Package & Business Mail Network courier Point-to-point Business mail Support
Slide 23: Information Management
Information Management Business Description New Zealand NSW VIC QLD ACT SA WA Document --- Storage Data Storage Document --- --- --- --- Destruction
Slide 24: Outlook
Freightways Outlook
Slide 25: Capital expenditure
Capital expenditure 2009 2010 Actual Forecast Capital expenditure $21m $13m Depreciation $9.6m $11m • 2009 capital expenditure included two significant property developments
Slide 26: Outlook
Outlook • Express Package & Business Mail division will track behind last year until a sustained improvement in the economy is evidenced • Information Management division will initially track behind last year before improving as new capacity is progressively utilised • Capital management initiatives
Slide 27: Summary
Summary • In a difficult environment, Freightways has reported a satisfactory result • Near term performance will continue to be impacted by the current economic turmoil • Freightways is well positioned to benefit from any improvement in the New Zealand economy • Medium to longer term and subject to