Slide 1: Half Year Presentation
Half Year Presentation 16 February 2009
Slide 2: This presentation relates to the NZX announcement and media release
This presentation relates to the Freightways Limited NZX announcement and media release of 16 February 2009. As such it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. These half year results are drawn from unaudited financial statements
Slide 3: Presentation
Presentation ¾ 2009 Half Year Highlights ¾ Operating Performance ¾ Business Strategy ¾ Outlook
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Slide 5: 2009 Half Year Highlights
Freightways 2009 Half Year Highlights
Slide 6: General Highlights
General Highlights • Core express package business delivered a sound result in a challenging operating environment • Information management business again delivered outstanding performance • Operations now established in every major state of Australia
Slide 7: Financial Highlights
Financial Highlights Dec-08 Dec-07 Increase $000 $000 % Operating revenue 177,392 161,897 10% EBITDA 36,120 35,028 3% EBITA 31,492 31,291 1% NPAT 16,892 16,765 1%
Slide 8: Operating Performance
Freightways Operating Performance
Slide 9: Operating Revenue
Operating Revenue 350 300 250 200 $M 2nd Half 150 1st Half 100 50 - 9 0 1 2 3 4 5 6 9 7 8 n9 n0 n0 n0 n0 n0 n0 n0 n0 n0 n0 Ju Ju Ju Ju Ju Ju Ju Ju Ju Ju Ju Year Ended • 10% revenue growth compared to 2008 • 5-year compound average annual revenue growth of 11%
Slide 10: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 200 4.0% 3.0% 177 180 4.0% 162 (1.0% ) 160 $M 140 120 100 2007 Or g a n i c P r i c i ng Ne w B us i ne s s Ac qui s i t i o n 2008 Grow th drivers
Slide 11: EBITA
EBITA 70 60 50 40 $M 30 2nd Half 20 1st Half 10 - 9 0 1 2 3 4 5 6 7 8 9 n9 n0 n0 n0 n0 n0 n0 n0 n0 n0 n0 Ju Ju Ju Ju Ju Ju Ju Ju Ju Ju Ju Year Ended • 1% EBITA growth compared to 2008 • 5-year compound average annual EBITA growth of 9%
Slide 12: Business Segments
Business Segments Operating Performance - Half Year ended 31 Dec 2008 Revenue EBITA 83% 82% 18% 17% Express Package & Business Mail Information Management
Slide 13: Express Package & Business Mail
Express Package & Business Mail Dec-08 Dec-07 Increase $000 $000 % Operating revenue 148,273 140,102 6% EBITA 26,650 27,250 -2% Margin 18% 19%
Slide 14: Information Management
Information Management Dec-08 Dec-07 Increase $000 $000 % Operating revenue 29,741 22,418 33% EBITA 5,734 4,750 21% Margin 19% 21%
Slide 15: Balance Sheet
Balance Sheet • Increase in fixed assets of $9m (net of depreciation) • Increase in goodwill of $4m • Increase in bank borrowings of $18m • Decrease in derivatives fair value of $20m
Slide 16: Cash Flow - Key Points
Cash Flow - Key Points • Cash generated from operations of $33m • Capital expenditure of $14m • Payments for acquisitions of $12m • Cash of $21m drawn from borrowings during the period
Slide 17: Dividend
Dividend • Interim dividend: 8 cps • Imputation credits: 4 cps • Supplementary dividend: 1.4 cps • Record date: 13 March 2009 • Payment date: 31 March 2009
Slide 18: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 19: Business strategy
Business strategy • Develop organic growth opportunities • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 20: Current economic downturn vs. Freightways' strengths
Current economic downturn vs. Freightways’ strengths • Experienced management and Board • Established and well-positioned brands • Stable and consolidated industry environment • Diverse and supportive customer base • Services imbedded in customers’ supply chains • Highly variable cost base • Shared
Slide 21: Express Package & Business Mail
Express Package & Business Mail Network courier Point-to-point Business mail Support
Slide 22: Information Management
Information Management New Zealand NSW VIC QLD ACT SA WA Document --- --- Storage Data Storage Document --- --- --- --- Destruction
Slide 23: Outlook
Freightways Outlook
Slide 24: Capital expenditure
Capital expenditure 2009 Half Year Full Year Actual Forecast Capital expenditure $14m $22m Depreciation $4.6m $9.6m • 2009 capital expenditure includes $9m relating to two significant property developments.
Slide 25: Outlook
Outlook • Subject to the economy, overall sound performance is expected however current fluctuating activity means accurate forecasting is difficult • A Trading Update will be published in April to provide high level 3rd quarter financial results • Characteristics of competitive environment expected
Slide 26: Summary
Summary 9 Strong successful business 9 Positioned to deliver continuing earnings growth 9 Delivering an attractive dividend yield