Mainfreight Limited · NZX:MFT
Mainfreight — Shareholder Meeting (July 2023)
25 slides from Mainfreight's shareholder meeting presentation, Jul 27, 2023
Slide 1: Mainfreight Limited Annual Meeting of Shareholders
MAINFREIGHT LIMITED ANNUAL MEETING OF SHAREHOLDERS 27 JULY 2023
Slide 2: The Numbers … Financial Year 2023
The Numbers … Financial Year 2023 • Revenue up 8.8% to $5.68 billion from $5.22 billion • PBT up 20.0% to $587 million from $489 million • Net Profit up 20.0% to $426 million from $355 million • People – 11,311 up 918 • Branches – 331 up 26 • Countries – 26 up 1 • Dividend – final dividend of 87.0 c
Slide 3: 2 Year Comparison
2 Year Comparison % 2023 2022 2021 Variance Variance Increase REVENUES $000 $000 $000 Over 2 Yrs Total Group Full Year 5,675,709 8.8% 5,218,259 47.2% 3,543,838 60.2% 2023 2022 2021 % Increase PBT Variance Variance Over 2 Yrs $000 $000 $000 Total Group Full Year 587,398 20.0% 489,381 86.5% 262,407 12
Slide 4: Full Year Overview
Full Year Overview • A satisfactory result dominated by a very good first half and a deteriorating second half “A game of two halves” • One off costs: • Australia A$4m • USA US$3m • Poor performance across all USA business units • Business benefited during Air & Ocean supply chain congestion • Custo
Slide 5: Capital Management
Capital Management Operating Cash Flow $757 million v $504 million $ “Better cash collection and improved profitability” Net Capex $314 million - $233 million on property Net Debt reduction to $123 million in funds “Cash at hand” Debt facilities $510 million, undrawn $323 million • Bank Facilities e
Slide 6: The Network
The Network: The power of our network, both within regions and between them, is a key competitive strength. Our global team works together, trusting each other to deliver a quality service for our customers. THE AMERICAS BRANCHES COUNTRIES PEOPLE 1,765 Team members US$959.9m 331 26 11,311 Revenue EU
Slide 7: New Branches 2023
New Branches 2023 12 TRANSPORT 6 WAREHOUSING 8 AIR & OCEAN
Slide 8: Adelaide Transport - Completed
… ADELAIDE TRANSPORT - Completed
Slide 9: Adelaide Warehousing - Completed
ADELAIDE WAREHOUSING - Completed
Slide 10: Perth Warehousing - Completed
PERTH WAREHOUSING - Completed
Slide 11: Favona, Auckland – Completed
FAVONA, Auckland – Completed
Slide 12: Beach Road, Auckland
= = BEACH ROAD, Auckland
Slide 13: Alderman Place, Auckland
ALDERMAN PLACE, Auckland
Slide 14: Owens – Hugo Johnson, Auckland
OWENS – HUGO JOHNSON, Auckland
Slide 15: Chicago New Transport Dock – Artist Impression
CHICAGO NEW TRANSPORT DOCK – ARTIST IMPRESSION
Slide 16: Chicago New Transport Dock – Artist Impression
CHICAGO NEW TRANSPORT DOCK – ARTIST IMPRESSION
Slide 17: Future Capital Expenditure Update: F24 - F25
Future Capital Expenditure Update: F24 - 25 2024 2025 NZ$ MILLION F24 NZ$ MILLION F25 Planned Capital Expenditure $381 Planned Capital Expenditure $295 ▪ Property $237 ▪ Property $192 ▪ Fit-out costs $84 ▪ Fit-out costs $43 ▪ Non-property capex $60 ▪ Non-property capex $60 Property and Fit-out costs
Slide 18: Planned Development for 2024 / 2025
Planned Development for 2024 / 2025 • 14 Owned / 36 Leased • 25 Transport cross-docks • 14 Warehouses • 11 Air & Ocean • Opening in India • Property portfolio $ 1.3 billion • Expect our new cross-docks for Transport to be smaller and more efficient, incorporating more rear-loading and unloading of h
Slide 19: Sustainability
Sustainability Investing in Sustainable Infrastructure • 5.8 MW in solar generation (2.7MW added over the past year) • 5 MW in battery storage • Rainwater capture, storage and filtration Lowering the Impact of our Operations • 80% (2156) of forklifts electric • 43% (432) of car fleet hybrid and elec
Slide 20: Dandenong South, Australia
== > wees TT t eine, ene TE ID BB oeve Tren oe _ © aay ae = = : al DANDENONG SOUTH, AUSTRALIA
Slide 21: Current Trading Environment (June Quarter Trading)
Current Trading Environment (June Quarter Trading) PROFIT NZ$000 REVENUE* VAR % VAR % BEFORE TAX New Zealand NZ$ 287,916 9.2% 27,800 18.4% Australia AU$ 315,720 5.4% 27,311 7.3% Americas US$ 164,764 43.5% 6,143 80.6% Europe EU€ 149,180 9.0% 5,657 51.2% Asia US$ 24,123 53.8% 3,634 5
Slide 22: Trading Update: Our Core Products (June Quarter)
Trading Update: Our 3 Core Products (June Quarter) Revenue: $538.4 million down 0.3% TRANSPORT PBT: $ 34.0 million down 35.9% Revenue: $198.7 million up 15.2% WAREHOUSING PBT: $ 11.6 million down 9.4% Revenue: $450.9 million down 40.6% AIR & OCEAN PBT: $ 37.4 million down 53.6%
Slide 23: Trading Update Summary
Trading Update Summary • Globally • Reduced volumes – slowing economies • Freight congestion issues unravel • Swift reduction in sea and air freight rates • Inflationary pressures in all markets • Transport • Reasonable activity across Australia • Poorer performances USA/Europe/New Zealand • Warehou
Slide 24: Trading Update Summary: Our Response
Trading Update Summary: Our Response • Strong sales activities to attract more customers across the full supply chain • Management of overhead cost structures • Hiring freeze • More with less – efficiencies Branch by Branch • Ongoing investment in our network and infrastructure • Preparing to take a
Slide 25: To Close
To Close We have taken advantage of the last two years to grow bigger and better We have the capabilities, energy and passion to keep growing this wonderful company of ours We are in this for the long haul – 100-year focus Thanks for being on the journey with us “Expect some form of normality to res