Slide 1: Full Year Presentation
Freightways g y Full Year Presentation 13 August 2012
Slide 2: This presentation
This presentation Thi t ti relates l t tot the th Freightways F i ht Li it d NZX Limited announcement and media release of 13 August 2012 As such, it should be read in conjunction with, and is subject to, the explanations and views contained in those releases This full year result is drawn from audi
Slide 3: Agenda
Agenda 2012 Full Year Highlights Operating Performance Business Strategy Outlook Full Year Results | August 2012 3
Slide 4: 2012 Full Year Highlights
2012 Full Year Highlights Full Year Results | August 2012 4
Slide 5: General Highlights
General Highlights Result above the prior year in all respects and a record for the company Successful execution of growth strategies across both divisions Recent acquisitions add further depth to FRE’s presence in the Australasian IM market Reduced funding costs following re-negotiation of
Slide 6: Financial Highlights
Financial Highlights Jun-12 Jun-11 Increase $M $M % Operating Revenue 382 353 8% EBITDA* EBITDA 72 66 9% EBITA* 62 57 9% NPAT* 36 31 17% * June-12 excludes non-recurring earthquake income $1.5m ($1.0m net of tax) ((June-11 excludes non-recurringg earthquake q costs $1.3m (($0.9m net of tax)) )) 1 Fu
Slide 7: Operating Performance
Operating Performance Full Year Results | August 2012 7
Slide 8: Operating Revenue
Operating Revenue 450 400 350 300 250 $M 200 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Ended 30 June 2nd Half 1st Half • 8% higher revenue compared to PCP • 10-year compound average annual revenue growth of 7.5% Full Year Results | August 2012 8
Slide 9: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 400 390 2.0% 382 380 3.1% 0.9% 370 2.5% $M 360 353 350 340 330 2011 Volume Pricing Net new business Acquisition 2012 Growth Drivers 1 Full Year Results | August 2012 9
Slide 10: EBITA
EBITA* EBITA 70 60 50 40 $M 30 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Ended 30 June 2nd Half 1st Half • 9% higher g EBITA compared p to PCP • 10-year compound average annual EBITA growth of 8% * FY2012 excludes non-recurring net earthquake insurance procee
Slide 11: Business Segments Operating Performance
Business Segments Operating Performance (Full year to 30 June 2012) Revenue EBITA 25% 25% 75% 75% Express Package & Business Mail Information Management 1 Full Year Results | August 2012 11
Slide 12: Express Package & Business Mail
Express Package & Business Mail Jun-12 Jun 12 Jun-11 Jun 11 Increase $M $M % O Operating ti Revenue R 292 278 5% EBITDA 53 50 7% EBITA 48 45 8% EBITA Margin 17% 16% 1 Full Year Results | August 2012 12
Slide 13: Information Management
Information Management Jun-12 Jun 12 Jun-11 Jun 11 Increase $M $M % O Operating ti Revenue R 92 76 21% EBITDA 21 17 18% EBITA 16 14 18% EBITA Margin 18% 18% 1 Full Year Results | August 2012 13
Slide 14: Balance Sheet – Key Points
Balance Sheet – Key Points Total Assets and Total Liabilities have increased since FY11 by $38m and $33m, respectively, primarily as a result of acquisition payments of $22m and capital expenditure of $15m Bank borrowings have increased since FY11 by NZD11m and AUD8m; largely to fund acquisition
Slide 15: Cash Flow – Key Points
Cash Flow – Key Points Cash inflows from operating activities - $7m up on PCP due to improved trading performance Cash outflows from investing activities - $22m higher than PCP as a consequence of acquisitions completed during the year Cash outflows from financing activities – lower by $20m co
Slide 16: Subsequent Event – Final Dividend
Subsequent Event – Final Dividend Interim dividend: 9 5 cps 9.5 Imputation credits: 4.07 cps Supplementary dividend: 1.6765 cps Record date: 14 September 2012 Payment date: 1 October 2012 No DRP offered in respect of the 2012 Final Dividend 1 Full Year Results | August 2012 16
Slide 17: Finance Facilities Renewal
Finance Facilities Renewal Multi currency facilities: NZD110m & AUD70m Multi-currency Syndication: Existing 3 banks continue as lenders Effective date: 1 September 2011 Maturity profile: Spread evenly across 3, 3 4 and 5 year tranches Pricing: Improved by 110 points Banking covenants: Un
Slide 18: Strategy
Strategy Full Year Results | August 2012 18
Slide 19: Business Strategy
Business Strategy Develop organic growth opportunities Diversification: Industry and Geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities Full Year Results | August 2012 19
Slide 20: Express Package & Business Mail
Express Package & Business Mail Network Courier Point-to-Point Point to Point Business Mail Support 1 Full Year Results | August 2012 20
Slide 21: Information Management
Information Management New Zealand Australia Document Storage Data Storage g Document Destruction Full Year Results | August 2012 21
Slide 22: Capital Expenditure
Capital Expenditure 2012 2013 Actual Forecast Capital Expenditure $15m $14m Depreciation p $10m $12m Full Year Results | August 2012 22
Slide 23: Outlook
Outlook Full Year Results | August 2012 23
Slide 24: Outlook
Outlook Potential P t ti l further f th adverse d impact i t on NZ andd Aust A t economiesi as a result lt off issues relating to the global economy that will inevitably influence our business performance, nevertheless we expect gradual overall improvement in the sectors that we operate in, as has
Slide 25: Conclusion
Conclusion Full Year Results | August 2012 25
Slide 26: Conclusion
Conclusion FRE hhas ddelivered li d a result lt that th t is i above b the th prior i year in i all ll respects t andd a record for the company This result again demonstrates the resilience of FRE, the positive features of the industries it operates in, the high quality of its subsidiary busines
Slide 27: Full Year Presentation
Freightways g y Full Year Presentation 13 August 2012