Slide 1: Moving Forward: Freightways 2020 Annual Shareholders Meeting
MOVING FORWARD Freightways 2020 Annual Shareholders Meeting
Slide 2: Mark Verbiest, Chairman
Mark Verbiest CHAIRMAN Freightways Limited and its subsidiaries. Annual Shareholder Meeting Presentation Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 3: Today's Business
Today’s Business 1. CHAIRMAN’S INTRODUCTION 2. CEO’S REVIEW & TRADING UPDATE 3. RESOLUTIONS Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 4: General Highlights
General Highlights Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 5: Highlights: COVID-19 Impacts
Highlights COVID-19 Impacts • Safe working practices including contactless delivery • Reduced working hours to meet lower demand and reduced salaries and fees • Redirected resources to where they were most required as volumes returned • Adjusted linehaul and airfreight sectors to meet demand • Prote
Slide 6: Highlights: Express Package & Business Mail
Highlights Express Package & Business Mail • Encouraging organic volume in March – prior to level 4 lockdown • Dramatic change in volume through lockdown levels 4 to 2 including a swing toward home delivery • Pricing for Effort of 73c per item by June assisted to generate some margin from home deliv
Slide 7: Highlights: Information Management & Secure Destruction
Highlights Information Management & Secure Destruction • Storage revenue was resilient, but activity declined dramatically through lockdown – by up to 90% in NZ and 25% in Australia • Print and copy declined by up to 50% in Australia • In Victoria many businesses are yet to return to their offices i
Slide 8: Financial Summary for the year ended 30 June 2020
Financial Summary For the year ended 30 June 2020 FY19 FY20 Change IFRS16 Excl. IFRS16 Excl. Excl. Note GAAP lease adj. leasing GAAP lease adj. leasing GAAP leasing $M $M $M $M $M $M % % Revenue 615.7 - 615.7 630.9 - 630.9 2.5 2.5 EBITA, before non-recurring items i. 96.8 - 96.8 97.8 5.3 92.5 1.0 (4
Slide 9: Non-recurring Items
Non-recurring Items 2020 2019 2020 Non-recurring benefits before tax totalling $2.6 million (no tax Non-recurring (gains) losses: $000 applicable) in respect of reversing $1.6 million of a previously Impairment of goodwill 5,194 accrued final acquisition payable that is no longer expected to be requ
Slide 10: Express Package & Business Mail; Information Management
Express Package & Business Mail For the year ended 30 June 2020 FY19 FY20 Change $M $M % Operating Revenue 453.0 474.4 4.7 EBITDA 80.0 85.6 7.0 EBITA 72.2 75.9 5.2 EBITA Margin 15.9% 16.0% Information Management For the year ended 30 June 2020 FY19 FY20 Change $M $M % Operating Revenue 164.5 158.7 (
Slide 11: Dividend
• The prudent course of action was to not declare a final dividend for FY20 given a number of factors, principally; – Trading uncertainty in both the NZ and Australian markets at each level of lockdown – The consensus is that the full economic impact has yet to be felt in either country at this stag
Slide 12: Mark Troughear, Chief Executive Officer
Mark Troughear CHIEF EXECUTIVE OFFICER Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 13: Today's Business
Today’s Business 1. BUSINESS STRATEGY 2. ESG INITIATIVES 3. TRADING UPDATE 4. OUTLOOK Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 14: Video
Video Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 15: Strategy
Strategy Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 16: Express Package Strategy
Express Package STRATEGY • Pricing For Effort: Stage II has been launched effective 1st August at an additional 50c per item • We have elected to levy a modest 1.9% price increase across all services • NOW Couriers same-day-guaranteed service has been launched in Auckland • Streamlined IT systems wi
Slide 17: Business Mail Strategy
Business Mail STRATEGY Image • Continue to expand our network to meet customer demand and achieve greater efficiencies through scale • Provide customers with a multi-channel offer (digital and physical mail) • Provide high levels of service at premium prices Freightways Limited and its subsidiaries.
Slide 18: Information Management Strategy
Information Management STRATEGY • Target alternate storage revenue streams in NSW and WA while Archives continue to be slow to transition in • Continue to grow Digitisation which will largely shift from FY20 to FY21, there are significant opportunities in the pipeline for FY21 & FY22 • Develop new s
Slide 19: Secure Destruction Strategy
Secure Destruction STRATEGY Image • Continue to target market share gains in all lines of business • Target new waste streams to divert from landfill • Use a combination of acquisition, alliance and start-ups to grow scale in NZ and AU • Generate transport efficiencies across the Shred-X and Med-X f
Slide 20: SDG Update
SDG UPDATE 1,000 People Registered 250 Leaders attended Mental Health Awareness training in FY20 250 LTIFR (12 months rolling) 9 Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation. In FY20
Slide 21: SDG Update
SDG UPDATE Increase in contractor 10% income YOY Q1. 200 Aspiring leaders attended 200 50:50 development training. Gender Mix Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 22: SDG Update
SDG UPDATE New product development LTIFR -3 to 9 Express Package Productivity 4.5% 4.5% improvement in items per route. Expand Medical Waste Provide footprint critical Freightways Limited and its subsidiaries. capacity Annual Shareholder 2020 Meeting Presentation. In FY21
Slide 23: SDG Update
Top 10 NZ Business Carbon Reduce & SDG UPDATE Carbon Zero (measure and report LTIFR -3 to 9 ISO 14064-1 organisation) Fleet modernisation & run rationalisation, EV Trials Member of Love NZ Soft Plastic Recycling Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 24: Q1 Trading Update
Q1 Trading Update Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 25: Highlights: Q1 Consolidated Performance
Highlights Q1 Consolidated Performance Unaudited Q1 FY21 Q1 FY20 Increase Note $M $M % Operating Revenue 211.7 156.7 35.1 EBITDA (i) 49.4 33.6 47.0 EBITA (ii) 34.8 23.3 49.1 NOTES (i) Operating profit before interest, tax, NPATA (iii) 21.1 14.0 50.9 depreciation and amortisation (ii) Operatin
Slide 26: Highlights: Q1 Express Package & Business Mail
Highlights Q1 Express Package & Business Mail Unaudited and excludes new lease accounting Q1 FY21 Q1 FY20 Increase $M $M % Operating Revenue 168.4 115.6 45.7 EBITDA 30.2 19.7 53.8 EBITA 27.3 17.5 55.6 EBITA Margin 16.2% 15.2% Note: • Freightways uses a 4-4-5 weeks accounting calendar. In the
Slide 27: Highlights: Q1 Information Management
Highlights Q1 Information Management Unaudited and excludes new lease accounting Q1 FY21 Q1 FY20 Increase $M $M % Operating Revenue 43.8 41.5 5.4 EBITDA 9.9 7.6 30.8 EBITA 7.9 5.9 33.4 EBITA Margin 18.1% 14.3% Note: • Refer to appendix for reconciliation to GAAP results Freightways Limited a
Slide 28: Outlook
Outlook Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 29: Outlook
Outlook Whilst the future economic environment remains highly uncertain, we are encouraged by the strong trading results achieved in the first quarter of FY21 which reflect improved margin, organic growth and market share gains in all our businesses We expect that – In Express Package, volume will b
Slide 30: Resolutions
Resolutions Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 31: Resolutions
Resolutions 1. RE-ELECTION OF DIRECTOR: MARK RUSHWORTH 2. AUTHORITY TO FIX AUDITOR’S REMUNERATION Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 32: Resolution 1: Re-Election of Mark Rushworth
Resolution 1. Mark Rushworth Re-Election of Mark Rushworth. Mark who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company. Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 33: Resolutions
Resolutions 1. RE-ELECTION OF DIRECTOR: MARK RUSHWORTH 2. AUTHORITY TO FIX AUDITOR’S REMUNERATION Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 34: Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Freightways Limited and its subsidiaries. Annual Shareholder 2020 Meeting Presentation.
Slide 35: Appendix: Reconciliation to GAAP, year ended June 2020
Appendix: Reconciliation to GAAP For the year ended 30 June 2020 Express Package & Business Mail FY19 FY20 Change $M $M % Operating Revenue 453.0 474.4 4.7 EBITDA (before non-recurring items and NZ IFRS16) 80.0 85.6 7.0 Non-recurring items - (3.3) 100.0 NZ IFRS16 adjustment - 16.1 100.0 EBITDA (afte
Slide 36: Appendix: Reconciliation to GAAP, quarter ended September 2020
Appendix: Reconciliation to GAAP For the quarter ended 30 September 2020 Express Package & Business Mail Q1 F Y20 Q1 F Y21 C ha nge $M $M % Operating Revenue 115.6 168.4 45.7 EBITDA (before NZ IFRS16) 19.7 30.2 53.8 NZ IFRS16 adjustment 2.9 6.6 129.9 EBITDA (after NZ IFRS16) 22.5 36.9 63.5 EBITA (be
Slide 37: Appendix: Reconciliation to GAAP, Information Management
Appendix: Reconciliation to GAAP For the quarter ended 30 September 2020 Information Management Q1 F Y20 Q1 F Y21 C ha nge $M $M % Operating Revenue 41.5 43.8 5.4 EBITDA (before NZ IFRS16) 7.6 9.9 30.8 NZ IFRS16 adjustment 4.4 4.4 -0.2 EBITDA (after NZ IFRS16) 12.0 14.3 19.4 EBITA (before NZ IFRS16)
Slide 38: Disclaimer
Disclaimer. This presentation has been prepared by Freightways Limited ("Freightways") for information purposes only. This presentation is not a product disclosure statement, prospectus or investment statement. Nothing in this presentation constitutes an invitation to subscribe for shares, securitie