Slide 1: Half Year Results
HALF YEAR RESULTS 19 FEBRUARY 2018
Slide 2: Agenda
HY17 HEADLI NE AGENDA HEADLI NE HEADLI NE • Highlights • Operating Performance • Interim Dividend • Business Strategy • Outlook • Conclusion 1
Slide 3: Highlights
Freightways =
Slide 4: General Highlights
HY17 HEADLI NE GENERAL HIGHLIGHTS HEADLI NE HEADLI NE • Volume and revenue growth achieved in the Express Package businesses and the related earnings that have more than offset the cost impact of significant recent investment in capacity • Overall revenue and earnings growth of the Information Manag
Slide 5: Financial Highlights
HY17 HEADLI NE FINANCIAL HIGHLIGHTS HEADLI NE HEADLI Dec-17 Dec-16 Increase NE Note $M $M % Revenue 292.1 272.8 7.1 EBITA (before non-recurring items) (i) 49.2 46.1 6.9 Non-recurring items - 4.0 EBITA (ii) 49.2 50.1 (1.7) NPAT (before non-recurring items) (iii) 31.4 29.5 6.5 Non-recurring items afte
Slide 6: Non-Recurring Items
HY17 HEADLI NE NON-RECURRING ITEMS HEADLI NE HEADLI NE 2016: A non-recurring benefit before tax of $5.6m (no tax applicable) relating to previously accrued final acquisition payables that are no longer expected to be required. A non-recurring cost before tax of $1.6m ($1.1m after tax) relating to th
Slide 7: Operating Performance
OPERATING PERFORMANCE 1
Slide 8: Operating Revenue
HY17 HEADLI NE Operating Revenue HEADLI NE HEADLI NE 600 500 400 $M 300 200 100 ‐ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year Ended 30 June 2nd Half 1st Half 1
Slide 9: EBITA
HY17 HEADLI NE EBITA HEADLI NE HEADLI NE 100 90 80 70 60 $M 50 40 30 20 10 ‐ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year Ended 30 June 2nd Half NB: This graph represents the operating profit before interest, tax and amortisation of 1st Half intangibles, exclusive of an
Slide 10: Business Segments Operating Performance
HY17 HEADLI NE Business Segments Operating Performance HEADLI NE (Half year ended 31 December 2017) HEADLI NE Revenue EBITA* 26% 29% 74% 71% EP&BM * Excluding non-recurring items IM 1
Slide 11: Express Package & Business Mail
HY17 HEADLI NE EXPRESS PACKAGE & BUSINESS MAIL HEADLI NE HEADLI NE Dec-17 Dec-16 Change $M $M Operating 216.7 202.5 7.0% Revenue EBITDA 39.8 37.3 6.8% EBITA 36.4 34.8 4.6% EBITA Margin 16.8% 17.2% 1
Slide 12: Information Management
HY17 HEADLI NE INFORMATION MANAGEMENT HEADLI NE HEADLI NE Dec-17 Dec-16* Change $M $M Operating 76.3 71.1 7.3% Revenue EBITDA 17.3 15.8 9.6% EBITA 14.6 13.4 9.2% EBITA Margin 19.1% 18.8% * Excluding non-recurring items 1
Slide 13: Balance Sheet – Key Points
HY17 HEADLI NE BALANCE SHEET – KEY POINTS HEADLI NE HEADLI NE • Total Assets have increased since FY17 by $28m, including $9m of intangible assets in respect of the small acquisition of a medical waste business in Australia. Higher trade and other receivables due to increased activity ($12m) also co
Slide 14: Cash Flows – Key Points
HY17 HEADLI NE CASH FLOWS – KEY POINTS HEADLI NE HEADLI NE • Cash generated from operations of $54m was $5m above the PCP. Net cash inflows from operating activities (i.e. after deducting interest and tax payments) were $6m above the PCP at $35m, reflecting comparatively lower tax payments for the p
Slide 15: Capital Expenditure & Depreciation
HY17 HEADLI NE CAPITAL EXPENDITURE & DEPRECIATION HEADLI NE HEADLI NE 2018 2018 Half Year Full Year Actual Forecast $M $M Capital Expenditure 10 16 Depreciation 7 14 1
Slide 16: Interim Dividend
INTERIM DIVIDEND
Slide 17: Interim Dividend
HY17 HEADLI NE INTERIM DIVIDEND HEADLI NE HEADLI NE • Interim dividend: 14.5 cps • Imputation credits: 5.6389 cps (at 28% tax rate) • Supplementary dividend: 2.5588 cps • Record date: 16 March 2018 • Payment date: 3 April 2018 • No DRP was offered in respect of this dividend 1
Slide 18: Business Strategy
BUSINESS STRATEGY 1
Slide 19: Business Strategy
HY17 HEADLI NE BUSINESS STRATEGY HEADLI NE HEADLI NE Express Package & Business Mail • Continued focus on growing B2B market share • Execute B2C strategies which are focussed on a better customer experience and greater efficiency to generate improved returns Information Management • Improve the util
Slide 20: Express Package & Business Mail
HY17 HEADLI NE EXPRESS PACKAGE & BUSINESS MAIL HEADLI NE HEADLI NE 1
Slide 21: B2C Strategy
HY17 HEADLI NE B2C Strategy HEADLI NE HEADLI Segmentation NE and pricing Marketing Data and analytics education B2C Integrated Customer front-end experience software Delivery & collection options and efficiencies 1
Slide 22: Information Management
HY17 HEADLI NE INFORMATION MANAGEMENT HEADLI NE HEADLI NE Manage Transform Destroy Archive Security Imaging & document capture Secure destruction DataBank & Data Security Automated accounts payable eDestruction FileSaver Workflow Solutions Product destruction Secure Distribution Services Digital mai
Slide 23: Information Management revenue streams
HY17 HEADLI NE INFORMATION MANAGEMENT HEADLI NE HEADLI NE Revenue streams: Project Specific Digital – Emerging Physical Service - Existing FY 18 19 20 21 22 1
Slide 24: Outlook
OUTLOOK 1
Slide 25: Outlook
HY17 HEADLI NE OUTLOOK HEADLI NE HEADLI NE • The markets in which Freightways operates remain positive. • Freightways is again targeting year-on-year earnings growth for the full year. • Strategic growth opportunities, including acquisitions and alliances, will be executed where they make commercial
Slide 26: Conclusion
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Slide 27: Conclusion
HY17 HEADLI NE CONCLUSION HEADLI NE HEADLI NE • Evident in this result are the: - strength of Freightways’ business models - expertise of its team of people - positive features of the markets it operates in - opportunities in all of its business lines • The Board of Directors has acknowledged the ou
Slide 28: Half Year Results
HALF YEAR RESULTS 19 FEBRUARY 2018