Slide 1: Full Year Results
FULL YEAR RESULTS 14 August 2017
Slide 2: Agenda
HY17 HEADLI NE HEADLI NE HEADLI NE AGENDA • Highlights • Operating Performance • Final Dividend • Business Strategy • Outlook • Conclusion
Slide 3: Highlights
HY17 HEADLI NE HEADLI NE HEADLI NE HIGHLIGHTS
Slide 4: General Highlights
HY17 HEADLI NE GENERAL HIGHLIGHTS HEADLI NE HEADLI NE • Strength of underlying volume growth and margins in the Express Package & Business Mail division • Completion of significant projects to budget and within timetable that ensure important future capacity for both divisions • Execution of robust
Slide 5: Financial Highlights
HY17 HEADLI NE FINANCIAL HIGHLIGHTS HEADLI NE HEADLI 2017 2016 Increase NE Note $M $M % Revenue 545.3 505.4 7.9 EBITA (before non-recurring items) (i) 89.3 87.7 1.9 Non-recurring items 3.7 (6.3) EBITA (ii) 93.0 81.4 14.3 NPAT (before non-recurring items) (iii) 56.6 54.4 4.1 Non-recurring items after
Slide 6: Non-Recurring Items
HY17 HEADLI NE NON-RECURRING ITEMS HEADLI NE HEADLI NE • 2017: 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 $1.9m ($1.3m after tax) relating to
Slide 7: Operating Performance
HY17 HEADLI NE HEADLI NE HEADLI NE OPERATING PERFORMANCE
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 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 Year Ended 30 June 2nd Half NB: This graph represents the operating profit before interest, tax and amortisation of 1st Half intangibles, exclusive of any non
Slide 10: Business Segments Operating Performance
HY17 HEADLI NE Business Segments Operating Performance HEADLI NE (Year ended 30 June 2017) HEADLI NE Revenue EBITA* 26% 27% 74% 73% 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 Jun-17 Jun-16 Change $M $M Operating 402.6 370.3 8.7% Revenue EBITDA* 70.4 66.5 5.8% EBITA* 65.3 62.1 5.1% EBITA Margin* 16.2% 16.8% * Excluding non-recurring items 1
Slide 12: Information Management
HY17 HEADLI NE INFORMATION MANAGEMENT HEADLI NE HEADLI NE Jun-17 Jun-16 Change $M $M Operating 144.2 136.8 5.4% Revenue EBITDA* 32.7 33.2 (1.5)% EBITA* 27.7 28.4 (2.7)% EBITA Margin* 19.2% 20.8% * 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 FY16 by $30m, primarily as a result of capacity investment ($12m), particularly at the new Christchurch hub, and for enhanced IT solutions. Intangible assets in respect of the LexData acquisition of $5m
Slide 14: Cash Flows – Key Points
HY17 HEADLI NE CASH FLOWS – KEY POINTS HEADLI NE HEADLI NE • Cash generated from operations of $100m was $7m above the PCP. Net cash inflows from operating activities (i.e. after deducting interest and tax payments) were $4m above the PCP at $65m, reflecting the net impact of lower interest, but hig
Slide 15: Capital Expenditure & Depreciation
HY17 HEADLI NE CAPITAL EXPENDITURE & DEPRECIATION HEADLI NE HEADLI NE 2017 2018 Full Year Full Year Actual Forecast $M $M Capital Expenditure 24.1 16.9 Depreciation 11.7 13.9 1
Slide 16: Final Dividend
HY17 HEADLI NE HEADLI NE HEADLI NE FINAL DIVIDEND
Slide 17: Final Dividend
HY17 HEADLI NE FINAL DIVIDEND HEADLI NE HEADLI NE • Final dividend: 14.75 cps • Imputation credits: 5.7361 cps (at 28% tax rate) • Supplementary dividend: 2.6029 cps • Record date: 15 September 2017 • Payment date: 2 October 2017 • No DRP was offered in respect of this dividend 1
Slide 18: Business Strategy
HY17 HEADLI NE HEADLI NE HEADLI NE BUSINESS STRATEGY
Slide 19: Business Strategy
HY17 HEADLI NE BUSINESS STRATEGY HEADLI NE HEADLI NE Execute organic growth opportunities Diversification by industry and geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities 1
Slide 20: Express Package & Business Mail
HY17 HEADLI NE EXPRESS PACKAGE & BUSINESS MAIL HEADLI NE HEADLI NE Network Courier Point‐to‐Point Business Mail Support 1
Slide 21: 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 22: Outlook
HY17 HEADLI NE HEADLI NE HEADLI NE OUTLOOK
Slide 23: Outlook
HY17 HEADLI NE OUTLOOK HEADLI NE HEADLI NE • The markets in which Freightways operates remain positive. • Volumes and activity expected to increase during 2018 from both existing and new customers. • Freightways is again targeting year-on-year earnings growth • Express Package & Business Mail: Inves
Slide 24: Conclusion
HY17 HEADLI NE HEADLI NE HEADLI NE CONCLUSION
Slide 25: Conclusion
HY17 HEADLI NE CONCLUSION HEADLI NE HEADLI NE • Evident in this result are the: - strength of Freightways business models - expertise of our team of people - positive features of the markets we operate in • Directors acknowledge the outstanding work and ongoing dedication of the Freightways team of
Slide 26: Full Year Results
HY17 HEADLI NE HEADLI NE HEADLI NE FULL YEAR RESULTS 14 August 2017