Qube Holdings Ltd. · ASX:QUB
Qube — FY2024 Earnings Presentation
51 slides from Qube's earnings presentation, Aug 22, 2024
Slide 1: Investor Presentation – 2024 Full Year Results
Qube Holdings Limited | ABN 14 149 723 053 Level 27, 45 Clarence Street Sydney NSW 2000 Ph: +61 2 9080 1900 qube.com.au 22 August 2024 ASX Announcement Investor Presentation – 2024 Full Year Results Attached is Qube's Investor Presentation for the year ended 30 June 2024. Authorised for release by:
Slide 2: Qube Holdings Limited FY24 Investor Presentation
Qube Holdings Limited FY24 Investor Presentation
Slide 3: Acknowledgment of Country
Acknowledgment of Country In the spirit of reconciliation, Qube acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past, present and emerging. 22
Slide 4: Disclaimer – Important Notice
Disclaimer – Important Notice The information contained in this Presentation or subsequently provided to the The delivery of this Presentation does not under any circumstances imply that the recipient whether orally or in writing by, or on behalf of Qube Holdings Limited (Qube) affairs or prospects
Slide 5: Table of Contents
Table of Contents 1 FY24 Highlights 2 FY24 Divisional Performance 3 Key Financial Information 4 Summary and FY25 Outlook 5 Additional Information: Operating Division 6 Additional Information: Appendices 4
Slide 6: FY24 Highlights
FY24 Highlights 5
Slide 7: FY24 Highlights
FY24 Highlights FOURTH CONSECUTIVE PERIOD OF DOUBLE DIGIT EARNINGS PER SHARE GROWTH KEY FINANCIAL METRICS1 PERIOD IN REVIEW Statutory Revenue Underlying Revenue +16.6% • Continued strong financial performance reflects resilience of Qube’s $3,357.2 million +17.2% $3,503.6 million business and the mul
Slide 8: Qube's Key Markets
Qube’s Key Markets ATTRACTIVE MARKETS WITH MULTIPLE GROWTH OPTIONS, LOW CORRELATION BETWEEN EARNINGS IN EACH MARKET SUPPORTS LONG TERM EARNINGS GROWTH WITH REDUCED EARNINGS VOLATILITY FY24 PERFORMANCE REVENUE REVENUE MACRO KEY MARKETS FY24 FINANCIAL PERFORMANCE AND FY25 DRIVER CONSTRUCT DRIVER OUTLO
Slide 9: Safety Performance
Safety Performance DELIVERED FURTHER IMPROVEMENT IN SAFETY OUTCOMES ACROSS KEY MEASURES SAFETY & HEALTH PERFORMANCE Total Recordable Injury Frequency Rate (TRIFR) Lost Time Injury Frequency Rate (LTIFR) Critical Injury Frequency Rate (CIFR) TRIFR is the number of recordable Return to Work, Medical T
Slide 10: Qube Revenue Diversity
Qube Revenue Diversity OUR CUSTOMERS AND REVENUES REMAIN GEOGRAPHICALLY DIVERSIFIED REVENUE SEGMENTATION BY REGION FY24 FY23 1,000.0 900.0 800.0 700.0 600.0 $ million 500.0 400.0 300.0 200.0 100.0 $m WA NSW QLD VIC NZ SA TAS NT Others FY24 936.1 795.7 725.6 363.5 250.0 224.3 63.8 71.6 72.4 FY23 824.
Slide 11: Ongoing focus on ROACE
Ongoing focus on ROACE CONTINUED FOCUS ON RETURN ON CAPITAL – TARGET INCREASED TO 12%+ OVER THE MEDIUM TERM ROACE Qube Group Operating Division Patrick 12.0% 6,000.0 12.0% 10.4% 10.5% 4,000.0 12.0% 10.7% 1,500.0 10.2% 10.3% 9.5% 9.6% Average Capital Employed ($m) Average Capital Employed ($m) 3,500.
Slide 12: FY24 Divisional Performance
FY24 Divisional Performance 11
Slide 13: Operating Division
Operating Division STRONG REVENUE AND EARNINGS GROWTH WITH MOST MARKETS DELIVERING GROWTH UNDERLYING REVENUE $m • Strong revenue supported by generally stable volumes and activity +17.2% 3,600 3,503.1 levels across both L&I and P&B business units. 3,500 2.0 3,400 • Revenue growth was supported by or
Slide 14: Logistics and Infrastructure
Logistics and Infrastructure SOLID EARNINGS GROWTH DESPITE DECLINE IN HIGH MARGIN AGRI VOLUMES FINANCIAL PERFORMANCE AND COMMENTARY Change Change • High volumes across most containerised activities including transport, empty FY24 FY23 ($’m) (%) container parks and warehouses. Revenue 1,548.5 1,342.6
Slide 15: Logistics and Infrastructure: MLP IMEX
Logistics and Infrastructure THE MLP IMEX COMMENCED FULLY AUTOMATED OPERATIONS IN LATE FY24 MLP IMEX Terminal • The MLP IMEX Terminal commenced normal automated operations in late FY24. Productivity and accuracy rates are in line with expectations, although further improvement in productivity and ac
Slide 16: Ports and Bulk
Ports and Bulk DELIVERED STRONG GROWTH IN REVENUE AND EARNINGS FINANCIAL PERFORMANCE AND COMMENTARY Change Change FY24 FY23 • ($’m) (%) Strong growth in revenue and earnings reflecting high volumes across most areas. The business unit benefited from contractual adjustments, Revenue 1,954.5 1,649.0 3
Slide 17: Associates - Patrick
Associates - Patrick STRONG CONTRIBUTION FROM HIGH MARKET SHARE FINANCIAL PERFORMANCE AND COMMENTARY Underlying Results FY24 FY23 Change Change • Patrick’s market share increased from 42% to 47% (reaching 50% at one ($’m) (%) stage) predominantly due to the impact of industrial action at DP World. P
Slide 18: Associates – MITCo (MLP Interstate Terminal)
Associates – MITCo (MLP Interstate Terminal) ESTABLISHMENT OF JOINT VENTURE TOWARDS THE END OF THE PERIOD MLP Interstate Terminal • Construction of the MLP Interstate Terminal (Stage 1a) was largely completed in May 2024 at which point it was handed over to the Joint Development Model (JDM) to under
Slide 19: Key Financial Information
Key Financial Information 18
Slide 20: Qube Underlying Results
Qube Underlying Results A STRONG FINANCIAL PERFORMANCE FY24 FY23 • Prior slides speak to the strong Operating Division and Patrick’s Change (%) ($m) ($m) contribution to Qube’s FY24 results. • Other Associates (ex Patrick) contribution to NPAT increased from Revenue 3,503.6 2,989.9 17.2% $7.9 millio
Slide 21: Capital Expenditure
Capital Expenditure ONGOING INVESTMENT IN MAINTENANCE AND GROWTH ASSETS GROSS CASH CAPEX BY BUSINESS UNIT GROSS CASH CAPEX BY CATEGORY Growth MLP Total Gross Disposal Total Net 28.3% Acquisitions1 Growth Maintenance Maintenance Terminals Capex Proceeds Capex1 35.4% L&I 104.7 75.9 57.1 124.6 362.3 (4
Slide 22: Acquisitions completed in FY24
Qube continued its track record of Acquisitions undertaking value-accretive bolt-on completed in FY24 acquisitions Pinnacle Narrabri Property and Infrastructure Stevenson Logistics • Acquired remaining 50% stake on 1 November 2023. • Transaction completed on 28 September 2023. • Transaction complete
Slide 23: Acquisitions to complete in FY25
Qube continued its track record of Acquisitions to undertaking value-accretive bolt-on complete in FY25 acquisitions Melbourne International RoRo & Automotive Terminal (MIRRAT) Colemans • Transaction announced on 27 May 2024. • Acquired on 21 August 2024. • MIRRAT is the only dedicated roll-on, roll
Slide 24: Cash Flow
Cash Flow HIGH CASH GENERATION ALTHOUGH CASH CONVERSION IMPACTED BY WORKING CAPITAL RELATED TO GRAIN TRADING ACTIVITIES CHANGE IN NET BORROWINGS FOR TWELVE MONTHS TO 30 JUNE 2024 +269.6 • Qube’s operations continued 1,300 to generate high cashflows in 1,215.1 (4.6) 1,200 147.5 the period and Qube’s
Slide 25: Balance Sheet & Funding
Balance Sheet & Funding CONTINUED STRONG BALANCE SHEET AND LIQUIDITY POSITION KEY DEBT METRICS DEBT FACILITIES MATURITY PROFILE AT 30 JUNE 2024 700 673.0 Key metrics 30-Jun-24 30-Jun-23 650 101.1 600 Net assets attributable to Qube ($m) 3,115.4 3,035.8 550 500 Net debt ($m)1 1,215.1 945.5 450 $ mill
Slide 26: Summary and FY25 Outlook
Summary and FY25 Outlook 25
Slide 27: FY24 Summary
FY24 Summary STRATEGY CONSISTENTLY DRIVES SUSTAINABLE GROWTH KEY FINANCIAL TARGETS FY24 FY24 Commentary Results Outcome • Consistently delivering revenue growth well above GDP through REVENUE = GDP+ +17.2% (vs FY23) organic and inorganic growth. • Margins declined mainly due to the large increase in
Slide 28: Qube's Strategy
Qube’s Strategy CONSISTENTLY DRIVES SUSTAINABLE GROWTH AND SHAREHOLDER VALUE Underlying Revenue – Operating Division Dividends Underlying EPSA Cents / Cents / $’m Share Share 4,000 10.0 16.0 15.3 CAGR: +18.4% 9.15 CAGR: +20.8% 3,503.1 CAGR: +15.2% 3,500 9.0 14.0 13.6 8.10 2,989.7 8.0 3,000 7.00 12.0
Slide 29: FY25 Outlook
FY25 Outlook FY25 OUTLOOK • Expected to deliver strong underlying revenue and EBITA growth including improved agri volumes, continued high volumes in most areas of OPERATING DIVISION the business (with a moderation in higher margin ancillary revenues at Qube’s automotive terminals), and a contributi
Slide 30: Additional Information: Operating Division
Additional Information: Operating Division 29
Slide 31: Logistics & Infrastructure: Revenue by Region
Logistics & Infrastructure REVENUE BY REGION INDICATIVE REVENUE SEGMENTATION BY REGION FY24 (% of Total Business Unit Revenue) 44.5% 43.6% 45.0% FY23 (% of Total Business Unit Revenue) 40.0% • Revenue growth across all regions in FY24 except QLD and TAS 35.0% which were broadly flat in dollar 30.0%
Slide 32: Ports and Bulk: Revenue by Region
Ports and Bulk REVENUE BY REGION INDICATIVE REVENUE SEGMENTATION BY REGION FY24 (% of Total Business Unit Revenue) 45.0% 43.4% 40.9% FY23 (% of Total Business Unit Revenue) 40.0% • P&B offers a diverse range of services across numerous 35.0% geographies, commodities and 30.0% markets to many differe
Slide 33: Logistics and Infrastructure: Revenue by Industry
Logistics and Infrastructure REVENUE BY INDUSTRY INDICATIVE REVENUE SEGMENTATION BY INDUSTRY 25.0% 23.9% 24.2% FY24 (% of Total Business Unit Revenue) FY23 (% of Total Business Unit Revenue) 20.8% 19.6% 19.3% 20.0% 15.4% 15.0% 13.0% 10.6% 10.0% 9.2% 8.9% 7.9% 7.1% 6.4% 5.0% 3.8% 4.1% 2.9% 2.7% 0.0%
Slide 34: Ports and Bulk: Revenue by Product
Ports and Bulk REVENUE BY PRODUCT INDICATIVE REVENUE SEGMENTATION BY PRODUCT FY24 (% of Total Business Unit Revenue) 14.0% 13.5% 13.0% FY23 (% of Total Business Unit Revenue) 12.2% 11.9% 12.0% 11.3% 11.4% 11.0% 10.2% 10.2% 10.0% 9.2% 9.0% 8.4% 7.8% 8.0% 7.1% 6.8% 6.7% 6.8% 7.0% 6.4% 5.9% 6.0% 6.3% 5
Slide 35: Additional Information (Appendices)
Additional Information (Appendices) 34
Slide 36: Appendix 1: Decarbonisation
Appendix 1: Decarbonisation CONTINUED TO INVEST IN RENEWABLE ENERGY Investing in Renewable Energy • In FY24, Qube continued to invest in onsite rooftop solar at facilities where Qube has long term leases and where batteries make commercial sense. • Qube Bulk installed a 268 kW solar system along wit
Slide 37: Appendix 2: Evolution of Qube
Appendix 2: Evolution of Qube QUBE HAS EVOLVED INTO THE LEADING PROVIDER OF INTEGRATED LOGISTICS SERVICES ACROSS KEY LOCATIONS ~$8b ~$7b The enterprise value of Qube has increased over time, supported by acquisitions to broaden its offering to clients and securing assets located in key supply chain
Slide 38: Appendix 3: MLP Intermodal Precinct
Appendix 3: MLP Intermodal Precinct QUBE SUCCESSFULLY DEVELOPED THE MLP INTERMODAL PRECINCT, OFFERING UNPARALLELED SUPPLY CHAIN BENEFITS, WAREHOUSING OPPORTUNITIES AND SUSTAINABILITY ADVANTAGES Commentary MLP Intermodal Precinct When Fully Developed • In 2007, the consortium (in which Qube represent
Slide 39: Appendix 4: Margin Performance
Appendix 4: Margin Performance MARGIN IMPROVEMENT ACROSS THE GROUP ALTHOUGH HEADLINE MARGIN IMPACTED BY COMMENCEMENT OF GRAIN TRADING ACTIVITIES MARGINS Operating Division Logistics and Infrastructure EBITDA (%) EBITDA - ex Grain Trading (%) EBITDA (%) EBITDA - ex Grain Trading (%) EBITA (%) EBITA -
Slide 40: Appendix 5: Qube Remains Highly Resilient To Challenges
Appendix 5: Qube Remains Highly Resilient To Challenges KEY CHALLENGES SKILLED LABOUR INFLATION ECONOMIC DOWNTURN WEATHER INDUSTRIAL RELATIONS COMPETITION SHORTAGES • Inflationary impact • Ongoing impact in • Some impact on • While there has been • Some disruptions • No major changes to ongoing but
Slide 41: Appendix 6: Container Volume Market Growth
Appendix 6: Container Volume Market Growth HISTORICAL MARKET GROWTH FY09-FY24 Average FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Compound Growth Market (m lifts) 3.5 3.7 3.9 4.0 4.0 4.2 4.3 4.3 4.5 4.8 4.8 4.6 5.0 5.0 5.0 5.1 Growth 3.5% 5.8% 4.2% 0.4% 3.3% 2.3%
Slide 42: Appendix 7: Qube Proportional Underlying Results
Appendix 7: Qube Proportional Underlying Results QUBE PROPORTIONAL UNDERLYING RESULTS Full Year Result Including Proportional Patrick FY24 FY23 Change (%) ($m) ($m) Revenue 3,962.2 3,380.2 17.2% EBITDA 723.6 617.6 17.2% EBITA 469.2 394.9 18.8% EBITDA Margin 18.3% 18.3% - EBITA Margin 11.8% 11.7% 0.1
Slide 43: Appendix 8: Qube Statutory Results
Appendix 8: Qube Statutory Results FY24 FY24 FY23 (excl. (incl. (incl. • Statutory earnings are shown exclusive Discontinued discontinued discontinued discontinued Change (%) and inclusive of the discontinued Property operations1 operations) operations) operations) Division. ($m) ($m) ($m) • The rec
Slide 44: Appendix 9: Reconciliation of FY24 Statutory Earnings to Underlying Earnings
Appendix 9: Reconciliation of FY24 Statutory Earnings to Underlying Earnings Operating Discontinued Corporate Patrick Consolidated Statutory earnings include the following key Year Ended 30 June 2024 Division Operations and Other ($m) ($m) items which have been excluded from ($m) ($m) ($m) underlyin
Slide 45: Appendix 10: Reconciliation of FY23 Statutory Earnings to Underlying Earnings
Appendix 10: Reconciliation of FY23 Statutory Earnings to Underlying Earnings Operating Discontinued Corporate Patrick Consolidated Year Ended 30 June 2023 Division Operations and Other ($m) ($m) ($m) ($m) ($m) Statutory net profit/(loss) before income tax 287.9 (7.4) (88.2) 42.4 234.7 Share of (pro
Slide 46: Appendix 11: Qube Underlying Results
Appendix 11: Qube Underlying Results Logistics and Ports and Divisional Year Ended 30 June 2024 Patrick Corporate Total Qube Infrastructure Bulk Corporate Revenue 1,548.5 1,954.5 0.1 0.5 3,503.6 EBITDA 309.1 308.2 (44.8) (38.4) 534.1 Depreciation (70.5) (142.1) (2.7) (0.4) (215.7) EBITA 238.6 166.1
Slide 47: Appendix 12: Operating Division Underlying Results
Appendix 12: Operating Division Underlying Results FY24 FY23 Change (%) ($m) ($m) Total revenue 3,503.1 2,989.7 17.2% EBITDA 572.5 503.2 13.8% Depreciation (215.3) (184.2) (16.9%) EBITA 357.2 319.0 12.0% Amortisation (6.7) (8.0) 16.3% EBIT 350.5 311.0 12.7% Share of Profit of Associates (ex Patrick)
Slide 48: Appendix 13: Operating Division Underlying Results by Business Unit
Appendix 13: Operating Division Underlying Results by Business Unit FY24 FY23 FY24 FY23 Change (%) Change (%) ($m) ($m) ($m) ($m) Logistics & Infrastructure 1,548.5 1,342.6 15.3% Logistics & Infrastructure 20.0% 21.2% (1.2%) Ports & Bulk 1,954.5 1,649.0 18.5% Ports & Bulk 15.8% 15.4% 0.4% Divisional
Slide 49: Appendix 14: Patrick Underlying Results
Appendix 14: Patrick Underlying Results FY24 FY23 Change (%) ($m) ($m) 100% Revenue 917.1 780.6 17.5% EBITDA 378.9 305.5 24.0% Depreciation (77.4) (76.4) (1.3%) EBITA 301.5 229.1 31.6% Amortisation (24.4) (26.4) 7.6% EBIT 277.1 202.7 36.7% Interest Expense (Net) - External (66.3) (48.9) (35.6%) Inte
Slide 50: Appendix 15: Other – Underlying Results
Appendix 15: Other – Underlying Results FY24 FY23 Corporate Change (%) ($m) ($m) Revenue 0.5 0.1 400.0% EBITDA (38.4) (38.4) - Depreciation (0.4) (0.3) (33.3%) EBITA (38.8) (38.7) (0.3%) Amortisation - - - EBIT (38.8) (38.7) (0.3%) FY24 FY23 Qube Share of Profit of Associates (excluding Patrick) Cha
Slide 51: Q&A
Q&A 50