Freightways Group Limited · NZX:FRW
Freightways — Non-Deal Roadshow (August 2004)
21 slides from Freightways's roadshow presentation, August 2004
Slide 1: Fisher Funds Annual Roadshow August 2004
Fisher Funds Annual Roadshow August 2004
Slide 2: Presentation
Presentation Introduction to Freightways Industry, business description and strategy Financial performance Recent events and outlook
Slide 3: Introduction
Introduction • Listed on the NZX September 2003 • Established in 1964 • Express package, mail, information management • Approx. 7,000 retail and institutional shareholders • Revenue $214m, EBITA $41m, NPAT $16m
Slide 4: A Survivor
A Survivor • Freightways’ businesses have survived: - Regulated / deregulated road transport industry - Substitute services: fax machine and email - Many competitors - Three owners in the last two years
Slide 5: Express Package Industry
Express Package Industry Overview and Business Description
Slide 6: Freightways
Freightways
Slide 7: Express Package Industry
Express Package Industry • Two segments to Express Package industry – Network couriers 90% of industry revenue – Point-to-point couriers 10% • Services embedded in supply chains of businesses • Consolidated industry structure • Growth underpinned by demand for Just in Time supply
Slide 8: Business Description - Strengths
Business Description - Strengths • Network of independent contractors • Dedicated express package linehaul network • Operational excellence and profit culture • Experienced people • Established multi-brand strategy
Slide 9: Multi-Brand Strategy
Multi-Brand Strategy Three major brands: Freightways’ Network Courier Brands Price – Differentiated by price and service – Captures growth across Service entire market – Provides defence against competitive threats
Slide 10: Information Management and Business Mail
Information Management and Business Mail Industry Overview and Business Description
Slide 11: Information Management
Information Management • Well positioned in each niche • Offers a total information management solution • Integrated with express package operations • Records management growth opportunity
Slide 12: Business Mail
Business Mail • Niche player in deregulated postal services industry • Postal deregulation enabled expansion of DX Mail • Growth opportunities in business mail segment • Drives volume to New Zealand Couriers
Slide 13: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 14: Business Strategy
Business Strategy • Revenue growth from existing and complementary markets: – Increase volumes from existing customers – Gain new customers – Achieve some price improvements • Converted into strong earnings growth: – Ability to grow volume at low incremental cost – Volume growth drives efficiencies/
Slide 15: Financial Performance
Financial Performance
Slide 16: Operating Revenue
Operating Revenue 250 200 150 $M 100 50 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Year Ended • 10% revenue growth in 2004 • 5 year compound average revenue growth of 7%
Slide 17: EBITA
EBITA 45 40 35 30 25 $M 20 15 10 5 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Year Ended • 27% EBITA growth in 2004 • 5 year compound average EBITA growth of 18%
Slide 18: Recent Events and Outlook
Recent Events and Outlook
Slide 19: Recent Events
Recent Events • Transition to a listed NZ company Sept. 2003 • Acquisition of Archive Security • Actual 2004 financial performance exceeded IPO forecasts on all fronts
Slide 20: Outlook
Outlook • Economy favourable from Freightways’ perspective • No change expected in Freightways’ operating environment • Sustained focus on core business / core strategies • Business as usual
Slide 21: Summary
Summary Strong successful business Positioned to deliver continuing earnings growth Delivering an attractive dividend yield