Slide 1: Freightways Full Year Presentation
Freightways Full Year Presentation 18 August 2014
Slide 2: This presentation relates to the Freightways Limited NZX announcement and media release of 18
This presentation relates to the Freightways Limited NZX announcement and media release of 18 August 2014. As such, it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. The full year financial results presented are drawn from audited finan
Slide 3: Agenda
Agenda 2014 Full Year Highlights Operating Performance Business Strategy Outlook Conclusion Full Year Result | August 2014 Page 3
Slide 4: 2014 Full Year Highlights
2014 Full Year Highlights Full Year Result | August 2014 Page 4
Slide 5: General Highlights
General Highlights Widespread strength of the result Good first half earnings growth, even better in the second half Organic growth strategies well executed and acquisitions successfully integrated A record result for Freightways and a record dividend to shareholders 1 Full Year Result | Aug
Slide 6: Financial Highlights
Financial Highlights Jun-14 Jun-13 Increase $M $M % Operating Revenue 432.3 406.1 6.4% EBITDA* 83.9 77.2 8.7% EBITA* 72.0 65.0 10.7% NPAT* 43.0 38.3 12.2% NPATA* 44.0 38.6 14.0% * Jun-14 excludes a non-recurring $1.25m expense relating to an upcoming acquisition earn-out payable ($1.25m after tax).
Slide 7: Operating Performance
Operating Performance Full Year Result | August 2014 Page 7
Slide 8: Operating Revenue
Operating Revenue 500 400 300 $M 200 100 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Ended 30 June 2nd Half • 6% higher revenue compared to PCP 1st Half • 10-year compound average annual revenue growth of 7.3% Full Year Result | August 2014 Page 8
Slide 9: EBITA
EBITA 80 70 60 50 $M 40 30 20 10 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Ended 30 June 2nd Half • 11% higher EBITA compared to PCP • 10-year compound average annual EBITA growth of 5.9% 1st Half NB: This graph represents the operating profit before interest, tax and amorti
Slide 10: Business Segments Operating Performance (Year ended 30 June 2014)
Business Segments Operating Performance (Year ended 30 June 2014) Revenue EBITA 24% 27% 76% 73% Express Package & Business Mail Information Management 1 Full Year Result | August 2014 Page 10
Slide 11: Express Package & Business Mail
Express Package & Business Mail Jun-14 Jun-13 Increase $M $M % Operating Revenue 331.9 308.3 7.7% EBITDA 60.7 54.8 10.8% EBITA 54.5 48.8 11.7% EBITA Margin 16.4% 15.8% Full Year Result | August 2014 Page 11
Slide 12: Express Package & Business Mail
Express Package & Business Mail Half Year % Increase vs. PCP HY HY Jul-Dec13 Jan-Jun14 % Increase % Increase Operating Revenue 6.5% 8.8% EBITDA 6.4% 15.4% EBITA 7.2% 16.9% Full Year Result | August 2014 Page 12
Slide 13: Information Management
Information Management Jun-14 Jun-13 Increase $M $M % Operating Revenue 102.7 99.9 2.8% EBITDA 24.4 23.2 4.8% EBITA 20.1 18.5 8.4% EBITA Margin 19.5% 18.5% 1 Full Year Result | August 2014 Page 13
Slide 14: Information Management
Information Management Half Year % Increase vs. PCP HY HY Jul-Dec13 Jan-Jun14 % Increase % Increase Operating Revenue 2.8% 2.9% EBITDA 5.0% 4.6% EBITA 7.7% 9.0% 1 Full Year Result | August 2014 Page 14
Slide 15: Balance Sheet – Key Points
Balance Sheet – Key Points Total Assets and Total Liabilities have increased since FY13 by $21m and $8m, respectively, primarily as a result of the acquisitions completed during the year. Approx. $5m was borrowed during the year to assist in funding capital expenditure and acquisitions. However,
Slide 16: Cash Flow – Key Points
Cash Flow – Key Points Cash inflows from operating activities increased by $7m to $60m compared to the PCP, assisted by a $1m lower interest cost this year. Cash outflows from investing activities were $17m higher than the PCP. Reflects $13m more being spent on acquisitions this year and $4m hig
Slide 17: Subsequent Event – Final Dividend
Subsequent Event – Final Dividend Final dividend: 11.25 cps Imputation credits: 4.375 cps (at 28% tax rate) Supplementary dividend: 1.9853 cps Record date: 19 September 2014 Payment date: 6 October 2014 No DRP offered in respect of the 2014 Final Dividend 1 Full Year Result | August 2014
Slide 18: Business Strategy
Business Strategy Full Year Result | August 2014 Page 18
Slide 19: Business Strategy
Business Strategy Develop organic growth opportunities Diversification: Industry and Geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities Full Year Result | August 2014 Page 19
Slide 20: Express Package & Business Mail
Express Package & Business Mail Network Courier Point-to-Point Business Mail Support 1 Full Year Result | August 2014 Page 20
Slide 21: Information Management
Information Management New Zealand Australia Document Storage Data Storage Document Destruction Full Year Result | August 2014 Page 21
Slide 22: Capital Expenditure
Capital Expenditure 2014 2015 Actual Forecast $M $M Capital Expenditure 17.4 17.3 Depreciation & software 11.9 13.5 amortisation Full Year Result | August 2014 Page 22
Slide 23: Outlook
Outlook Full Year Result | August 2014 Page 23
Slide 24: Outlook
Outlook Positive performance expected to continue and deliver year-on-year earnings growth, subject to business factors beyond our control Both Business-to-Business (B2B) and Business-to-Consumer (B2C) volumes expected to increase Our smaller DX Mail business will continue to operate in a chal
Slide 25: Conclusion
Conclusion Full Year Result | August 2014 Page 25
Slide 26: Conclusion
Conclusion FRE has delivered another record result Evident in this result are: - the positive features of the markets that FRE operates in; - the resilience and adaptability of the FRE business model to accommodate growth and changing market circumstances; and - the successful execution of growt
Slide 27: Freightways Full Year Presentation
Freightways Full Year Presentation 18 August 2014