Slide 1: Freightways Full Year Presentation
Freightways Full Year Presentation 15 August 2011
Slide 2: This presentation
This presentation Thi t ti relates l t tot the th Freightways F i ht Li it d NZX Limited announcement and media release of 15 August 2011. As such it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. These full year results are drawn from
Slide 3: Agenda
Agenda • 2011 Full Year Highlights • Operating Performance • Business Strategy • Outlook 1
Slide 4: 2011 Full Year Highlights
2011 Full Year Highlights
Slide 5: General Highlights
General Highlights • E Express Package P k & Business B i Mail M il division di i i again i demonstrated d t t d its it ability to deliver double digit EBITA growth in Q2 and Q4 • New operations started-up in NSW, WA and SA now means FRE can offer a nationwide Information Management service to its A
Slide 6: Financial Highlights
Financial Highlights Jun-11 Jun-10 Variance $M $M % O Operating ti Revenue R 353 329 7% EBITDA* 66 64 4% EBITA* EBITA 57 54 5% NPAT* 31 29 7% * Jun-11 e xclude s non-re curring e arthquak e cos ts $1.3m ($0.9m ne t of tax) J Jun-10 10 NPAT e xclude l d s one -off ff abnorm b all tax t charge h $5.7m
Slide 7: Operating Performance
Operating Performance Freightways
Slide 8: Operating Revenue
Operating Revenue 400 350 300 $M 250 200 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ended 30 June 2nd Half • 8% higher revenue compared to PCP 1st Half • 10-year compound average annual revenue growth of 7%
Slide 9: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 370 360 1.6% 0.3% 353 350 2.9% % 2.5% 340 $M 330 329 320 310 300 2010 Volume Pricing Net new business Acquisition 2011 Growth Drivers 1
Slide 10: EBITA
EBITA* EBITA 70 60 50 $M 40 30 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ended 30 June 2nd Half 1st Half • 5% higher EBITA compared to PCP • 10-year compound average annual EBITA growth of 9% *2011 excludes l d non-recurring i earthquake th k costs t $1 $1.3m 3
Slide 11: Business Segments Operating Performance (Year Ended 30 June 2011)
Business Segments g Operating Performance (Year Ended 30 June 2011) Revenue 79% 21% Express Package & Business Mail Information Management 1
Slide 12: Express Package & Business Mail
Express Package & Business Mail Jun-11 Jun-10 Variance $M $M % Operating revenue 278 264 5% EBITDA 50 49 2% EBITA 45 43 4% EBITA M argin 16% 16% 1
Slide 13: Information Management
Information Management Jun-11 Jun-10 Variance $M $M % Operating revenue 76 66 15% EBITDA 17 16 13% EBITA 14 12 12% EBITA M argin 18% 19% 1
Slide 14: Balance Sheet – Key Points
Balance Sheet – Key Points • Movement in Total Assets and Total Liabilities above FY10 by $17m and $7m,, respectively, p y, driven mainlyy byy translation to NZD using the stronger NZD:AUD exchange rate at year end • No change in level of NZD or AUD bank borrowings from FY10 • No significant changes
Slide 15: Cash Flow – Key Points
Cash Flow – Key Points • C Cashh inflows i fl f from operating ti activities ti iti - $4m $4 up on PCP ddue tto lower interest payments from a timing perspective • Cash outflows from investing activities - $7m higher than PCP due to a small acquisition and higher investment in property, plant & equi
Slide 16: Subsequent Event – Final Dividend
Subsequent Event – Final Dividend • Final Fi l dividend: di id d 7 25 cps 7.25 • Imputation p credits: 3.11 cps p • Supplementary dividend: 1.28 cps • Record date: 16 September 2011 • Payment date: 30 September 2011 • No DRP offered in respect of the 2011 Final Dividend 1
Slide 17: Subsequent Event – Bank Funding Renewal
Subsequent Event – Bank Funding Renewal • Multi-currency M li f ili i NZD110m facilities: NZD110 & AUD70m AUD70 • Syndication: y Continuation of existingg 3 banks as lenders • Effective date: 1 September 2011 • Maturity profile: spread evenly across 3, 4 and 5 year tranches • Pricing: Improved by 11
Slide 18: Strategy
Strategy SA ee 19001667555 Freightways
Slide 19: Business Strategy
Business Strategy • Develop organic growth opportunities • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 20: Express Package and Business Mail
Express Package and Business Mail Network Courier Point - to - Point Business Mail Support pp 1
Slide 21: Information Management
Information Management New Zealand NSW VIC QLD ACT SA WA Document Storage Data Storage Document Destruction
Slide 22: Capital Expenditure
Capital Expenditure 2011 2012 Actual Forecast Capital expenditure $14m $17m Depreciation $10m $11m
Slide 23: Outlook
Outlook Freightways
Slide 24: Outlook
Outlook • Continued gradual improvement in FRE’s market segments expected p with consequently q y improving p g FRE pperformance • If recent EP&BM growth from existing customers can be maintained, 2011 improvement is expected to be sustained • IM transitioning through a period of significant capacit
Slide 25: Conclusion
Conclusion ead RNG em bike Freightways
Slide 26: Conclusion
Conclusion • FRE hhas ddelivered li d a full f ll year result l that h again i demonstrates d good progress and is above the prior year in all respects • This result again demonstrates the resilience of FRE, the positive features of the markets it operates in and the high quality of its subsidiary b
Slide 27: Freightways Full Year Presentation
Freightways Full Year Presentation 15 August 2011