Qube Holdings Ltd. · ASX:QUB
Qube — FY2020 Earnings Presentation
35 slides from Qube's earnings presentation, Aug 25, 2020
Slide 1: Investor Presentation – FY20 Final Results
25 August 2020 ASX Announcement Investor Presentation – FY20 Final Results Attached is Qube's Investor Presentation for the year ended 30 June 2020. Authorised for release by: The Board of Directors, Qube Holdings Limited For further information, please contact: Media: Analysts / Investors: Paul Whi
Slide 2: Qube Holdings Limited Investor Presentation FY20 Full Year Results
QUBE HOLDINGS LIMITED Investor Presentation FY 20 Full Year Results
Slide 3: Disclaimer – Important Notice
Disclaimer – Important Notice The information contained in this Presentation or subsequently provided to the recipient whether orally or in writing by, or on behalf of Qube Holdings Limited (Qube) or any of its directors, officers, employees, agents, representatives and advisers (the Parties) is pro
Slide 4: Table of contents
Table of contents 1. FY 20 Results Highlights 2. Key Financial Information 3. FY 21 Outlook 4. Appendices – Additional Financial Information 3
Slide 5: FY 20 Results Highlights
FY 20 Results Highlights Resilience of business has delivered sound results given unprecedented challenges Full Year in review Key financial metrics • Sound result reflecting the quality and resilience of Qube’s business which is underpinned by strong competitive positions in attractive markets and
Slide 6: FY 20 Results Highlights – Revenue and EBITA
FY 20 Results Highlights Sound results given considerable and unprecedented challenges Underlying revenue (+9.0%) Underlying EBITA (-11.2%) 2,000 1,883.6 200 1,728.6 (5.8) 180.5 1,800 160.8 180 3.1 (19.0) 160.3 1,600 160 (4.3) 1,400 140 1,200 120 $ million $ million 1,000 100 800 80 600 60 400 40 20
Slide 7: FY 20 Results Highlights – NPATA and EPSA
FY 20 Results Highlights Sound results given considerable and unprecedented challenges 150 Underlying NPATA (-12.9%) Underlying EPSA (-15.3%) 139.2 2.2 9.0 8.5 135 (13.4) 8.3 121.2 0.1 120 (3.6) 1.5 (3.0) (1.7) 8.0 (0.8) 7.2 (0.2) 0.1 (0.2) (0.1) 105 7.0 $ million 90 6.0 cents per share 75 5.0 60 4.
Slide 8: FY 20 Results Highlights – Challenges
FY 20 Results Highlights Challenges • H1 FY 20 saw weakness in several of Qube’s key markets including container volumes, vehicle imports and rural H1 FY 20 H2 FY 20 FY 20 Growth in underlying metrics (%) commodities. Despite these headwinds, the strong market positions and diversification enabled Q
Slide 9: Results reflect the benefits of Qube's diversified activities
FY 20 Results Highlights Results reflect the benefits of Qube’s diversified activities FY20 underlying revenue1,2,3 FY20 underlying NPATA1,2 Other • Qube’s revenue and earnings are Patrick Associates 14.2% diversified, including by: 0.6% Infrastructure Patrick o Business & Property 20.8% 4.5% Logist
Slide 10: Indicative Revenue Segmentation – Logistics business unit
FY 20 Results Highlights Indicative Revenue Segmentation – Logistics business unit Logistics revenue by region • Highly diversified business weighted towards the major capital cities on the east coast FY 20 Global SA Forwarding FY 19 SA Global Forwarding • Revenue growth in all states in dollar term
Slide 11: Indicative Revenue Segmentation – Ports & Bulk business unit
FY 20 Results Highlights Indicative Revenue Segmentation – Ports & Bulk business unit Ports & Bulk revenue by region • Highly diversified business geographically and by Asia commodity/product/service FY 20 Asia FY 19 NZ QLD NZ 1.8% QLD 1.6% 11.7% 12.2% 13.2% • WA benefitted from the new BHP Nickel W
Slide 12: Continued focus on Safety, Health and Sustainability
FY 20 Results Highlights Continued focus on Safety, Health and Sustainability Safety and Health COVID-19 Lost Time Injury Frequency Rate Total Recordable Injury Frequency Rate 8 (LTIFR)* (TRIFR)** • Qube is continuing to closely monitor developments in relation 6.6 to COVID-19 and is taking active m
Slide 13: Innovation and Technology
FY 20 Results Highlights Innovation and Technology • Qube has a strong track record of leveraging technology to POD™ Trailer Technology Remote Control Loading deliver innovative supply chain solutions to its clients which supports its customer retention and long term growth • Qube has formed a Group
Slide 14: Moorebank Logistics Park – Development update
FY 20 Results Highlights Moorebank Logistics Park – Development update Planning approvals Development timeline CY 20 CY 21 CY 22 CY 23 CY24+ • Approval for Moorebank Precinct West (MPW) Stage 2 was granted on 11 November 2019, H2 H1 H2 H1 H2 H1 H2 H1 H2 for the Interstate Terminal and an additional
Slide 15: Moorebank Logistics Park – Leasing update
FY 20 Results Highlights Moorebank Logistics Park – Leasing update Leasing developments I I • Qube exchanged two Agreements for Lease and two Development Management Agreements with MPW MPE Woolworths to develop a National Distribution Centre and a Regional Distribution Centre on MPW N N Display Suit
Slide 16: Moorebank Logistics Park – Minimum estimated development capex
FY 20 Results Highlights Moorebank Logistics Park – Minimum estimated development capex Key drivers of increase in minimum capex estimates • The minimum remaining capex spend from FY 20 onwards is estimated to be between $1.1 billion and $1.2 billion, representing an increase of around $610-700 mill
Slide 17: Moorebank Logistics Park – Construction progress
FY 20 Results Highlights Moorebank Logistics Park – Construction progress MPE – New warehouses completed (W1, W3 & W4) MPE – New crane for future MPE – Finalisation of land preparation and W5 (in construction) IMEX automated operations Future site of Warehouse 6, 7 and 8 W4 W1 W2 W5 W3 W4 MPW – Land
Slide 18: Patrick
FY 20 Results Highlights Patrick Volumes Financial highlights TEU growth /(reduction) Lift growth /(reduction) Indicative volume (lift) Distributions to Qube segmentation – Patrick (FY20) vs pcp vs pcp of $20.0 million East Underlying revenue Qube’s share of Return of capital $2.2m Fremantle H1FY20
Slide 19: Key Financial Information – Qube Statutory Results
Key Financial Information Qube Statutory Results FY 20 • Statutory earnings include the following key FY 20 FY 19 FY 19 Change (%) (ex AASB 16) Change (%) items which have been excluded from underlying ($m) ($m) ($m) earnings: ($m) o Net fair value gains of $45.1 million (pre-tax) Revenue 1,902.0 1,
Slide 20: Key Financial Information – Qube Underlying Results
Key Financial Information Qube Underlying Results FY 20 FY 19 Change (%) ($m) ($m) Revenue 1,883.6 1,728.6 9.0% EBITDA 290.9 289.3 0.6% EBITA 160.3 180.5 (11.2%) EBIT 148.2 169.3 (12.5%) Net Finance Costs (17.4) (12.9) (34.9%) Share of Profit of Associates 11.7 12.8 (8.6%) Non- Controlling Interest
Slide 21: Key Financial Information – Capital Expenditure
Key Financial Information Capital Expenditure FY 20 capex overview 350 • Total net capex of around $515.9 million in the period. Key items include: $1.1m o Several acquisitions including Chalmers ($55.4 million of which $43.0 million was funded by 300 Qube scrip), NFA ($26.1 million) in New Zealand
Slide 22: Key Financial Information – Balance sheet & Funding
Key Financial Information Balance sheet & Funding Key metrics Debt facilities maturity profile at 30 June 2020 Weighted average 1,400 maturity of 3.6 years at 120 Net assets Cash and 1,200 30 June 2020 Net Debt Leverage 1,000 attributable to Undrawn Debt 835 $1,193.3 ratio*** 800 Qube Facilities** $
Slide 23: Change in Net Borrowings for Twelve Months to 30 June 2020
Key Financial Information Cashflow Change in Net Borrowings for Twelve Months to 30 June 2020 1,800 1,600 88.9 57.1 52.9 1,400 1,338.5 (489.3) • Business Sub Note 472.9 1,193.3 continued to 1,200 (314.1) 8.4 305.0 generate Sub Note 1,000 (22.0) strong $ million 305.0 800 Senior Debt operating (net o
Slide 24: FY Outlook
FY 21 Outlook • At present, there is very limited visibility regarding near-term volumes in Qube’s key markets. Qube presently expects that the generally weaker conditions it experienced in the second half FY 20 will continue in FY 21 until the impact of COVID-19 subsides. As a result, Qube expects
Slide 25: Additional Financial Information (Appendices)
Additional Financial Information (Appendices)
Slide 26: Reconciliation of FY20 Statutory Results to Underlying Results
Appendix 1 Reconciliation of FY 20 Statutory Results to Underlying Results Operating Infrastructure & Corporate and Patrick Consolidated Year Ended 30 June 2020 Division Property Other ($m) ($m) ($m) ($m) ($m) Statutory net profit / (loss) before income tax 178.8 15.1 (77.5) 14.1 130.5 Share of (pro
Slide 27: Reconciliation of FY19 Statutory Results to Underlying Results
Appendix 2 Reconciliation of FY 19 Statutory Results to Underlying Results Operating Infrastructure & Corporate and Patrick Consolidated Year Ended 30 June 2019 Division Property Other ($m) ($m) ($m) ($m) ($m) Statutory net profit / (loss) before income tax 187.4 139.9 (78.9) 35.6 284.0 Share of (pr
Slide 28: Segment Breakdown
Appendix 3 Segment Breakdown Operating Infrastructure ($m) Corporate FY 20 FY 19 Change Division & Property Statutory Revenue 1,783.5 117.2 1.3 1,902.0 1,838.9 3.4% EBITDA 395.4 54.6 (20.5) 429.5 425.7 0.9% EBITA 204.2 32.6 (22.1) 214.7 316.9 (32.2%) EBIT 195.8 28.9 (22.1) 202.6 305.7 (33.7%) Underl
Slide 29: Operating Division – Underlying Results
Appendix 4 Operating Division – Underlying Results FY 20 FY 19 Change (%) ($m) ($m) Revenue 1,785.4 1,624.6 9.9% EBITDA 285.4 263.3 8.4% Depreciation (121.7) (102.7) (18.5%) EBITA 163.7 160.6 1.9% Amortisation (8.4) (7.5) (12.0%) EBIT 155.3 153.1 1.4% Share of Profit of Associates 1.4 0.8 75.0% EBIT
Slide 30: Infrastructure & Property Division – Underlying Results
Appendix 5 Infrastructure & Property Division – Underlying Results FY 20 FY 19 Change (%) ($m) ($m) Revenue 98.0 103.8 (5.6%) EBITDA 28.9 45.1 (35.9%) Depreciation (8.7) (5.9) (47.5%) EBITA 20.2 39.2 (48.5%) Note: Three month contribution (from revenue Amortisation (3.7) (3.7) - to EBIT) from Quattr
Slide 31: Patrick – Underlying Results
Appendix 6 Patrick – Underlying Results FY 20 FY 19 Change (%) ($m) ($m) 100% Revenue 624.8 624.3 0.1% EBITDA 189.1 210.1 (10.0%) Depreciation (65.0) (67.0) 3.0% EBITA 124.1 143.1 (13.3%) Amortisation (24.3) (23.2) (4.7%) EBIT 99.8 119.9 (16.8%) Interest Expense (Net) - External (25.4) (34.2) 25.7%
Slide 32: Other Associates – Underlying Results
Appendix 7 Other Associates – Underlying Results FY 20 FY 19 Qube Share of Profit of Associates Change (%) ($m) ($m) IMG 1.9 0.6 216.7% NSS 1.6 1.9 (15.8%) Prixcar (2.1) (1.7) N/A Total – Operating Division 1.4 0.8 75.0% Quattro* (0.4) (1.3) 69.2% *Note: Nine month contribution from Quattro TQ Holdi
Slide 33: Corporate – Underlying Results
Appendix 8 Corporate – Underlying Results FY 20 FY 19 Change (%) ($m) ($m) Revenue 0.2 0.2 - EBITDA (23.4) (19.1) (22.5%) Depreciation (0.2) (0.2) - EBITA (23.6) (19.3) (22.3%) Amortisation - - - EBIT (23.6) (19.3) (22.3%) The underlying information excludes certain non-cash and non-recurring items
Slide 34: Impact of new lease accounting standard (AASB 16)
Appendix 9 Impact of new lease accounting standard (AASB 16) Balance sheet impact at 30 June 2020 FY 20 P&L impact 7,000 200 5,950.1 180 32.7 6,000 5,336.5 160 5,000 (101.8) 140 $ million 4,000 84.2 113.5 3,414.6 3,308.9 120 (9.3) 104.2 $ million 3,000 100 (4.5) 15.4 2,644.4 87.5 1,925.1 80 2,000 60
Slide 35: Explanation of Underlying Information
Appendix 10 Explanation of Underlying Information • Underlying revenues and expenses are statutory revenues and expenses adjusted to exclude certain non-cash and non-recurring items such as fair value adjustments on investment properties, impairments and the impact of AASB 16, in order to reflect co