Freightways Group Limited · NZX:FRW
Freightways — Shareholder Meeting (October 2006)
28 slides from Freightways's shareholder meeting presentation, Oct 26, 2006
Slide 1: Annual Shareholders Meeting 26 October 2006
Annual Shareholders Meeting 26 October 2006
Slide 2: Wayne Boyd, Chairman
Wayne Boyd, Chairman
Slide 3: Agenda
Agenda Chairman’s introduction Managing Director’s review and trading update Resolutions
Slide 4: General Highlights
General Highlights • Subsidiaries have performed well in a challenging operating environment • Strategies have realised sound growth in both ‘Core’ Express Package and ‘Emerging’ Business Mail and Information Management businesses • Kiwi Express acquisition has performed fully to expectation • Post
Slide 5: Financial Highlights
Financial Highlights 2006 2005 increase $000 $000 % Operating revenue 256,689 233,725 10% EBITDA 58,318 54,996 6% EBITA 53,360 50,539 6% NPAT 24,306 21,991 11% NPATA 29,276 26,948 9% Earnings per share (NPAT) 19 cents 17 cents 11%
Slide 6: Dividends
Dividends Jun-06 Dec-05 Jun-05 Dec-04 Dividend declared $11.2m $10.9m $10.7m $9.5m Cents per share 8.75 8.50 8.50 7.50 Full year (cps) 17.25 16.00 Key points: • Increase of 8% compared to 2005 • Fully Imputed • Was paid 30 September 2006
Slide 7: Dean Bracewell, Managing Director Review and Trading Update
Dean Bracewell, Managing Director Review and Trading Update
Slide 8: Managing Director's Presentation
Managing Director’s Presentation Industry overview and business description Business strategy Trading update Outlook
Slide 9: Express Package Industry
Express Package Industry Overview and Business Description
Slide 10: 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 11: Multi-Brand Strategy
Multi-Brand Strategy Major brands: Freightways’ Courier Brands Price – Differentiated by price and service – Capture growth Service across entire market
Slide 12: Information Management and Business Mail
Information Management and Business Mail Industry Overview and Business Description
Slide 13: Information Management - NZ
Information Management - NZ • Total information management solution • An emerging growth opportunity • Integrated with Freightways express package operations
Slide 14: Information Management - Australia
Information Management - Australia Features of the DataBank acquisition • No.2 operator in data storage niche of Information Management market • Experienced and capable management team • Similar service-oriented operating culture to FRE • Earn-out purchase structure aligns vendors’ interests with th
Slide 15: Information Management – Australia (cont.)
Information Management – Australia (cont.) Features of the DataBank acquisition (continued) • Immediately EPS positive • Diversifies FRE earnings geographically and deeper into the Information Management market • Information management market is under-developed • Catalyst for further growth
Slide 16: Business Mail
Business Mail • Niche player in deregulated postal services industry • Growth opportunities in business mail segment • Integrated with Freightways express package operations
Slide 17: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 18: Business strategy
Business strategy • Enhancing capability within core business - people, infrastructure and IT • Continued development of growth opportunities in Freightways’ existing three markets • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities in New Zealan
Slide 19: Trading Update
Trading Update
Slide 20: Operating Revenue
Operating Revenue 300 250 200 $M 150 2nd Half 100 1st Half 50 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Year Ended • 10% revenue growth compared to 2005 • 5-year compound average annual revenue growth of 8%
Slide 21: EBITA
EBITA 60 50 40 2nd Half $M 30 20 1st Half 10 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Year Ended • 6% EBITA growth compared to 2005 • 5-year compound average annual EBITA growth of 17%
Slide 22: Current Financial Performance
Current Financial Performance Qtr ended 30 September 2006 2005 increase $000 $000 % Operating revenue 70,050 62,445 12% EBITDA 15,564 14,416 8% EBITA 13,973 13,236 6% NPAT 6,288 6,109 3% NB: S eptember YTD numbers are drawn from management accounts and are unaudited
Slide 23: Outlook
Freightways
Slide 24: Outlook
Outlook • Near-term performance will be influenced by NZ economic conditions • Investment in people, infrastructure and customer service initiatives (competitive advantage) will continue • Characteristics of competitive environment expected to remain unchanged • Consistent application of proven mark
Slide 25: Summary
Summary Strong successful business Positioned to deliver continuing earnings growth Delivering an attractive dividend yield
Slide 26: Questions
Questions
Slide 27: Resolutions
Resolutions Re-election of Directors Authority to fix Auditors remuneration
Slide 28: Annual Shareholders Meeting 26 October 2006
Annual Shareholders Meeting 26 October 2006
Freightways Group — Shareholder Meeting (October 2006) on 6ix