Slide 1: Annual Shareholders Meeting 27 October 2005
Annual Shareholders Meeting 27 October 2005
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 • All subsidiaries have delivered profitable growth • Archive acquisition performed fully to expectation • Approximately 7,000 retail and institutional shareholders • 90% of shares held in New Zealand
Slide 5: Financial Highlights
Financial Highlights 2005 2004 variance $000 $000 % Operating revenue 233,725 214,498 9% EBITDA 54,996 45,618 21% EBITA 50,539 40,714 24% NPAT 21,991 16,137 36% NPATA 26,948 21,081 28% Earnings per share (NPAT) 17 cents 13 cents 30%
Slide 6: Dividends
Dividends Jun-05 Dec-04 Jun-04 Dec-03 Dividend declared $10.7m $9.45m $8.55m $7.25m Cents per share 8.50 7.50 6.90 5.85 Full year (cps) 16.00 12.75 Key points: • Increase of 26% compared to 2004 • Fully Imputed • Paid 30 September 2005
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: Freightways
Freightways
Slide 10: Express Package Industry
Express Package Industry Overview and Business Description
Slide 11: 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 12: Business Description - Strengths
Business Description - Strengths • Experienced people • Network of independent contractors • Operational excellence and profit culture • Dedicated express package linehaul network • Established multi-brand strategy
Slide 13: Multi-Brand Strategy – Captures growth
Multi-Brand Strategy Three major brands: Freightways’ Network Courier Brands Price – Differentiated by price and service – Captures growth Service across entire market
Slide 14: Information Management and Business Mail
Information Management and Business Mail Industry Overview and Business Description
Slide 15: Information Management
Information Management • Total information management solution • Records management growth opportunity • Integrated with Freightways express package operations
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: Strategy
Strategy • Investing for growth - people, infrastructure and IT • Continued development of growth opportunities in Freightways’ existing three markets • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 19: Trading Update
Trading Update
Slide 20: Operating Revenue
Operating Revenue 250 200 150 $M 2nd Half 100 1st Half 50 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Year Ended • 9% revenue growth compared to 2004 • 5-year compound average annual revenue growth of 7%
Slide 21: EBITA
EBITA 50 40 $M 30 2nd Half 20 1st Half 10 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Year Ended • 24% EBITA growth compared to 2004 • 5-year compound average annual EBITA growth of 19%
Slide 22: Current Financial Performance
Current Financial Performance Qtr ended 30 September 2005 2004 variance $000 $000 % Operating revenue 62,445 57,069 9% EBITDA 14,416 12,943 11% EBITA 13,236 11,849 12% NPAT 6,109 5,037 21% NB: S eptember YTD numbers are drawn from management accounts and are unaudited
Slide 23: Outlook
Outlook
Slide 24: Outlook
Outlook • A less buoyant economy is expected • Characteristics of competitive environment expected to remain unchanged • Consistent application of proven market strategies • Positive outlook for shareholders and all other stakeholders
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 27 October 2005
Annual Shareholders Meeting 27 October 2005