Slide 1: Freightways Full Year Presentation
Freightways Full Year Presentation 12 August 2013 Full Year Result | August 2013 1
Slide 2: Presentation relates to NZX announcement and media release
This presentation relates to the Freightways Limited NZX announcement and media release of 12 August 2013. 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 2013 Financial Highlights Operating Performance Business Strategy Outlook Full Year Result | August 2013 3
Slide 4: 2013 Financial Highlights
2013 Financial Highlights Full Year Result | August 2013 4
Slide 5: Financial Highlights
Financial Highlights Jun-13 Jun-12 Increase $M $M % Operating Revenue 406 382 6% EBITDA* 77 72 7% EBITA* 65 62 5% NPAT* 38 36 6% * Jun-13 excludes non-recurring income of $2.1m relating to acquisition earnout payments that are now not expected to be paid ($2.1m after tax) (Jun-12 excludes $1.5m of n
Slide 6: Operating Performance
Operating Performance Full Year Result | August 2013 6
Slide 7: Operating Revenue
Operating Revenue 450 400 350 300 250 $M 200 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Ende d 30 June 2nd Half 1st Half • 6% higher revenue compared to PCP • 10-year compound average annual revenue growth of 7.6% Full Year Result | August 2013 7
Slide 8: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 440 410 0.5% 2.1% 406 2.4% 1.2% $M 382 380 350 2012 Volume Pricing Net new business Acquisition 2013 Growth Drivers 1 Full Year Result | August 2013 8
Slide 9: EBITA
EBITA* 70 60 50 40 $M 30 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Ended 30 June 2nd Half • 5% higher EBITA compared to PCP 1st Half • 10-year compound average annual EBITA growth of 7.3% NB: This graph represents the operating profit before interest, ta
Slide 10: Business Segments Operating Performance
Business Segments Operating Performance (Year ended 30 June 2013) Revenue EBITA 25% 27% 75% 73% Express Package & Business Mail Information Management 1 Full Year Result | August 2013 10
Slide 11: Express Package & Business Mail
Express Package & Business Mail Jun-13 Jun-12 Increase $M $M % Operating Revenue 308 292 6% EBITDA* 55 53 3% EBITA* 49 48 1% EBITA Margin* 16% 17% * Jun-13 excludes a non-recurring income of $1m relating to an acquisition earnout payment that is now not expected to be paid 1 Full Year Result | Augus
Slide 12: Information Management
Information Management Jun-13 Jun-12 Increase $M $M % Operating Revenue 100 92 8% EBITDA* 23 21 13% EBITA* 19 16 13% EBITA Margin* 19% 18% * Jun-13 excludes a non-recurring income of $1.1m relating to an acquisition earnout payment that is now not expected to be paid 1 Full Year Result | August 2013
Slide 13: Balance Sheet – Key Points
Balance Sheet – Key Points Total Assets and Total Liabilities have decreased since FY12 by $4m and $18m, respectively, primarily as a result of the application of cash to the repayment of bank borrowings Net bank borrowings have decreased since FY12 by $13m No significant changes in issued cap
Slide 14: Cash Flow – Key Points
Cash Flow – Key Points Cash inflows from operating activities remain strong at $77m for the year Cash outflows from investing activities were $21m lower than the PCP as a consequence of less being spent on acquisitions this year Cash outflows from financing activities represent predominantly t
Slide 15: Subsequent Event – Final Dividend
Subsequent Event – Final Dividend Final dividend: 9.75 cps Imputation credits: 3.79 cps (at 28% tax rate) Supplementary dividend: 1.7206 cps Record date: 13 September 2013 Payment date: 1 October 2013 No DRP offered in respect of the 2013 Final Dividend 1 Full Year Result | August 2013 1
Slide 16: Finance Facilities – Maturity Extended
Finance Facilities – Maturity Extended Multi-currency facilities: NZD110m & AUD70m Syndication: Existing 3 banks continue as lenders Extended: 2 years for all existing facilities Effective date: 26 July 2013 Maturity profile: Spread evenly across 3, 4 and 5 year tranches Pricing: Unchang
Slide 17: Strategy
Strategy Full Year Result | August 2013 17
Slide 18: 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 2013 18
Slide 19: Express Package & Business Mail
Express Package & Business Mail Network Courier Point-to-Point Business Mail Support 1 Full Year Result | August 2013 19
Slide 20: Information Management
Information Management New Zealand Australia Document Storage Data Storage Document Destruction Full Year Result | August 2013 20
Slide 21: Capital Expenditure
Capital Expenditure 2013 2014 Actual Forecast $M $M Capital Expenditure 13 14 Depreciation 12 13 Full Year Result | August 2013 21
Slide 22: A decade of achievement
A decade of achievement “A strong successful business….positioned to deliver continuing earnings growth….offering an attractive dividend yield.” (FRE Investment Statement & Prospectus - September 2003) Full Year Result | August 2013 22
Slide 23: A decade of achievement
A decade of achievement 10th year since listing on the NZX in September 2003 A strong successful business… - development and retention of people (3,000 across NZ & Aust) - successful acquisition and start-up of new businesses - progressive introduction of new services alongside market demand - c
Slide 24: A decade of achievement (cont.)
A decade of achievement (cont.) …positioned to deliver continuing earnings growth … - Revenue growth since 2003 of 107% - Operating earnings growth since 2003 of 102% - NPAT growth since first published result in 2004 of 137% * FRE is better positioned today than it was in 2003 to deliver continui
Slide 25: A decade of achievement (cont.)
A decade of achievement (cont.) • …offering an attractive dividend yield - Gross dividends since listing in 2003: 241 cents per share - Total Shareholder Return (dividends plus share price appreciation) September 2003 to July 2013: 387% * Positive cash generating ability of the Company is such that
Slide 26: Outlook
Outlook Full Year Result | August 2013 26
Slide 27: Outlook
Outlook Overall positive, but slow growth environment expected to continue for the foreseeable future. 2014 year-on-year improvement expected to be similar to 2013 Express Package volumes expected to increase incrementally with a weighting towards business-to-consumer (B2C) growth Our smaller
Slide 28: Conclusion
Conclusion Full Year Result | August 2013 28
Slide 29: Conclusion
Conclusion FRE has delivered another record result This result again demonstrates the resilience of FRE, the positive features of the markets it operates in and the successful execution of it growth strategies by an experienced and capable team Subject to business factors beyond its control, F
Slide 30: Freightways Full Year Presentation
Freightways Full Year Presentation 12 August 2013 Full Year Result | August 2013 30