Qube Holdings Ltd. · ASX:QUB
Qube — Investor Day (October 2022)
124 slides from Qube's investor day presentation, Oct 27, 2022
Slide 1: Qube Investor Day Presentation and FY23 Trading Update and Outlook
27 October 2022 ASX Announcement Qube Investor Day Presentation Please find attached the presentation to be delivered today at Qube’s Investor Day. FY23 Trading Update and Outlook Qube has experienced a strong start to FY23, with continued high volumes and margin improvement across most parts of its
Slide 2: Qube Investor Day 27th October 2022
QUBE INVESTOR DAY 27TH OCTOBER 2022 Qube Newcastle Agri Terminal
Slide 3: Acknowledgement of Traditional Custodians
In the spirit of reconciliation, Qube acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Island Peoples here today.
Slide 4: Disclaimers
Disclaimers 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 provided to the recip
Slide 5: Executive Team Presenting Today
Executive Team Presenting Today PAUL DIGNEY MARK WRATTEN PAUL LEWIS Managing Director Chief Financial Officer Group Investor Relations JOHN DIGNEY MICHAEL SOUSA TODD EMMERT Director Director Director Logistics & Infrastructure Ports Bulk 4
Slide 6: Qube Team Present Today
Qube Team Present Today SHANE COLLINS EMILY LINK BELINDA FLYNN Director Director General Manager Strategy & Development People, Culture & Safety Safety, Health & Sustainability WILLIAM HARA BEN PRATT Company Secretary & Director General Counsel Corporate Affairs 5
Slide 7: Agenda
Agenda 9:20am WELCOME Paul Lewis Investor Relations 9:30am Session 1 – Introduction to Qube Paul Digney Managing Director 10:15am Session 2 - Qube Logistics & Infrastructure (incl. Q&A) John Digney Director – Logistics & Infrastructure 11:00am Session 3 - Qube Ports & Bulk Introduction Paul Digney M
Slide 8: Session 1 – Introduction to Qube
Session 1 – Introduction to Qube Qube North Dynon Steel Terminal, Melbourne
Slide 9: Qube’s Vision & Strategy
Qube’s Vision & Strategy Qube Port Hedland (Rotabox)
Slide 10: Qube’s Vision & Strategy
Qube’s Vision & Strategy FOCUSSED STRATEGY THAT DELIVERS A SUSTAINABLE COMPETITIVE ADVANTAGE To be the leading provider of integrated logistics solutions focussed on import, export and select domestic supply chains in Australia, New Zealand and select international locations. OPERATIONAL FOCUS FINAN
Slide 11: Qube’s History & Evolution
Qube’s History & Evolution Qube Victoria Dock
Slide 12: The History & Evolution of Qube (2007-2011) – Pre-Qube Brand
The History & Evolution of Qube (2007-2011) – Pre-Qube Brand A DELIBERATE STRATEGY TO SECURE STRATEGIC LOCATIONS AND EXPAND MANAGEMENT, SERVICE, PRODUCT AND GEOGRAPHIC CAPABILITIES ACQUISITION BY CALENDAR YEAR 2007 2008 2009 2010 2 0 11 SEA CARGO • *Consortium acquired: LOGISTICS • 50% in P&O Trans
Slide 13: The History & Evolution of Qube (2012-2016) – Qube Brand Development
The History & Evolution of Qube (2012-2016) – Qube Brand Development A DELIBERATE STRATEGY TO SECURE STRATEGIC LOCATIONS AND EXPAND MANAGEMENT, SERVICE, PRODUCT AND GEOGRAPHIC CAPABILITIES ACQUISITION BY CALENDAR YEAR 2012 2013 2014 2015 2016 • Acquired Giacci bulk haulage • P&O Automotive and Gener
Slide 14: The History & Evolution of Qube (2017-2022) – Qube Expansion
The History & Evolution of Qube (2017-2022) – Qube Expansion A DELIBERATE STRATEGY TO SECURE STRATEGIC LOCATIONS AND EXPAND MANAGEMENT, SERVICE, PRODUCT AND GEOGRAPHIC CAPABILITIES ACQUISITION BY CALENDAR YEAR 2017 2018 2019 2020 2021 2022 • Acquired WWL & PHL • Acquired Les Walkden • Acquired Bluew
Slide 15: Brands in Qube Today
Brands in Qube Today QUBE OPERATES A RANGE OF DIVERSIFIED BRANDS SERVICING A BROAD MARKET Operating Division Joint Ventures Qube Logistics & Infrastructure Qube Ports & Bulk 50% LOGISTICS RAIL AGRI PORTS ENERGY FORESTRY 54% SPECIALISED GOVERNMENT 50% GLOBAL CONTAINERS LOGISTICS SERVICES BULK HEAVY L
Slide 16: Organisational Structure
Organisational Structure BROAD SCOPE INTEGRATED LOGISTICS SOLUTIONS Operating Division Patrick (50%) Qube Logistics & Infrastructure Qube Ports & Bulk Patrick Terminals • Offers integrated solutions suite covering multiple • Provides broad range of logistics services for the • Qube owns a 50% intere
Slide 17: Video: This is Qube
Video: This is Qube INTEGRATED LOGISTICS SERVICES ACROSS AUSTRALIA, NEW ZEALAND AND SOUTHEAST ASIA 16
Slide 18: Qube’s Workforce and Geographic Footprint
Qube’s Workforce and Geographic Footprint STRATEGY IS UNDERPINNED BY A LARGE, DEDICATED WORKFORCE AND AN UNRIVALLED GEOGRAPHIC REACH MORE THAN 160 L O C AT I O N S OVER 9,500 EMPLOYEES APPROX. 2,400 CUSTOMERS of which 1,650 are contracted All figures include Patrick Terminals, but not other JV’s 17
Slide 19: Qube’s Key Infrastructure
Qube’s Key Infrastructure STRATEGY IS UNDERPINNED BY STRATEGIC LOCATIONS AND INFRASTRUCTURE PORT O P E R AT I O N S * 70 WAREHOUSE >60 Ha T O TA L T O N N E S T O TA L O P E R AT I O N A L THROUGHPUT* AREA* 270M 1,038 Ha TONNES EXPORT TERMINAL GRAIN THROUGHPUT RAIL 2.6M TONNES TERMINALS* PRIOR YEAR
Slide 20: Qube’s Key Assets
Qube’s Key Assets STRATEGY IS UNDERPINNED BY QUALITY & QUANTITY OF EQUIPMENT & SYSTEMS 866 C O N TA I N E R S 8 , 0 0 0 STRADDLES LOCOMOTIVES 81 LIFTING 134 WAGONS 1 ,6 8 7 EQUIPMENT 902 OTHER FLEET 129 PRIME MOVERS 1,336 537 MOBILE CRANES & TRAILERS 4,543 PORT CRANES YELLOW FLEET * Including Patric
Slide 21: Qube 2022+
Qube 2022+ STRONG PORTFOLIO OF INFRASTRUCTURE, ASSETS AND STRATEGIC LOCATIONS • The business has built a very strong foundation since inception • There remains a large number of options to grow • The next 5-years is set up to be the most exciting in Qube’s evolution 20
Slide 22: Key Markets & Growth Drivers
Key Markets & Growth Drivers AAT Terminal – Fisherman Island, Brisbane
Slide 23: Key Markets and Integrated Services Offered
Key Markets and Integrated Services Offered DIVERSIFIED ACROSS MARKETS, PRODUCTS, CUSTOMERS AND GEOGRAPHIES KEY MARKETS KEY PRODUCTS MAIN ACTIVITIES GROWTH DRIVERS Containers • Existing - base Import / export • Customer volume Agriculture • Product demand • Existing - market share Automotive & gener
Slide 24: Key Markets and Integrated Services Offered – Containers
Key Markets and Integrated Services Offered DRIVING CONTAINER-BASED LOGISTICS FOR A BROAD RANGE OF PRODUCTS KEY MARKETS KEY PRODUCTS MAIN ACTIVITIES GROWTH DRIVERS / MARKET DYNAMICS • Consumer goods – retail GROWTH DRIVERS • Grocery products • Road transport • Existing - base • Rail transport • Exis
Slide 25: Key Markets and Integrated Services Offered – Agriculture and Automotive
Key Markets and Integrated Services Offered MARKET LED LOGISTICS SOLUTIONS FOR AGRICULTURE AND AUTOMOTIVE IMPORT MARKETS KEY MARKETS KEY PRODUCTS MAIN ACTIVITIES GROWTH DRIVERS / MARKET DYNAMICS GROWTH DRIVERS • Existing - base • Grain • Storage • Existing - market share • Canola • Handling • New pr
Slide 26: Key Markets and Integrated Services Offered – Forestry
Key Markets and Integrated Services Offered MULTIPLE OPPORTUNITIES TO EXPAND ACROSS SUPPLY CHAINS KEY MARKETS KEY PRODUCTS MAIN ACTIVITIES GROWTH DRIVERS / MARKET DYNAMICS • Woodchip harvesting GROWTH DRIVERS • Existing - base • Woodchip exports • Existing - market share • Export logs (NZ) • New pro
Slide 27: Key Markets and Integrated Services Offered – Energy and Resources
Key Markets and Integrated Services Offered CONTINUED OPPORTUNITY TO EXPAND ENERGY AND RESOURCE RELATED OPERATIONS KEY MARKETS KEY PRODUCTS MAIN ACTIVITIES GROWTH DRIVERS / MARKET DYNAMICS GROWTH DRIVERS • Existing - base • Supply base management • Existing - market share • Gas • New products / serv
Slide 28: Qube Growth Drivers
Qube Growth Drivers COMBINING MULTIPLE VOLUME DRIVERS WITH DIVERSIFIED VALUE DRIVERS = MULTIPLE VOLUME DIVERSIFIED VALUE SUSTAINABLE DRIVERS DRIVERS LONG-TERM GROWTH EXISTING - BASE EXISTING – MULTI PURPOSE MARKET SHARE INFRASTRUCTURE GDP GROWTH Port facilities, logistics hubs Grow with etc . the ec
Slide 29: Qube Integrated Supply Chain
Qube Integrated Supply Chain LARGE DIVERSE CUSTOMER BASE Qube delivers integrated container logistics solutions (import/export) for many customers across a number of markets § Video: The Container Journey REGIONAL REGIONAL RAIL – PATRICK RAIL SHUTTLE CONTAINER EMPTY CONTAINER REGIONAL CONTAINER PATR
Slide 30: Qube Integrated Supply Chain
Qube Integrated Supply Chain ONE CUSTOMER ACROSS QUBE BUSINESS UNITS Qube delivers an integrated logistics solution for a customer involving all Qube’s business units § Video: The Qube Offering QUBE QUBE QUBE QUBE QUBE QUBE HEAVY AAT PORTS RENEWABLES HEAVY LIFT LOGISTICS RENEWABLES LIFT 29
Slide 31: Why Qube?
Why Qube? Qube North Dynon Steel Terminal, Melbourne
Slide 32: Why Qube? A Plan to Thrive
Why Qube? A PLAN TO THRIVE VISION To be the leading provider of integrated logistics solutions focussed on import, export and select domestic supply OUR AMBITION chains in Australia, New Zealand and select international locations. STRATEGY Be number one at what we do with a clear operational and fin
Slide 33: Why Choose Qube?
Why Choose Qube? KEY STRENGTHS THAT HAVE ESTABLISHED QUBE AS A MARKET LEADER SUPPLY CHAIN CUSTOMISED CUSTOMISED CYBER SECURITY GOVERNANCE GROUP MANAGEMENT CONNECTED CONNECTED MODAL OPERATING INNOVATION SYSTEMS EXPERTISE SYSTEMS SOFTWARE SOFTWARE SHIFT SYSTEMS DRIVEN ENVIRONMENTAL EQUIPMENT FINANCIAL
Slide 34: Session 2 – Qube Logistics & Infrastructure
Session 2 – Qube Logistics & Infrastructure John Digney – Director QL001 and QL012 hauling grain wagons at Bredalbane NSW (photo courtesy of Peter Clark, Rail Digest)
Slide 35: Qube Logistics & Infrastructure Overview
Qube Logistics & Infrastructure Overview LEADING INTEGRATED LOGISTICS SERVICES RAIL TONNES PORT SHUTTLE SYDNEY OVER OVER HAULED FY22 VOLUME FY22 2,550 5,219,228 400,000 TEU 1,250 EMPLOYEES CUSTOMERS 43 L O C AT I O N S WAREHOUSING FOOTPRINT CY22 60 Ha C O N TA I N E R T H R O U G H P U T AV E R A G
Slide 36: Suite of Customer Services
Suite of Customer Services MARKET LEADING RANGE OF LOGISTICS SERVICES BAGGING GLOBAL CONTAINER CONTAINER AGRI STORAGE PALLETISED AQIS SERVICES PROCUREMENT FORWARDING TRANSPORT & HANDLING TRANSPORT SERVICES MANAGEMENT INTERMODAL EMPTY CONTAINER AGRI DOMESTIC CONTAINER RAIL PORT ASSETS BULK RAIL WAREH
Slide 37: Why Choose Qube?
Why Choose Qube? KEY STRENGTHS THAT HAVE ESTABLISHED QUBE AS A MARKET LEADER SUPPLY CHAIN CUSTOMISED CUSTOMISED CYBER SECURITY GOVERNANCE GROUP MANAGEMENT CONNECTED CONNECTED MODAL OPERATING INNOVATION SYSTEMS EXPERTISE SYSTEMS SOFTWARE SOFTWARE SHIFT SYSTEMS DRIVEN ENVIRONMENTAL EQUIPMENT FINANCIAL
Slide 38: Case Study: Port Strategic Assets
Case Study: Port Strategic Assets 2012 AAT (25%) OPTIMISING OUR LOCATIONS PRIXCAR Port Logistics: Fisherman Island • Securing long-term position over QUBE LOGISTICS strategic logistics assets ensures facilities can support strategic QUBE LOGISTICS investments • Co-locating Qube’s business units at a
Slide 39: Growing Rail Services
Growing Rail Services EXPANDING RAIL CAPABILITY Qube secured one of the largest logistics contracts in Australia with BlueScope and rail management services for Glencore in far north Queensland. § Video: Integrated rail services 38
Slide 40: Showcasing the Paddock to Port Supply Chain
Showcasing the Paddock to Port Supply Chain AN UNPRECEDENTED AGRI EXPORT SERVICE OFFERING Qube Agri provides an unprecedented export supply chain that has enabled exporters / traders to ship greater tonnes. § Video: Supply Chain Qube Agri REGIONAL RAIL HAULAGE EXPORT EXPORT STORAGE & BULK TERMINAL G
Slide 41: Current Growth Pipeline - Logistics
Current Growth Pipeline - Logistics SHORT TO MEDIUM TERM OUTLOOK Low Medium High Low Medium High Low Medium High IMPORT EXPORT EXPORT Growth Growth Growth Growth Growth Growth Growth Growth Growth Food Products Meat Dairy Copper Paper/Packaging Solar Panels Equipment/ Metals Rice Machinery Mineral S
Slide 42: Session 2 – Q & A
Session 2 – Q & A AAT Terminal – Fisherman Island, Brisbane
Slide 43: Session 3 – Qube Ports & Bulk Introduction
Session 3 – Qube Ports & Bulk Introduction Paul Digney – Managing Director Qube Energy warehouses, Darwin
Slide 44: Qube Ports & Bulk Locations
Qube Ports & Bulk Locations STRATEGY IS UNDERPINNED BY A LARGE, DEDICATED WORKFORCE AND AN UNRIVALLED GEOGRAPHIC REACH AROUND 120 L O C AT I O N S OVER 4,300 EMPLOYEES OVER 900 CUSTOMERS 43
Slide 45: Qube Ports & Bulk Overview
Qube Ports & Bulk Overview LEADING INTEGRATED LOGISTICS SERVICES BULK STORAGE >25 Ha TONNES HANDLED PRIME TRAILERS 1 3 6 M PA 760 MOVERS 2,639 10 97 MOBILE CRANES R E A C H S TA C K E R S 268 C O N TA I N E R S FORKLIFTS 3,229 317 220 SMALL YELLOW FLEET BIG YELLOW FLEET 44
Slide 46: Ports & Bulk Key Services Provided to Customers
Ports & Bulk Key Services Provided to Customers MARKET LEADING RANGE OF LOGISTICS SERVICES AUTOMOTIVE CONTAINER VESSEL LOGISTICS HANDLING & CONTAINER DE-BAGGING MARSHALLING HARVESTING HIRE & SALES PROCUREMENT STEVEDORING AGENCY SERVICES STORAGE OFFSHORE PROJECT ON SHORE – STORE TERMINAL EXPORT WAREH
Slide 47: Session 4 – Qube Ports
Session 4 – Qube Ports Michael Sousa – Director Qube operations, Port of Portland
Slide 48: Suite of Customer Services
Suite of Customer Services MARKET LEADING RANGE OF LOGISTICS SERVICES AUTOMOTIVE LOGISTICS VESSEL BREAK BULK CONTAINER ROAD VESSEL SERVICES AGENCY SERVICES STEVEDORING HANDLING TRANSPORT CHARTERING FREIGHT INFIELD SUPPLY BASE GOODS ON SHORE – RIG & OFFSHORE STORAGE INFIELD BULK LIQUIDS MANAGEMENT CH
Slide 49: Why Choose Qube?
Why Choose Qube? KEY STRENGTHS THAT HAVE ESTABLISHED QUBE AS A MARKET LEADER SUPPLY CHAIN CUSTOMISED CUSTOMISED CYBER SECURITY GOVERNANCE GROUP MANAGEMENT CONNECTED CONNECTED MODAL OPERATING INNOVATION SYSTEMS EXPERTISE SYSTEMS SOFTWARE SOFTWARE SHIFT SYSTEMS DRIVEN ENVIRONMENTAL EQUIPMENT FINANCIAL
Slide 50: Case Study: Qube Energy
Case Study: Qube Energy A BROAD RANGE OF SERVICES TO ASSIST OUR CUSTOMERS WITH THE ENERGY TRANSITION The growth of Qube Energy supply chain from acquiring CFS (Melbourne only) in 2010 to the national footprint in place today BOMC Darwin Port Moresby Prelude Broome Dampier Onslow Gladstone Miles Chin
Slide 51: Case Study: Qube Energy
Case Study: Qube Energy THE LEADING SERVICE PROVIDER IN THE OIL & GAS SECTOR 2012 2022 75,550 16,250 22,350 1,167,464 37,597 1,856,950 WORKED CONTAINERS WORKED CONTAINERS KM TRAVELLED Man Hours Containers Handled KM Travelled KM TRAVELLED HOURS HANDLED HOURS HANDLED 1,167,464 37,597 1,856,950 0 37,2
Slide 52: Supporting Energy Supply Chains
Supporting Energy Supply Chains PROVIDING INTEGRATED LOGISTICS SERVICES • Overview of Qube Energy operations across Chevron and Shell ROAD TRANSPORT ON SHORE – RIG & INFIELD INSPECT, QA, QUARANTINE & VENDOR TRANSPORT – ARRIVE AT RECEIPT STORE COLLECTION ROAD & AIR WAREHOUSE GOODS GOODS PACK GOODS DE
Slide 53: Integrated Supply Chains for Forestry
Integrated Supply Chains for Forestry FROM STEVEDORE TO INTEGRATED SERVICE PROVIDER FOR THE FORESTRY SECTOR • Video Overview: Qube operations in the Green Triangle Victoria and operations in ISO Limited, New Zealand (plantation forests) PROCESSING MILL DOMESTIC PRODUCTS DISTRIBUTION LOGGING HARVESTI
Slide 54: Current Growth Pipeline - Ports
Current Growth Pipeline - Ports SHORT TO MEDIUM TERM OUTLOOK Low Medium High Low Medium High Low Medium High EXPORTS IMPORTS OTHER Growth Growth Growth Growth Growth Growth Growth Growth Growth Domestic Timber Grain Machinery (Aus) Woodchip Steel Products Hydrogen/ Fertiliser Ammonia General/ Gas /
Slide 55: Session 4 – Q&A
Session 4 – Q&A Qube Energy warehouse, Karratha, WA
Slide 56: Morning Tea (15 minutes)
Morning Tea (15 minutes) AAT Appleton Dock, Melbourne
Slide 57: Session 5 – Qube Bulk
Session 5 – Qube Bulk Todd Emmert – Director Qube Picton storage sheds and operations, WA
Slide 58: Suite of Customer Services
Suite of Customer Services BROAD RANGE OF LOGISTICS SERVICES FUEL TRANSPORT ON ROAD OFF ROAD TERMINAL SERVICES GENERAL CARGO TRANSPORT DE-BAGGING TRANSPORT BULK RAIL SERVICES PROJECT CARGO ROTA BOX WAREHOUSING REVERSE LOGISTICS EXPORTS STOCKPILE PROCUREMENT CONTAINER BULK CONTAINER DANGEROUS GOODS M
Slide 59: Why Choose Qube?
Why Choose Qube? KEY STRENGTHS THAT HAVE ESTABLISHED QUBE AS A MARKET LEADER SUPPLY CHAIN CUSTOMISED CUSTOMISED CYBER SECURITY GOVERNANCE GROUP MANAGEMENT CONNECTED CONNECTED MODAL OPERATING INNOVATION SYSTEMS EXPERTISE SYSTEMS SOFTWARE SOFTWARE SHIFT SYSTEMS DRIVEN ENVIRONMENTAL EQUIPMENT FINANCIAL
Slide 60: The Lithium Supply Chain
The Lithium Supply Chain PROVIDING SUPPLY CHAINS FOR PRODUCTS ESSENTIAL TO THE ENERGY TRANSITION Qube Bulk has developed a compelling lithium supply chain that services all our customer requirements § Video: Lithium Supply Chain BULK ROAD DISCHARGE LOAD OUT BULK ROAD DISCHARGE AT ROAD HAULAGE BULK R
Slide 61: Multi-Modal Supply Chains
Multi-Modal Supply Chains INTEGRATED SERVICES FOR MAJOR RESOURCE COMPANIES Qube Bulk has developed a compelling multi-modal integrated supply chain in the Goldfields (Western Australia) that delivers for our customers. § Video Supply Chain: Goldfields TRANSPORT ROAD INTERMODAL RAIL SERVICES TO CUSTO
Slide 62: Current Growth Pipeline - Bulk
Current Growth Pipeline - Bulk SHORT TO MEDIUM TERM OUTLOOK Low Mid High Low Mid High EXPORTS IMPORTS Growth Growth Growth Growth Growth Growth Lithium Fertiliser Mineral Sands Chemicals Copper Cement Nickel Woodchip Lime This slide provides a snapshot of the current growth outlook for Bulk by produ
Slide 63: Session 5: Q&A
Session 5: Q&A Qube Kalgoorlie Rail Terminal, Western Australia
Slide 64: Session 6 - Patrick Terminals
Session 6 - Patrick Terminals Paul Digney – Qube Managing Director Patrick Terminals – Sydney AutoStrad – Port Botany
Slide 65: Patrick Terminals – Key Attributes
Patrick Terminals KEY ATTRIBUTES One of only two national container terminal operators in Australia Market Leader Market share of more than 40% with presence in all four major container ports in Australia Superior sites with rail capability at major ports to enhance capacity and productivity Quaysid
Slide 66: Patrick Terminals – Australia’s Leading Container Terminal Operator
Patrick Terminals AUSTRALIA’S LEADING CONTAINER TERMINAL OPERATOR – FOUR MAJOR PORTS 1,399 VESSELS HANDLED LAST 12 MONTHS 3.3 MIL TEU HANDLED PER ANNUM 3.9 KM Brisbane – Fisherman Island QUAY LINE Perth / Fremantle Sydney – Port Botany 134 AUTOSTRADS / MANUAL STRADS Melbourne – East Swanson Dock Con
Slide 67: Sydney AutoStrad Terminal
Sydney AutoStrad Terminal HOME TO AUSTRALIA’S LARGEST SHIP-TO-SHORE QUAY CRANES 420 VESSELS HANDLED PER ANNUM 1.6M TEU 1.16M TEU CAPACITY VOLUME HANDLED AUTORAIL LIVE PER ANNUM IN 2021 1,400M 4 QUAY LINE BERTHS BERTH 6 BERTH 7 BERTH 8 BERTH 9 9 59 QUAY CRANES AUTOSTRADS 4 x Liebherr 5 x ZPMC cranes
Slide 68: Melbourne Terminal
Melbourne Terminal PORT OF MELBOURNE’S BEST PERFORMING STEVEDORING TERMINAL 360 VESSELS HANDLED C K R A IL IN 2021 ON-DO 1.4M TEU 1.017M TEU CAPACITY VOLUME HANDLED PER ANNUM IN 2021 885M 3 QUAY LINE BERTHS BERTH 1 BERTH 2 BERTH 3 7 40 QUAY CRANES STRADDLES 7 x ZPMC cranes 2 x 17 wide cranes 3 x 18
Slide 69: Brisbane AutoStrad Terminal
Brisbane AutoStrad Terminal AUSTRALIA’S FIRST AUTOMATED TERMINAL 425 VESSELS HANDLED IN 2021 1.16M TEU 732K TEU CAPACITY PER VOLUME HANDLED ANNUM IN 2021 930M 3 QUAY LINE BERTHS BERTH 10 BERTH 9 BERTH 8 6 35 QUAY CRANES AUTOSTRADS 3 x ZPMC 2x 3 x ZPMC cranes Liebherr cranes Most productive cranes in
Slide 70: Fremantle Terminal
Fremantle Terminal LEADING MARKET SHARE IN THE PORT OF FREMANTLE 194 VESSELS HANDLED IN PAST 12 MONTHS 600K TEU 419K TEU CAPACITY PER HANDLED IN ANNUM PAST 12 MONTHS 646M 2 QUAY LINE BERTHS 4 BERTH 3 BERTH 4 QUAY CRANES 4 x ZPMC cranes 1 X 19 wide 3 X 18 wide 22 16 FORKLIFTS ITVS Lease end date: 203
Slide 71: Patrick Terminals Overview
Patrick Terminals Overview AUSTRALIA’S LEADING CONTAINER TERMINAL OPERATOR • Video: Overview Patrick 70
Slide 72: Patrick Terminals – Significant Investment to Maintain Competitive Advantage
Patrick Terminals SIGNIFICANT INVESTMENT TO MAINTAIN COMPETITIVE ADVANTAGE Quayside Quayside & Landside Landside New Quay Cranes Increasing Renewing and Growing Investment in Rail Automated Truck Handling (ATH) Handling Ability Straddle Fleet • Phase 1 of Port Botany Rail Terminal • ATH developed by
Slide 73: Patrick Terminals – Strong Earnings Growth
Patrick Terminals STRONG EARNINGS GROWTH EBITDA Performance • Business very resilient during COVID-19 pandemic 350 • Australian market container volumes back above pre- 300 COVID 19 levels at ~8.0m TEU per annum. Patrick working ~3.3m TEU per annum 250 200 • Patrick on target to deliver strong EBITD
Slide 74: Patrick Terminals – Performance Since Qube’s Initial Investment
Patrick Terminals STRONG OPERATIONAL & FINANCIAL PERFORMANCE ACROSS MOST KEY METRICS SINCE QUBE’S INITIAL INVESTMENT Key Metrics FY17 FY22 Change (Based on 100% rather than Qube’s 50% interest) (Acquisition year) Market Size (TEU millions) 6.7 8.0 Market Share (%) 46% 42% Patrick Volume (lifts milli
Slide 75: Patrick Terminals – Reduction in Key Risks
Patrick Terminals THERE HAS ALSO BEEN A SIGNIFICANT REDUCTION IN KEY RISKS SINCE QUBE’S INITIAL INVESTMENT FY17 Risk FY22 (Acquisition year) Excess terminal capacity in the market due to new stevedore commencing Market growth has utilized a portion of surplus capacity in the market. Further Terminal
Slide 76: Draft Productivity Commission Report
Draft Productivity Commission Report PATRICK IS COMMITTED TO DELIVERING ON-GOING PRODUCTIVITY ON THE WATERFRONT ON A COMMERCIALLY SUSTAINABLE BASIS Recommendation Comment IR issues relating to industrial action, bargaining practices and restrictive EAs should be addressed. In particular, provisions
Slide 77: Patrick Terminals – Delivering on Next 5 Year Objectives
Patrick Terminals PATRICK HAS DELIVERED ON ITS 5 YEAR PLAN AND IS ON TRACK TO DELIVER ON THE NEXT 5 YEAR OBJECTIVES • Continue to invest in both quayside and landside • Plant, property, equipment and systems • Maintaining market share of 41% - 43% • Delivery of key rail projects in Sydney and Melbou
Slide 78: Session 6 – Q&A
Session 6 – Q&A Patrick Terminals – Sydney AutoStrad – Port Botany
Slide 79: Lunch (30 minutes)
Lunch (30 minutes) Patrick Terminals – Melbourne
Slide 80: Session 7 – Financial Overview
Session 7 – Financial Overview Mark Wratten – CFO Narrabri Intermodal Terminal
Slide 81: Table of Contents
Table of Contents 1 Financial accountability and ownership 2 5-year financial performance – Revenue, EBITDA and ROACE 3 Dividend history and current policy 4 Debt and gearing – historical and target 5 Capex and depreciation profile 6 Growth drivers inc. M&A focus areas and return thresholds 7 Key fi
Slide 82: Financial Accountability and Ownership
Financial Accountability and Ownership QUBE HAS A ROBUST FINANCIAL GOVERNANCE FRAMEWORK IN PLACE Manager Org. Level Number Examples Financial Accountability and KPI / Drivers Level • Accountable for financial performance of business unit • Top-down direction, review and input on operating budgets (r
Slide 83: 5 Year Financial Performance
5 Year Financial Performance STRONG TRACK RECORD OF REVENUE AND EBITDA GROWTH Underlying Revenue - Operating Division Underlying EBITDA - Group Underlying EBITDA - including 50% Patrick (FY18-22 CAGR: +13.4%) (FY18-FY22 CAGR:+9.6%) (FY18-FY22 CAGR:+9.4%) 450 600 3,000 400 500 350 2,500 400 300 2,000
Slide 84: Investment Returns – Improving ROACE
Investment Returns – Improving ROACE QUBE DELIVERED A STEP UP IN ROACE IN FY22 Qube Group • FY18 – 21 returns dampened by the material and increasing investment in 9.0% 8.0% 6,000.0 Moorebank Logistics Park (MLP), with minimal associated earnings. Average Capital Employed ($m) 8.0% 5,000.0 7.0% 5.9%
Slide 85: Dividend History – Growing Dividends
Dividend History – Growing Dividends OBJECTIVE IS FOR ANNUAL ORDINARY DIVIDENDS TO INCREASE ALIGNED TO UNDERLYING ANNUAL EPSA GROWTH Ordinary Dividend & Underlying EPSA • Following completion of the Moorebank monetisation Qube now targets a full year ordinary dividend payout ratio of 50–60% of under
Slide 86: Net Debt and Gearing – Conservative Balance Sheet
Net Debt and Gearing – Conservative Balance Sheet QUBE CURRENTLY TARGETS A GEARING RATIO BETWEEN 30 - 40% • FY22 saw a significant reduction in net debt and gearing levels post the Net Debt1 & Gearing Ratio2 Moorebank monetisation in December 2021 as proceeds were predominantly used to pay down debt
Slide 87: Capex – Growth
Capex – Growth GROWTH CAPEX IS DISCRETIONARY – MUST MEET INVESTMENT CRITERIA Short to Medium Term Return Capex ($m) 350.0 • Growth and acquisition capex is discretionary given Qube can select not to make the investment if investment criteria are not met. 300.0 • Growth capex typically results in qui
Slide 88: Capex – Maintenance
Capex – Maintenance REPLACEMENT CAPEX SUMMARY • Maintenance capex has been increasing as a result of large growth and acquisition capex spend over past 3 years (~$750m). Replacement Capex ($m) • We recently provided guidance for FY23 maintenance capex to be between 85-95% 160.0 100% 88% of underlyin
Slide 89: Approach to Acquisitions
Approach to Acquisitions CLEAR, MEASURABLE RETURN HURDLES FOR POTENTIAL NEW INVESTMENTS WITH A FOCUS ON ROACE OF AT LEAST 10% • Qube has a strong track record of identifying and completing accretive acquisitions consistent with our strategy, financial hurdles and risk profile. • Typically, acquisiti
Slide 90: Qube Growth Drivers
Qube Growth Drivers COMBINING MULTIPLE VOLUME DRIVERS WITH DIVERSIFIED VALUE DRIVERS = MULTIPLE VOLUME DIVERSIFIED VALUE SUSTAINABLE DRIVERS DRIVERS LONG-TERM GROWTH EXISTING - BASE EXISTING – MULTI PURPOSE MARKET SHARE INFRASTRUCTURE GDP GROWTH Port facilities, logistics hubs Grow with etc . the ec
Slide 91: Key Financial Takeaways
Key Financial Takeaways QUBE IS FOCUSED ON SUSTAINABLE PROFITABLE GROWTH Qube has a sound balance sheet, significant available liquidity and delivers strong cashflow generation. We will continue to deploy growth and acquisition capital in a patient, disciplined and strategically focused manner. The
Slide 92: Session 7 – Q&A
Session 7 – Q&A Qube Harefield Intermodal Terminal
Slide 93: Session 8 – Outlook
Session 8 – Outlook Qube Coonamble Grain Terminal
Slide 94: What are Risks / Challenges FY23
What are Risks / Challenges FY23 QUBE IS WELL POSITIONED EXTREME SUPPLY CHAIN VOLUME COVID-19 INFLATION WEATHER LABOUR EXTREME DISRUPTION IMPACT EVENTS SUPPLY CHAIN COVID-19 INFLATION WEATHER DISRUPTION EVENTS Fuel, supplies, China related labour and other forestry volumes State lockdowns Inflationa
Slide 95: Q1 Update Financials
Q1 Update Financials STRONG START TO Q1 AHEAD OF INTERNAL EXPECTATIONS Qube has experienced a strong start to FY23, with continued high volumes and margin improvement across most parts of its business. Underlying revenue, earnings and margins were ahead of Qube’s internal expectations at the end of
Slide 96: FY23 Outlook
FY23 Outlook FY23 OUTLOOK REMAINS UNCHANGED Qube remains positive about the remainder of the period and confirms its FY23 full year guidance of underlying NPATA growth relative to FY22 and higher underlying EPSA growth (compared to NPATA growth) due to the full year benefit from the share buyback co
Slide 97: The Qube Difference
The Qube Difference EMPOWERING OUR PEOPLE TO THRIVE 96
Slide 98: Panel - Q & A
Panel - Q & A Qube Logistics Fremantle, Western Australia
Slide 99: Close
Close Qube Quattro Grain Terminal, New South Wales
Slide 100: Appendices
Appendices Qube Coonamble Grain Terminal, New South Wales
Slide 101: Safety Performance
Extracted from FY22 Results Presentation Safety Performance CONTINUE TO FOCUS ON EMPLOYEE SAFETY AND DELIVERING ZERO HARM S A F E T Y P E R F O R M A N C E & H E A LT H P E R F O R M A N C E Total Recordable Injury Frequency Rate (TRIFR)1 Lost Time Injury Frequency Rate Critical Incident Frequency R
Slide 102: A Plan to Thrive into the Future
A Plan to Thrive into the Future
Slide 103: Qube has come a long way in a short time
Qube has come a long way in a short time. In just 15 years we’ve grown substantially. From 30 sites in 2007, to 160+ today. What has driven this success is no secret. It’s something that’s in our DNA. A willingness to go above and beyond, and to seek solutions outside the box. We have built a well r
Slide 104: Looking ahead
VISION Be the best at what we do. Our ambition. Looking ahead. We’ve put a stake in the ground. STRATEGY Be the leading integrated logistics provider. One about what we want to be, Our focus. for import, export and domestic supply chains in Australasia and select international locations. what we val
Slide 105: Our vision. Be the best at what we do
Our vision. B e the best at what we do. Being the best, means being bold. ‘Something we don’t shy away from. We've achieved a lot already. We've been agile and ready, and adapted and grown. To go to the next level, we need to stay ahead of the game. By anticipating and innovating. By creating and se
Slide 106: Be the leading integrated logistics provider
orev Be the leading integrated logistics provider. For import, export and domestic supply chains in Australasia and select international locations. Our business is diverse and ever evolving. Keeping focused can be a challenge. We need a plan to follow and guide us. One that embraces our safety, well
Slide 107: Our purpose: helping customers, communities and industries to thrive
owpurese, Flaloing Our customers, communities and industries to thrive. What we do is so much more than getting stuff from A to B. It's more than just helping customers to do what they do. Wherever we are, we help to keep communities strong and the wheels of industry turning, by building key supply
Slide 108: Our priorities. Five things that matter
10 Our priorities. Five things that matter. To excel at what we do, we need to take care of what matters. While there's a lot of things that matter, they can be summed up with five words. Safety » Wellbeing > Planet » Opportunity » Performance All have important roles to play. All support one anothe
Slide 109: Safety matters
12 Safety matters. STOP The safety risks in our business are very real. It's important that everything we do is done with safety front of mind. We cannot become complacent. We must continually remind ourselves about the importance of working safely, for ourselves, our colleagues, and our loved ones.
Slide 110: Wellbeing matters
4 Wellbeing matters. We believe we all deserve to be our best. Whoever we are, wherever we're from or whatever we believe in, we all matter. A diverse team is a better team. We also believe in nurturing a workplace where our wellbeing and mental health is as important as our physical safety. Aworkpl
Slide 111: Our planet matters
Our planet matters. rN ‘We all have a responsibility to take care of the planet that sustains us all. Our industry is facing big challenges. From how we power ourselves, to the footprint we leave. ‘We have already set ourselves an industry-leading decarbonisation plan, with an aspirational goal to r
Slide 112: Opportunity matters
Opportunity matters. Success starts with opportunity. Those you seize. And those you create. We keep our eyes open, ever ready for the opportunity to innovate, to improve and to expand. We offer opportunity to customers with solutions beyond the expected. ‘And we build in opportunity with career pat
Slide 113: Performance matters
20 Performance matters. To go further and to hit new heights, means getting things right. When opportunity presents, our vast and experienced team pulls together. With our ‘can-do’ attitude and know-how we solve problems to make things happen. Big things. Massive things. Not that we rest on our laur
Slide 114: Our values. Three things we hold dear
Our values. Th re e things we hold dear. Integrity. Reliability. Inclusion. We believe in doing everything we do with honesty, transparency, and commitment. All deserve to be treated with respect. We believe in doing what we said we'd do, when we said we'd do it, safely and securely. Trust is earned
Slide 115: Our personality. Three words
26 Our personality. Th re e@ words Assured. Curious. We are confident and considered, never arrogant. We have the collective experience and know-how to answer challenges big and small. We are positive and open-minded, never negative. We relish new challenges as opportunities to learn, grow, and push
Slide 116: Our promise. What matters to you matters to us
Our promise. Wh at matters to you matters to us. While we're about big tasks, with massive machines and huge networks, at our heart, we are a people business. Where your safety and life beyond work matters. Where your ideas matter. Where opportunities abound amongst a supportive team. A team who kno
Slide 117: Our Decarbonisation Journey
Extracted from FY22 Sustainability Report Our Decarbonisation Journey Right now, it's clear that our planet needs some help. We realise that we have to reduce carbon emissions to ensure our planet thrives. We are aware that diesel is our main source of carbon emissions. In order to reduce carbon emi
Slide 118: Emissions Goals
Emissions Goals Sustainable fuels, like biofuels and eFuels in particular, are important to Qube’s decarbonisation roadmap and will be part of our continued alternative fuel initiative. We will maintain a dedicated program to drive continued improvement in carbon emissions reduction, energy efficien
Slide 119: Energy Goals
Energy Goals We’re setting out to power Qube owned offices and facilities with 100% renewable energy by the end of 2030. Progress is already being made thanks to renewable power purchase agreements and installation of onsite solar panels. However, our success and ability to do so will be dependent o
Slide 120: Climate Change Goals
Climate Change Goals Changing weather patterns and extreme weather events are having repercussions on not just the environment, but also on physical wellbeing. They create an increased risk to supply chain networks. Our key goals in relation to climate change are: Complete TCFD Assessment and Partia
Slide 121: Innovation Goals
Innovation Goals Sustainable innovation is key to our ability to help both Qube and our planet thrive, which is why we’re investing in trials and projects with potential to long-term social and environmental benefits. INNOVATION PATHWAYS: 4 WAYS TO SUPPORT OUR GOALS 1. HEAVY EQUIPMENT TECHNOLOGY 2.
Slide 122: Our Journey to Decarbonisation – Road
Our Journey to Decarbonisation We know that the main generator of our emissions is diesel, we have established a number of pathways to support our goal to reduce our emissions. ROAD HEAVY & LIGHT VEHICLES TODAY 2022 - 2027 2030+ 2050 Heavy vehicles 95% of prime movers Euro 5, 6 Reduce Scope 1 emissi
Slide 123: Rail Locomotives
RAIL LOCOMOTIVES TODAY 2022 - 2027 2030+ 2050 § Qube has commenced replenishing our § Locomotive replenishment program (long § Reduce Scope 1 emissions intensity by § Aspirational goal - Net Carbon Zero locomotive fleet with new locomotives term/investment viable) 50% that are adaptable for biofuels
Slide 124: Premises, Lifting Equipment and Power
PREMISES LIFTING EQUIPMENT | POWER TODAY 2022 - 2027 2030+ 2050 Power § Continue working towards 100% § 100% renewable energy across our § Aspirational goal - Net Carbon Zero § Introducing renewable energy into renewable energy by 2030 in Qube Qube owned offices and facilities power contracts in Qub