Slide 1: Report for the six months ended 31 December 2004
Report for the six months ended 31 December 2004
Slide 2: Presentation relates to NZX announcement of 7 February 2005
This presentation relates to the Freightways Limited NZX announcement and media release of 7 February 2005. As such it should be read in conjunction with, and is subject to the explanations and views contained in, those releases.
Slide 3: Freightways
Freightways
Slide 4: Financial Highlights
Financial Highlights Dec-04 Dec-03 variance $000 $000 % Operating revenue 117,226 106,358 10% EBITDA 28,212 22,791 24% EBITA 26,000 20,355 28% NPAT 11,238 7,696 46% ROFE 26% 21% NB: The above results are drawn from unaudited management accounts. External auditors have performed a half year review in
Slide 5: Operating Revenue
Operating Revenue 250 200 150 $M 2nd Half 100 1st Half 50 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Year Ended • 10% revenue growth to Dec 2004 • 5 year compound average annual revenue growth of 7%
Slide 6: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 120 1% 117 2% 115 2% 5% 110 $M 106 105 100 2003 O rganic Pricing Market share Acquisition 2004 Growth drivers
Slide 7: EBITA
EBITA 45 40 35 30 25 2nd Half $M 20 1st Half 15 10 5 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Year Ended • 28% EBITA growth to Dec 2004 • 5 year compound average annual EBITA growth of 18%
Slide 8: Drivers of EBITA Growth
Drivers of EBITA Growth • Leverage gained by adding revenue to established national infrastructure • Disciplined margin focus relating to new business • Favourable business mix • Good cost control
Slide 9: Cash Flows
Cash Flows • Operational cash flows of $28m reflect strong EBITA result • Capital expenditure below budgeted expectation at this stage of the year • Borrowings reduced by $3m during the half year ending 31 December 2004
Slide 10: Balance Sheet
Balance Sheet • Continuation of strong negative working capital position • Increase in fixed assets of $1m (net of depreciation) • Reduction in bank borrowings of $3m • Goodwill amortised over 20 years (charge of $5m p.a.)
Slide 11: Interim Dividend
Interim Dividend Dec-04 Jun-04 Dec-03 Dividend declared $9.45m $8.55m $7.25m Fully imputed yes yes yes Cents per share 7.50 6.90 5.85 Record date 18 March - - Payment date 31 March 30 Sept 31 March
Slide 12: Finance Facilities
Finance Facilities • Refinancing completed December 2004 to replace subordinated debt with core bank debt • Additional headroom negotiated of $22m • Interest savings of approximately $500k p.a. will flow from 1 July 2005 • New finance facility leverages existing documentation and covenants
Slide 13: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 14: Strategy
Strategy • Continued development of growth opportunities in Freightways’ existing three core markets • Positioning, People, Performance, Profit • Explore complementary growth opportunities • Invest in IT and infrastructure
Slide 15: The Next Six Months
Freightways The Next Six Months
Slide 16: The Next Six Months
The Next Six Months • Economy favourable from Freightways’ perspective • Characteristics of competitive environment expected to remain unchanged despite competitors ownership change • Consistent application of proven market strategies • Expect to deliver a strong full year result • Business as usual
Slide 17: Summary
Summary • Strong successful business • Positioned to deliver continuing earnings growth • Delivering an attractive dividend yield