Mainfreight Limited · NZX:MFT

Mainfreight — FY2011 Earnings Presentation

30 slides from Mainfreight's earnings presentation, May 2011

1. Slide 1: Full Year Result to March 2011

   FULL YEAR RESULT TO MARCH 2011

2. Slide 2: Full year highlights

   ƒ Revenue up 18.5% to $1.34 billion from $1.13 billion ƒ EBITDA $91.58 million, up 20.7% and includes return to full bonus of $11.95 million as against $3.04 million last year ƒ Net surplus before abnormals up 23.5% to $47.24 million ƒ Abnormals of $21.53 million made up primarily of acquisition cos

3. Slide 3: Group financial results summary

   NZ$ million This Year Last Year Variance Group Revenue 1,341.5 1,132.2 18.5% Net Surplus New Zealand 24 6 24.6 21 4 21.4 14 5% 14.5% Net Surplus Offshore 22.6 16.8 35.0% Net Surplus before Abnormals 47.2 38.2 23.5% Abnormals (21.5) (1.9) EBIT 70.7 56.7 24.7% EBITDA 91 6 91.6 75 8 75.8 20 7% 20.7% EB

4. Slide 4: Net debt and capital expenditure

   NZ$ million This Year Last Year Term borrowings 97.1 119.4 Finance lease 05 0.5 11 1.1 Deposits (50.0) (37.6) T t l Total 47 6 47.6 82 9 82.9 ƒ USD foreign exchange movement assisted ƒ Continued low capital p expenditure: p $18.1 million vs $16.8 million last yyear ƒ Post year‐end, Wim Bosman Group

5. Slide 5: Operating cash flow and working capital

   NZ$ million This Year Last Year Operating cash flow 71.8 53.7 ƒ Workingg capital p movements positive p $ $13.6 million in 2011 year, y , largely g y due to bonus and acquisition cost accruals ƒ Working capital movements neutral in 2010 year ƒ Capex expectations for F12: ƒ Property $40 million ƒ Oth

6. Slide 6: Final dividend

   ƒ 11 cents per share for final dividend ƒ Takes total dividend for year to 20.0 cents per share; last year 18.5 cents per share ƒ Equates to 47.1% of net surplus before abnormals ƒ Books closingg 15 Julyy 2011 ƒ Payment 22 July 2011

7. Slide 7: Result overview and debt restructure

   ƒ Record, highest ever revenues – contributions from all divisions. When revenue from Wim Bosman is added, expect revenues of ~$1.8 billion pa ƒ Record, highest ever EBITDA and net profit before abnormals ƒ Post year‐end Bosman acquisition provides European footprint ƒ Profitability recovery in Main

8. Slide 8: Bonus allocation and management changes

   ƒ Full bonus allocation of $11.95 million ƒ Record level, reflecting result ƒ Expected to be paid to 1,847 team members ƒ Management changes for New Zealand Domestic, Australia, European transition ƒ Post year‐end trading sees continued revenue and profit momentum

9. Slide 9: Q4 revenue by segment

   Q4 Revenue $000 This Year Last Year Variance NZ Domestic: NZ$ 71,294 65,578 8.7% NZ International: NZ$ 30,599 29,267 4 6% 4.6% AU Domestic: AU$ 42,034 36,773 14.3% AU International: AU$ 45,636 42,653 7.0% USA*: US$ 78,784 62,441 26.2% Asia: US$ 5,208 5,590 (6.8)% Total Group: NZ$ 329,621 289,892 13.

10. Slide 10: Net surplus after bonus by segment

    After Bonus $000 This Year Last Year Variance NZ Domestic: NZ$ 11,532 10,403 10.9% NZ International: NZ$ 1,687 1,589 6 2% 6.2% AU Domestic: AU$ 2,784 1,226 127.2% AU International: AU$ 2,136 2,623 ( (18.6)% ) USA*: US$ 3,055 1,268 140.9% Asia: US$ 613 362 69.1% Total Group: NZ$ 24,625 19,048 29.3% *

11. Slide 11: New Zealand results

    NZ$ million This Year Last Year Sales revenue 412.6 375.0 EBITA 38 9 38.9 9 4% 9.4% 34 9 34.9 9 3% 9.3% EBITDA (After Bonus) 47.9 11.6% 44.1 11.8% EBITDA (Before Bonus) 54 1 54.1 13 1% 13.1% 45 6 12.2% 45.6 12 2% ƒ New Zealand revenue now 30.8% of total; 23.1% with Wim Bosman ƒ New Zealand EBITDA no

12. Slide 12: New Zealand Domestic

    NZ$ million This Year Last Year Sales revenue 290.8 267.5 EBITA 33 5 33.5 11 5% 11.5% 30 1 11.3% 30.1 11 3% EBITDA (After Bonus) 42.3 14.5% 39.0 14.6% EBITDA (Before Bonus) 47.5 16.3% 40.4 15.1% ƒ Revenue improvement assisted by market share gains – FMCG sector ƒ Rate review completed November 2010

13. Slide 13: New Zealand Domestic management and operations

    ƒ European operationall initiatives to be b introduced d d ƒ Warehousing profitability improved despite September Christchurch earthquake q damage; g ; continue to consolidate operations p and improving p g capabilities ƒ Carl George appointed as National Manager Domestic Transport ƒ Nic Kay appoint

14. Slide 14: New Zealand International

    NZ$ million This Year Last Year Sales revenue 121.8 107.5 EBITA 54 5.4 4 4% 4.4% 48 4.8 4 5% 4.5% EBITDA (After Bonus) 5.6 4.6% 5.0 4.7% EBITDA (Before Bonus) 6.6 5.4% 5.2 4.9% ƒ Revenue improvement 13% ƒ Volume improvements ƒ Sea import 12% ƒ Sea export 14% ƒ Air import 53% ƒ Air export (4)% ƒ Cust

15. Slide 15: New Zealand International commentary

    ƒ Import growthh in sea andd air products d ƒ Export growth muted, not assisted by exchange rate strength ƒ Perishable revenue up 3% as capability increases – China developments

16. Slide 16: Australia results

    AU$ million This Year Last Year Sales revenue 367.0 312.9 EBITA 17 5 17.5 4 8% 4.8% 15 4 15.4 4 9% 4.9% EBITDA (After Bonus) 19.9 5.4% 17.9 5.7% EBITDA (Before Bonus) 22 3 22.3 6 1% 6.1% 18 8 18.8 6 0% 6.0% ƒ Strong revenue growth across all divisions ƒ Management structure changes to assist develop

17. Slide 17: Australia Domestic

    AU$ million This Year Last Year Sales revenue 175.1 151.3 EBITA 11 5 11.5 6 6% 6.6% 89 8.9 5 9% 5.9% EBITDA (After Bonus) 13.1 7.5% 10.6 7.0% EBITDA (Before Bonus) 14 4 14.4 8 3% 8.3% 11 1 11.1 7 3% 7.3% ƒ Total tonnes carried up 17%; revenue improvement 15.7% ƒ Network development; Gold Coast branc

18. Slide 18: Australia Domestic management and property

    ƒ Bryan B Curtis C ti (ex ( Owens O New N Zealand) Z l d) now managing i Domestic D ti operations ti ƒ Owens wharf cartage operations to extend network ƒ Brisbane pproperty p y negotiations; g ; Melbourne pproperty p y acquisitions q proving p g difficult

19. Slide 19: Australia International

    AU$ million This Year Last Year Sales revenue 191.9 161.6 EBITA 60 6.0 3 1% 3.1% 65 6.5 4 0% 4.0% EBITDA (After Bonus) 6.8 3.5% 7.3 4.5% EBITDA (Before Bonus) 7.9 4.1% 7.7 4.7% ƒ Revenue improvement 18% ƒ Volume improvements ƒ Sea import 18% ƒ Sea export 15% ƒ Air import 15% ƒ Air export 51% ƒ Custo

20. Slide 20: Australia International branches and services

    ƒ New branches b h in Newcastle l and d Townsville; ll 2 more b branches h to open in 2011 ƒ Perishable pproducts and services development p for Sydney y y and Brisbane to complement Melbourne ƒ Gross margin decline unacceptable – focus on improving ƒ Diversified i ifi d service i range now includin

21. Slide 21: USA results

    US$ million This Year Last Year Sales revenue 308.2 228.2 EBITA 82 8.2 2 7% 2.7% 23 2.3 1 0% 1.0% EBITDA (After Bonus) 10.7 3.5% 4.9 2.2% EBITDA (Before Bonus) 12 3 12.3 4 0% 4.0% 51 5.1 2 2% 2.2% ƒ Combined revenue increase of 35.1%

22. Slide 22: CaroTrans

    US$ million This Year Last Year Sales revenue 134.0 99.5 EBITA 87 8.7 6 5% 6.5% 71 7.1 7 2% 7.2% EBITDA (After Bonus) 9.3 7.0% 7.8 7.8% EBITDA (Before Bonus) 10 9 10.9 8 1% 8.1% 80 8.0 8 0% 8.0% ƒ Network now extends across USA, Australasia, China, Hong Kong, Singapore and d Chile hl ƒ First South A

23. Slide 23: CaroTrans priorities

    ƒ Gross margin decline d l unacceptable bl – focus f on improving ƒ Import product growth of priority – expectation to increase to 20% of sales from 13% ƒ FCL volume growth again as exporters shift to NVOs from carriers ƒ European expansion/network enhancement opportunities continue to be explored l

24. Slide 24: Mainfreight USA

    US$ million This Year Last Year Sales revenue 174.2 128.7 EBITA (0.6) (0.3)% (4.8) (3.7)% EBITDA (After Bonus) 1.4 0.8% (2.9) (2.2)% ƒ Revenue/sales growth of 35% across Domestic (31%) and International ( (39%) ) products ƒ Domestic LTL shipments increased 80% ƒ Established 7 domestic linehaul servi

25. Slide 25: Mainfreight USA offices and cash flow

    ƒ New offices – San Diego, Diego Portland and Seattle – post year‐end Norfolk franchise acquisition ƒ Cash flow improvement – now at 42 days from 44 days ƒ Profit momentum continuing into new financial year ƒ Margin management a priority

26. Slide 26: Asia results

    US$ million This Year Last Year Sales revenue 26.5 18.9 EBITA 23 2.3 8 9% 8.9% 12 1.2 6 5% 6.5% EBITDA (After Bonus) 2.5 9.6% 1.4 7.4% EBITDA (Before Bonus) 28 2.8 10 7% 10.7% 15 1.5 8 0% 8.0% ƒ Best ever result (revenue and profit) ƒ True revenue (sales) at US$42 million includes FOB sales – in‐cou

27. Slide 27: Asia service agreements and network

    ƒ Bulk lk service agreements ffor airfreight f h in place l for f Australia l and d USA trade d routes ƒ Wim Bosman Group p freight g volume currentlyy beingg transferred across to Mainfreight network; European opportunities significant ƒ New branch network likely inland China to follow manufacturin

28. Slide 28: Wim Bosman Group

    ƒ Transaction completed l d 1 Aprill 2011 ƒ Management in place – Mark Newman (formerly NZ Domestic Transport) ƒ International freight transfer to Mainfreight network underway ƒ Significant opportunities available post‐acquisition; optimism ƒ International freight software implementation – June ƒ Ma

29. Slide 29: Outlook and expectations

    ƒ Expectations for further improved financial performance ƒ Expect competitive advantage from rail initiatives in New Zealand Domestic market ƒ Australian management changes to deliver: ƒ More growth ƒ Improved quality ƒ Branch network ƒ Improved integration ƒ Wim Bosman transaction to provide: ƒ Gr

30. Slide 30: Quarterly result release dates

    Quarter Release l Date Q1 – 3 months ended 30 June 2011 11 August 2011 Q2 – 6 months ended 30 September 2011 10 November 2011 Q3 – 9 months ended 31 December 2011 9 February 2012 Q4 – 12 months ended 31 March 2012 30 May 2012

Mainfreight — FY2011 Earnings Presentation on 6ix