Slide 1: Built on Pride – Half Year Ended 31st December 2017
For personal use only BUILT ON PRIDE Half Year Ended 31st December, 2017
Slide 2: H1 FY2018 highlights
H1 FY18 revenue Trailer order | B4 Our values $2 14m book (excl. Coles] NMlaxiTRANS MlaxXiTRANS’ cendall ourpeople home safely * A balanced focus on ' T 17% customers and results * Enable and empower people to H1 FY2018 achieve results * Be honest, forthright and ethical in our ao! EZ oo EV) highlig
Slide 3: Key themes from H1 FY18 result
KEY THEMES FROM H1 FY18 RESULT For personal use only • MaxiTRANS delivers double digit growth • Revenue $214.1m – up 25% on pcp • NPAT $7.7m – up 27% on pcp • Segment profit • Trailer Business up 40% • Parts & Components up 12% • Operating cashflow (excl. capex) $6.9m • MaxiTRANS well positioned for
Slide 4: Financial overview
FINANCIAL OVERVIEW For personal use only A$M 1H17 1H18 % Change External Revenue 171.6 214.1 24.8 EBITDA 12.3 14.5 17.9 D&A (2.4) (2.6) (8.3) EBIT 9.9 11.9 20.2 Interest Expense (1.2) (1.2) - NPBT 8.7 10.7 23.0 Tax (2.3) (2.9) (26.1) Non-Controlling Interest (0.3) (0.1) 66.7 NPAT (Underlying) 6.1 7.
Slide 5: Earnings bridge – NPAT up 27%
EARNINGS BRIDGE – NPAT UP 27% For personal use only NPAT Bridge - 1H18 vs 1H17 • Sales volume growth #039;000 assisted by Coles contract 18,000 $10,117 16,000 • Gross margin decline: • Higher mix on lower 14,000 margin products • Lower gross margins in 12,000 ($3,690) Trailer business than Parts busine
Slide 6: Cashflow
CASHFLOW For personal use only A$M 1H17 1H18 % Change EBITDA 12.3 14.5 17.9 Change in Working Capital (5.3) (3.8) 28.3 Other (5.0) (3.8) 24.0 Operating Cashflow 2.0 6.9 245.0 Dividends Paid (2.0) (2.8) (40.0) Dividends Received 0.4 0.6 50.0 CAPEX (4.4) (6.1) (38.6) Other 0.1 0.1 - Free Cashflow * (3
Slide 7: Cashflow (continued)
CASHFLOW (CONTINUED) Operating Cashflow - 1H18 vs 1H17 For personal use only #039;000 10,000 • Improved cashflow from trading activities 8,000 $1,053 $6,859 • Favourable working $1,556 capital movement in 6,000 H1 FY18 vs pcp $2,216 4,000 $2,034 2,000 - 1H17 Increased EBITDA Improved working capital Ot
Slide 8: Segment earnings – Trailers
SEGMENT EARNINGS – TRAILERS For personal use only A$M 1H17 1H18 % Change • Revenue growth from both Australian Total Revenue 116.5 159.6 37 and NZ businesses External 116.0 154.0 32.7% • As expected, gross margins slightly Revenue below prior year due to higher mix NPBT 8.8 12.3 39.8% toward lower m
Slide 9: General freight – Freighter products
GENERAL FREIGHT – FREIGHTER PRODUCTS For personal use only • Unit sales up 35% v pcp (25% up excluding Coles) • Improving demand from greater customer confidence • MaxiTRANS gained good share of fleet replacement programs undertaken by major fleets • Order book 70% up on pcp
Slide 10: Food & grocery – Maxi-Cube products
FOOD & GROCERY - MAXI-CUBE PRODUCTS • Unit sales up 143% v pcp (flat unit sales For personal use only excluding Coles) • Coles contract tracking to budget and schedule • Excluding Coles, order book down 32% v pcp, partially due to capacity constraints in delivering Coles contract • Significant oppor
Slide 11: Agriculture – Tippers
AGRICULTURE - TIPPERS For personal use only • 18% increase in tipper sales driven by expected buoyant winter crop conditions • Unit sales significantly higher than average of prior three years • Order book lower than pcp
Slide 12: Construction – Tippers
CONSTRUCTION - TIPPERS For personal use only • 6.5% decrease in tipper sales • Unit sales still significantly higher than average of prior three years • Order book lower than pcp – to be expected given initial ramp-up for new projects in prior year (particularly NSW)
Slide 13: New Zealand
NEW ZEALAND For personal use only • Major customers winning new contracts and regulation change drove 77% increase in unit sales v pcp • Volume growth more than offset by significant warranty claims adversely impacting profit • Order book up 61% v pcp
Slide 14: Segment earnings – Parts & Components
SEGMENT EARNINGS – PARTS & COMPONENTS For personal use only A$M 1H17 1H18 % Change • Revenue growth principally driven by Total Revenue 62.5 75.0 20 MaxiPARTS business External 55.6 60.1 8.1 Revenue NPBT 4.2 4.7 11.9 • Strong profit growth from MaxiPARTS NPBT Margin % 6.7 6.3 offset by profit declin
Slide 15: MaxiPARTS
MAXIPARTS For personal use only • External revenue growth from: • MaxiSTOCK customer inventory management system continues to represent a growing proportion of sales • Focus on serving major fleets – comprehensive product range and national store network • Margin decline due to higher mix of sales t
Slide 16: Maxi-Cube Tong Composites (China)
MAXI-CUBE TONG COMPOSITES (CHINA) For personal use only • Revenue growth of 12% on a constant currency basis (7% on reported currency basis) • Margin adversely impacted by: • Delivery of significant order from China Post at reduced margins • Material price increases not able to passed on in the shor
Slide 17: Outlook
OUTLOOK For personal use only • Entering 2H18 with strong Australian and New Zealand order book and further opportunities • Expect further growth from MaxiPARTS business • MTC China to work on margin improvement in H2
Slide 18: Executing corporate strategy and driving change
EXECUTING CORPORATE STRATEGY AND DRIVING CHANGE For personal use only • Operational excellence • Organisational development • Growth in existing business • Growth in new markets • Corporate image
Slide 19: Corporate strategy – transformational change is underway
CORPORATE STRATEGY – TRANSFORMATIONAL CHANGE IS UNDERWAY For personal use only • Multiple operational excellence initiatives under way • New ERP to go live in Manufacturing in mid- 2018. Trailer sales / service, MaxiPARTS and NZ scheduled to go live H2 FY19 • Healthy product development pipeline wit
Slide 20: Behind every industry
i BEHIND EVERY INDUSTRY _4REIGHTER [TEES] lusrvémsay — HamelexWhite —\|MIMEB FEE. @)MaxiPARTS