Mainfreight Limited · NZX:MFT
Mainfreight — FY2014 Earnings Presentation
28 slides from Mainfreight's earnings presentation, March 2014
Slide 1: Mainfreight Limited Full Year Result to March 2014
MAINFREIGHT LIMITED FULL YEAR RESULT TO MARCH 2014
Slide 2: Result Summary
Result Summary Net surplus after tax and abnormal items up 36% to $89.94 million NET SURPLUS Highest ever result Abnormals $12.15 million Revenue up 2.1% to $1.92 billion REVENUE Excluding FX up 4.8% An increase of $38.3 million EBITDA at record level $149.19 million; increase of 8.5% EBITDA Excludi
Slide 3: Dividend
Dividend Final dividend of 19.0 cents per share DIVIDEND Books close 11 July 2014; payment on 18 July 2014 Total dividend for year 32.0 cents per share, increase of 5.0 cents (18.5%) over the previous year
Slide 4: Capital Management
Capital Management NZ$ MILLION THIS YEAR LAST YEAR Operating cash flow 120.37 83.17 Reflects increased profitability and working capital stability Capital expenditure totalled $78.66 million Land & Buildings $55.8 million Christchurch Rebuild $18.8 million Brisbane New Build $24.3 million
Slide 5: Capital Management: Capital Expenditure Expectations FY15
Capital Management … Capital Expenditure Expectations FY15 NZ$ million Total Capital $128 Property ‐ Christchurch Completion $12 ‐ Auckland (Westney Rd) Extension $16 ‐ Hamilton Land & Building $28 ‐ Dunedin Building $10 ‐ Hamilton Disposal $(7) ‐ Palmerston North Disposal $(2) New Zealand $57 ‐ Bri
Slide 6: Capital Management: Debt Restructure and Refinancing
Capital Management … Debt Restructure and Refinancing FUNDING Four banks vs two: CBA Westpac HSBC BTMU (Bank of Tokyo‐Mitsubishi) Debt facilities to $450 million from $390 million New headroom $1 million Reduced cost Five year term (evergreen) Interest cover 17.14 x
Slide 7: Full Year Analysis: Revenue
Full Year Analysis: Revenue $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 505,189 473,870 6.6% Ï Australia: AU$ 458,473 433,229 5.8% Ï USA: US$ 363,565 357,487 1.7% Ï Asia: US$ 37,704 29,900 26.1% Ï Europe: EU€ 250,721 244,740 2.4% Ï Total Group: NZ$ 1,924,407 1,885,672 2.1% Ï (excl FX) 4.8% Ï
Slide 8: Full Year Analysis: EBITDA
Full Year Analysis: EBITDA $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 67,375 59,924 12.4% Ï Australia: AU$ 35,191 30,458 15.5% Ï USA: US$ 18,853 16,920 11.4% Ï Asia: US$ 3,523 2,603 35.3% Ï Europe: EU€ 8,922 9,456 (5.6)% Ð Total Group: NZ$ 149,187 137,454 8.5% Ï (excl FX) 11.7% Ï
Slide 9: Second Half Comparison: Revenue
Second Half Comparison: Revenue 2ND HALF 2ND HALF $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 262,042 245,581 6.7% Ï Australia: AU$ 234,227 223,811 4.7% Ï USA: US$ 185,446 175,442 5.7% Ï Asia: US$ 19,172 15,151 26.5% Ï Europe: EU€ 125,973 122,385 2.9% Ï Total Group: NZ$ 971,708 949,301 2.4% Ï
Slide 10: Second Half Comparison: EBITDA
Second Half Comparison: EBITDA 2ND HALF 2ND HALF $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 39,720 35,738 11.1% Ï Australia: AU$ 21,110 17,435 21.1% Ï USA: US$ 10,450 8,797 18.8% Ï Asia: US$ 1,703 1,230 38.4% Ï Europe: EU€ 4,954 4,202 17.9% Ï Total Group: NZ$ 85,885 76,393 12.4% Ï (excl FX)
Slide 11: New Zealand
New Zealand Satisfactory performance across all divisions Domestic Transport volumes increased by additional 200k consignments Challenging period with reduced rail and ferry services October to December – continues today FMCG sector, hardware and building‐related tonnage dominated Transport
Slide 12: New Zealand …
New Zealand … Air & Ocean division increased revenues across all modes Increased market share inbound Asia trade lanes Air & Ocean network intensified – greater rural sector presence Christchurch rebuild completion eagerly awaited; due May 2015 Hamilton land purchase and development; May 2
Slide 13: New Zealand … Outlook
New Zealand … Expect consistent improved performance across all divisions OUTLOOK Entry into supply chain opportunities around grocery category Logistics will face increased costs of new facilities Air & Ocean will continue its growth, particularly ex Asia
Slide 14: Australia
Australia Reasonable performance across all divisions Becoming a significant contributor to the Group’s profitability Domestic operations (Transport and Logistics) continuing to lift market share Focus on high quality freight and warehousing services is a factor Expect quality to improve f
Slide 15: Australia …
Australia … Chemcouriers business well‐established and growing Demand Expect contributions to be strong Logistics growth continuing Financial improvement pleasing New facilities to aid growth Sydney 13,250 m2 Brisbane 12,790 m2 (World‐wide total = 450,000 m2) Larapinta QLD
Slide 16: Australia …
Australia … Air & Ocean profitability improved Market share increasing Perishable capability now in Melbourne, Sydney and Brisbane New Brisbane facilities assisting Sales Revenue improved despite decline in ocean rates ex Asia Air & Ocean, Eagle Farm QLD
Slide 17: Australia … Outlook
Australia … Increased sales activity to see revenues improve further OUTLOOK Domestic margins increasing with exit from parcels Building costs may impact first half results for Logistics and Transport slightly Quality improvement through new facilities – Sydney, Brisbane, Adelaide Air & Ocea
Slide 18: The Americas
The Americas Sales revenue increase is disappointing at 1.7% Ocean freight rate fluctuations Domestic sales performance poor CaroTrans improved margins Better container utilisation Improved linehaul negotiation Growth of imports: 16% of revenue vs 13% last year CaroTrans increased gr
Slide 19: The Americas …
The Americas … Mainfreight Domestic performance less than satisfactory Improved in the last quarter Introduced greater volumes of LTL (everyday freight) Commitment to more direct linehaul LA/Dallas/Atlanta; LA/Newark Chicago/Toronto; Chicago/Miami; Chicago/LA Atlanta/Dallas/LA Newark
Slide 20: The Americas …
The Americas … Mainfreight Air & Ocean – much improved margin growth Network focusing on air and sea modes European and Asian trade lane growth a priority; Mainfreight network preferred over agents Additional sales capability developing
Slide 21: The Americas … Outlook
The Americas … Mainfreight USA sales growth expected to be stronger, and OUTLOOK margin improvement as road linehaul routes become MAINFREIGHT effective Entry into 3PL warehousing to bolster supply chain activity and opportunity Expect Air & Ocean business to grow substantially as they target
Slide 22: Europe
Europe Full year sales improved 2.4% to €250.72 million Logistics and Air & Ocean revenue growth Domestic Forwarding growth inhibited by freight rates and Belgian performance EBITDA fell short, 5.6% to €8.92 million Second half EBITDA growth improving; up 17.9% year on year Right‐sizing
Slide 23: Europe …
Europe … New technology commitments Transport Logistics Air & Ocean performance improving however still in a loss position Opened in Germany for USA and Asia trade lanes Lyon will be third French operation
Slide 24: Europe … Outlook
Europe … We see ongoing improvement from Europe in the medium to OUTLOOK long term Belgium cost‐out initiatives will improve Forwarding results Improvements from pan‐European sales activity already showing in early FY15 results Air & Ocean growth to be maintained, expect profitability this yea
Slide 25: Asia
Asia Continued improvement in financial performance Finally, improving sales performance Network expansion saw opening of first Thailand branch Expect to open second branches in Thailand and in Taiwan Airfreight operation for Beijing Will relocate Singapore branch to Changi Airport Tra
Slide 26: Asia … Outlook
Asia … Strong growth of the last year expected to continue OUTLOOK Southeast Asian development Asia / Europe trade lane growth
Slide 27: Group Outlook
Group Outlook Expect all regions to out‐perform last year – ongoing SHORT‐TERM Capex for New Zealand/Australia of $100+ million to complete infrastructure required for growth Expect Asia, USA and Europe to provide significant growth MEDIUM TO LONG‐TERM Air & Ocean to play a bigger role Aus
Slide 28: Financial Calendar F15
Financial Calendar F15 RELEASE DATE Annual Meeting of Shareholders 30 July 2014 F15 – 6 months ended 30 September 2014 11 November 2014 F15 – 12 months ended 31 March 2015 27 May 2015