Freightways Group Limited · NZX:FRW
Freightways — FY2008 Earnings Presentation
26 slides from Freightways's earnings presentation, Aug 18, 2008
Slide 1: Full Year Presentation 18 August 2008
Full Year Presentation 18 August 2008
Slide 2: Presentation relates to NZX announcement and media release
This presentation relates to the Freightways Limited NZX announcement and media release of 18 August 2008. As such it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. These full year results are drawn from audited financial statements pre
Slide 3: Presentation
Presentation ¾ 2008 Full Year Highlights ¾ Operating Performance ¾ Business Strategy ¾ Outlook
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Slide 5: 2008 Full Year Highlights
Freightways 2008 Full Year Highlights
Slide 6: General Highlights
General Highlights • Successful execution of Australian strategy has created a platform for further growth • Core express package business ahead of last year in a challenging operating environment • Information management business delivered outstanding performance • FRE has delivered another record
Slide 7: Financial Highlights
Financial Highlights Jun-08 Jun-07 Increase $000 $000 % Operating revenue 323,910 283,447 14% EBITDA 68,463 62,929 9% EBITA 60,478 56,531 7% NPAT 32,250 30,832 5% Final dividend (per share) 9.25 cents 9 cents 3% (NB. All re sults above e xclude goodwill amortisation pe r NZ IFRS)
Slide 8: Operating Performance
Freightways Operating Performance
Slide 9: Operating Revenue
Operating Revenue 350 300 250 200 $M 2nd Half 150 1st Half 100 50 - 9 1 0 2 3 4 5 6 7 8 n9 n0 n0 n0 n0 n0 n0 n0 n0 n0 Ju Ju Ju Ju Ju Ju Ju Ju Ju Ju Year Ended • 14% revenue growth compared to 2007 • 5-year compound average annual revenue growth of 11%
Slide 10: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 340 6.5% 324 320 6.25% 300 (1.0% ) 2.6% 283 280 $M 260 240 220 200 2007 Or g a n i c P ric ing Ne w B us ine s s Ac quis it io n 2008 Grow th drivers
Slide 11: EBITA
EBITA 70 60 50 40 $M 2nd Half 30 1st Half 20 10 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Jun08 Year Ended • 7% EBITA growth compared to 2007 • 5-year compound average annual EBITA growth of 14%
Slide 12: Business Segments
Business Segments Operating Performance - Full Year ended 30 Jun-08 Revenue EBITA 85% 85% 15% 15% Express Package & Business Mail Information Management
Slide 13: Express Package & Business Mail
Express Package & Business Mail Jun-08 Jun-07 Increase $000 $000 % Operating revenue 277,655 256,837 8% EBITA 51,567 50,440 2% Margin 19% 20%
Slide 14: Information Management
Information Management Jun-08 Jun-07 Increase $000 $000 % Operating revenue 47,498 27,713 71% EBITA 9,711 6,410 51% Margin 20% 23%
Slide 15: Balance Sheet
Balance Sheet • Negative working capital remains • Increase in fixed assets of $11m (net of depreciation) • Increase in bank borrowings of $48m • Increase in intangibles of $40m • Initial recognition of derivatives fair value at $2m
Slide 16: Cash Flows
Cash Flows • Cash generated from operations of $67m • Capital expenditure of $15m • Payments for acquisitions of $41m • Cash of $42m drawn from borrowings during the year
Slide 17: Dividends
Dividends Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Dividends declared $15.8m $20.2m $22.1m $23.1m $24.1m Cents per share 12.75 16.00 17.25 18.00 18.75 • Annual payout increased by 4% compared to 2007 • Final dividend for 2008 declared at 9.25 cps - Fully imputed at 33% tax rate - Record date: Friday, 12 S
Slide 18: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 19: Business strategy
Business strategy • Develop organic growth opportunities • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 20: Recent Acquisitions
Recent Acquisitions • DataBank 2nd year targeted earnings achieved • Shred-X 1st year targeted earnings achieved • Acquisitions completed during the year, including NRM, FPS and NOW Couriers, are all on target to achieve expected earnings
Slide 21: Express Package & Business Mail
Express Package & Business Mail Network courier Point-to-point Business mail Support
Slide 22: Information Management
Information Management New Zealand NSW VIC QLD ACT SA Document --- --- Storage Data Storage Document --- --- --- Destruction
Slide 23: Outlook
Freightways Outlook
Slide 24: Capital expenditure
Capital expenditure 2008 2009 Actual Forecast Capital expenditure $15m $21m Depreciation $8m $10m • 2009 capital expenditure includes two significant property developments
Slide 25: Outlook
Outlook • Subject to the NZ economy, Express Package & Business Mail division is expected to deliver sound performance in line with recent trends • Information Management division is expected to improve year- on-year performance with margins returning to 2008 levels as new capacity is utilised • Cha
Slide 26: Summary
Summary 9 Strong successful business 9 Positioned to deliver continuing earnings growth 9 Delivering an attractive dividend yield