Qube Holdings Ltd. · ASX:QUB
Qube — H1 FY2019 Earnings Presentation
31 slides from Qube's earnings presentation, Feb 21, 2019
Slide 1: Qube Holdings Limited FY19 Interim Results
QUBE HOLDINGS LIMITED Investor Presentation FY 19 Interim Results
Slide 2: Disclaimer – Important Notice
Disclaimer – Important Notice The information contained in this Presentation or subsequently provided to the recipient whether orally or in writing by, or on behalf of Qube Holdings Limited (Qube) or any of its directors, officers, employees, agents, representatives and advisers (the Parties) is pro
Slide 3: Table of contents
Table of contents 1. FY 19 Interim Results Highlights 2. Divisional Summary 3. Key Financial Information 4. FY 19 Outlook and Guidance 5. Appendices – Additional Financial Information 3
Slide 4: FY19 Interim Results Highlights
FY 19 Interim Results Highlights Solid financial performance in the period Half year in review Key metrics • Solid financial results with a return to growth in underlying earnings per share pre- Statutory revenue Underlying revenue amortisation (EPSA) (+18.4% vs pcp) and high cashflow generation +5.
Slide 5: Underlying revenue and EBITA growth
FY 19 Interim Results Highlights Solid financial performance in the period Underlying revenue (+5.9%) 859.5 Underlying EBITA (+11.7%) 860 - 95 4.9 93.6 0.2 850 5.5 840 90 $ million 42.7 $ million 830 4.1 820 85 83.8 811.9 810 800 80 H1 – FY 18 Operating Infrastructure & Corporate H1 – FY 19 H1 – FY
Slide 6: Underlying NPATA and EPSA growth
FY 19 Interim Results Highlights Solid financial performance in the period Underlying NPATA (+17.9%) Underlying EPSA (+18.4%) 76 4.7 0.1 (0.1) 74 4.5 (0.9) 72.6 4.5 1.8 0.2 72 2.5 $ million 70 4.3 cents per share 0.3 68 4.1 4.0 66 0.2 3.9 3.8 64 3.6 61.6 3.7 62 60 3.5 H1 – FY 18 Operating Infrastruc
Slide 7: Continued focus on safety
FY 19 Interim Results Highlights Continued focus on safety Lost Time Injury Frequency Rate (LTIFR)* 7 6.6 6 5 4.6 • Increase in LTIFR and TRIFR in H1 FY 19 due to a small number of incidents since July 2018, including one tragic fatality in October 4 3.2 2.6 2018 as disclosed at Qube’s 2018 Annual G
Slide 8: Divisional Summary – Operating Division
Divisional Summary Operating Division Financial highlights Underlying revenue Underlying EBITA Average capital employed of $1,726.5 million* Total net capex +5.6% $807.3 million +5.3% $82.1 million $138.6 million ROACE* of 8.9% (10.9%**) Logistics $365.6 million (+0.2%) Ports & Bulk $441.7 million (
Slide 9: Divisional Summary – Infrastructure & Property
Divisional Summary Infrastructure & Property Financial highlights Underlying EBITA Average capital employed of $953.5 million* Underlying revenue Total net capex +10.4% $52.1 million +36.7% $20.5 million $109.3 million ROACE of 4.0%* *Note: Excluding Associates and including revaluations of investme
Slide 10: Moorebank Logistics Park – Planning approvals
KEY PLANNING REQUIREMENTS FOR Moorebank Logistics Park COMMENCEMENT OF IMEX AND RAIL OPERATIONS Planning approvals • Favourable determination from the Independent Planning Commission (IPC) for site subdivision based on a recommendation from the Department of Planning and Qube’s site MPE2 Environment
Slide 11: Moorebank Logistics Park – Project update
Moorebank Logistics Park Project update Ongoing progress with development, construction and leasing activities CONSTRUCTION AND OPERATIONS UPDATE • Construction continued to progress on the IMEX terminal, the Target warehouse and the CY 19 CY 20 CY 21 CY 22 CY23+ rail connection to and from the Sout
Slide 12: Moorebank Logistics Park – Construction progress
Moorebank Logistics Park Construction progress MPE – Target warehouse, existing warehouses and IMEX MPE – IMEX Rail MPE – Installation of IMEX terminal rail track MPW – Moorebank Avenue Overpass MPW – Rail Access Loop GWS site – Connection to SSFL 12
Slide 13: Moorebank Logistics Park – Tenant take up update
Moorebank Logistics Park Tenant take up update – Moorebank Precinct East under negotiation under under Warehouse 3PL negotiation discussion 22,600m2 21,800m2 20,100m2 17,800 m2 (total) 40,166 m2 (total) Qube Logistics Warehouse 50,000m2 50,000m2 Target 37,860m2 Leased Under negotiation Under discuss
Slide 14: Divisional Summary – Patrick
Divisional Summary Patrick Financial highlights Continued high cash distribution to shareholders Underlying revenue Average capital employed (50%) of Dividend $6.4m Qube’s share of underlying $313.7 million NPAT pre-amortisation (50%)* $1,426.4 million Total distributions +9.6% (100% basis) +15.1% $
Slide 15: Key Financial Information – Statutory Results
Key Financial Information Statutory Results H1 – FY 19 H1 – FY 18 Change (%) ($m) ($m) Revenue 837.0 797.2 5.0% EBITDA 147.9 128.4 15.2% EBITA 93.6 77.9 20.2% EBIT 88.0 71.8 22.6% Net Finance Costs (9.4) (8.0) (17.5%) Share of Profit of Associates 7.0 3.0 133.3% Non- Controlling Interest 0.4 - N/A P
Slide 16: Key Financial Information – Underlying Results
Key Financial Information Underlying Results H1 – FY 19 H1 – FY 18 Change (%) ($m) ($m) Revenue 859.5 811.9 5.9% EBITDA 147.9 134.3 10.1% EBITA 93.6 83.8 11.7% EBIT 88.0 77.7 13.3% Net Finance Costs (6.3) (5.2) (21.2%) Share of Profit of Associates 7.0 3.0 133.3% Non- Controlling Interest 0.4 - N/A
Slide 17: Balance Sheet & Capital Expenditure
Key Financial Information Balance Sheet & Capital Expenditure Key balance sheet metrics Net assets Net Debt* Cash and Undrawn Debt Facilities Leverage ratio** attributable to Qube $1,069.6 million $800 million 28.1% $2,739.6 million $ *Note: Net debt excludes capitalised establishment costs of $12.4
Slide 18: Cashflow – Change in Net Debt
Key Financial Information Cashflow Change in Net Debt for Six Months to 31 December 2018 1,200 1,069.6 9.8 1,000 75.4 25.5 21.0 Sub Note 871.1 305.0 800 (137.7) 246.4 Sub Note 305.0 (41.9) $ million 600 Senior Debt 400 (net of cash) Senior Debt 764.6 (net of cash) 200 566.1 0 Net Debt Operating Divi
Slide 19: Funding and liquidity at December 2018
Key Financial Information Funding and liquidity at 31 December 2018 Debt facility maturity profile Key initiatives completed in H1: • Extended the maturity of the majority of Qube’s existing bilateral facilities with improved overall pricing • Established $100 million of new 7-year bilateral debt fa
Slide 20: FY19 Outlook and Guidance
FY 19 Outlook and Guidance No change to Qube’s FY 19 guidance Current FY 19 Original FY 19 guidance Comment guidance • Assumes no further material decline in motor vehicle imports and no material change to competitive environment or economic Operating • Reasonable growth in overall revenue and earni
Slide 21: Questions
Questions
Slide 22: Additional Financial Information (Appendices)
Additional Financial Information (Appendices)
Slide 23: Reconciliation of H1 FY19 Statutory to Underlying Results
Appendix 1 Reconciliation of H1– FY 19 Statutory Results to Underlying Results Operating Infrastructure Corporate Patrick Consolidated H1 – FY 19 ($m) Division & Property and Other ($m) ($m) ($m) ($m) ($m) Statutory net profit / (loss) before income tax 102.1 (4.4) (30.9) 18.8 85.6 Share of (profit)
Slide 24: Reconciliation of H1 FY18 Statutory to Underlying Results
Appendix 2 Reconciliation of H1– FY 18 Statutory Results to Underlying Results Operating Infrastructure Corporate Logistics Ports & Bulk Patrick Consolidated H1 – FY 18 ($m) Division & Property and Other ($m) ($m) ($m) ($m) ($m) ($m) ($m) Statutory net profit / (loss) before income tax 33.3 51.4 84.
Slide 25: Segment Breakdown
Appendix 3 Segment Breakdown Operating Infrastructure Corporate H1 – FY 19 Total H1 – FY 18 Division & Property and Other ($m) ($m) ($m) ($m) ($m) ($m) Statutory Revenue 807.3 29.6 0.1 837.0 797.2 EBITDA 155.9 0.9 (8.9) 147.9 128.4 EBITA 104.6 (2.0) (9.0) 93.6 77.9 EBIT 100.9 (3.9) (9.0) 88.0 71.8 U
Slide 26: Operating Division – Underlying Results
Appendix 4 Operating Division – Underlying Results H1 – FY 19 H1 – FY 18 Change (%) ($m) ($m) Revenue 807.3 764.6 5.6% EBITDA 133.4 125.1 6.6% Depreciation (51.3) (47.1) (8.9%) EBITA 82.1 78.0 5.3% Amortisation (3.7) (4.2) 11.9% EBIT 78.4 73.8 6.2% Share of Profit of Associates 0.9 (0.2) N/A EBITDA
Slide 27: Infrastructure & Property Division – Underlying Results
Appendix 5 Infrastructure & Property Division – Underlying Results H1 – FY 19 H1 – FY 18 Change (%) ($m) ($m) Revenue 52.1 47.2 10.4% EBITDA 23.4 18.3 27.9% Depreciation (2.9) (3.3) 12.1% EBITA 20.5 15.0 36.7% Amortisation (1.9) (1.9) - EBIT 18.6 13.1 42.0% Share of Profit of Associates (0.4) (1.1)
Slide 28: Patrick – Underlying Results
Appendix 6 Patrick – Underlying Results H1 – FY 19 H1 – FY 18 Change (%) ($m) ($m) 100% Revenue 313.7 286.2 9.6% EBITDA 106.2 100.8 5.4% Depreciation (33.7) (36.4) 7.4% EBITA 72.5 64.4 12.6% Amortisation (11.6) (10.2) (13.7%) EBIT 60.9 54.2 12.4% Interest Expense (Net) - External (18.1) (17.1) (5.8%
Slide 29: Other Associates – Underlying Results
Appendix 7 Other Associates – Underlying Results H1 – FY 19 H1 – FY 18 Qube Share of Profit of Associates Change (%) ($m) ($m) NSS 1.2 0.8 50.0% Prixcar (0.3) (1.0) 70.0% Total – Ports & Bulk 0.9 (0.2) N/A Quattro (0.4) (1.0) 60.0% TQ Holdings (0.0) (0.1) 100.0% Total – Strategic Assets (0.4) (1.1)
Slide 30: Corporate – Underlying Results
Appendix 8 Corporate – Underlying Results H1 – FY 19 H1 – FY 18 Change (%) ($m) ($m) Revenue 0.1 0.1 - EBITDA (8.9) (9.1) 2.2% Depreciation (0.1) (0.1) - EBITA (9.0) (9.2) 2.2% Amortisation - - N/A EBIT (9.0) (9.2) 2.2% The underlying information excludes certain non-cash and non-recurring items in
Slide 31: Explanation of Underlying Information
Appendix 9 Explanation of Underlying Information • Underlying revenues and expenses are statutory revenues and expenses adjusted to exclude certain non-cash and non-recurring items such as fair value adjustments on investment properties, cost of legacy incentive schemes and impairments to reflect co