Slide 1: Full Year Presentation
Full Year Presentation 16 August 2010
Slide 2: This presentation relates to the Freightways Limited NZX announcement and media release of 16
This presentation relates to the Freightways Limited NZX announcement and media release of 16 August 2010. 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 2010 Full Year Highlights ¾ Operating Performance ¾ Business Strategy ¾ Outlook
Slide 4: Freightways
Freightways
Slide 5: 2010 Full Year Highlights
Freightways 2010 Full Year Highlights
Slide 6: General Highlights
General Highlights • Progressively improving performance, as evidenced by second half results • Express Package & Business Mail division again proved its resilience, while introducing new services • Information Management division continues to grow, aided by: - recent investment in geographical foot
Slide 7: Normalising of Financial Results for Prior Comparative Period (PCP)
Normalising of Financial Results for Prior Comparative Period (PCP) Impact of Impact of Jun-09 5 extra sale of Jun-09 $000 trading property $000 (reported) days (normalised) Operating Revenue 339,491 (6,000) - 333,491 EBITDA 70,548 (1,500) (4,000) 65,048 EBITA 60,971 (1,500) (4,000) 55,471 NPAT 34,5
Slide 8: Financial Highlights
Financial Highlights Jun-10 Jun-09 Jun-09 Variance to $000 $000 $000 normalised (reported) (normalised) ** % Operating Revenue 328,469 339,491 333,491 (2%) EBITDA 63,742 70,548 65,048 (2%) EBITA 53,881 60,971 55,471 (3%) NPAT* 28,858 34,593 29,508 (2%) * J un-10 NP AT has been no rmalis ed to remove
Slide 9: Half Year on Half Year EBITA Movements
Half Year on Half Year EBITA Movements 15% 10% 5% Change 0% -5% -10% -15% 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 Half Years* * FY09 amounts are normalised, as per the earlier slide.
Slide 10: Operating Performance
Freightways Operating Performance
Slide 11: Operating Revenue
Operating Revenue 400 350 300 250 2nd Half $M 200 1st Half 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Ended 30 June • 2% lower revenue compared to ‘normalised’ PCP (3% lower against reported FY2009) • 10-year compound average annual revenue growth of 7%
Slide 12: Where Revenue Change Has Come From
Where Revenue Change Has Come From (compared to ‘normalised’ PCP) 340 334 (1.7%) $M 330 (0.1%) 0.1% 0.3% 329 320 2009 Volume Pricing Net new business Acquisition 2010 Growth Drivers
Slide 13: EBITA
EBITA 70 60 50 40 2nd Half $M 30 1st Half 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Ended 30 June • 3% lower EBITA compared to ‘normalised’ PCP (12% lower against reported FY2009) • 10-year compound average annual EBITA growth of 10%
Slide 14: Business Segments
Business Segments Operating Performance – Year ended 30 June 2010 Revenue EBITA 80% 78% 20% 22% Express Package & Business Mail Information Management
Slide 15: Express Package & Business Mail
Express Package & Business Mail Jun-10 Jun-09 Jun-09 Variance to $000 $000 $000 normalised (reported) (normalised) % Operating revenue 263,461 279,733 274,033 (4%) EBITDA 48,852 52,703 51,303 (5%) EBITA 43,240 46,914 45,514 (5%) EBITA Margin 16% 17% 17% NB: Jun-09 amounts are normalised to remove 5
Slide 16: Information Management
Information Management Jun-10 Jun-09 Jun-09 Variance to $000 $000 $000 normalised (reported) (normalised) % Operating revenue 66,241 60,961 60,661 9% EBITDA 15,536 13,943 13,843 12% EBITA 12,322 11,145 11,045 12% EBITA Margin 19% 18% 18% NB: Jun-09 amounts are normalised to remove 5 extra trading da
Slide 17: Half Year on Half Year Growth
Half Year on Half Year Growth 1st 2nd Full Half Half Year Express Package & Business Mail Revenue (6.5%) (1.0%) (3.8%) EBITA (12.3%) 4.0% (5.1%) Information Management Revenue 9.5% 8.6% 9.1% EBITA (3.6%) 27.8% 11.8% Consolidated Revenue (3.8%) 0.9% (1.5%) EBITA (10.3%) 5.9% (2.9%) NB: Growth rates a
Slide 18: Balance Sheet
Balance Sheet • Total Assets consistent with FY09, other than $12m in cash at FY09 since applied to debt reduction • Total Liabilities lower due to debt reduction following FRE’s capital management initiatives and a reduction in the derivatives liability balance • Issued Capital increased by $13m fo
Slide 19: Cash Flows - Key Points
Cash Flows - Key Points • Cash inflows from operating activities - $9m down on PCP due to lower sales, higher borrowing costs and an additional tax instalment compared to the prior year • Cash outflows from investing activities - $24m lower due to far less acquisition activity, no major capital inve
Slide 20: Final Dividend
Final Dividend • Final dividend: 7.0 cps • Imputation credits: 3.0 cps • Supplementary dividend: 1.23 cps • Record date: 17 September 2010 • Payment date: 30 September 2010 • No DRP offered in respect of the 2010 Final Dividend
Slide 21: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 22: Business Strategy
Business Strategy • Develop organic growth opportunities • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 23: Express Package & Business Mail
Express Package & Business Mail Network courier Point-to-point Business mail Support
Slide 24: Information Management
Information Management Business Description New Zealand NSW VIC QLD ACT SA WA Document Storage Data Storage Document --- --- Destruction
Slide 25: Outlook
Freightways Outlook
Slide 26: Capital expenditure
Capital expenditure 2010 2011 Capital expenditure $12m $13m Depreciation $10m $11m
Slide 27: Outlook
Outlook • Continuing gradual market improvement expected • EP&BM division will benefit from quality market share wins, including revenue from innovative new services • IM division will continue to benefit from recurring revenue streams and growing overall market, albeit new capacity to accommodate g
Slide 28: Summary
Summary • FRE has again demonstrated its resilience and delivered a result that, while below the prior year, is considered sound • Impact on FRE of an improving economy is expected to be gradual • Subject to business factors beyond its control, FRE remains particularly well positioned to reap the be