Freightways Group Limited · NZX:FRW

Freightways — Shareholder Meeting (October 2022)

38 slides from Freightways's shareholder meeting presentation, Oct 27, 2022

  1. Slide 1: Freightways Annual Shareholders Meeting 2022

    DRIVING GROWTH RESPONSIBLY: FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING 2022 27 OCTOBER 2022 | NZX FRE

  2. Slide 2: Chairman's Introduction

    Mark Cairns Chairman’s Introduction 3 CHAIRMAN’S INTRODUCTION CEO’S STRATEGY & TRADING UPDATE VOTING & QUESTIONS RESOLUTIONS APPENDICES

  3. Slide 3: Shareholder and Proxyholder Q&A Participation

    Shareholder and Proxyholder Q&A Participation How to submit QUESTIONS  Questions may be submitted ahead of the meeting. If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime. Type your question into the field and press submit

  4. Slide 4: Shareholder and Proxyholder Voting

    Shareholder and Proxyholder Voting How to VOTE  Once the voting has been opened, the resolutions and voting options will allow voting.  To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen. You can vote for all resolutions at once or by each

  5. Slide 5: Agenda: The Board and Management Team

    The Board and Management Team AGENDA 1. Chairman’s Introduction Mark Cairns Chairman Abby Foote Director David Gibson Director 2. CEO’s Strategy and Trading Update 3. Voting and Questions 4. Resolutions Fiona Oliver Mark Rushworth Peter Kean Director Director Director Mark Troughear Stephan Deschamp

  6. Slide 6: FY22 Highlights: Market share gains driven by service performance

    FY22 HIGHLIGHTS: Revenue Express Information Package Management 9.1 % 8.8 Growth % 14.3 % ACROSS REVENUE EBITA FREIGHTWAYS GROWTH GROWTH 4.1 NPAT Growth % (before change in fair value of Market share gains driven by service performance contingent consideration – BCD) 7 CHAIRMAN’S INTRODUCTION CEO’S

  7. Slide 7: FY22 Highlights: Strong digital growth on both sides of the Tasman

    FY22 HIGHLIGHTS: Express Package Express Package Express Package Pricing for Contractor Growth in BCD & 3PL % % Effort achieved earnings up Revenue of $1.52 JUNE 2022 7.2 vs. prior comparative 14 Over the PCP period (PCP) Information Management Waste Renewal Business Mail FY22 Revenue increased to N

  8. Slide 8: Covid Impact

    Covid Impact H1 Impact H2 Impact  Under alert level 4, activity levels are significantly impacted across As updated in our May 2022 trading update: our New Zealand businesses.  Omicron had a significant effect on our business in January and  The move from level 4 to level 3 in September 2021 saw

  9. Slide 9: Dividend

    Dividend FINAL DIVIDEND 19 CPS IMPUTATION CREDITS 7.39 CPS (FULLY IMPUTED AT 28% TAX RATE) SUPPLEMENTARY DIVIDEND 3.3529 CPS RECORD DATE 16 SEPTEMBER 2022 PAYMENT DATE 3 OCTOBER 2022 Dividend Policy aligned with Capital Management Policy, balancing a number of objectives: 1. The setting of the divid

  10. Slide 10: CEO's Strategy and Trading Update

    Mark Troughear CEO's Strategy and Trading Update 11 CHAIRMAN’S INTRODUCTION CEO’S STRATEGY & TRADING UPDATE VOTING & QUESTIONS RESOLUTIONS APPENDICES

  11. Slide 11: Growth Strategy: Three Horizons of Growth

    GROWTH STRATEGY: Three Horizons of Growth 12 CHAIRMAN’S INTRODUCTION CEO’S STRATEGY & TRADING UPDATE VOTING & QUESTIONS RESOLUTIONS APPENDICES

  12. Slide 12: Express Package and Business Mail

    Express Package and Business Mail Horizon 3: Oversize Horizon 2: B2C ESTABLISH NEW LINES OF BUSINESS  Launch of Kiwi Express Horizon 1: B2B GROW SCALE Oversize service in 2022  Pricing for Effort (PFE) hit  Allied Express joins FRE in $1.52 in July FY23 October 2022 with a focus on 22kg+ EXTEND A

  13. Slide 13: Temperature Controlled Logistics

    Temperature Controlled Logistics Horizon 3: Same Day Horizon 2: 3PL ESTABLISH NEW LINES OF BUSINESS • Acquisition of Horizon 1: National Delivery ProducePronto in 2021 GROW SCALE • Roll out of national delivery  Utilisation of 95% in for convenience stores Auckland EXTEND AND DEFEND • Leverage the

  14. Slide 14: Information Management

    Information Management Horizon 3: eCommerce 3PL Horizon 2: Digitisation ESTABLISH NEW LINES OF BUSINESS  Establish STOCKA – an Horizon 1: Storage GROW SCALE offering for SME’s who require eCommerce  Leverage TIMG’s credibility fulfilment by leveraging to win new contracts in existing facilities, s

  15. Slide 15: Waste Renewal

    Waste Renewal Horizon 3: High Value Waste Horizon 2: Medical Waste ESTABLISH NEW LINES OF BUSINESS  Expand SaveBoard from NZ Horizon 1: Secure Destruction GROW SCALE only to establish plants in Australia over the next 2  Build out the processing years footprint in VIC and QLD  Continue to grow ot

  16. Slide 16: ESG Update

    ESG Update Key areas of focus 3. GOOD HEALTH AND WELLBEING • Health and safety in employment – injury reduction. LTIFR reduced from 12 to 11 in FY22 • Deployment of advanced in cab road safety technology in linehaul vehicles • Employee wellness programme and mental health awareness training rolled o

  17. Slide 17: Carbon Emissions Reduction – Progress Update

    Carbon Emissions Reduction – Progress Update INITIATIVE TIMELINE COMMENT Charging infrastructure and increasing supply + operating costs are currently barriers to progress. 100% of company cars are PHEV or EV 2029 Expect this to improve by 2025. Charging infrastructure, limited-supply and high opera

  18. Slide 18: Q1 Trading Update

    Q1 Trading Update 19 CHAIRMAN’S INTRODUCTION CEO’S STRATEGY & TRADING UPDATE VOTING & QUESTIONS RESOLUTIONS APPENDICES

  19. Slide 19: Q1 Consolidated Performance

    Q1 Consolidated Performance Unaudited Q1 FY23 Q1 FY22 Change Note $m $m % Operating Revenue 237.4 203.1 16.9 EBITDA (non-GAAP) (i) 49.5 45.5 8.8 EBITA (non-GAAP) (ii) 34.0 31.6 7.6 NPATA (non-GAAP) (iii) 21.0 19.9 5.5 NPAT (GAAP) (iv) 19.3 18.1 6.6 NOTES i. Operating profit before interest, tax, dep

  20. Slide 20: Q1 Express Package & Business Mail

    Q1 Express Package & Business Mail Unaudited and excludes lease accounting Q1 FY23 Q1 FY22 Change $m $m % Operating Revenue 184.8 160.5 15.1 EBITDA (non-GAAP) 31.1 28.0 11.1 EBITA (non-GAAP) 27.9 25.1 11.2 EBITA Margin 15.1% 15.6% Results in this table are before NZ IFRS16 (Leases) and are according

  21. Slide 21: Q1 Information Management

    Q1 Information Management Unaudited and excludes lease accounting Q1 FY23 Q1 FY22 Change $m $m % Operating Revenue 53.6 43.0 24.7 EBITDA (non-GAAP) 9.7 9.0 7.8 EBITA (non-GAAP) 7.5 7.1 5.6 EBITA Margin 14.0% 16.5% Results in this table are before NZ IFRS16 (Leases) and are accordingly non-GAAP. Refe

  22. Slide 22: Express Package Item Growth YOY (Network Couriers Only)

    Express Package Item Growth YOY (Network Couriers Only) Growth FY23 v FY22 Growth FY23 v FY20 (pre Covid) 60% 20.00% Queens Memorial Day Alert Level 4, 2021 Queens Memorial Day Alert Level 3, 2020 (Public Holiday) 2022 (Public Holiday) 2022 50% 15.00% 40% 30% 10.00% 20% 10% 5.00% 0% 1 2 3 4 5 6 7 8

  23. Slide 23: Outlook

    Outlook 24 CHAIRMAN’S INTRODUCTION CEO’S STRATEGY & TRADING UPDATE VOTING & QUESTIONS RESOLUTIONS APPENDICES

  24. Slide 24: Conclusion and Outlook

    Conclusion and Outlook “Our people remain our greatest asset. We have a highly experienced and committed team, many of whom have been with us for decades. Our team got us through the challenges • We expect item count v the pcp for H1 to be slightly negative due to a strong comparative period in the

  25. Slide 25: Questions

    Questions

  26. Slide 26: Resolutions

    Resolutions Shareholders will be asked to consider, and if thought fit, pass the following ordinary resolutions: 1. That David Gibson be elected as a Director of Freightways. 2. That the Directors are authorised to fix the Auditors’ remuneration. 27 CHAIRMAN’S INTRODUCTION CEO’S STRATEGY & TRADING U

  27. Slide 27: Resolution One: David Gibson

    David Gibson RESOLUTION ONE: That David Gibson be elected as a Director of Freightways. 28 CHAIRMAN’S INTRODUCTION CEO’S STRATEGY & TRADING UPDATE VOTING & QUESTIONS RESOLUTIONS APPENDICES

  28. Slide 28: Resolution Two

    Resolutions Resolution Two That the Directors are authorised to fix the Auditors’ remuneration. 29 CHAIRMAN’S INTRODUCTION CEO’S STRATEGY & TRADING UPDATE VOTING & QUESTIONS RESOLUTIONS APPENDICES

  29. Slide 29: Disclaimer

    Disclaimer Read this presentation with the financial statements The financial results in this presentation should be read in conjunction with the financial statements for the year ended 30 June 2022, which can be found in the NZX preliminary results announcement. No offer or investment advice This p

  30. Slide 30: Slide 30

  31. Slide 31: Appendices

    Appendices

  32. Slide 32: Financial Summary

    Financial Summary For the financial year ended 30 June 2022 FY22 FY21 Change Note $m $m % Revenue 873.1 800.5 9.1 EBITA, before change in fair value of contingent consideration – Big Chill i. 130.2 128.9 1.0 Distribution Limited (BCD) (non-GAAP) Change in fair value of contingent consideration – BCD

  33. Slide 33: Express Package & Business Mail

    Express Package & Business Mail For the financial year ended 30 June 2022 FY22 FY21 Change $m $m % Operating Revenue 689.0 633.0 8.8 EBITDA (non-GAAP) 142.2 141.0 0.8 EBITA (non-GAAP) 107.5 107.8 (0.3) EBITA Margin 15.6% 17.0% NPAT (GAAP) 70.0 69.0 1.4 NOTES i. Results in this table are after NZ IFR

  34. Slide 34: Information Management

    Information Management For the financial year ended 30 June 2022 FY22 FY21 Change $m $m % Operating Revenue 187.1 170.7 9.6 EBITDA (non-GAAP) 55.2 50.8 8.6 EBITA (non-GAAP) 33.1 29.0 14.3 EBITA Margin 17.7% 17.0% NPAT (GAAP) 18.2 15.2 19.9 NOTES i. Results in this table are after NZ IFRS16 (Leases).

  35. Slide 35: Appendix: Q1 Group Pre and Post NZ IFRS16

    Appendix Unaudited FREIGHTWAYS Q1 FY23 Q1 FY23 Q1 FY23 Q1 FY22 Q1 FY22 Q1 FY22 GROUP $m $m $m $m $m $m Note Post NZ IFRS16 NZ IFRS16 Pre NZ IFRS16 Post NZ IFRS16 NZ IFRS16 Pre NZ IFRS16 adjustment (non-GAAP) adjustment (non-GAAP) Operating Revenue 237.4 - 237.4 203.1 - 203.1 EBITDA (non-GAAP) (i) 49

  36. Slide 36: Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16

    Appendix Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited) Q1 FY23 Q1 FY22 Change EXPRESS PACKAGE & BUSINESS MAIL $m $m % Operating Revenue 184.8 160.5 15.1 EBITDA (before NZ IFRS16) 31.1 28.0 11.1 Add: NZ IFRS16 adjustment 6.9 6.2 11.3 EBITDA (after NZ IFRS16) 38.0 34.2 11.1 EBITA (befo

  37. Slide 37: Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16

    Appendix Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited) Q1 FY23 Q1 FY22 Change INFORMATION MANAGEMENT $m $m % Operating Revenue 53.6 43.0 24.7 EBITDA (before NZ IFRS16) 9.7 9.0 7.8 Add: NZ IFRS16 adjustment 4.8 4.2 14.3 EBITDA (after NZ IFRS16) 14.5 13.2 9.8 EBITA (before NZ IFRS16) 7

  38. Slide 38: Thank You

    THANK YOU

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