Qube Holdings Ltd. · ASX:QUB
Qube — FY2022 Earnings Presentation
44 slides from Qube's earnings presentation, Aug 25, 2022
Slide 1: Investor Presentation – FY22 Full Year Results
25 August 2022 ASX Announcement Investor Presentation – FY22 Full Year Results Attached is Qube's Investor Presentation for the year ended 30 June 2022. Authorised for release by: The Board of Directors, Qube Holdings Limited For further information, please contact: Paul Lewis Mark Wratten Group Inv
Slide 2: Qube Holdings Limited Investor Presentation FY22 Full Year Results
Qube Holdings Limited INVESTOR PRESENTATION FY22 FULL YEAR RESULTS
Slide 3: 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 4: Table of Contents
Table of Contents 1 FY22 Full Year Highlights 2 FY22 Divisional Performance 3 Key Financial Information 4 Summary and FY23 Outlook 5 Additional Information: Operating Division 6 Additional Financial Information: Appendices 3
Slide 5: FY22 Full Year Highlights
FY22 Full Year Highlights 4
Slide 6: FY22 Full Year Highlights
FY22 Full Year Highlights STRONG FINANCIAL PERFORMANCE WITH RECORD UNDERLYING RESULTS ACROSS KEY METRICS KEY FINANCIAL MET RICS 1 YEAR IN REVIEW Statutory Revenue Underlying Revenue +15.6% $2,517.8 million +26.6% $2,572.8 million • Strong financial performance in FY22 with record underlying earnings
Slide 7: FY22 Full Year Highlights: Clear Strategy and Diversified Business
FY22 Full Year Highlights QUBE HAS A CLEAR STRATEGY AND A STRONG AND HIGHLY DIVERSIFIED BUSINESS CO MPET IT IVE ST RENG T HS Logistics & Infrastructure Ports & Bulk Patrick Australia’s largest integrated provider of (L&I) (P&B) (50% ownership) import & export logistics solutions Comprehensive logi
Slide 8: Safety Performance
Safety Performance CONTINUE TO FOCUS ON EMPLOYEE SAFETY AND DELIVERING ZERO HARM SAFET Y & HEALT H PERFO RMA NC E Total Recordable Injury Frequency Rate Lost Time Injury Frequency Rate Critical Incident Frequency Rate (TRIFR)1 (LTIFR)2 (CIFR)3 20 3.0 3.5 3.15 16.2 2.40 2.5 3.0 15 2.5 2.18 2.0 9.3 9.
Slide 9: Sustainability Performance
Sustainability Performance REDUCED GREENHOUSE GAS EMISSIONS AND CARBON INTENSITY SUST AINABILIT Y PERFO RMAN CE Climate • Net emissions (scope 1 and scope 2) decreased by 2.0% while underlying revenue increased, resulting in Qube’s carbon intensity (tCO2-e per $M) further decreasing by 8.9% in FY21
Slide 10: FY22 Divisional Performance
FY22 Divisional Performance 9
Slide 11: Operating Division
Operating Division STRONG REVENUE AND EARNINGS GROWTH UNDERLYI NG REVENUE 3,000 • Strong revenue growth across both L&I and P&B delivered 28.1% 2,500 0.2 underlying revenue growth versus FY21. 294.9 269.0 2,000 • As a result of a combination of organic growth from higher volumes, ($ million) +28.1%
Slide 12: Key Challenges FY22
Key Challenges FY22 QUBE OVERCAME MULTIPLE CHALLENGES IN THE PERIOD EXTREME COVID-19 SUPPLY CHAIN VOLUMES – INFLATION WEATHER LABOUR DISRUPTION CHINA IMPACT EVENTS State lockdowns Fuel, supplies, Major East Coast Port congestion, Ability to access Forestry volumes and the extended labour and other a
Slide 13: Operating Division: Geographically Diversified Revenues
Operating Division OUR CUSTOMERS AND REVENUES ARE GEOGRAPHICALLY DIVERSIFIED REVENUE SEGMENTATION BY REGION Revenue Segmentation - Operating Division ($'m) FY22 FY21 800.0 Others* FY21** FY22 Others* NZ 6.3% 2.8% 700.0 QLD NZ 8.0% 2.2% NT 1.8% 600.0 20.3% NT 1.9% QLD 500.0 SA 5.4% 21.9% $'million SA
Slide 14: Logistics & Infrastructure
Logistics & Infrastructure A STRONG FY22, AND WELL POSITIONED FOR FURTHER GROWTH FINANCIAL PERFO RMAN C E AND COMMENTARY Change Change FY22 FY21 • Grew revenues by 31.3% to $1.13 billion and underlying EBITA by ($’m) (%) Revenue 1,129.3 860.3 269.0 31.3% 37.1% to $145.6 million. • Improved EBITA mar
Slide 15: Ports & Bulk (P&B)
Ports & Bulk (P&B) CONTINUED EARNINGS GROWTH DESPITE MULTIPLE CHALLENGES FINANCIAL PERFO RMAN C E AND COMMENTARY Change Change • Grew revenues by 25.7% to $1.44 billion and underlying EBITA by a FY22 FY21 ($’m) (%) more modest 5.9% to $137.2 million. Revenue 1,443.1 1,148.2 294.9 25.7% • Solid contr
Slide 16: Patrick
Patrick IMPROVING REVENUE MIX AND PRODUCTIVITY IMPROVEMENT DRIVING STRONGER PERFORMANCE FINANCIAL PERFO RMAN C E AND COMMENTARY Underlying Results Change Change • Revenue growth of 7.5% predominantly driven by landside and FY22 FY21 ancillary charges, improving revenue per container. ($’m) (%) Qube
Slide 17: Patrick: Volume and Market Share
Patrick MARKET SHARE DECREASED SLIGHTLY, CONTINUED INVESTMENT TO DRIVE FURTHER EFFICIENCIES VO LUME & MARKET SHARE FY 22 Volume Growth vs PCP Patrick Market Share • Patrick volume (lifts) in FY22 were ~2% lower than FY21, 1.0% 0.8% against modest market growth of 0.5%. 0.5% 44% 44% 44% • Patrick mar
Slide 18: Property Division
Property Division SUCCESSFULLY COMPLETED MLP MONETISATION TRANSACTION HIGHLIGHTS Proceeds on completion 15 December 2021 • Up front proceeds of c.$1.36 billion (Dec-21) Tax payable on the capital gain Sale of 100% of its interest in the • Deferred consideration of c.$0.2 billion (Aug-22) (inclusive
Slide 19: Key Financial Information
Key Financial Information 18
Slide 20: Qube Statutory Results
Qube Statutory Results FY22 • Statutory earnings are shown exclusive and FY22 FY21 (excl. (incl. (incl. inclusive of the discontinued Property Discontinued Division. discontinued discontinued discontinued Change (%) operations) operations1 operations) operations) ($m) ($m) ($m) • The reconciliation
Slide 21: Qube Underlying Results
Qube Underlying Results A RECORD FINANCIAL PERFORMANCE FY 22 FY 211 • Prior slides speak to the strong Operating Division and Patrick Change (%) contribution to Qube’s FY22 results. ($m) ($m) • Net finance costs in the period is a result of lower debt levels post the MLP monetisation, net off of int
Slide 22: Capital Expenditure
Capital Expenditure CONTINUED DISCIPLINED INVESTMENT IN GROWTH ASSETS AND ACQUISITIONS GROSS CASH CAPEX BY BUSINESS UNIT GROSS CASH CAPEX BY CATEGORY Total Gross Disposal Acquisitions Growth Maintenance Terminals Net Capex Capex Proceeds Maintenance Growth 37.6% 27.8% L&I 115.6 113.3 34.7 52.0 315.6
Slide 23: Cash Flow
Cash Flow SIGNIFICANT REDUCTION IN NET DEBT CHANGE IN NET BORROWINGS FOR TWELVE MONTHS TO 30 JUNE 2022 • Reduction in net debt of $499.3 2,000 million from June 21 to June 22. 1,800 107.0 • Major cashflow items included: 1,600 165.7 57.2 $1,388.4 37.1 MLP cash receipts, including 1,400 working cap
Slide 24: Balance Sheet & Funding
Balance Sheet & Funding SIGNIFICANT LIQUIDITY AND IMPROVED LEVERAGE RATIO KEY DEBT METRICS DEBT FACILITIES MATURITY PROFILE AT 30 JUNE 2022 Key metrics 30-Jun-22 30-Jun-21 1,400 Net assets attributable to Qube ($m) 2,993.1 3,361.8 1,200 Net debt ($m)1 889.1 1,388.4 1,000 800 825 $ million Cash and u
Slide 25: Summary and FY23 Outlook
Summary and FY23 Outlook 24
Slide 26: Qube's Strategy
Qube’s Strategy FOCUSSED STRATEGY TO DELIVER A SUSTAINABLE COMPETITIVE ADVANTAGE To be the leading provider of integrated logistics solutions focussed on import and export supply chains in Australia, New Zealand and selective international locations OPERATIONAL FOCUS FINANCIAL FOCUS Attract and reta
Slide 27: Qube's Strategy: Sustainable Revenue and Earnings Growth
Qube’s Strategy HAS DELIVERED SUSTAINABLE REVENUE AND EARNINGS GROWTH THROUGH MARKET CYCLES Underlying Revenue - Operating Division Underlying EBITDA - Group Underlying NPATA - Group (FY18-22 CAGR: +13.4%) (FY18-FY22 CAGR:+9.6%) (FY18-FY22 CAGR:+13.1%) 450 250 3,000 400 2,500 350 200 2,000 300 1,500
Slide 28: FY23 Outlook
FY23 Outlook CONTINUED UNDERLYING EARNINGS GROWTH DESPITE MARKET CHALLENGES FY23 OUTLOOK • Strong growth currently expected in underlying revenue and earnings growth (EBITA). The Logistics & Infrastructure business unit is expected to achieve higher growth than the growth in the Ports & Bulk busines
Slide 29: FY23 Outlook: Capex and Depreciation
FY23 Outlook CONTINUED UNDERLYING EARNINGS GROWTH DESPITE MARKET CHALLENGES FY23 OUTLOOK • Around $400-500 million* excluding M&A mainly comprising: Growth capex across the Operating Division (inc. warehouses, storage sheds, locomotives, cranes and other operating equipment) Development of the M
Slide 30: Qube Investor Day
Qube Investor Day UNPACKING OUR UNIQUE BUSINESS AND ASSETS Qube intends to hold an investor day in Sydney on 27th October 2022. The focus will be on providing investors with greater visibility into each of our businesses. OUR OPERATIONS OTHER ⦿ LOGISTICS & INFRASTRUCTURE ⦿ STRATEGY ⦿ PORTS & BULK ⦿
Slide 31: Additional Information: Operating Division
Additional Information: Operating Division 30
Slide 32: Logistics & Infrastructure: Revenue by Region
Logistics & Infrastructure REVENUE BY REGION I N D I C A TI V E R E V E N U E S E G ME N TA TI O N B Y R E G I O N FY22 FY21 Global • Revenue growth across all regions forwarding SA 7.2% Global forwarding SA 6.0% 1.5% in FY22. 1.3% • Strongest contribution from NSW, WA 9.0% QLD and VIC. WA 9.4% • NS
Slide 33: Ports & Bulk: Revenue by Region
Ports & Bulk REVENUE BY REGION I N D I C A TI V E R E V E N U E S E G ME N TA TI O N B Y R E G I O N FY22 FY21 NT 3.2% TAS 2.9% NT 3.3% TAS 3.1% International 4.0% International 2.7% • P&B offers a diverse range of SA 3.6% services across numerous SA 4.8% geographies, commodities and VIC 5.7% VIC 6.
Slide 34: Logistics & Infrastructure: Revenue by Industry
Logistics & Infrastructure REVENUE BY INDUSTRY I N D I C A TI V E R E V E N U E S E G ME N TA TI O N B Y I N D U S TR Y FY22 FY21 Infrastructure and project Infrastructure and project works 4.7% works 5.8% FY 22 FY 21 Change Container By Industry Container handling ($m) ($m) (%) handling & & termina
Slide 35: Ports & Bulk: Revenue by Product
Ports & Bulk REVENUE BY PRODUCT I N D I C A TI V E R E V E N U E S E G ME N TA TI O N B Y P R O D U C T FY22 FY 22 FY 21 Change Infrastructure 3.4% FY21 By Product ($m) ($m) (%) Other*** Iron Ore Infrastructure 7.3% Iron Ore Iron Ore 135.1 88.4 53% 9.8% 9.4% Other*** 7.7% Other Base Metals Ancillary
Slide 36: Acquisitions: Recent History
Acquisitions RECENT HISTORY ACQUISITION • Qube has a history of making accretive acquisitions YEAR KEY RATIONALE CAPEX that enhance our existing service offerings and/or provide opportunities to enter new markets. Expand agri capabilities (NAT), accelerate MLP IMEX volumes • In FY22, Qube made 4 acq
Slide 37: Additional Financial Information (Appendices)
Additional Financial Information (Appendices) 36
Slide 38: Reconciliation of FY22 Statutory Results to Underlying Results
Appendix 1 RECONCILIATION OF FY22 – STATUTORY RESULTS TO UNDERLYING RESULTS Operating Property Corporate and Patrick Consolidated Year Ended 30 June 2022 Division Division Other ($m) ($m) ($m) ($m) ($m) Statutory earnings include the following key items which have been excluded from underlying earni
Slide 39: Reconciliation of FY21 Statutory Results to Underlying Results
Appendix 2 RECONCILIATION OF FY21 – STATUTORY RESULTS TO UNDERLYING RESULTS Operating Property Corporate and Patrick Consolidated Year Ended 30 June 2021 Division Division Other ($m) ($m) ($m) ($m) ($m) Statutory net profit/(loss) before income tax 173.1 (35.1) (49.5) 34.1 122.6 Share of (profit)/lo
Slide 40: Operating Division – Underlying Results
Appendix 3 OPERATING DIVISION – UNDERLYING RESULTS FY 221 FY 21 FY 212 Change (%) Change (%) ($m) ($m) ($m) Total revenue 2,572.6 2,008.5 28.1% 2,010.1 28.0% EBITDA 419.7 351.4 19.4% 349.1 20.2% Depreciation (167.3) (139.4) (20.0%) (142.1) (17.7%) EBITA 252.4 212.0 19.1% 207.0 21.9% Amortisation (6.
Slide 41: Operating Division (By Business Unit) – Underlying Results
Appendix 4 OPERATING DIVISION (BY BUSINESS UNIT) – UNDERLYING RESULTS FY 221 FY 21 Change FY 212 Change FY 221 FY 21 Change FY 212 Change ($m) ($m) (%) ($m) (%) ($m) ($m) (%) ($m) (%) Logistics & Infrastructure 1,129.3 860.3 31.3% 861.8 31.0% Logistics & Infrastructure 17.2% 16.9% - 16.6% 0.6% Ports
Slide 42: Patrick – Underlying Results
Appendix 5 PATRICK – UNDERLYING RESULTS FY 22 FY 21 Change (%) ($m) ($m) 100% Revenue 730.3 679.5 7.5% EBITDA 279.8 240.2 16.5% Depreciation (72.8) (71.5) (1.8%) EBITA 207.0 168.7 22.7% Amortisation (29.5) (27.3) (8.1%) EBIT 177.5 141.4 25.5% Interest Expense (Net) - External (22.1) (23.5) 6.0% Inte
Slide 43: Other – Underlying Results
Appendix 6 OTHER – UNDERLYING RESULTS FY 22 FY 21 Corporate Change (%) ($m) ($m) Revenue 0.2 0.2 - EBITDA (31.1) (28.9) (7.6%) Depreciation (0.2) (0.2) - EBITA (31.3) (29.1) (7.6%) Amortisation - - - EBIT (31.3) (29.1) (7.6%) FY 22 FY 21 Qube Share of Profit of Associates (excluding Patrick) Change
Slide 44: Q&A
Q&A 43