Slide 1: Half Year Results Presentation
Freightways — 3 i a VAURTS HALF YEAR RESULTS PRESENTATION
Slide 2: This presentation relates to the Freightways Limited NZX announcement and media release of 22
This presentation relates to the Freightways Limited NZX announcement and media release of 22 February 2016. As such, it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. The half year financial result presented is drawn from unaudited fin
Slide 3: Agenda
Agenda Financial Highlights Operating Performance Business Strategy Outlook Conclusion Half Year Result | 22 February 2016
Slide 4: 2016 Half Year Highlights
2016 Half Year Highlights Half Year Result | 22 February 2016
Slide 5: Financial Highlights
Financial Highlights $M Note Dec‐15 Dec‐14* Increase Operating Revenue 254.9 241.8 5.4% EBITDA (i) 51.2 48.6 5.3% EBITA (ii) 45.0 42.4 6.1% NPATA (iii) 28.7 26.9 6.7% NPAT (iv) 27.7 26.3 5.5% EPS (cents) 17.9 17.0 5.3% * Dec14 included 4 extra trading days Notes: (i) Operating profit before interest
Slide 6: Operating Performance
Operating Performance Half Year Result | 22 February 2016
Slide 7: Operating Revenue
Operating Revenue 600 500 400 $M 300 200 100 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Ende d 30 June 2nd Half • 5% higher revenue compared to PCP 1st Half Half Year Result | 22 February 2016
Slide 8: EBITA
EBITA 90 80 70 60 50 $M 40 30 20 10 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Ended 30 June 2nd Half • 6% higher EBITA compared to PCP 1st Half NB: This graph represents the operating profit before interest, tax and amortisation of intangibles, exclusive of any non-recurring
Slide 9: Business Segments Operating Performance
Business Segments Operating Performance (Half Year ended 31 December 2015) Revenue EBITA 27% 30% 73% 70% Express Package & Business Mail Information Management Half Year Result | 22 February 2016
Slide 10: Express Package & Business Mail
Express Package & Business Mail Dec-15 Dec-14* Change $M $M Operating Revenue 186.8 185.2 0.9% EBITDA 35.4 35.9 (1.4%) EBITA 32.4 32.7 (0.9%) EBITA Margin 17.3% 17.6% * Dec14 included 4 extra trading days Half Year Result | 22 February 2016
Slide 11: Information Management
Information Management Dec-15 Dec-14 Increase $M $M Operating Revenue 69.1 57.7 19.8% EBITDA 16.5 13.5 22.3% EBITA 14.2 11.3 25.5% EBITA Margin 20.4% 19.6% Half Year Result | 22 February 2016
Slide 12: Balance Sheet – Key Points
Balance Sheet – Key Points Total Assets and Total Liabilities have decreased since FY15 by $1m and $9m, respectively, primarily as a result of converting AUD-denominated balances at a higher NZD exchange rate at 31 December 2015 (NZ$1:A$0.94) compared with 30 June 2015 (NZ$1:A$0.89). The $6m dec
Slide 13: Cash Flow – Key Points
Cash Flow – Key Points Cash from operations was similar to the PCP at $50m, assisted by increased trading and good working capital management. Net cash inflows from operating activities (i.e. after deducting interest and tax payments) were also similar to the PCP at $32m. Cash outflows from inve
Slide 14: Capital Expenditure
Capital Expenditure 2016 2016 Half Year Full Year Actual Forecast Capital Expenditure $8m $20m Depreciation $6m $13m Half Year Result | 22 February 2016
Slide 15: Subsequent Event - Interim Dividend
Subsequent Event ‐ Interim Dividend Interim dividend: 12.75 cps Imputation credits: 4.9583 cps (at 28% tax rate) Supplementary dividend: 2.2500 cps Record date: 18 March 2016 Payment date: 4 April 2016 No DRP was offered in respect of this interim dividend Half Year Result | 22 February
Slide 16: Business Strategy
Business Strategy Half Year Result | 22 February 2016
Slide 17: Business Strategy
Business Strategy Develop organic growth opportunities Diversification by industry and geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities Half Year Result | 22 February 2016
Slide 18: Express Package & Business Mail
Express Package & Business Mail Network Courier Point‐to‐Point Business Mail Support Half Year Result | 22 February 2016
Slide 19: Information Management
Information Management Manage Transform Destroy Archive Security Imaging & document capture Secure destruction DataBank & data security Automated accounts payable eDestruction FileSaver Workflow Solutions Product destruction Secure Distribution Services Digital mailroom Paper recycling LitSupport –
Slide 20: Outlook
Outlook
Slide 21: Outlook
Outlook Positioned in markets that are expected to deliver long-term growth. Given current volatility in global markets, FRE is cautious in its near-term outlook Express Package & Business Mail division expected to perform at similar levels to the prior year Information Management division e
Slide 22: Conclusion
Conclusion Half Year Result | 22 February 2016
Slide 23: Conclusion
Conclusion FRE has delivered a sound half year result Benefits of diversification into the Information Management industry are evident in this result Express Package & Business Mail growth may be challenging in the near term The Directors acknowledge the outstanding work and dedication of th
Slide 24: 2016 Half Year Results Presentation
Freightways — 3 i a 2016 HALF YEAR RESULTS PRESENTATION