Mainfreight Limited · NZX:MFT
Mainfreight — Shareholder Meeting (July 2014)
48 slides from Mainfreight's shareholder meeting presentation, Jul 30, 2014
Slide 1: Mainfreight Limited Annual Meeting of Shareholders
MAINFREIGHT LIMITED ANNUAL MEETING OF SHAREHOLDERS 30 JULY 2014
Slide 2: Result Summary
Result Summary $ REVENUE $ EBITDA $ NET PROFIT 1,924.4m 149.2m 89.6m 36.0% 2.1% 8.5% GROUP OPERATING REVENUE GROUP EBITDA GROUP NET PROFIT AFTER ABNORMAL ITEMS
Slide 3: Full Year Analysis: Revenue
Full Year Analysis: Revenue $000 THIS YEAR] LASTYEAR]| VARIANCE New Zealand: NZ$ 505,189 473,870 6.6% ® Australia: AUS 458,473 433,229 5.8% *® USA: USS 363,565 357,487 1.7% *® Asia: USS 37,704 29,900 26.1% Europe: EU€ 250,721 244,740 2.4% Total Group: NZS 1,924,407 1,885,672 (excl FX) 4.8% Lith
Slide 4: Full Year Analysis: EBITDA
Full Year Analysis: EBITDA Note – Europe saw significant improvement in EBITDA in the second half, of 18%
Slide 5: Balance Sheet Summary
Balance Sheet Summary Total dividend per share increased from 27 cents to 32 cents
Slide 6: Capital Management …
Capital Management … Larapinta QLD
Slide 7: Capital Management: Funding
Capital Management … FUNDING Debt Restructure and Refinancing Four banks vs two: CBA Westpac HSBC BTMU (Bank of Tokyo‐Mitsubishi) Debt facilities to $450m from $390m Five year term (evergreen) Interest cover 17 x
Slide 8: New Zealand
New Zealand 2014: $505.2m 2014: $67.4m REVENUE EBITDA 2013: $473.9m 2013: $60.0m Domestic Transport volumes up, despite rail/ferry disruptions FMCG sector, hardware and building‐related tonnage Logistics division improved warehouse utilisation New warehouses in Auckland and Christchurch to a
Slide 9: New Zealand Building Projects
New Zealand Building Projects Christchurch Rebuild – Freight site due for completion September 2014; full site May 2015
Slide 10: New Zealand Building Projects
New Zealand Building Projects Westney Road – New Warehouse – due for completion April 2015 providing Ambient/Chilled food‐grade capability
Slide 11: New Zealand Building Projects
New Zealand Building Projects Hamilton New Build – due for completion May 2015
Slide 12: New Zealand Outlook
New Zealand Outlook Expect improving performance Entry into new grocery supply chain for chilled/ambient food groups Logistics will face increased costs of new facilities Air & Ocean growth, particularly inbound from Asia
Slide 13: Australia (AU$)
Australia (AU$) 2014: $458.5m 2014: $35.2m REVENUE EBITDA 2013: $433.2m 2013: $30.5m Reasonable performance across all divisions Domestic Transport removed parcel freight Parcels created inefficiencies for network and margins Chemcouriers business is growing – a key differentiator Logistic
Slide 14: Australia Building Projects
Australia Building Projects Prestons, Sydney – Extension – Complete
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Slide 16: Australia Building Projects
Australia Building Projects Larapinta, Brisbane – New Build – Complete May 2014
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Slide 19: Australia Building Projects
Australia Building Projects EPPING (New Site) CLAYTON (Current Site) DISTANCE FROM MELBOURNE CBD: Epping – 20km DANDENONG SOUTH Clayton – 21km (Proposed Site) Dandenong South – 35km Melbourne – Land purchase in Epping; a second site required
Slide 20: Australia Outlook
Australia Outlook Increased sales activity Building costs will impact first half results for Logistics and Transport Stronger emphasis on quality throughout the business Air & Ocean growth; market share improving, Perishable capability Expecting strong long‐term growth; infrastructure inve
Slide 21: The Americas (US$)
The Americas (US$) 2014: $363.6m 2014: $18.9m REVENUE EBITDA 2013: $357.5m 2013: $16.9m Sales revenue increase disappointed Ocean freight rate fluctuations Domestic sales performance poor CaroTrans improved margins Better container utilisation Improved linehaul negotiation Growth of im
Slide 22: The Americas … continued
The Americas … continued Western Europe a priority for CaroTrans Capability to drive growth from EU Mainfreight Domestic performance less than satisfactory Improved in the last quarter of FY14 Introducing greater volumes of LTL (everyday freight) Commitment to more direct linehaul 3PL
Slide 23: The Americas – Capital Expenditure
The Americas – Capital Expenditure No property expenditure planned for 2015 financial year All premises are currently leased As growth continues, our “owned” property strategy will become clearer
Slide 24: America – Operations
America – Operations
Slide 25: America – Operations
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Slide 26: America – Operations
America – Operations
Slide 27: The Americas Outlook
The Americas Outlook Mainfreight USA sales growth improving MAINFREIGHT Entry into 3PL warehousing to bolster supply chain activity and opportunity Expect Air & Ocean business to grow substantially targeting European and Asian trade lanes CaroTrans expect similar year on year returns CAROTRA
Slide 28: Europe (EU€)
Europe (EU€ ) 2014: €250.7m 2014: €8.9m REVENUE EBITDA 2013: €244.7m 2013: €9.5m Full year sales revenue up 2.4%; EBITDA disappointed Second half of the financial year better; EBITDA up 17.9% year on year Domestic Forwarding growth inhibited by Belgian performance; closure of Antwerp branch wi
Slide 29: Europe – Capital
Europe – Capital €51.8m Total Europe Land & Buildings (Owned)
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Slide 33: Europe Outlook
Europe Outlook Improvement from Europe in the medium to long term Belgium cost‐out initiatives improving Forwarding results Pan‐European sales activity already showing in early FY15 results Air & Ocean growth, and expect profitability this year Opened in Germany for USA and Asia trade Lo
Slide 34: Asia (US$)
Asia (US$) 2014: $37.7m 2014: $3.5m REVENUE EBITDA 2013: $29.9m 2013: $2.6m Network expansion: first branch opened in Thailand, and development in Taiwan Trade lane growth to and from USA Primarily Air & Ocean focused No direct domestic or warehousing (third‐party relationships) Focus to g
Slide 35: Asia Outlook
Asia Outlook Expect strong growth to continue Asia / Europe trade lane growth a key focus Southeast Asia network development a priority Regional management structure Vietnam, Malaysia and Philippines under consideration
Slide 36: Global Trade Network
Global Trade Network
Slide 37: Global Network Growth Strategy
Global Network Growth Strategy Air & Ocean business offers greatest potential for growth Preference is given to trading within the Group rather than through agencies Strengthens network Improves ability to negotiate Profit retained within the Group Developing our Perishable airfreight ne
Slide 38: Technology
Technology Continuing investment in Technology Delivers ongoing efficiency and productivity gains Provides customers with transparency across the full supply chain Ensures competitive advantage Spend in 2014 year of $11.5m included All Air & Ocean divisions on common database platform
Slide 39: Our People
Our People Our greatest asset; our culture recognises this, ensuring leaders for the future Targeted recruitment Training Promotion from within Our team of 5,771 people in 233 branches around the world are expected to take on as much responsibility as possible
Slide 40: Leadership Team Experience, Passion, Dedication
Leadership Team Experience, Passion, Dedication Rodd Morgan, Australia Craig Evans & Carl George New Zealand Mark Newman, Europe NZ = 1,864 People AU = 1,247 People EU = 1,823 People
Slide 41: Leadership Team Experience, Passion, Dedication
Leadership Team Experience, Passion, Dedication Greg Howard, CaroTrans Michael Lofaro, Asia John Hepworth, USA AS = 242 People US = 595 People
Slide 42: Leadership Team Experience, Passion, Dedication
Leadership Team Experience, Passion, Dedication Martin Devereux, Team Kevin Drinkwater, IT Tim Williams, CFO IT team: 74 Training team: 33 Smallest accounting team ever!
Slide 43: A Little Bit of Culture
A Little Bit of Culture “The Way we Do Things Around Here” We aspire to be a 100‐year Company, and this drives our decisions We seek to delight our customers Under‐promise and over‐deliver Quality focus and measurement, set high standards and beat them “Easy to Do Business With”
Slide 44: A Little Bit of Culture …
A Little Bit of Culture … Our people are key Training and development Promotion from within to maintain our culture and key to retaining our people Profit sharing; profit comes from hard work, not talk Bureaucracy, hierarchy and superiority not tolerated Morale is the catalyst for our cu
Slide 45: Group Outlook
Group Outlook Expect all regions to out‐perform last year SHORT‐TERM Trading in first 3 months – good improvement on prior year’s low base All regions EBITDA up on prior year; 10+% overall Our challenge is to carry this improvement across the full year Capex for New Zealand/Australia of $1
Slide 46: Group Outlook
Group Outlook Expect Asia, USA and Europe to provide significant MEDIUM TO LONG‐TERM growth Air & Ocean to play a bigger role Australia will exceed New Zealand earnings
Slide 47: To Close
To Close We have ambitions to be in every major trading nation of the world New Zealand, and now Australia, providing useful profit capability to assist our off‐shore growth High quality freight services delivered by a team of passionate, energetic, intelligent people who forge long‐term caree
Slide 48: We Will Continue to Seek Growth and Excellence
WE WILL CONTINUE TO SEEK GROWTH AND EXCELLENCE; AND PROFIT WILL COME BRUCE PLESTED, Executive Chairman