Mainfreight Limited · NZX:MFT
Mainfreight — H1 FY2014 Earnings Presentation
16 slides from Mainfreight's earnings presentation, November 2013
Slide 1: Mainfreight Limited Half Year Result to September 2013
MAINFREIGHT LIMITED HALF YEAR RESULT TO SEPTEMBER 2013
Slide 2: Result Summary
Result Summary Revenue up 1.7% to $952.70 million (excluding FX, up 4.0%) Steady growth in New Zealand, Australia and Asia Disappointing result from USA and Europe EBITDA $63.30 million, up 3.7% (excluding FX, up 6.1%) Net surplus before abnormal items $29.87 million, up 7.7% Abnormals t
Slide 3: Cash Flow
Cash Flow NZ$ million This Year Last Year Operating cash flow 42.67 31.28 Total capex $29.17 million, of which property development accounted for $20.37 million
Slide 4: Half Year Analysis: Revenue
Half Year Analysis: Revenue $000 This Year Last Year Variance New Zealand: NZ$ 243,147 228,289 6.5% Ï Australia: AU$ 224,246 209,418 7.1% Ï Asia: US$ 18,532 14,749 25.6% Ï USA: US$ 178,119 182,044 2.2% Ð Europe: EU€ 124,748 122,356 2.0% Ï Total Group: NZ$ 952,699 936,371 1.7% Ï Excluding FX, Group R
Slide 5: Half Year Analysis: EBITDA
Half Year Analysis: EBITDA $000 This Year Last Year Variance New Zealand: NZ$ 27,655 24,186 14.3% Ï Australia: AU$ 14,081 13,023 8.1% Ï Asia: US$ 1,820 1,373 32.6% Ï USA: US$ 8,403 8,123 3.5% Ï Europe: EU€ 3,968 5,255 24.5% Ð Total Group: NZ$ 63,302 61,061 3.7% Ï Excluding FX, Group EBITDA up 6.1%
Slide 6: New Zealand
New Zealand EBITDA and Revenue improvement across all divisions Domestic freight volumes continue to strengthen Expect strong Christmas volume increases Rate review successful Interislander ferry disruption; expecting KiwiRail to assist via other modes although slower transit times expecte
Slide 7: New Zealand …
New Zealand … Air & Ocean continuing to gain market share FCL volumes down Growth in LCL, Air‐freight and Import volumes in particular October/November trading up 9.6% EBITDA
Slide 8: Australia
Australia EBITDA and Revenue improvement dominated by Air & Ocean and Logistics Domestic Transport revenue and EBITDA at prior comparable period levels, as effects of parcel freight were addressed Parcel removal saw loss of annualised revenues of AU$10 million (from June 2013 onwards) Improv
Slide 9: Australia …
Australia … Logistics business – additional costs in September due to new customers and warehousing changes Profitability continuing to improve New warehouse sites in Brisbane and Sydney will assist growth aspirations/requirements Air & Ocean – growth as Asian seafreight rates hold steady
Slide 10: Asia
Asia Better than expected result from Asia Good growth in both Air and Sea Imports Gross margins much improved Taiwan contributing satisfactorily All branches ahead of prior year Expect more growth from in‐country sales as new sales teams become effective European trade lanes are a key
Slide 11: Americas
Americas CaroTrans contributing to EBITDA performance Low Export FCL volume affecting revenue Strong margins for LCL container utilisation assisting profitability Import volumes up in both FCL and LCL; now at 14% of total revenue
Slide 12: Americas …
Americas … Mainfreight Domestic and Air & Ocean revenues flat Gross margins improved in both products Overhead cost structures increased, new branch development Initiatives in place to better manage cost structures Stronger sales focus required for both Domestic and Air & Ocean Sales t
Slide 13: Europe
Europe Disappointing result as competitive landscape and economic slowdown inhibit growth/recovery Retention of customers is key Revenue growth has occurred in Logistics and Air & Ocean; up 14.8% and 8.6% respectively. Forwarding down 3.5% Overhead cost structures up in Logistics as new cust
Slide 14: Europe …
Europe … New Forwarding technology implementation in F15 Will intensify Dutch domestic network for more efficiencies Belgium restructure seeing improved returns Less people from April 2014 One less facility (Wommelgem) Consolidation of Ostend site from two facilities to one Consolidati
Slide 15: Outlook
Outlook October and November (one week) sees EBITDA and revenue growth for New Zealand, Australia, Asia and CaroTrans USA Europe and Mainfreight USA still flat performance Expect Mainfreight USA to have stronger fourth quarter European initiatives will take longer to positively impact the P&
Slide 16: Financial Calendar F14/F15
Financial Calendar F14/F15 Release Date F14 – 12 months ended 31 March 2014 28 May 2014 Annual Meeting of Shareholders 30 July 2014 F15 – 6 months ended 30 September 2014 11 November 2014