Mainfreight Limited · NZX:MFT
Mainfreight — H1 FY2013 Earnings Presentation
15 slides from Mainfreight's earnings presentation, September 2012
Slide 1: Mainfreight Limited Half Year Result to September 2012
MAINFREIGHT LIMITED HALF YEAR RESULT TO SEPTEMBER 2012
Slide 2: Half year result highlights
Revenue up 7% to $936.37 million (excluding FX) Excluding E l di Europe, E revenue improved i d 9.5% 9 5% (excluding ( l di FX) EBITDA down 4% to $61.06 million (excluding FX) Excluding Europe, Europe $52.74 $52 74 million, million up 15% Net surplus $27.74 million, down 5% European E re
Slide 3: Operating cash flow and capex expectations
NZ$ million This Year Last Year Operating cash flow 31.3 31.9 Operating p g cash flow reflects profit p reduction Capex expectations: F13 F14 Property $45 million $67 million Other $20 million $20 million
Slide 4: Capex by property and region
NZ$000 F13 F14 NZ Property Palmerston North Terminal 8 500 8,500 Invercargill Terminal 6,900 Christchurch Terminal 5,000 25,000 Sundry Other 4,500 500 Properties for Sale (16,400) Hamilton Land 11,500 24,900 20,600 AU Property Brisbane Buildings 12,700 31,000 Adelaide Purchase 5,500 Melbourne Land 1
Slide 5: Revenue by region
$000 Thi Year This Y L t Year Last Y V i Variance New Zealand: NZ$ 228,289 215,512 6% Ï Australia: AU$ 209 418 209,418 184 852 184,852 13% Ï USA: US$ 182,044 165,145 10% Ï Asia: US$ 14,749 15,396 4% Ð Europe: EU€ 122,356 124,065 1.5% Ð Total Group: NZ$ 936,371 892,898 7% Ï
Slide 6: EBITDA by region
$000 Thi Year This Y L t Year Last Y V i Variance New Zealand: NZ$ 24,186 22,246 9% Ï Australia: AU$ 13 023 13,023 10 674 10,674 22% Ï USA: US$ 8,123 6,845 19% Ï Asia: US$ 1,373 1,152 19% Ï Europe: EU€ 5,255 10,588 50% Ð Total Group: NZ$ 61,061 64,369 4% Ð
Slide 7: New Zealand operations
Revenue growthh across bbothh ddivisions ((Domestic/Logistics / and d Air & Ocean)) EBITDA performance positive in both divisions Domestic rate review effective 1 October is benefiting November weekly results New Invercargill branch operational; November Palmerston North branch; January 20
Slide 8: Australia operations
Domestic market k share h gains continue to assist growth h Pace of revenue growth has some negative gross margin impact Cost structures increasing as labour and additional facilities (Brisbane and Melbourne) needed to cope with volumes Adelaide building improvements complete; Brisbane’s Bri
Slide 9: USA operations
Overallll resultl satisfactory; f continues to be b driven d by b Mainfreight f h improvement – second quarter flatter than expected, Oct/Nov MF USA stronger Mainfreight seeing good Air & Ocean division growth – now almost 50/50 split with Domestic New branches for Mainfreight in Toronto and P
Slide 10: Asia operations
Result R lt lacks l k punchh In‐country revenue down 4%; lack of peak season volumes Inter‐company p y revenue upp 64% to US$13.2 $ million EBITDA up 19% principally due to strong inter‐company trading (Mainfreight network) European trade lane development remains a high priority; only 30%
Slide 11: Europe operations
Replacement l revenue gained d across Dutch h Transport, Logistics and d Air & Ocean divisions Gross G margins i impacted i d in i warehousing h i and d forwarding f di as competition ii intensifies Air Ai & Ocean O revenue gains i predominantly d i tl USA traffic; t ffi A Asian i volumes l st
Slide 12: Europe outlook and management structure
Eastern Europe / Russia – opportunities beginning b to contribute b to revenue/EBITDA Second S d half h lf trading di expected d to b be ahead h d off llast year – slight li h improvements seen in October/November Divisional Di i i l managementt structure/reporting t t / ti changes h iin place
Slide 13: Board appointment: Simon Cotter
Simon Cotter, agedd 45 Director of Grant Samuel & Associates Advised Mainfreight on M&A activity since 2003 (Owens acquisition) Strong financial and analytical skills to complement current Board Board will comprise 7 Directors 2 executive, 5 non‐executive (of whom 4 are independent) Br
Slide 14: Current trading and outlook
October/November b / b trading d ahead h d off prior year in allll regions Strong sales activities assisting market share gains in all countries Country management structure focusing on global network expansion and productivity within the network Focus on developing stronger growth across Ai
Slide 15: Release dates
Release l Date F13 – 12 months ended 31 March 2013 29 May 2013 Annual Meeting of Shareholders 31 July 2013 F14 – 6 months ended 30 September 2013 12 November 2013