Slide 1: Freightways Half Year Presentation
Freightways Half Year Presentation 13 February 2012
Slide 2: This presentation relates to the Freightways Limited NZX announcement and media release of 13
This presentation relates to the Freightways Limited NZX announcement and media release of 13 February 2012 As such, it should be read in conjunction with, and is subject to, the explanations and views contained in those releases This half year result is drawn from unaudited financial statements pre
Slide 3: Agenda
Agenda • 2012 Half Year Highlights • Operating Performance • Business Strategy • Outlook 1
Slide 4: 2012 Half Year Highlights
2012 Half Year Highlights
Slide 5: General Highlights
General Highlights • Positive financial performance above prior year in all respects • Recent acquisitions have added further depth to FRE’s presence in the Australasian IM market • Reduced funding costs following re-negotiation of finance facilities • Successful execution of growth strategies in bo
Slide 6: Financial Highlights
Financial Highlights Dec-11 Dec-10 Variance $M $M % Operating Revenue 192.2 176.2 9% EBITDA* 36.3 33.5 8% EBITA* 31.3 28.7 9% NPAT* 18.3 15.8 16% * Dec-11 excludes non-recurring earthquake insurance proceeds received of $1m ($0.7m after tax) 1
Slide 7: Operating Performance
Operating Performance
Slide 8: Operating Revenue
Operating Revenue 400 350 300 $M 250 200 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Ended 30 June 2nd Half • 9% higher revenue compared to PCP 1st Half • 10-year compound average annual revenue growth of 7%
Slide 9: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 210 200 2.7% - 1.7% 192 190 4.7% 176 $M 180 170 160 150 2011 Volume Pricing Net new business Acquisition 2012 Growth Drivers 1
Slide 10: EBITA*
EBITA* 70 60 50 $M 40 30 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Ended 30 June 2nd Half 1st Half • 9% higher EBITA compared to PCP • 10-year compound average annual EBITA growth of 8% *HY 2012 excludes non-recurring earthquake insurance proceeds of $1m (FY2
Slide 11: Business Segments Operating Performance
Business Segments Operating Performance (Half year to 31 December 2011) REVENUE EBITA 78% 78% 22% 22% Express Package & Business Mail Information Management 1
Slide 12: Express Package & Business Mail
Express Package & Business Mail Dec-11 Dec-10 Variance $M $M % Operating revenue 149.4 140.3 6% EBITDA 27.9 25.7 9% EBITA 25.5 23.4 9% EBITA Margin 17% 17% 1
Slide 13: Information Management
Information Management Dec-11 Dec-10 Variance $M $M % Operating revenue 43.6 36.5 19% EBITDA 9.2 8.4 10% EBITA 7.2 6.6 9% EBITA Margin 17% 18% 1
Slide 14: Balance Sheet – Key Points
Balance Sheet – Key Points • Total Assets and Total Liabilities have increased since FY11 by $32m and $28m, respectively, primarily as a result of acquisition payments of $21m and capital expenditure of $7m • Bank borrowings have increased since FY11 by NZD10m and AUD6m; largely to fund acquisitions
Slide 15: Cash Flow – Key Points
Cash Flow – Key Points • Cash inflows from operating activities - $5m up on PCP due to improved trading performance • Cash outflows from investing activities - $20m higher than PCP as a consequence of acquisitions completed during the period • Cash inflows from financing activities – higher by $18m
Slide 16: Subsequent Event – Interim Dividend
Subsequent Event – Interim Dividend • Interim dividend: 8.5 cps • Imputation credits: 3.64 cps • Supplementary dividend: 1.5 cps • Record date: 16 March 2012 • Payment date: 30 March 2012 • No DRP offered in respect of the 2012 Interim Dividend 1
Slide 17: Finance facilities renewal
Finance facilities renewal • Multi-currency facilities: NZD110m & AUD70m • Syndication: Existing 3 banks continue as lenders • Effective date: 1 September 2011 • Maturity profile: Spread evenly across 3, 4 and 5 year tranches • Pricing: Improved by 110 points • Banking covenants: Unchanged 1
Slide 18: Business Strategy
Business Strategy
Slide 19: Business Strategy
Business Strategy • Develop organic growth opportunities • Diversification: Industry and Geography • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 20: Express Package & Business Mail
Express Package & Business Mail Network Courier Point-to-Point Business Mail Support 1
Slide 21: Information Management
Information Management New Zealand Australia Document Storage Data Storage Document Destruction
Slide 22: Capital Expenditure
Capital Expenditure 2012 2012 Half Year Full Year Actual Forecast Capital expenditure $7m $20m Depreciation $5m $11m
Slide 23: Outlook
Outlook Freightways
Slide 24: Outlook
Outlook • Continued gradual improvement in markets FRE operates in • If EP&BM growth from existing customers can be maintained, earnings improvement is expected to be sustained • IM transitioning through a period of significant capacity investment and expected to deliver sound year-on-year earnings
Slide 25: Conclusion
Conclusion
Slide 26: Conclusion
Conclusion • FRE has delivered a strong half year result that is above the prior year in all respects • This result again demonstrates the resilience of FRE, the positive features of the markets it operates in and the high quality of its subsidiary businesses and teams of people • Subject to busines