Freightways Group Limited · NZX:FRW
Freightways — Shareholder Meeting (November 2004)
25 slides from Freightways's shareholder meeting presentation, Nov 25, 2004
Slide 1: Annual Shareholders Meeting 25 November 2004
Annual Shareholders Meeting 25 November 2004
Slide 2: Wayne Boyd, Chairman
Wayne Boyd, Chairman
Slide 3: Agenda
Agenda Chairman’s introduction Managing Director’s review and trading update Resolutions
Slide 4: General Highlights
General Highlights • Successful listing on NZX September 2003 • Approximately 7,000 retail and institutional shareholders • 90% of shares held in New Zealand • All subsidiaries have performed very well
Slide 5: Performance vs. IPO Forecast
Performance vs. IPO Forecast Actual IPO Forecast $000 $000 Operating revenue 214,498 207,297 EBITA 40,714 36,118 Cash generated from operations 48,183 39,074 Capital expenditure 4,475 4,988 NPAT 16,137 13,533 Total dividend 15,800 14,000 Cash dividend per share 12.75 cents 11.3 cents
Slide 6: Dean Bracewell, Managing Director Review and Trading Update
Dean Bracewell, Managing Director Review and Trading Update
Slide 7: Managing Director's Presentation
Managing Director’s Presentation Industry overview and business description Business strategy Trading update Outlook
Slide 8: Freightways
Freightways
Slide 9: Express Package Industry
Express Package Industry Overview and Business Description
Slide 10: Express Package Industry
Express Package Industry • Two segments to Express Package industry – Network couriers 90% of industry revenue – Point-to-point couriers 10% • Services embedded in supply chains of businesses • Consolidated industry structure • Growth underpinned by demand for Just in Time supply
Slide 11: Business Description - Strengths
Business Description - Strengths • Experienced people • Network of independent contractors • Operational excellence and profit culture • Dedicated express package linehaul network • Established multi-brand strategy
Slide 12: Multi-Brand Strategy
Multi-Brand Strategy Three major brands: Freightways’ Network Courier Brands Price – Differentiated by price and service – Captures growth across Service entire market – Provides defence against competitive threats
Slide 13: Information Management and Business Mail
Information Management and Business Mail Industry Overview and Business Description
Slide 14: Information Management
Information Management • Total information management solution • Records management growth opportunity • Integrated with Freightways express package operations
Slide 15: Business Mail
Business Mail • Niche player in deregulated postal services industry • Growth opportunities in business mail segment • Integrated with Freightways express package operations
Slide 16: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 17: Strategy
Strategy • Continued development of growth opportunities in Freightways’ existing three core markets • Positioning, People, Performance, Profit • Explore incremental and complementary growth opportunities • Invest in IT and infrastructure
Slide 18: Trading Update
Trading Update
Slide 19: Operating Revenue
Operating Revenue 250 200 150 $M 2nd Half 100 1st Half 50 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Year Ended • 10% revenue growth in 2004 • 5 year compound average revenue growth of 7%
Slide 20: EBITA
EBITA 45 40 35 30 25 2nd Half $M 20 1st Half 15 10 5 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Year Ended • 27% EBITA growth in 2004 • 5 year compound average EBITA growth of 18%
Slide 21: Current Financial Performance
Current Financial Performance Oct. 2004 Oct. 2003 variance $000 $000 % Operating revenue 74,788 67,105 11% EBITDA 16,977 13,390 27% EBITA 15,517 11,736 32% NPAT 6,496 4,579 42% NB: October YTD numbers are drawn from management accounts and are unaudited
Slide 22: Outlook
Outlook
Slide 23: Outlook
Outlook • Economy remains favourable from Freightways’ perspective • No material change expected to Freightways’ operating environment • Consistent application of proven market strategies • Business as usual
Slide 24: Summary
Summary Strong successful business Positioned to deliver continuing earnings growth Delivering an attractive dividend yield
Slide 25: Resolutions
Resolutions Re-election of Directors Authority to fix Auditors’ remuneration Adopt new constitution (special resolution)
Freightways Group — Shareholder Meeting (November 2004) on 6ix