Freightways Group Limited · NZX:FRW
Freightways — Shareholder Meeting (October 2021)
39 slides from Freightways's shareholder meeting presentation, Oct 28, 2021
Slide 1: We move you to a better place
We move you to a better place. Freightways Annual Shareholders Meeting Presentation 28 October 2021 NZX : FRE
Slide 2: Chairman's Introduction
Chairman’s Introduction 2
Slide 3: Shareholder and Proxyholder Q&A Participation
Shareholder and Proxyholder Q&A Participation How to submit QUESTIONS ▪ Questions may be submitted ahead of the meeting. If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime. Type your question into the field and press submit
Slide 4: Shareholder and Proxyholder Voting
Shareholder and Proxyholder Voting How to VOTE ▪ Once the voting has been opened, the resolutions and voting options will allow voting. ▪ To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen. You can vote for all resolutions at once or by each
Slide 5: 2021 Annual Shareholders Meeting Agenda
2021 ANNUAL SHAREHOLDERS MEETING AGENDA 1. Chairman’s introduction 2. CEO’s review & trading update 3. Voting and questions 4. Six Resolutions 5
Slide 6: Directors and Management
Directors and Management Mark Verbiest Abby Foote Fiona Oliver Kim Ellis Mark Cairns Chairman Director Director Director Director Mark Rushworth Peter Kean Mark Troughear Stephan Deschamps Director Director Chief Executive Chief Financial Officer 6
Slide 7: FY21 Highlights
FY21 Highlights $800.5m Revenue $130.5m EBITA grew $72.7m NPAT grew grew 27% 33.5% (i) 29.7% (ii) NOTES i. Operating profit before interest, tax and amortisation, before change in fair value of contingent consideration – BCD and other income & expenses. ii. Net profit after tax (NPAT), before change
Slide 8: FY21 Highlights
FY21 Highlights Pricing for Effort up Average Courier 4.8% reduction in On target to reduce $0.71c remuneration injuries fossil-based virgin improved by 8% plastic use by 70% Express Package 32 new business Developed a science- DIFOT (delivery in B2B and B2C ideas assessed based target full on time)
Slide 9: Capital Management Policy
Capital Management Policy Capital Management Principles Dividend Policy Targeting solid Investment Grade credit profile, at a level that Dividend Policy aligned with Capital Management minimises the cost of capital. Range of Net Debt / EBITDA Policy, balancing a number of objectives: between 2x and
Slide 10: CEO's Trading Update
CEO’s Trading Update 10
Slide 11: The Freightways Blueprint
The Freightways Blueprint 11
Slide 12: Strategy
Strategy ▪ Ensure we are pricing our services reflective of the effort required – to generate a return and remunerate our contractors well. Our focus remains on PFE for local, residential and large freight over the coming year. ▪ Enable SME eCommerce businesses by providing a suite of tools and serv
Slide 13: Strategy: ProducePronto and SaveBoard
Strategy ProducePronto ▪ Ownership from November 1, 2021 ▪ Complementary to Big Chill ▪ Same day express delivery of fresh and frozen food to businesses and convenience food outlets ▪ Growth pathway will leverage Big Chill and EP assets ▪ $10m purchase price with potential earn-out of up to $4m over
Slide 14: SDG Update
SDG Update Key areas of focus; ▪ Health and safety in employment – injury reduction ▪ Providing opportunities for career advancement and earnings improvement for our staff and contractors ▪ Development of new adjacent business services which grow our revenues and provide opportunities for our people
Slide 15: Q1 Trading Update
Q1 TRADING UPDATE 15
Slide 16: EP Item Growth YoY
EP Item Growth YoY (Network couriers only) 40% Alert Level 4, 2021 30% 20% 10% 0% Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Jul Aug Sep Oct -10% -20% -30% -40% 2021 v 2020 2021 v 2019 16
Slide 17: EP B2C Growth YoY
EP B2C Growth YoY (Network couriers only) 140% Alert Level 4, 2021 120% 100% 80% 60% 40% 20% 0% Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Jul Aug Sep Oct -20% -40% 2021 v 2020 2021 v 2019 17
Slide 18: Q1 Consolidated Performance
Q1 Consolidated Performance UNAUDITED Q1 FY22 Q1 FY21 Change Note $m $m % Operating Revenue 203.1 211.7 (4.1) EBITDA (i) 45.5 49.4 (7.9) EBITA (ii) 31.6 34.8 (9.2) NPATA (iii) 19.9 21.1 (5.7) NPAT (iv) 18.1 19.2 (5.7) ▪ Freightways uses a 4-4-5 weeks accounting calendar. In the first quarter of FY21
Slide 19: Q1 Express Package & Business Mail
Q1 Express Package & Business Mail UNAUDITED AND EXCLUDES LEASE ACCOUNTING Q1 FY22 Q1 FY21 Change $m $m % Operating Revenue 160.5 168.4 (4.7) EBITDA 28.0 30.2 (7.3) EBITA 25.1 27.3 (8.1) EBITA Margin 15.6% 16.2% ▪ Freightways uses a 4-4-5 weeks accounting calendar. In the first quarter of FY21, ther
Slide 20: Q1 Information Management
Q1 Information Management UNAUDITED AND EXCLUDES LEASE ACCOUNTING Q1 FY22 Q1 FY21 Change $m $m % Operating Revenue 43.0 43.8 (1.8) EBITDA 9.0 9.9 (9.1) EBITA 7.1 7.9 (10.1) EBITA Margin 16.5% 18.1% • Freightways uses a 4-4-5 weeks accounting calendar. In the first quarter of FY21, there was one extr
Slide 21: Outlook
OUTLOOK 21
Slide 22: Outlook
Outlook ▪ While Q1 was affected by the level 4 lockdown in NZ and the continued restrictions on businesses operating in both NZ and Australia we remain confident that we will achieve earnings growth for the company in FY22. ▪ We have been encouraged by the increase in volumes driven by eCommerce act
Slide 23: Resolutions
Resolutions 1. That MARK CAIRNS be elected as a Director of Freightways. 2. That FIONA OLIVER be elected as a Director of Freightways. 3. That ABBY FOOTE be re-elected as a Director of Freightways. 4. That PETER KEAN be re-elected as a Director of Freightways. 5. That the total quantum of the annual
Slide 24: Resolution 1
RESOLUTION 1. > Election of Mark Cairns. 24
Slide 25: Resolution 2
RESOLUTION 2. > Election of Fiona Oliver. 25
Slide 26: Resolution 3
RESOLUTION 3. > Re-election of Abby Foote. 26
Slide 27: Resolution 4
RESOLUTION 4. > Re-election of Peter Kean. 27
Slide 28: Resolutions 5 and 6
Resolutions RESOLUTION 5. That the total quantum of the annual Directors’ fee pool be increased by $161,100 from an aggregate of $696,045 to an aggregate of $857,145, such aggregate amount to be divided amongst the Directors as they deem appropriate. RESOLUTION 6. That the Directors are authorised t
Slide 29: Voting and Questions
VOTING AND QUESTIONS 29
Slide 30: Disclaimer
Disclaimer This presentation has been prepared by Freightways Limited ("Freightways") for information purposes only. This presentation is not a product disclosure statement, prospectus or investment statement. Nothing in this presentation constitutes an invitation to subscribe for shares, securities
Slide 31: skeaysioLy
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Slide 32: Appendix: Reconciliation of GAAP to Pre-NZ IFRS16 – Group
APPENDIX: RECONCILIATION OF GAAP TO PRE-NZ IFRS16 AND OTHER EXPENSES FOR THE YEAR ENDED 30 JUNE 2021 FY21 FY20 Change FREIGHTWAYS GROUP $m $m % Operating Revenue 800.5 630.9 26.9 EBITDA (GAAP) 164.6 135.1 21.8 Add: Change in fair value of contingent consideration – Big Chill 23.0 - Distribution Limi
Slide 33: Appendix: Reconciliation – Express Package & Business Mail
APPENDIX: RECONCILIATION OF GAAP TO PRE-NZ IFRS16 AND OTHER EXPENSES FOR THE YEAR ENDED 30 JUNE 2021 FY21 FY20 Change EXPRESS PACKAGE & BUSINESS MAIL $m $m % Operating Revenue 633.0 474.4 33.4 EBITDA (GAAP) 142.8 98.3 45.3 Add: Other expenses - 3.3 100 EBITDA (before other expenses) 142.8 101.6 40.6
Slide 34: Appendix: Reconciliation – Information Management
APPENDIX: RECONCILIATION OF GAAP TO PRE-NZ IFRS16 AND OTHER EXPENSES FOR THE YEAR ENDED 30 JUNE 2021 FY21 FY20 Change INFORMATION MANAGEMENT $m $m % Operating Revenue 170.7 158.7 7.6 EBITDA (GAAP) 50.8 41.8 21.5 Add: Other expenses - 5.3 100 EBITDA (before other expenses) 50.8 47.1 7.9 Less: NZ IFRS
Slide 35: Financial Summary
Financial Summary FOR THE YEAR ENDED 30 JUNE 2021 FY21 FY20 Change Note $m $m % Revenue 800.5 630.9 26.9 EBITA, before change in fair value of contingent consideration – Big Chill Distribution Limited (BCD) and other income & expenses (non- i. 130.5 97.8 33.4 GAAP) Change in fair value of contingent
Slide 36: Appendix: Q1 FY22 Group Reconciliation
APPENDIX: (UNAUDITED) FREIGHTWAYS Q1 FY22 Q1 FY22 Q1 FY22 Q1 FY21 Q1 FY21 Q1 FY21 GROUP $m $m $m $m $m $m Note Post NZ IFRS16 NZ IFRS16 Pre NZ IFRS16 Post NZ IFRS16 NZ IFRS16 Pre NZ IFRS16 adjustment (non-GAAP) adjustment (non-GAAP) Operating 203.1 - 203.1 211.7 - 211.7 Revenue EBITDA (i) 45.5 (10.4
Slide 37: Appendix: Reconciliation – Express Package & Business Mail Q1
APPENDIX: RECONCILIATION OF PRE-NZ IFRS16 TO POST-NZ IFRS16 (UNAUDITED) Q1 FY22 Q1 FY21 Change EXPRESS PACKAGE & BUSINESS MAIL $m $m % Operating Revenue 160.5 168.4 (4.7) EBITDA (before NZ IFRS16) 28.0 30.2 (7.3) Add: NZ IFRS16 adjustment 6.2 6.6 (6.1) EBITDA (after NZ IFRS16) 34.2 36.9 (7.3) EBITA
Slide 38: Appendix: Reconciliation – Information Management Q1
APPENDIX: RECONCILIATION OF PRE-NZ IFRS16 TO POST-NZ IFRS16 (UNAUDITED) Q1 FY22 Q1 FY21 Change INFORMATION MANAGEMENT $m $m % Operating Revenue 43.0 43.8 (1.8) EBITDA (before NZ IFRS16) 9.0 9.9 (9.1) Add: NZ IFRS16 adjustment 4.2 4.4 (4.5) EBITDA (after NZ IFRS16) 13.2 14.3 (7.7) EBITA (before NZ IF
Slide 39: Thank You
THANKYOU. 39
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