Qube Holdings Ltd. · ASX:QUB
Qube — FY2021 Earnings Presentation
40 slides from Qube's earnings presentation, Aug 26, 2021
Slide 1: Investor Presentation – FY21 Final Results
26 August 2021 ASX Announcement Investor Presentation – FY21 Final Results Attached is Qube's Investor Presentation for the year ended 30 June 2021. Authorised for release by: The Board of Directors, Qube Holdings Limited For further information, please contact: Media: Analysts / Investors: Paul Whi
Slide 2: Qube Holdings Limited Investor Presentation FY21 Full Year Results
QUBE HOLDINGS LIMITED Investor Presentation FY 21 Full Year Results
Slide 3: Disclaimer – Important Notice
Disclaimer – Important Notice The information contained in this Presentation or subsequently provided to the recipient whether orally or in writing by, or on behalf of Qube Holdings Limited (Qube) or any of its directors, officers, employees, agents, representatives and advisers (the Parties) is pro
Slide 4: Table of contents
Table of contents 1. FY 21 Full Year Highlights 2. Key Financial Information 3. Moorebank Monetisation Process Update 4. Qube Post-Monetisation 5. FY 22 Outlook 6. Additional Financial Information (Appendices) 3
Slide 5: FY 21 Full Year Highlights
FY 21 Full Year Highlights Very pleasing financial and safety performance Full year in review Key financial metrics • Strong financial performance with record underlying earnings (NPATA) for Qube +14.5% Statutory revenue +7.9% Underlying revenue • Reflects growth across most of Qube’s key markets an
Slide 6: Ongoing improvement in Safety and Health outcomes
FY 21 Full Year Highlights Ongoing improvement in Safety and Health outcomes Safety and Health Total Recordable Injury Frequency Rate Critical Incident Frequency Rate Health and Wellbeing (TRIFR)* (CIFR)** 20 • Successful programs implemented for Mental Health, Diversity and 16.2 4 3.2 Wellbeing 15
Slide 7: Improved sustainability performance
FY 21 Full Year Highlights Improved sustainability performance Sustainability and Environment • In FY 21, Qube has improved its sustainability performance, including achieving the following outcomes: o Net emissions were steady in FY 21 as compared to FY 20 despite underlying revenue increasing duri
Slide 8: Record underlying NPATA achieved
FY 21 Full Year Highlights Record underlying NPATA achieved Underlying NPATA (+31.7%) • Record underlying earnings (NPATA) delivered by Qube in FY 21 despite ongoing COVID-19 challenges and some impact from Chinese trade 159.6 sanctions 165 (2.7) (3.9) 10.0 • Materially higher contribution from the
Slide 9: Reflecting high volumes across most of Qube's core markets
FY 21 Full Year Highlights Reflecting high volumes across most of Qube’s core markets 12-month rolling container trade growth (TEU) at 4 ports Exports of Australian grains New vehicle sales in Australia 12% 35,000 +43.8% vs +135.3% vs FY 18 :+8.3% Volume growth vs pcp FY 21 :11.4% pcp pcp 1,400 10%
Slide 10: Focus on Technology and Innovation
FY 21 Full Year Highlights Focus on Technology and Innovation Technology and Innovation • Qube has a demonstrable track record over many years of investing in and leveraging technology to deliver innovative, reliable and safe logistics supply chain solutions to its customers • Qube’s Group Innovatio
Slide 11: Indicative Revenue Segmentation – Operating Division (by region)
FY 21 Full Year Highlights Indicative Revenue Segmentation – Operating Division (by region) Operating division revenue by region FY21 FY20 Others* 2.2% Others* 1.6% NZ 8.0% NZ 6.1% NT 1.1% NT 1.9% QLD 21.9% SA 5.4% QLD 23.9% SA 5.2% WA 27.5% WA 27.8% NSW 18.4% NSW 17.0% TAS 1.7% VIC 13.0% TAS 2.4% V
Slide 12: Indicative Revenue Segmentation – Logistics
FY 21 Full Year Highlights Indicative Revenue Segmentation – Logistics Logistics revenue by region • Key positive contributors to the Logistics revenue and FY21 FY20 geographical/industry mix included: SA Global Forwarding SA Global Forwarding 8.0% 1.6% 8.8% 1.7% o Increased revenue contribution fro
Slide 13: Indicative Revenue Segmentation – Ports & Bulk
FY 21 Full Year Highlights Indicative Revenue Segmentation – Ports & Bulk Ports & Bulk revenue by region • Key positive contributors to the Ports & Bulk include: FY21 South East Asia o Revenue growth in New Zealand reflecting high volumes and FY20 NZ South East Asia benefit from current and prior ye
Slide 14: Property Division
FY 21 Full Year Highlights Property Division MLP - Property MLP - Terminals Development IMEX Terminal • Precinct infrastructure on Moorebank Precinct East (MPE) was largely completed and precinct infrastructure on Moorebank Precinct West (MPW) has progressed • The IMEX Terminal has been operating in
Slide 15: Patrick – Financial Highlights
FY 21 Full Year Highlights Patrick – Financial Highlights Distributions to Qube of $120 million • Strong increase in underlying earnings contribution to Qube was underpinned by volume growth, improved Qube’s share of Dividend $34.2m volume mix, continued diversification of the revenue streams and so
Slide 16: Patrick – Operational Highlights
FY 21 Full Year Highlights Patrick – Operational Highlights • Performance improvement across terminals – Crane productivity improved in East Swanson Dock and Fisherman Island, despite disruption from industrial action • New cranes – Two Liebherr cranes were successfully delivered in Port Botany and
Slide 17: Qube Statutory Results
Key Financial Information Qube Statutory Results FY 21 FY 21 FY 20 (excluding (including (including Discontinued discontinued discontinued discontinued Change (%) operations* operations) operations) operations) ($m) ($m) ($m) Revenue 1,962.9 214.5 2,177.4 1,902.0 14.5% EBITDA 181.3 199.2 380.5 429.5
Slide 18: Qube Underlying Results
Key Financial Information Qube Underlying Results Underlying earnings exclude the following key items which have been FY 21* FY 20* included in statutory earnings: Change (%) ($m) ($m) • Net fair value gains of $202.1 million (pre-tax) relating to Qube’s investment properties in Moorebank ($195.6 mi
Slide 19: Capital Expenditure
Key Financial Information Capital Expenditure FY 21 capex overview • Total gross capex of $673.8 million and net capex of around $461.4 million* in the period, including the following items: o Capex associated with contract wins (BlueScope (due to start in Jan-22), BHP Nickel West and Salt Lake Pota
Slide 20: Capital Expenditure – Acquisitions
Key Financial Information Capital Expenditure – Acquisitions Acquisitions expanding Qube’s capabilities Acquisitions expanding Qube’s capabilities and geographical presence Agrigrain (Sep-20) – Logistics Les Walkden (Mar-21) – Ports • Acquisition of grain storage and handling equipment and • The bus
Slide 21: Balance Sheet & Funding
Key Financial Information Balance Sheet & Funding Key metrics Debt facilities maturity profile at 30 June 2021 Weighted average 1,400 Cash and maturity of 3.0 years Net assets Net Debt* Leverage 1,200 attributable to Undrawn Debt 1,000 at 30 June 2021 ratio*** $ million 800 675 Qube Facilities** 600
Slide 22: Cashflow
Key Financial Information Cashflow Change in Net Borrowings for Twelve Months to 30 June 2021 1,600 1,388.4 1,400 35.4 47.0 1,193.3 54.5 Sub Note 1,200 37.1 305.0 Sub Note 1,000 (319.6) 463.5 305.0 $ million 800 (122.8) Senior Debt Senior Debt (net of cash) 600 (net of cash) 1,083.4 400 888.3 200 0
Slide 23: Moorebank Monetisation – Key Highlights
Moorebank Monetisation Process Update Key Highlights • Sales price of c.$1.67 billion before tax, transaction costs and other adjustments • Consideration of c.$1.36 billion payable on financial close and c.$312 million deferred, subject to several completion adjustments including working capital and
Slide 24: Rationale and Key Benefits
Moorebank Monetisation Process Update Rationale and Key Benefits Rationale • Enables Qube to realise the substantial value that has been created through ownership, development and sizeable investment in the MLP by Qube since its initial investment in December 2007 • Removes project development risk
Slide 25: Process to completion
Moorebank Monetisation Process Update Process to completion Process to completion • The transaction is currently expected to be completed in Q4 CY 21 subject to satisfaction of several conditions including: o FIRB approval o MIC consent (including resolution of a number of material issues) • Qube, L
Slide 26: Qube Post-Monetisation
Qube Post-Monetisation Strongly positioned to continue to expand its core logistics business, while retaining exposure to long-term growth in container volumes at MLP through terminal and logistics activities Operating Division Patrick (50%) Qube Logistics & Infrastructure Qube Ports & Bulk • Qube o
Slide 27: Vision and Strategy Remains Unchanged
Vision and Strategy Remains Unchanged Qube’s vision is to be Australia’s leading provider of integrated logistics solutions focussed on import and export supply chains Strategy Market Characteristics Highly Diversified Markets Deliver operating efficiencies and benefits of economies • Attractive lon
Slide 28: Qube's Key Strengths
Qube’s Key Strengths Focused strategy on core markets with favourable attributes where Qube has expertise Ownership of key infrastructure and logistics assets delivering a sustainable competitive advantage Highly diversified business including by customer, product, service and geography Ongoing focu
Slide 29: FY 22 Outlook
FY 22 Outlook Guidance • Overall solid growth expected in underlying earnings reflecting: o A full period contribution from the FY 21 acquisitions and growth capex o Partial period contribution from the FY 22 growth capex Operating o Organic growth Division o Increased start-up losses from the IMEX
Slide 30: Additional Financial Information (Appendices)
Additional Financial Information (Appendices)
Slide 31: Reconciliation of FY21 Statutory Results to Underlying Results
Appendix 1 Reconciliation of FY 21 Statutory Results to Underlying Results Operating Corporate and Property Division Patrick Consolidated Year Ended 30 June 2021 Division Other ($m) ($m) ($m) ($m) ($m) Statutory net profit/(loss) before income tax 173.1 (35.1) (49.5) 34.1 122.6 Share of (profit)/los
Slide 32: Reconciliation of FY20 Statutory Results to Underlying Results
Appendix 2 Reconciliation of FY 20 Statutory Results to Underlying Results Operating Property Corporate and Patrick Consolidated Year Ended 30 June 2020 Division Division Other ($m) ($m) ($m) ($m) ($m) Statutory net profit/(loss) before income tax 178.8 15.1 (77.5) 14.1 130.5 Share of (profit)/loss
Slide 33: Segment Breakdown
Appendix 3 Segment Breakdown Operating Property ($m) Corporate FY 21 FY 20 Change Division Division Statutory (excluding contribution from discontinued operations) Revenue 1,962.7 - 0.2 1,962.9 1,878.5 4.5% EBITDA 428.3 (219.7) (27.3) 181.3 422.8 (57.1%) EBITA 210.1 (223.2) (28.9) (42.0) 208.3 N/A E
Slide 34: Operating Division – Underlying Results
Appendix 4 Operating Division – Underlying Results FY 21* FY 20 FY 20** Change (%) Change (%) ($m) ($m) ($m) Revenue Logistics 860.3 823.2 4.5% 792.9 8.5% Ports & Bulk 1,148.2 962.2 19.3% 1,062.7 8.0% Total revenue 2,008.5 1,785.4 12.5% 1,855.6 8.2% EBITDA 351.4 285.4 23.1% 307.4 14.3% Depreciation
Slide 35: Property Division – Underlying Results
Appendix 5 Property Division – Underlying Results FY 21* FY 20** FY 20*** Change (%) Change (%) ($m) ($m) ($m) Revenue 23.7 98.0 (75.8%) 27.8 (14.7%) EBITDA 3.1 28.9 (89.3%) 6.9 (55.1%) Depreciation (3.1) (8.7) 64.4% (1.9) (63.2%) EBITA - 20.2 N/A 4.9 N/A Amortisation - (3.7) N/A - N/A EBIT - 16.5 N
Slide 36: Patrick – Underlying Results
Appendix 6 Patrick – Underlying Results FY 21 FY 20 Change (%) ($m) ($m) 100% Revenue 679.5 624.8 8.8% EBITDA 240.2 189.1 27.0% Depreciation (71.5) (65.0) (10.0%) EBITA 168.7 124.1 35.9% Amortisation (27.3) (24.3) (12.3%) EBIT 141.4 99.8 41.7% Interest Expense (Net) - External (23.5) (25.4) 7.5% Int
Slide 37: Other Associates – Underlying Results
Appendix 7 Other Associates – Underlying Results FY 21 FY 20 Qube Share of Profit of Associates Change (%) ($m) ($m) IMG 0.4 1.9 (78.9%) NSS 1.4 1.6 (12.5%) Prixcar (3.5) (2.1) (66.7%) Total – Operating Division (1.7) 1.4 N/A Quattro N/A (0.4) N/A TQ Holdings - 0.0 - Total – Property Division - (0.4
Slide 38: Corporate – Underlying Results
Appendix 8 Corporate – Underlying Results FY 21 FY 20 Change (%) ($m) ($m) Revenue 0.2 0.2 - EBITDA (28.9) (23.4) (23.5%) Depreciation (0.2) (0.2) - EBITA (29.1) (23.6) (23.3%) Amortisation - - - EBIT (29.1) (23.6) (23.3%) The underlying information excludes certain non-cash and non-recurring items
Slide 39: Qube Group's Structure Post Monetisation
Appendix 9 Qube Group’s Structure Post Monetisation • From 1 July 2021, the IMEX and Interstate terminals as well as TQ Holdings and Beveridge will be reported under the Operating Division • Beveridge and TQ Holdings will be reported under the Logistics & Infrastructure business along with the exist
Slide 40: Explanation of Underlying Information
Appendix 10 Explanation of Underlying Information • Underlying revenues and expenses are statutory revenues and expenses adjusted to exclude certain non-cash and non-recurring items such as fair value adjustments on investment properties, impairments and the impact of AASB 16, in order to reflect co