Mainfreight Limited · NZX:MFT
Mainfreight — FY2022 Earnings Presentation
30 slides from Mainfreight's earnings presentation, May 2022
Slide 1: Mainfreight Limited Full Year Result to 31 March 2022
MAINFREIGHT LIMITED FULL YEAR RESULT TO 31 MARCH 2022
Slide 2: Result Summary
Result Summary Revenue is $5.22 billion REVENUE An increase of 47.2% or $1,674.42 million (excluding FX up 50.8%) Offshore revenues are now $4.09 billion: 78.3% Profit before tax is $489.38 million PBT Increase of 86.5% or $226.97 million (excluding FX up 90.5%) Offshore PBT now $352.9 million: 72.1
Slide 3: Full Year 2022 Overview
Full Year 2022 Overview Improved performance from all five regions Yes, Air & Ocean improvements are substantial, but so are the returns in our Transport and Warehousing divisions Capital expenditure commitment approximately $540 million over next two years Page 3
Slide 4: Dividend
Dividend Directors have approved a final dividend DIVIDEND of 87.0 cents per share Books close 15 July 2022; payment on 22 July 2022 Full dividend for year 142.0 cents per share, increase 89.3% over the previous year Page 4
Slide 5: Discretionary Bonus
Discretionary Bonus Payable at Board’s discretion to qualifying team members BONUS Up 114.7% from $43.88 million last year, to $94.20 million Page 5
Slide 6: Capital Management
Capital Management NZ$ MILLION THIS YEAR LAST YEAR Operating cash flow $503.80 $376.28 Net capital expenditure totalled $189 million for the period, including Land & Buildings $109 million Racking & Fit-out Costs $35 million Plant & Equipment $28 million Information Technology $17 million
Slide 7: Capital Management continued
Capital Management continued Net debt reduction of $101.1 million to $1.1 million NET DEBT Debt facilities $494 million Undrawn $318 million Property valuation now $1.031 billion PROPERTY Land revaluations rose $67.6 million after tax – booked Building revaluations rose $26.0 million after tax – unb
Slide 8: Full Year Analysis: Revenue
Full Year Analysis: Revenue $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 1,130,399 845,554 33.7% Australia: AU$ 1,175,041 877,156 34.0% Europe: EU€ 567,906 427,522 32.8% Americas: US$ 1,089,422 576,909 88.8% Asia: US$ 231,008 104,284 121.5% Total Group: NZ$ 5,218,259 3,543,838 47.2%
Slide 9: Full Year Analysis: Profit before Tax
Full Year Analysis: Profit before Tax $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 136,479 97,814 39.5% Australia: AU$ 107,497 71,504 50.3% Europe: EU€ 31,664 22,351 41.7% Americas: US$ 100,831 25,923 289.0% Asia: US$ 28,852 7,047 309.4% Total Group: NZ$ 489,381 262,407 86.5% (excl
Slide 10: Prior Period Comparisons
Prior Period Comparisons Positive/(Negative) Revenue Profit Before Tax Variances 1H 22 2H 22 FY 22 1H 22 2H 22 FY 22 New Zealand 31.6% 35.4% 33.7% 28.2% 46.6% 39.5% Australia 30.2% 37.1% 34.0% 45.7% 53.8% 50.3% Europe 34.4% 31.5% 32.8% 77.8% 25.0% 41.7% Americas 78.0% 97.0% 88.8% 309.7% 278.8% 289.0
Slide 11: Product Performance
Product Performance NZ$000 THIS YEAR LAST YEAR VARIANCE Transport Revenue 1,914,902 1,610,741 18.9% Profit before tax 183,861 140,527 30.8% Warehousing Revenue 583,821 452,116 29.1% Profit before tax 55,262 42,207 30.9% Air & Ocean Revenue 2,719,535 1,480,981 83.6% Profit before tax 250,25
Slide 12: Volume Analysis
Volume Analysis NZ$000 THIS YEAR LAST YEAR VARIANCE Air & Ocean Seafreight TEU 424,610 347,638 22.1% Airfreight kilos (000s) 138,279 114,736 20.5% Transport Tonnes* 7,286,572 7,660,242 (4.9)% Consignments 9,613,669 9,010,213 6.7% Warehousing Footprint (m2) 929,502 804,291 15.6% * Excluding
Slide 13: Customer Trading
Customer Trading Top 500 Customers: Use of Mainfreight Divisions (Transport/Warehousing/Air & Ocean) 1 Division 1 Division 31% 32% 29% 33% 3 Divisions 2022 3 Divisions 2021 36% 39% 2 Divisions 2 Divisions Top 500 Customers using us in two or more regions increased to 69% from 64% Top 500 Custo
Slide 14: Mainfreight Network
Mainfreight Network Our global network continues to benefit our customers, particularly with space allocations, rates and access to markets Page 14
Slide 15: New Zealand
New Zealand Revenue $1,130m 33.7% Profit before Tax $137m 39.5% Record volumes across all divisions Significant home deliveries pre-Christmas 4th quarter performance better than expected despite Omicron challenges Warehouse capacity exceeded New temporary sites covering time lag to deliver
Slide 16: New Zealand
New Zealand 11 new land & building projects 2023/24 10 new lease facilities 2023/24 New country leadership: Carl George Promoted from within 27 years with Mainfreight Last role: GM New Zealand Transport Page 16
Slide 17: Australia
Australia Revenue AU$1,175m 34.0% Profit before Tax $107m 50.3% Significant financial improvement across Transport and Air & Ocean As with NZ, 4th quarter performance satisfactory despite Omicron challenges Warehousing improved, but not to the same extent – as additional warehouses taken on sh
Slide 18: Australia
Australia Air & Ocean benefitting from increased air and sea volumes Space constraints inhibiting growth Trading post-year end steady and ahead of prior year 4 new land & building projects 2023/24 25 new lease facilities 2023/24 Page 18
Slide 19: Europe
Europe Revenue EU€568m 32.8% Profit before Tax EU€32m 41.7% Significant improvement in Air & Ocean performance Transport/Warehousing results satisfactory Impacted by team isolating during pandemic Trading post-year end continues to see improvement in performance Network expansion progressi
Slide 20: Asia
Asia Revenue US$231m 121.5% Profit before Tax US$29m 309.4% Volume surge across trans-Pacific east-bound trade lanes has assisted result Air and seafreight capacity tight, but greater space allocations than expected Southeast Asia performance very satisfactory Continuing to intensify network
Slide 21: The Americas
The Americas Revenue US$1,089m 88.8% Profit before Tax US$101m 289.0% Exceptional performance from Air & Ocean Trans-Pacific east-bound trade lanes Across both air and sea freight Warehousing increasing performance satisfactorily Three new sites in Texas, Pennsylvania and Illinois Pipeli
Slide 22: The Americas
The Americas CaroTrans Increased LCL volumes Strong import bias Trading post-year end slightly reduced for Air & Ocean (Shanghai effect); Transport and Warehousing are trading satisfactorily 11 new leased sites 2023/24 New country leadership: Jason Braid Promoted from within 25 years
Slide 23: Future Capital Expenditure Update: F22-F23
Future Capital Expenditure Update: F22-F23 NZ$ MILLION F23 NZ$ MILLION F24 Planned Capital Expenditure $345 Planned Capital Expenditure $195 Land & Property $235 Land & Property $128 Racking & Fit-out costs, Group $65 Racking & Fit-out costs, Group $20 Non-property capex $45 Non-property
Slide 24: Sustainability (calendar years 2021 and 2020)
Sustainability (calendar years 2021 and 2020) Intensity Factor CO2 EMISSIONS SOURCE 2021 2020 Var 2021 2020 Road / Rail 473,930 467,101 1.5% 49.65 58.46 Air 943,337 706,239 33.6% 1.20 1.21 Sea 226,769 261,739 (13.4)% 0.09 0.12 Indirect Freight Emissions 1,644,036 1,435,079 14.6% Direct Operational E
Slide 25: Group Outlook
Group Outlook Expect supply chain congestion to continue well into 2022 calendar year Shanghai, Russia/Ukraine adding to issues USA port labor negotiations likely to impact throughput Container/chassis shortages still affecting USA ports Expect peak season ex Asia to coincide with volume r
Slide 26: Group Outlook …
Group Outlook … Transport volumes and organic growth will see ongoing improvement in all regions However driver shortages across Europe due to conflict in Ukraine Maintaining strong focus on LCL volume growth Warehousing capacity increasing to cope with new customer demand Expect “just in
Slide 27: Group Outlook …
Group Outlook … Customer rate reviews applied, effective: New Zealand 2 May 2022 Australia 1 April 2022 Europe 1 January 2022 Americas 1 June 2022 Do not expect the same quantum of improvement this year to roll into next year’s results Our network intensification assists Transport and
Slide 28: Group Outlook …
Group Outlook … As per regional commentary, April/May trading has produced improved results on the same period last year Despite inflation/recession concerns we remain confident of continued growth and improving performance Page 28
Slide 29: Financial Calendar F23
Financial Calendar F23 DATE Annual Meeting of Shareholders 28 July 2022 Investor Day – West Auckland Facility 21 October 2022 F23 – 6 months ended 30 September 2022 10 November 2022 F23 – 12 months ended 31 March 2023 25 May 2023 Page 29
Slide 30: Face the challenge with a smile
Face the challenge with a smile Page 30