Mainfreight Limited · NZX:MFT
Mainfreight — Investor Day (October 2024)
43 slides from Mainfreight's investor day presentation, Oct 7, 2024
Slide 1: Mainfreight Limited Investor Day, Northlake, Texas
MAINFREIGHT LIMITED INVESTOR DAY, NORTHLAKE, TEXAS, USA 7 October 2024
Slide 2: Agenda
Agenda 8.30 am Welcome at Northlake and travel to cross-dock by bus 9.30 am Travel back to Northlake 9.45 am Coffee break and tour of Northlake Warehouse 10.30 am Americas Jason Braid 10.45 am Europe Ben Fitts 11.00 am Australia Rodd Morgan 11.15 am Asia Cary Chung 11.30 pm New Zealand Carl George 1
Slide 3: Americas – Jason Braid
AMERICAS – Jason Braid 1,994 79 Team Members Branches $345M $8.14M USD Revenue USD PBT 6.2% 6 months (32.1%) 6 months A&O Warehousing Transport $8.6M PBT $3.8M PBT ($4.3M) PBT (17.6%) 23.1% (163%)
Slide 4: Americas – Current Trading / Outlook
AMERICAS – Current Trading / Outlook • General • A stronger start to the second half of calendar year • Volumes and shipment count across all divisions are up • We are selling into a growing network – Transport & Warehousing (utilization) • New customer gains bringing opportunities for margin improv
Slide 5: Americas – Property and Network Development
AMERICAS – Property and Network Development • December 2024 - Completion of Newark Warehouse Expansion (Additional 13k sq meters) • December 2024 - Completion of Haslet, TX Transport Cross-Dock • April 2025 - Completion of Chicago, IL Transport Cross-Dock • Early 2025 - New Air & Ocean Branch in Mil
Slide 6: Americas – Key Initiatives / Opportunities and Challenges
AMERICAS – Key Initiatives / Opportunities and Challenges • Transport • We are competing and winning customers from the larger LTL players • A branch & linehaul network was first needed to compete on quality • Sales opportunities are endless - its about winning the right freight • New cross-docks wi
Slide 7: Europe – Ben Fitts
EUROPE – Ben Fitts 3,072 52 Team Members Branches €295M €13.2M Revenue PBT 4.4% 6 months 5.5% 6 months
Slide 8: Europe – Current Trading / Outlook
EUROPE – Current Trading / Outlook General • Ample opportunity for growth despite a challenging economic climate • Transport and Air & Ocean ahead YTD, Warehousing trailing • Sales culture is developing, increased activity and growing customer opportunity pipelines. Transport • Tonnage slightly up o
Slide 9: Europe – Property and Network Development
EUROPE – Property and Network Development EU Property planned Capex ‘s-Heerenberg Transport, Netherlands Rotterdam Transport, Netherlands 2024-2025 15,000m2 Cross-Dock est. 2026 7,500m2 Cross-Dock 2024 €3.7M 2025-2026 €21M Utrecht Warehousing, Netherlands Ploiești Warehousing, Romania 20,000m2 Wareh
Slide 10: Europe – Key Initiatives / Opportunities and Challenges
EUROPE – Key Initiatives / Opportunities and Challenges Transport Warehousing • Network intensification driving growth in Belgium & • Capacity in the network, converting current opportunities Netherlands that fit profile and adds value to network • Leveraging network freight opportunities e.g. Port
Slide 11: Australia – Rodd Morgan
Australia – Rodd Morgan 2,663 74 / 22 Team Members Branches / Locations $755M $60.8M AUD Revenue AUD PBT 19.3% 6 months 7.6% 6 months
Slide 12: Australia – Current Trading / Outlook
Australia – Current Trading / Outlook • Steady - customer mix assisting, still plenty of growth potential • Resilient economy but still challenging • Existing customer downtrading offset by new customer gains • Managing overhead costs well. Margins holding despite competition except in Air & Ocean •
Slide 13: Australia – Network Expansion
Australia – Network Expansion • Branches 74 94 • Locations 22 37 • A&O Presence 9 17 • Warehousing Space 313,948m² 382,176m² (21.7%, within 36 months) • 5 property projects Kalgoorlie currently underway Established Branches/Locations Planned Expansion Branches/Locations
Slide 14: Australia – Property & Network Development – In Progress
Australia – Property & Network Development – In Progress Planned Capex 2024/2025 • $27.3M balance of Willawong land purchase Willawong Townsville Brisbane | Wharf completed 21,000m2 Container Hardstand • $12.3M Willawong 12,500m2 Transport Depot. 4,500m2 Regional Growth Depot construction cost to co
Slide 15: Australia – Property & Network Development – Completed
Australia – Property & Network Development - Completed Sydney (Moorebank) Perth (Kenwick) Gold Coast Brisbane 56,200m2 Warehouse 22,400m2 Warehouse 6,700m2 Transport Depot 2,000m2 Specialised Air Facility 3,330m2 DG, 24,700m2 Temp Control 888m2 Temp Control 460m2 Chiller, 613m2 Ante Room, 63m2 Freez
Slide 16: Australia – Key Initiatives/Opportunities & Challenges
Australia – Key Initiatives/Opportunities & Challenges Air & Ocean • Margins under pressure • FCL import volumes have softened since June due to Red Sea delays & Singapore port congestion • Seeing good growth in export air perishable product • Are using our relationships with seafreight carriers to
Slide 17: Australia – Key Initiatives/Opportunities & Challenges
Australia – Key Initiatives/Opportunities & Challenges Warehousing • Profit improvements recently of $36M, with 40 new customers onboarded since April moving utilisation from 65% to 85% by November • Have absorbed lease tails of $1.8M and new building rent increases of $4.3M • Larger buildings, clos
Slide 18: Australia – Moorebank Video
J Australia — Moorebank Video
Slide 19: Asia – Cary Chung
ASIA– Cary Chung 509 38 Team Members Branch / Location $65M $5.9M USD Revenue USD PBT 33.7% 6 months (9.6%) 6 months
Slide 20: Asia – Current Trading / Outlook
ASIA – Current Trading / Outlook General • Trading to end of September continues to provide volume growth. With our ocean Full Container Load increasing for both export and imports • Airfreight volumes increasing as we head towards peak season • Margin improvements are needed A&O • The synergy of In
Slide 21: Asia – Key Initiatives / Opportunities and Challenges
ASIA – Key Initiatives / Opportunities and Challenges Challenges Opportunities • Uncertainties of the international • Potentially more airfreight demand towards the end of the year due to the transportation impacted by Red Sea ocean impacts to/from EU & US situation and US East Coast Port Disruption
Slide 22: New Zealand – Carl George
NEW ZEALAND – Carl George 2,861 92 Team Members Branch / Location $558 M $46.3 M NZD Revenue NZD PBT 0.2% 6 months (24.1%) 6 months A&O Warehousing Transport $11.6M PBT $6.3M PBT $28.4M PBT (37%) 9.7% (22.9%)
Slide 23: New Zealand – Current Trading / Outlook
NEW ZEALAND – Current Trading / Outlook General • Trading through to the end of September has been reflective of the challenging economic environment, however we continue to grow market share. The Warehousing division is trading ahead YTD, Air & Ocean and Transport trail behind YTD Transport • Tonna
Slide 24: New Zealand – Property and Network Development
NEW ZEALAND – Property and Network Development NZ Property planned Capex 2024-2025 2Home Auckland Hugo Johnson Beach Rd Alderman Place $93 M 22,000m2 Cross-Dock/W-H 18,000m2 Cross-Dock 20,000m2 Specialist DG WH Wharf / Tankers / Container End Loading Rail and End loading End of 1st Qtr. 2025 freight
Slide 25: New Zealand – Key Initiatives / Opportunities and Challenges
NEW ZEALAND – Key Initiatives / Opportunities and Challenges Transport Warehousing • Continued Network Investment – Auckland, Hastings, • Completion of our first dedicated Consumer Nelson, Blenheim, Thames, Palmerston North, Goods Warehouse in Auckland late 2024 Cromwell, Whanganui, Gisborne, New Pl
Slide 26: New Zealand – Key Initiatives / Opportunities and Challenges
NEW ZEALAND – Key Initiatives / Opportunities and Challenges Air & Ocean Challenges • Continued growth of our Mainfreight to Mainfreight • Trading environment and (1MF) consolidated Sea and Air services, targeting impact on margins / recovery 100 Sea and Air destinations by 2026. • Long term investm
Slide 27: Technology – John Eshuis
TECHNOLOGY – John Eshuis 52 BRANCHES 10 COUNTRIES EUROPE 79 BRANCHES 4 COUNTRIES 38 BRANCHES THE AMERICAS 11 COUNTRIES 5 Regional Teams ASIA 94 BRANCHES Minimal Group functions AUSTRALIA 3 On Premise Data Centers Cloud Presence Modernising our Environment 92 BRANCHES Hybrid Cloud • Customer Facin
Slide 28: Technology – Cyber Security
TECHNOLOGY – Cyber Security Application Awareness Security Infrastructure Security Security Operations
Slide 29: Technology – Infrastructure
TECHNOLOGY – Infrastructure Modern Operating Environment Network Simplicity Modernisation N+1 Regional Alignment Execution
Slide 30: Technology – Operating Systems
TECHNOLOGY – Operating Systems Transport Warehousing Bespoke Bespoke Customer Facing Bespoke Air Ocean Data Wisetech Microsoft
Slide 31: Technology – Looking ahead
TECHNOLOGY – Looking ahead BUSINESS OPERATIONS MODERN ARCHITECTURE Incremental Change Hybrid Cloud SECURITY Generative AI Zero Trust Speed Consistency Leverage SaaS Standards Quality Standards
Slide 32: People – Martin Devereux
PEOPLE – Martin Devereux Our culture: Promotion from within and development of international career paths • Growth from the ‘floor’ into roles of genuine responsibility • Ground up decision making as close to the customer as possible Our Team Development: Programs driving culture, safety and leaders
Slide 33: People – Team Numbers
PEOPLE – Martin Devereux Team Numbers as THIS YEAR LAST YEAR at 31/08/24 Male Female Male Female New Zealand 2861 77% 23% 76% 24% Australia 2663 71% 29% 71% 29% Europe 3072 74% 26% 74% 26% Americas 1994 65% 35% 59% 41% Asia Branches 509 37% Countries 63% 38% 62% People Total Group 11099 71% 29% 70%
Slide 34: People – Health & Safety
PEOPLE – Martin Devereux Health & Safety – Key focus across all regions at all levels of business Group Notifiable Incidents 2024 Financial Year: 18 accidents August YTD: 14 accidents Incidents and events – Measure by branch / by region. Share lessons / learnings internationally Safety initiatives:
Slide 35: Sustainability – We have made progress
SUSTAINABILITY - Graeme Illing – We have made progress “Since 2018, we have reduced gross emissions by 10% while doubling the size of our business” We have invested in sustainable infrastructure • 8.4 MW in solar generation (up 30% in FY24) • 9.5 MWh in battery storage (up 45% in FY24) • Rainwater c
Slide 36: Sustainability – We have a clear roadmap ahead
SUSTAINABILITY – We have a clear roadmap ahead Solar installations to future proof new sites • Engineering roofs to handle large arrays • Conduits to distribute new power to DC fleet charging • Switch boards to support future power needs Additional water storage • Increasing storage at new sites Ong
Slide 37: Sustainability – But challenges remain
SUSTAINABILITY – But challenges remain Legislated reporting requirements add cost to the business • Regional variation in legislative requirements • Targeting standardised approach similar to financial reporting Global electricity demand is expected to more than double by 2050 • We will be significa
Slide 38: Trading Update – Estimated Revenue
TRADING UPDATE – Estimated Revenue August Actuals plus September “weeklies” (26 weeks of trading 1Apr to 30 Sept) NZ$000 THIS YEAR LAST YEAR VAR % New Zealand NZ$ 557,835 556,911 0.2% Australia AU$ 754,928 632,932 19.3% Americas US$ 345,028 324,828 6.2% Europe EU€ 294,569 282,195 4.4% Asia U
Slide 39: Trading Update – Estimated PBT
TRADING UPDATE – Estimated PBT August Actuals plus September “weeklies” (26 weeks of trading 1Apr to 30 Sept) NZ$000 THIS YEAR LAST YEAR VAR % New Zealand NZ$ 46,378 61,087 -24.1% Australia AU$ 60,804 56,490 7.6 Americas US$ 8,140 11,981 -32.1% Europe EU€ 13,237 12,545 5.5% Asia US$ 5,929 6,
Slide 40: Financial Overview – Estimated trading by division
FINANCIAL OVERVIEW – Estimated trading by division August Actuals plus September “weeklies” (26 weeks of trading 1Apr to 30 Sept) Revenue: NZ$ 1,115.5 million 2.6% TRANSPORT PBT: NZ$ 71,910 million -2.1% Revenue: NZ$ 408,238 million 3.8% WAREHOUSING PBT: NZ$ 20,427million -24.8% Revenue: NZ$
Slide 41: Financial Overview – Capex
FINANCIAL OVERVIEW – Capex • Net Capex $94M to end of August. Project Capex for FY25 has reduced by $22M from $255M announced in March to $233M • Debt Facilities $499M, undrawn $302M – this is down from $352M undrawn in March • Bonus accrual is at normal levels • Half Year result to 30 September wil
Slide 42: Overview – Half Year Expectations
OVERVIEW – Half Year Expectations Revenue: $ 2.55 billion 8.5% PBT: $ 158.5 million -9.3% A small improvement for the second quarter of trading in this half • Expect further improvements into the second half of the Financial Year Satisfactory sales revenue increases driven by: • Increased custom
Slide 43: Thank you
[hank YM MAINFREIGHT