Mainfreight Limited · NZX:MFT

Mainfreight — Shareholder Meeting (July 2021)

20 slides from Mainfreight's shareholder meeting presentation, Jul 29, 2021

  1. Slide 1: Mainfreight Limited Annual Meeting of Shareholders 29 July 2021

    MAINFREIGHT LIMITED ANNUAL MEETING OF SHAREHOLDERS 29 JULY 2021 “Times of change unlock new value”

  2. Slide 2: A quick look back at F21

    A quick look back at F21 … 9,240 Team members up 609 GROWTH 297 Branches up 15 26 Countries no change … for now Revenue up 14.5% to $3.54 billion REVENUE An increase of $448.4 million PROFIT PBT up 27.2% to $262.4 million BEFORE TAX An increase of $56.2 million Net surplus after tax before abnormal

  3. Slide 3: Discretionary Bonus / Dividend / Earnings Per Share

    Discretionary Bonus / Dividend / Earnings Per Share Payable at Board’s discretion to qualifying team members (5,243 people) BONUS $43.9 million, an increase from $27.3 million in the prior year (for payment in July/August) DIVIDEND Total dividend for year 75.0 cents per share, up 16.0 cents or 27.1%

  4. Slide 4: Contribution: New Zealand vs Offshore

    Contribution: New Zealand vs Offshore THE AMERICAS 1,131 TEAM MEMBERS AUSTRALIA REVENUE: US$577M 2,142 TEAM MEMBERS 77 BRANCHES REVENUE: AU$877M 62 BRANCHES EUROPE ASIA NEW ZEALAND 2,915 425 TEAM MEMBERS TEAM MEMBERS 2,627 TEAM MEMBERS REVENUE: EU€428M REVENUE: US$104M REVENUE: NZ$846M 48 BRANCHES 8

  5. Slide 5: Trading Update: Revenue

    May actuals plus June/July “weeklies” Trading Update: Revenue* 17 weeks of trading (1 April to 25 July) NZ$000 THIS YEAR LAST YEAR VAR % New Zealand NZ$ 366,459 268,594 36%  Australia AU$ 352,827 287,904 23%  Asia US$ 132,635 51,776 156%  Europe EU€ 204,585 145,210 41%  Americas US$ 285,351 167,

  6. Slide 6: Trading Update: PBT

    May actuals plus June/July “weeklies” Trading Update: PBT 17 weeks of trading (1 April to 25 July) NZ$000 THIS YEAR LAST YEAR VAR % New Zealand NZ$ 29,542 17,347 70%  Australia AU$ 25,342 18,151 40%  Asia US$ 6,217 2,537 145%  Europe EU€ 8,468 3,873 119%  Americas US$ 18,659 3,722 401%  Group N

  7. Slide 7: Trading Update: Our Core Products

    Trading Update: Our 3 Core Products Revenue: $691.2 million up 27% TRANSPORT PBT: $47.2 million up 65% Revenue: $173.5 million up 24% WAREHOUSING PBT: $13.6 million up 49% Revenue: $810.6 million up 61% AIR & OCEAN PBT: $45.0 million up 184% Air & Ocean revenue is inflated by air and ocean carriers’

  8. Slide 8: Trading Update: Total Company

    Trading Update: Total Company  Inflated air and shipping line freight rates are artificially increasing sales revenues for Air & Ocean:  This may last well into 2022  Across all trade-lanes  Volumes are increasing for us in this sector  Via market share; and  Increased consumer demand  Wareho

  9. Slide 9: Trading Update: Total Company

    Trading Update: Total Company  Transport volumes across all networks are increased:  Consumer demand  Market share opportunities  Prior period comparisons are not helpful  Lockdowns prior year  Expect half-year to be satisfactorily improved on prior period  Full-year result should be satisfac

  10. Slide 10: Trading Update: Regions

    Trading Update: Regions New Zealand Network development/new sites key to improving service levels; Air & Ocean solutions assisting our customers Australia Regional Transport development and Warehousing initiatives provide very competitive advantages Asia Southeast Asia performance and in-country sal

  11. Slide 11: Capital Expenditure

    Capital Expenditure $119 million, of which $74.5 million on land & buildings F21 (including racking & fit-out) primarily across New Zealand and Australia $226 million F22 including $181 million for expected property capital investment $203 million F23 including $158 million for expected property cap

  12. Slide 12: Property Initiatives: Land / Building / Leases

    Property Initiatives: Land / Building / Leases NZ$ Million F22 Property Projects for 2022 and 2023 Planned Capital Expenditure $226.2 Land 4 New Zealand Buildings 12 NZ$ Million F23 Leases 11 Planned Capital Expenditure $202.7 Buildings 2 Australia Leases 4  Key initiative is to intensify our Ameri

  13. Slide 13: Our Customers: Top 1000 Analysis

    Our Customers: Top 1000 Analysis  Our customer market verticals remain a core focus for our growth  Retail 15.4%  DIY 12.0%  Food 9.5%  Technology/Electronics 9.0%  Medical/Healthcare 8.6%  Beverage 5.1%  Chemicals 5.0% Total 64.6%  Perishable and pharmaceutical segment development Page 13

  14. Slide 14: Sustainability – Emission Reduction: 15% 2020

    Sustainability – Emission Reduction: 15% 2020  Solar power capable generation – 2,855 kW (9,830 panels)  Rainwater capture to potable standards  Electric truck trials:  Auckland – 3  Hamilton – 1  Christchurch – 1  Australia – to come  Consideration of other alternative fuel options  Electr

  15. Slide 15: Global Supply Chain Status

    Global Supply Chain Status  Over-ordering/demand/space availability  Most trade-lanes affected (Trans Pacific East Bound the worst)  Continued increases for shipping and air line pricing:  Port congestion globally  last count 300 ships waiting to berth  Equipment shortages  Port rotations cha

  16. Slide 16: Global Supply Chain Status … continued

    Global Supply Chain Status … continued  Mainfreight network assisting  Preferred long-term air and shipping line relationships  Smaller shipping lines in niche markets  Bulk Space Agreements and Charter Agreements for Air and Sea  Our ability to manage smaller LCL shipments  Expect demand/shor

  17. Slide 17: Priorities and Actions

    Priorities and Actions  Strong focus on assisting and retaining our customers with solutions across congested supply chains  High quality services/standards are our priority  There is more to do here  Manage cost structures as we manage growth  Workplace Covid-19 vaccination trials for New Zeal

  18. Slide 18: Mainfreight Corporate Governance

    Mainfreight Corporate Governance  Corporate governance seems to remain a topic of discussion – when will performance be recognised?  Board membership and succession are front of mind  Discussions with potential candidates continue, as we look to future-proof our Board, secure ongoing balance and

  19. Slide 19: We Continue To …

    We Continue To …  Be optimistic and confident about what’s in front of us  Be conscious of supply chain congestion and the issues it is causing for our customers including pricing  Develop our network intensity within each region – get closer to our customers  Know that our people make the diffe

  20. Slide 20: tiptoe through the tulips with ae

    tiptoe through the tulips with ae

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