Slide 1: Full Year Presentation 9 August 2004
Full Year Presentation 9 August 2004
Slide 2: This presentation relates to the Freightways Limited NZX announcement and media release of 9
This presentation relates to the Freightways Limited NZX announcement and media release of 9 August 2004. As such it should be read in conjunction with, and is subject to the explanations and views contained in, those releases.
Slide 3: Presentation
Presentation 2004 highlights Operating performance Strategy and outlook
Slide 4: Freightways
Freightways
Slide 5: 2004 Highlights
2004 Highlights
Slide 6: General Highlights
General Highlights • Successful transition to public listing • All subsidiaries have performed very well • Recent acquisition at expectation • IPO forecast has been exceeded • Growth underpinned by increasing demand for Freightways’ services
Slide 7: Financial Highlights
Financial Highlights 2004 2003 variance $000 $000 % Operating revenue 214,498 195,625 10% EBITDA 45,618 38,071 * 20% EBITA 40,714 32,104 * 27% NPAT 16,137 NPATA 21,081 Earnings per share (NPAT) 13 cents *pro-forma
Slide 8: Performance vs. IPO Forecast
Performance vs. IPO Forecast Actual IPO Forecast $000 $000 Operating revenue 214,498 207,297 EBITA 40,714 36,118 Cash generated from operations 48,183 39,074 Capital expenditure 4,475 4,988 NPAT 16,137 13,533 Total dividend 15,800 14,000 Cash dividend per share 12.75 cents 11.3 cents
Slide 9: Operating Performance
Operating Performance
Slide 10: Operating Revenue
Operating Revenue 250 200 150 $M 100 50 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Year Ended • 10% revenue growth in 2004 • 5-year compound average revenue growth of 7%
Slide 11: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 220 0.5% 214 2% 1% 210 6% 200 $M 196 190 180 2003 O rganic Pricing Market share Acquisition 2004 Growth drivers
Slide 12: EBITA
EBITA 45 40 35 30 25 $M 20 15 10 5 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Year Ended • 27% EBITA growth in 2004 • 5-year compound average EBITA growth of 18%
Slide 13: Drivers of 2004 EBITA growth
Drivers of 2004 EBITA growth • Disciplined margin focus relating to new business • Favourable business mix • Productivity gains • Good cost control • Operating leverage gained by adding revenue to established national infrastructure
Slide 14: Cash Flows
Cash Flows $M Cash generated from operations 48 Capital expenditure at expectation (5) Recent acquisition funded from surplus cash (7.5) FEL's preference shares redeemed (post-IPO) (44) Bank borrowings repaid on 31 December 2003 (4)
Slide 15: Balance Sheet
Balance Sheet $M Strong working capital position (negative) (9) Bank borrowings $2m lower than IPO forecast (131) ($136m term debt facility consistent with expectation) New equity raised as part of IPO 17 FEL's preference shares (minority interest) redeemed 60
Slide 16: Dividend
Dividend Interim Final Total Total cash dividend ($) 7,250,000 8,550,000 15,800,000 Cents per share (fully imputed) 5.85 6.90 12.75 Record date: Friday, 17 September 2004 Payment date: Thursday, 30 September 2004
Slide 17: Strategy and Outlook
Strategy and Outlook
Slide 18: Strategy
Strategy • Continued development of growth opportunities in Freightways’ existing three core markets • Positioning, People, Performance, Profit • Explore incremental and complementary growth opportunities • Invest in IT and infrastructure
Slide 19: Outlook
Outlook • Economy favourable from Freightways’ perspective • No change expected to Freightways’ operating environment • Consistent application of proven market strategies • Business as usual
Slide 20: Summary
Summary Strong successful business Positioned to deliver continuing earnings growth Delivering an attractive dividend yield