Freightways Group Limited · NZX:FRW
Freightways — H1 FY2013 Earnings Presentation
26 slides from Freightways's earnings presentation, Feb 18, 2013
Slide 1: Freightways Half Year Presentation
Freightways Half Year Presentation 18 February 2013 Half Year Result | February 2013 1
Slide 2: This presentation
This presentation Thi t ti relates l t tot the th Freightways F i ht Li it d NZX Limited announcement and media release of 18 February 2013 As such, it should be read in conjunction with, and is subject to, the explanations and views contained in those releases This half year result is drawn from un
Slide 3: Agenda
Agenda 2013 Half Year Highlights Operating Performance Business Strategy Outlook Half Year Result | February 2013 3
Slide 4: 2013 Half Year Highlights
2013 Half Year Highlights g g Half Year Result | February 2013 4
Slide 5: General Highlights
General Highlights A record result for the company Increased express package volumes against a very strong prior comparative period Increasing information management market support from large nationwide customers in Australia Innovative new services introduced in both divisions, including gy
Slide 6: Financial Highlights
Financial Highlights Dec-12 Dec-11 Increase $M $M % Operating Revenue 206 7 206.7 192 2 192.2 8% EBITDA* EBITDA 39.6 36.3 9% EBITA* 33.8 31.3 8% NPAT* 20.0 18.3 10% * Dec-12 excludes non-recurring $1m benefit relating to an acquisition earnout that is now not expected to be payable ($1m after tax) (
Slide 7: Operating Performance
Operating p g Performance Half Year Result | February 2013 7
Slide 8: Operating Revenue
Operating Revenue 450 400 350 300 250 $M 200 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Ended 30 June 2nd Half 1st Half • 8% higher revenue compared to PCP • 10-year y compound p average g annual revenue ggrowth of 7.5% % Half Year Result | February
Slide 9: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 220 210 2.3% 0% 2 9% 2.9% 207 2.3% $M 200 192 190 180 2011 Volume Pricing Net new business Acquisition 2012 Growth Drivers 1 Half Year Result | February 2013 9
Slide 10: EBITA
EBITA* EBITA 70 60 50 40 $M 30 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Ended 30 June 2nd Half • 8% higher EBITA compared to PCP 1st Half • 10-year compound average annual EBITA growth of 8% * NB: This graph represents the operating results of the compa
Slide 11: Business Segments Operating Performance
Business Segments Operating Performance (Half year to 31 December 2012) Revenue EBITA 24% 25% 76% 75% Express Package & Business Mail Information Management 1 Half Year Result | February 2013 11
Slide 12: Express Package & Business Mail
Express Package & Business Mail Dec-12 Dec 12 Dec-11 Dec 11 Increase $M $M % O Operating ti Revenue R 157 8 157.8 149 4 149.4 6% EBITDA 29 0 29.0 27 9 27.9 4% EBITA 26.1 25.5 2% EBITA Margin 17% 17% 1 Half Year Result | February 2013 12
Slide 13: Information Management
Information Management Dec-12 Dec 12 Dec-11 Dec 11 Increase $M $M % O Operating ti Revenue R 49 9 49.9 43 6 43.6 15% EBITDA 11 2 11.2 92 9.2 21% EBITA 8.9 7.2 23% EBITA Margin 18% 17% 1 Half Year Result | February 2013 13
Slide 14: Balance Sheet – Key Points
Balance Sheet – Key Points Total Assets and Total Liabilities have increased since FY12 by $11m and $4m, respectively, primarily as a result of the Dataprint acquisition for $3m and capital expenditure of $7m Net bank borrowings have increased since FY12 by $4m, mainly to fund the Dataprint acqu
Slide 15: Cash Flow – Key Points
Cash Flow – Key Points Cash inflows from operating activities remain strong at $37m for the half year Cash outflows from investing activities were lower than the PCP as a consequence of less being spent on acquisitions this half year Cash outflows from financing activities represent predominan
Slide 16: Subsequent Event – Interim Dividend
Subsequent Event – Interim Dividend Interim dividend: 9 0 cps 9.0 Imputation credits: 3.54 cps (NB. 89% of credits at 28% tax rate) Supplementary dividend: 1.5882 cps Record date: 15 March 2013 Payment date: 2 April 2013 No DRP offered in respect of the 2013 Interim Dividend 1 Half Year
Slide 17: Strategy
Strategy gy Half Year Result | February 2013 17
Slide 18: Business Strategy
Business Strategy Develop organic growth opportunities Diversification: Industry and Geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities Half Year Result | February 2013 18
Slide 19: Express Package & Business Mail
Express Package & Business Mail Network Courier Point-to-Point Point to Point Business Mail Support 1 Half Year Result | February 2013 19
Slide 20: Information Management
Information Management New Zealand Australia Document Storage Data Storage g Document Destruction Half Year Result | February 2013 20
Slide 21: Capital Expenditure
Capital Expenditure 2013 2013 Half year Full year actual forecast Capital Expenditure $7m $14m Depreciation $6m $12m Half Year Result | February 2013 21
Slide 22: Outlook
Outlook Half Year Result | February 2013 22
Slide 23: Outlook
Outlook Slow growth environment expected to continue for foreseeable future, future but also mindful of any further deterioration in global economy Express Package growth expected to be sustained at similar levels for the foreseeable future. Business Mail volume expected to continue to decline;
Slide 24: Conclusion
Conclusion Half Year Result | February 2013 24
Slide 25: Conclusion
Conclusion FRE hhas ddelivered li d another th recordd result lt This result again demonstrates the resilience of FRE, the positive features of the industries it operates in, the high quality of its subsidiary businesses and its teams of people Subject to business factors beyond its control, F
Slide 26: Freightways Half Year Presentation
Freightways Half Year Presentation 18 February 2013 Half Year Result | February 2013 26