Slide 1: Full Year Results
FULL YEAR Freightways RESULTS
Slide 2: Presentation basis and notes
This presentation relates to the Freightways Limited NZX announcement and media release of 15 August 2016. As such, it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. The full year consolidated financial result presented is drawn from au
Slide 3: Agenda
Agenda Financial Highlights Operating Performance Final Dividend Business Strategy Outlook Conclusion Freightways Limited | Full Year Result | 15 August 2016
Slide 4: FY2016 Highlights
FY2016 Highlights
Slide 5: Financial Highlights
Financial Highlights Underlying Underlying 2016 Non‐recurring $M Note trading result trading result Increase Result items Jun‐16 Jun‐15* Revenue 505.4 ‐ 505.4 479.5 5.4% EBITDA (i) 92.1 6.3 98.4 95.5 3.1% EBITA (ii) 81.4 6.3 87.7 82.8 5.9% NPATA (iii) 51.5 4.6 56.0 51.9 8.0% NPAT (iv) 49.8 4.6 54.4
Slide 6: Non-Recurring Items
Non‐Recurring Items 2015 result included 5 more trading days than 2016: As mentioned in the 1st quarter results announcements, the approximate benefit of these days is $7m revenue, $2m EBITDA & EBITA and $1.4m NPATA & NPAT Directors believe non‐recurring items should be excluded when assessing t
Slide 7: Operating Performance
Operating Performance
Slide 8: Operating Revenue
Operating Revenue 600 500 400 $M 300 200 100 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Ended 30 June 2nd Half • 5.4% higher revenue compared to PCP 1st Half Freightways Limited | Full Year Result | 15 August 2016
Slide 9: EBITA
EBITA 90 80 70 60 50 $M 40 30 20 10 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Ended 30 June 2nd Half • 5.9% higher EBITA compared to PCP 1st Half NB: This graph represents the operating profit before interest, tax and amortisation of intangibles, exclusive of any non‐re
Slide 10: Business Segments Operating Performance
Business Segments Operating Performance (Year ended 30 June 2016) Revenue EBITA 27% 31% 73% 69% Express Package & Business Mail Information Management Freightways Limited | Full Year Result | 15 August 2016
Slide 11: Express Package & Business Mail
Express Package & Business Mail Jun‐16 Jun‐15** Change $M $M Operating Revenue 370.3 359.9 2.9% EBITDA* 66.5 68.3 (2.6%) EBITA* 62.1 61.7 0.6% EBITA Margin* 17% 17% * excluding non‐recurring items ** Jun15 included 5 extra trading days Freightways Limited | Full Year Result | 15 August 2016
Slide 12: Information Management
Information Management Jun‐16 Jun‐15** Increase $M $M Operating Revenue 136.8 121.7 12.5% EBITDA* 33.2 28.7 15.8% EBITA* 28.4 24.1 18.0% EBITA Margin* 21% 20% * excluding non‐recurring items ** Jun15 included 5 extra trading days Freightways Limited | Full Year Result | 15 August 2016
Slide 13: Balance Sheet – Key Points
Balance Sheet – Key Points Total Assets have decreased since FY15 by $14m, primarily as a result of $7m less cash on hand and the $6.3m write‐down of the Convair fleet and spare parts. Total Liabilities have decreased since FY15 by $21m, primarily as a result of a reduction in bank borrowings.
Slide 14: Cash Flow – Key Points
Cash Flow – Key Points Cash from operations was similar to the PCP at more than $90m. Net cash inflows from operating activities (i.e. after deducting interest and tax payments) were similar to the PCP at more than $60m. Cash outflows from investing activities were $17m lower than the PCP, mostl
Slide 15: Capital Expenditure & Depreciation
Capital Expenditure & Depreciation 2016 2017 Actual Forecast $M $M Capital Expenditure 17 23 Depreciation 11 12 Freightways Limited | Full Year Result | 15 August 2016
Slide 16: Final Dividend
mlatsl Dividend Freightways
Slide 17: Subsequent Event - Final Dividend
Subsequent Event ‐ Final Dividend Final dividend: 14.5 cps Imputation credits: 5.6389 cps (at 28% tax rate) Supplementary dividend: 2.5588 cps Record date: 16 September 2016 Payment date: 3 October 2016 No DRP was offered in respect of this final dividend Freightways Limited | Full Year
Slide 18: Business Strategy
BUSINESS Strategy
Slide 19: Business Strategy
Business Strategy Develop organic growth opportunities Diversification by industry and geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities Freightways Limited | Full Year Result | 15 August 2016
Slide 20: Express Package & Business Mail
Express Package & Business Mail Network Courier Point‐to‐Point Business Mail Support Freightways Limited | Full Year Result | 15 August 2016
Slide 21: Information Management
Information Management Manage Transform Destroy Archive Security Imaging & document capture Secure destruction DataBank & data security Automated accounts payable eDestruction FileSaver Workflow Solutions Product destruction Secure Distribution Services Digital mailroom Paper recycling LitSupport –
Slide 22: Outlook
Freightways
Slide 23: Outlook
Outlook FRE will continue to adapt and position itself to realise the growth opportunities that exist in all the markets it operates in Subject to factors beyond FRE control, overall year‐on‐year earnings growth is expected: − The Express Package & Business Mail division is expected to continue
Slide 24: Conclusion
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Slide 25: Conclusion
Conclusion • Good trading results in both the Express Package & Business Mail division and the Information Management division contributed to a 2016 result above the prior year • Subject to factors beyond its control, FRE expects to again increase its year‐on‐year earnings in 2017 • The Directors ac
Slide 26: Full Year Results
FULL YEAR Freightways RESULTS