Slide 1: Half Year Presentation
Half Year Presentation 15 February 2010
Slide 2: This presentation relates to the NZX announcement and media release
This presentation relates to the Freightways Limited NZX announcement and media release of 15 February 2010. As such it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. These half year results are drawn from unaudited financial statements
Slide 3: Presentation
Presentation ¾ 2010 Half Year Highlights ¾ Operating Performance ¾ Business Strategy ¾ Outlook
Slide 4: Freightways
Freightways
Slide 5: 2010 Half Year Highlights
Freightways 2010 Half Year Highlights
Slide 6: General Highlights
General Highlights • A very satisfactory result overall in light of economic circumstances • Success of strategies has meant impact of economic downturn has not been as serious as it might have otherwise been • Despite strong focus on service quality and internal costs, FRE is still developing strat
Slide 7: Normalising of Financial Result for Prior Comparative Period (PCP)
Normalising of Financial Result for Prior Comparative Period (PCP) Impact of Dec-08 5 extra Dec-08 $000 trading $000 (reported) days (normalised) Operating Revenue 177,392 (6,000) 171,392 EBITDA 36,120 (1,500) 34,620 EBITA 31,492 (1,500) 29,992 NPAT 16,892 (1,085) 15,807 NB: 5 extra trading days in
Slide 8: Financial Highlights
Financial Highlights Dec-09 Dec-08 Dec-08 Variance to $000 $000 $000 normalised (reported) (normalised) % Operating Revenue 164,919 177,392 171,392 (4%) EBITDA 31,785 36,120 34,620 (8%) EBITA 26,860 31,492 29,992 (10%) NPAT 14,457 16,892 15,807 (9%) NB : For the purpo s es o f this pres entation, De
Slide 9: Operating Performance
Freightways Operating Performance
Slide 10: Operating Revenue
Operating Revenue 400 350 300 250 2nd Half $M 200 150 1st Half 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Ended 30 June • 4% lower revenue compared to ‘normalised’ PCP (7% lower against reported HY2009) • 10-year compound average annual revenue growth of 7%
Slide 11: Where Revenue Change Has Come From
Where Revenue Change Has Come From (compared to ‘normalised’ PCP) 180 171 (5.0% ) (1.5% ) 1.6% 0.9% 165 $M 160 140 HY2009 Organic Pricing New Business Acquisition HY2010 Growth Drivers
Slide 12: EBITA
EBITA 70 60 50 40 $M 2nd Half 30 1st Half 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Ended 30 June • 10% lower EBITA compared to ‘normalised’ PCP (15% lower against reported HY2009) • 10-year compound average annual EBITA growth of 10%
Slide 13: Business Segments
Business Segments Operating Performance – Half Year ended 31 December 2009 Revenue EBITA 80% 80% 20% 20% Express Package & Business Mail Information Management
Slide 14: Express Package & Business Mail
Express Package & Business Mail Dec-09 Dec-08 Dec-08 Variance to $000 $000 $000 normalised (reported) (normalised) % Operating revenue 133,358 148,273 142,616 (6%) EBITA 22,173 26,650 25,305 (12%) Margin 17% 18% 18% NB: Dec-08 amounts are normalised to remove 5 extra trading days from the PCP.
Slide 15: Information Management
Information Management Dec-09 Dec-08 Dec-08 Variance to $000 $000 $000 normalised (reported) (normalised) % Operating revenue 32,202 29,741 29,398 10% EBITA 5,415 5,734 5,579 (3%) Margin 17% 19% 19% NB: Dec-08 amounts are normalised to remove 5 extra trading days from the PCP.
Slide 16: Balance Sheet
Balance Sheet • Total Assets consistent with PCP and FY09, except for $12m in cash at FY09 since applied to debt reduction • Total Liabilities reduced due to: - debt reduction, following FRE’s capital management initiatives, and - a reduction in the derivatives liability balance • Issued Capital inc
Slide 17: Cash Flows - Key Points
Cash Flows - Key Points • Cash inflows from operating activities - $8m down on PCP due to lower sales and an additional tax instalment this period • Cash outflows from investing activities - $25m lower due to lesser acquisition activity, no major capital investment and the repayment of a loan by an
Slide 18: Interim Dividend
Interim Dividend • Interim dividend: 7.0 cps • Imputation credits: 3.0 cps • Supplementary dividend: 1.23 cps • Record date: 12 March 2010 • Payment date: 31 March 2010 • No DRP offered in respect of the 2010 Interim Dividend
Slide 19: Business Strategy
Freightways Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 20: Business Strategy
Business Strategy • Develop organic growth opportunities • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 21: Express Package & Business Mail
Express Package & Business Mail Network courier Point-to-point Business mail Support
Slide 22: Information Management
Information Management Business Description New Zealand NSW VIC QLD ACT SA WA Document Storage Data Storage Document --- --- --- Destruction
Slide 23: Outlook
Freightways Outlook
Slide 24: Capital expenditure
Capital expenditure 2010 Half Year Full Year Actual Forecast Capital expenditure $6m $13m Depreciation $5m $10m
Slide 25: Outlook
Outlook • Some positive signs emerging within FRE, albeit a sustained across-the-board improvement not yet evident, indicating continuing market volatility • Overall impact on FRE of an improving economy expected to be gradual • EP/BM division will benefit from recent quality market share wins, howe
Slide 26: Summary
Summary • FRE has again demonstrated its resilience and delivered a very satisfactory result given the effects of an economic downturn • Impact on FRE of an improving economy is expected to be gradual • Subject to business factors beyond its control, FRE remains very well positioned to reap the bene