Qube Holdings Ltd. · ASX:QUB
Qube — Shareholder Meeting (November 2017)
34 slides from Qube's shareholder meeting presentation, Nov 22, 2017
Slide 1: Chairman's address and Managing Director's Presentation – 2017 AGM
22 November 2017 ASX Announcement Chairman’s address and Managing Director’s Presentation – 2017 AGM Chairman’s Address 2017 was a very successful year for Qube as the company completed major strategic acquisitions while still managing to grow earnings and revenue in our core businesses around Austr
Slide 2: Highlights for the period
Highlights for the period include: Good revenue and earnings growth from both Logistics and Ports & Bulk divisions which were brought together under a Chief Operating Officer for the first time. Continued focus on safety with a further 8% improvement in lost time injuries and recordable injuries
Slide 3: Outlook
It is anticipated that the Sydney operations will commence consolidating some of its existing activities at Moorebank from FY19. The earnings from the Logistics division are also expected to be impacted by the poor grain harvest. As a result, only modest earnings growth is currently expected from th
Slide 4: Qube Holdings Limited Annual General Meeting
Qube Holdings Limited Annual General Meeting 22 November 2017 1
Slide 5: Disclaimer – Important Notice
Disclaimer – Important Notice ABN 14 149 723 053 The information contained in this Presentation or subsequently provided to the recipient whether orally or in writing by, or on behalf of Qube Holdings Limited (Qube) or any of its directors, officers, employees, agents, representatives and advisers (
Slide 6: Chairman's Address
Chairman’s Address (as above) 3
Slide 7: 2017 – Delivering A Platform For Growth
2017 – Delivering A Platform For Growth Transforming Logistics Supply Chains 4
Slide 8: FY17 Group Highlights
FY 17 Group Highlights Delivering a platform for continued growth Year in review Key metrics • Revenue and earnings growth across both operating divisions Statutory revenue Underlying revenue • Continued strong cash flow generation through scale, +13.5% $1,512.8 million +14.7% $1,513.7 million techn
Slide 9: FY17 Strategic milestones
FY 17 Strategic milestones Qube completed strategic acquisitions and proactively addressed funding needs Funding initiatives Placement of $306 $150 million Term Inaugural USPP undertaken $305 million ASX $350 million Capital Debt Facility with the funded post million to Canada to support listed Subo
Slide 10: Qube Today
Qube Today Geographical presence Queensland Brisbane Port Freight Terminal Western Australia Darwin Brisbane Port Empty Park Fremantle Freight Terminal Acacia Ridge Intermodal Terminal Fremantle Freight Empty Park Toowoomba Freight Terminal Jandakot Freight Terminal Cairns Townsville Freight Termina
Slide 11: Qube Today
Qube Today Operating divisions and strategic investments Logistics Division Ports & Bulk Division Strategic Assets Division Patrick Stevedores (50%) • Provides broad range of services for • Provides broad range of logistics services • Holds interests in strategically located • Qube owns a 50% intere
Slide 12: Qube's diversified operations
Qube’s diversified operations FY 17 indicative revenue by industry / product Qube Logistics Qube Ports & Bulk Other (incl Freight Forwarders & Ancilliary Other Iron Ore Project Work) Services 7.4% 12.0% 9.7% Container handling 7.0% & terminal services Facility Concentrate 19.3% Operations 7.7% 5.1%
Slide 13: Focus on Safety
Focus on Safety LTI LTIFR* Qube Holdings 25.0 21.2 20.0 16.8 16.1 16.7 15.0 13.5 11.6 10.0 6.6 5.0 4.6 3.2 2.6 2.4 0.0 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY17 *LTIFR – Lost Time Injury Frequency Rate • Maintain focus on providing safe workplace through our Zero Harm programs
Slide 14: FY18 Business Update
FY 18 Business Update Operating divisions • Expect modest underlying revenue and earnings growth Logistics • Reflects business mix, low grain volumes due to poor harvest (fixed cost bulk rail), competitive Division market conditions and operational inefficiencies in NSW until Moorebank is operationa
Slide 15: FY18 Business Update
FY 18 Business Update Ports & Bulk [video insertion] 12
Slide 16: FY18 Business Update
FY 18 Business Update Strategic investments • Moorebank construction progress and tenant leasing on track • AAT benefitting from strength in passenger vehicles and recovery in mining related equipment partly offset by reduced earnings in Melbourne Strategic Assets • Capex underway at Minto Propertie
Slide 17: Qube's vision becoming reality
Qube’s vision becoming reality Transforming Logistics Supply Chains 14
Slide 18: Qube's vision for enhanced supply chains
Qube’s vision for enhanced supply chains Incorporating the Customers need entire supply this capability but Container Container Container chain focusing on typically provided Investment in Final mile arrival at Patrick discharge/ transport & multi mode (rail, by express freight automation delivery p
Slide 19: Container transport challenges in Sydney
Container transport challenges in Sydney How to efficiently absorb the anticipated growth in container volumes? • Long term volume growth expected to be > CPI • 80% import containers passing through Port Botany travel within 50 km of the port Rail mode market share at Port Botany c. 40% 19.1% by 204
Slide 20: Patrick
Patrick 17
Slide 21: Patrick Rail Automation Project
Patrick Rail Automation Project More organised / methodical operations 18
Slide 22: Patrick Rail Terminal Development Proposal
Patrick Rail Terminal Development Proposal Proposed investment at Patrick being assessed to enable direct discharge straight to automated rail gantries for direct distribution 19
Slide 23: Moorebank Update
Moorebank Update Key achievements • Financial close – January 2017 • Signed lease with Target Australia • Commenced IMEX construction • Land preparation early works • Commenced rail connections • Submitted 4 planning applications for 600,000m2 warehouse operations • Construction of sales suite to be
Slide 24: IMEX and demolition progress
IMEX and demolition progress January 2017 21
Slide 25: IMEX and demolition progress
IMEX and demolition progress October 2017 22
Slide 26: IMEX and demolition progress
IMEX and demolition progress January 2017 23
Slide 27: IMEX and demolition progress
IMEX and demolition progress October 2017 24
Slide 28: Moorebank Update
Moorebank Update Demolition, Construction and Planning Updates • Demolition and pre-construction activities have progressed with significant works completed on both the IMEX site and Moorebank Logistics Park West site • Demolition at MPE at 30 September 2017: o Demolition of 245 buildings; 119,167m
Slide 29: Moorebank Update
Moorebank Update Construction activities commenced [video insertion] 26
Slide 30: Moorebank Update
Moorebank Update Tenants and FY 18 Capex • Finalised lease with Target • Qube Logistics well progressed in sourcing customers for its Moorebank warehouse Tenants • Well progressed with other prospective tenants with particular focus on ensuring reliable delivery of warehousing for existing committed
Slide 31: Moorebank Update
Moorebank Update Tenant Commitments Qube Future Qube Target IMEX Terminal Interstate Terminal Future Qube 28
Slide 32: Moorebank Update
Moorebank Update Indicative timeline Date Milestone Q3 – 2017 Commencement of IMEX terminal construction Q1 – 2018 Warehouse planning approval, commence warehouse construction Q1 – 2019 Commencement of operation of IMEX Rail Terminal Q2 – 2019 Commencement of new warehousing operations Q1 – 2021 Com
Slide 33: FY18 Outlook
FY 18 Outlook Strategy on track to deliver long term growth • In FY 18, overall market conditions expected to remain similar to FY 17 • Qube will continue to seek to deliver growth and maintain its strong market positions through its innovative and reliable logistics solutions and strong cost focus
Slide 34: Questions
Questions 31