Slide 1: FY24 Results
FY24 Results For the full year ended 30 June 2024
Slide 2: Disclaimer
Disclaimer Read this presentation with the financial statements: The financial results in this presentation should be read in conjunction with the financial statements for the full year ended 30 June 2024, which can be found in the Freightways full year results announcement available on the NZX and
Slide 3: Agenda
Agenda Overview, Divisional Financial Summary Divisional Strategy Divisional Strategy Performance, and Capital (IM) (EP) and Outlook Management Mark Troughear Stephan Deschamps Neil Wilson Aaron Stubbing Chief Executive Officer Chief Financial Officer General Manager - FRW General Manager - EP FRW F
Slide 4: Our Four Lines of Business
Our Four Lines of Business Express Package & Temperature Information Waste Business Mail Controlled Management Renewal • B2B - overnight national • Refrigerated national • Physical storage and • Document Destruction network delivery - courier transport information management • Medical waste collecti
Slide 5: Our Trans-Tasman Footprint
Our Trans-Tasman Footprint AUSTRALIA (35% Revenue) NEW ZEALAND (65% Revenue) Whangarei Tauranga Darwin Auckland / North Shore Townsville Rotorua Hamilton / Putaruru Hawke's Bay New Plymouth Brisbane Taupo Whanganui Perth Palmerston North Sydney Nelson / Blenheim Wellington Adelaide Canberra Central
Slide 6: Financial Summary and Capital Management
Financial Summary and Capital Management FRW FY24 Results | Slide 6
Slide 7: FY24 Group Highlights
FY24 Group Highlights Revenue Growth EBITA* Growth NPAT Growth Dividend (Full Year) 7.8% 2.5% (5.8%) 37c * Non-GAAP (Generally Accepted Accounting Principles) FRW FY24 Results | Slide 7
Slide 8: FY24 Consolidated Performance
FY24 Consolidated Performance FY24 FY23 Change Notes $m $m % FY24 Performance Overview: Operating Revenue 1,209.2 1,121.6 7.8 • Resilient result in a challenging macro-economic environment EBITDA (non-GAAP) 1 229.1 214.9 6.6 • Supported by diversity of businesses across the Tasman and a level of fle
Slide 9: FY24 Consolidated Performance: Net Debt, EBITDA and Dividend
FY24 Consolidated Performance Net Debt | EBITDA Dividend 2024 2023 FY24 FY23 2.7x 2.8x 37cps 37cps post IFRS16 cps = Cents Per Share FRW FY24 Results | Slide 9
Slide 10: Divisional Performance
Divisional Performance FRW FY24 Results | Slide 10
Slide 11: Market Backdrop
Market Backdrop YOY GDP Growth Express Package Market Backdrop 7 • 4 quarters of negative GDP growth in NZ in the last 6 6 quarters, although NZ monetary policy now easing ‒ Has negatively impacted NZ Express Package 5 same-customer volumes • GDP growth in AU was more positive but still modest 4 com
Slide 12: FY24 Express Package & Business Mail Highlights
FY24 Express Package & Business Mail Highlights FY24 FY23 Change Notes $m $m % FY24 Performance Overview: Operating Revenue 999.1 911.1 9.7 • EPBM divisional revenue up 9.7% on the pcp with a full year of Allied EBITDA (non-GAAP) 1 181.9 169.8 7.1 • EPBM EBITA is up 2.4% on pcp EBITA (non-GAAP) 2 12
Slide 13: FY24 NZ Express Package Metrics
FY24 NZ Express Package Metrics Same-Customer Volumes Average Price Per Item EP Courier Pay Average Validated Addresses 5.5% H1 $8.50 $507 73% 5.0% H2 At June ‘24, Per courier / per day Of electronic ticketed excluding surcharges items consigned Local Deliveries PFE Per Residential Item B2C Items Fl
Slide 14: FY24 NZ Express Package Volume
FY24 NZ Express Package Volume H1 Volumes H2 Volumes FY24 Volumes NZ Network Express Item Trend Compared to FY23 1.6% 1.9% 0.1% Temu contributed to 1.6% of FY24 volume (all in H1) New Zealand Other EP Volumes: • NZ Network market share gains of c. 4% helped offset same-customer decline • Woolworths
Slide 15: FY24 AU Express Package Volume
FY24 AU Express Package Volume H1 Volumes H2 Volumes FY24 Volumes AU Network Express Item Trend Compared to FY23 13% 9% 11% Australia Other EP Volumes: • Allied has performed well over FY24. While same-customer volumes are flat, the investment in a larger sales team has delivered results with a stro
Slide 16: FY24 Information Management and Waste Renewal
FY24 Information Management and Waste Renewal FY24 FY23 Change Notes $m $m % FY24 Performance Overview: Operating Revenue 214.4 214.3 - • IM revenue was flat on the pcp overall with a mixed performance across the various lines of business: EBITDA (non-GAAP) 1 57.5 56.4 2.0 ‒ Document storage and act
Slide 17: Strategy Update
Strategy Update FRW FY24 Results | Slide 17
Slide 18: Three Horizons of Growth | Express Package
Three Horizons of Growth | Express Package Overview: Horizon 1. Extend And Defend | B2B • B2B - overnight national network delivery - courier and mail • Focus on a profitable market share gains • B2C - overnight and economy delivery - courier and mail • Continue to ensure service is a differentiator
Slide 19: Project Evolve | Express Package
Project Evolve | Express Package Overview: Benefits: • Project Evolve is a multi-year investment in modernising • Designed to improve our ability to efficiently Price for Effort pricing, billing and courier pay systems that support the (differentiate our pricing on the basis of effort) for a range o
Slide 20: Local Network Courier Pricing | Express Package
Local Network Courier Pricing | Express Package Background • Pricing structure hasn’t changed. A flat rate per item up to 25kg / 0.125m3 Average local rates have • Local pricing has not kept in step with increased only modestly congestion, geographical spread of cities in the last 25 years, and the
Slide 21: Three Horizons of Growth | Temperature Controlled
Three Horizons of Growth | Temperature Controlled Overview: Horizon 1. Extend And Defend | National Delivery • Pursue market share opportunities leveraging new infrastructure (trucks • Refrigerated national transport and depots) and improved service performance • Temperature controlled 3PL • Impleme
Slide 22: Three Horizons of Growth | Information Management
Three Horizons of Growth | Information Management Overview: Horizon 1. Extend And Defend | Storage • Document Destruction • Archive revenues and margins forecast for continued growth through a combination of pricing and new business. New customer growth expected • Digitalisation to be stronger in AU
Slide 23: Three Horizons of Growth | Waste Renewal
Three Horizons of Growth | Waste Renewal Overview: Horizon 1. Extend And Defend | Secure Destruction • Document Destruction • Implementing new pricing strategies to improve margin • Medical Waste • Continued focus on market share gains • High-Value Waste Recycling Waste Renewal Brands: Horizon 2. Gr
Slide 24: Disciplined Approach to M&A
Disciplined Approach to M&A Acquisition Strategy and Investment Criteria • Well defined target characteristics • Acquisitions aligned with strategy & operating culture Revenue and EBITA have improved year on year. • Disciplined approach to acting on opportunities Significant investments made in auto
Slide 25: Outlook
Outlook FRW FY24 Results | Slide 25
Slide 26: FY25 Outlook
FY25 Outlook • The economic climate is clearly tough in New Zealand in particular. We expect H1 to remain subdued and we are hopeful of a return to modest Volumes expected to organic growth in H2 remain stable despite • AU is slightly more buoyant but with no rate cuts expected before Christmas toug
Slide 27: Questions
Questions FRW FY24 Results | Slide 27
Slide 28: Appendices
Appendices FRW FY24 Results | Slide 28
Slide 29: Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16
Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 FREIGHTWAYS GROUP FY24 ($m) FY23 ($m) Post NZ IFRS16 NZ IFRS16 Pre NZ IFRS16 (non- Post NZ IFRS16 NZ IFRS16 Pre NZ IFRS16 Notes adjustment GAAP) adjustment (non-GAAP) Operating Revenue 1,209.2 - 1,209.2 1,121.6 - 1,121.6 EBITDA (non-GAAP) 1 229.
Slide 30: Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16
Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 EXPRESS PACKAGE & BUSINESS MAIL Notes FY24 ($m) FY23 ($m) Change (%) Operating Revenue 999.1 911.1 9.7 EBITDA (after NZ IFRS16) 1 181.9 169.8 7.1 Less: NZ IFRS16 adjustment (44.4) (34.3) 29.4 EBITDA (before NZ IFRS16) 137.5 135.5 1.5 EBITA (afte
Slide 31: Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16
Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 INFORMATION MANAGEMENT & Notes FY24 ($m) FY23 ($m) Change (%) WASTE RENEWAL Operating Revenue 214.4 214.3 - EBITDA (after NZ IFRS16) 1 57.5 56.4 2.0 Less: NZ IFRS16 adjustment (21.3) (19.0) 12.1 EBITDA (before NZ IFRS16) 36.2 37.4 (3.2) EBITA (a