Mainfreight Limited · NZX:MFT

Mainfreight — H1 FY2012 Earnings Presentation

20 slides from Mainfreight's earnings presentation, November 2011

  1. Slide 1: Mainfreight Limited Half Year Result to September 2011

    MAINFREIGHT LIMITED HALF YEAR RESULT TO SEPTEMBER 2011

  2. Slide 2: Result to 30 September 2011 highlights

    f Net Profit NZ$ million Revenue EBITDA (before Abnormals) Result to 30 September 2011 892 90 892.90 64 37 64.37 29 59 29.59 Year on year variance 38% 83% 80% Year on year (excluding Europe) 5% 31% 45% ƒ Interim dividend declared of 12.0 cents per share; 41% of net profit ƒ Increase of 3.0 cents per

  3. Slide 3: Group revenue, net surplus and EBITDA

    Ratio* This Last Year This Last NZ$ million Year Variance Year Year Group Revenue – New Zealand 215.5 194.1 11% 24% 30% – Offshore 677.4 677 4 450.8 450 8 50% 76% 70% Total Group Revenue 892.9 644.9 38% Net Surplus p New Zealand 11.5 8.5 34% 39% 52% Net Surplus Offshore 18.1 8.0 129% 61% 48% Net Sur

  4. Slide 4: Net debt, interest cover and leverage

    NZ$ million Sep‐11 Sep 11 Mar‐11 Mar 11 Term borrowings 284.0 97.1 Finance lease 59 5.9 05 0.5 Deposits (44.8) (50.1) T t l Total 245 1 245.1 47 5 47.5 ƒ Interest cover 11.9 times ƒ Net debt to EBITDA 1.73 times

  5. Slide 5: Operating cash flow and capex

    NZ$ million This Year Last Year Operating cash flow 31.9 28.2 ƒ Working capital movement included bonus payout $9m higher than prior year ƒ Net capex $29.2 million ($19.1 million property) ƒ Wellington ll NZ$9m $ ƒ Paris €1m ƒ Romania €2m ƒ Ostende Ot d €1 €1m ƒ Property capex for next six months $2

  6. Slide 6: Revenue by region

    Revenue $000 This Year Last Year Variance NZ Domestic: NZ$ 152,426 136,828 11% NZ International: NZ$ 63,086 57,326 10% AU Domestic: AU$ 95,585 82,473 16% AU International: AU$ 89,267 92,349 ( ) (3)% USA: US$ 165,145 149,041 11% Asia: US$ 15,396 13,386 15% Europe: EU€ 124,065 0 – Total Group: NZ$ 892

  7. Slide 7: EBITDA by region

    EBITDA $000 This Year Last Year Variance NZ Domestic: NZ$ 19,641 15,611 26% NZ International: NZ$ 2,605 2,158 21% AU Domestic: AU$ 8,123 4,780 70% AU International: AU$ 2,551 2,211 15% USA: US$ 6,845 4,739 44% Asia: US$ 1,152 1,289 (11)% Europe: EU€ 10,588 0 – Total Group: NZ$ 64,369 35,133 83% ƒ Eu

  8. Slide 8: New Zealand results

    NZ$ million This Year % of Rev Last Year % of Rev Sales revenue 215.51 194.15 EBITA 17 58 17.58 8 2% 8.2% 13 28 13.28 6 8% 6.8% EBITDA 22.25 10.3% 17.77 9.2% ƒ Increased revenue and profit contributions from all divisions

  9. Slide 9: New Zealand Domestic

    NZ$ million This Year % of Rev Last Year % of Rev Sales revenue 152.43 136.83 EBITA 15 08 15.08 9 9% 9.9% 11 25 11.25 8 2% 8.2% EBITDA 19.64 12.9% 15.61 11.4% ƒ Sales growth: 2/3 new business (market share); 1/3 increased trading ƒ Increased tradingg from topp 100 customers ƒ Primarily in Food & Bev

  10. Slide 10: Rail services and logistics volumes

    ƒ Rail R il services i to t Wellington W lli t from f Auckland A kl d only l ƒ 3 units per day ƒ South Island to commence in New Year ƒ Logistics volumes strong through September and October ƒ Customer gains contribute ƒ Increased stock‐turns from Agriculture, Hardware & DIY, and Food sectors

  11. Slide 11: New Zealand International

    NZ$ million This Year % of Rev Last Year % of Rev Sales revenue 63.09 57.33 EBITA 2 50 2.50 4 0% 4.0% 2 03 2.03 3 5% 3.5% EBITDA 2.61 4.1% 2.16 3.8% ƒ Import and Export growth – air freight and sea freight ƒ Perishable volume only category with nil growth over prior year ƒ Strong Trans‐Tasman volume

  12. Slide 12: Australia results

    AU$ million This Year % of Rev Last Year % of Rev Sales revenue 184.85 174.82 EBITA 9 46 9.46 5 1% 5.1% 5 78 5.78 3 3% 3.3% EBITDA 10.67 5.8% 6.99 4.0% ƒ Sales growth across Domestic and Logistics divisions ƒ Profitability improvement across all divisions – notably Domestic

  13. Slide 13: Australian Domestic

    AU$ million This Year % of Rev Last Year % of Rev Sales revenue 95.59 82.47 EBITA 7 24 7.24 7 6% 7.6% 3 94 3.94 4 8% 4.8% EBITDA 8.12 8.5% 4.78 5.8% ƒ Sales growth: 2/3 new business; 1/3 increased trading ƒ As with New Zealand, strong focus on Food & Beverage, Agricultural and Hardware/DIY H d /DIY

  14. Slide 14: Australian International

    AU$ million This Year % of Rev Last Year % of Rev Sales revenue 89.27 92.35 EBITA 2 22 2.22 2 5% 2.5% 1 83 1.83 2 0% 2.0% EBITDA 2.55 2.9% 2.21 2.4% ƒ Sales growth impeded by poor export volume – particularly air freight ƒ Import volumes steady ƒ Customer loss impacted Customs revenues ƒ Improving r

  15. Slide 15: USA results

    US$ million This Year % of Rev Last Year % of Rev Sales revenue 165.15 149.04 EBITA 5 73 5.73 3 5% 3.5% 3 66 3.66 2 5% 2.5% EBITDA 6.85 4.2% 4.74 3.2% ƒ Improving performance from Mainfreight USA

  16. Slide 16: USA Domestic

    US$ million This Year % of Rev Last Year % of Rev Sales revenue 98.55 82.76 EBITA 2.15 2.2% (0.55) (0.7)% EBITDA 2.88 2.9% 0.24 0.3% ƒ Revenue growth assisted by market share gains ƒ Revenue split: Domestic 57%; International 43% ƒ Divisional split effective September ƒ Domestic / International ƒ Se

  17. Slide 17: USA International

    US$ million This Year % of Rev Last Year % of Rev Sales revenue 66.59 66.28 EBITA 3 58 3.58 5 4% 5.4% 4 21 4.21 6 4% 6.4% EBITDA 3.96 6.0% 4.50 6.8% ƒ Static revenues reflecting less than expected FCL traffic and rate reductions across trade lanes – 2nd quarter performance at last year’s levels ƒ Im

  18. Slide 18: Asia results

    US$ million This Year % of Rev Last Year % of Rev Sales revenue 15.40 13.39 EBITA 1 02 1.02 6 6% 6.6% 1 20 1.20 9 0% 9.0% EBITDA 1.15 7.5% 1.29 9.6% ƒ Revenue growth primarily US bound, small European growth on account of Bosman ƒ Margins under d pressure withh air ffreight h commitments to US – yie

  19. Slide 19: Europe results

    € million This Year % of Rev Last Year % of Rev Sales revenue 124.07 119.88 EBITA 6 27 6.27 5 1% 5.1% 7 21 7.21 6 0% 6.0% EBITDA 10.59 8.5% 11.21 9.4% ƒ Second quarter impact from July/August holiday period ƒ September/October trading satisfactorily ƒ Air & Ocean (International) performance poor ƒ N

  20. Slide 20: Outlook and Financial Calendar

    ƒ Third quarter trading remains strong ƒ Product mix and worldwide network development will assist us to withstand current global economic uncertainties ƒ Strong focus on gaining more market share in larger economies ƒ Further network expansion continues to be evaluated Financial Calendar Quarter Re

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