Freightways Group Limited · NZX:FRW
Freightways — Shareholder Meeting (October 2007)
29 slides from Freightways's shareholder meeting presentation, Oct 25, 2007
Slide 1: Annual Shareholders Meeting 25 October 2007
Annual Shareholders Meeting 25 October 2007
Slide 2: Wayne Boyd, Chairman
Freightways Wayne Boyd, Chairman
Slide 3: Agenda
Agenda ¾ Chairman’s introduction ¾ Managing Director’s review and trading update ¾ Resolutions
Slide 4: General Highlights
General Highlights • Core businesses have performed soundly in a challenging domestic marketplace • Emerging businesses have delivered strong growth • Acquisitions have established FRE’s presence in the Australian market • FRE has delivered another record result
Slide 5: Financial Highlights
Financial Highlights 2007 2006 Increase $000 $000 % Operating revenue 283,447 256,689 10% EBITDA 62,929 58,318 8% EBITA 56,531 53,360 6% NPAT 25,091 24,306 3% NPATA 30,901 29,276 6% Earnings per share (NPAT) 20 cents 19 cents 5%
Slide 6: Dividends
Dividends Jun-07 Dec-06 Jun-06 Dec-05 Dividend declared $11.6m $11.6m $11.2m $10.9m Cents per share 9.00 9.00 8.75 8.50 Full year (cps) 18.00 17.25 Key points: • Increase of 3% compared to 2006 • Fully Imputed • Was paid 1 October 2007
Slide 7: Dean Bracewell, Managing Director Review and Trading Update
Dean Bracewell, Managing Director Review and Trading Update
Slide 8: Managing Director's Presentation
Managing Director’s Presentation ¾ Industry overview and business description ¾ Business strategy ¾ Trading update ¾ Outlook
Slide 9: Express Package: Industry Overview and Business Description
Express Package Industry Overview and Business Description
Slide 10: Express Package Industry Overview
Express Package Industry Overview • Delivery of items up to 25kgs • Services embedded in supply chains of businesses • Consolidated industry structure • Growth underpinned by demand for Just-in-Time supply
Slide 11: Express Package Business Description
Express Package Business Description Network Courier Point-to-Point
Slide 12: Business Mail: Industry Overview and Business Description
Business Mail Industry Overview and Business Description
Slide 13: Business Mail Industry Overview
Business Mail Industry Overview • Deregulated postal services industry • NZ Post is the dominant operator • A number of niches make up the total market
Slide 14: Business Mail Business Description
Business Mail Business Description • Niche ‘business mail’ operator • Own national network • Profitable development and growth • Integrated with New Zealand Couriers
Slide 15: Information Management: Industry Overview and Business Description
Information Management Industry Overview and Business Description
Slide 16: Information Management Industry Overview
Information Management Industry Overview • Three distinct niches: - Document storage - Data storage - Document destruction • Underdeveloped, high growth market • Consolidated market structure
Slide 17: Information Management Business Description
Information Management Business Description Rest of New Zealand NSW VIC QLD Australia Document Storage --- --- --- Data Storage --- Document --- --- Destruction
Slide 18: Business Strategy
Business Strategy Hubs Shuttle Links Courier "Spoke" to/from area Geographic Area
Slide 19: Business Strategy
Business Strategy • Continued development of organic growth opportunities in Freightways’ existing three markets • Positioning, People, Performance, Profit • Explore complementary acquisition/alliance opportunities
Slide 20: Trading Update
Freightways Trading Update
Slide 21: Operating Revenue
Operating Revenue 300 250 200 2nd Half $M 150 1st Half 100 50 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Year Ended • 10% revenue growth compared to 2006 • 5-year compound average annual revenue growth of 9%
Slide 22: EBITA
EBITA 60 50 40 2nd Half $M 30 1st Half 20 10 - Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Year Ended • 6% EBITA growth compared to 2006 • 5-year compound average annual EBITA growth of 15%
Slide 23: Current Financial Performance
Current Financial Performance Qtr ended 30 September 2007 2006 Increase $000 $000 % Operating revenue 77,309 70,050 10% EBITD (EBITDA 2006) 16,218 15,564 4% EBIT (EBITA 2006) 14,489 13,973 4% NPAT (NPATA 2006) 7,687 7,666 - NB: 2007 numbers are drawn from unaudited management accounts
Slide 24: Outlook
Freightways Outlook
Slide 25: Outlook
Outlook • Near-term performance will be influenced by NZ economic conditions • Investment in people, infrastructure and customer service initiatives (competitive advantage) will continue • Characteristics of competitive environment expected to remain unchanged • Consistent application of market spec
Slide 26: Summary
Summary 9 Strong successful business 9 Positioned to deliver continuing earnings growth 9 Delivering an attractive dividend yield
Slide 27: Questions
Freightways Questions
Slide 28: Resolutions
Resolutions ¾ Re-election of Directors ¾ Increase in Directors’ fees ¾ Authority to fix Auditors’ remuneration
Slide 29: Annual Shareholders Meeting 25 October 2007
Annual Shareholders Meeting 25 October 2007
Freightways Group — Shareholder Meeting (October 2007) on 6ix