Mainfreight Limited · NZX:MFT
Mainfreight — Shareholder Meeting (July 2022)
23 slides from Mainfreight's shareholder meeting presentation, Jul 28, 2022
Slide 1: Mainfreight Limited Annual Meeting of Shareholders 28 July 2022
MAINFREIGHT LIMITED ANNUAL MEETING OF SHAREHOLDERS 28 JULY 2022
Slide 2: The Numbers … Financial Year 2022
The Numbers … Financial Year 2022 REVENUE Revenue up 47.2% to $5.22 billion PROFIT PBT up 86.5% to $489.4 million BEFORE TAX NET PROFIT Net profit up 88.9% to $355.4 million “Produced by 10,393 passionate Mainfreight people in 305 branches across 25 countries” Page 2
Slide 3: Our 3 Core Products
Our 3 Core Products Revenue: $1,915 million up 18.9% TRANSPORT PBT: $ 184 million up 30.8% Revenue: $ 583 million up 29.1% WAREHOUSING PBT: $ 55 million up 30.9% Revenue: $2,720 million up 83.6% AIR & OCEAN PBT: $ 250 million up 214.1% Page 3
Slide 4: Global Growth Outperforming NZ's Influence
Global Growth Outperforming NZ’s Influence NZ$ 2017 2022 New Zealand: $0.61B $1.13B REVENUE Offshore: $1.72B $4.09B PROFIT New Zealand: $ 69m $136m BEFORE TAX Offshore: $ 78m $353m Offshore Profit now 72% of total (in 2017 53%) Note: USA Revenue NZ$1.56B PBT NZ$145m All organic growth!! Page 4
Slide 5: Results Achieved by the Team
Results Achieved by the Team ▪ Strong economic activity ▪ Produced increased freight volumes ▪ Internationally and domestically ▪ Congested supply chains ▪ More stock being held in warehouses ▪ Greater levels of activity to get product to retail shelves ▪ Inflated shipping and airfreight rates ▪ Lim
Slide 6: Where we are now and opening next
Where we are now and opening next Page 6
Slide 7: Capex/Lease Investments for the Network
Capex/Lease Investments for the Network ▪ $540m next two years: ▪ $450m land and buildings ▪ $90m technology and other ▪ Land and building projects/owned ▪ Primarily NZ/Australia – Transport facilities ▪ Leases ▪ Worldwide – Warehouses/Transport facilities ▪ In total: 3 x land acquisitions 13 x new
Slide 8: Zaltbommel, Netherlands
Zaltbommel, Netherlands “Our biggest and one of our best” Page 8
Slide 9: Dallas, USA Cross-Dock
Dallas, USA Cross-Dock “Efficient end-loading cross-docks” Page 9
Slide 10: Melbourne, South Dandenong
Melbourne, South Dandenong “Warehousing and Transport together” Page 10
Slide 11: Hobsonville – Opens 1 August 2022
Hobsonville – Opens 1 August 2022 “Intensifying the network” Page 11
Slide 12: Favona, Auckland
Favona, Auckland 40,000 sq metre warehouse 5-star energy rating Page 12
Slide 13: Northlake, Texas Warehouse
Northlake, Texas Warehouse “Our biggest in the USA, so far!” Page 13
Slide 14: Sustainability
Sustainability ▪ Gross carbon emissions have increased 200,000 tonnes CO2-e reflecting growth and market share gains ▪ All 5 tracked emissions intensity measures have improved ▪ Intensity = emissions generated per tonne of freight moved ▪ Doubling branch solar generation capacity over the next 2 yea
Slide 15: Tools for Decarbonisation
Tools for Decarbonisation ▪ Battery Electric Vehicles: expect our electric fleet to increase substantially ▪ Fleet consisting of: ▪ New Zealand 5 ▪ Australia 8 ▪ Europe 2 ▪ USA (on order) ▪ Developing technology ▪ Current limitations in range, pay load and charging time Page 15
Slide 16: Tools for Decarbonisation
Tools for Decarbonisation ▪ Hydrogen: we continue to investigate ▪ Fuel Cell Electric Vehicles – expensive ▪ Hydrogen Combustion – dual fuel alongside diesel ▪ Biofuels: a transitionary tool… maybe ▪ Biofuel mandates – NZ and EU ▪ “Low” but not “no” emission ▪ Supply is difficult ▪ Modal Shifts: the
Slide 17: Core Strategies – Future
Core Strategies – Future ▪ Growth – organic ▪ Network expansion/intensification – domestically and globally ▪ Regionally within our network ▪ Internationally – Indonesia (Jakarta)/India – more to follow ▪ 3 core products ▪ Transport ▪ Warehousing ▪ Air & Ocean Convincing our customers to use all thr
Slide 18: Current Trading Environment
Current Trading Environment Results last 16 weeks of trading NZ$000 REVENUE* VAR % PBT VAR % New Zealand NZ$ 340,128 28.7% 42,030 55.9% Australia AU$ 298,593 28.2% 37,111 54.9% Americas US$ 257,511 41.4% 37,196 122.6% Europe EU€ 164,652 22.1% 14,519 77.8% Asia US$ 33,321 4.9% 9,745
Slide 19: Trading Update: 3 Core Products
Trading Update: 3 Core Products Results last 16 weeks of trading Revenue: $577.1 million up 18% TRANSPORT PBT: $ 66.0 million up 51% Revenue: $158.5 million up 30% WAREHOUSING PBT: $ 15.8 million up 22% Revenue: $650.0 million up 50% AIR & OCEAN PBT: $ 97.1 million up 136% “A competitive advantage”
Slide 20: Air & Ocean Environment
Air & Ocean Environment ▪ Port congestion / inland transport issues remain – USA/Europe ▪ Long-term fix ▪ No short-term resolutions ▪ A reduced peak season (Aug-Oct) may assist ▪ Sea Freight ▪ Contract rates / spot rates @ parity – while these rates are decreasing they remain inflated on pre-2019 le
Slide 21: Air & Ocean Environment
Air & Ocean Environment ▪ Air Freight ▪ Capacity improving albeit passenger baggage affecting space availability ▪ Supply chain security of importance ▪ Less reliance on China manufacturing ▪ Manufacturers finding alternative countries to ensure continuity of supply Page 21
Slide 22: Summary
Summary ▪ First 16 weeks’ performance pleasing ▪ Expectation of softening demand – Internationally, uncertain of “Peak” season Aug/Oct – particularly Asia to USA ▪ Retail stock holdings at elevated levels and expect consumer spend to alter towards services/travel sector/inflationary pressures ▪ May
Slide 23: Thanks for being part of our family
“Thanks for being part of our family” Page 23