Freightways Group Limited · NZX:FRW
Freightways — Investor Day (May 2019)
22 slides from Freightways's investor day presentation, May 23, 2019
Slide 1: Craigs Investor Day Presentation
CRAIGS INVESTOR DAY PRESENTATION
Slide 2: A heritage that started in 1964
A HERITAGE THAT STARTED IN 1964
Slide 3: Agenda
AGENDA 1 WHO WE ARE 2 TRACK RECORD STRATEGIC OPPORTUNITIES 3 PERFORMANCE 4 OUTLOOK INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 4: Who we are
WHO WE ARE BUSINESS TASKED 4000+ INCREDIBLE TENURE OF OWNERS WHO WITH FINDING STAFF AND WORK THEIR OPPORTUNITIES TEAMS CONTRACTORS NICHES TO GROW INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 5: Who we are
WHO WE ARE NZ Shareholder Split ~70 % OFFSHORE ~30% LISTED IN 6800+ SHAREHOLDERS 2003 INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 6: Our lines of business
OUR LINES OF BUSINESS EXPRESS PACKAGE BUSINESS MAIL INFORMATION SECURE MANAGEMENT DESTRUCTION NEW ZEALAND COURIERS DX MAIL TIMG AUSTRALIA & SHRED-X POST HASTE COURIERS DATAPRINT NEW ZEALAND MED-X CASTLE PARCELS TIMG NZ NOW COURIERS SUB60 KIWI EXPRESS SECURITY EXPRESS INVESTOR DAY PRESENTATION · 23 M
Slide 7: Freightways are experts in…
FREIGHTWAYS ARE EXPERTS IN… INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 8: Track record
TRACK RECORD INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 9: Operating revenue
OPERATING REVENUE 700 600 500 1H 400 $M 300 2H 200 100 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year Ended 30 June INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 10: EBITA
EBITA 100 90 80 70 60 1H $M 50 40 2H 30 20 10 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year Ended 30 June NOTE This graph represents the operating profit before interest, tax and amortisation of intangibles, exclusive of any non-recurring items INVESTOR DAY P
Slide 11: Dividend payment history
DIVIDEND PAYMENT HISTORY 35.00 30.00 25.00 Cents Per Share 20.00 15.00 10.00 5.00 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year Ended 30 June INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 12: Strategic opportunities
STRATEGIC OPPORTUNITIES INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 13: Express Package
EXPRESS PACKAGE ABOUT US OPPORTUNITY STRATEGY • #1 by market share and industry • Last mile is more expensive to • Requires a different pricing profitability deliver to – which results in lower proposition margins • B2B 75% of our volume, grows • Requires better visibility for around GDP levels, sta
Slide 14: Business Mail
BUSINESS MAIL ABOUT US OPPORTUNITY STRATEGY • Only operator competing with NZ • Continue to target customers • Build out the network to meet Post after the market was who require superior service and demand – remain nimble and deregulated in 1996 a combination of digital and influenced by customer d
Slide 15: Information Management
INFORMATION MANAGEMENT ABOUT US OPPORTUNITY STRATEGY • NZ is a high margin business, • Improve margins in AU through • Expand utilisation of our facilities 82% utilisation improved facility utilisation to 90% over 3 years • AU is growing well in document • Sell new services to the same • Help custom
Slide 16: Secure Destruction
SECURE DESTRUCTION ABOUT US OPPORTUNITY STRATEGY • Came from nowhere to become • Move into adjacent markets • Target business customers #1 in AU (and longstanding #1 in which require efficient: NZ) electronic waste pick up, medical waste • Built a business which recycles processing (separati
Slide 17: Performance outlook
PERFORMANCE OUTLOOK INVESTOR DAY PRESENTATION · 23 MAY 2019
Slide 18: Performance outlook FY19
PERFORMANCE OUTLOOK FY19 • Slowing same-customer growth for Express Package in the second half of FY19, particularly in March and April • We have re-secured the Group’s largest customer for another 3-year term, but at discounted rates which will flow through FY20 • Increased investment in growing th
Slide 19: Performance outlook FY20
PERFORMANCE OUTLOOK FY20 Risks • NZ Post has established a new pricing regime for bulk mail that directly targets the areas that DX delivers to and which will require DX to offer lower prices to retain this work • We expect softer organic Express Package B2B growth based on trading in the 2nd half o
Slide 20: The future at Freightways
THE FUTURE AT FREIGHTWAYS EXPRESS PACKAGE BUSINESS MAIL INFORMATION SECURE MANAGEMENT DESTRUCTION Express Package Business Mail is heavily Information Management A secure destruction and business is fuelled by digital and business generating recycling business driven profitable B2C services compleme
Slide 21: Disclaimer
DISCLAIMER This presentation has been prepared by Freightways Limited ("Freightways") for information purposes only. This presentation is not a product disclosure statement, prospectus or investment statement. Nothing in this presentation constitutes an invitation to subscribe for shares, securities
Slide 22: Thank you
THANK YOU