Freightways Group Limited · NZX:FRW
Freightways — Shareholder Meeting (October 2023)
33 slides from Freightways's shareholder meeting presentation, Oct 26, 2023
Slide 1: Freightways Annual Shareholders Meeting 26 October 2023
FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING 2626 October October2023 2023 NZXNZX | ASX | ASX : FRW : FRW
Slide 2: Welcome and Introduction - Mark Cairns, Chairman
MARK CAIRNS Chairman BE(Hons), BBS, MMGT, FEngNZ, CFInstD WELCOME AND INTRODUCTION Page 2
Slide 3: Shareholder and Proxyholder Voting and Q&A Participation
Shareholder and Proxyholder Voting and Q&A Participation SHAREHOLDER & PROXYHOLDER VOTING Once the voting has been opened, the resolutions and voting options will allow voting. Click Vote and select To vote, simply click on the VOTE tab, and select your voting your voting direction. direction from t
Slide 4: Agenda
AGENDA Freightways Annual Shareholders Meeting • Chairman’s Welcome & Introduction • CEO’s Strategy and Trading Update • Voting and Questions • Resolutions Page 4
Slide 5: FY23 Highlights
REVENUE GROWTH REVENUE GROWTH FY23 HIGHLIGHTS 29 % 32 % EXPRESS PACKAGE ACROSS FREIGHTWAYS & BUSINESS MAIL REVENUE GROWTH NPAT* GROWTH 15 % 7 % ACROSS FREIGHTWAYS INFORMATION MANAGEMENT EBITA** GROWTH CASH FLOW 15 % ACROSS FREIGHTWAYS 26 % ACROSS FREIGHTWAYS * GAAP – Generally Accepted Accounting Pr
Slide 6: Dividend
OBJECTIVES: 1. The setting of the dividend is subordinated to the overall capital DIVIDEND structure of Freightways. When debt is considered high, the cash dividend will be reduced to allow for faster debt reduction 2. The dividend is set at a level that the Board expects to be sustainable in the me
Slide 7: Strategy and Trading Update - Mark Troughear, CEO
MARK TROUGHEAR Chief Executive Officer BMS, WAIKATO UNIVERSITY STRATEGY AND TRADING UPDATE Page 7
Slide 8: Three Horizons of Growth
THREE HORIZONS OF GROWTH We move you to a better place OUR CAPABILITIES STRIVE FOR EFFICIENCY DELIVER RELIABLY LOVE OUR CUSTOMERS ACT LIKE AN ENTREPRENEUR NETWORK DENSITY ALWAYS DELIVER ON TIME SALES APPROACH & CULTURE M&A GROWTH / INNOVATION ACTIVITIES HORIZON 1 HORIZON 2 HORIZON 3 BUSINESS DIVISIO
Slide 9: Three Horizons of Growth
THREE HORIZONS OF GROWTH We move you to a better place OUR CAPABILITIES STRIVE FOR EFFICIENCY DELIVER RELIABLY LOVE OUR CUSTOMERS ACT LIKE AN ENTREPRENEUR NETWORK DENSITY ALWAYS DELIVER ON TIME SALES APPROACH & CULTURE M&A GROWTH / INNOVATION ACTIVITIES HORIZON 1 HORIZON 2 HORIZON 3 BUSINESS DIVISIO
Slide 10: Sustainability – Our Key FY24 Initiatives
Sustainability – Our Key FY24 Initiatives SDG FREIGHTWAYS KEY FY24 INITIATIVES SDG#3 • Health and safety in employment: Injury reduction. TRIFR continues to reduce year GOOD HEALTH & WELLBEING on year • Our commitment is to improve Contractor earnings year on year SDG#8 DECENT WORK & ECONOMIC GROWTH
Slide 11: Carbon Emissions Reduction – Progress Update
Carbon Emissions Reduction – Progress Update TIMELINE INITIATIVE COMMENT Discovery being completed on specification standards for all new buildings, including: • Solar Panels 2023 Green building specification for new buildings • EV charging stations • Reticulating storm water • Recycled building mat
Slide 12: Q1 Trading Update
Q1 TRADING UPDATE • In NZ, we have experienced a continuation of same- • The Ruakura temperature-controlled facility has opened for customer decline in volumes but in AU we have Big Chill and customers will steadily be onboarded over the also seen the start of a similar slowdown in same- coming year
Slide 13: Q1 Consolidated Performance – Unaudited
Q1 Consolidated Performance – Unaudited Q1 FY24 Q1 FY23 Change Note $m $m % Operating Revenue 298.0 237.4 25.5 EBITDA (non-GAAP) (i) 55.4 49.5 11.9 EBITA (non-GAAP) (ii) 36.5 34.0 7.4 NPATA (non-GAAP) (iii) 21.6 21.0 2.9 NPAT (GAAP) (iv) 18.4 19.3 (4.7) NOTES i. Operating profit before interest, tax
Slide 14: Q1 Express Package & Business Mail
Q1 Express Package & Business Mail – Unaudited and excludes lease accounting Q1 FY24 Q1 FY23 Change $m $m % Operating Revenue 246.0 184.8 33.1 EBITDA (non-GAAP) 34.4 31.1 10.6 EBITA (non-GAAP) 30.4 27.9 9.0 EBITA Margin 12.4% 15.1% Results in this table are before NZ IFRS16 (Leases) and are accordin
Slide 15: Q1 Information Management
Q1 Information Management– Unaudited and excludes lease accounting Q1 FY24 Q1 FY23 Change $m $m % Operating Revenue 52.9 53.6 (1.3) EBITDA (non-GAAP) 8.4 9.7 (13.4) EBITA (non-GAAP) 6.4 7.5 (14.7) EBITA Margin 12.1% 14.0% Results in this table are before NZ IFRS16 (Leases) and are accordingly non-GA
Slide 16: NZ Network Courier Item Trend For Q1 FY24
NZ Network Courier Item Trend For Q1, FY24 as a % Of FY23 140.0% 120.0% 116.3% Average 2.3% 109.8% 107.9% 106.9% 104.3% 103.8% 102.1% 99.8% 100.6% 101.8% 99.2% 99.3% 100.0% 86.3% 80.0% % 60.0% 40.0% 20.0% 0.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 Matariki - Public Queens Holiday Memorial Day 2022 2023 WEEK
Slide 17: Conclusion & Outlook
We have a highly experienced and committed CONCLUSION & team, many of whom have been with us for decades. Our people will continue to be our greatest strength regardless of the economic OUTLOOK climate. As we enter a new year their safety and well-being remains foremost in our minds. ‒ Existing cust
Slide 18: Questions?
QUESTIONS? If you wish to ask a question, please simply raise your hand. For those joining online, select the “Q&A” tab on the right half of your screen at anytime. Type your question into the field and press “Send”. Your question will be immediately submitted. Page 18
Slide 19: Resolutions
RESOLUTIONS • That Mark Rushworth be re-elected as a director of Freightways • That Peter Kean be re-elected as a director of Freightways • That the total quantum of the annual directors’ fee pool be increased by $107,855 from an aggregate of $857,145 to an aggregate of $965,000, such aggregate amou
Slide 20: Resolution: Mark Rushworth
Resolution 1 MARK RUSHWORTH Re-elected as a director of Freightways. Page 20
Slide 21: Resolution: Peter Kean
Resolution 2 PETER KEAN Re-elected as a director of Freightways. Page 21
Slide 22: Resolution: Annual Directors' Fee Pool
Resolution 3 ANNUAL DIRECTORS’ FEE POOL That the total quantum of the annual directors’ fee pool be increased by $107,855 from an aggregate of $857,145 to an aggregate of $965,000, such aggregate amount to be divided amongst the directors as they deem appropriate. Page 22
Slide 23: Resolution: Auditors' Remuneration
Resolution 4 AUDITORS’ REMUNERATION That the directors are authorised to fix the Auditors’ remuneration. Page 23
Slide 24: 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 year ended 30 June 2023, which can be found in the NZX preliminary results announcement. NO OFFER OR INVESTMENT ADVICE This p
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Slide 26: Appendices
APPENDICES Freightways
Slide 27: Financial Summary - Year Ended 30 June 2023
Financial Summary - For the Financial Year Ended 30 June 2023 FY23 FY22 Change Note $m $m % Revenue 1,121.6 873.1 28.5 EBITDA (non-GAAP) i. 214.9 184.9 16.2 EBITA (non-GAAP) ii. 145.3 126.5 14.8 NPATA (non-GAAP) iii. 86.6 77.7 11.5 NPAT (GAAP) iv. 75.3 70.2 7.3 Basic EPS (cents) 43.1 42.3 NOTES i. O
Slide 28: Express Package & Business Mail – FY ended 30 June 2023
Express Package & Business Mail – For the financial year ended 30 June 2023 FY23 FY22 Change $m $m % Operating Revenue 911.1 689.0 32.2 EBITDA (non-GAAP) 169.8 142.2 19.4 EBITA (non-GAAP) 125.4 107.5 16.7 EBITA Margin 13.8% 15.6% NPAT (GAAP) 78.1 70.0 11.6 NOTES i. Results in this table are after NZ
Slide 29: Information Management – FY ended 30 June 2023
Information Management – For the financial year ended 30 June 2023 FY23 FY22 Change $m $m % Operating Revenue 214.3 187.1 14.6 EBITDA (non-GAAP) 56.4 55.2 2.1 EBITA (non-GAAP) 32.7 33.1 (1.3) EBITA Margin 15.3% 17.7% NPAT (GAAP) 18.0 18.2 (1.1) NOTES i. Results in this table are after NZ IFRS16 (Lea
Slide 30: Appendix. Unaudited Q1 FY24 Group Reconciliation
Appendix. unaudited FREIGHTWAYS GROUP Q1 FY24 Q1 FY24 Q1 FY24 Q1 FY23 Q1 FY23 Q1 FY23 $M $M $M $M $M $M Note POST NZ IFRS16 NZ IFRS16 PRE NZ IFRS16 POST NZ IFRS16 NZ IFRS16 PRE NZ IFRS16 ADJUSTMENT (NON-GAAP) ADJUSTMENT (NON-GAAP) Operating Revenue 298.0 - 298.0 237.4 - 237.4 EBITDA (non-GAAP) (i) 5
Slide 31: Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited)
Appendix. Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited) Q1 FY24 Q1 FY23 Change EXPRESS PACKAGE & BUSINESS MAIL $m $m % Operating Revenue 246.0 184.8 33.1 EBITDA (before NZ IFRS16) 34.4 31.1 10.6 Add: NZ IFRS16 adjustment 9.9 6.9 44.3 EBITDA (after NZ IFRS16) 44.3 38.0 16.6 EBITA (bef
Slide 32: Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited)
Appendix. Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited) Q1 FY24 Q1 FY23 Change INFORMATION MANAGEMENT $m $m % Operating Revenue 52.9 53.6 (1.3) EBITDA (before NZ IFRS16) 8.4 9.7 (13.4) Add: NZ IFRS16 adjustment 5.1 4.8 6.3 EBITDA (after NZ IFRS16) 13.5 14.5 (6.9) EBITA (before NZ IFR
Slide 33: Freightways Annual Shareholders Meeting
FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING 2626 October October2023 2023 NZXNZX | ASX | ASX : FRW : FRW
Freightways Group — Shareholder Meeting (October 2023) on 6ix