Slide 1: Half Year Results
HALF YEAR RESULTS 20 February 2017
Slide 2: Agenda
HY17 HEADLI NE HEADLI NE HEADLI NE AGENDA • Highlights • Operating Performance • Interim Dividend • Business Strategy • Outlook • Conclusion
Slide 3: Highlights
HY17 HEADLI NE HEADLI NE HEADLI NE HIGHLIGHTS
Slide 4: General Highlights
HY17 HEADLI NE GENERAL HIGHLIGHTS HEADLI NE HEADLI NE • Strength of underlying volume growth and margins in the EP&BM division • Progress to budget and timetable of two major building projects and related relocations • Execution of robust contingency plans that ensured minimal service disruption, de
Slide 5: Financial Highlights
HY17 HEADLI NE FINANCIAL HIGHLIGHTS HEADLI NE HEADLI NE Underlying trading result Dec-16 Non-recurring $M Note Increase Result items Dec-16 Dec-15 Revenue 272.8 - 272.8 254.9 7.0% EBITDA (i) 55.8 4.0 51.8 51.2 1.2% EBITA (ii) 50.1 4.0 46.1 45.0 2.4% NPATA (iii) 34.8 4.5 30.3 28.7 5.6% NPAT (iv) 34.0
Slide 6: Non-Recurring Items
HY17 HEADLI NE NON-RECURRING ITEMS HEADLI NE HEADLI NE • A non-recurring benefit before tax of $5.6m ($5.6m after tax) relating to previously accrued final acquisition payments that are no longer expected to be required. The interim dividend was calculated exclusive of this non-cash benefit. • A non
Slide 7: Operating Performance
HY17 HEADLI NE HEADLI NE HEADLI NE OPERATING PERFORMANCE
Slide 8: Operating Revenue
HY17 HEADLI NE Operating Revenue HEADLI NE HEADLI NE 600 500 400 $M 300 200 100 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Ended 30 June 2nd Half 1st Half 1
Slide 9: EBITA
HY17 HEADLI NE EBITA HEADLI NE HEADLI NE 100 90 80 70 60 $M 50 40 30 20 10 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Ended 30 June 2nd Half NB: This graph represents the operating profit before interest, tax and amortisation of 1st Half intangibles, exclusive of any non
Slide 10: Business Segments Operating Performance
HY17 HEADLI NE Business Segments Operating Performance HEADLI NE (Half year ended 31 December 2016) HEADLI NE Revenue EBITA* 26% 27% 74% 73% EP&BM * Excluding non-recurring items IM 1
Slide 11: Express Package & Business Mail
HY17 HEADLI NE EXPRESS PACKAGE & BUSINESS MAIL HEADLI NE HEADLI NE Dec-16 Dec-15 Change $M $M Operating 202.5 186.8 8.4% Revenue EBITDA 37.3 35.4 5.1% EBITA 34.8 32.4 7.4% EBITA Margin 17% 17% 1
Slide 12: Information Management
HY17 HEADLI NE INFORMATION MANAGEMENT HEADLI NE HEADLI NE Dec-16 Dec-15 Change $M $M Operating 71.1 69.1 2.9% Revenue EBITDA* 15.8 16.5 (4.3)% EBITA* 13.4 14.2 (5.6)% EBITA Margin* 19% 20% * Excluding non-recurring items 1
Slide 13: Balance Sheet – Key Points
HY17 HEADLI NE BALANCE SHEET – KEY POINTS HEADLI NE HEADLI NE • Total Assets have increased since FY16 by $23m, primarily as a result of higher accounts receivable at the end of half year, following a very busy Christmas period. Capital expenditure and acquisitions also contributed to higher recorde
Slide 14: Cash Flows – Key Points
HY17 HEADLI NE CASH FLOWS – KEY POINTS HEADLI NE HEADLI NE • Cash generated from operations was similar to the PCP at just under $50m. Net cash inflows from operating activities (i.e. after deducting interest and tax payments) were $4m below the PCP at $29m due to the timing of tax payments. • Cash
Slide 15: Capital Expenditure & Depreciation
HY17 HEADLI NE CAPITAL EXPENDITURE & DEPRECIATION HEADLI NE HEADLI NE 2017 2017 Half Year Full Year Actual Forecast $M $M Capital Expenditure 10 24 Depreciation 6 12 1
Slide 16: Interim Dividend
HY17 HEADLI NE HEADLI NE HEADLI NE INTERIM DIVIDEND
Slide 17: Interim Dividend
HY17 HEADLI NE INTERIM DIVIDEND HEADLI NE HEADLI NE • Interim dividend: 13.0 cps • Imputation credits: 5.0556 cps (at 28% tax rate) • Supplementary dividend: 2.2941 cps • Record date: 17 March 2017 • Payment date: 3 April 2017 • No DRP was offered in respect of this interim dividend 1
Slide 18: Business Strategy
HY17 HEADLI NE HEADLI NE HEADLI NE BUSINESS STRATEGY
Slide 19: Business Strategy
HY17 HEADLI NE BUSINESS STRATEGY HEADLI NE HEADLI NE Develop organic growth opportunities Diversification by industry and geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities 1
Slide 20: Express Package & Business Mail
HY17 HEADLI NE EXPRESS PACKAGE & BUSINESS MAIL HEADLI NE HEADLI NE Network Courier Point‐to‐Point Business Mail Support 1
Slide 21: Information Management
HY17 HEADLI NE INFORMATION MANAGEMENT HEADLI NE HEADLI NE Manage Transform Destroy Archive Security Imaging & document capture Secure destruction DataBank & Data Security Automated accounts payable eDestruction FileSaver Workflow Solutions Product destruction Secure Distribution Services Digital mai
Slide 22: Outlook
HY17 HEADLI NE HEADLI NE HEADLI NE OUTLOOK
Slide 23: Outlook
HY17 HEADLI NE OUTLOOK HEADLI NE HEADLI NE • Volumes and activity experienced in this first half year result support Freightways’ expectations of again improving its overall year-on-year performance • As stated in previous market announcements, results from the Express Package & Business Mail divisi
Slide 24: Outlook continued
HY17 HEADLI NE OUTLOOK continued HEADLI NE HEADLI NE • Capital expenditure for the full year is expected to be approximately $24 million • Cash flows are expected to remain strong throughout the remainder of the 2017 financial year • Strategic growth opportunities, including acquisitions and allianc
Slide 25: Conclusion
HY17 HEADLI NE HEADLI NE HEADLI NE CONCLUSION
Slide 26: Conclusion
HY17 HEADLI NE CONCLUSION HEADLI NE HEADLI NE • Strong revenue growth and good margins in the EP&BM division were the primary contributors to this half year result, that is above the PCP • The outlook for the balance of the 2017 financial year remains positive • Directors acknowledge the outstanding
Slide 27: Half Year Results
HY17 HEADLI NE HEADLI NE HEADLI NE HALF YEAR RESULTS 20 February 2017