Slide 1: Freightways Full Year Result Presentation
Freightways Full Year Result Presentation 17 August 2015
Slide 2: This presentation relates to the Freightways Limited NZX announcement
This presentation relates to the Freightways Limited NZX announcement and media release of 17 August 2015. As such, it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. The full year consolidated financial result presented is drawn from au
Slide 3: Agenda
Agenda 2015 Full Year Highlights Operating Performance Business Strategy Outlook Conclusion Full Year Result | August 2015 Page 3
Slide 4: 2015 Full Year Highlights
2015 Full Year Highlights Full Year Result | August 2015 Page 4
Slide 5: General Highlights
General Highlights A strong full year result An 11% increase in dividend compared to the pcp Improved performance from all businesses, in all regions Successful implementation of organic and strategic growth strategies 1 Full Year Result | August 2015 Page 5
Slide 6: Financial Highlights
Financial Highlights Underlying Underlying 2015 Non-recurring Increase $M Note trading result trading result % Result items Jun-15 Jun-14 Revenue 479.5 - 479.5 432.3 10.9% EBITDA (i) 86.5 9.0 95.5 83.9 13.9% EBITA (ii) 73.8 9.0 82.8 72.0 15.0% NPATA (iii) 44.8 6.5 51.3 44.0 16.6% NPAT (iv) 43.3 6.5
Slide 7: Non-recurring items
Non-recurring items 2015 result included 5 more trading days than PCP: approximate benefit $7m revenue, $2m EBITDA & EBITA and $1.4m NPATA and NPAT Directors believe non-recurring items should be excluded when assessing the underlying trading performance of the company. The following non-recurri
Slide 8: Operating Performance
Operating Performance Full Year Result | August 2015 Page 8
Slide 9: Operating Revenue
Operating Revenue 600 500 400 $M 300 200 100 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year Ended 30 June 2nd Half • 11% higher revenue compared to PCP 1st Half Full Year Result | August 2015 Page 9
Slide 10: EBITA
EBITA 90 80 70 60 50 $M 40 30 20 10 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year Ended 30 June 2nd Half • 15% higher EBITA compared to PCP 1st Half NB: This graph represents the operating profit before interest, tax and amortisation of intangibles, exclusive of any non-rec
Slide 11: Business Segments Operating Performance (Year ended June 2015)
Business Segments Operating Performance (Year ended 30 June 2015) Revenue EBITA* 25% 28% 75% 72% Express Package & Business Mail Information Management * Excludes non-recurring items 1 Full Year Result | August 2015 Page 11
Slide 12: Express Package & Business Mail
Express Package & Business Mail Jun-15 Jun-14 Increase $M $M % Operating Revenue 359.9 331.9 8.4% EBITDA* 68.3 60.7 12.6% EBITA* 61.7 54.5 13.2% EBITA Margin* 17.1% 16.4% * Excludes non-recurring items Full Year Result | August 2015 Page 12
Slide 13: Information Management
Information Management Jun-15 Jun-14 Increase $M $M % Operating Revenue 121.7 102.7 18.4% EBITDA* 28.7 24.4 17.9% EBITA* 24.1 20.1 20.2% EBITA Margin* 19.8% 19.5% * Excludes non-recurring items 1 Full Year Result | August 2015 Page 13
Slide 14: Balance Sheet – Key Points
Balance Sheet – Key Points Total Assets and Total Liabilities have increased since FY14 by $45m and $36m, respectively, primarily as a result of acquisitions completed during the year. Approx. $4m was borrowed during the year to assist in funding capital expenditure and acquisitions. However, du
Slide 15: Cash Flow – Key Points
Cash Flow – Key Points Cash inflows from operating activities increased by $9m to $68m compared to the PCP, assisted by strong trading performance and stable interest costs. Cash outflows from investing activities were $2m higher than the PCP. Reflects $6m more being spent on acquisitions this y
Slide 16: Subsequent Event – Final Dividend
Subsequent Event – Final Dividend Final dividend: 12.5 cps Imputation credits: 4.8611 cps (at 28% tax rate) Supplementary dividend: 2.2059 cps Record date: 18 September 2015 Payment date: 5 October 2015 No DRP offered in respect of the 2015 Final Dividend 1 Full Year Result | August 2015
Slide 17: Business Strategy
Business Strategy Full Year Result | August 2015 Page 17
Slide 18: Business Strategy
Business Strategy Develop organic growth opportunities Diversification: Industry and Geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities Full Year Result | August 2015 Page 18
Slide 19: Express Package & Business Mail
Express Package & Business Mail Network Courier Point-to-Point Business Mail Support 1 Full Year Result | August 2015 Page 19
Slide 20: Information Management
Information Management New Zealand Australia Document Storage Data Storage Document Destruction Ancillary Services Full Year Result | August 2015 Page 20
Slide 21: Capital Expenditure & Depreciation
Capital Expenditure & Depreciation 2015 2016 Actual Forecast $M $M Capital Expenditure 14 20 Depreciation & software 13 13 amortisation Full Year Result | August 2015 Page 21
Slide 22: Outlook
Outlook Full Year Result | August 2015 Page 22
Slide 23: Outlook
Outlook Well positioned to benefit from the growth opportunities that exist in the markets we operate in Express package market expected to continue to expand, albeit not at the same rate as seen in FY15 result Our smaller business mail operations of DX Mail and Dataprint expected to sustain t
Slide 24: Conclusion
Conclusion Full Year Result | August 2015 Page 24
Slide 25: Conclusion
Conclusion FRE has delivered a strong FY15 result Evident in this result are: - the positive features of the markets that FRE operates in; - the resilience and adaptability of the FRE business model to accommodate growth and changing market circumstances; and - the successful execution of growth
Slide 26: Freightways Full Year Result Presentation
Freightways Full Year Result Presentation 17 August 2015