Slide 1: Freightways Half Year Presentation
Freightways Half Year Presentation 23 February 2015 1
Slide 2: This presentation relates to the Freightways Limited NZX announcement and media release of 23
This presentation relates to the Freightways Limited NZX announcement and media release of 23 February 2015. As such, it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. The half year financial result presented is drawn from unaudited fin
Slide 3: Agenda
Agenda 2015 Half Year Highlights Operating Performance Business Strategy Outlook Conclusion Half Year Result | Feb 2015 Page 3
Slide 4: 2015 Half Year Highlights
2015 Half Year Highlights Half Year Result | Feb 2015 Page 4
Slide 5: General Highlights
General Highlights Record result and dividend (20% above prior year’s interim dividend) Improved performance from all businesses, in all regions Organic growth strategies successful: - Continued support and increased activity from customers - Increasing demand for newly-introduced digital serv
Slide 6: Financial Highlights
Financial Highlights Dec-14 Dec-13 Increase $M $M % Operating Revenue 241.8 218.3 10.8% EBITDA 48.6 42.0 15.6% EBITA 42.4 36.2 17.3% NPATA 26.9 22.2 21.1% NPAT 26.3 21.7 21.0% 1 Half Year Result | Feb 2015 Page 6
Slide 7: Operating Performance
Operating Performance Half Year Result | Feb 2015 Page 7
Slide 8: Operating Revenue
Operating Revenue 500 400 300 $M 200 100 - 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 Half Year Result | Feb 2015 Page 8
Slide 9: EBITA
EBITA 80 70 60 50 $M 40 30 20 10 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year ended 30 June 2nd Half • 17% 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-recurring i
Slide 10: Business Segments Operating Performance (Half Year ended December 2014)
Business Segments Operating Performance (Half Year ended 31 December 2014) Revenue EBITA 24% 25% 76% 75% Express Package & Business Mail Information Management 1 Half Year Result | Feb 2015 Page 10
Slide 11: Express Package & Business Mail
Express Package & Business Mail Dec-14 Dec-13 Increase $M $M % Operating Revenue 185.2 168.1 10.2% EBITDA 35.9 30.9 16.4% EBITA 32.7 27.9 17.3% EBITA Margin 17.6% 16.6% Half Year Result | Feb 2015 Page 11
Slide 12: Information Management
Information Management Dec-14 Dec-13 Increase $M $M % Operating Revenue 57.7 51.3 12.4% EBITDA 13.5 11.7 15.3% EBITA 11.3 9.6 18.0% EBITA Margin 19.6% 18.6% 1 Half Year Result | Feb 2015 Page 12
Slide 13: Balance Sheet – Key Points
Balance Sheet – Key Points Total Assets and Total Liabilities have increased since FY14 by $34m and $27m, respectively, primarily as a result of the acquisitions completed during the year. Approx. $13m was borrowed during the half year to assist in funding acquisitions and capital expenditure. D
Slide 14: Cash Flow – Key Points
Cash Flow – Key Points Cash from operations was $50m, assisted by increased trading and good working capital management. Net cash inflows from operating activities (i.e. after deducting interest and tax payments) of $33m, were up $9m compared to the PCP. Cash outflows from investing activities w
Slide 15: Capital Expenditure
Capital Expenditure 2015 2015 Half Year Full Year Actual Forecast Capital Expenditure $7m $17m Depreciation $6m $13m Half Year Result | February 2014 Page 15
Slide 16: Subsequent Event – Interim Dividend
Subsequent Event – Interim Dividend Interim dividend: 12.00 cps Imputation credits: 4.6667 cps (at 28% tax rate) Supplementary dividend: 2.1176 cps Record date: 20 March 2015 Payment date: 7 April 2015 No DRP offered in respect of this dividend 1 Half Year Result | Feb 2015 Page 16
Slide 17: Business Strategy
Business Strategy Half Year Result | Feb 2015 Page 17
Slide 18: Business Strategy
Business Strategy Develop organic growth opportunities Diversification by industry and geography Positioning, People, Performance, Profit Explore complementary acquisition and alliance opportunities Half Year Result | Feb 2015 Page 18
Slide 19: Express Package & Business Mail
Express Package & Business Mail Network Courier Point-to-Point Business Mail Support 1 Half Year Result | Feb 2015 Page 19
Slide 20: Information Management
Information Management New Zealand Australia Document Storage Data Storage Document Destruction Ancillary Services Half Year Result | Feb 2015 Page 20
Slide 21: Outlook
Outlook Half Year Result | Feb 2015 Page 21
Slide 22: Outlook
Outlook Express Package & Business Mail and Information Management markets remain positive and FRE businesses well-positioned to benefit from related opportunities Express Package market expansion from increased activity amongst existing users and new volume created by online retailers Busines
Slide 23: Conclusion
Conclusion Half Year Result | Feb 2015 Page 23
Slide 24: Conclusion
Conclusion FRE has delivered another record 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 adapt to changing market circumstances; and - the successful execution
Slide 25: Freightways Half Year Presentation
Freightways Half Year Presentation 23 February 2015 25