Mainfreight Limited · NZX:MFT
Mainfreight — FY2015 Earnings Presentation
26 slides from Mainfreight's earnings presentation, May 2015
Slide 1: Mainfreight Limited Full Year Result to March 2015
MAINFREIGHT LIMITED FULL YEAR RESULT TO MARCH 2015
Slide 2: Result Summary
Result Summary Net surplus after tax and before abnormal items up 7.7% to NET SURPLUS $83.48 million Revenue up 6.8% to $2.05 billion REVENUE Excluding FX up 8.7% An increase of $130 million Another record figure for EBITDA: $162.20 million; up 8.7% EBITDA Excluding FX up 10.4% All regions ahead of
Slide 3: Dividend
Dividend Final dividend of 20.0 cents per share DIVIDEND Books close 10 July 2015; payment on 17 July 2015 Total dividend for year 34.0 cents per share, increase of 2.0 cents (6.25%) over the previous year
Slide 4: Capital Management
Capital Management NZ$ MILLION THIS YEAR LAST YEAR Operating cash flow 113.65 120.37 Abnormal gain of $12.15 million in last year’s numbers Capital expenditure totalled $130.90 million Land & Buildings: $100.3 million, including: Christchurch Rebuild $20.4 million Westney Road Extension $25.
Slide 5: Capital Management …
Capital Management … Capital Expenditure Expectations FY16 NZ$ million Total Capital 104.4 Property ‐ CHH/ AKL (Westney) / HAM Completion 14.3 ‐ Sundry 2.3 ‐ Hamilton Disposal (6.0) ‐ Christchurch (Air & Ocean) Land/Building 5.7 ‐ Christchurch (Owens) Land 10.5 ‐ Auckland (Southdown Ln) Building 3.5
Slide 6: Full Year Analysis: Revenue
Full Year Analysis: Revenue $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 542,667 505,189 7.4% Ï Australia: AU$ 490,646 458,473 7.0% Ï USA: US$ 422,163 363,565 16.1% Ï Asia: US$ 44,230 37,704 17.3% Ï Europe: EU€ 259,711 250,721 3.6% Ï Total Group: NZ$ 2,054,339 1,924,407 6.8% Ï (excl FX) 8.7% Ï
Slide 7: Full Year Analysis: EBITDA
Full Year Analysis: EBITDA $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 73,606 67,375 9.2% Ï Australia: AU$ 37,239 35,191 5.8% Ï USA: US$ 19,108 18,853 1.4% Ï Asia: US$ 4,989 3,523 41.6% Ï Europe: EU€ 11,913 8,922 33.5% Ï Total Group: NZ$ 162,195 149,187 8.7% Ï (excl FX) 10.4% Ï
Slide 8: Second Half Comparison: Revenue
Second Half Comparison: Revenue 2ND HALF 2ND HALF $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 286,728 262,042 9.4% Ï Australia: AU$ 254,432 234,227 8.6% Ï USA: US$ 215,254 185,446 16.1% Ï Asia: US$ 22,485 19,172 17.3% Ï Europe: EU€ 129,871 125,973 3.1% Ï Total Group: NZ$ 1,067,238 971,708 9.8
Slide 9: Second Half Comparison: EBITDA
Second Half Comparison: EBITDA 2ND HALF 2ND HALF $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 43,712 39,720 10.1% Ï Australia: AU$ 21,835 21,110 3.4% Ï USA: US$ 9,075 10,450 (13.2)% Ð Asia: US$ 2,751 1,703 61.5% Ï Europe: EU€ 6,721 4,954 35.7% Ï Total Group: NZ$ 92,898 85,885 8.2% Ï (excl FX)
Slide 10: New Zealand
New Zealand Satisfactory performance across all divisions Domestic Transport volumes increased by additional 150k consignments Occupation of new facilities at Christchurch, Auckland and Hamilton from May 2015 Logistics division saw reduced profits as construction disrupted utilisation and in
Slide 11: New Zealand …
New Zealand … Air & Ocean division again increased revenues across all modes Increasing market share inbound Asia trade lanes and dry air exports Air & Ocean network intensified – greater rural sector presence – small Dunedin acquisition New Air & Ocean facilities planned at Christchurch Air
Slide 12: New Zealand …
New Zealand … Expect consistent improvement across all divisions OUTLOOK Logistics will face increased costs of new facilities, but will also gain access to new markets Air & Ocean will continue its growth, particularly ex Asia
Slide 13: Australia
Australia Second‐half performance from Domestic Transport and Logistics disappointed Increased cost structures – labour / property costs Margins impacted through under‐utilised linehaul/ PUD (pick up and delivery) and new warehousing facilities Logistics utilisation affected by seasonal volu
Slide 14: Australia …
Australia … New Transport and Logistics facilities under construction for Melbourne and Perth Two branch domestic freight strategy for Melbourne Transport operations have introduced “limited carrier’s risk” for loss or damage ($2,000 per unit) from 1st April Prestons NSW - extension
Slide 15: Australia …
Australia … Air & Ocean profitability continues to improve Market share increasing inbound Perishable capability now in Melbourne, Sydney and Brisbane, and assisting outbound volumes Management change in place – looking for increased pace of growth Air & Ocean, Eagle Farm QLD
Slide 16: Australia …
Australia … Increased sales activity needed to see revenues improve further OUTLOOK Building costs will continue to impact results for Logistics and Transport in the short term Concern over Australian economic outlook in the short term Air & Ocean growth to continue First half result expecte
Slide 17: The Americas
The Americas Regional sales revenue much improved, driven by Mainfreight growth Stronger domestic volumes LCL – everyday freight Q4 saw volume (sales) slow Large Air & Ocean account reduced air freight volumes and margin Development of fixed road linehaul increasing direct costs Expect
Slide 18: The Americas
The Americas Separation of Logistics into standalone business/ facilities Los Angeles warehouse established – initial fixed cost Newark/Dallas in planning stage Air & Ocean growth improved, although margins disappointed Substantial customer gains expected next 3 months
Slide 19: The Americas …
The Americas … CaroTrans profitability and revenue growth disappointed Sales penetration / uptake poor Margins compromised via poor operational management Utilisation of containers Port disruptions Cargo repositioning Import development improving Providing greater inbound control E
Slide 20: The Americas …
The Americas … Domestic linehaul and product development advancing OUTLOOK MAINFREIGHT Returns to date too small vis‐à‐vis the size of market Air & Ocean growth focused on Euro/Asia trade lanes Expect new customer gains to assist growth expectations Operational efficiencies under review OU
Slide 21: Europe
Europe Improvement in sales and EBITDA performance Logistics is the biggest contributor, improving utilisation and margins (efficiency) Belgium management issues addressed Customer gains assisting Belgium turnaround More to do to gain benefits Air & Ocean growth gaining traction USA/As
Slide 22: Europe …
Europe … Expect ongoing improvement across network OUTLOOK More improvement still required, particularly Belgium/ France Domestic freight volumes improving Air & Ocean growth as Asia/USA trade lanes are developed Logistics returns – improvement expected to continue
Slide 23: Asia
Asia Good improvement in revenue growth and EBITDA Large increase in air freight volume USA port disruptions assisted Mostly ex Southern China / Hong Kong region Sales structure / numbers strengthened More in‐country sales volume Expect this to continue New branches opened Beijing
Slide 24: Asia …
Asia … Continuation of sales growth and EBITDA improvement OUTLOOK Stronger focus on European trade lane growth Southeast Asian development continuing Thailand profitable Singapore growing Vietnam presence will help US trade in particular
Slide 25: Group Outlook
Group Outlook Expect Australian domestic results to stall through first half SHORT‐TERM of 2016 financial year – cost structure ratios to be addressed Ongoing improvement expected across balance of business excluding CaroTrans MEDIUM TO Sufficient growth momentum across all markets LONG‐TERM C
Slide 26: Financial Calendar F16
Financial Calendar F16 RELEASE DATE Annual Meeting of Shareholders 29 July 2015 F15 – 6 months ended 30 September 2015 10 November 2015 F15 – 12 months ended 31 March 2016 26 May 2016