Slide 1: Mainfreight Limited Annual Meeting of Shareholders 25 July 2024
MAINFREIGHT LIMITED ANNUAL MEETING OF SHAREHOLDERS 25 JULY 2024
Slide 2: The Numbers … Financial Year 2024 (last year)
The Numbers … Financial Year 2024 (last year) • Revenue down 17% to $4.72 billion from $5.68 billion • PBT down 33% to $395 million from $587 million • Net Profit down 35% to $278 million from $426 million - Deferred Tax on buildings - $69 million (noncash) • People down 667 to 10,644 • Branches up
Slide 3: Full Year Overview
Full Year Overview • We expected to do better - New Zealand and Australia were OK - Asia/The Americas/Europe disappointed • Why? - Lease obligations on overflow warehousing - Decreasing freight volumes saw utilisation across all products decline - Overhead cost structures inflated as a consequence o
Slide 4: A new base to grow from
3 Year Comparison 2021 2024 % Increase NZ$ NZ$ over 3 years REVENUES Total Group Full Year 3.54b 4.72b 28.6% 2021 2024 % Increase PBT NZ$ NZ$ over 3 years Total Group Full Year 262.4m 395.4m 40.4% “A new base to grow from”
Slide 5: Capital Management – Financial Year 2024
Capital Management – Financial Year 2024 Operating Cash Flow $505 million v $757 million $ “Cash collection was satisfactory” Net Capex $254 million - $128 million on property “Still investing in the future” Net funds (debt) reduction to $22 million in funds “Cash at hand” Bank debt of $148 million
Slide 6: Network Growth
Network Growth Team members Americas 1,659 Europe 3,072 Asia 509 Australia 2,543 New Zealand 2,861 Branches Countries People 337 - up 6 27 – up 1 10,644 “667 people less as freight volumes reduced”
Slide 7: The Network – A strategic advantage
The Network – “A strategic advantage” Revenue Australia AU$1,294.2m New Zealand NZ$1,124.1m The Americas US$ 639.1m Europe EU€ 557.2m Asia US$ 96.5m “The Mainfreight team helping each other”
Slide 8: Future Capital Expenditure Update: FY25 - FY26
Future Capital Expenditure Update: FY25 - 26 NZ$ MILLION FY25 NZ$ MILLION FY26 Property and Fit-out costs FY25-26 Planned Capital Expenditure $255 Planned Capital Expenditure $254 New Zealand $159 million ▪ Property $149 ▪ Property $152 Australia $104 million ▪ Fit-out costs $ 47 ▪ Fit-out costs $ 4
Slide 9: Planned Development for FY 2025 / 2026
Planned Development for FY 2025 / 2026 New Zealand • 7 Transport facilities • New Plymouth – Extension (Owned) • Palmerston North – Additional (Owned/leased) • Auckland Daily Freight (Owned) • Nelson (Owned) • Blenheim (Owned) • Hastings (Owned) • Whanganui (Leased) • 3 Warehouses • Beach Road, Auck
Slide 10: Beach Road hazardous facility, Auckland
Hazardous facility – all classes BEACH ROAD, Auckland 34,108 sqm Completion expected early 2025 “Provides opportunity alongside Chemcouriers”
Slide 11: Alderman Place container handling facility, Auckland
Completed Container handling facility Wharf /Tankers/CaroTrans ALDERMAN PLACE, Auckland 47,147 sqm Rail served ex Ports of Auckland “The link between Transport and Air&Ocean”
Slide 12: Owens Hugo Johnson Drive transport cross-dock
Completed Transport Cross-Dock OWENS – HUGO JOHNSON DRIVE, Auckland Daily Freight 1 year / Owens future site Rail served 35,197.9 sqm “Long awaited improvements for Daily Freight and Owens”
Slide 13: M2Home Cross-Dock and Warehouse
M2Home Cross-Dock and Warehouse 27,570 sqm Cross-Dock 2HOME, SAVILL DRIVE, Auckland 10,500 sqm Warehouse Completion expected August 2024 “Meeting the demands of our developing consumer goods division”
Slide 14: Planned Development for FY 2025 / 2026 – Australia
Planned Development for FY 2025 / 2026 Australia • 2 Transport Cross-Docks • Townsville (Leased) • Willawong (Owned) • 2 Air & Ocean / Wharf facilities • Melbourne Airport (Leased) • Port of Brisbane (Leased)
Slide 15: Brisbane new transport cross-dock
Transport Cross-Dock BRISBANE NEW TRANSPORT CROSS-DOCK 34 rear loading doors – ARTIST IMPRESSION 15,298 sqm Completion expected early 2026 “Less square metres – more efficient and better use of capital”
Slide 16: Sydney Moorebank warehouse
Completed Sydney Warehouse SYDNEY, MOOREBANK, AUSTRALIA’S 55,000 sqm, 66,000 plts LARGEST INTERMODEL PRECINCT Rail and Road served Temp controlled / Hazardous goods capable “70% utilized with more inquiry than we can handle”
Slide 17: Planned Development for FY 2025 / 2026 – Americas and Europe
Planned Development for FY 2025 / 2026 Americas • 2 Transport Cross-Docks • Dallas (Leased) • Chicago (Leased) Europe • 2 Transport Cross-Docks • Amsterdam (Leased) • Mechelen, Belgium (Leased)
Slide 18: Dallas Texas new transport cross-dock
Transport Cross-Dock DALLAS TEXAS NEW TRANSPORT CROSS-DOCK 78 Doors 5,387 sqm Completion expected late 2024 “A bold step forward in the USA”
Slide 19: Chicago new transport dock
Transport Cross-Dock CHICAGO NEW TRANSPORT DOCK 74 Doors 4,374 sqm Completion expected late 2024 “And another step forward”
Slide 20: Sustainability
Sustainability Investing in sustainable infrastructure • 8.4 MW in solar generation (2.6MW added over the past year) • 9.5 MWh in battery storage (4.5 MWh added over the past year) • Rainwater capture and filtration (over seven million litres in storage added over the past two years) Lowering the im
Slide 21: Current Trading Environment (15 Weeks: April - July 4)
Current Trading Environment (15 Weeks: 1 April - 14 July 2024) PROFIT BEFORE NZ$000 REVENUE* VAR % VAR % TAX New Zealand NZ$ 315,114 -1.3% 25,092 -20.1% Australia AU$ 428,558 17.5% 32,754 7.0% Americas US$ 194,034 3.4% 3,231 -52.1% Europe EU€ 176,512 3.4% 6,507 -3.2% Asia US$ 37,640
Slide 22: Trading Update: Our Core Products (15 weeks)
Trading Update: Our 3 Core Products (15 weeks) NZ$ Revenue: $672.1 million up 8.3% Transport PBT: $ 39.3 million up 4.1% Warehousing Revenue: $233.4 million up 3.0% PBT: $9.4 million down 30.0% Air & Ocean Revenue: $573.3 million up 11.2% PBT: $34.5 million down 19.0%
Slide 23: Trading Update Summary
Trading Update Summary • Transport • Satisfactory growth across Australia • New Zealand experienced reduction in volumes post May. Higher Transport costs • European Transport has seen reasonable improvement in volumes and profitability • USA Transport seeing marginal improvement. Still a long-term f
Slide 24: Trading Update Summary: Our Progress
Trading Update Summary: Our Progress • Concerted sales activities / campaigns across network • June sales activity a highlight • 3,892 new business opportunities • 307 new customer gains • Good momentum in Australia – expect Australia to become our biggest profit earner • Improvements in European Tr
Slide 25: Thank you
To Close • Sales opportunities in all markets are substantial • We continue to remain confident in our medium to long term growth opportunities Thank you