Slide 1: HY25 Results
HY25 Results Reporting for the period ending 31December 2024 Presenters: Mark Troughear Stephan Deschamps Neil Wilson Aaron Stubbing Chief Executive Officer Chief Financial Officer General Manager, FRW General Manager, EP
Slide 2: Allied Express, Australia
Allied Express, Australia
Slide 3: Disclaimer
Freightways Disclaimer Read this presentation with the financial statements: The financial results in this presentation should be read in conjunction with the financial statements for the half year ended 31 December 2024, which can be found in the Freightways half year results announcement available
Slide 4: Outline
Freightways Outline Slide# 01 Overview 5. 02 Financial Summary & Capital Management 6. 03 Divisional Performance 10. 04 Strategy Update 17. 05 Outlook 25. 4. HY25 Results
Slide 5: Freightways' Brands
Freightways Freightways’ Brands Express Package & Business Mail Temperature Controlled Information Management Waste Renewal B2B - national delivery Refrigerated national transport Document Storage Document Destruction Overview B2C - courier and mail Temperature controlled 3PL Digitalisation Medical
Slide 6: Financial Summary & Capital Management
Financial Summary & Capital Management Presenter: Stephan Deschamps Chief Financial Officer
Slide 7: HY25 Group Highlights
Freightways HY25 Group Highlights Revenue Growth EBITA2 Growth NPAT Growth Dividend (Half Year) 6.7% 6.5% 9.5% 19c (HY24 18cps) NOTES 1. Metrics shown relative to pcp 2. Non-GAAP (Generally Accepted Accounting Principles) 7. HY25 Results
Slide 8: HY25 Consolidated Performance
Freightways HY25 Consolidated Performance Notes HY25 HY24 Change HY25 Performance Overview: $m $m % Solid result in a macro-economic environment that is still Operating Revenue 662.1 620.7 6.7 challenging EBITA (non-GAAP) 1 86.0 80.8 6.5 Performance from all businesses through peak was very stro
Slide 9: Capital Management and Dividend Policy
Freightways Capital Management and Dividend Policy Capital Management Principles Targeting solid Investment Grade credit profile, at a level that Interim Dividend minimises the cost of capital Net Debt / EBITDA between 2.0x and 3.0x post IFRS16 19CPS (HY24 18cps) Dividend Policy Dividend Policy
Slide 10: Divisional Performance
Divisional Performance Presenter: Mark Troughear Chief Executive Officer
Slide 11: DX Mail, NZ
DX Mail, NZ
Slide 12: HY25 Express Package & Business Mail Result
Freightways HY25 Express Package & Business Mail Result HY25 HY24 Change Notes HY25 Performance Overview: $m $m % Operating Revenue 547.2 517.1 5.8 EPBM divisional revenue up 5.8% on the pcp EBITA (non-GAAP) 1 EPBM EBITA is up 12% on pcp 80.0 71.4 12.0 Service performance was strong across all
Slide 13: HY25 NZ Express Package Metrics
Freightways HY25 NZ Express Package Metrics Same-Customer Volumes Average Price Per Item EP Courier Pay Average 3.9% $8.86 $502 At December ‘24, H1 FY25 Per courier / per day excluding surcharges PFE Per Residential Item B2C Items Fleet Vacancies (wage drivers) $1.70 21% <1% Surcharge per residentia
Slide 14: HY25 NZ Express Package Volume
Freightways HY25 NZ Express Package Volume FY25 HY Volumes NZ Network Express FY24 H2 Volumes 1.9% Item Trend Compared to the PCP 1.5% FY24 H1 Volumes 1.6% Temu contributed 3.4% of FY24 volume (all in H1) New Zealand Other EP Volumes: NZ Network market share gains of c. 4% helped offset same-custo
Slide 15: HY25 AU Express Package Volume
Freightways HY25 AU Express Package Volume AU Network Express FY25 HY Volumes FY24 H2 Volumes 9% 8% Item Trend Compared to the PCP FY24 H1 Volumes 13% Australia Allied service delivery performance improved in H1, increased customer confidence resulted in 7.6% organic and new business revenue growt
Slide 16: HY25 Information Management & Waste Renewal Result
Freightways HY25 Information Management & Waste Renewal Result HY25 HY24 Change Notes $m $m % HY25 Performance Overview: Operating Revenue 117.6 105.7 11.3 IM revenue was up 11.3% on the pcp overall with a mixed performance across the various lines of business: EBITA (non-GAAP) 1 15.5 15.4 0.6 ‒ D
Slide 17: Strategy Update
Strategy Update Presenters: Mark Troughear Neil Wilson Aaron Stubbing Chief Executive Officer General Manager, FRW General Manager, EP
Slide 18: Big Chill, NZ
Big Chill, NZ
Slide 19: Horizons of Growth | Express Package & Business Mail
Freightways 3 Horizons of Growth | Express Package & Business Mail Horizon 1. Extend And Defend | B2B Overview: Focus on a profitable market share gains B2B - overnight national network delivery - courier and mail Continue to ensure service is a differentiator for customers in NZ B2C - overn
Slide 20: Airfleet Strategy Update
Freightways Airfleet Strategy Update Over time we will continue the transition of our fleet from the current four aircraft (three 737-400s and one 737-800) to three 737-800s. 737-800's have higher carrying capacity and are more fuel efficient There will be some one off costs at the point of tr
Slide 21: Horizons of Growth | Temperature Controlled
Freightways 3 Horizons of Growth | Temperature Controlled Horizon 1. Extend And Defend | National Delivery Overview: Pursue market share opportunities leveraging new infrastructure, Refrigerated national transport technology and improved service performance Implementation of Big Chill Connect
Slide 22: Horizons of Growth | Information Management
Freightways 3 Horizons of Growth | Information Management Horizon 1. Extend And Defend | Storage Overview: Archive revenues and margins forecasted to grow through a combination of Document Destruction pricing and new business. New customer growth expected to be stronger in AU assisted by health
Slide 23: Horizons of Growth | Waste Renewal
Freightways 3 Horizons of Growth | Waste Renewal Overview: Horizon 1. Extend And Defend | Secure Destruction Document Destruction Implementing new pricing strategies to restore margin in locations where the density of collections have changed Medical Waste Continued focus on market share gai
Slide 24: Disciplined Approach to M&A
Freightways Disciplined Approach to M&A Acquisition Strategy and Investment Criteria Well defined target characteristics Acquired in 2022 for A$160m. Acquisitions aligned with strategy & operating culture Disciplined approach to acting on opportunities Revenue and EBITA have improved year on y
Slide 25: Outlook
Outlook Presenter: Mark Troughear Chief Executive Officer
Slide 26: Outlook
Freightways Outlook Volume in the HY was as expected and we expect that it will be a slow grind for the economy to provide some organic growth in NZ in H2 Volumes expected to The AU economy is slightly more buoyant grow as the economy improves Our focus remains on restoring margins for both di
Slide 27: Q&A
Freightways Q&A
Slide 28: Appendices
Freightways Appendices
Slide 29: Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited)
Freightways Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited) FREIGHTWAYS GROUP HY25 ($m) HY24 ($m) Post NZ IFRS16 NZ IFRS16 Pre NZ IFRS16 Post NZ IFRS16 NZ IFRS16 Pre NZ IFRS16 Notes adjustment (non-GAAP) adjustment (non-GAAP) Operating Revenue 662.1 - 662.1 620.7 - 620.7 EBITDA (n
Slide 30: Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited)
Freightways Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited) EXPRESS PACKAGE & BUSINESS MAIL Notes HY25 ($m) HY24 ($m) Change (%) Operating Revenue 547.2 517.1 5.8 EBITDA (after NZ IFRS16) 1 110.6 97.0 14.0 Less: NZ IFRS16 adjustment (25.5) (20.9) 22.0 EBITDA (before NZ IFRS16) 85.
Slide 31: Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited)
Freightways Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited) INFORMATION MANAGEMENT & Notes HY25 ($m) HY24 ($m) Change (%) WASTE RENEWAL Operating Revenue 117.6 105.7 11.3 EBITDA (after NZ IFRS16) 1 28.6 27.9 2.5 Less: NZ IFRS16 adjustment (10.8) (10.6) 1.9 EBITDA (before NZ IFRS16
Slide 32: Project Evolve | Express Package
Freightways Project Evolve | Express Package Overview: Benefits: • Project Evolve is a staged multi-year investment in • Designed to improve our ability to efficiently Price for Effort modernising pricing, billing and courier pay systems that (differentiate our pricing on the basis of effort) for a
Slide 33: Local Courier Network Courier Pricing | Express Package
Freightways Local Courier Network Courier Pricing | Express Package Background Pricing structure always been a flat rate per item up to 25kg / 0.125m3 Local pricing has not kept in step with Average local rates have congestion, geographical spread of cities increased only modestly and the size o