Slide 1: Half Year Presentation
Half Year Presentation 14 February 2011
Slide 2: This presentation relates to the Freightways Limited NZX announcement and media release of 14
This presentation relates to the Freightways Limited NZX announcement and media release of 14 February 2011. As such it should be read in conjunction with, and is subject to, the explanations and views contained in those releases. These half year results are drawn from unaudited financial statements
Slide 3: Agenda
Agenda • 2011 Half Year Highlights • Operating Performance • Business Strategy • Outlook 1
Slide 4: 2011 Half Year Highlights
2011 Half Year Highlights 1
Slide 5: General Highlights
General Highlights • Successful execution of service, cost and growth strategies, along with a return to increasing volumes from many customers, have combined to deliver a very positive financial result • Express Package & Business Mail division again demonstrated its ability to deliver double digit
Slide 6: Financial Highlights
Financial Highlights Dec-10 Dec-09 Variance $M $M % Operating Revenue 176 165 7% EBITDA 34 32 6% EBITA 29 27 7% NPAT 16 14 9% 1
Slide 7: Half Year on Half Year EBITA Movements
Half Year on Half Year EBITA Movements 15% 10% 5% Change 0% -5% -10% -15% 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 Half Years* * FY09 amounts are normalised, as per previous announcements and presentations. 1
Slide 8: Operating Performance
Operating Performance 1
Slide 9: Operating Revenue
Operating Revenue 400 350 300 $M 250 2nd Half 200 150 1st Half 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ended 30 June • 7% higher revenue compared to PCP • 10-year compound average annual revenue growth of 7%
Slide 10: Where Revenue Growth Has Come From
Where Revenue Growth Has Come From 190 180 1.4% 0.2% 176 1.8% 3.5% $M 170 165 160 150 2009 Volume Pricing Net new business Acquisition 2010 Growth Drivers 1
Slide 11: EBITA
EBITA 70 60 50 $M 40 2nd Half 30 1st Half 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ended 30 June • 7% higher EBITA compared to PCP • 10-year compound average annual EBITA growth of 10%
Slide 12: Business Segments Operating Performance
Business Segments Operating Performance Half Year ended 31 December 2010 Revenue 79% 21% Express Package & Business Mail Information Management 1
Slide 13: Express Package & Business Mail
Express Package & Business Mail Dec-10 Dec-09 Variance $M $M % Operating revenue 140 133 5% EBITDA 26 25 3% EBITA 23 22 5% EBITA M argin 17% 17% 1
Slide 14: Information Management
Information Management Dec-10 Dec-09 Variance $M $M % Operating revenue 37 32 14% EBITDA 8 7 21% EBITA 7 5 22% EBITA Margin 18% 17% 1
Slide 15: Balance Sheet
Balance Sheet • Total Assets above FY10 by $14m, mainly due to translation using the stronger AUD exchange rate at period end • Total Liabilities increase of $5m since FY10 mostly driven by the exchange rate impact of translating AUD bank debt and $3m improved value of financial derivatives since FY
Slide 16: Cash Flow – Key Points
Cash Flow – Key Points • Cash inflows from operating activities - $5m up on PCP due to higher sales and lower interest and tax payments (due to timing) • Cash outflows from investing activities - $5m higher due to a small acquisition and the repayment of an advance in the PCP, made to an advance mad
Slide 17: Interim Dividend
Interim Dividend • Interim dividend: 7.25 cps • Imputation credits: 3.1 cps • Supplementary dividend: 1.28 cps • Record date: 11 March 2011 • Payment date: 31 March 2011 • No DRP offered in respect of the 2011 Interim Dividend 1
Slide 18: Strategy
Strategy
Slide 19: Business Strategy
Business Strategy • Develop organic growth opportunities • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities
Slide 20: Express Package & Business Mail
Express Package & Business Mail Network Courier Point - to - Point Business Mail Support 1
Slide 21: Information Management
Information Management New Zealand NSW VIC QLD ACT SA WA Document Storage Data Storage Document Destruction
Slide 22: Capital Expenditure
Capital Expenditure 2010 2011 Actual Forecast Capital expenditure $12m $13m Depreciation $10m $11m
Slide 23: Outlook
Freightways Outlook
Slide 24: Outlook
Outlook • Cautiously optimistic about a further improving marketplace and consequently further improving FRE performance • If recent EP&BM division revenue growth can be maintained, similar earnings improvement to that achieved in the first half is expected in the future • IM division will continue
Slide 25: Conclusion
Conclusion • FRE has delivered a half year result that demonstrates sound progress and is above the prior period in all respects • This result again demonstrates the resilience of FRE, the positive features of the markets it operates in and the high quality of its subsidiary businesses and teams of