Slide 1: FY22 Result Presentation
DRIVING GROWTH RESPONSIBLY : FY22 RESULT PRESENTATION FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022
Slide 2: Disclaimer
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 year ended 30 June 2022, which can be found in the NZX preliminary results announcement. No offer or investment advice This p
Slide 3: Agenda and Presenters
Agenda Presenters 1. Introduction and Highlights 2. Financial Summary 3. Business Performance 4. Outlook/Conclusion Mark Troughear Stephan Deschamps Chief Executive Chief Financial Officer 5. Appendices Neil Wilson Steve Wells General Manager General Manager of Express Package Scott Hedgman General
Slide 4: Market share gains driven by service
FY22 KEY POINTS: Revenue Express Information Growth Package Management 9.1% 8.8% 14.3% ACROSS REVENUE EBITA FREIGHTWAYS GROWTH GROWTH 4.1 NPAT Growth % (before change in fair value of Market share gains driven by service performance contingent consideration – BCD) 4 Introduction and Highlights Finan
Slide 5: Highlights
Highlights Express Package Information Management Waste Renewal Business Mail Pleasing improvement in Pricing for Strong digital growth and a good Secure Destruction rebounded in H1 DX mail implemented an automated Effort (PFE), achieved $1.42 in June pipeline of Government opportunities in NZ and A
Slide 6: Highlights: Omicron and Covid lockdown impact
Highlights Omicron As updated in our May 2022 trading update: • Omicron had a significant effect on our business in January and February in Australia and then from March onwards in NZ. • At its peak we saw around 30% of our team absent from work through contracting the virus. This impacted not only
Slide 7: Financial Summary
Financial Summary For the financial year ended 30 June 2022 FY22 FY21 Change Note $m $m % Revenue 873.1 800.5 9.1 EBITA, before change in fair value of contingent consideration – Big Chill i. 130.2 128.9 1.0 Distribution Limited (BCD) (non-GAAP) Change in fair value of contingent consideration – BCD
Slide 8: Revenue Segmentation
Revenue Segmentation For the financial year ended 30 June 2022 FY22 FY21 Change $m $m % Express package and refrigerated transport & storage 641.4 581.3 10.3 Postal 45.6 48.5 (5.9) Storage & handling 59.3 60.7 (2.3) Destruction activities 83.5 70.6 18.3 Other 43.3 39.4 9.8 Total Revenue 873.1 800.5
Slide 9: Express Package & Business Mail
Express Package & Business Mail For the financial year ended 30 June 2022 FY22 FY21 Change $m $m % Operating Revenue 689.0 633.0 8.8 EBITDA (non-GAAP) 142.2 141.0 0.8 EBITA (non-GAAP) 107.5 107.8 (0.3) EBITA Margin 15.6% 17.0% NPAT (GAAP) 70.0 69.0 1.4 NOTES i. Results in this table are after NZ IFR
Slide 10: Information Management
Information Management For the financial year ended 30 June 2022 FY22 FY21 Change $m $m % Operating Revenue 187.1 170.7 9.6 EBITDA (non-GAAP) 55.2 50.8 8.6 EBITA (non-GAAP) 33.1 29.0 14.3 EBITA Margin 17.7% 17.0% NPAT (GAAP) 18.2 15.2 19.9 NOTES i. Results in this table are after NZ IFRS16 (Leases).
Slide 11: Capital Expenditure
Capital Expenditure For the financial year ended 30 June 2022 2022 Full Year Actual 2021 Full Year Actual $m $m Capital Expenditure(i) 24.7 16.2 Depreciation and software amortisation (including impact of NZ IFRS 16) 58.4 57.0 Depreciation and software amortisation (excluding impact of NZ IFRS 16) 2
Slide 12: Capital Management Policy
Capital Management Policy FINAL DIVIDEND 19 CPS 7.39 CPS (FULLY IMPUTED AT 28% TAX IMPUTATION CREDITS RATE) Capital Management Principles SUPPLEMENTARY Targeting solid Investment Grade credit profile, at a level that minimises 3.3529 CPS DIVIDEND the cost of capital. Range of Net Debt / EBITDA betwe
Slide 13: Growth Strategy: Three Horizons of Growth
GROWTH STRATEGY: Three Horizons of Growth 13 Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Appendices
Slide 14: Express Package
EXPRESS PACKAGE: 14 Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Appendices
Slide 15: Express Package Review
Express Package Review Network Express Couriers Point to Point Express Temperature Controlled Item growth accelerated after the lockdowns Revenue growth of 14% on the pcp Express in August / September 2021, fuelled by Our Kiwi Express Oversized courier service Revenue growth of 14.7% on the pcp thro
Slide 16: Express Package - Total Item Growth YoY
Express Package - Total Item Growth YoY (Network couriers only) Items FY19 v FY22 Items FY21 v FY22 FY19 FY22 FY21 FY22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slide 17: Express Package – B2C
Express Package – B2C (B2C Proportion FY22, PFE Per Item) B2C Proportion Pricing for Effort 21 % $1.52 of total items delivered within Average revenue per residential the Express Package network delivery (by end of July FY23) 17 Introduction and Highlights Financial Summary Business Performance Outl
Slide 18: Express Package – Couriers
Express Package – Couriers Oversize Items Address Accuracy 6 % 39 % of total Items Unvalidated Addresses over 25kg and 0.1m3 + 25c for unvalidated residential addresses Local Deliveries Dangerous Goods 29 % 368k Items per annum of Total Distribution PFE = $2.80 per item 18 Introduction and Highlight
Slide 19: Express Package – Fuel Surcharge and Pricing Impact
Express Package – Fuel Surcharge and Pricing Impact 3.50 3.00 Fuel lag has impacted FY22 EBITA by 2.50 2.00 $4.8m 1.50 1.00 0.50 0.00 July August September October November December January February March April May June 19 Introduction and Highlights Financial Summary Business Performance Outlook/Co
Slide 20: Express Package – Couriers
Express Package – Couriers Average Hours Average Incomes 9.47 $486 Per Day Per Day Target = $510 Per Day Increase in Incomes Service Quality 7.2 % 99.2 % Per Day Query Free Movements 20 Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Appendices
Slide 21: Express Package – Temperature-Controlled
Express Package – Temperature-Controlled 3PL Utilisation Ruakura facility timing 3PLB2C 1. Show and pallet capacity: Proportion 95 For% The Year Utilisation 16,000 pallet spaces as of September 2023 21 Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Appendices
Slide 22: Information Management
INFORMATION MANAGEMENT: 22 Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Appendices
Slide 23: Information Management Highlights
Information Management Highlights Storage Activity Digital 68% of document and media business Activity levels across media and documents Continued strong demand and growth in relates to physical storage which provides declined 3% and 1% respectively. digitalisation revenues for the FY22 year up stic
Slide 24: Information Management Key Statistics
Information Management Key Statistics Storage Revenue Digital Revenues Grew 68 % 37% AU of TIMG total core revenue 30% NZ Warehouse Utilisation LitSupport Covid impacted revenue down 80% AU 7% 95% NZ last quarter FY22 trading more resilient 24 Introduction and Highlights Financial Summary Business P
Slide 25: Waste Renewal
WASTE RENEWAL: Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Appendices
Slide 26: Waste Renewal Growth
Waste Renewal Growth Positioning for a sustainable future Current State Future Strategy PAPER MEDICAL E-WASTE PRODUCT LIQUID PAPER SOFT FOOD TEXTILES WASTE DESTRUCTION BOARD PLASTICS WASTE INTEGRATED LOGISTICS COLLECTION SERVICE AUTOMATED CUSTOMER REPORTING – TONNES DIVERTED, CO2, RENEWAL, PRODUCTS
Slide 27: Medical Waste Highlights
Medical Waste Highlights Med-X Revenue Growth FY18-FY22 30000 25000 20000 $ 15000 Medical Waste Exceptional growth in Medical Waste over FY22 driven by high service levels, new 10000 customer acquisition, higher pricing and organic growth Additional processing capacity will be 5000 added in VIC & Q
Slide 28: ESG Update
ESG Update Key area of focus 3. GOOD HEALTH AND WELLBEING • Health and safety in employment – injury reduction. LTIFR reduced from 12 to 11 in FY22 • Deployment of advanced in cab road safety technology in linehaul vehicles • Employee wellness programme and mental health awareness training rolled ou
Slide 29: Outlook
OUTLOOK: Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Appendices
Slide 30: Allied Express
ALLIED EXPRESS: 30 Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Appendices
Slide 31: Allied Express: The Transaction and Rationale
Allied Express The Transaction A$160m Transaction price (comprised of a A$100m investment by the McDowell family in Freightways shares, and A$60m in cash) for 100% of the shares in Allied Express. The Freightways shares will be issued to the McDowell Family at an issue price based on the VWAP of Fre
Slide 32: Allied Express: Background and By the Numbers
Allied Express Background to Allied By the Numbers • One of the largest, independently owned courier and express freight • 700 contractors companies in Australia. • 450 staff • Has a national presence, delivering services including metropolitan • 1,750 clients courier and taxi truck, specialised log
Slide 33: Express Package - Total Item Performance Last Weeks
Express Package - Total Item Performance Last 6 Weeks (Network couriers only) Express Package Volumes - Last 6 weeks YoY EP volumes are 2021 2022 -1% over the last 6 weeks compared to the pcp 1 2 3 4 5 6 Week 33 Introduction and Highlights Financial Summary Business Performance Outlook/Conclusion Ap
Slide 34: Conclusion and Outlook
Conclusion and Outlook “Our people remain our greatest asset. We have a highly experienced and committed team, many of whom have been with us for decades. Our team got us through the challenges • FY22 was impacted heavily by Covid. Lockdowns in H1 and of the last two years and they will Omicron in H
Slide 35: Appendices
APPENDICES 35
Slide 36: Appendix: Freightways Group IFRS16 Reconciliation
Appendix Reconciliation of post-NZ IFRS16 to pre-NZ IFRS16 for the financial year ended 30 June 2022 FY22 FY21 Change FREIGHTWAYS GROUP $m $m % Operating Revenue 873.1 800.5 9.1 EBITDA 184.9 162.8 13.6 Add back: Change in fair value of contingent consideration – Big Chill 3.7 23.0 Distribution Limit
Slide 37: Appendix: Express Package & Business Mail Reconciliation
Appendix Reconciliation of post-NZ IFRS16 to pre-NZ IFRS16 for the financial year ended 30 June 2022 FY22 FY21 Change EXPRESS PACKAGE & BUSINESS MAIL $m $m % Operating Revenue 689.0 633.0 8.8 EBITDA (after NZ IFRS16) 142.2 141.0 0.8 Less: NZ IFRS16 adjustment (26.3) (24.6) 7.0 EBITDA (before NZ IFRS
Slide 38: Appendix: Information Management Reconciliation
Appendix Reconciliation of post-NZ IFRS16 to pre-NZ IFRS16 for the financial year ended 30 June 2022 FY22 FY21 Change INFORMATION MANAGEMENT $m $m % Operating Revenue 187.1 170.7 9.6 EBITDA (after NZ IFRS16) 55.2 50.8 8.6 Less: NZ IFRS16 adjustment (17.3) (17.4) (0.9) EBITDA (before NZ IFRS16) 38.0
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