Mainfreight Limited · NZX:MFT
Mainfreight — Shareholder Meeting (July 2020)
27 slides from Mainfreight's shareholder meeting presentation, Jul 30, 2020
Slide 1: Mainfreight Limited Annual Meeting of Shareholders 30 July 2020
MAINFREIGHT LIMITED ANNUAL MEETING OF SHAREHOLDERS 30 JULY 2020 “Disruption equals Opportunity”
Slide 2: A quick look back at F20
A quick look back at F20 … 8,631 Team members up 552 GROWTH 282 Branches up 22 26 Countries up 2 (Spain & South Korea) Revenue up 4.8% to $3.10 billion (excluding FX up 3.6%) REVENUE An increase of $141.31 million PROFIT PBT: $206.25 million BEFORE TAX* NET SURPLUS* Net surplus after tax before abno
Slide 3: Discretionary Bonus / Dividend / Earnings Per Share
Discretionary Bonus / Dividend / Earnings Per Share Payable at Board’s discretion to qualifying team members (4,771 people) BONUS $27.3 million, in line with prior year (for payment in August) Total dividend for year 59.0 cents per share, up 3.0 cents or 5.4% DIVIDEND from 56.0 cents in the previous
Slide 4: Contribution: New Zealand vs Offshore
Contribution: New Zealand vs Offshore Revenue F20 Profit before Tax F20 NZ NZ 24.3% 42.4% Offshore Offshore 75.7% 57.6% Page 4 “Global opportunities”
Slide 5: Performance by Division – Our Core Products
Performance by Division – Our 3 Core Products Revenue: $1.576 billion up 8.6% TRANSPORT Profit Before Tax: $119.36 million Revenue: $0.384 billion up 10.1% WAREHOUSING Profit Before Tax: $34.32 million Revenue: $1.135 billion down 1.8% AIR & OCEAN Profit Before Tax: $52.57 million Page 5 “More to do
Slide 6: Trading Update: Revenue
May actuals plus June/July “weeklies” Trading Update: Revenue* 17 weeks of trading (1 April to 26 July) NZ$000 THIS YEAR LAST YEAR VAR % New Zealand NZ$ 268,594 265,348 1% Australia AU$ 287,904 253,773 13% Asia US$ 51,776 36,835 41% Europe EU€ 145,210 144,257 1% Americas US$ 167,741 172,710
Slide 7: Trading Update: PBT
May actuals plus June/July “weeklies” Trading Update: PBT* 17 weeks of trading (1 April to 26 July) NZ$000 THIS YEAR LAST YEAR VAR % New Zealand NZ$ 16,721 18,098 (8)% Australia AU$ 17,856 6,689 167% Asia US$ 2,601 1,590 63% Europe EU€ 4,071 4,712 (13)% Americas US$ 3,755 5,756 (35)% Group
Slide 8: Trading Update: Total Company
Trading Update: Total Company Revenue increase of NZ$94.3 million includes: Air charter opportunities of NZ$23.8 million, but at lower margin levels Other new business of $67 million (Q1) Profit improvement dominated by Australian performance assisted by our exposure to multiple economies Pa
Slide 9: Trading Update: New Zealand
Trading Update: New Zealand April trading saw revenues and profits decline dramatically, in Level 4 lockdown Post‐Level 4 lockdown (May to July) trading has improved significantly, and YTD revenue now just ahead of prior year Expectations for this trend to continue, albeit not at the elevated
Slide 10: Trading Update: Australia
Trading Update: Australia Our strongest regional performer, with expectations for the current results to continue New business gains/market share assisting Transport network performance assisting / regional branches Current COVID‐19 spike and increased restrictions have not disrupted or alte
Slide 11: Trading Update: Asia
Trading Update: Asia Benefit of PPE shipments April to June Southeast Asia a key area for stronger growth and development COVID‐19 infection rates on increase, but not impacting freight volumes, export or import Some restrictions on number of team members in branches Freight volume increas
Slide 12: Trading Update: Europe
Trading Update: Europe April and May – tough trading conditions experienced June and July – marked improvement, and ahead of the year prior Summer holiday period (July/August) now underway, with the expected decline in volumes COVID‐19 increases seen recently do not appear to have had any im
Slide 13: Trading Update: Americas
Trading Update: Americas Trading remains slow for Transport and CaroTrans with Warehousing and Air & Ocean improving Expect the Americas to take longer to recover as COVID‐19 infection levels continue to increase Customer trading is improving, however converting new customers is taking longer
Slide 14: Capital Expenditure
Capital Expenditure $155 m Spent in 2020 financial year $112 million on land & buildings $80 m Expected capital investment in FY21 $120 million deferred FY22 spend likely to increase; 2022 dependent on trading developments Page 14 “Investing in our growth opportunities”
Slide 15: Current Net Debt
Current Net Debt Net debt of $120 million NET DEBT Gearing ratio at 11.1% Undrawn facilities of $220 million Interest Cover and Total Debt Cover Ratios remain COVENANTS well within banking requirements Page 15 “Money is for making things happen”
Slide 16: Netherlands: Zaltbommel Stage 2
Netherlands: Zaltbommel Stage 2 Completed: early 2020 Page 16
Slide 17: Netherlands: Born
Netherlands: Born Completed: 2018 New solar installation Page 17
Slide 18: Melbourne: Epping II
Melbourne: Epping II Completed: June 2020
Slide 19: Mt Maunganui: Mangatawa
Mt Maunganui: Mangatawa Targeted completion: August 2020
Slide 20: Our Customers
Our Customers Top industry verticals of our customers: DIY/Homeware 16% FMCG/Food/Beverages 15% Technology/Electronics 11% Retail 11% Medical/Healthcare 7% Page 20 “Customer perception is the measure of performance”
Slide 21: Sustainability
Sustainability Measurement of emissions: calendar 2019 1.66 million tonnes CO2‐e 97.7% freight related: air, road, rail, sea Carbon intensity factor improving/efficiency Increase likely in current year (airfreight charter activity) Initiatives: Electric alternatives – forklifts, trucks
Slide 22: Global Supply Chain Status
Global Supply Chain Status Air freight: Remains volatile and expensive Improving from March/April levels Sea freight Usage improving / rates increasing “Blank” sailings causing space allocation issues Warehousing Enquiry on the increase Outsourcing for customers looking to offset f
Slide 23: Priorities and Actions
Priorities and Actions Strong sales focus – retention of customers and gaining of new customers – high priority High standards; quality services No COVID‐19 related redundancies for our permanent team members Cash flow/cash collection a strong focus Cost and margin management: branch/natio
Slide 24: Mainfreight Corporate Governance
Mainfreight Corporate Governance We are proud of the governance that guides our Company We do not blindly follow perceived best practice; in some cases the interests of the Company and its shareholders are not best‐served by those guidelines We have applied the principles of good corporate gov
Slide 25: Corporate Governance – continued
Corporate Governance – continued … Mainfreight’s Board of Directors Comfortable with current level of six directors Tenure and experience are a key part of who we are – at Board, Management and Team level Board is comfortable with the independence of Simon Cotter, Bryan Mogridge, Kate Parson
Slide 26: We Continue To …
We Continue To … Be positive and optimistic about the year ahead, with a hint of caution Believe our people, culture and quality are key differentiators Want to be useful and effective for our customers Seek growth and intensity for our network Think bigger and bolder, no matter the pandem
Slide 27: Thank you to our people
The determination, positivity and hard work of our people has been nothing short of staggering; they deserve a huge thank you from all of us Page 27