Mainfreight Limited · NZX:MFT
Mainfreight — FY2009 Earnings Presentation
23 slides from Mainfreight's earnings presentation, May 2009
Slide 1: Full Year Result To March 2009
Full Year Result To March 2009
Slide 2: Result Highlights
Result Highlights • Revenues improved by 29% excluding foreign exchange to $1.2 billion (excluding foreign exchange and acquisitions 6%) • Net surplus s rpl s before abnormals of $40 million million, on par with ith prior year ear • Net surplus after abnormals $35 million • EBITDA performance a reco
Slide 3: Financial Highlights
Financial Highlights NZ$ million illi Thi Year This Y L t Year Last Y V i Variance Group Revenue 1,265.6 911.7 38.8% Net Surplus New Zealand 25.1 22.6 11.1% Net Surplus Offshore 14.9 18.2 (18.3%) Net Surplus before Abnormals 40 0 40.0 40 8 40.8 (2 0%) (2.0%) Sold Businesses - 0.3 Abnormals (4 5) (4.
Slide 4: Debt
Debt NZ$ million This Year Last Year Term borrowings 97.7 100.4 Current borrowings 28.4 5.2 Finance lease 2.3 1.0 Deposits (13.2) (26.7) Total 115.2 79.9 • A portion of debt facility expires 31 December 2009 • Net debt increase due to Halford acquisition and US dollar loan currency fluctuations • In
Slide 5: Cash Flow
Cash Flow NZ$ million illi Thi Year This Y L Last Year Y Operating cash flow 63.1 40.7 • Improved cash collection contributes • Net capex $40.9 million ($23.6 million property; $4.6 million offshore and $19.0 million New Zealand) • Capex for 2010 expected to be approximately $6 million for property
Slide 6: Dividend
Dividend • 10 cents per share for final dividend • Takes total dividend for year to 18.5 cents per share; last year 18 0 cents 18.0 t per share h • Equates to 45.5% of net surplus • Books closing 17 July 2009 • Payment 24 July 2009
Slide 7: Initiatives
Initiatives • Mainfreight’s unique culture and operating systems allow for significant autonomy and responsibility at branch level • Branch B h managementt ffocus to t reduce d costs, t and d enhance h margin i particularly in areas of pick-up, delivery and linehaul • We have ceased hiring or replac
Slide 8: Fourth Quarter Analysis
Fourth Quarter Analysis Q4 Revenue R Q4 EBITDA $000 This Last This Last Year Year Variance Year Year Variance NZ Domestic: NZ$ 63,892 70,825 (9.8)% 12,937 9,922 30.4% NZ International: NZ$ 27,268 27,294 (0.1)% 2,076 1,628 27.5% AU Domestic Domestic: AU$ 30 363 30,363 31 487 31,487 (3 6)% (3.6)% (109
Slide 9: Fourth Quarter Analysis
Fourth Quarter Analysis • New Zealand Domestic revenue includes reduced fuel component of NZ$2.5 million • Australian Domestic revenue includes reduced fuel component of AU$0.5 million • Australian International assisted by Halford revenue • Asian revenues impacted through shipping rate decline as m
Slide 10: New Zealand Domestic
New Zealand Domestic NZ$ million This Year Last Year Sales revenue 294.8 281.4 EBITA 33.0 11.2% 30.0 10.7% EBITDA 41.6 14.1% 37.4 13.3% • Satisfactory performance • Range of services extended • Intensive network assisting sales growth • Market share increased through aggressive sales campaigns • Cus
Slide 11: New Zealand International
New Zealand International NZ$ million This Year Last Year Sales revenue 108.3 103.9 EBITA 4.5 4.1% 4.6 4.4% EBITDA 4.9 4.5% 4.9 4.7% • Rates and margins impacted, particularly seafreight due to over capacity over-capacity • Import growth slowed significantly • Opening of new airfreight facility in A
Slide 12: Australian Domestic
Australian Domestic AU$ million This Year Last Year Sales revenue 150.5 130.1 EBITA 4.4 2.9% 9.3 7.1% EBITDA 5.9 3.9% 10.4 8.0% • Logistics the poor performer in terms of results • C Consolidation lid ti off L Logistics i ti warehouses h ffrom 11 tto 7 • Warehousing utilisation improved • Market sha
Slide 13: Australian International
Australian International AU$ million This Year Last Year Sales revenue 172.1 126.8 EBITA 5.3 3.1% 6.5 5.1% EBITDA 5.8 3.4% 6.8 5.4% • Revenues and margins impacted by ocean freight rate reductions • V l Volumes ex A Asia i significantly i ifi tl ddecreased d • Halford acquisition has assisted airfre
Slide 14: United States
United States CaroTrans US$ million This Year Last Year Sales revenue 115.9 94.6 EBITA 8.2 7.1% 5.4 5.7% EBITDA 8.9 7.6% 5.9 6.2% Mainfreight g USA (prior (p period p 5 months only) y) US$ million This Year Last Year Sales revenue 172.8 73.0 EBITA 1.6 0.9% 1.6 2.1% EBITDA 28 2.8 1 6% 1.6% 19 1.9 2 6
Slide 15: United States – CaroTrans
United States – CaroTrans • CaroTrans growth from market share, particularly FCLs in the first half • FCL declined in second half half, replaced with smaller consignments and requirement for more consolidation services • CaroTrans ideally positioned to take further market share • Brand now well esta
Slide 16: United States – Mainfreight USA
United States – Mainfreight USA • 18 months of ownership • Results well below expectations • Domestic freight f revenues impacted heavily by slowing US S economy • Strong Mainfreight influence to alter poor performance practices and bring g branch management g focus • “Cargowise” technology platform
Slide 17: Asia
Asia US$ million This Year Last Year Sales revenue 16.8 13.7 EBITA 1.6 9.8% 2.1 15.9% EBITDA 1.7 10.1% 2.2 16.6% Last year’s figures reflect total performance while consolidated results only carry 8 months of trading
Slide 18: Asia
Asia • Full ownership for 2 years • Developed greater trade-lane coverage • “Cargowise” technology platform implemented late February 2009 • Developing strong airfreight presence • Revenues, margins increased – but variable costs also increased impacting profitability • Well positioned for future gr
Slide 19: Outlook
Outlook • First quarter trading below prior year comparison • Strong sales activity increasing customer base/market share • Reduced capex spend, particularly in property • Close management of debtors • Well positioned to take advantage off upturn
Slide 20: New Zealand Domestic
New Zealand Domestic • Satisfactory performance • Range of services extended – bulk grain / car carrying • Intensive network assisting sales growth • Market share increased through aggressive sales campaigns • Customer retention a key focal point for business
Slide 21: New Zealand International
New Zealand International • Rates and margins impacted, particularly seafreight due to over-capacity • O Opening i off new airfreight i f i ht facility f ilit in i Auckland A kl d significant i ifi t milestone il t • Growth in export sector as currency eases, particularly Perishables • I Import t gr
Slide 22: Australian Domestic
Australian Domestic • Logistics the poor performer in terms of results • Consolidation of Logistics warehouses from 11 to 7 • Warehousing utilisation improved • Market share improved, but volumes and consignment size down • Regional improvements in Canberra Canberra, Newcastle Newcastle, Perth and A
Slide 23: Australian International
Australian International • Revenues and margins impacted significantly by ocean freight rate reductions • Volumes ex Asia affected • Halford acquisition has assisted airfreight, customs and trade lane development – Japan, UK and Europe • Integration of Halford protracted – slowing expected financial