Mainfreight Limited · NZX:MFT
Mainfreight — FY2021 Earnings Presentation
28 slides from Mainfreight's earnings presentation, May 2021
Slide 1: Mainfreight Limited Full Year Result to 31 March 2021
MAINFREIGHT LIMITED FULL YEAR RESULT TO 31 MARCH 2021
Slide 2: Result Summary
Result Summary Revenue up 14.5% to $3.54 billion REVENUE An increase of $448.44 million Offshore revenues are now $2.70 billion: 76.1% Profit before tax is $262.41 million PBT Increase of 27.2% or $56.15 million Offshore PBT now $164.59 million: 62.7% Net profit before abnormals up 27.1% to $188.11
Slide 3: Full Year 2021 Overview
Full Year 2021 Overview Revenue and PBT improvements across all five regions Pleasing Australian performance Air & Ocean revenues artificially inflated by surging international freight rates / charters Targeted customer industries have assisted: Food, Beverage, DIY, Medical/Healthcare, Retai
Slide 4: Dividend
Dividend Directors have approved a final dividend of 45.0 cents per share DIVIDEND Books close 9 July 2021; payment on 16 July 2021 Full dividend for year 75.0 cents per share, increase of 16.0 cents or 27.1% over the previous year Page 4
Slide 5: Discretionary Bonus
Discretionary Bonus Payable at Board’s discretion to qualifying team members BONUS Up 60.8% from $27.29 million last year, to $43.88 million In addition, increased Christmas bonus paid in December 2020; $11.02 million up from $5.35 million Page 5
Slide 6: Capital Management
Capital Management NZ$ MILLION THIS YEAR LAST YEAR Operating cash flow 376.28 300.80 Net capital expenditure totalled $118.55 million for the period, including Land & Buildings $58.93 million Racking & Fit‐out Costs $15.59 million Plant & Equipment $26.00 million Information Technology $18
Slide 7: Capital Management continued
Capital Management continued Net debt reduction of $55.17 million to $102.21 million NET DEBT Gearing ratio improved to 8.4% from 14.0% Debt facilities $477 million Undrawn $269 million Page 7
Slide 8: Full Year Analysis: Revenue
Full Year Analysis: Revenue $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 845,554 752,913 12.3% Australia: AU$ 877,156 756,797 15.9% Europe: EU€ 427,522 401,390 6.5% Americas: US$ 576,909 493,286 17.0% Asia: US$ 104,284 61,364 69.9% Total Group: NZ$ 3,543,838 3,095,394 14.5% Estimat
Slide 9: Full Year Analysis: Profit before Tax
Full Year Analysis: Profit before Tax $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 97,814 87,691 11.5% Australia: AU$ 71,504 48,782 46.6% Europe: EU€ 22,351 18,113 23.4% Americas: US$ 25,923 19,992 29.7% Asia: US$ 7,047 3,390 107.9% Total Group: NZ$ 262,407 206,253 27.2% Page 9
Slide 10: Prior Period Comparisons
Prior Period Comparisons Positive/(Negative) Revenue Profit Before Tax Variances 1H 21 2H 21 FY 21 1H 21 2H 21 FY 21 New Zealand 4.5% 19.6% 12.3% 8.3% 13.7% 11.5% Australia 11.9% 19.8% 15.9% 104.3% 21.2% 46.6% Europe 0.0% 10.0% 6.5% (12.1)% 49.6% 23.4% Americas 1.6% 25.7% 17.0% (13.0)% 64.5% 29.7% A
Slide 11: Product Performance
Product Performance NZ$000 THIS YEAR LAST YEAR VARIANCE Transport Revenue 1,610,741 1,550,299 3.9% Profit before tax 140,527 119,682 17.4% Warehousing Revenue 452,116 409,749 10.3% Profit before tax 42,207 34,317 23.0% Air & Ocean Revenue 1,480,981 1,135,346 30.4% Profit before tax 79,673
Slide 12: Branches and countries
New Zealand, Australia, USA, Canada, Chile, Mexico, China, Hong Kong, Japan, Malaysia, BRANCHES: COUNTRIES: Singapore, South Korea, Taiwan, Thailand, Vietnam, Netherlands, Belgium, France, Germany, 297 26 Italy, Poland, Romania, Russia, Spain, Ukraine, United Kingdom Page 12
Slide 13: Customer Trading
Customer Trading Top 500 Customers: Use of Mainfreight Divisions (Transport/Warehousing/Air & Ocean) 1 Division 1 Division 29% 31% 28% 32% 3 Divisions 2021 3 Divisions 2020 39% 41% 2 Divisions 2 Divisions Top 500 Customers using us in two or more regions increased to 60% from 58% Top 500 Custo
Slide 14: New Zealand
New Zealand Revenue $846m 12.3% Profit before Tax $98m 11.5% Strong result, particularly in light of 40% revenue decline in April for Transport Transport capacity under pressure, especially pre‐Christmas New sites opened in Tauranga, Levin and Gore Construction underway for West Auckland, Ka
Slide 15: New Zealand
New Zealand Air & Ocean demand at highest levels experienced Air and sea charters completed Capacity constraints in global supply chain Air and sea freight rate levels inflating revenues Expect congestion and rate level inflation to continue for an indefinite period of time Page 15
Slide 16: Australia
Australia Revenue AU$877m 15.9% Profit before Tax $72m 46.6% A very pleasing performance across all 3 divisions Extended regional Transport network assisting Five more regional centres to open in next 12 months Building consents underway for South Melbourne and Adelaide Warehousing footpri
Slide 17: Australia
Australia Air & Ocean growth mirrors that in other areas of our network Good focus on air freight capability and LCL freight growth Space constraints and freight rate inflation as with the balance of our Air & Ocean network Page 17
Slide 18: Europe
Europe Revenue EU€428m 6.5% Profit before Tax EU€22m 23.4% Despite ongoing lockdowns, a satisfactory overall result Transport network improving revenue and PBT, particularly 2nd half Attracting new customers; focused on core customer verticals Better line‐haul/PUD management; direct line‐hau
Slide 19: Europe
Europe Warehousing saw inventories decline in first 6 months, recovery in second 6 months Footprint now over 330,000m2 Increasing usage of freight network for warehousing customers; now 57%, up from 42% Page 19
Slide 20: The Americas
The Americas Revenue US$577m 17.0% Profit before Tax US$26m 29.7% Strong Air & Ocean performance assisted result Separation of larger branches into dedicated Air and Ocean branches created stronger air freight skill‐ set and bolstered growth Trans‐Pacific shipping capacity extremely constraine
Slide 21: The Americas
The Americas Transport struggled with ongoing lockdowns restricting freight movement; more home deliveries vs business deliveries Require a greater focus on “right” customer industries New direct line‐hauls operating Over 500 per week post‐year end Less volume with third‐party operators
Slide 22: Asia
Asia Revenue US$104m 69.9% Profit before Tax US$7m 107.9% Improved market share and involved in numerous air and sea charter activities Revenue increased accordingly, but also influenced by air and sea freight rate inflation Improved Southeast Asian branch performance Imports of interest, to
Slide 23: Land & Building Development Update: F21
Land & Building Development Update: F21 NZ$ MILLION Total Land & Buildings Expenditure – 2021 74.5 Land, Auckland 23.5 Freight facility, Tauranga 13.3 Land and building, Levin 5.5 Land and building, Gore 3.4 Additional developments, New Zealand 1.5 Warehouse facility, Epping, Melbourne 1
Slide 24: Future Capital Expenditure Update: F22-F23
Future Capital Expenditure Update: F22‐F23 NZ$ MILLION F22 NZ$ MILLION F23 Planned Capital Expenditure $200.2 Planned Capital Expenditure $227.2 Freight facility, Hobsonville 28.0 Freight facility, Auckland 22.0 CFS/Container Terminal Auckland 10.0 Land, Nelson 13.6 Freight facility, Sprin
Slide 25: Sustainability (calendar years 2020 and 2019)
Sustainability (calendar years 2020 and 2019) CO2 EMISSIONS SOURCE 2020 2019 REDUCTION Road 402,774 406,087 0.8% Rail 7,038 7,159 1.7% Air 706,240 843,399 16.3% Sea 261,715 367,591 28.8% Indirect Freight Emissions 1,377,767 1,624,236 15.2% 97.59% of total 97.68% of total Direct Operational Emissions
Slide 26: Group Outlook
Group Outlook International supply chain congestion expected for some time to come Assisting our customers through congestion issues is our highest priority Targeting specific customer industries is a key component of result and expect to develop further – adding Perishables and Pharmaceutical
Slide 27: Financial Calendar F22
Financial Calendar F22 DATE Annual Meeting of Shareholders 29 July 2021 F22 – 6 months ended 30 September 2021 11 November 2021 F22 – 12 months ended 31 March 2022 26 May 2022 Page 27
Slide 28: That's all folks!
That’s all folks! Page 28