Mainfreight Limited · NZX:MFT

Mainfreight — H1 FY2016 Earnings Presentation

18 slides from Mainfreight's earnings presentation, November 2015

  1. Slide 1: Mainfreight Limited Half Year Result to September 2015

    MAINFREIGHT LIMITED HALF YEAR RESULT TO SEPTEMBER 2015

  2. Slide 2: Result Summary

    Result Summary Revenue up 12.9% to $1.114 billion REVENUE Excluding foreign exchange effects, 5.6% increase An increase of $127.04 million EBITDA at $71.58 million; increase of 3.3% EBITDA Excluding foreign exchange effects, 2.1% decrease Net surplus after tax before abnormal items down 1.5% to $33.

  3. Slide 3: Dividend

    Dividend Final dividend of 14.0 cents per share DIVIDEND Books close 11 December 2015; payment on 18 December 2015 Prudent to keep dividend in line with the previous year given profitability and capital requirements

  4. Slide 4: Capital Management

    Capital Management NZ$ MILLION THIS YEAR LAST YEAR Operating cash flow 45.93 35.38  Net capital expenditure totalled $58.50 million; of which $40.64 million was property development  Expected full year capital expenditure ~$90 million  Banking facilities extended by a year through to April 2020

  5. Slide 5: Half Year Analysis: Revenue

    Half Year Analysis: Revenue $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 270,957 255,939  5.9% Australia: AU$ 248,584 236,214  5.2% USA: US$ 228,172 206,909  10.3% Asia*: US$ 21,650 21,745 (0.4)% ― Europe: EU€ 130,771 129,840 0.7% ― Total Group: NZ$ 1,114,141 987,101  12.9% (excl FX) 5.6%

  6. Slide 6: Half Year Analysis: EBITDA

    Half Year Analysis: EBITDA $000 THIS YEAR LAST YEAR VARIANCE New Zealand: NZ$ 28,989 29,894 (3.0)%  Australia: AU$ 13,184 15,403 (14.4)%  USA: US$ 9,385 10,033 (6.5)%  Asia: US$ 3,546 2,238  58.4% Europe: EU€ 5,900 5,192  13.6% Total Group: NZ$ 71,582 69,297  3.3% (excl FX) (2.1)% 

  7. Slide 7: Domestic vs Air & Ocean Performance

    Domestic vs Air & Ocean Performance NZ$000 THIS YEAR LAST YEAR VARIANCE Group Revenue 1,114,141 987,101 12.9%  EBITDA 71,583 69,296 3.3%  Domestic Revenue 633,914 594,289 6.7%  EBITDA 47,378 51,911 (8.7)%  Air & Ocean Revenue 480,227 392,812 22.3%  EBITDA 24,205 17,385 39.2% 

  8. Slide 8: New Zealand

    New Zealand  Revenue growth satisfactory for the region, up 5.9%  Gross margins up 7.3% for the half year, however overhead costs increased 13.1%  Labour and facility costs are biggest contributors  Strong cost controls in place for second half  Improving Logistics facility utilisation also ass

  9. Slide 9: New Zealand

    New Zealand  Logistics – revenue improved on prior year  Construction of new facilities now complete with utilisation improving  Air & Ocean  Despite declining seafreight rates, revenue has improved, as has gross margin  Volumes increased and market share has strengthened

  10. Slide 10: Australia

    Australia  Revenue growth across the region led by Air & Ocean performance, up 5.2%  Gross margin improved 4.8%, however overhead costs increased 9.1%  Domestic Transport revenue growth lower than expected  Market share improvements not as evident as previous years  PUD (pick‐up & delivery) man

  11. Slide 11: Australia

    Australia  Air & Ocean – much improved on year prior  Growth in new business  Logistics  Better facility utilisation across Australia  Improved efficiency required at Sydney facility to realise satisfactory profitability from new accounts  Brisbane warehouse the only under‐utilised facility 

  12. Slide 12: The Americas

    The Americas  Regional revenue and EBITDA growth driven by Mainfreight Air & Ocean  Gross margin improvement of 6.7%, however overheads increased by 8.8% (mainly in Logistics operation)  Mainfreight  Domestic Transport volumes increasing; fixed linehaul having some impact on margin  Domestic Tr

  13. Slide 13: The Americas

    The Americas  Mainfreight  Air & Ocean development much improved with strong customer gains expected to continue into second half  Logistics warehousing – standalone sites in LA, Dallas and Newark; all need better utilisation  Customer development focus is strong with new business gains expected

  14. Slide 14: Europe

    Europe  Improvement across all divisions – revenue excluding inter‐company effects close to 3% improvement; driven by Air & Ocean and Logistics growth  Forwarding business ahead across all countries with Belgium reducing its losses of prior years  Belgian improvement expected to continue  Logist

  15. Slide 15: Europe

    Europe  Air & Ocean business well established and gaining good sales traction  Trade lane growth most evident to/from USA  Senior executive change in the new year; Mark Newman returns to New Zealand and is replaced by Ben Fitts (previously overseeing NZ Air & Ocean business)

  16. Slide 16: Asia

    Asia  Stronger sales focus continues to deliver better growth; excluding inter‐company effects, revenues are up 36%  Hong Kong performance much improved, particularly airfreight  New Hong Kong warehouse now operational, with 60% utilisation – assisting supply chain opportunities  Southeast Asia

  17. Slide 17: Group Outlook

    Group Outlook  We continue to expect an acceptable full year performance, however will have reduced trading weeks in March due to Easter timing (will benefit April vs prior year)  Peak season volumes will assist through the second half  Costs controls in place and not expecting any increase in la

  18. Slide 18: Financial Calendar F16

    Financial Calendar F16 DATE Investor Day – Melbourne 8 April 2016 F16 – 12 months ended 31 March 2016 26 May 2016 Annual Meeting of Shareholders 28 July 2016 F17 – 6 months ended 30 September 2016 9 November 2016

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