Annual Shareholders Meeting 26 October 2006. Wayne Boyd, Chairman.
-
Upload
shanon-morton -
Category
Documents
-
view
218 -
download
5
Transcript of Annual Shareholders Meeting 26 October 2006. Wayne Boyd, Chairman.
Annual Shareholders Meeting
26 October 2006
Wayne Boyd, Chairman
Agenda
Chairman’s introduction
Managing Director’s review and trading update
Resolutions
General Highlights
• Subsidiaries have performed well in a challenging operating environment
• Strategies have realised sound growth in both ‘Core’ Express Package and ‘Emerging’ Business Mail and Information Management businesses
• Kiwi Express acquisition has performed fully to expectation
• Post balance date acquisition of DataBank
• Approximately 7,000 shareholders
Financial Highlights
2006 2005 increase$000 $000 %
Operating revenue 256,689 233,725 10%
EBITDA 58,318 54,996 6%
EBITA 53,360 50,539 6%
NPAT 24,306 21,991 11%
NPATA 29,276 26,948 9%
Earnings per share (NPAT) 19 cents 17 cents 11%
Dividends
Jun-06 Dec-05 Jun-05 Dec-04
Dividend declared $11.2m $10.9m $10.7m $9.5m
Cents per share 8.75 8.50 8.50 7.50
Full year (cps) 17.25 16.00
Key points:• Increase of 8% compared to 2005• Fully Imputed• Was paid 30 September 2006
Dean Bracewell, Managing Director
Review and Trading Update
Managing Director’s Presentation
Industry overview and business description
Business strategy
Trading update
Outlook
Express Package IndustryOverview and Business Description
Express Package Industry
• Two segments to Express Package industry– Network couriers 90% of industry revenue– Point-to-point couriers 10%
• Services embedded in supply chains of businesses
• Consolidated industry structure
• Growth underpinned by demand for Just in Time supply
Multi-Brand Strategy
Major brands:
– Differentiated by
price and service
– Capture growth
across entire market
Freightways’ Courier Brands
Price
Service
Information Management and Business Mail Industry Overview and
Business Description
• Total information management solution
• An emerging growth opportunity
• Integrated with Freightways express package operations
Information Management - NZ
Features of the DataBank acquisition
• No.2 operator in data storage niche of InformationManagement market
• Experienced and capable management team
• Similar service-oriented operating culture to FRE
• Earn-out purchase structure aligns vendors’ interests withthose of FRE shareholders
Information Management - Australia
Features of the DataBank acquisition (continued)
• Immediately EPS positive
• Diversifies FRE earnings geographically anddeeper into the Information Management market
• Information management market is under-developed
• Catalyst for further growth
Information Management – Australia (cont.)
Business Mail
• Niche player in deregulated postal services industry
• Growth opportunities in business mail segment
• Integrated with Freightways express package operations
Business Strategy
Business strategy
• Enhancing capability within core business - people, infrastructure and IT
• Continued development of growth opportunities in Freightways’ existing three markets
• Positioning, People, Performance, Profit
• Explore complementary acquisition and alliance opportunities in New Zealand & Australia
Trading Update
• 10% revenue growth compared to 2005
• 5-year compound average annual revenue growth of 8%
Operating Revenue
-
50
100
150
200
250
300
Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06
Year Ended
$M 2nd Half
1st Half
EBITA
• 6% EBITA growth compared to 2005
• 5-year compound average annual EBITA growth of 17%
-
10
20
30
40
50
60
Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06
Year Ended
$M 2nd Half
1st Half
Current Financial Performance
Qtr ended 30 September
2006 2005 increase
$000 $000 %
Operating revenue 70,050 62,445 12%
EBITDA 15,564 14,416 8%
EBITA 13,973 13,236 6%
NPAT 6,288 6,109 3%
NB: September YTD numbers are drawn from management accounts
and are unaudited
Outlook
Outlook
• Near-term performance will be influenced by NZ economic conditions
• Investment in people, infrastructure and customer service initiatives (competitive advantage) will continue
• Characteristics of competitive environment expected to remain unchanged
• Consistent application of proven market strategies
• All subsidiaries well positioned to accommodate growth
• Recent Australian acquisition will assist FRE platform for growth and is immediately EPS positive
Summary
Strong successful business
Positioned to deliver continuing earnings growth
Delivering an attractive dividend yield
Questions
Resolutions
Re-election of Directors
Authority to fix Auditors remuneration
Annual Shareholders Meeting
26 October 2006