Full Year Presentation 9 August 2004
-
Upload
neville-stephens -
Category
Documents
-
view
23 -
download
2
description
Transcript of Full Year Presentation 9 August 2004
Full Year Presentation
9 August 2004
This presentation relates to the Freightways Limited NZX announcement and media release of 9 August 2004.
As such it should be read in conjunction with, and is subject to the explanations and views contained in, those releases.
Presentation
2004 highlights
Operating performance
Strategy and outlook
2004 Highlights
General Highlights
• Successful transition to public listing
• All subsidiaries have performed very well
• Recent acquisition at expectation
• IPO forecast has been exceeded
• Growth underpinned by increasing demand for Freightways’ services
Financial Highlights
2004 2003 variance
$000 $000 %
Operating revenue 214,498 195,625 10%
EBITDA 45,618 38,071 * 20%
EBITA 40,714 32,104 * 27%
NPAT 16,137
NPATA 21,081
Earnings per share (NPAT) 13 cents*pro-forma
Performance vs. IPO Forecast
Actual IPO Forecast$000 $000
Operating revenue 214,498 207,297
EBITA 40,714 36,118
Cash generated from operations 48,183 39,074
Capital expenditure 4,475 4,988
NPAT 16,137 13,533
Total dividend 15,800 14,000
Cash dividend per share 12.75 cents 11.3 cents
Operating Performance
• 10% revenue growth in 2004
• 5-year compound average revenue growth of 7%
Operating Revenue
-
50
100
150
200
250
Jun99 Jun00 Jun01 Jun02 Jun03 Jun04
Year Ended
$M
Where Revenue Growth Has Come From
180
190
200
210
220
2003 O rganic Pricing Market share Acquisition 2004
Growth drivers
$M 196
6%1%
2% 0.5% 214
EBITA
• 27% EBITA growth in 2004
• 5-year compound average EBITA growth of 18%
-
5
10
15
20
25
30
35
40
45
Jun99 Jun00 Jun01 Jun02 Jun03 Jun04
Year Ended
$M
Drivers of 2004 EBITA growth
• Disciplined margin focus relating to new business
• Favourable business mix
• Productivity gains
• Good cost control
• Operating leverage gained by adding revenue to established national infrastructure
Cash Flows$M
Cash generated from operations 48
Capital expenditure at expectation (5)
Recent acquisition funded from surplus cash (7.5)
FEL's preference shares redeemed (post-IPO) (44)
Bank borrowings repaid on 31 December 2003 (4)
Balance Sheet$M
Strong working capital position (negative) (9)
Bank borrowings $2m lower than IPO forecast (131)($136m term debt facility consistent with expectation)
New equity raised as part of IPO 17
FEL's preference shares (minority interest) redeemed 60
Dividend
Interim Final Total
Total cash dividend ($) 7,250,000 8,550,000 15,800,000
Cents per share (fully imputed) 5.85 6.90 12.75
Record date: Friday, 17 September 2004
Payment date: Thursday, 30 September 2004
Strategy and Outlook
Strategy
• Continued development of growth opportunities in Freightways’ existing three core markets
• Positioning, People, Performance, Profit
• Explore incremental and complementary growth opportunities
• Invest in IT and infrastructure
Outlook
• Economy favourable from Freightways’ perspective
• No change expected to Freightways’ operating environment
• Consistent application of proven market strategies
• Business as usual
Summary
Strong successful business
Positioned to deliver continuing earnings growth
Delivering an attractive dividend yield