Annual Shareholders Meeting 25 November 2004. Wayne Boyd, Chairman.
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Transcript of Annual Shareholders Meeting 25 November 2004. Wayne Boyd, Chairman.
General Highlights
• Successful listing on NZX September 2003
• Approximately 7,000 retail and institutional shareholders
• 90% of shares held in New Zealand
• All subsidiaries have performed very well
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
Managing Director’s Presentation
Industry overview and business description
Business strategy
Trading update
Outlook
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
Business Description - Strengths
• Experienced people
• Network of independent contractors
• Operational excellence and profit culture
• Dedicated express package linehaul network
• Established multi-brand strategy
Multi-Brand Strategy
Price
Service
Three major brands:
– Differentiated by price and service
– Captures growth across entire market
– Provides defence against competitive threats
Freightways’ Network Courier Brands
• Total information management solution
• Records management growth opportunity
• Integrated with Freightways express package operations
Information Management
Business Mail
• Niche player in deregulated postal services industry
• Growth opportunities in business mail segment
• Integrated with Freightways express package operations
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
• 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 2nd Half
1st Half
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 2nd Half
1st Half
Current Financial Performance
Oct. 2004 Oct. 2003 variance
$000 $000 %
Operating revenue 74,788 67,105 11%
EBITDA 16,977 13,390 27%
EBITA 15,517 11,736 32%
NPAT 6,496 4,579 42%
NB: October YTD numbers are drawn from management accounts
and are unaudited
Outlook
• Economy remains favourable from Freightways’ perspective
• No material 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