FLIWAY GROUP LIMITED ANNUAL RESULTS PRESENTATION FULL YEAR RESULT - PowerPoint PPT Presentation

FLIWAY GROUP LIMITED ANNUAL RESULTS PRESENTATION FULL YEAR RESULT TO JUNE 2015 28 AUGUST 2015 1 1 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION IMPORTANT NOTICE This presentation supplements our full year fjnancial statements to 30 June 2015, it should be read subject to and in conjunction with the fjnancial statements and our Investment Statement and Prospectus dated 6 March 2015 (as amended 19 March 2015). That material is available via the Investors section on our website, www.fmiway.com . All references to currency are to New Zealand dollars unless otherwise stated. This presentation contains forward-looking statements and projections. These refmect our current expectations based on what we think are reasonable assumptions but for any number of reasons these assumptions may prove incorrect. We give no warranty or representation as to our future fjnancial performance or any future matter. Except as required by law or NZX listing rules, we are not obliged to update this presentation after its release, even if things change materially. Some of the fjnancial information in this presentation has not been prepared in accordance with generally accepted accounting practice (“GAAP”). In particular, we show Pro Forma results and EBITDA. If needed, investors should get advice on how our non-GAAP information relates to our GAAP results. This presentation is for information purposes only. It is not an offer of securities, or a proposal or invitation to make any such offer. It is not investment advice or a securities recommendation, and does not take into account any person’s individual circumstances or objectives. Every investor should make an independent assessment of Fliway on the basis of expert fjnancial advice. Distribution of this presentation (including electronically) may be restricted by law. You should observe all such restrictions which may apply in your jurisdiction. To the maximum extent permitted by law, we will not be liable, whether in tort (including negligence) or otherwise, to you or any other person in relation to this presentation, including any error in it. 2 2 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION AGENDA 1. Overview 2. Financial Highlights 3. Capital Management 4. Operational Performance 5. Strategy and Outlook 3 3 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 1. OVERVIEW FY15 HIGHLIGHTS • Successfully raised capital of $25 million and listed on NZX Main Board • Delivered on IPO earnings forecasts • FY15 fjnancial results exceeded FY15 PFI forecasts, NPAT up 33.0% • Solid revenue progression, up 3.3% from FY14 • Improved capacity management in the domestic business unit • Warehousing site move in Auckland to accommodate growth • Wellington shed capacity fjlled • Dividend of 1.9 cents per share, in line with prospectus • Special dividend 0.5 cents per share, refmecting lower offer costs 4 4 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 1. OVERVIEW SEAMLESS GLOBAL SUPPLY CHAIN SOLUTIONS Our International Domestic Our People Partnerships Coverage Fleet 15 150 + 400 + Global SITES VEHICLES PEOPLE NETWORK Fliway was incorporated over 30 years ago, and today is one of New Zealand’s largest independent logistics providers. 5 5 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 1. OVERVIEW INTERNATIONAL FREIGHT, WAREHOUSING & DOMESTIC DELIVERY B2B OR B2C INTERNATIONAL DOMESTIC Logistics Transport International International Warehousing & Distribution Domestic Distribution Air & Ocean Freight Express Courier Air Courier Customs Brokerage Reverse Logistics Linehaul / Local Courier Service Small Package Door to Door Worldwide Logistics Spare Parts Logistics CourierPost Ocean & Air 6 6 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 2. FINANCIAL HIGHLIGHTS FLIWAY GROUP REVENUE 90,000 85,265 FY2014 FY2015 84,169 85,000 NZ$Millions Actual PFI Var 81,511 80,000 Revenue 81.511 84.169 85.265 -1.3% 74,391 75,000 73,197 Pro-Forma EBITDA 8.289 8.909 8.692 2.5% 70,000 Pro-Forma EBIT 6.835 6.870 6.620 3.8% 65,000 FY12 FY13 FY14 FY15 FY15 PFI Pro-Forma NPAT 4.426 3.995 3.921 1.9% NPAT for the Year 4.786 2.190 1.646 33.0% FLIWAY GROUP EBITDA Note: EBITDA = Earnings before net fjnance expense, 10,000 8,909 8,692 8,289 tax, depreciation of tangible assets and amortisation of 8,000 7,442 7,370 intangibles, and includes contribution from UPS-Fliway. 6,000 4,000 2,000 FY12 FY13 FY14 FY15 FY15 PFI 7 7 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 2. FINANCIAL HIGHLIGHTS DIVISIONAL EBITDA FY2014 FY2015 NZ$Millions Actual PFI Var Domestic 8.007 8.390 8.079 3.8% International 3.765 3.873 3.964 -2.3% Joint Venture 1.282 1.593 1.416 12.5% Head Offjce -4.765 -4.947 -4.767 3.8% Pro-Forma EBITDA 8.289 8.909 8.692 2.5% Note: EBITDA = Earnings before net fjnance expense, tax, depreciation of tangible assets and amortisation of intangibles, and includes contribution from UPS-Fliway. 8 8 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 3. CAPITAL MANAGEMENT CAPITAL EXPENDITURE • IT capex on SCE10 - timing • New Auckland Site incurred $275k CAPEX FY2014 FY2015 12M Dec 15F setup costs that weren’t forecast NZ$Millions Actual PFI Var PFI • 1HFY16 will be in line with PFI Trucks & Vans 1.459 1.543 1.708 -9.7% 1.112 • 12M to Dec PFI will likely be over Truck & Trailer 1.378 2.262 2.251 0.5% - IT 0.527 0.299 0.317 -5.7% 0.825 Other 0.350 0.501 0.106 372.6% - Disposals -0.297 -0.264 -0.385 -31.4% - Total CAPEX 3.417 4.341 3.997 8.6% 1.937 9 9 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 3. CAPITAL MANAGEMENT NET DEBT • Shareholder loans repaid • Bank debt reduced NET DEBT FY2014 FY2015 12M Dec 15F • Cash profjt & offer costs favourable NZ$Millions Actual PFI Var PFI • Improved working capital position Cash 8.090 6.837 1.773 285.6% 3.607 • Dividend $0.863 million October Debt -19.292 -15.000 -12.500 20.0% -12.500 • Special dividend $0.227 million October Shareholder Loan -2.969 - - - - Net Debt -14.171 -8.163 -10.727 -23.9% -8.893 10 10 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 4. OPERATIONAL PERFORMANCE DOMESTIC • Transport cost base improved ahead of forecast DOMESTIC FY2014 FY2015 12M Dec 15F • Transport revenues impacted NZ$Millions Actual PFI Var PFI by lower fuel Revenue 52.608 55.810 56.448 -1.1% 56.467 • Capacity utilization improved Pro-Forma • Warehousing growing ahead of forecast 8.007 8.390 8.079 3.8% 9.170 EBITDA • Warehousing management EBITDA % 15.2% 15.0% 14.3% 0.7% 16.2% delivering improved profjtability • Shed capacity in Wellington fjlled • In Auckland - 3,000 sqm shed exited and relocated to 7,200 sqm shed • New customer win underpins increased Auckland footprint 11 11 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 4. OPERATIONAL PERFORMANCE INTERNATIONAL • Revenue soft • Volatile sea freight pricing INTERNATIONAL FY2014 FY2015 12M Dec 15F • Margin impacted by lower volumes NZ$Millions Actual PFI Var PFI • Focus on front end of the business Revenue 28.903 28.359 28.817 -1.6% 29.177 Pro-Forma 3.765 3.873 3.964 -2.3% 3.832 EBITDA EBITDA % 13.0% 13.7% 13.8% -0.1% 13.1% 12 12 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 4. OPERATIONAL PERFORMANCE UPS-FLIWAY JOINT VENTURE • Improving export revenue • Cost control delivering profjt UPS-FLIWAY FY2014 FY2015 12M Dec 15F ahead of forecast NZ$Millions Actual PFI Var PFI • Dividend $50k (11.1%) above EBITDA (50%) 1.282 1.593 1.416 12.5% 1.306 forecast for H2FY15 NPAT (50%) 0.925 1.147 1.013 13.2% 0.926 TAX PAID DIVIDEND 0.899 0.950 0.900 5.6% 0.900 13 13 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 4. OPERATIONAL PERFORMANCE HEAD OFFICE • Tracking in line with forecast • Provided for the potential dispute HEAD OFFICE FY2014 FY2015 12M Dec 15F impact as per Offer Documents NZ$Millions Actual PFI Var PFI EBITDA -4.765 -4.772 -4.767 -0.1% -4.712 OTHER Dispute de minimis - -0.175 - - Pro-Forma EBITDA -4.765 -4.947 -4.767 -3.8% -4.712 • Interest rate derivatives revaluation cost $162k more than forecast • Loss on sale incorporates $67k write off of customer list acquired • Financing favourable as net debt lower than forecast 14 14 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 5. STRATEGY AND OUTLOOK MOVING AHEAD THROUGH TARGETED GROWTH • We have been selling to capacity in our network and securing new customers • We have increased penetration through existing customers • We are gaining additional new warehousing work • We are developing business in new sectors 15 15 2015 FULL YEAR RESULTS // AUGUST 2015

A FLIWAY PRESENTATION 5. STRATEGY AND OUTLOOK • We reaffjrm the MAT Dec 15 IPO earnings forecasts • Softer revenue but our cost position is strengthening • We have a conservative balance sheet with gearing at 0.9 times • We will evaluate acquisitions as each opportunity arises 16 16 2015 FULL YEAR RESULTS // AUGUST 2015

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