FLIWAY GROUP LIMITED ANNUAL SHAREHOLDERS MEETING 2017 19 OCTOBER 2017
A FLIWAY PRESENTATION IMPORTANT NOTICE This presentation supplements our full year financial statements to 30 June 2017 and should be read subject to and in conjunction with the financial statements. The Fliway Investment Statement and Prospectus dated 6 March 2015 (as amended 19 March 2015). is available via the Investors section on our website, www.fliway.com . All references to currency are to New Zealand dollars unless otherwise stated. This presentation contains forward-looking statements and projections. These reflect 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 financial 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 financial information in this presentation has not been prepared in accordance with generally accepted accounting practice (“GAAP”). In particular, we show Underlying EBIT 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 circumstan ces or objectives. Every investor should make an independent assessment of Fliway on the basis of expert financial 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 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION AGENDA Chairman’s Address 1. Managing Director’s Review 2. 3. Ordinary Business 4. Resolutions 5. General Business 3 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION CHAIRMA N’S ADDRESS CRAIG STOBO 4 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION CHAIRMA N’S INTRODUCTION BOARD OF DIRECTORS Alan Isaac, Independent Director Craig Stobo, Independent Chairman Duncan Hawkesby, Managing Director 5 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION CHAIRMA N’S INTRODUCTION EXECUTIVE TEAM Jim Sybertsma, Chief Financial Officer Cameron Mckeown, General Manager, Domestic Jon Gundy, General Manager International Colin Burrow, Chief Information Officer Kate Bacchus, General Manager People 6 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION FY17 OVERVIEW STRATEGIC FINANCIAL OPERATIONAL RESULT IMPACTED BY ONE- EARNINGS PER SHARE SUB-SCALE COURIER OFF EVENTS 8.6 CENTS OPERATION EXITED CASH DIVIDEND PER CUSTOMER LOSS LOWERED JV COST BASE SHARE 6.0 CENTS KAIKOURA EARTHQUAKE 2H FY17 SALES GROWTH CAPACITY ADDED IN EXCESS TRANSPORT TRANSPORT TO +8.7% OVER PCP CAPACITY COSTLY GIVEN BOTH DIVISIONS ACCOMMODATE GROWTH RAIL TO ROAD DEMAND UPS RELATIONSHIP INCREASED REVENUES TECHNOLOGY WIDENED EQUATE TO WORKING ENHANCEMENTS ADDITIONAL WORK GAINED CAPITAL LIFT ACROSS THE GROUP 7 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION FY17 FINANCIAL OVERVIEW FLIWAY GROUP REVENUE -1.4% +8.7% $M 45.0 90.0 44.0 85.4 84.2 82.6 85.0 81.5 43.0 42.0 80.0 74.4 41.0 75.0 40.0 70.0 Half 39.0 year 65.0 38.0 splits 60.0 37.0 55.0 36.0 50.0 1H 2H FY16 FY17 FY13 FY14 FY15 FY16 FY17 FLIWAY GROUP UNDERLYING EBITDA -30.3% $M 7.0 12.0 10.8 6.0 -13.0% 10.0 9.0 5.0 8.4 8.3 7.5 8.0 4.0 Half year 3.0 6.0 splits 2.0 4.0 1.0 2.0 0.0 0.0 FY16 FY17 1H 2H FY13 FY14 FY15 FY16 FY17 8 Note: Underlying EBITDA = Earnings before net finance expense, tax, depreciation of tangible assets and amortisation of intangibles, and FLIWAY Annual Shareholders Meeting | 19 October 2017 includes contribution from UPS-Fliway.
A FLIWAY PRESENTATION FY17 DIVIDENDS INTERIM DIVIDEND OF FINAL DIVIDEND 2.0 CENTS PER SHARE • Imputation credits: 1.5556 cps (at 28% tax rate) FINAL DIVIDEND OF • Fully imputed at 28% tax rate 4.0 CENTS PER SHARE REFLECTING IMPROVED SECOND HALF • Record date: 8 September 2017 • Payment date: 15 September 2017 FULL YEAR DIVIDEND OF 6.0 CENTS PER SHARE EQUATES TO A GROSS YIELD OF 6.9% AT THE LISTING PRICE OF $1.20 / SHARE 9 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION MANAGING DIRECTORS REVIEW DUNCAN HAWKESBY 1. Business Description 2. Strategy 3. Financial Overview 4. Capital Management 5. Operational Performance 6. Outlook 10 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION 1. BUSINESS DESCRIPTION SEAMLESS GLOBAL SUPPLY CHAIN SOLUTIONS 11 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION 1. BUSINESS DESCRIPTION CONT’D INTERNATIONAL FREIGHT, WAREHOUSING & DOMESTIC DELIVERY B2B or B2C Logistics Transport International Warehousing International Domestic Distribution Air & Ocean Freight Express Courier & Distribution Air Courier Service Reverse Logistics Linehaul / Local Courier Customs Brokerage Small Package Door to Door CourierPost Spare Parts Logistics Worldwide Logistics Ocean & Air 12 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION 2. STRATEGY OPTIMISING CAPACITY To maximise operating leverage, including through using its capacity efficiently and gaining efficiencies from the use of technology. GROWING EXISTING BUSINESS Fliway is a leading provider of specialised transport and warehousing in a number of sectors. Fliway plans to continue to invest in business development initiatives to target increased customer and market penetration in these existing sectors. ENTERING NEW MARKETS Fliway has specialist equipment, facilities and expertise which is distinct from its competitors. Fliway intends to leverage this equipment and expertise to target sectors which the business does not currently operate in. 13 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION 3. FINANCIAL OVERVIEW DIVISIONAL UNDERLYING EBITDA $10.817m $8.304m +1.1% -16.9% -3.1% -40.9% FY16 Domestic Int'l UPS-Fliway Head Office FY17 Domestic International UPS-Fliway JV Head Office Note: EBITDA = Earnings before net finance expense, tax, depreciation of tangible assets and amortisation of intangibles, and includes contribution from UPS-Fliway. 14 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION 4. CAPITAL MANAGEMENT CAPITAL EXPENDITURE $M GROSS CAPEX 5.0 4.7 • Investing for growth : 3.8 4.0 • Logistics warehouse management system 2.7 3.0 • Extended Auckland site by 6,000sqm 2.0 • Additional network capacity 1.0 0.0 FY15 FY16 FY17 $M NET DEBT NET DEBT 20.0 Facility limit $18m 16.0 • Cash profit lower, dividends paid in last 12M $3.340m • 12.0 Strong balance sheet well positioned to capture targeted 8.2 7.8 growth opportunities 8.0 5.8 • Working capital position pushed by growing revenue 4.0 • Capital expenditure ahead of D&A required to accommodate 0.0 FY15 FY16 FY17 revenue growth 15 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION 5. OPERATIONAL PERFORMANCE DOMESTIC DOMESTIC FY15 FY16 FY17 Var • Transport volume levels ahead of last year despite customer loss NZ$Million's • One-off events and capacity constraints impact on p Revenue 55.810 55.682 57.699 3.6% performance of Transport: q Underlying EBITDA 8.390 10.170 8.448 -16.9% Freight volumes outside network capacity meant higher cost delivery solutions EBITDA % 15.0% 18.3% 14.6% Capacity impacted by Kaikoura earthquake, restructure (customer loss), lane mix change and Half year splits linehaul equipment availability • Warehousing 2H17 revenues up on last year +8.5% with good cost management delivering improved EBITDA DOMESTIC 1H16 2H16 1H17 2H17 • A number of new customers across Domestic required NZ$Million's increased warehouse capacity in Auckland by an Revenue 29.217 26.465 28.981 28.718 additional 6,000 sqm (20%) in Q3 to accommodate this growth Underlying EBITDA 5.894 4.276 4.2710 4.177 EBITDA % 20.2% 16.2% 14.7% 14.5% • Exited sub-scale courier business 16 FLIWAY Annual Shareholders Meeting | 19 October 2017
A FLIWAY PRESENTATION 5. OPERATIONAL PERFORMANCE INTERNATIONA L INTERNATIONAL FY15 FY16 FY17 Var • Strong customer focus and new customer NZ$Million's wins meant 2H17 revenue up 9.1% on p Revenue 28.359 26.962 27.722 2.8% last year • EBITDA broadly in line with last year q Underlying EBITDA 3.873 3.575 3.462 -3.1% EBITDA % 13.7% 13.3% 12.5% • Team performing well under new leadership • Strengthened network and carrier relationships • Rolling out technology enhancements for customers 17 FLIWAY Annual Shareholders Meeting | 19 October 2017
Recommend
More recommend
