PowerPoint Presentation · 2015. 10. 22. · Title: PowerPoint Presentation Author: Cameron McKeown...

FLIWAY GROUP LIMITED ANNUAL SHAREHOLDERS MEETING 2015

23 OCTOBER 2015

A FLIWAY PRESENTATION DISCLAIMER

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This presentation should be read subject to and in conjunction with the financial 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.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 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 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.

FLIWAY Annual Shareholders Meeting | 23 October 2015

A FLIWAY PRESENTATION

AGENDA

3

1. Chairman’s Address

2. Managing Director’s Review

3. Ordinary Business

4. Resolutions

5. General Business


4

CRAIG STOBO



CHAIRMAN’S ADDRESS

5

BOARD OF DIRECTORS

Alan Isaac, Independent Director

Craig Stobo, Independent Chairman

Duncan Hawkesby, Managing Director


CHAIRMAN’S INTRODUCTION


6

EXECUTIVE TEAM

Jim Sybertsma, Chief Financial Officer

Cameron Mckeown, General Manager, Domestic

Gavin Satchell, General Manager International

Peter Sapiatzer, Chief Information Officer

Kate Bacchus, HR Manager


CHAIRMAN’S INTRODUCTION



FY15 HIGHLIGHTS

7

FY15 EARNINGS

EXCEEDED PFI FORECASTS

NPAT UP 33.0%

WAREHOUSING SITE

MOVE IN AUCKLAND TO

ACCOMMODATE GROWTH

IMPROVED CAPACITY

MANAGEMENT IN

DOMESTIC BUSINESS UNIT

SOLID REVENUE

PROGRESSION,

UP 3.3% FROM FY14

SUCCESSFUL

CAPITAL RAISE OF$25M

NZX MAIN BOARD LISTING

ON 9 APRIL 2015

WELLINGTON SHED

CAPACITY FILLED

STRATEGIC FINANCIAL OPERATIONAL



FY15 FINANCIAL HIGHLIGHTS

8

FLIWAY GROUP REVENUE

REVENUE

Note: EBITDA = Earnings before net finance expense,

tax, depreciation of tangible assets and amortisation of

intangibles, and includes contribution from UPS-Fliway.

90,000

85,000

80,000

75,000

70,000

65,000 FY12 FY13 FY14 FY15 FY15 PFI

73,197 74,391

81,511 84,169 85,265

FLIWAY GROUP EBITDA 10,000

8,000

6,000

4,000

2,000 FY12 FY13 FY14 FY15 FY15 PFI

7,442 7,370

8,289 8,909 8,692

FY2014 FY2015

NZ$ Millions Actual PFI Var

Revenue 81.511 84.169 85.265 -1.3%

Pro-Forma EBITDA 8.289 8.909 8.692 2.5%

Pro-Forma EBIT 6.835 6.870 6.620 3.8%

Pro-Forma NPAT 4.426 3.995 3.921 1.9%

NPAT for the Year 4.786 2.190 1.646 33.0%


9

DIVIDEND OF

1.9 CENTS PER SHARE

IN LINE WITH PFI FORECAST

SPECIAL DIVIDEND OF

0.5 CENTS PER SHARE

REFLECTING LOWER LISTING COSTS

• Imputation credits: 0.7389 cps (at 28% tax rate)

• Fully imputed at 28% tax rate

• Record date: 30 September 2015

• Payment date: 20 October 2015


FY15 DIVIDEND



MANAGING DIRECTORS REVIEW

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1. Business Description

2. Strategy

3. Financial Highlights

4. Capital Management

5. Operational Performance

6. Outlook

DUNCAN HAWKESBY



1. BUSINESS DESCRIPTION

11


SEAMLESS GLOBAL SUPPLY CHAIN SOLUTIONS


1. BUSINESS DESCRIPTION CONT’D

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INTERNATIONAL FREIGHT, WAREHOUSING & DOMESTIC DELIVERY B2B or B2C

International Air & Ocean Freight

Customs Brokerage

Door to Door Ocean & Air

Warehousing & Distribution

Spare Parts Logistics

Domestic Distribution

Linehaul / Local Courier

CourierPost

International Express Courier

Air Courier Service Small Package

Worldwide Logistics

Reverse Logistics

Logistics Transport



2. STRATEGY

13

OPTIMISING CAPACITY Continuing 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, including international air and ocean freight. Fliway will look to grow both organically

and through acquisition.

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. For example, Fliway could transport or warehouse other types of goods which require specialist

handling equipment or facilities or acquire companies which currently transport or warehouse such goods.

Fliway will also evaluate opportunities to enter new markets through acquisitions.



3. FINANCIAL HIGHLIGHTS

14

DIVISIONAL EBITDA

Note: EBITDA = Earnings before net finance expense, tax, depreciation of tangible

assets and amortisation of intangibles, and includes contribution from UPS-Fliway.

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 Office -4.765 -4.947 -4.767 3.8%

Pro-Forma EBITDA 8.289 8.909 8.692 2.5%


• Pro Forma EBITDA up 7.5% on LYR

• Record EBITDA Result

• Exceeded prospectus Forecast


4. CAPITAL MANAGEMENT

15

CAPITAL EXPENDITURE

• IT capex on Warehouse management

software (SCE10) is just timing

• New Auckland site incurred $275k

setup costs that were not forecast

• 1HFY16 will be in line with PFI

• 12M to Dec PFI will likely be over

CAPEX FY2014 FY2015 12M Dec 15F

NZ$ Millions Actual PFI Var PFI

Trucks & Vans 1.459 1.543 1.708 -9.7% 1.112

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



4. CAPITAL MANAGEMENT CONT’D

16

NET DEBT

• Shareholder loans repaid

• Bank debt reduced

• Cash profit & offer costs favourable

• Improved working capital position

• Dividend $863k in October

• Special dividend $227k in October

CAPEX FY2014 FY2015 12M Dec 15F


Cash 8.090 6.837 1.773 285.6% 3.607

Debt -19.292 -15.000 -12.500 20.0% -12.500

Shareholder

Loan -2.969 - - - -

Net Debt -14.171 -8.163 -10.727 -23.9% -8.893



5. OPERATIONAL PERFORMANCE

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DOMESTIC

• Transport revenues impacted by lower fuel

• Transport cost base improved ahead

of forecast

• Capacity utilisation improved

• Warehousing growing ahead of forecast

• Warehousing management delivering

• New customer win underpins increased

Auckland footprint


DOMESTIC FY2014 FY2015 12M Dec 15F


Revenue 52.608 55.810 56.448 -1.1% 56.467

Pro-Forma EBITDA 8.007 8.390 8.079 3.8% 9.170

EBITDA % 15.2% 15.0% 14.3% 0.7% 16.2%


5. OPERATIONAL PERFORMANCE CONT’D

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INTERNATIONAL

• Revenue soft

• Volatile sea freight pricing

• Margin impacted by lower volumes

• Focus on front end of the business

INTERNATIONAL FY2014 FY2015 12M Dec 15F


Revenue 28.903 28.359 28.817 -1.6% 29.177

Pro-Forma EBITDA 3.765 3.873 3.964 -2.3% 3.832

EBITDA % 13.0% 13.7% 13.8% -0.1% 13.1%




19

UPS-FLIWAY JOINT VENTURE

• Improving export revenue

• Cost control delivering profit ahead

of forecast

• Dividend $50k (11.1%) above forecast

for H2FY15

UPS-FLIWAY FY2014 FY2015 12M Dec 15F


EBITDA (50%) 1.282 1.593 1.416 12.5% 1.306

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




20

HEAD OFFICE

• Tracking in line with forecast

• Provided for the potential dispute

impact as per Offer Documents

HEAD OFFICE FY2014 FY2015 12M Dec

15F


EBITDA -4.765 -4.772 -4.767 -0.1% -4.712

Dispute de minimis - -0.175 - - -

Pro-Forma EBITDA -4.765 -4.947 -4.767 -3.8% -4.712

OTHER

• 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



6. OUTLOOK

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• We reaffirm the 12M 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


MOVING AHEAD THROUGH TARGETED GROWTH

22

CRAIG STOBO



CHAIRMANS ADDRESS

QUESTIONS


ORDINARY BUSINESS

GENERAL BUSINESS

24


• One-off PFI bonus for GM’s & CFO from D&G Hawkesby Trust

PFI DELIVERY BONUS EX SELLING SHAREHOLDER

FLIWAY GROUP LIMITED ANNUAL SHAREHOLDERS MEETING 2015 23 OCTOBER 2015


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