Mainfreight Limited — Annual Report 2022

May 25, 2022

==> picture [441 x 31] intentionally omitted <==

Results announcement (for Equity Security issuer/Equity and Debt Security issuer)

Results for announcement to the market	Results for announcement to the market	Results for announcement to the market
Name of Issuer	Mainfreight Limited
Reporting Period	12 months to 31 March 2022
Previous Reporting Period	12 months to 31 March 2021
Currency	NZD
	Amount (000s)	Percentage Change
Revenue from Continuing Operations	$5,218,259	47.2%
Total Revenue	$5,218,259	47.2%
Net Profit/(Loss) from Continuing Operations	$355,397	88.9%
Total Net Profit/(Loss)	$355,397	88.9%
Interim/Final Dividend
Amount per Quoted Equity Security	$0.87000000
Imputed Amount per Quoted Equity Security	$0.15352941
Record Date	15/07/2022
Dividend Payment Date	22/07/2022
	Current Period	Prior Comparable Period
Net tangible assetsper Quoted EquitySecurity	$11.4616	$8.2706
A brief explanation of any of the figures above necessaryto enable the figures to be understood
Authority for this Announcement
Name of person authorised to make this announcement	Tim Williams, Chief Financial Officer
Contact person for this announcement	Tim Williams
Contact phone number	+64 9 259 5510
Contact email address	tim@mainfreight.com
Date of release through MAP	26/05/2022

Unaudited financial statements accompany this announcement.

MAINFREIGHT LIMITED Preliminary Full Year Announcement For the Full Year ended 31 March 2022

==> picture [138 x 23] intentionally omitted <==

Preliminary full year report on consolidated results (including the results for the previous corresponding full year). This report has been prepared in a manner which complies with generally accepted accounting practice and fairly presents the matters to which the report relates and is based on unaudited financial statements.

The Listed Issuer has a formally constituted Audit Committee of the Board of Directors.

Income Statement For the Full Year ended 31 March 2022

Notes	Year ended Year ended 31 March 2022 31 March 2021 unaudited audited
Total Revenue Transport Costs Labour Expenses Other Expenses Earnings before Finance Costs, Tax, Depreciation and Amortisation Depreciation of Right to Use Assets Finance Costs Relating to Lease Liabilities Other Depreciation & Amortisation Expenses Other Finance Costs Profit before Taxation for the Year Income Tax Expense Net Profit for the Year Earnings per share Basic and diluted earnings (cents per share)	$000 $000
	5,218,259 3,543,838
	(3,356,790) (2,141,744) (886,614) (723,444) (263,818) (211,836)
	711,037 466,814
	(127,289) (113,938) (15,731) (16,225) (73,324) (68,460) (5,312) (5,784)
	489,381 262,407 (133,984) (74,297)
	355,397 188,110
	352.93 186.81
For the Full Year ended 31 March 2022 Statement of Comprehensive Income
Net Profit for the Period Other Comprehensive Income for the Period, Net of Tax Other comprehensive income to be reclassified to profit/(loss) in subsequent periods Exchange Differences on Translation of Foreign Operations Income Tax Effect Net Other Comprehensive income to be reclassified to profit/(loss) in subsequent periods Other comprehensive income not to be reclassified to profit/(loss) in subsequent periods Revaluation of Land including Foreign Exchange Movements Income Tax effect Defined Benefit Pension Provision Income Tax effect Net Other Comprehensive income not to be reclassified to profit/(loss) in subsequent periods Other Comprehensive Income for the Period, Net of Tax Total Comprehensive Income for the Period, Net of Tax	355,397 188,110 (7,412) (22,545) (1,047) (2,782)
	(8,459) (25,327)
	82,659 55,814 (15,016) (5,324) 455 (159) (114) 40
	67,984 50,371
	59,525 25,044
	414,922 213,154

The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED Balance Sheet As at 31 March 2022

==> picture [127 x 22] intentionally omitted <==

	31 March 2022 31 March 2021 unaudited audited	31 March 2022 31 March 2021 unaudited audited
Current Assets Bank Trade Debtors Income Tax Receivable Other Debtors Non‐current Tangible Assets Property Plant & Equipment Right of Use Assets Non‐current Intangible Assets Software Goodwill Other Intangible Assets Deferred Tax Asset Total Assets	$000 $000 Current Liabilities 202,258 139,555 Bank 805,568 489,246 Trade Creditors & Accruals 275 251 Employee Entitlements 48,563 89,531 Provision for Taxation Lease Liability for Right of Use Assets Asset Finance Loans 1,056,664 718,583 Non‐current Liabilities 925,190 755,566 Bank Term Loan 185,020 162,597 Employee Entitlements 585,970 567,956 Deferred Tax Liability Lease Liability for Right of Use Assets Asset Finance Loans 1,696,180 1,486,119 Total Liabilities Shareholders' Equity 52,081 53,510 Share Capital 204,498 208,626 Retained Earnings 1,288 1,607 Revaluation Reserve 17,240 18,461 Foreign Currency Translation Reserve Defined Benefit Pension Reserve 275,107 282,204 Total Equity 3,027,951 2,486,906 Total Liabilities & Equity	$000 $000
		‐ ‐ 562,004 412,826 152,305 91,997 56,609 30,344 121,136 118,158 8,841 9,198
		900,895 662,523 176,005 210,000 2,519 2,922 10,684 6,571 490,099 467,276 18,480 22,568
		697,787 709,337 1,598,682 1,371,860 85,821 85,821 1,152,081 897,383 208,737 141,094 (17,119) (8,660) (251) (592)
		1,429,269 1,115,046
		3,027,951 2,486,906

The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED Statement of Changes in Equity For the Full Year ended 31 March 2022
	Foreign Defined Asset Currency Benefit Ordinary Revaluation Translation Pension Retained Total Shares Reserve Reserve Reserve Earnings Equity
Twelve Months to 31 March 2022 (unaudited) Balance at 1 April 2021 Profit for the Period Other Comprehensive Income Total Comprehensive Income for the Period Transactions with Owners in their Capacity as Owners Supplementary Dvidends Dividends Paid Foreign Investor Tax Credit Balance at 31 March 2022 Twelve Months to 31 March 2021 (audited) Balance at 1 April 2020 Profit for the Period Other Comprehensive Income Total Comprehensive Income for the Period Transactions with Owners in their Capacity as Owners Supplementary Dvidends Dividends Paid Foreign Investor Tax Credit Balance at 31 March 2021	$000 $000 $000 $000 $000 $000
	85,821 141,094 (8,660) (592) 897,383 1,115,046 ‐ ‐ ‐ ‐ 355,397 355,397 ‐ 67,643 (8,459) 341 ‐ 59,525
	‐ 67,643 (8,459) 341 355,397 414,922 ‐ ‐ ‐ ‐ (3,674) (3,674) ‐ ‐ ‐ ‐ (100,699) (100,699) ‐ ‐ ‐ ‐ 3,674 3,674
	85,821 208,737 (17,119) (251) 1,152,081 1,429,269
	85,821 90,604 16,667 (473) 773,720 966,339 ‐ ‐ ‐ ‐ 188,110 188,110 ‐ 50,490 (25,327) (119) ‐ 25,044
	‐ 50,490 (25,327) (119) 188,110 213,154 ‐ ‐ ‐ ‐ (2,132) (2,132) ‐ ‐ ‐ ‐ (64,447) (64,447) ‐ ‐ ‐ ‐ 2,132 2,132
	85,821 141,094 (8,660) (592) 897,383 1,115,046

The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED Cash Flow Statement For the Full Year ended 31 March 2022

==> picture [168 x 11] intentionally omitted <==

==> picture [173 x 19] intentionally omitted <==

	Year ended Year ended 31 March 2022 31 March 2021 unaudited audited
Cash Flows from Operating Activities Receipts from Customers Interest Received Payments to Suppliers and Team Members Finance Charge on NZ IFRS 16 Leases Interest Paid Income Taxes Paid Net Cash Flows from Operating Activities Cash Flows from Investing Activities Proceeds from Sale of Property, Plant & Equipment Proceeds from Sale of Software Purchase of Property, Plant & Equipment Purchase of Software Advances to Team Members Net Cash Flows from Investing Activities Cash Flows from Financing Activities Proceeds of Long Term Loans Dividend Paid to Shareholders Repayment of Loans Lease Payments NZ IFRS 16 Net Cash Flows from Financing Activities Net Increase / (Decrease) in Cash and Cash Equivalents Net Foreign Exchange Differences Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period Comprised: Bank and Short Term Deposits Bank Overdraft	$000 $000
	4,930,932 3,459,132 341 307 (4,289,186) (2,992,486) (15,731) (16,225) (5,312) (5,784) (117,247) (68,662)
	503,797 376,282
	3,724 3,529 66 ‐ (175,908) (104,048) (16,962) (18,030) ‐ (2)
	(189,080) (118,551) 74,792 62,054 (100,699) (64,447) (104,724) (118,073) (119,336) (107,125)
	(249,967) (227,591) 64,750 30,140 (2,047) (6,719) 139,555 116,134
	202,258 139,555
	202,258 139,555 ‐ ‐
	202,258 139,555

The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED Notes to the Financial Statements For the Full Year ended 31 March 2022

==> picture [166 x 27] intentionally omitted <==

1 Corporate Information

The preliminary full year report announcement of Mainfreight Limited ("the parent") and its subsidiaries ("the Group") for the full year ended 31 March 2022 was authorised for issue in accordance with a resolution of the Directors.

Mainfreight Limited is a company limited by shares incorporated in New Zealand whose shares are publicly traded on the NZX Main Board (New Zealand Stock Exchange).

2 Accounting Policies

Accounting policies remain consistent with the prior year ended 31 March 2021 financial statements.

3 Required NZX Disclosures

Required NZX Disclosures Movements in Ordinary Shares on Issue Closing balance Average balance during the period Net Tangible Assets Net Tangible Assets Net Tangible Assets per Security (cents per share) Dividends Paid and Proposed Recognised Amounts Declared and Paid during the Period to Parent Shareholders Final Fully Imputed Dividend for 2021: 45.0 cents (2020: 34.0 cents) Interim Fully Imputed Dividend for 2022: 55.0 cents (2021: 30.0 cents) Unrecognised Amounts Final Fully Imputed Dividend for 2022: 87.0 cents (2021: 45.0 cents)	Parent Year ended Year ended 31 March 2022 31 March 2021 unaudited audited
	Shares Shares
	100,698,548 100,698,548 100,698,548 100,698,548
	$000 $000
	1,154,162 832,842 1,146.16 827.06 45,314 34,237 55,385 30,210
	100,699 64,447 87,608 45,314

After the balance date, the above unrecognised dividends were approved by Directors' resolution dated 25 May 2022

4 Annual Report and Annual Meeting

The annual report is expected to be available on 28 June 2022.

The Annual Meeting is to be held at 4.00pm on Thursday 28 July 2022; venue to be advised.

MAINFREIGHT LIMITED Notes to the Financial Statements For the Full Year ended 31 March 2022

==> picture [126 x 21] intentionally omitted <==

5 Segmental Reporting

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses whose operating results are regularly reviewed by the entity’s chief operating decision maker and for which discrete financial information is available. The Group operates in the domestic supply chain (i.e. moving and storing freight within countries) and air and ocean freight industries (i.e. moving freight between countries).

New Zealand, Australia, The Americas and Europe are each reported to management as one segment as the businesses there perform both domestic and air and ocean services.

The segmental results from operations are disclosed below.

Geographical Segments

The following table represents revenue, margin and certain asset information regarding geographical segments for the years ended 31 March 2022 and 31 March 2021.

Year to 31 March 2022 (unaudited) Operating Revenue ‐ Sales to Customers outside the Group ‐ Intersegment Sales Total Revenue PBT Net Interest Expense Depreciation & Amortisation Capital Expenditure Trade Receivables Non‐current Assets Total Assets Total Liabilities Year to 31 March 2021 (audited) Operating Revenue ‐ Sales to Customers outside the Group ‐ Intersegment Sales Total Revenue PBT Net Interest Expense Depreciation & Amortisation Capital Expenditure Trade Receivables Non‐current Assets Total Assets Total Liabilities	The Inter‐ New Zealand Australia Americas Asia Europe Segment Total
	$000 $000 $000 $000 $000 $000 $000
	1,130,199 1,246,199 1,563,240 331,480 947,141 ‐ 5,218,259 14,455 43,509 78,267 398,875 66,062 (601,168) ‐
	1,144,654 1,289,708 1,641,507 730,355 1,013,203 (601,168) 5,218,259
	136,479 114,007 144,685 41,401 52,809 ‐ 489,381 6,578 6,273 4,999 132 2,720 ‐ 20,702 55,083 50,462 34,334 3,346 57,388 ‐ 200,613
	80,445 64,071 19,042 1,737 27,574 ‐ 192,869 141,749 197,252 286,019 68,461 178,275 (66,188) 805,568 752,569 543,880 297,705 18,649 358,484 ‐ 1,971,287 920,087 777,168 650,161 160,758 585,965 (66,188) 3,027,951 369,475 430,063 429,288 93,623 342,421 (66,188) 1,598,682
	845,554 939,340 859,647 155,392 743,905 ‐ 3,543,838 2,199 25,773 50,574 160,354 44,708 (283,608) ‐
	847,753 965,113 910,221 315,746 788,613 (283,608) 3,543,838
	97,814 76,573 38,627 10,501 38,892 ‐ 262,407 6,289 7,267 4,948 143 3,055 ‐ 21,702 48,411 46,910 27,779 3,086 56,212 ‐ 182,398
	73,612 18,503 9,859 1,418 18,686 ‐ 122,078 107,640 129,358 140,222 52,032 105,504 (45,510) 489,246 672,691 473,197 229,823 17,862 374,750 ‐ 1,768,323 805,375 640,163 410,136 92,505 584,237 (45,510) 2,486,906 348,340 379,753 272,829 52,965 363,483 (45,510) 1,371,860

MAINFREIGHT LIMITED Notes to the Financial Statements For the Full Year ended 31 March 2022

==> picture [130 x 21] intentionally omitted <==

5 Segmental Reporting ‐ continued

Division Segments

The following table represents revenue and PBT in respect of the three main types of services for the years ended 31 March 2021 and 31 March 2022.

Year Ended 31 March 2022 Revenue PBT Year Ended 31 March 2021 Revenue PBT	Domestic Transport Warehousing Air & Ocean $000 $000 $000 1,914,903 583,821 2,719,535 183,861 55,262 250,258 1,610,741 452,116 1,480,981 140,527 42,207 79,673	Total
		$000
		5,218,259 489,381 3,543,838 262,407

Reconciliation between non‐GAAP and the Income Statement Profit before Taxation for the Year Interest Income Finance Costs Relating to Lease Liabilities Other Finance Costs EBITA Depreciation of Right of Use Assets Other Depreciation and Amortisation Expenses EBITDA (Adjusted)	31 March 2022 31 March 2021 unaudited audited
	$000 $000
	489,381 262,407
	(341) (307) 15,731 16,225 5,312 5,784
	510,083 284,109
	127,289 113,938 73,324 68,460
	710,696 466,507

EBITDA (adjusted) is defined as earnings before net interest expense, tax, depreciation, amortisation, and royalties (segment only; not Group).

There are no customers in any segment that comprise more than 10% of that segment's revenue.

Bank term loan is allocated based on segment net assets excluding bank term loan.

The geographical segments are determined based on the location of the Group's assets.