Mainfreight Limited — Annual Report 2023

May 24, 2023

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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 2023
Previous Reporting Period	12 months to 31 March 2022
Currency	NZD
	Amount (000s)	Percentage Change
Revenue from Continuing Operations	$5,675,709	8.8%
Total Revenue	$5,675,709	8.8%
Net Profit/(Loss) from Continuing Operations	$426,476	20.0%
Total Net Profit/(Loss)	$426,476	20.0%
Interim/Final Dividend
Amount per Quoted Equity Security	$0.87000000
Imputed Amount per Quoted Equity Security	$0.15352941
Record Date	13/07/2023
Dividend Payment Date	21/07/2023
	Current Period	Prior Comparable Period
Net tangible assetsper Quoted EquitySecurity	$14.2252	$11.4616
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	25/05/2023

Unaudited financial statements accompany this announcement.

MAINFREIGHT LIMITED Preliminary Full Year Announcement For the Full Year ended 31 March 2023

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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 2023

Notes	Year ended Year ended 31 March 2023 31 March 2022 unaudited unaudited
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)	$NZ000 $NZ000
	5,675,709 5,218,259
	(3,444,287) (3,356,790) (1,023,106) (886,614) (357,288) (263,818)
	851,028 711,037
	(155,359) (127,289) (17,326) (15,731) (83,630) (73,324) (7,315) (5,312)
	587,398 489,381 (160,922) (133,984)
	426,476 355,397
	423.52 352.93
For the Full Year ended 31 March 2023 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	426,476 355,397 41,514 (7,412) 1,420 (1,047)
	42,934 (8,459)
	1,625 82,659 (411) (15,016) 157 455 (39) (114)
	1,332 67,984
	44,266 59,525
	470,742 414,922

The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED Balance Sheet As at 31 March 2023

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	31 March 2023 31 March 2022 unaudited audited	31 March 2023 31 March 2022 unaudited audited
$NZ000 $NZ000 Current Assets Current Liabilities Bank 341,991 202,258 Trade Creditors & Accruals Trade Debtors 619,470 805,568 Employee Entitlements Income Tax Receivable 22,411 275 Provision for Taxation Properties Held for Sale 7,748 - Lease Liability for Right of Use Assets Other Debtors 66,295 48,563 Asset Finance Loans 1,057,915 1,056,664 Non-current Tangible Assets Non-current Liabilities Property 1,068,880 925,190 Bank Term Loan Plant & Equipment 276,983 185,020 Employee Entitlements Right of Use Assets 744,914 585,970 Lease Liability for Right of Use Assets Deferred Tax Liability Asset Finance Loans 2,090,777 1,696,180 Total Liabilities Non-current Intangible & Deferred Tax Assets Shareholders' Equity Software 54,638 52,081 Share Capital Goodwill 218,894 204,498 Retained Earnings Other Intangible Assets 1,130 1,288 Revaluation Reserve Deferred Tax Asset 19,693 17,240 Foreign Currency Translation Reserve Defined Benefit Pension Reserve 294,355 275,107 Total Equity Total Assets 3,443,047 3,027,951 Total Liabilities & Equity		$NZ000 $NZ000
		492,966 562,004 147,311 152,305 60,979 56,609 155,626 121,136 9,258 8,841
		866,140 900,895 186,788 176,005 4,085 2,519 625,478 490,099 10,613 10,684 23,134 18,480
		850,098 697,787 1,716,238 1,598,682 85,821 85,821 1,405,355 1,152,081 209,951 208,737 25,815 (17,119) (133) (251)
		1,726,809 1,429,269
		3,443,047 3,027,951

The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED Statement of Changes in Equity For the Full Year ended 31 March 2023
	Foreign Defined Asset Currency Benefit Ordinary Revaluation Translation Pension Retained Total Shares Reserve Reserve Reserve Earnings Equity
Twelve Months to 31 March 2023 (unaudited) Balance at 1 April 2022 Profit for the Period Other Comprehensive Income Total Comprehensive Income for the Period Transactions with Owners in their Capacity as Owners Supplementary Dividends Dividends Paid Foreign Investor Tax Credit Balance at 31 March 2023 Twelve Months to 31 March 2022 (audited) 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 Dividends Dividends Paid Foreign Investor Tax Credit Balance at 31 March 2022	$NZ000 $NZ000 $NZ000 $NZ000 $NZ000 $NZ000
	85,821 208,737 (17,119) (251) 1,152,081 1,429,269 - - - - 426,476 426,476 - 1,214 42,934 118 - 44,266
	- 1,214 42,934 118 426,476 470,742 - - - - (6,964) (6,964) - - - - (173,202) (173,202) - - - - 6,964 6,964
	85,821 209,951 25,815 (133) 1,405,355 1,726,809
	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

The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED Cash Flow Statement For the Full Year ended 31 March 2023

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	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 Repayments from 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	$NZ000 $NZ000
	5,894,809 4,930,932 2,767 341 (4,931,112) (4,289,186) (17,326) (15,731) (10,082) (5,312) (181,851) (117,247)
	757,205 503,797
	9,843 3,724 132 66 (303,491) (175,908) (20,396) (16,962) 3 -
	(313,909) (189,080) 197,925 74,792 (173,202) (100,699) (197,348) (104,724) (146,734) (119,336)
	(319,359) (249,967) 123,937 64,750 15,796 (2,047) 202,258 139,555
	341,991 202,258
	341,991 202,258 - -
	341,991 202,258

The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED Notes to the Financial Statements For the Full Year ended 31 March 2023

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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 2023 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 2022 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 2022: 87.0 cents (2021: 45.0 cents) Interim Fully Imputed Dividend for 2023: 85.0 cents (2022: 55.0 cents) Unrecognised Amounts Final Fully Imputed Dividend for 2023: 87.0 cents (2022: 87.0 cents)	Parent Year ended Year ended 31 March 2023 31 March 2022 unaudited audited
	Shares Shares
	100,698,548 100,698,548 100,698,548 100,698,548
	$NZ000 $NZ000
	1,432,454 1,154,162 1,422.52 1,146.16 87,608 45,314 85,594 55,385
	173,202 100,699 87,608 87,608

After the balance date, the above unrecognised dividends were approved by Directors' resolution dated 24 May 2023

4 Annual Report and Annual Meeting

The annual report is expected to be available on 27 June 2023.

The Annual Meeting is to be held at 4.00pm on Thursday 28 July 2023; venue to be advised.

MAINFREIGHT LIMITED Notes to the Financial Statements For the Full Year ended 31 March 2023

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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 2023 and 31 March 2022.

Year to 31 March 2023 (unaudited) Operating Revenue - Sales to Customers outside the Group - Intersegment Sales Total Revenue PBT Net Interest Expense Depreciation & Amortisation Capital Expenditure Trade Debtors Non-current Assets Total Assets Total Liabilities Year to 31 March 2022 (audited) Operating Revenue - Sales to Customers outside the Group - Intersegment Sales Total Revenue PBT Net Interest Expense Depreciation & Amortisation Capital Expenditure Trade Debtors Non-current Assets Total Assets Total Liabilities	The Inter- New Zealand Australia Americas Asia Europe Segment Total
	$NZ000 $NZ000 $NZ000 $NZ000 $NZ000 $NZ000 $NZ000
	1,284,860 1,555,064 1,538,575 244,885 1,052,325 - 5,675,709 21,898 60,450 130,382 173,346 85,936 (472,012) -
	1,306,758 1,615,514 1,668,957 418,231 1,138,261 (472,012) 5,675,709
	169,421 150,094 143,048 46,644 78,191 - 587,398 6,826 8,732 5,489 (6) 3,600 - 24,641 63,271 58,272 50,988 5,128 61,330 - 238,989
	101,795 137,732 41,830 2,074 40,456 - 323,887 135,829 170,630 149,925 29,937 186,931 (53,782) 619,470 844,224 688,847 382,986 20,721 448,354 - 2,385,132 1,075,382 922,838 668,477 131,024 699,108 (53,782) 3,443,047 409,252 454,866 409,898 71,963 424,041 (53,782) 1,716,238
	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

MAINFREIGHT LIMITED Notes to the Financial Statements For the Full Year ended 31 March 2023

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5 Segmental Reporting - continued

Revenue Local Currency Year Ended March 2023 Year Ended March 2022 Growth PBT Local Currency Year Ended March 2023 Year Ended March 2022 Growth PBT to Revenue Margin- ROR Year Ended March 2023 Year Ended March 2022	The New Zealand Australia Americas Asia Europe Total
	$NZ000 $AU000 $US000 $US000 €EU000 $NZ000
	1,284,860 1,417,285 959,917 152,784 630,658 5,675,709 1,130,199 1,175,041 1,089,422 231,008 567,906 5,218,259 13.7% 20.6% (11.9%) (33.9%) 11.0% 8.8% Excluding FX Impact 4.2% 169,421 136,796 89,248 29,101 46,860 587,398 136,479 107,497 100,831 28,852 31,664 489,381 24.1% 27.3% (11.5%) 0.9% 48.0% 20.0% Excluding FX Impact 14.9% 13.2% 9.7% 9.3% 19.0% 7.4% 10.3% 12.1% 9.1% 9.3% 12.5% 5.6% 9.4%

Division Segments

The following table represents revenue and PBT in respect of the three main types of services for the years ended 31 March 2023 and 31 March 2022.

Year Ended 31 March 2023 Revenue PBT Year Ended 31 March 2022 Revenue PBT	Domestic Transport Warehousing Air & Ocean $NZ000 $NZ000 $NZ000 2,242,769 750,179 2,682,761 228,498 65,374 293,526 1,914,903 583,821 2,719,535 183,861 55,262 250,258	Total
		$NZ000
		5,675,709 587,398 5,218,259 489,381

Reconciliation between non-GAAP and the Income Statement Profit before Taxation for the Year Finance Costs Relating to Lease Liabilities Other Net Finance Costs EBITA Depreciation of Right of Use Assets Other Depreciation and Amortisation Expenses EBITDA (Adjusted)	31 March 2023 31 March 2022 unaudited audited
	$NZ000 $NZ000
	587,398 489,381
	17,326 15,731 7,315 4,971
	612,039 510,083
	155,359 127,289 83,630 73,324
	851,028 710,696

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.