Mainfreight Limited — Interim / Quarterly Report 2022

Nov 9, 2022

MAINFREIGHT LIMITED Preliminary Half Year Announcement For the Six Months ended 30 September 2022

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Preliminary half year report on consolidated results (including the results for the previous corresponding half 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 Six Months ended 30 September 2022

Notes	Six Months Ended Six Months Ended Year ended 30 Sept 2022 30 Sept 2021 31 March 2022 unaudited 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 Income Tax Expense Net Profit for the Period Earnings per share Basic and diluted earnings (cents per share)	$NZ000 $NZ000 $NZ000
	3,003,333 2,274,386 5,218,259
	(1,895,050) (1,450,091) (3,356,790) (520,152) (422,422) (886,614) (165,632) (115,962) (263,818)
	422,499 285,911 711,037
	(70,562) (59,160) (127,289) (8,010) (7,572) (15,731) (38,968) (34,862) (73,324) (3,247) (2,331) (5,312)
	301,712 181,986 489,381 (84,694) (51,176) (133,984)
	217,018 130,810 355,397
	215.51 129.90 352.93
For the Six Months ended 30 September 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	217,018 130,810 355,397 98,163 (4,314) (7,412) 1,149 162 (1,047)
	99,312 (4,152) (8,459)
	3,971 (625) 82,659 - - (15,016) (20) (5) 455 3 1 (114)
	3,954 (629) 67,984
	103,266 (4,781) 59,525
	320,284 126,029 414,922

The accompanying notes form part of these interim financial statements

MAINFREIGHT LIMITED Balance Sheet As at 30 September 2022

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	30 Sept 2022 30 Sept 2021 31 Mar 2022 unaudited unaudited audited	30 Sept 2022 30 Sept 2021 31 Mar 2022 unaudited 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	$NZ000 $NZ000 $NZ000 Current Liabilities 260,857 121,122 202,258 Bank 846,560 600,974 805,568 Trade Creditors & Accruals - - 275 Employee Entitlements 92,273 47,164 48,563 Provision for Taxation Lease Liability for Right of Use Assets Asset Finance Loans 1,199,690 769,260 1,056,664 Non-current Liabilities 1,085,749 792,887 925,190 Bank Term Loan 200,749 169,005 185,020 Employee Entitlements 689,988 573,952 585,970 Deferred Tax Liability Lease Liability for Right of Use Assets Asset Finance Loans 1,976,486 1,535,844 1,696,180 Total Liabilities Shareholders' Equity 52,465 58,398 52,081 Share Capital 225,540 209,446 204,498 Retained Earnings 1,419 1,440 1,288 Revaluation Reserve 19,722 18,751 17,240 Foreign Currency Translation Reserve Defined Benefit Pension Reserve 299,146 288,035 275,107 Total Equity 3,475,322 2,593,139 3,027,951 Total Liabilities & Equity	$NZ000 $NZ000 $NZ000
		- - - 628,783 446,314 562,004 139,594 93,361 152,305 21,512 15,815 56,609 138,024 126,068 121,136 9,241 8,976 8,841
		937,154 690,534 900,895 256,678 205,937 176,005 2,985 3,567 2,519 11,389 7,204 10,684 583,970 468,212 490,099 21,201 21,924 18,480
		876,223 706,844 697,787 1,813,377 1,397,378 1,598,682 85,821 85,821 85,821 1,281,491 982,879 1,152,081 212,708 140,469 208,737 82,193 (12,812) (17,119) (268) (596) (251)
		1,661,945 1,195,761 1,429,269
		3,475,322 2,593,139 3,027,951

The accompanying notes form part of these interim financial statements

MAINFREIGHT LIMITED Statement of Changes in Equity For the Six Months Ended 30 September 2022
	Foreign Defined Asset Currency Benefit Ordinary Revaluation Translation Pension Retained Total Shares Reserve Reserve Reserve Earnings Equity
Six Months to 30 September 2022 (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 30 September 2022 Six Months to 30 September 2021 (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 Dividends Dividends Paid Foreign Investor Tax Credit Balance at 30 September 2021 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 - - - - 217,018 217,018 - 3,971 99,312 (17) - 103,266
	- 3,971 99,312 (17) 217,018 320,284 - - - - (3,523) (3,523) - - - - (87,608) (87,608) - - - - 3,523 3,523
	85,821 212,708 82,193 (268) 1,281,491 1,661,945
	85,821 141,094 (8,660) (592) 897,383 1,115,046 - - - - 130,810 130,810 - (625) (4,152) (4) - (4,781)
	- (625) (4,152) (4) 130,810 126,029 - - - - (1,513) (1,513) - - - - (45,314) (45,314) - - - - 1,513 1,513
	85,821 140,469 (12,812) (596) 982,879 1,195,761
	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 interim financial statements

MAINFREIGHT LIMITED Cash Flow Statement For the Six Months ended 30 September 2022

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	Six Months Ended Six Months Ended Year ended 30 Sept 2022 30 Sept 2021 31 March 2022 unaudited 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 Repayments by Team Members 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	$NZ000 $NZ000 $NZ000
	3,564,724 2,609,928 4,930,932 - - 341 (3,140,401) (2,356,438) (4,289,186) (8,010) (7,572) (15,731) (3,247) (2,331) (5,312) (121,630) (65,174) (117,247)
	291,436 178,413 503,797
	1,625 1,411 3,724 2 - 66 3 3 - (171,671) (79,600) (175,908) (8,011) (13,798) (16,962) - - -
	(178,052) (91,984) (189,080) 143,671 20,000 74,792 (87,608) (45,314) (100,699) (73,524) (23,310) (104,724) (67,106) (56,232) (119,336)
	(84,567) (104,856) (249,967) 28,817 (18,427) 64,750 29,782 (6) (2,047) 202,258 139,555 139,555
	260,857 121,122 202,258
	260,857 121,122 202,258 - - -
	260,857 121,122 202,258

The accompanying notes form part of these interim financial statements

MAINFREIGHT LIMITED Notes to the Financial Statements For the Six Months ended 30 September 2022

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1 Corporate Information

The preliminary half year report announcement of Mainfreight Limited ("the parent") and its subsidiaries ("the Group") for the six months ended 30 September 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 2022 financial statements.

3 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 (cps) Dividends Paid and Proposed Recognised Amounts Declared and Paid during the Period to Parent Shareholders Final Fully Imputed Dividend for 2021: 45 cents (2021: 45 cents) Unrecognised Amounts Interim Fully Imputed Dividend for 2023: 85.0 cents (2022: 55.0 cents)	Parent Six Months Ended Six Months Ended Year ended 30 Sept 2022 30 Sept 2021 31 March 2022 unaudited unaudited audited
	Shares Shares Shares
	100,698,548 100,698,548 100,698,548 100,698,548 100,698,548 100,698,548
	$NZ000 $NZ000 $NZ000
	1,362,799 907,726 1,154,162 1,353.35 901.43 1,146.16 87,608 45,314 85,594 55,384

After the balance date, the above unrecognised dividends were approved by Directors' resolution dated 9 November 2022 These amounts have not been recognised as a liability as at 30 September 2022 but will be brought to account in the full year to 31 March 2023.

MAINFREIGHT LIMITED Notes to the Financial Statements For the Six Months Ended 30 September 2022

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4 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 six months ended 30 September 2022 and 30 September 2021.

Six Months to 30 September 2022 (unaudited) Operating Revenue - Sales to Customers outside the Group - Intersegment Sales Total Revenue PBT & Abnormal Items Net Interest Expense Depreciation & Amortisation Capital Expenditure Trade Receivables Non-current Assets Total Assets Total Liabilities Six Months to 30 September 2021 (unaudited) Operating Revenue - Sales to Customers outside the Group - Intersegment Sales Total Revenue PBT & Abnormal Items 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
	$NZ000 $NZ000 $NZ000 $NZ000 $NZ000 $NZ000 $NZ000
	644,599 771,856 891,421 159,147 536,310 - 3,003,333 10,745 33,905 68,097 117,833 44,366 (274,946) -
	655,344 805,761 959,518 276,980 580,676 (274,946) 3,003,333
	74,457 69,968 93,586 25,200 38,501 - 301,712 2,395 4,493 2,842 43 1,484 - 11,257 30,167 26,864 21,995 2,293 28,211 - 109,530
	50,653 97,749 18,104 631 10,918 - 178,055 156,056 219,082 297,944 65,784 203,009 (95,315) 846,560 788,268 661,574 388,159 20,669 416,962 - 2,275,632 953,982 932,103 808,950 190,523 685,079 (95,315) 3,475,322 402,931 477,734 485,433 116,328 426,266 (95,315) 1,813,377
	498,446 557,604 623,796 155,954 438,586 - 2,274,386 3,819 15,684 30,350 175,574 29,632 (255,059) -
	502,265 573,288 654,146 331,528 468,218 (255,059) 2,274,386
	48,070 47,279 49,218 16,253 21,166 - 181,986 2,553 3,736 2,178 68 1,368 - 9,903 26,231 23,661 14,780 1,459 27,891 - 94,022
	43,907 19,826 11,554 764 15,936 - 91,987 118,497 140,979 198,856 130,973 123,728 (112,059) 600,974 710,955 474,775 236,200 18,106 383,843 - 1,823,879 807,806 635,269 473,339 199,436 589,348 (112,059) 2,593,139 338,545 361,164 310,092 136,982 362,654 (112,059) 1,397,378

MAINFREIGHT LIMITED Notes to the Financial Statements For the Six Months Ended 30 September 2022

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4 Segmental Reporting - continued

Revenue Local Currency Six Months to 30 September 2022 Six Months to 30 September 2021 Growth PBT Local Currency Six Months to 30 September 2022 Six Months to 30 September 2021 Growth PBT to Revenue Margin Six Months to 30 September 2022 Six Months to 30 September 2021	The New Zealand Australia Americas Asia Europe Total
	$NZ000 $AU000 $US000 $US000 €EU000 $NZ000
	644,599 697,372 562,843 100,485 326,988 3,003,333 498,446 525,040 441,398 110,353 260,432 2,274,386 29.3% 32.8% 27.5% -8.9% 25.6% 32.1% Excluding FX Impact 26.3% 74,457 63,216 59,090 15,911 23,474 301,712 48,070 44,518 34,827 11,501 12,568 181,986 54.9% 42.0% 69.7% 38.3% 86.8% 65.8% Excluding FX Impact 57.8% 11.6% 9.1% 10.5% 15.8% 7.2% 10.0% 9.6% 8.5% 7.9% 10.4% 4.8% 8.0%

Division Segments

The following table represents revenue and PBT in respect of the three main types of services for the six months ended 30 September 2022 and 30 September 2021.

Six Months to 30 September 2022 (unaudited) Revenue PBT & Abnormal Items Six Months to 30 September 2021 (unaudited) Revenue PBT & Abnormal Items Reconciliation between non-GAAP and the Income Statement Profit before Taxation for the Year Finance Costs Relating to Lease Liabilities Other Finance Costs EBITA Depreciation of Right of Use Assets Other Depreciation and Amortisation Expenses EBITDA (Adjusted)	Domestic Transport Warehousing Air & Ocean $NZ000 $NZ000 $NZ000 1,113,253 355,299 1,534,781 109,938 28,940 162,834 894,315 264,615 1,115,456 72,913 22,188 86,885	Domestic Transport Warehousing Air & Ocean $NZ000 $NZ000 $NZ000 1,113,253 355,299 1,534,781 109,938 28,940 162,834 894,315 264,615 1,115,456 72,913 22,188 86,885	Total
			$NZ000
	1,113,253 355,299 1,534,781 109,938 28,940 162,834 894,315 264,615 1,115,456 72,913 22,188 86,885		3,003,333 301,712 2,274,386 181,986
		30 Sep 2022 30 Sep 2021 unaudited unaudited
		$NZ000 $NZ000
		301,712 181,986
		8,010 7,572 3,247 2,331
		312,969 191,889
		70,562 59,160 38,968 34,862
		422,499 285,911

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.