Mainfreight Limited — Investor Presentation 2018

Jun 20, 2018

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Mainfreight: INVESTOR DAY 20 June 2018

Agenda
10.15am	Welcome	Don Braid
10.20am	Europe	Ben Fitts
10.30am	New Zealand	Craig Evans
10.40am	Asia	Cary Chung
10.50am	Americas	John Hepworth
11.00am	Australia	Rodd Morgan
11.10am	Technology	Kevin Drinkwater
11.20am	People	Martin Devereux
11.30am	Capital Expenditure	Tim Williams
11.40pm	Summary and Q&A	Don Braid
12.00pm	Depart for Bus Tour	Lunch on bus

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St. Petersburg
Europe
Ben Fitts
Moscow
Amsterdam Poznań
Rotterdam ‘s-Heerenberg Warsaw
‘Zaltbommel
Oostende
London Antwerpen Pruszków
Ghent
Brussels Born Kiev
Katowice
Genk
Frankfurt
Le Havre
Paris
Cluj-Napoca
Milan
Lyon
Ploiesti
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Europe: Overview – Structure	Europe: Overview – Structure
	**BRANCHES **	TEAM MEMBERS
Forwarding & Transport	17	1,130
General Manager: Frans Zuidgeest
National Sales Manager: By Country
Logistics	6	965
General Manager: Liane Philipsen
National Sales Manager: Hubert Kamphuis
Air & Ocean	11	136
General Manager: Jason Braid
National Sales Manager: Jake Pascoe
Total:	34	2,231

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Europe: Overview – Core Business / Result Overview
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• Forwarding & Transport

• Groupage, LTL, FTL

• Serviced through own and partnered network

• Warehousing:

• The Netherlands, Belgium, Romania

• Multi-customer sites, large amount of customer and activity variety

• Air & Ocean:

• Sea and air freight consolidation

• FCL import and export

• Customs brokerage

• Across 10 countries

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• Supply chain focused

• Sales growth of 15.0% (growth across each division)

• EBITDA growth of 3.1%

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Europe: Development Focus – Short to Medium-Term
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• Network development and intensification across each division

• Branches of high quality closer to customers

• Network capable of producing consistently strong results

• Improved quality and handling efficiency

• Focus on network cargo, consolidated freight

• Balanced profitability

• Accelerated renewal of trucks and trailers to further establish Mainfreight branding on the road

• Recruitment and development of an exceptional Team through the Future Leaders program

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• Consolidation of recent expansion

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Europe: Development Focus – Long-Term
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• Further expansion opportunities in Eastern Europe once Benelux profitability is acceptable

• Own operations where location or volumes deem this to be logical

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• Expansion of full supply chain offer in countries where we are present with only one or two divisions

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Europe: Strengths & Weaknesses
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• Strengths

• Internal promotion, starting on the dock

• Team that understand and care about the business and our customers

• Strong supply chain offer in NL, BE and RO benefits each division

• Weaknesses

• Profitability improving but still low, particularly in Belgium

• Scale in relation to market in some countries

• Reliance on European network partners

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Kaitaia

New Zealand Craig Evans

Auckland

Hamilton

Whangarei

Thames

Mt Maunganui

Rotorua Taupo Gisborne

New Plymouth

Napier

Whanganui

Palmerston North

Paraparaumu

Masterton Wellington Nelson Blenheim

Westport

Greymouth

Christchurch

Ashburton

Timaru Oamaru

Cromwell

Dunedin

Gore Balclutha Invercargill

New Zealand: Overview	– Structure
	BRANCHES	TEAM MEMBERS
Transport	38	1,808
General Manager: Carl George
Logistics	13	254
General Manager: Mitch Gregor
Air & Ocean	16	210
General Manager: Nic Kay
New Zealand Sales
National Sales Manager: Rob Croft
Total:	66	2,272

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New Zealand: Overview – Core Business / Result Overview
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• Highly specialised warehousing and distribution centres

• DIY

• FMCG

• Dangerous goods

• Inventory of all kinds – from open carton unit picking to full cross-docking activities

• Multiple national freight networks utilising road, rail and sea

• General freight – less than container loads (LCL)

• Specialist in dangerous goods distribution

• Specialist business-to-business and business-to-home delivery

• Full truck load division (FTL)

• Air & Ocean: Imports / Exports / Customs

• Perishables

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• International LCL & FCL

• Wholesale forwarding (CaroTrans)

• Container unpack stations

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New Zealand: Development Focus – Short to Medium-Term
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• Strengthen strategic alliances

• Courier

• Continue to develop our bulk agricultural / commodity sector business

• Innovative equipment

• Specific business focus

• Continue to intensify the network with Transport and Air & Ocean operations

• Influence freight decisions at both origin and consignee level

• Expansion of our specialist business-to-home network

• Whakatane and Levin identified as immediate regional opportunities

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• Commission stand-alone Logistics operations in Wellington, Tauranga and Hamilton

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New Zealand: Development Focus – Long-Term
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• Logistics - 2022

• Multiple locations of high density warehousing; including ambient and chilled

• Inbound and outbound fed by Mainfreight

• Transport - 2022

• Service every town and community – daily in-house

• 4[+] sub or joint branches converted into stand-alone branches

• 40[+] stand alone branch network

• Multiple linehaul capability – road / rail / sea

• Air & Ocean - 2022

• Regional expansion of branch network alongside Transport

• Strong focus on developing export / import freight from within Mainfreight’s global network

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• Ensuring all imports are serviced via Mainfreight’s Logistics and Transport network

• Increase temperature control assets to expand Perishables

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New Zealand: Strengths & Weaknesses
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• Strengths

• Comprehensive national network and service capability

• Total supply chain offering

  • Supply chain engineering

  • High degree of IT competency and investment

  • Global reach

• Continued long-term growth opportunities

  • Diversification of Logistics capability

  • Ability and reach to positively react to unexpected events e.g. Kaikoura

• Weaknesses

• Industry leader responsibilities

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• Developing talent quickly enough to manage growth

• Sourcing professional drivers

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Map Page (I can insert the relevant one into your preso – Nik)
Beijing
Tianjin
ASIA
Qingdao
Cary Chung Chengdu
Shanghai
Ningbo
Xiamen
Taipei
Shenzhen
Guangzhou Kaohsiung
Hong Kong
Thailand
Vietnam
Singapore
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Asia: Overview – Structure
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BRANCHES TEAM MEMBERS

 Air & Ocean 14 263

Hong Kong Taiwan Singapore Thailand Vietnam China

 Logistics

3 12

Hong Kong Shanghai Singapore

 Carotrans

 Carotrans 5 55  - Regional Support Team 24

General Manager: Cary Chung Regional Sales Manager: Billy Zhang Total:

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22

354

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Asia: Overview – Core Business / Result Overview
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• Airfreight

• International and Intra-Asia access

• Direct BSA with direct & deferred services

• Consolidation services

• Seafreight

• Daily full container load & less than container load services

• Buyer’s & sellers consolidation

• Project shipments

• Customs Clearances & Inspections Expertise

• Logistics Services

• Contract Logistics (4PL)

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• Warehousing, Order Management, Order Fulfillment, Value-Added Services, Contract Logistics

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Asia: Development Focus – Short to Medium-Term
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• Develop our sales force across ALL Asia branches including Regional Sales representation in China, Taiwan, Vietnam and Singapore

• Greater focus on Imports where most decision making is here in Asia

• Intercompany focus is our first priority; Mainfreight to Mainfreight network

• Target verticals where there is high demand in Asia, eg Food & Beverage, Healthcare & Hi-Tech

• Consolidation services for Air Console and Ocean groupage within Asia

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• Own operations in Malaysia & Japan

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Asia: Development Focus – Long-Term
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• Own operations in all major Asian Countries

• Air & Ocean focus

• To have at least 40% of Asian team to be Commercially focused

• To have all key gateway branches to be US1M+

• To develop our value-added service to complement our Air & Ocean customers

• Contract Logistics to become a stand-alone P&L

• To develop our Asia Future Leader’s program

• Continue to develop & promote our Mainfreight culture across Asia

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Asia: Strengths & Weaknesses
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• We have strong team in Asia, average team members are with us 2+ years

• Strong operations & customer services

• Our brand awareness has become stronger and able to compete against international freight forwarders in this part of the world

• Lack of commerciality from our Branch Managers

• Not enough commercial team on the ground for day-to-day freight

• Not enough depth in second tier branches

• Not enough internal promotion

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Seattle
Toronto
AMERICAS
Portland Minneapolis
Albany
Boston
Milwaukee
Detroit
John Hepworth Hartford
Newark
Cleveland
Chicago Philadelphia
Columbus
San Francisco Reno Indianapolis Baltimore
Norfolk
Charlotte
Los Angeles
San Diego Charleston
Phoenix
Atlanta
Dallas
Austin
Houston
Orlando
San Antonio
Miami
Laredo
McAllen
Queretaro
Santiago, Chile
Mexico City
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Americas: Overview - Structure	Americas: Overview - Structure
	BRANCHES TEAM MEMBERS
Transport	22	285
General Manager: Shawn Roach
Logistics	5	81
General Manager: René van Houtum
National Sales Manager: Dallas Wymes
Air & Ocean	15	193
General Manager: Nathan Thomas
National Sales Manager: Nick Vernald
CaroTrans	14	232
General Manager: Chris Wilson
Franchises	9	-
Austin, Baltimore, Boston, Hartford, Milwaukee,
Orlando, Reno, San Antonio, San Francisco
Total:	67	791

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Americas: Overview – Core Business
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• Global logistics provider: Transport, Logistics (warehousing), Air & Ocean

• CaroTrans: Wholesale NVOCC – sea freight, import and export of LCL and FCL

• Focus on developing everyday freight; Food grade, FMCG, DIY goods

• Transport provider across North America – defined day services

• Developing our network within the Americas

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Americas: Development Focus – Short to Medium-Term
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• Logistics

• 4 stand-alone sites that are 72% utilized; total footprint 59,500 m[2]

• Expansion into FMCG/beverage markets

• Transport

• New cross-docks for Newark, Toronto and San Diego

• Continued expansion of line-haul: 40 locations with 129 line-hauls with 174 legs – top six cities a priority

• Owner drivers: 136. 35% of our business travels on our line haul network

• Air & Ocean

• Developing consolidations for dedicated Mainfreight trade lanes

• TSA-approved status allows loading of our own air units in Dallas, Chicago and Los Angeles

• CaroTrans

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• Management changes / sales focus

• Adopting Mainfreight decentralization and culture

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Americas: Development Focus – Long-Term
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• Logistics

• Will need additional site in Los Angeles and New Jersey

• Transport

• Continued growth in our 6 major markets will support network freight growth

• Expand line-hauls and local PUD solutions across the country

• Air & Ocean

• Strong branch network within USA to complement and add growth to global network

• Customer-focused technology – visibility/order management system

• CaroTrans

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• Focus on capturing more significant share of the USA wholesale market

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Americas: Weaknesses and Strengths
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Weaknesses

• Sales growth is key; momentum is building

• Culture still needs to evolve

Strengths

• Future Leader program now developing team members into sales and leadership roles

• Logistics warehousing is a cut above opposition

• Transport – quality is a key market differentiator

• Air Ocean – Mainfreight-to-Mainfreight lanes key focus

• We can compete against the big players and often are more attractive to use due to customer service ethic and our operational flexibility

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Australia
Rodd Morgan
Townsville
Sunshine Coast
Brisbane
Toowoomba
Gold Coast
Perth
Newcastle
Bunbury Adelaide Sydney
Canberra
Albury Wollongong
Bendigo
Ballarat
Melbourne
Geelong
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	Australia: Overview – Structure	Australia: Overview – Structure
		BRANCHES	TEAM MEMBERS
	Air & Ocean	14	344
	General Manager: Grant Draper
	National Sales Manager: Brendan Ryan
	Owens Transport	4	164
	National Manager: Mike Reid
	National Sales Manager: James Bennett
	Logistics	10	309
	General Manager: Simon Hart
	National Sales Manager: Aladin Basic
	Transport	27	920
	General Manager: Bryan Curtis
	National Sales Manager: Steve Turner
	Australian Sales
	AU Group Sales Manager: Dave Scott
Total:		55	1,784*
*Includes Group Team of 47

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Australia: Overview – Core Business / Result Overview
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• Air & Ocean

Air, Sea, Import, Export - LCL & FCL, Customs, Perishables Wholesale Forwarding (CTO)

• Logistics (Warehousing)

Inventory Management, Complex High Activity Pick/Pack, Food Grade, DIY, Hazardous, General

• Transport

Day Definite, Australia-wide LCL, Metro, Full Load, Hazardous (Chemcouriers), Wharf Cartage (Owens), Road, Rail, Coastal Shipping

• Integration

Global Visibility, Project Logistics, Supply Chain Analysis, EDI Business Solutions

Revenue $624M 16.6% Sales Growth in all divisions EBITDA $50M 18.0% Only A & O marginally behind

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Region: Development Focus – Short to Medium-Term
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• Air & Ocean

Focus on LCL. Grow margin. Develop deep Airfreight capability. Continue Perishable development & grow export volume beyond 24%

• Logistics

Consolidate/digest recent capacity expansion. Seek complex high value/ volume beverage & hazardous goods opportunities Evaluate technologies that can help with quality/productivity

• Transport

Maintain recent sales momentum. Drive margins & reduce overheads relative to Sales. Finalise new depot design to help move more freight with same building size & team numbers in same time frame. Continue Network growth. Develop Chemcouriers service (hazardous goods). Regain mojo in Sydney operations.

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Region: Development Focus – Long-Term
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• Maintain Sales growth rate

• Drive ROR beyond 8%

• More rear loading & freight on rail

• Further expansion of Australian network & quality to fit seamlessly with our other global operations & customer expectations.

• Build nationwide hazardous goods storage capability

• People – Natural behaviours, Recruitment. Refine & develop our Culture

• 75% of Team to have worked 2+ years in each division

• Further enhance our image & presentation

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Region: Strengths & Weaknesses
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• Perishables & Sydney Transport have lacked profitability recently

• Margin pressure in Air & Ocean

• Transport quality needs to continue to improve along with overhead management

• Isn’t quite the scale yet for all hazardous deliveries to be done within Chemcouriers network & still need bigger hazardous Logistics capability

• Full supply chain logistics capability – we own branches in most major regions

• Flat management structure & “branch manager is king” philosophy – aids long-term quality & profitability

• Extensive & growing ground-based network with good & improving facilities

• Now well-established, respected & consolidated reputation as a high quality provider

• Team full of youth, ambition & intelligence – Our Future Leaders

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Technology Kevin Drinkwater

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Global Technology : Overview
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• Annual spend NZ$52.2m

• Total capital expenditure NZ$21.6m

• Includes NZ$17.3m on software

• Software developed in NZ is NZ$12.8m

• 119 team members globally

• 3 critical operational system types

• Transport

• Logistics: Warehouse Management System (WMS)

• Air & Ocean

• Critical support system types

• Website

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• Customer Portal – Mainchain

• CRM

• Many other supporting systems including email

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Global Technology: Critical System Overview System Type Region MF Owned Hosted Transport Mainstreet AU/NZ/US Yes/Yes NZ Mainmove/TREX/NaviTrans EU No/Yes/No EU Warehouse MIMS AU/Asia/NZ/US Yes NZ MarcCS EU No EU Air and Ocean Cargowise Global No US - Cloud CaroTrack CaroTrans USA/Chile Yes US Accounting OnAccount AU/NZ/USA No NZ Navision EU No EU Cargowise Global Air & Ocean No USA Support Mainfreight.com Global Yes NZ Mainchain Mainsale(CRM) Global Global Yes Yes NZ/EU/US NZ

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Global Technology : Core Systems
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• Customer Facing

 Security and Processing

 Operational

 Support

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Key Initiatives – Short to Medium Term
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Risk Management

• Asset Protection

• Disaster Recovery Initiatives

• Emerging Privacy Regulations

Software Initiatives

• Transport Management Systems

• Mainstreet Implementation Complete NZ 2017, AU 2018

  • Stable Platform to build from

• Mainmove Implementation EU – completion end CY 2019

• Enhanced Customer Products

• Mainchain Ultra /Mainchain OMS

• Predictive Analytics

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• Cloud

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Global Technology: Key Initiatives – Long-Term
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• Digitisation of Freight

• Air and Ocean

• Blockchain

• Predictive Modeling

• Mobility / IOT

• Flexibility

• Cloud

• Reporting

• Websites

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People Martin Devereux

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Training & Development: Overview – Structure
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TEAM MEMBERS

		TEAM ME
	New Zealand	11
	Manager: Rachel Hustler
	Locations: Auckland & Christchurch
	Australia	14
	Manager: Shona Taylor
	Locations: Melbourne, Sydney, Adelaide
	Europe	5
	Manager: Courtney Bould
	Locations: The Netherlands & Belgium
	The Americas	5
	Manager: Raewyn Glamuzina
	Locations: Los Angeles & Chicago
	Asia	2
	Manager: Wendy Niu
	Locations: Guangzhou, Shanghai & Hong Kong
Total:		37

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People & Development: Overview – Our role
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 Guardianship of our culture around the world

 Attract, develop and retain talent

• Develop global leaders

• Champion and support workplace safety

• Train our team to be excellent in all they do

 Assess operational quality and cultural benchmarks

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People Development Focus – Short to Medium-Term
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• Further development of future leader program across Asia

• Gender diversity and seeing more women in roles of significance

• Development of both future leaders and operational role models

• Driver academies

• Being Easy to Deal With

• Broadening eLearning capabilities

• Stronger recruitment channels for youth not choosing tertiary educations

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People Development Focus – Long Term
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• Focus on competence development not role development

• Harnessing an ageing workforce

• Creation of career pathways for youth

• Facilitating global career paths

• Focus on cultural awareness and diversity i.e. better understanding our brothers and sisters abroad

• Driving learning and development as close to the work floor as possible and as real as possible eg. VR and Augmented Reality

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Region: Strengths & Weaknesses
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• Weakness

• Alignment of our culture worldwide

• Strength

• Our people investment

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Capital Expenditure Tim Williams

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Group Property Strategies
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 Invest in high quality facilities leased or owned – network intensification

• Understand size and location requirements before owning

• Endeavour to land bank for growth – difficulties in relocating domestic terminals

• Look to own specialised buildings, primarily in domestic transport

• Build warehouses adjacent to freight terminals

• Air & Ocean offices and stand-alone warehouses – largely generic and can be readily leased

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Group Property Strategies – continued
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 NZ and Australian market well understood and priority for ownership

• Europe and USA both require more understanding, growth and acceptable business improvement

• Asia is Air & Ocean and will remain leasing

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	Capital Management Capital Expenditure Expectations FY19 NZ$ million NZ$ million Property Auckland Whangarei Blenheim Mount Maunganui Other sundry Land Buildings Land/Buildings Buildings Buildings 17.2 5.5 5.0 3.0 4.5 Total NZ 35.2 Melbourne (x2) Adelaide Melbourne Other sundry Land Land Buildings Buildings 40.1 8.7 4.4 4.2 Total AU57.4 Netherlands (x2) Belgium Alterations Alterations 10.2 2.5 Total EU 12.7 Total Property 105.3 Other 45.0 Total Capital 150.3	Capital Management Capital Expenditure Expectations FY19 NZ$ million NZ$ million Property Auckland Whangarei Blenheim Mount Maunganui Other sundry Land Buildings Land/Buildings Buildings Buildings 17.2 5.5 5.0 3.0 4.5 Total NZ 35.2 Melbourne (x2) Adelaide Melbourne Other sundry Land Land Buildings Buildings 40.1 8.7 4.4 4.2 Total AU57.4 Netherlands (x2) Belgium Alterations Alterations 10.2 2.5 Total EU 12.7 Total Property 105.3 Other 45.0 Total Capital 150.3	Capital Management Capital Expenditure Expectations FY19 NZ$ million NZ$ million Property Auckland Whangarei Blenheim Mount Maunganui Other sundry Land Buildings Land/Buildings Buildings Buildings 17.2 5.5 5.0 3.0 4.5 Total NZ 35.2 Melbourne (x2) Adelaide Melbourne Other sundry Land Land Buildings Buildings 40.1 8.7 4.4 4.2 Total AU57.4 Netherlands (x2) Belgium Alterations Alterations 10.2 2.5 Total EU 12.7 Total Property 105.3 Other 45.0 Total Capital 150.3	Capital Management Capital Expenditure Expectations FY19 NZ$ million NZ$ million Property Auckland Whangarei Blenheim Mount Maunganui Other sundry Land Buildings Land/Buildings Buildings Buildings 17.2 5.5 5.0 3.0 4.5 Total NZ 35.2 Melbourne (x2) Adelaide Melbourne Other sundry Land Land Buildings Buildings 40.1 8.7 4.4 4.2 Total AU57.4 Netherlands (x2) Belgium Alterations Alterations 10.2 2.5 Total EU 12.7 Total Property 105.3 Other 45.0 Total Capital 150.3	Capital Management Capital Expenditure Expectations FY19 NZ$ million NZ$ million Property Auckland Whangarei Blenheim Mount Maunganui Other sundry Land Buildings Land/Buildings Buildings Buildings 17.2 5.5 5.0 3.0 4.5 Total NZ 35.2 Melbourne (x2) Adelaide Melbourne Other sundry Land Land Buildings Buildings 40.1 8.7 4.4 4.2 Total AU57.4 Netherlands (x2) Belgium Alterations Alterations 10.2 2.5 Total EU 12.7 Total Property 105.3 Other 45.0 Total Capital 150.3
	Melbourne (x2) Adelaide Melbourne Other sundry
	Netherlands (x2) Belgium
	Total Property				105.3
	Other				45.0
	Total Capital				150.3

New Zealand Capex – 2019 and 2020 New Zealand – NZ$000 Property Capex FY19 FY20 Auckland - Hobsonville Settlement of land purchase 17,233 Whangarei Building extension & Warehouse 5,500 Blenheim Purchase & Refurb inc Land 5,000 Mt Maunganui New Freight Terminal 3,000 27,000 Auckland - Airfreight New Chillers + Solar Project 2,440 Auckland - Titi Street Container Terminal Wharf 2,000 3,000 Nelson New Freight Terminal on leasehold land 10,000 Wellington - Old Toll Site# Purchase of building & Demolition 4,000 Rotorua% Land 3,000 35,173 47,000 Build not expected before 2021year. Build cost approx$25m # New Build not expected before 2021year. Build cost approx$15m %Build not expected before 2021year. Build cost approx$8m

Australia Capex – 2019 and 2020 Australia – AU$000 Property Capex FY19 FY20 Adelaide Land 7,967 Adelaide BuildingCost 19,000 DandenongSouth Land 29,540 DandenongSouth BuildingCost 20,000 Epping Land 7,385 Epping BuildingCost 4,000 11,000 Leased Facilities Logistics - 4 sites Racking& Fitout 2,300 Transport - 8 sites Fitout/Relocations 1,610 52,802 50,000 Balance of estimated build cost expected to be$35,000,000 in 2021

	Committed New Leases	Committed New Leases	Committed New Leases	Committed New Leases	Committed New Leases	Committed New Leases	Committed New Leases
		New Zealand	Australia		Europe		Americas
	New sites	4	7		4		3
	Locations	Auckland, Mt Maunganui Wellington Blenheim	Sydney Melbourne Brisbane Perth Newcastle Toowoomba Wollongong	Netherlands Born Zaltbommel ‘s-Heerenberg Belgium Ghent			Chicago Newark Toronto
	Total rent pa	NZ$1.45m	AU$9.67m			€4.28m	US$2.40m
	Additional rent in F19 (approx/ timing)	NZ$0.42m	AU$6.59m			€3.19m	US$1.91m

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IFRS 16 - Leases
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• Fundamentally changes the way in which lessors account for leases

• Commences 31 March 2020 financial statements

• Records a right of use asset and a lease liability for each lease

• Lease cost in P&L replaced by depreciation of right of use assets and interest on lease liabilities

• Cash flow changed to principal portion and interest portion

• Modelling done on 2018 figures indicates (NZ$):

• Total assets and liabilities to increase in the order of $400m

• EBITDA to increase in the order of $85m

• PAT will initially decrease by less than $5m

• Currently no restating of prior years will be permitted

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Mainfreight Summary Don Braid

OUR GROWING GLOBAL NETWORK

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BRANCHES: COUNTRIES: NZ, Australia, USA, Canada, Mexico, Chile, China, Hong Kong, Taiwan, Singapore,
Thailand, Vietnam, Netherlands, Belgium, France, Germany, Romania, Poland,
247 22 Ukraine, Russia, United Kingdom, Italy
Scandinavia
EUROPE
Japan
THE AMERICAS
ASIA
Middle
East
NEW ZEALAND
AUSTRALIA
Areas under consideration
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NZ, Australia, USA, Canada, Mexico, Chile, China, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Netherlands, Belgium, France, Germany, Romania, Poland, Ukraine, Russia, United Kingdom, Italy

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Network Intensification
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Globally

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Within Cities

Over Customers’ Supply Chains

Within Countries

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3 Core Products across Supply Chain
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 Air & Ocean 127 million kg pa (air) 312,000 containers pa (sea)

127 million kg pa (air)

• Warehousing 33 major sites

614,000m[2]

 Domestic Transport 68 million tonnes pa 77 million consignments pa

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• Supply Chain Management Combination of all

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Supported With:
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 High quality services – measured and shared

 Highly engaged people – our culture counts

 Technology – visibility / uncomplicated / internally controlled

 Decision-making close to the customer

 Decentralised structure – management and responsibility

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Customer Profile
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• Dry FMCG style

• Food, Beverage, Retail, Consumer DIY

• Some perishable (airfreight)

• Regional/country specific and multi-national

• More trading across borders

 Trading across our products – supply chain management

 Linked via intelligent and useful software

• Freight focused

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Infrastructure Investment
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• Land and buildings

 2018/19

$105 million expected capital spend

• Leased and owned – as appropriate

• Purpose built

• Image

• Quality

• Efficiencies

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Expectations / Outlook
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 Continue to apply our principles of managing for the long-term

 Ongoing capital investment and leasing: infrastructure to accelerate growth

 Promotion from within and adherence to our culture – all countries

 Long-term organic growth vs acquisition – preferred

 Customer relationships / quality of service – key differentiator

• Expect momentum to continue

 Short-term impacts on (unadjusted) EBITDA as new sites are delivered through 2019/2020

• Emphasis remains on strong revenue and EBITDA improvement

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