Mainfreight Limited — Investor Presentation 2018

Oct 4, 2018

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MAINFREIGHT LIMITED NZX RETAIL INVESTOR EVENT 4 OCTOBER 2018

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Who & What is Mainfreight?
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 Mainfreight is a global supply chain logistics provider

• 3 Products/Divisions

 Air & Ocean,

 Warehousing, and Supply Chain Management

 Domestic Transportation

• 252 branch locations in 22 countries  Our Network

• 7,635 team members  Our People

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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, Italy, Romania,
252 22 … Poland, Ukraine, Russia, United Kingdom … (and almost Malaysia and Japan = 24)
THE AMERICAS
ASIA
823 TEAM MEMBERS
362 TEAM MEMBERS
EBITDA: US$19.2M
EBITDA: US$4.9M REVENUE: US$436.7M
REVENUE: US$83.9M 63 BRANCHES
19 BRANCHES
EUROPE NEW ZEALAND
AUSTRALIA
2,399 TEAM MEMBERS 1,761 TEAM MEMBERS 2,309 TEAM MEMBERS
EBITDA: NZ$98.6M
EBITDA: AU$49.9M
EBITDA: EU€17.7M REVENUE: NZ$666.2M
REVENUE: AU$623.8M
REVENUE: EU€335.8M
78 BRANCHES
53 BRANCHES
39 BRANCHES
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Mainfreight Strategy
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• Intensification of our network

• Globally, regionally and within cities

• Being closer to our customers achieves efficiencies

• Delivery of high-quality freight services

• Freight – not courier or parcels

• Adding value through our technology

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• Supply chain visibility

• Being easy to do business with

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Key Differentiators
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• Our people – via our culture

• Highly-engaged people providing high-quality services

• Decision making as close to the customer as possible

• Decentralised management structure and responsibility

  • 252 profit centres

  • Profits shared

  • Lack of hierarchical structures

  • Information sharing

• Careers not jobs

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Our Customers
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• In excess of 40,000

• Range in scale: smaller to large multinationals

• Typically trading in food, beverage, retail and consumer DIY markets

• We prefer to support customers trading across all three divisions, in non-commoditised products

• High service criteria

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Mainfreight Governance
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• Mainfreight’s Board comprises 7 Directors: Founder & Chairman, Group Managing Director, and 5 non-executive Directors – all of whom are independent

• Board meetings are held in Mainfreight operations in New Zealand and overseas; in 2018 meetings held in Auckland, Melbourne, Sydney, Shanghai, ‘s-Heerenberg (NL), Los Angeles; Directors will visit 20+ operations during the year

• Share ownership – 20.42% held by Directors

• Dividend policy:

• 40-50% of net profit distributed to shareholders

• Balance supports capital investment for ongoing business growth

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Assets
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• Total Assets: $1.4 billion

• Land and buildings: $483 million

• Key differentiator from competitors

• Efficient, high quality, environmentally aware

• Not a large owner of trucking equipment (Europe only)

• Technology

• Software is our own (with the exception of Air & Ocean division)

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• Effective / Visibility

• Ongoing investment

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	Capital Expenditure Last Year F18 Current Year F19 Land & Buildings $20.1 million Land & Buildings – NZ $35 million Technology $17.7 million Land & Buildings – AU $57 million Other $26.9 million Land & Buildings – EU $13 million Other – Technology,etc $45 million Total $64.7 million Total $150 million

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Full Year Result to 31 March 2018
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GROUP OPERATING REVENUE

GROUP OPERATING GROUP GROUP NET PROFIT REVENUE EBITDA BEFORE ABNORMALS $2.62b $215.4m $112.2m

 12.2%  10.6% EXCL FX IMPACT

 9.0%  7.9% EXCL FX IMPACT

 8.8%  7.7% EXCL FX IMPACT

TOTAL DIVIDEND

TOTAL DIVIDEND DISCRETIONARY BONUS SHARED WITH GLOBAL TEAM 45.0¢ $20.7m  9.8%  7.4%

Note: As advised at July AGM, trading continues to be positive; F19 half year results to be released to the market on 14 November 2018

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To Close
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• We continue to be confident and positive about the current business environment, but are more global than New Zealand-centric

• Our spread of services and geographic regions smoothes out region-specific economic fluctuations

• Our ongoing capital investment will enhance our competitive advantage, improve services to our customers, and prepare us for continued growth

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PAINTING THE WORLD BLUE, ONE POT AT A TIME.

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