Mainfreight Full Year Results to 31 March 2019

PRELIMINARY FULL YEAR REPORT ANNOUNCEMENT
Mainfreight Limited
For Full Year Ended 31 March 2019
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,
which are in
the process of bein
g audited. The Listed Issuer has a formally constituted Audit Committee of the Board of Directors.
Income Statement for the Year Ended 31 March 2019
Note20192018
$000$000
Operating Revenue2,953,414 2,616,189
Interest Income673 511
Total Revenue2,954,087 2,616,700
Transport Costs(1,791,573) (1,605,459)
Labour Expenses Excluding Share Based Payment
s(612,641) (538,483)
Occupancy Expense
s(83,850) (73,192)
Depreciation and Amortisation Expenses(53,107) (47,788)
Other Expenses(208,301) (183,941)
Finance Costs(7,541) (7,567)
Profit Before Abnormal Items and Taxation for the Year197,074 160,270
Income Tax on Profit Before Abnormal Items(55,990) (48,266)
Net Profit Before Abnormal Items for the Year141,084 112,004
Abnormal Items4(4,965) (7,224)
Income Tax on Abnormal Items41,505 2,898
Abnormal Items After Taxation4(3,460) (4,326)
Profit Before Taxation for the Year192,109 153,046
Income Tax Expense(54,485) (45,368)
Net Profit for the Year137,624 107,678
Earnings per share for profit attributable to the ordinary equity holders of the company are:
CentsCents
Basic Earnings Per Share: Total Operations
136.67106.93
Diluted Earnings Per Share: Total Operations136.67106.93
Statement of Comprehensive Income for the Year Ended 31 March 2019
Net Profit for the Year137,624 107,678
Other Comprehensive Income
Other comprehensive income to be reclassified to profit or loss in subsequent periods
:
Exchange Differences on Translation of Foreign Operations1,144 (1,978)
Income Tax effect(1,006) 3,371
Net Other comprehensive income to be reclassified to profit (loss) in subsequent periods138 1,393
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Revaluation of Land including Foreign Exchange Movement
s43,506 638
Income Tax effect(4,106) -
Net Other comprehensive income not to be reclassified to profit (loss) in subsequent periods39,400 638
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Defined Benefit Pension Provision(93) 325
Income Tax effect23 (137)

Balance Sheet as at 31 March 2019
Note20192018
$000$000
Current Assets
Bank115,184 80,521
Trade Debtors389,376 361,737
Income Tax Receivable200 270
Properties Held for Sale- 7,852
Other Receivables55,304 60,811
560,064 511,191
Non-current Asset
s
Property547,641 483,488
Plant & Equipment118,988 98,822
Software51,052 49,374
Goodwill208,522 207,919
Brand Names3,807 7,863
Other Intangible Assets6,581 9,164
Deferred Tax Asset6,234 8,882
942,825 865,512
TOTAL ASSETS1,502,889 1,376,703
Current Liabilities
Bank4 36
Trade Creditors & Accruals314,925 298,916
Employee Entitlements62,832 53,373
Provision for Taxation18,868 12,323
Finance Lease Liabilit
y2,246 2,077
398,875 366,725
Non-current Liabilities
Bank Term Loan238,653 270,753
Employee Entitlements2,815 3,634
Deferred Tax Liabilit
y19,473 21,526
Finance Lease Liabilit
y4,758 4,507
265,699 300,420
Shareholders' Equity
Share Capital85,821 85,821
Retained Earnings673,931 583,359
Revaluation Reserve89,371 51,254
Foreign Currency Translation Reserv
e(10,506) (10,644)
Defined Benefit Pension Reserve(302) (232)
TOTAL EQUITY838,315 709,558
TOTAL LIABILITIES AND EQUIT
Y1,502,889 1,376,703
The accompanying notes form an integral part of these financial statements.

Statement of Changes in Equity for the Year Ended 31 March 2019
2019ForeignDefined
Asse
tCurrencyBenefit
$000Ordinary RevaluationTranslationPensionRetained
SharesReserv
eReserveReserveEarningsTotal
Balance at 1 April 2018
85,821 51,254 (10,644) (232) 583,359 709,558
Profit for the Year- - - - 137,624 137,624
Transfer of Revaluation Reserve fo- (1,283) - - 1,283 -
Other Comprehensive Income- 39,400 138 (70) - 39,468
Total Comprehensive - 38,117 138 (70) 138,907 177,092
Income for the Year
Transactions with Owners in Their Capacity as Owners:
Supplementary Dividends- - - - (1,879) (1,879)
Dividends Paid- - - - (48,335) (48,335)
Foreign Investor Tax Credit- - - - 1,879 1,879
Balance at 31 March 201985,821 89,371 (10,506) (302) 673,931 838,315
2018ForeignDefined
Asse
tCurrencyBenefit
$000Ordinary RevaluationTranslationPensionRetained
SharesReserv
eReserveReserveEarningsTotal
Balance at 1 April 2017
85,821 50,616 (12,037) (420) 518,982 642,962
Profit for the Year- - - - 107,678 107,678
Other Comprehensive Income- 638 1,393 188 - 2,219
Total Comprehensive - 638 1,393 188 107,678 109,897
Income for the Year
Transactions with Owners in Their Capacity as Owners:
Supplementary Dividends- - - - (1,497) (1,497)
Dividends Paid- - - - (43,301) (43,301)
Foreign Investor Tax Credit- - - - 1,497 1,497
Balance at 31 March 201885,821 51,254 (10,644) (232) 583,359 709,558

Cash Flow Statement for the Year Ended 31 March 2019
Note20192018
$000$000
Cash Flows From Operating Activities
Receipts from Customers
2,931,037 2,580,429
Interest Received673 511
Payments to Suppliers and Team Members(2,674,532) (2,388,030)
Interest Paid(7,541) (7,567)
Income Taxes Paid(52,214) (45,107)
NET CASH FLOWS FROM OPERATING ACTIVITIES197,423 140,236
Cash Flows From Investing Activities
Proceeds from Sale of Property, Plant & Equipment
14,048 4,507
Proceeds from Sale of Software50 46
Repayments by Team Members8 213
Purchase of Property, Plant & Equipment(87,673) (51,509)
Purchase of Software(15,603) (17,726)
Advances to Team Members(3) (10)
Establishment of Franchises and Acquisition of Subsidiaries- (250)
NET CASH FLOWS FROM INVESTING ACTIVITIES(89,173) (64,729)
Cash Flows From Financing Activities
Proceeds of Long Term Loans
320 1,974
Proceeds of Share Issues- -
Dividend Paid to Shareholders(48,335) (43,300)
Repayment of Loans(26,755) (28,441)
NET CASH FLOWS FROM FINANCING ACTIVITIES(74,770) (69,767)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS33,480 5,740
Net Foreign Exchange Differences1,215 380
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD80,485 74,365
CASH AND CASH EQUIVALENTS AT END OF PERIOD115,180 80,485
Comprised
Bank and Short Term Deposits
115,184 80,521
Bank Overdraft(4) (36)
115,180 80,485
The accompanying notes form an integral part of these financial statements.

1Corporate Information
The preliminary full year report announcement of Mainfreight Limited ("the parent") and its subsidiaries ("the Group")
for the year ended 31 March 2019 were 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 financial statements, except for the adoption of new
standards effective 1 April 2018, namely :
NZ IFRS 9 Financial Instruments: Classification and Measurement - the impact of this standard did not have a material
impact on the financial statements.
NZ IFRS 15 - Revenue from Contracts with Customers - the 2018 year has been restated with a reduction of revenue
of $2,160,000, profit before tax was reduced by $302,000 and after tax by $215,000. The impact upon opening
(1 April 2017) net assets and equity of the Group is calculated as a reduction of equity of $2,640,000.
3
Required NZX Disclosures
Movements in Ordinary Shares on Issu
e
20192018
SharesShares
Closing Balance100,698,548 100,698,548
Average Balance During Year100,698,548 100,698,548
Net Tangible Assets
20192018
$000$000
Net Tangible Assets619,405 484,612
Net Tangible Assets per Security (cps)615.11481.25
Net Tangible Assets includes Software and Deferred Tax Assets and Liabilities.
Dividends Paid and Proposed
20192018
$000$000
Recognised Amounts
Declared and Paid During the Year to Parent Shareholders
Final Fully Imputed Dividend for 2018: 26.0 cents (2017: 24.0 cents)
26,182 24,168
Interim Fully Imputed Dividend for 2019: 22.0 cents (2018: 19.0 cents)
22,153 19,133
48,335 43,301
Unrecognised Amounts
Final Fully Imputed Dividend for 2019: 34.0 cents (2018: 26.0 cents)
34,238 26,182
After the balance date, the above unrecognised dividends were approved by directors' resolution dated 27 May 2019.
These amounts have not been recognised as a liability in 2019 but will be brought to account in 2020.

6Segmental 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 accounting policies of the operating segments are the same as those described in the notes in note 2 with the exception of
deferred tax and the fair value of derivative financial instruments which are not reported on a monthly basis.
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 2019 and 31 March 2018.
NewAustraliaTheAsiaEuropeInter-2019
ZealandAmericasSegment $000
Operating Revenue
- Sales to customers
718,791 760,844 725,200 109,321 639,931 - 2,954,087
outside the group
- Inter-segment sales
(590) 18,646 54,544 77,409 37,578 (187,587) -
Total Revenue
718,201 779,490 779,744 186,730 677,509 (187,587) 2,954,087
EBITDA
110,556 59,323 38,342 9,263 39,565 - 257,049
Depreciation & Amortisation
22,638 8,163 6,565 657 15,084 - 53,107
Capital Expenditure
48,595 20,767 9,112 1,325 23,477 - 103,276
Trade Receivables
89,966 98,431 103,439 17,571 102,169 (22,200) 389,376
Non-current Assets
423,238 193,231 91,048 11,802 223,506 - 942,825
Total Assets
548,788 322,949 218,750 52,762 381,840 (22,200) 1,502,889
Total Liabilities
210,262142,957113,09924,392196,064(22,200)664,574

NewAustraliaTheAsiaEuropeInter-2018
ZealandAmericasSegment $000
Operating Revenue
- Sales to customers
666,039 674,679 608,846 117,308 549,828 - 2,616,700
outside the group
- Inter-segment sales
294 18,631 40,811 64,084 30,228 (154,048) -
Total Revenue
666,333 693,310 649,657 181,392 580,056 (154,048) 2,616,700
EBITDA
98,531 54,002 26,621 6,883 29,077 - 215,114
Depreciation & Amortisation
21,174 7,173 5,786 644 13,011 - 47,788
Capital Expenditure
33,463 7,860 6,495 240 21,173 - 69,231
Trade Receivables
85,475 92,321 94,181 15,212 93,488 (18,940) 361,737
Non-current Assets
372,010 175,197 83,823 11,094 223,388 - 865,512
Total Assets
473,466 299,529 200,561 50,897 371,190 (18,940) 1,376,703
Total Liabilities
202,686146,995114,87222,245199,287(18,940)667,145

Product Segments
The following table represents revenue and EBITDA regarding the three main types of services for the years ended
31 March 2019 and 31 March 2018.
DomesticWarehousingAir & Ocean2019
TransportForwarding $000
Revenue1,450,942 346,567 1,156,578 2,954,087
EBITDA156,681 37,282 63,086 257,049
DomesticWarehousingAir & Ocean2018
TransportForwarding $000
Revenue1,297,013 289,080 1,030,607 2,616,700
EBITDA128,382 33,142 53,590 215,114
Reconciliation between Segment EBITDA and the Income Statement20192018
$000$000
Profit from Operations Before Abnormal Items and Taxation for the Year
197,074 160,270
Interest Income(673) (511)
Derivative Fair Value Movement- -
Non-cash Share Based Payment Expense- -
Finance Costs7,541 7,567
Depreciation & Amortisation53,107 47,788
EBITDA257,049 215,114
EBITDA is defined as earnings before net interest expense, tax, depreciation, amortisation, abnormal items, royalties, share based payment
expense, minority interests and associates.
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.

4Abnormal Items
During the year the Group had $4,965,000 of abnormal expenses (2018 $7,224,000). The related after tax expense was
$3,460,000 (2018 $5,048,000).
In the year the Group had no abnormal gains (2018 nil). The related after tax gain was nil (2018 $722,000).
These items comprised of:
2019 Yea
rPre-TaxTaxAfter Tax
$000$000$000
Brand Name Impairment***(3,912) 978 (2,934)
Redundancies(1,053) 527 (526)
(4,965) 1,505 (3,460)
2018 Yea
rPre-TaxTaxAfter Tax
$000
$000$000
Brand Name Impairment***(3,763) 941 (2,822)
Redundancies(3,461) 1,235 (2,226)
Tax Rate Changes - 722 722
(7,224) 2,898 (4,326)
*** With the process of rebranding our European operations to Mainfreight underway it was decided to impair
the purchased brand of Wim Bosman by one third in the 2019 financial year (2018 one third). This impairment
entry has no cash impact.
5
Annual Report and Annual Meeting
The annual report is expected to be available on 26 June 2019.
The Annual Meeting is to be held at the Barrel Hall, Villa Maria Estate, 118 Montgomerie Road, Mangere,
Auckland at 4.00pm on Thursday 30 July 2019.

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$
12 July, 201919 July, 2019
$34,237,506
Date Payable
19 July, 2019
$0.023611110.13222222
In dollars and cents
Revenue
$0.34000000
NZ $$0.06000000
Enter N/A if not
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(09) 259 5500(09) 270 74022752019
Ordinary SharesNZMFTE0001S9
EMAIL: announce@nzx.com
Notice of event affecting securities
Mainfreight Limited
Tim WilliamsDirectors Resolution

---

MAINFREIGHT LIMITED

Mainfreight Lane | off Saleyards Road | Otahuhu 1062 | New Zealand
Tel +64 9 259 5500 | Fax +64 9 270 7400
PO Box 14-038 | Panmure | Auckland 1741 | New Zealand

Supporters of
MAINFREIGHT – GLOBAL LOGISTICS

MAINFREIGHT LIMITED

Financial result for the twelve months ended 31 March 2019 (Unaudited)

Commentary
Mainfreight is pleased to announce our full year financial results to 31 March 2019; this
result our best ever.

Revenue $2.954 billion Up $337.39 million or 12.9%
EBITDA $257.05 million Up $41.94 million or 19.5%
Net profit (before abnormals) $141.08 million Up $29.08 million or 26.0%

Adjusted for foreign exchange impact, revenue is up 10.8%, and EBITDA up 18.0%.

Abnormal costs after tax totalled $3.46 million. Of this, $2.93 million relates to the
further write-down of the European brand name which is in the process of being
discontinued. The balance, $0.53 million, is restructuring costs in Europe and the
Americas.

Our well-signalled strategy of intensifying our global branch network, within cities, within
countries and of course, between countries, has continued during this past year. The
benefit of our network development across our three core products – domestic
transportation (Transport), warehousing (Logistics) and international freight forwarding
(Air & Ocean and CaroTrans) – is reflected in these improving financial results.

We expect to continue enhancing our network in the coming years, with an expected
$350 million of capital expenditure on land and buildings projected over the next two
years. It is expected that further investment in leased facilities will also continue, to
offset short-term growth requirements from increasing customer demand.

- 2 -

Divisional Performance (figures in local currencies)

New Zealand (NZ$)
Revenue $718.79 million Up $52.75 million or 7.9%
EBITDA $110.56 million Up $12.03 million or 12.2%

Our network intensity and reach has never been stronger than in this past year, where
we have seen our influence increase in every region in New Zealand. We now have a
branch network across all three products which extends from urban centres into
regional areas with populations less than 20,000. As a result, delivery times and quality
have improved, and we have been able to secure new customers, including providing
import and export services from many regional locations never before serviced by
Mainfreight. Additional regional branches are in the final stages of planning, for
implementation during the current financial year.

Strong financial performance culminated in a record EBITDA result for the New Zealand
business.

Our Logistics business increased its warehousing footprint, including expansion into
Cromwell to service the fast-growing Central Otago region, and has new sites under
construction in Hamilton, with planning underway for Tauranga. A ninth site in Auckland
has also opened post-result.

In our domestic Transport operations we expect to open the new 12,000m2 Mount
Maunganui facility mid-2020, and our requirement for improved, larger facilities to
manage growth, sees us with planning underway for new facilities in South and West
Auckland, and the regional centres of Whakatane and Levin, an extension for Oamaru,
and replacement facilities for Napier, Masterton, Blenheim and Gore.

In our Air & Ocean division we continue to increase air and sea freight tonnage, with
increasing support from our regional locations. Improved perishable air freight handling
facilities in Auckland have assisted increased capability in this sector. We have also
completed a major solar installation at our Westney Road facility in Auckland post-
result.

- 3 -

Australia
(AU$)
Revenue AU$710.17 million Up AU$86.90 million or 13.9%
EBITDA AU$55.37 million Up AU$5.49 million or 11.0%

After a relatively slow start to our financial year we have achieved satisfactory full year
results in Australia.

The new branch location for Transport was opened in Toowoomba (having been
delayed), and the Geelong branch moved to a new facility. Plans are underway for
additional domestic freight facilities in Sydney and on Queensland’s Sunshine Coast.
Construction of our new Adelaide facility is expected to commence late 2019.

In our Logistics business, four new warehouses were opened with an additional
AU$12 million of new business. Our standing in the premium beverage sector
continues to grow. New warehouse business has in turn flowed into domestic freight
tonnage. Additional warehousing capacity is planned in the coming year for Brisbane,
Sydney, Melbourne and Perth, including purpose-designed capacity to aid warehousing
of retail dangerous goods, which will be complemented by our specialist dangerous
goods transport business, ChemCouriers.

Our Air & Ocean business improved both its sales growth and profitability over the prior
year, with a strong emphasis on export related growth, particularly in the perishable
airfreight sector. As with the balance of our Air & Ocean network globally, there is an
emphasis on the development of LCL consolidation activity.


Asia (US$)
Revenue US$74.45 million Down US$(9.42) million or (11.2)%
EBITDA US$6.31 million Up US$1.39 million or 28.2%

Our performance across Asia has improved at EBITDA level through a focus on
improving margins. As a result, an amount of unprofitable wholesale air freight
business was exited, reducing revenue levels.

- 4 -

We continue to build our profile and network within the Asia region, opening branches in
Kuala Lumpur, Malaysia, and two branches in Japan at Tokyo and Fukuoka. This lif ts
our Asian footprint to eight countries and 21 branches. In addition, we are looking to
add a further six regional sales desk locations in second tier cities across the region,
boosting our sales reach and capability.

Of note during the period is the growth of intra-Asian freight movements. Whilst small in
terms of revenue per container, these movements are an important and growing feature
of trade within the region. Trade tariffs affecting the China/USA trade route saw trade
volumes fluctuate, peaking prior to the July 2018 implementation. Diversifying our trade
focus will assist, alleviating dependency on the volatile USA trade lanes.

Europe (Euro €)
Revenue EU€376.28 million Up EU€40.17 million or 12.0%
EBITDA EU€23.26 million Up EU€5.49 million or 30.9%

It is pleasing to see progress being made in our European business. The strong
performance in Transport, particularly in the Netherlands, lays a good foundation for
future improvement across the network. A focus on cross-dock and pick-up and
delivery efficiencies, together with line-haul utilisation, has resulted in improved
margins.

In Logistics two new warehouses were commissioned during the year, with utilisation
levels improvement month on month as new customers are gained.

Our Air & Ocean operations continue to find growth on the back of our global
expansion and network effectiveness. Opening a second branch operation in Germany
(Hamburg) provides more sales opportunities. Pleasing progress continues in the
relatively new locations of the UK and Italy.

We expect to continue to intensify our European footprint as sales growth allows.

Rebranding to Mainfreight continues, and we expect completion by year end across all
assets.

- 5 -

The Americas (US$)
Revenue US$493.86 million Up US$58.60 million or 13.5%
EBITDA US$26.11 million Up US$7.08 million or 37.2%

Improvement from our American interests continues albeit at a slower pace than we
would wish. Finding efficiency in our domestic Transport operations has been a
contributor to the lift in EBITDA. A satisfactory increase with plenty of opportunity in
front of us to grow a much larger business across all three products.

The Transport operation has initiated more direct Mainfreight-controlled line-haul
services across our major city network, improving utilisation and margins. As sales
growth allows, this will continue until all third-party/agent usage is ended.

Our Air & Ocean business continues to find growth, with a strong emphasis on
developing more LCL consolidation services to and from the core Mainfreight-to-
Mainfreight trade lanes globally. Significant sales opportunities are under tender
currently.

CaroTrans, our wholesale sea freight operation, has improved processes, revenues
and profitability, and is well positioned to further lift its performance over time.

Our Logistics operations continue to build a portfolio of new customers to lock in
utilisation gains in their recently implemented warehouse facilities, with a focus on also
gaining the domestic transport and/or international freight components.

The Americas region continues to offer us large scale opportunity for market share
gains. Our sales effectiveness needs to further improve for this to happen.

We remain confident that the momentum of the year just concluded will continue.

- 6 -

Group Operating Cash Flows
Operating cash flows were $197.42 million, up from $140.24 million in the prior year,
reflecting increased profitability, acceptable cash collection processes and increased
depreciation.

Net debt is $130.48 million, down from $196.85 million, a reduction of $66.37million.

Gearing ratios improved from 21.7% to 13.5%

During the year net capital expenditure totalled $89.18 million, with expenditure for land
and buildings accounting for $30.83 million, plant and equipment of $42.80 million, and
information technology of $15.55 million.

It is our expectation that capital expenditure required for the following two years for
property development globally will be in the vicinity of $350 million.

Dividend
The Directors have approved a final dividend of 34.0 cents per share fully imputed at
the 28% company tax rate, with the books closing on 12 July 2019; payment will be
made on 19 July 2019. This takes the full dividend for the year to 56.0 cents per share;
a 24.4% increase year on year.

Outlook
We are proud of this financial result, our best ever, particularly as it contains healthy
profit improvement across all of our global regions.

Whilst we will bask for a moment, savouring this result, we remain very conscious of the
task ahead.

We have again increased salaries for those at the lower end of our pay range in
New Zealand and Australia, in addition to the usual annual salary increases. The
ongoing investment required to improve and further intensify our network adds
increased overheads for the years ahead.

- 7 -

To counter these cost increases, our teams across the world are focused on achieving
sales growth, and taking market share. In addition to gaining new customers, when we
analyse the trading statistics for our current Top 500 customers, there remains plenty of
scope to extend their use of a wider range of our services and across more of our
locations.

Aside from increased costs, there is a level of uncertainty in global trade and slowing
economies. Whilst not immune to such external effects, we continue to position
ourselves to counter the headwinds and look for ongoing growth.

Our improved financial result will again allow us to pay a discretionary bonus to our
people who meet the criteria set by the Board of Directors. The profit before tax of
$197.07 million equates to a potential bonus of $27.24 million, which is an increase of
$6.55 million or 31% on the prior year’s payment. It delights us to be able to do so;
allowing our people to share in the success of the company.

We are confident of our strategies, and that our commitment to network intensification,
alongside high quality logistics services, will provide improving results for the future.


Mainfreight will release its financial results for the first half of the 2020 financial year to
the market on 13 November 2019.

For further information, please contact Don Braid, Group Managing Director,
telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com.