Mainfreight Full Year Results to 31 March 2021

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of IssuerMainfreight Limited
Reporting Period12 months to 31 March 2021
Previous Reporting Period12 months to 31 March 2020
CurrencyNZD
Amount (000s)Percentage Change
Revenue from Continuing Operations$3,543,83814.5%
Total Revenue$3,543,83814.5%
Net Profit/(Loss) from Continuing Operations$188,11018.2%
Total Net Profit/(Loss)$188,11018.2%
Interim/Final Dividend
Amount per Quoted Equity Security$0.45000000
Imputed Amount per Quoted Equity Security$0.07941176
Record Date9/07/2021
Dividend Payment Date16/07/2021
Current PeriodPrior Comparable Period
Net tangible assets per Quoted Equity Security
$8.2706$6.6199
A brief explanation of any of the figures above
necessary to enable the figures to be
understood
Name of person authorised to make this
announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
26/05/2021
Unaudited financial statements accompany this announcement.
Authority for this Announcement
Tim Williams, Chief Financial Officer
Tim Williams
+64 9 259 5510
tim@mainfreight.com

PRELIMINARY FULL YEAR REPORT ANNOUNCEMENT
Mainfreight Limited
For Full Year Ended 31 March 2021
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 being audited. The Listed Issuer has a formally constituted Audit Committee of the Board of Directors.
Income Statement for the Year Ended 31 March 2021
Note20212020
$000$000
Operating Revenue3,543,531 3,094,736
Interest Income307 658
Total Revenue3,543,838 3,095,394
Transport Costs(2,141,744) (1,803,460)
Labour Expenses(723,444) (670,103)
Other Expenses(211,836) (222,502)
Earnings before Interest Costs, Tax, Depreciation, Amortisation and Abnormal Items466,814 399,329
Depreciation of Right of Use Assets(113,938) (111,877)
Finance Costs Relating to Lease Liabilities(16,225) (17,021)
Other Depreciation and Amortisation Expenses(68,460) (57,852)
Other Finance Costs(5,784) (6,326)
Profit Before Abnormal Items and Taxation for the Year262,407 206,253
Income Tax on Profit Before Abnormal Items(74,297) (58,278)
Net Profit Before Abnormal Items for the Year188,110 147,975
Abnormal Items4- (4,783)
Income Tax on Abnormal Items4- 1,309
Abnormal Tax Item - Reversal of deferred tax liability on buildings4- 14,700
Abnormal Items After Taxation- 11,226
Profit Before Taxation for the Year262,407 201,470
Income Tax Expense(74,297) (42,269)
Net Profit for the Year188,110 159,201
Earnings per share for profit attributable to the ordinary equity holders of the company are:
CentsCents
Basic and Diluted Earnings Per Share:Total Operations186.81158.10

Statement of Comprehensive Income for the Year Ended 31 March 2021
20212020
$000$000
Net Profit for the Year188,110 159,201
Other Comprehensive Income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Exchange Differences on Translation of Foreign Operations(22,545) 23,850
Income Tax Effect(2,782) 3,323
Net Other comprehensive income to be reclassified to profit or loss in subsequent periods(25,327) 27,173
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Revaluation of Land including Foreign Exchange Movements55,814 1,233
Income Tax Effect(5,324) -
Net Other comprehensive income not to be reclassified to profit or loss in subsequent periods50,490 1,233
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Defined Benefit Pension Provision(159) (228)
Income Tax Effect40 57
Net Other comprehensive income not to be reclassified to profit or loss in subsequent periods(119) (171)
Other Comprehensive Income for the Year, Net of Tax25,044 28,235
Total Comprehensive Income for the Year, Net of Tax213,154 187,436

Balance Sheet as at 31 March 2021
20212020
$000$000
Current Assets
Bank139,555 116,140
Trade Debtors489,246 420,839
Income Tax Receivable251 2,937
Other Receivables89,531 73,129
718,583 613,045
Non-current Assets
Property755,566 652,639
Plant & Equipment162,597 123,936
Right of Use Assets567,956 615,250
Software53,510 53,542
Goodwill208,626 226,566
Other Intangible Assets1,607 4,578
Deferred Tax Asset18,461 15,038
1,768,323 1,691,549
TOTAL ASSETS2,486,906 2,304,594
Current Liabilities
Bank- 6
Trade Creditors & Accruals412,826 339,562
Employee Entitlements91,997 69,565
Provision for Taxation30,344 19,207
Lease Liability for Right of Use Assets118,158 124,128
Asset Finance Loans9,198 2,732
662,523 555,200
Non-current Liabilities
Bank Term Loan210,000 267,698
Employee Entitlements2,922 2,887
Deferred Tax Liability6,571 6,654
Lease Liability for Right of Use Assets467,276
502,734
Asset Finance Loans22,568 3,082
709,337 783,055
TOTAL LIABILITIES1,371,860 1,338,255
Shareholders' Equity
Share Capital85,821 85,821
Retained Earnings897,383 773,720
Revaluation Reserve141,094 90,604
Foreign Currency Translation Reserve(8,660) 16,667
Defined Benefit Pension Reserve(592) (473)
TOTAL EQUITY1,115,046 966,339
TOTAL LIABILITIES AND EQUITY2,486,906 2,304,594
The accompanying notes form an integral part of these financial statements.

Statement of Changes in Equity for the Year Ended 31 March 2021
ForeignDefined
2021AssetCurrencyBenefit
$000OrdinaryRevaluationTranslationPensionRetained
SharesReserveReserveReserveEarningsTotal
Balance at 1 April 202085,821 90,604 16,667 (473) 773,720 966,339
Profit for the Year- - - - 188,110 188,110
Other Comprehensive Income- 50,490 (25,327) (119) - 25,044
Total Comprehensive Income for the Year- 50,490 (25,327) (119) 188,110 213,154
Transactions with Owners in Their Capacity as Owners:
Supplementary Dividends- - - - (2,132) (2,132)
Dividends Paid- - - - (64,447) (64,447)
Foreign Investor Tax Credit- - - - 2,132 2,132
Balance at 31 March 202185,821 141,094 (8,660) (592) 897,383 1,115,046
ForeignDefined
2020AssetCurrencyBenefit
$000OrdinaryRevaluationTranslationPensionRetained
SharesReserveReserveReserveEarningsTotal
Balance at 1 April 201985,821 89,371 (10,506) (302) 673,931 838,315
Profit for the Year- - - - 159,201 159,201
Other Comprehensive Income- 1,233 27,173 (171) - 28,235
Total Comprehensive Income for the Year- 1,233 27,173 (171) 159,201 187,436
Transactions with Owners in Their Capacity as Owners:
Supplementary Dividends- - - - (2,413) (2,413)
Dividends Paid- - - - (59,412) (59,412)
Foreign Investor Tax Credit- - - - 2,413 2,413
Balance at 31 March 202085,821 90,604 16,667 (473) 773,720 966,339

Cash Flow Statement for the Year Ended 31 March 2021
20202020
$000$000
Cash Flows From Operating Activities
Receipts from Customers3,459,132 3,092,861
Interest Received307 658
Payments to Suppliers and Team Members(2,992,486) (2,705,526)
Finance Charge on NZ IFRS 16 Leases(16,225) (17,021)
Interest Paid(5,784) (6,326)
Income Taxes Paid(68,662) (63,846)
NET CASH FLOWS FROM OPERATING ACTIVITIES376,282 300,800
Cash Flows From Investing Activities
Proceeds from Sale of Property, Plant & Equipment3,529 4,930
Proceeds from Sale of Software- 52
Purchase of Property, Plant & Equipment(104,048) (143,286)
Purchase of Software(18,030) (16,728)
Advances to Team Members(2) -
NET CASH FLOWS FROM INVESTING ACTIVITIES(118,551) (155,032)
Cash Flows From Financing Activities
Proceeds of Long Term Loans62,054 40,554
Dividend Paid to Shareholders(64,447) (59,412)
Repayment of Loans(118,073) (32,421)
Lease Payments NZ IFRS16 (107,125) (100,644)
NET CASH FLOWS FROM FINANCING ACTIVITIES(227,591) (151,923)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS30,140 (6,155)
Net Foreign Exchange Differences(6,719) 7,109
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD116,134 115,180
CASH AND CASH EQUIVALENTS AT END OF PERIOD139,555 116,134
Comprised
Bank and Short Term Deposits139,555 116,140
Bank Overdraft- (6)
139,555
116,134
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 full year ended 31 March 2021 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 ended 31 March 2020 financial statements.
3
Required NZX DisclosuresParent
Movements in Ordinary Shares on Issue
20212020
SharesShares
Closing Balance100,698,548 100,698,548
Average Balance During Year100,698,548 100,698,548
Net Tangible Assets
20212020
$000$000
Net Tangible Assets832,842 666,615
Net Tangible Assets per Security (cps)827.06661.99
Net Tangible Assets excludes Software and Deferred Tax Assets.
Dividends Paid and Proposed
20212020
$000$000
Recognised Amounts
Declared and Paid During the Year to Parent Shareholders
Final Fully Imputed Dividend for 2020: 34.0 cents (2019: 34.0 cents)34,237 34,237
Interim Fully Imputed Dividend for 2021: 30.0 cents (2020: 25.0 cents)30,210 25,175
64,447 59,412
Unrecognised Amounts
Final Fully Imputed Dividend for 2021: 45.0 cents (2020: 34.0 cents)45,314 34,238
After the balance date, the above unrecognised dividends were approved by directors' resolution dated 25 May 2021.

4Abnormal Items
Abnormal items are determined in accordance with the principles of consistency, relevance and clarity. Transactions
considered for classification as abnormal items include acquisition and disposal costs; impairment or reversal of
impairment of assets; business integration; and transactions or events outside of the Group’s ongoing operations that
have a significant impact on reported profits.
During the year the Group had no abnormal expenses (2020 $4,783,000). The related after tax expense
was nil (2020 $3,474,000).
In the year the Group had no abnormal gains (2020 nil). The related after tax gain was nil (2020 $14,700,000).
These items comprised of:
2021 Year
Pre-TaxTaxAfter Tax
$000$000$000
- - -
- - -
2020 Year
Pre-TaxTaxAfter Tax
$000
$000$000
Brand Name Impairment(3,949) 987 (2,962)
Redundancies(835) 322 (513)
Building Depreciation Taxation- 14,701 14,701
(4,784) 16,010 11,226
5
Annual Report and Annual Meeting
The annual report is expected to be available on 25 June 2021.
The Annual Meeting is to be held at 4.00pm on Thursday 29 July 2021; venue to be advised.

5Segmental 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 2021 and 31 March 2020.
Year Ended 31 March 2021
NewAustraliaTheAsiaEuropeInter-Total
ZealandAmericasSegment $000
Operating Revenue
-Sales to customers 845,554 939,340 859,647 155,392 743,905 - 3,543,838
outside the group
-Inter-segment sales2,199 25,773 50,574 160,354 44,708 (283,608) -
Total Revenue847,753 965,113 910,221 315,746 788,613 (283,608) 3,543,838
PBT & Abnormal Items97,814 76,573 38,627 10,501 38,892 - 262,407
Net Interest Expense6,289 7,267 4,948 143 3,055 - 21,702
Depreciation & Amortisation48,411 46,910 27,779 3,086 56,212 - 182,398
Capital Expenditure73,612 18,503 9,859 1,418 18,686 - 122,078
Trade Receivables107,640 129,358 140,222 52,032 105,504 (45,510) 489,246
Non-current Assets672,691 473,197 229,823 17,862 374,750 - 1,768,323
Total Assets805,375 640,163 410,136 92,505 584,237 (45,510) 2,486,906
Total Liabilities348,340379,753272,82952,965363,483(45,510)1,371,860


Year Ended 31 March 2020
NewAustraliaTheAsiaEuropeInter-Total
ZealandAmericasSegment$000
Operating Revenue
-Sales to customers 752,913 796,545 761,950 94,786 689,200 - 3,095,394
outside the group
-Inter-segment sales396 20,352 48,421 73,489 38,133 (180,791) -
Total Revenue753,309 816,897 810,371 168,275 727,333 (180,791) 3,095,394
PBT & Abnormal Items87,691 51,344 30,881 5,236 31,101 - 206,253
Net Interest Expense5,277 8,301 5,045 153 3,913 - 22,689
Depreciation & Amortisation46,799 45,164 24,481 2,945 50,340 - 169,729
Capital Expenditure62,225 71,497 9,025 1,126 16,141 - 160,014
Trade Receivables83,982 105,889 119,361 24,618 110,812 (23,823) 420,839
Non-current Assets560,315 451,269 236,302 17,765 425,898 - 1,691,549
Total Assets665,587 590,187 385,118 64,399 623,126 (23,823) 2,304,594
Total Liabilities299,026364,160258,79733,125406,970(23,823)1,338,255

Division Segments
The followin
g table represents revenue and PBT regarding the three main types of services for the years ended
31 March 2021 and 31 March 2020.
Year Ended 31 March 2021DomesticWarehousingAir & OceanTotal
TransportForwarding $000
Revenue1,610,741 452,116 1,480,981 3,543,838
PBT & Abnormal Item
s140,527 42,207 79,673 262,407
Year Ended 31 March 2020DomesticWarehousingAir & OceanTotal
TransportForwarding $000
Revenue1,550,299 409,749 1,135,346 3,095,394
PBT & Abnormal Item
s119,682 34,317 52,254 206,253
Reconciliation between non-GAAP and the Income Statemen
t20212020
$000$000
Profit Before Taxation for the Year262,407 201,470
Abnormal Items- 4,783
Profit Before Abnormal Items and Taxation for the Yea
r262,407 206,253
Interest Income(307) (658)
Finance Costs Relatin
g to Lease Liabilities16,225 17,021
Other Finance Costs5,784 6,326
EBIT
A284,109 228,942
Depreciation of Right of Use Assets113,938 111,877
Other Depreciation and Amortisation Expenses68,460 57,852
EBITDA (adjusted)466,507 398,671
EBITDA (adjusted) is defined as earnings before net interest expense, tax, depreciation, amortisation, abnormal items 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.

---

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 2021 (Unaudited)

Commentary
Mainfreight is pleased to announce our full-year financial results to 31 March 2021, a
record result and a satisfactory improvement on the year prior. Sales revenues for the
year increased 14.5% to $3.54 billion, and net profit before abnormals by 27.1% to
$188.11 million. Profit before tax was $262.41 million, increasing by 27.2%.

Revenue $3,544 billion Up $448.44 million or 14.5%
Profit before tax $262.41 million Up $56.15 million or 27.2%
Net profit before abnormals $188.11 million Up $40.14 million or 27.1%

 The impact of foreign exchange on Group revenue and profits was negligible in the
F21 year.
 There are no abnormal items in the current year; the prior year’s abnormal items were
a net gain of $11.23 million.
 A dividend of 45 cents per share has been set by the Board, payable on 16 July 2021.

We are pleased with this result, particularly in light of initial supply chain disruptions in the
early part of the financial year, where lockdowns in response to the global pandemic saw
revenues decline. New Zealand was the worst affected, with April 2020 weekly revenues
reduced by some 40%.

We prepared at the outset of the pandemic for the likelihood of very difficult trading
conditions and a tough economic environment. Our response was unequivocal; look after
our people, look after our customers, guard our cash, and embrace the opportunities that
may arise.

- 2 -

We had strength in our balance sheet, good cash flows and our decentralised leadership
structure, which allowed our people the freedom to respond and adjust to the pandemic
restrictions.

The effectiveness of our approach, with the spirit and support shown by the Mainfreight
team and our customers, can be seen in this record financial result.

All five regions experienced improved sales growth through a mix of organic and market
share increases, as customers, both new and existing, experienced strong consumer
demand.

Group Operating Cash Flows
Operating cash flows were $376.28 million, up from $300.80 million in the prior year,
reflecting increased profitability and acceptable cash collection.

Current debt facilities total $477 million, of which $269 million remained undrawn. Net
debt at 31 March 2021, was $102.21 million, down from $157.38 million at 31 March 2020,
a decrease of $55.17 million. Gearing ratios continued to improve, at 8.4% compared to
14.0% at 31 March 2020.

Cash collection remains satisfactory across all regions.

During the year, net capital expenditure totalled $118.55 million, with expenditure for land
and buildings accounting for $58.93 million, property racking and fit-out costs of $15.59
million, plant and equipment of $26.0 million, and information technology of $18.03
million.

We deferred capital expenditure early in the last year, however as confidence and
economic activity increased, we recommenced our land and building projects.
Nevertheless, the interruption created capacity pressures within the network, particularly
in New Zealand.

Our expected capital expenditure for property across the next two years is $338 million,
which includes $156 million for land and buildings in the new financial year.

- 3 -

Dividend
After consideration, the Directors have approved a final dividend of 45.0 cents per share
fully imputed at the 28% company tax rate. With the record date on 9 July 2021; payment
will be made on 16 July 2021. This brings the full dividend for the year to 75.0 cents per
share, an increase of 27.1% over the prior year, and reflects improved trading results and
confidence looking forward.

Discretionary Bonus
In light of exceptional performance by our people in difficult operating conditions around
the world, and in line with the profit improvement achieved, our discretionary profit bonus
has increased to $43.88 million, up 60.8% from $27.29 million for the year prior. We also
increased our team Christmas bonus for 2020, up from $5.35 million to $11.02 million.

We remain proud of our team’s achievements and are pleased to share our profits with
those who contributed to them.

Divisional Performance (figures in local currencies)

New Zealand (NZ$)
Revenue $845.55 million Up $92.64 million or 12.3%
Profit Before Tax $97.81 million Up $10.12 million or 11.5%

This is a pleasing result from our New Zealand team, particularly when sales revenues
declined by as much as 40% during April 2020, as New Zealand faced Level 4 pandemic
lockdowns.

The ensuing strong consumer demand across our main customer verticals saw an uplift
in supply chain activity.

Our Transport network came under increasing pressure as the demand for freight grew;
pre-Christmas volumes reached record levels.

- 4 -

As capacity within our Transport network became constrained, the completion of projects
that were already underway for new facilities in Gore, Levin and Tauranga brought some
much-welcomed relief, but more is required. Planning and construction is now underway
for the new facility in West Auckland, with extensions for our Kaitaia and Whangarei sites.

Land has been purchased in Auckland for increased warehousing capacity, and an
agreement is in place for a new facility for Owens Transport in Penrose, Auckland.
Additional land purchases and leases will be completed later this year for Nelson,
Hastings, Cambridge and Wellington.

Our Warehouse business has seen increased utilisation, as our customers hold more
inventory, and as we have continued to attract new customers. The new land and lease
commitments, together exceeding 70,000m
2
, will allow for consolidation of several
smaller sites as well as capacity for growth.

Our Air & Ocean business was engaged early in the pandemic in finding much-needed
air freight capacity. In excess of 40 air freight charters were completed, all round trips,
many carrying critical supplies of PPE gear and medical supplies in-bound, and providing
valuable out-bound services for our perishable export community.

Sea freight capacity has tightened with freight rates at record levels. The initiative to
charter our first full vessel, from Shanghai to Auckland, was bold and has proved a
success. This ship arrived in early May, and further charters are under negotiation.

Supply chain capacity into and from New Zealand, and internally, remains congested.
We are frustrated with the international shipping lines, and working hard to secure more
space and improve services for our customers. We expect the international congestion
and increased rate levels to last for some time to come.

- 5 -

Australia (AU$)
Revenue AU$877.16 million Up AU$120.36 million or 15.9%
Profit Before Tax AU$71.50 million Up AU$22.72 million or 46.6%

A remarkable performance from our Australian team. Our growth and development
across the Australian freight and logistics sector has contributed to this very satisfactory
financial performance, which is our best year-on-year improvement that we have
achieved in Australia.

The push by our Transport business into regional centres has provided better on-time
freight delivery, and developed a larger customer base. We have extended our network
further into the regions, and expect to open in another five centres in the next 12 months.

Building consents are underway for our two biggest cross-dock facilities, in South
Melbourne and Adelaide, which we expect to be completed mid-2022.

Our Warehouse footprint also increased during the year with the opening of an owned
site in Melbourne, and another leased site in Sydney. Further temporary sites are an
interim measure which will see us at 203,000m
2
by the end of July 2021, up over
40,000m
2
since March 2020.

Our two new-build warehouses are scheduled for completion by late 2022: South
Melbourne at 30,000m
2
and a leased facility in Sydney of 50,000m
2
, and are likely to bring
us a net gain of 59,000m
2
once interim and smaller warehouses are consolidated. The
strategy to control freight flow into and out of our warehouses will also benefit our
Transport and Air & Ocean divisions.

Automation is currently being tested at our Epping, Melbourne site, as a trial for wider
application globally.

Air & Ocean growth mirrors that of our global network. A well-executed focus on air
freight capability and LCL freight growth were highlights of the year. Increasing trade
volumes (particularly exports to Europe) will deliver additional growth in the coming year.

- 6 -

Europe (Euro €)
Revenue EU€427.52 million Up EU€26.13 million or 6.5%
Profit Before Tax EU€22.35 million Up EU€4.24 million or 23.4%

Despite extensive lockdowns across Europe, many of which are still in force, our volumes
have been consistent in our Transport and Air & Ocean divisions. However, customer
stock holdings in our warehouses reduced in the first six months of the year, leading to
lower Warehouse utilisation.

Building network intensity is a key initiative across Europe, particularly for Transport as
we wish to run more direct point-to-point line-haul, and pick up and deliver closer to our
customers. We opened new branches in Romania and Italy, and expect to add additional
new sites in The Netherlands, Italy, Russia and Germany in the coming year.

Brexit issues between the United Kingdom and Europe have been a cause of frustration
since January 2021. There have been considerable delays to freight, as complicated
Customs formalities are completed.

Our Warehouse footprint now totals over 330,000m
2
across Europe including now being
located in the UK, and freight from these warehouses into our Transport network
increased from 42% to 57% of all warehouse volume.

Our Air & Ocean business continued to find growth, both from across our global network
and from European customers already utilising our other services. Several air charters
were completed, and a strong focus on LCL consolidation has assisted. New branches
in Manchester (UK) and Barcelona (Spain) are profitable. We also saw trading increase
for our Russian operations. Shipping space shortages continue to affect and frustrate our
customers in Europe, as with the balance of our global network.

- 7 -

The Americas (US$)
Revenue US$576.91 million Up US$83.62 million or 17.0%
Profit Before Tax US$25.93 million Up US$5.93 million or 29.7%

A very pleasing performance from our Air & Ocean division has bolstered our result in
the region, despite the United States being the country that was most disrupted by the
pandemic out of all our geographic locations. Strong demand from customers and market
share gains provided good growth in this sector for us. The separation of our larger
branches into distinct Air freight and Ocean freight operations has seen significant air
freight growth as we focus on this speciality sector.

Warehousing capacity and utilisation increased during the year. Unfortunately, an
amount of inventory despatched required delivery to homes rather than business
locations, thus excluding our Transport network.

Post-year end, a number of new customer gains will require the leasing of three additional
warehouses, including a 45,000m
2
facility in Dallas, Texas.

Our Transport business saw sales revenues and profit before tax decline during the
12-month period. Extended business closures during pandemic lockdowns had an
impact on domestic freight volumes. However, post-year end and with a stronger focus
on LTL in every-day freight verticals, we are achieving improved performance. We have
established more key line-haul routes giving us greater control of our road network.

We continue to see significant growth opportunity in the North American transport market,
including Mexico and Canada, however it will take time to achieve relevancy relative to
the market scale.

CaroTrans, our wholesale sea freight consolidation business, has found improved
financial performance during the year as customers ship more part-loads (LCL) due to
the shortage of full container space on international trade-lanes. Agency network
changes by CaroTrans in South America, Italy and Spain have also provided
improvement in freight volumes.

- 8 -

Asia (US$)
Revenue US$104.28 million Up US$42.92 million or 69.9%
Profit Before Tax US$7.05 million Up US$3.66 million or 107.9%

Growth in our Asian business has assisted us to a satisfactory result, with both profit and
sales revenues increasing significantly, by 108% and 70% respectively. Rate increases
from both air and sea freight carriers have had an influence on this revenue increase,
however we have also improved our market share.

We are seeing revenue improvement across our wider Asian branch network, with the
knowledge that there is ample opportunity to develop further. We are particularly focused
on increasing imports into the region from the balance of our global network, which will
also support our efforts to develop warehousing services in Asia.

Building on the key customer verticals we have elsewhere in the network is our top
priority, including improving our capabilities to move pharmaceutical, and looking for
growth in the movement of perishable products.


Outlook
This is a significant result for the Mainfreight family. Not only have we achieved a record
profit before tax of $262 million, grown revenues to exceed $3.5 billion, and net profit
before abnormals of $188 million – all during a tumultuous time in the world’s history –
we have achieved this with success in every one of the five regions where we are located.
Our business model has been resilient and effective.

Our businesses outside New Zealand now contribute over 76% of our sales revenues
and over 63% of net profit. We are creating a global business capable of providing supply
chain logistics services for our customers around the world, competing with significantly
larger global competitors.

Our people can be very proud of the way they stood up to be counted, and were able to
deliver ahead of many others.

- 9 -

Uncertainty remains; we are by no means satisfied with where we have landed at the end
of this past year. Service levels need to improve, and with heavily congested supply
chains affecting the world’s freight lanes, we have much to achieve on behalf of our
customers. It is our view that the heavily inflated shipping and air cargo rates will continue
to be a feature of global trade while freight demand is exceeding air and sea capacity.

In the first seven weeks of trading into the 2022 financial year, we have seen similar
activity levels as those of the past six months. This gives us confidence that we will
deliver further improved results in the near term.

We continue to be optimistic and, it has to be said, we are bloody proud of our people
who have delivered this record result.


Mainfreight will release its financial results for the first half of the 2022 financial year to
the market on 11 November 2021.

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

---

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(for Equity Security issuer/Equity and Debt Security issuer)
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Financial product name/description
NZX ticker code
ISIN
Full YearxQuarterly
Half YearSpecial
DRP Applies
Record date
Ex-Date (one business day before the
Record Date
)
Payment date (and allotment date for DRP)
Total monies associated with the distribution
Source of distribution (for example, retained
earnin
gs)
Currency
Section 2: Distribution Amounts per Financial Product
Gross Distribution
Gross Taxable Amount
Total Cash Distribution
Excluded Amount (applicable to listed PIEs)
Supplementary Distribution Amount
If fully or partially imputed, please state
im
putation rate as % applied
Imputation tax credits per financial product
Resident Withholding Tax per financial
product
N/A
Authority for this Announcement
Name of person authorised to make this
announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
tim@mainfreight.com
26/05/2021
Tim Williams, Chief Financial Officer
Tim Williams
+64 9 259 5510
$0.17500000
$0.03125000
Section 4: Distribution Re-investment Plan (not applicable)
Is the Distribution imputed?
Fully imputed
Partial imputation
No imputation
28.0%
$0.62500000
$0.62500000
$0.45000000
$0.07941176
Section 3: Imputation Credits and Resident Withholding Tax
9/07/2021
8/07/2021
16/07/2021
$45,314,347
Retained Earnings
NZD
Mainfreight Limited
Ordinary Shares
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Type of distribution
(Please mark with an X in the
relevant box/es)

---

MAINFREIGHT
 
LIMITED
FULL
 
YEAR
 
RESULT
TO
 
31
 
MARCH
 
2021

Page
 
2
Result
 
Summary
Revenue
 
up
 
14.5%
 
to
 
$3.54
 
billion
An
 
increase
 
of
 
$448.44
 
million
Offshore
 
revenues
 
are
 
now
 
$2.70
 
billion:
 
76.1%
Profit
 
before
 
tax
 
is
 
$262.41
 
million
Increase
 
of
 
27.2%
 
or
 
$56.15
 
million
Offshore
 
PBT
 
now
 
$164.59
 
million:
 
62.7%
Net
 
profit
 
before
 
abnormals up
 
27.1%
 
to
 
$188.11
 
million
No
 
abnormals in
 
F21
 
vs
 
$11.23
 
million
 
abnormal
 
gain
 
in
 
F20
REVENUE
PBT
NET
 
PROFIT
FX
 
effects
 
are
 
immaterial
 
in
 
the
 
2021
 
financial
 
year

Page
 
3
Full
 
Year
 
2021
 
Overview

Revenue
 
and
 
PBT
 
improvements
 
across
 
all
 
five
 
regions

Pleasing
 
Australian
 
performance

Air
 
&
 
Ocean
 
revenues
 
artificially
 
inflated
 
by
 
surging
 
international
 
freight
 
rates
 
/
 
charters

Targeted
 
customer
 
industries
 
have
 
assisted:
Food,
 
Beverage,
 
DIY,
 
Medical/Healthcare,
 
Retail,
 
Perishables

Page
 
4
Dividend
Directors
 
have
 
approved
 
a
 
final
 
dividend
 
of
 
45.0
 
cents
 
per
 
share
Books
 
close
 
9July
 
2021;
 
payment
 
on
 
16
 
July
 
2021
Full
 
dividend
 
for
 
year
 
75.0
 
cents
 
per
 
share,
 
increase
 
of
 
16.0
 
cents
or
 
27.1%
 
over
 
the
 
previous
 
year
DIVIDEND

Page
 
5
Discretionary
 
Bonus
Payable
 
at
 
Board’s
 
discretion
 
to
 
qualifying
 
team
 
members
Up
 
60.8%
 
from
 
$27.29
 
million
 
last
 
year,
 
to
 
$43.88
 
million
In
 
addition,
 
increased
 
Christmas
 
bonus
 
paid
 
in
 
December
 
2020;
 
$11.02
 
million
 
up
 
from
 
$5.35
 
million
BONUS

Page
 
6
Capital
 
Management
NZ$
 
MILLION
THIS
 
YEAR
LAST
 
YEAR
Operating
 
cash
 
flow
376.28
300.80

Net
 
capital
 
expenditure
 
totalled
 
$118.55
 
million
 
for
 
the
 
period,
 
including

Estimated
 
F22
 
property
 
capex
$156
 
million

Expectations
 
for
 
property
 
capex
 
F23
$182
 
million

Land
 
&
 
Buildings
$58.93
 
million

Racking
 
&
 
Fit
‐
out
 
Costs
$15.59
 
million

Plant
 
&
 
Equipment
$26.00
 
million

Information
 
Technology
$18.03
 
million

Page
 
7
Net
 
debt
 
reduction
 
of
 
$55.17
 
million
 
to
 
$102.21
 
million
Gearing
 
ratio
 
improved
 
to
 
8.4%
 
from
 
14.0%
Debt
 
facilities
$477
 
million
Undrawn
$269
 
million
Capital
 
Management
 
continued
NET DEBT

Page
 
8
Full
 
Year
 
Analysis:
 
Revenue
 
$000
THIS
 
YEAR
LAST
 
YEAR
VARIANCE
New Zealand:
 
NZ$
845,554
752,913
12.3%

Australia:
 
AU$
877,156
756,797
15.9%

Europe: EU€
427,522
401,390
6.5%

Americas: US$
576,909
493,286
17.0%

Asia: US$
104,284
61,364
69.9%

Total
 
Group:
 
NZ$
3,543,838
3,095,394
14.5%

Estimated
 
impact
 
of
 
$180
 
million
 
from
 
inflated
 
shipping,
 
airline
 
and
 
fuel
 
rate
 
fluctuations

Page
 
9
Full
 
Year
 
Analysis:
 
Profit
 
before
 
Tax
 
$000
THIS
 
YEAR
LAST
 
YEAR
VARIANCE
New Zealand:
 
NZ$
97,814
87,691
11.5%

Australia:
 
AU$
71,504
48,782
46.6%

Europe: EU€
22,351
18,113
23.4%

Americas: US$
25,923
19,992
29.7%

Asia: US$
7,047
3,390
107.9%

Total
 
Group:
 
NZ$
262,407
206,253
27.2%


Page
 
10
Prior
 
Period
 
Comparisons
Positive/(Negative)Variances
Revenue
Profit Before
 
Tax
1H
 
21 2H
 
21 FY
 
21 1H
 
21 2H
 
21 FY
 
21
New Zealand
4.5% 19.6% 12.3%
8.3% 13.7% 11.5%
Australia
11.9% 19.8% 15.9%
104.3% 21.2% 46.6%
Europe
0.0% 10.0%
6.5%
(12.1)% 49.6% 23.4%
Americas
1.6% 25.7% 17.0%
(13.0)% 64.5% 29.7%
Asia
19.3% 129.5% 69.9%
59.2% 211.6% 107.9%
Total
 
Group
7.2% 21.3% 14.5% 23.4% 29.8% 27.2%

Page
 
11
Product
 
Performance
 
NZ$000
THIS
 
YEAR LAST
 
YEAR
VARIANCE
Transport
Revenue
1,610,741 1,550,299
3.9%

Profit
 
before
 
tax
140,527
119,682
17.4%

Warehousing Revenue
452,116
409,749
10.3%

Profit
 
before
 
tax
42,207
34,317
23.0%

Air
 
&
 
Ocean
Revenue
1,480,981 1,135,346
30.4%

Profit
 
before
 
tax
79,673
52,254
27.2%


Page
 
12
BRANCHES:
COUNTRIES:
New Zealand, Australia, USA, Canada, Chile, Mexico, China, Hong Kong, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, Vietnam, Netherlands, Belgium, France, Germany,Italy, Poland, Romania, Russia, Sp
ain, Ukraine, United Kingdom
297
26

Page
 
13
Customer
 
Trading

Top
 
500
 
Customers:
 
Use
 
of
 
Mainfreight
 
Divisions
 
(Transport/Warehousing/Air
 
&
 
Ocean)

Top
 
500
 
Customers
 
using
 
us
 
in
 
two
 
or
 
more
 
regions
 
increased
 
to
 
60%
 
from
 
58%

Top
 
500
 
Customers
 
=
 
56%
 
of
 
total
 
revenue
 
(last
 
year
 
57%)

130
 
new
 
&
 
existing
 
customers
 
have
 
entered
 
Top
 
500
 
in
 
last
 
12
 
months
28%
41%
31%
2020
29%
39%
32%
2021
1
 
Division
1
 
Division
2 Divisions
2 Divisions
3 Divisions
3
 
Divisions

Page
 
14
New
 
Zealand

Strong
 
result,
 
particularly
 
in
 
light
 
of
 
40%
 
revenue
 
decline
 
in
 
April
 
for
 
Transport

Transport
 
capacity
 
under
 
pressure,
 
especially
 
pre
‐
Christmas

New
 
sites
 
opened
 
in
 
Tauranga,
 
Levin
 
and
 
Gore

Construction
 
underway
 
for
 
West
 
Auckland,
 
Kaitaia,
 
Whangarei;
 
land
 
purchases/leases
 
underway
 
for
 
Auckland,
 
Nelson,
 
Hastings,
 
Cambridge,
 
Wellington

Warehousing
 
sites
 
being
 
developed
 
for
 
increased
 
demand;
 
owned
 
and
 
leased
Revenue
$846m
     
12.3%
Profit
 
before
 
Tax
$98m 11.5%

Page
 
15
New
 
Zealand

Air
 
&
 
Ocean
 
demand
 
at
 
highest
 
levels
 
experienced

Air
 
and
 
sea
 
charters
 
completed

Capacity
 
constraints
 
in
 
global
 
supply
 
chain

Air
 
and
 
sea
 
freight
 
rate
 
levels
 
inflating
 
revenues

Expect
 
congestion
 
and
 
rate
 
level
 
inflation
 
to
 
continue
 
for
 
an
 
indefinite
 
period
 
of
 
time

Page
 
16
Australia

A
 
very
 
pleasing
 
performance
 
across
 
all
 
3
 
divisions

Extended
 
regional
 
Transport
 
network
 
assisting

Five
 
more
 
regional
 
centres to
 
open
 
in
 
next
 
12
 
months

Building
 
consents
 
underway
 
for
 
South
 
Melbourne
 
and
 
Adelaide

Warehousing
 
footprint
 
increasing
 
by
 
a
 
further
 
40,000m
2
to
 
meet
 
demand
 
and
 
growth
 
(by
 
end
 
July
 
2021)

2
 
new
 
warehouses
 
await
 
completion:
 
South
 
Melbourne
 
(owned)
 
and
 
Sydney
 
(leased),
 
totaling
 
80,000m
2
Revenue
AU$877m
     
15.9%
Profit
 
before
 
Tax
  
$72m 46.6%

Page
 
17
Australia

Air
 
&
 
Ocean
 
growth
 
mirrors
 
that
 
in
 
other
 
areas
 
of
 
our
 
network

Good
 
focus
 
on
 
air
 
freight
 
capability
 
and
 
LCL
 
freight
 
growth

Space
 
constraints
 
and
 
freight
 
rate
 
inflation
 
as
 
with
 
the
 
balance
 
of
 
our
 
Air
 
&
 
Ocean
 
network

Page
 
18
Europe

Despite
 
ongoing
 
lockdowns,
 
a
 
satisfactory
 
overall
 
result

Transport
 
network
 
improving
 
revenue
 
and
 
PBT,
 
particularly
 
2
nd
half

Attracting
 
new
 
customers;
 
focused
 
on
 
core
 
customer
 
verticals

Better
 
line
‐
haul/PUD
 
management;
 
direct
 
line
‐
hauls
 
and
 
building
 
network
 
intensity

Air
 
&
 
Ocean,
 
stronger
 
second
 
half

Branches
 
opened
 
in
 
UK
 
and
 
Spain
 
last
 
year
 
are
 
profitable

Space
 
constraints
 
and
 
rate
 
inflation
 
as
 
per
 
balance
 
of
 
our
 
Air
 
&
 
Ocean
 
network
Revenue
EU€428m
     
6.5%
Profit
 
before
 
Tax
EU€22m
     
23.4%

Page
 
19
Europe

Warehousing
 
saw
 
inventories
 
decline
 
in
 
first
 
6
 
months,
 
recovery
 
in
 
second
 
6
 
months

Footprint
 
now
 
over
 
330,000m2

Increasing
 
usage
 
of
 
freight
 
network
 
for
 
warehousing
 
customers;
 
now
 
57%,
 
up
 
from
 
42%

Page
 
20
The
 
Americas
Revenue
US$577m
     
17.0%
Profit
 
before
 
Tax
  
US$26m 29.7%

Strong
 
Air
 
&
 
Ocean
 
performance
 
assisted
 
result

Separation
 
of
 
larger
 
branches
 
into
 
dedicated
 
Air
 
and
 
Ocean
 
branches
 
created
 
stronger
 
air
 
freight
 
skill
‐
set
 
and
 
bolstered
 
growth

Trans
‐
Pacific
 
shipping
 
capacity
 
extremely
 
constrained

Warehousing
 
capacity
 
and
 
utilization
 
has
 
increased

Now
 
121,000m
2
 
up
 
35,000
 
m
2
in
 
the
 
past
 
year

Three
 
new
 
facilities
 
are
 
now
 
required
 
for
 
newly
 
confirmed
 
customers,
 
including
 
45,000m
2
in
 
Dallas

Page
 
21
The
 
Americas

Transport
 
struggled
 
with
 
ongoing
 
lockdowns
 
restricting
 
freight
 
movement;
 
more
 
home
 
deliveries
 
vs
 
business
 
deliveries

Require
 
a
 
greater
 
focus
 
on
 
“right”
 
customer
 
industries

New
 
direct
 
line
‐
hauls
 
operating

Over
 
500
 
per
 
week
 
post
‐
year
 
end

Less
 
volume
 
with
 
third
‐
party
 
operators

CaroTrans
 
saw
 
improved
 
results
 
in
 
the
 
2nd
 
half

More
 
part
 
loads
 
(LCL)
 
as
 
space
 
restrictions
 
increased

Agency
 
network
 
changes
 
for
 
South
 
America,
 
Italy
 
and
 
Spain
 
improved
 
freight
 
volumes

Page
 
22
Asia

Improved
 
market
 
share
 
and
 
involved
 
in
 
numerous
 
air
 
and
 
sea
 
charter
 
activities

Revenue
 
increased
 
accordingly,
 
but
 
also
 
influenced
 
by
 
air
 
and
 
sea
 
freight
 
rate
 
inflation

Improved
 
Southeast
 
Asian
 
branch
 
performance

Imports
 
of
 
interest,
 
to
 
assist
 
trade
‐
lane
 
balance
 
and
 
opportunity
 
to
 
launch
 
warehouse
 
capability,
 
particularly
 
in
 
chosen
 
customer
 
industries
Revenue
US$104m
     
69.9%
Profit
 
before
 
Tax
US$7m 107.9%

Page
 
23
Land
 
&
 
Building
 
Development
 
Update:
 
F21
NZ$
 
MILLION
Total
 
Land
 
&
 
Buildings
 
Expenditure
 
– 2021
74.5

Land,
 
Auckland
23.5

Freight
 
facility,
 
Tauranga
13.3
 

Land
 
and
 
building,
 
Levin
5.5

Land
 
and
 
building,
 
Gore
3.4

Additional
 
developments,
 
New
 
Zealand
1.5

Warehouse
 
facility,
 
Epping,
 
Melbourne
10.9

Additional
 
developments,
 
Australia
0.8

Racking
 
&
 
Fit
‐
out
 
Costs,
 
Group
15.6

Page
 
24
Future
 
Capital
 
Expenditure
 
Update:
 
F22
‐
F23
NZ$
 
MILLION
F22
Planned
 
Capital
 
Expenditure
$200.2

Freight
 
facility,
 
Hobsonville
28.0

CFS/Container
 
Terminal
 
Auckland 10.0

Freight
 
facility,
 
Spring
 
Creek
6.0

Land,
 
Hastings
8.5

Additional
 
developments,
 
NZ
24.5

Warehouse/Transport,
 
Adelaide 18.1

Warehouse/Transport,
 
Dandenong 34.0

Racking
 
&
 
Fit
‐
out
 
costs,
 
Group 26.1

Non
‐
property
 
capex
45.0
NZ$
 
MILLION
F23
Planned
 
Capital
 
Expenditure
$227.2

Freight
 
facility,
 
Auckland
22.0

Land,
 
Nelson
13.6

Freight
 
facility,
 
Hastings
 
14.0

Freight
 
facility,
 
Spring
 
Creek
6.0
 

Additional
 
developments,
 
NZ
11.3

Warehouse/Transport,
 
Adelaide 18.2

Warehouse/Transport,
 
Dandenong 68.2

Racking
 
&
 
Fit
‐
out
 
costs,
 
Group 28.9

Non
‐
property
 
capex
45.0

Page
 
25
Sustainability
 
(calendar
 
years
 
2020
 
and
 
2019)
CO
2
EMISSIONS
 
SOURCE
2020
2019 REDUCTION
Road
402,774
406,087
0.8%
Rail
7,038
7,159
1.7%
Air
706,240
843,399
16.3%
Sea
261,715
367,591
28.8%
Indirect Freight
 
Emissions
1,377,767
97.59%
 
of
 
total
1,624,236
97.68%
 
of
 
total
15.2%
Direct Operational Emissions
34,000
38,631
12.0%
Total
 
Emissions
1,411,767
1,662,867
15.1%
2020:
 
may
 
not
 
reflect
 
a
 
typical
 
year
 
of
 
trading
 
–Covid
‐
19
 
related

Page
 
26
Group
 
Outlook

International
 
supply
 
chain
 
congestion
 
expected
 
for
 
some
 
time
 
to
 
come

Assisting
 
our
 
customers
 
through
 
congestion
 
issues
 
is
 
our
 
highest
 
priority

Targeting
 
specific
 
customer
 
industries
 
is
 
a
 
key
 
component
 
of
 
result
 
and
 
expect
 
to
 
develop
 
further
 
–
adding
 
Perishables
 
and
 
Pharmaceuticals

April
 
and
 
May
 
trading
 
continuing
 
the
 
trend
 
of
 
the
 
last
 
6
 
months

Optimistic
 
for
 
year
 
ahead

Satisfactory
 
market
 
share
 
gains
 
in
 
all
 
regions

Page
 
27
Financial
 
Calendar
 
F22
DATE
Annual
 
Meeting
 
of
 
Shareholders
29
 
July
 
2021
F22
 
–6
 
months
 
ended
 
30
 
September
 
2021
11 November
 
2021
F22
 
–12
 
months
 
ended
 
31
 
March
 
2022
26
 
May
 
2022

Page
 
28
That’s
 
all
 
folks!