Mainfreight Limited – Trading Update 9 February 2023

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
NZX MARKET RELEASE


9 February 2023


MAINFREIGHT LIMITED – TRADING UPDATE


Mainfreight Limited (NZX: MFT) is pleased to provide this trading update in the
interests of keeping the market informed and an insight as freight and logistics markets
adapt and change from the congested peaks and Covid-19 outbreaks over the prior
period.

Financial Trading Update

Today’s information covers 43 weeks of trading and is based on 1 April 2022 to
31 December 2022 monthly financial statements, plus weekly financials for January
2023:

This Year Last Year

This Year Last Year


Revenue* Revenue* Var

PBT PBT Var
Segmental by Region

$000 $000 %

$000 $000 %

New Zealand NZ$ 1,071,176 902,081 19% 128,851 103,217 25%
Australia AU$ 1,175,489 939,573 25% 116,942 86,640 35%
Americas US$ 847,025 841,078 1% 83,739 74,230 13%
Europe EU€ 528,680 451,514 17% 36,313 22,432 62%
Asia US$ 137,546 203,314 -32% 23,517 24,035 -2%


Total Mainfreight Group NZ$ 4,824,274 4,134,916 17% 490,208 372,019 32%



This Year Last Year

This Year Last Year


Revenue* Revenue* Var

PBT PBT Var
Segmental by Product

$000 $000 %

$000 $000 %

Transport NZ$ 1,855,512 1,536,806 21% 182,768 141,652 29%
Warehousing NZ$ 613,408 465,896 32% 54,537 43,700 25%
Air & Ocean NZ$ 2,355,353 2,132,215 10% 252,904 186,667 35%


Total Mainfreight Group NZ$ 4,824,274 4,134,917 17% 490,208 372,019 32%
* Excludes Inter-company revenue

Mainfreight Limited – Trading Update
9 February 2023



- 2 -
Commentary
We remain satisfied with the level of improvement year-to-date. However,
general trading conditions late December and into January have been more
subdued, particularly across our USA and Asian operations. The combination
of lower international sea freight and airfreight volumes and lower trading rates
are reflected in reduced revenue and profit before tax levels for both the USA
and Asia.

In the past month, domestic transportation in the USA has been less than
satisfactory.

Trading in New Zealand and Europe has been in line with the prior period.
Australia has continued with increased profit and revenue performance.

Regional Overview

New Zealand
Overall New Zealand trading was in line with the year prior. Domestic Transport
volumes were subdued through Christmas when compared to the highs of last
year. Profit performance was further impacted by the increased costs of new
facilities in West Auckland and Whakatane. Warehousing activity was
consistent. Air & Ocean performance continued its improvement in both
Revenue and Profit before Tax.

Australia
Our best performing region in these past 17 weeks since our September half
year report and second only to New Zealand year-to-date. Trading across all
three divisions has been very satisfactory. Transport volumes and profitability
are much improved. Air & Ocean performance remains strong with continuing
good volumes across all trade lanes. Warehousing activity and profit before
tax was satisfactory. New warehousing facilities in Sydney are expected to be
completed mid-2023. Occupation of our new Dandenong (Victoria) facility for
Transport and Warehousing was completed during January.

Mainfreight Limited – Trading Update
9 February 2023



- 3 -

Asia
Lower than expected freight volumes and freight rate levels ex China post our
half year has seen a disappointing performance from our Asia operations in
these past 17 weeks. Albeit, year-to-date performance is now in line with the
prior period. Freight rate reductions have stabilised at current levels and the re-
opening of China post covid restrictions has seen forward bookings improve.
Southeast Asia development continues satisfactorily, with our India
commencement plans on track for an opening later this year.

Europe
Steady trading across all three divisions has seen a satisfactory year-to-date
result, including trading post our half year result. Transport volumes have
continued to improve, despite deteriorating economic conditions across Europe.
Warehousing has continued to provide improved results. Air & Ocean
volumes have been acceptable with just a small deterioration in volume and rate
levels over the past three weeks. Planning continues for new cross-docks in
the Netherlands and new Warehousing facilities to accommodate the
increasing warehousing volumes of our customers.

The Americas
Our poorest performing region post our half year result. However, performance
year-to-date continues to exceed that of the year prior. Freight rate reduction
and lower than expected imports has impacted our Air & Ocean results.
Exports continue to be satisfactory. Import volumes are not expected to improve
until China’s re-opening produces more consistent volumes. Warehousing
trading is satisfactory. Transport has seen a reduction in profitability post
December. Management of this performance a key priority as we progress
towards new cross-docks to improve freight distribution.

Mainfreight Limited – Trading Update
9 February 2023



- 4 -
To Close

A satisfactory year-to-date result, but a less than satisfactory contribution from
the USA and Asia in the past 17 weeks post our half year.

Freight rate reviews are in place across our domestic operations in all locations
to address inflationary cost pressures and we continue to find new customer
opportunities in each region. Organic growth amidst our network expansion
remains our priority.

We expect our financial year-end result to be satisfactory.

Our full year financial results to 31 March 2023 will be released to the market
on Thursday 25 May 2023.


Don Braid
Group Managing Director


Mainfreight Limited
2 Railway Lane, Otahuhu, Auckland 1062
PO Box 14038, Panmure, Auckland 1741
Email: don@mainfreight.com