Mainfreight Full Year Results to 31 March 2023

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 2023
Previous Reporting Period12 months to 31 March 2022
CurrencyNZD
Amount (000s)Percentage Change
Revenue from Continuing Operations$5,675,7098.8%
Total Revenue$5,675,7098.8%
Net Profit/(Loss) from Continuing Operations$426,47620.0%
Total Net Profit/(Loss)$426,47620.0%
Interim/Final Dividend
Amount per Quoted Equity Security$0.87000000
Imputed Amount per Quoted Equity Security$0.15352941
Record Date13/07/2023
Dividend Payment Date21/07/2023
Current Period
Prior Comparable Period
Net tangible assets per Quoted Equity Security
$14.2252$11.4616
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
25/05/2023
Unaudited financial statements accompany this announcement.
Authority for this Announcement
Tim Williams, Chief Financial Officer
Tim Williams
+64 9 259 5510
tim@mainfreight.com

MAINFREIGHT LIMITED
Preliminary Full Year Announcement
For the Full Year ended 31 March 2023
Income Statement
For the Full Year ended 31 March 2023
Year endedYear ended
31 March 202331 March 2022
Notesunauditedunaudited
$NZ000$NZ000
Total Revenue5,675,709 5,218,259
Transport Costs(3,444,287) (3,356,790)
Labour Expenses(1,023,106) (886,614)
Other Expenses(357,288) (263,818)
Earnings before Finance Costs, Tax, Depreciation and Amortisation
851,028 711,037
Depreciation of Right to Use Assets(155,359) (127,289)
Finance Costs Relating to Lease Liabilities(17,326) (15,731)
Other Depreciation & Amortisation Expenses(83,630) (73,324)
Other Finance Costs(7,315) (5,312)
Profit before Taxation for the Year587,398 489,381
Income Tax Expense(160,922) (133,984)
Net Profit for the Year426,476 355,397
Earnings per share
Basic and diluted earnings (cents per share)423.52352.93
Net Profit for the Period426,476355,397
Other Comprehensive Income for the Period, Net of Tax
Other comprehensive income to be reclassified to profit/(loss) in
subsequent periods
Exchange Differences on Translation of Foreign Operations41,514 (7,412)
Income Tax Effect1,420 (1,047)
Net Other Comprehensive income to be reclassified to profit/(loss)
in subsequent periods
42,934 (8,459)
Other comprehensive income not to be reclassified to profit/(loss) in
subsequent periods
Revaluation of Land including Foreign Exchange Movements1,625 82,659
Income Tax effect(411) (15,016)
Defined Benefit Pension Provision157 455
Income Tax effect(39) (114)
Net Other Comprehensive income not to be reclassified to
profit/(loss) in subsequent periods
1,332 67,984
Other Comprehensive Income for the Period, Net of Tax44,266 59,525
Total Comprehensive Income for the Period, Net of Tax470,742 414,922
The accompanying notes form part of these financial statements
Preliminary full year report on consolidated results (including the results for the previous corresponding full year).
The Listed Issuer has a formally constituted Audit Committee of the Board of Directors.
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.
For the Full Year ended 31 March 2023
Statement of Comprehensive Income

MAINFREIGHT LIMITED
Balance Sheet
As at 31 March 2023
31 March 202331 March 202231 March 202331 March 2022
unauditedauditedunauditedaudited
$NZ000$NZ000$NZ000$NZ000
Current AssetsCurrent Liabilities
Bank341,991 202,258 Trade Creditors & Accruals492,966 562,004
Trade Debtors619,470 805,568 Employee Entitlements147,311 152,305
Income Tax Receivable22,411 275 Provision for Taxation60,979 56,609
Properties Held for Sale7,748 - Lease Liability for Right of Use Assets155,626 121,136
Other Debtors66,295 48,563 Asset Finance Loans9,258 8,841
1,057,915 1,056,664 866,140 900,895
Non-current Tangible AssetsNon-current Liabilities
Property1,068,880 925,190 Bank Term Loan186,788 176,005
Plant & Equipment276,983 185,020 Employee Entitlements4,085 2,519
Right of Use Assets744,914 585,970 Lease Liability for Right of Use Assets625,478 490,099
Deferred Tax Liability10,613 10,684
Asset Finance Loans23,134 18,480
2,090,777 1,696,180 850,098 697,787
Total Liabilities1,716,238 1,598,682
Non-current Intangible & Deferred Tax AssetsShareholders' Equity
Software54,638 52,081 Share Capital85,821 85,821
Goodwill218,894 204,498 Retained Earnings1,405,355 1,152,081
Other Intangible Assets1,130 1,288 Revaluation Reserve209,951 208,737
Deferred Tax Asset19,693 17,240 Foreign Currency Translation Reserve25,815 (17,119)
Defined Benefit Pension Reserve(133) (251)
294,355 275,107 Total Equity1,726,809 1,429,269
Total Assets3,443,047 3,027,951 Total Liabilities & Equity3,443,047 3,027,951
The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED
Statement of Changes in Equity
For the Full Year ended 31 March 2023
ForeignDefined
AssetCurrencyBenefit
OrdinaryRevaluationTranslationPensionRetainedTotal
SharesReserveReserveReserveEarningsEquity
$NZ000$NZ000$NZ000$NZ000$NZ000$NZ000
Twelve Months to 31 March 2023 (unaudited)
Balance at 1 April 202285,821 208,737 (17,119) (251) 1,152,081 1,429,269
Profit for the Period- - - - 426,476 426,476
Other Comprehensive Income- 1,214 42,934 118 - 44,266
Total Comprehensive Income for the Period- 1,214 42,934 118 426,476 470,742
Transactions with Owners in their Capacity
as Owners
Supplementary Dividends- - - - (6,964) (6,964)
Dividends Paid- - - - (173,202) (173,202)
Foreign Investor Tax Credit- - - - 6,964 6,964
Balance at 31 March 202385,821 209,951 25,815 (133) 1,405,355 1,726,809
Twelve Months to 31 March 2022 (audited)
Balance at 1 April 202185,821 141,094 (8,660) (592) 897,383 1,115,046
Profit for the Period- - - - 355,397 355,397
Other Comprehensive Income- 67,643 (8,459) 341 - 59,525
Total Comprehensive Income for the Period- 67,643 (8,459) 341 355,397 414,922
Transactions with Owners in their Capacity
as Owners
Supplementary Dividends- - - - (3,674) (3,674)
Dividends Paid- - - - (100,699) (100,699)
Foreign Investor Tax Credit- - - - 3,674 3,674
Balance at 31 March 202285,821 208,737 (17,119) (251) 1,152,081 1,429,269
The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED
Cash Flow Statement
For the Full Year ended 31 March 2023
Year endedYear ended
31 March 202231 March 2021
unauditedaudited
$NZ000$NZ000
Cash Flows from Operating Activities
Receipts from Customers5,894,809 4,930,932
Interest Received2,767 341
Payments to Suppliers and Team Members(4,931,112) (4,289,186)
Finance Charge on NZ IFRS 16 Leases(17,326) (15,731)
Interest Paid(10,082) (5,312)
Income Taxes Paid(181,851) (117,247)
Net Cash Flows from Operating Activities757,205 503,797
Cash Flows from Investing Activities
Proceeds from Sale of Property, Plant & Equipment9,843 3,724
Proceeds from Sale of Software132 66
Purchase of Property, Plant & Equipment(303,491) (175,908)
Purchase of Software(20,396) (16,962)
Repayments from Team Members3 -
Net Cash Flows from Investing Activities(313,909) (189,080)
Cash Flows from Financing Activities
Proceeds of Long Term Loans197,925 74,792
Dividend Paid to Shareholders(173,202) (100,699)
Repayment of Loans(197,348) (104,724)
Lease Payments NZ IFRS 16 (146,734) (119,336)
Net Cash Flows from Financing Activities(319,359) (249,967)
Net Increase / (Decrease) in Cash and Cash Equivalents123,937 64,750
Net Foreign Exchange Differences15,796 (2,047)
Cash and Cash Equivalents at Beginning of Period202,258 139,555
Cash and Cash Equivalents at End of Period341,991 202,258
Comprised:
Bank and Short Term Deposits341,991 202,258
Bank Overdraft- -
341,991 202,258
The accompanying notes form part of these financial statements

MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Full Year ended 31 March 2023
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 2023 was 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).
2Accounting Policies
Accounting policies remain consistent with the prior year ended 31 March 2022 financial statements.
3Required NZX DisclosuresParent
Year endedYear ended
31 March 202331 March 2022
unauditedaudited
SharesShares
Movements in Ordinary Shares on Issue
Closing balance100,698,548 100,698,548
Average balance during the period100,698,548 100,698,548
$NZ000$NZ000
Net Tangible Assets
Net Tangible Assets1,432,454 1,154,162
Net Tangible Assets per Security (cents per share)1,422.52 1,146.16
Dividends Paid and Proposed
Recognised Amounts
Declared and Paid during the Period to Parent Shareholders
Final Fully Imputed Dividend for 2022: 87.0 cents (2021: 45.0 cents)87,608 45,314
Interim Fully Imputed Dividend for 2023: 85.0 cents (2022: 55.0 cents)85,594 55,385
173,202 100,699
Unrecognised Amounts
Final Fully Imputed Dividend for 2023: 87.0 cents (2022: 87.0 cents)87,608 87,608
After the balance date, the above unrecognised dividends were approved by Directors' resolution dated 24 May 2023
4Annual Report and Annual Meeting
The annual report is expected to be available on 27 June 2023.
The Annual Meeting is to be held at 4.00pm on Thursday 28 July 2023; venue to be advised.

MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Full Year ended 31 March 2023
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 2023 and 31 March 2022.
TheInter-
New ZealandAustraliaAmericasAsiaEuropeSegmentTotal
$NZ000$NZ000$NZ000$NZ000$NZ000$NZ000$NZ000
Year to 31 March 2023 (unaudited)
Operating Revenue
- Sales to Customers outside the Group1,284,860 1,555,064 1,538,575 244,885 1,052,325 - 5,675,709
- Intersegment Sales21,898 60,450 130,382 173,346 85,936 (472,012) -
Total Revenue1,306,758 1,615,514 1,668,957 418,231 1,138,261 (472,012) 5,675,709
PBT169,421 150,094 143,048 46,644 78,191 - 587,398
Net Interest Expense6,826 8,732 5,489 (6) 3,600 - 24,641
Depreciation & Amortisation63,271 58,272 50,988 5,128 61,330 - 238,989
Capital Expenditure101,795 137,732 41,830 2,074 40,456 - 323,887
Trade Debtors135,829 170,630 149,925 29,937 186,931 (53,782) 619,470
Non-current Assets844,224 688,847 382,986 20,721 448,354 - 2,385,132
Total Assets1,075,382 922,838 668,477 131,024 699,108 (53,782) 3,443,047
Total Liabilities409,252 454,866 409,898 71,963 424,041 (53,782) 1,716,238
Year to 31 March 2022 (audited)
Operating Revenue
- Sales to Customers outside the Group1,130,199 1,246,199 1,563,240 331,480 947,141 - 5,218,259
- Intersegment Sales14,455 43,509 78,267 398,875 66,062 (601,168) -
Total Revenue1,144,654 1,289,708 1,641,507 730,355 1,013,203 (601,168) 5,218,259
PBT136,479 114,007 144,685 41,401 52,809 - 489,381
Net Interest Expense6,578 6,273 4,999 132 2,720 - 20,702
Depreciation & Amortisation55,083 50,462 34,334 3,346 57,388 - 200,613
Capital Expenditure80,445 64,071 19,042 1,737 27,574 - 192,869
Trade Debtors141,749 197,252 286,019 68,461 178,275 (66,188) 805,568
Non-current Assets752,569 543,880 297,705 18,649 358,484 - 1,971,287
Total Assets920,087 777,168 650,161 160,758 585,965 (66,188) 3,027,951
Total Liabilities369,475 430,063 429,288 93,623 342,421 (66,188) 1,598,682

MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Full Year ended 31 March 2023
5Segmental Reporting - continued
The
New ZealandAustraliaAmericasAsiaEuropeTotal
$NZ000$AU000$US000$US000€EU000$NZ000
Revenue Local Currency
Year Ended March 20231,284,860 1,417,285 959,917 152,784 630,658 5,675,709
Year Ended March 20221,130,199 1,175,041 1,089,422 231,008 567,906 5,218,259
Growth13.7%20.6%(11.9%)(33.9%)11.0%8.8%
Excluding FX Impact4.2%
PBT Local Currency
Year Ended March 2023169,421 136,796 89,248 29,101 46,860 587,398
Year Ended March 2022136,479 107,497 100,831 28,852 31,664 489,381
Growth24.1%27.3%(11.5%)0.9%48.0%20.0%
Excluding FX Impact14.9%
PBT to Revenue Margin - ROR
Year Ended March 202313.2%9.7%9.3%19.0%7.4%10.3%
Year Ended March 202212.1%9.1%9.3%12.5%5.6%9.4%
Division Segments
The following table represents revenue and PBT in respect of the three main types of services for the years ended
31 March 2023 and 31 March 2022.
Domestic
TransportWarehousingAir & OceanTotal
$NZ000$NZ000$NZ000$NZ000
Year Ended 31 March 2023
Revenue 2,242,769 750,179 2,682,761 5,675,709
PBT228,498 65,374 293,526 587,398
Year Ended 31 March 2022
Revenue 1,914,903 583,821 2,719,535 5,218,259
PBT183,861 55,262 250,258 489,381
31 March 202331 March 2022
unauditedaudited
$NZ000$NZ000
Reconciliation between non-GAAP and the Income Statement
Profit before Taxation for the Year587,398 489,381
Finance Costs Relating to Lease Liabilities17,326 15,731
Other Net Finance Costs7,315 4,971
EBITA612,039 510,083
Depreciation of Right of Use Assets155,359 127,289
Other Depreciation and Amortisation Expenses83,630 73,324
EBITDA (Adjusted)851,028 710,696
EBITDA (adjusted) is defined as earnings before net interest expense, tax, depreciation, amortisation, 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.

---

M A I N F R E I G H T L I M I T E D

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 2023 (Unaudited)

Commentary
Mainfreight is pleased to confirm our full-year financial results to 31 March 2023; a
satisfactory result driven by a strong first half of the year. Trading during our second half
fell short of expectations and against a very strong comparison period as international
freight congestion unravelled, which included a swift reduction in sea and airfreight rate
structures. This has provided much-needed space availability for our customers, but has
impacted our revenue growth. Our operations in the USA and Asia are the most affected.

Result Summary:
Revenue $5.68 billion Up $457 million or 8.8%
Profit before tax $587.4 million Up $98 million or 20.0%
Net profit $426.5 million Up $71 million or 20.0%

• Adjusted for foreign exchange impact, Group revenue is up 4.2%, and profit before
tax is up 14.9%.
• Second six-month period, whilst behind year prior, our third strongest six months ever.
Profit Before Tax NZ$286 million versus NZ$307 million.
• Profit Before Tax growth over the last three years:
2021 NZ$262 million; 2022 NZ$489 million; 2023 NZ$587 million.
• Operating cash flow improved from $504 million to $757 million.
• A final dividend of 87.0 cents per share has been authorised by the Board of Directors,
payable on 21 July 2023.

- 2 -
Whist a satisfactory result, the performance in our second half of the year has seen freight
volumes deteriorate due to slowing economic conditions, declining inventory activity, and
less international supply chain congestion.

Inflationary pressures have also increased our cost to serve. Recovery of these
increased costs is underway via freight rate increases across all regions and stronger
overhead cost management.

International Freight Volume Analysis – FY23 v FY22
Full year
Total Air freight kilos down 8%
Total Sea freight TEUS down 7%
Custom Clearances down 3%

Whilst short-term freight demand has eased, we expect that normalised trading levels will
resume over time. We will continue with our expansion of network and investment in land
and buildings in pursuit of long-term growth.

Group Operating Cash Flows
Operating cash flows were $757.2 million, up from $503.8 million in the prior year,
reflecting increased profitability, satisfactory cash collection, and working capital benefits
because of shipping line rate reductions across the group.

Current debt facilities total $510 million, of which $323 million remain undrawn. Net funds
at 31 March 2023, was $122.8 million compared to net debt of $1.1 million last year.
Gearing ratios continued to improve, at (7.7%) compared to 0.1% for the prior year.

Net capital expenditure totalled $313.9 million, with expenditure for land and buildings
accounting for $163.1 million, warehousing racking and fit-out costs of $70.4 million, plant
and equipment of $60.2 million, and information technology of $20.2 million.

- 3 -
Expected capital expenditure through to the end of 2025 will total $676 million, of which
property, racking, and fit-out costs will be $556 million. This is allocated between regions
as:
NZ $192 million
Australia $176 million
Americas $ 97 million
Europe and Asia $ 91 million

An additional 36 properties are expected to be leased as we increase our Warehousing
footprint, increase our domestic freight network, and replace aging facilities. During this
current year, our branch network has increased by 26 from 305 to 331 and we have
opened in Jakarta, Indonesia, taking the number of countries we are in to 26.

Dividend
The Directors have approved a final dividend of 87.0 cents per share fully imputed at the
28% company tax rate. With the record date on 13 July 2023, payment will be made on
21 July 2023. This brings the full dividend for the year to 172.0 cents per share, an
increase of 21.1% over the prior year, and reflects this year’s improved trading results.

Discretionary Bonus
We remain committed to sharing our profits with those who have earned them. In line
with the profit achieved, our discretionary profit bonus is $79.9 million; a decrease of
15.2% from $94.2 million for the year prior. This decrease reflects the declining rates of
improvement across some of our branch networks, particularly during our second half.

Divisional Performance (figures in local currencies)

New Zealand (NZ$)
Revenue NZ$1.28 billion Up NZ$154.7 million or 13.7%
Profit Before Tax NZ$169.4 million Up NZ$32.9 million or 24.1%

Our New Zealand businesses have provided satisfactory sales and profitability growth
during a year of contrasting and, at times, frustrating fortunes. Our first half included the
ongoing supply chain congestion and higher volumes. As slowing economic conditions

- 4 -
prevailed, so did freight volume across the network. Ongoing severe weather events
provided a challenging environment for freight delivery. This included the sub-standard
Transport infrastructure, including the Cook Strait ferry connections between the North
and South islands.

Despite this, we have continued to intensify our Transport network, opening branches in
West of Auckland and in Whakatane. This continues with branches to open in
Cambridge, Waikato, and an inland container port operation in Auckland during the year.

We will also open our largest Warehouse for New Zealand (43,000 sqm) in South
Auckland to meet the requirements of our ongoing growth in Warehousing Logistics.
This will also allow us to exit three short-term overflow warehouses.

We continue to win market share across imports and exports in our Air & Ocean
operations despite the slowdown in global shipping and air volumes.


Australia (AU$)
Revenue AU$1.42 billion Up AU$242.2 million or 20.6%
Profit Before Tax AU$136.8 million Up AU$29.3 million or 27.3%

Our Australia team continue to find satisfactory growth and improved profitability. Gaining
market share as industry consolidation of the pallet transport segment is providing
opportunity. During the year, we completed three new purpose-built sites; Adelaide,
South Melbourne and Gold Coast, Queensland. These have increased our capacity for
further growth.

New Transport facilities were opened in Mackay, Orange, and Dubbo, increasing
delivery capability via our network to 88% Australia wide.

Warehousing operations have further expanded, offering our increasing range of
customers alternative sites across all states, excluding the Northern Territories.
Unfortunately, profit performance has declined because of higher fixed costs, reduced

- 5 -
utilisation, and poor performance/one off costs in our Epping, Melbourne site. It is our
expectation that profitability will improve as these new sites become fully utilised.

Air & Ocean revenues and volumes have declined in line with lower demand and less
international supply chain congestion. North America now features as our largest trade
lane, reducing our exposure to imports from China. Long-haul trade development,
particularly with Europe, is a priority for our Australia Air & Ocean business.


The Americas (US$)
Revenue US$959.9 million Down US$129.5 million or 11.9%
Profit Before Tax US$89.25 million Down US$11.6 million or 11.5%

Our poorest performing business, where a lack of customer depth and quickly slowing
economic conditions reduced revenue and profitability. These conditions have exposed
our weaknesses and lack of maturity in this market. We have a shortage of customers
across market verticals that provide regular daily freight volumes.

Our USA business has undergone several changes to better improve our ability to deliver
meaningful and long-term growth. This includes a re-organisation of our senior leadership
team, including their relocation to Chicago where they will be together in a central location
with quicker ease of access to our branch network.

Construction is planned and underway for two new Transport cross-docks in Dallas,
Texas and Chicago, Illinois. Land acquisition is under review for a second site in Chicago.

Our status has changed in our Transport business to LTL Motor Carrier from general
freight forwarder classification. This will help attract larger LTL freight customers.

A dedicated Air Freight facility has been completed in Los Angeles which includes chiller
and cold storage for our global Air Freight perishable business. Air and Sea freight
volumes have declined in line with the industry downturn, although trading remains higher
than pre-pandemic levels.

- 6 -
CaroTrans has continued to perform satisfactorily, increasing the amount of LCL
consolidation from the year prior.

We have consolidated our Warehouses in Dallas and Chicago to provide much needed
efficiency and increased utilisation.

Strong sales activities are underway to improve our customer verticals across all three
divisions. However, we would expect our recovery to take time.


Europe (Euro €)
Revenue €630.7 million Up €62.8 million or 11.0%
Profit Before Tax €46.9 million Up €15.2 million or 48.0%

This is our strongest financial performance in Europe to date, with good improvement
across all three business units.

We now have good momentum outside of the Netherlands, with Belgium improving
markedly. The Dutch business is now contributing 63% of European profits, down from
73% the year prior. Our network has also increased, totaling 52 branches in 10 countries.

New branches have opened for Transport in Rotterdam and Tilburg in the Netherlands,
Katowice and Poznan in Poland, and Lyon in France. We expect to make our first
property investment in the Netherlands, since acquiring the business in 2011. This will
provide land for a new cross-dock for our Transport business.

New Warehousing branches are expected for the Netherlands and the UK as well as
increasing the size of our Warehouse in Romania.

Air & Ocean development will see a new branch open in Munich to complement the
opening of Madrid and Verona this year.

Our exposure to the Air & Ocean market is less than our other regions, therefore the
reduction of international shipping and air volumes has had less of an impact on revenue

- 7 -
and profitability. Transport volumes and Warehousing activity have slowed albeit less
than our other regions.


Asia (US$)
Revenue US$152.8 million Down US$78.2 million or 33.9%
Profit Before Tax US$ 29.1 million Up US$ 0.2 million or 0.9%

A disappointing financial year-end for our Asian operations.

Our reliance on Transpacific freight volume from China to the USA is high and it is this
trade that has been heavily impacted by slowing freight demand. Ocean freight rates
during the previous year reached extraordinarily high levels overly inflating revenues.

Nevertheless, our margins have continued to improve, as we focus on LCL growth and
higher yielding cargo.

We have further expanded our network into Jakarta, Indonesia – our tenth country
location in the region. It is our expectation that our first Indian Air & Ocean branch will
open by August 2023. Whilst not expecting India to outpace China in manufacturing
capability, we do expect India to be an important contributor and significant addition for
our global network expansion.

Southeast Asia progress continues at a satisfactory level.

Warehousing has also begun its development with six locations now operational. Whilst
still small, we are now attracting Asian import customers into these facilities, via our Air
& Ocean network. As with elsewhere in our network, Warehousing compliments our
domestic and Air & Ocean products and will be a welcome addition in Asia to offset the
reliance on Air & Ocean volume only.

As with our other regions, a strong sales response is in action to counter the global trade
reduction.

- 8 -
Outlook
This full year result is satisfactory. It does represent our 13th year of ever-increasing
revenue growth and profitability increases – not that we rest on our past achievements.

During this past year we have seen extraordinary levels of freight volume, particularly
during the first six months, a reflection of a difficult and over-heated logistics market. We
have taken the opportunities that were presented and have grown a bigger and better
business, including the continued expansion of our network and infrastructure investment
into better and larger facilities.

Macroeconomic conditions are expected to deteriorate further, reducing freight volumes
across all our logistics products. Increasing inflation will be a feature effecting our cost to
serve. We have been active re-pricing freight rates because of these inflationary
pressures, and our sales teams are actively increasing market share.

Our strong customer verticals of Food, Beverage, DIY, Pharma, Perishables and Retail
will serve to reduce our exposure to this downturn.

It is a privilege to have supportive customers and our investment in our network, facilities,
technology, and people, remain an integral part of our long-term strategy.

Prudent management of margins and overhead costs is key. Our decentralised approach
allowing branch leadership to take responsibility for their profit and loss accounts provides
the most appropriate approach. Consequently, recruitment has reduced significantly over
the past three months across all regions.

We have a disciplined approach to capital investment, with $676 million being invested
through until the end of 2025. Providing the right facilities for our immediate and future
growth, including property investment in the USA and Europe, where larger long-term
growth opportunities present themselves.

We are mindful of the current economic downturn and inflationary environment and
therefore, will look for improved returns from the network rather than expansion for the
sake of it.

- 9 -

Trading post result has continued to show a weakness in volumes and activity. Whilst
management of overhead cost structures and the implementation of freight rate reviews
have been successful, it is expected to be a challenging first six months of trading.

We remain confident of our medium to long term growth prospects.

Mainfreight will release its financial results for the first half of the 2024 financial year to
the market on 9 November 2023.


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

---

Distribution Notice
(for Equity Security issuer/Equity and Debt Security issuer)
Section 1: Issuer Information
Name of Issuer
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
earnings)
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
imputation 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
25/05/2023
Tim Williams, Chief Financial Officer
Tim Williams
+64 9 259 5510
$0.33833333
$0.06041667
Section 4: Distribution Re-investment Plan (not applicable)
28.0%
$1.20833333
$1.20833333
$0.87000000
$0.15352941
Section 3: Imputation Credits and Resident Withholding Tax
Is the Distribution imputed?
Fully imputed
Partial imputation
No imputation
Type of distribution
(Please mark with an X in the
relevant box/es)
NZD
Mainfreight Limited
Ordinary Shares
MFT
NZMFTE0001S9
13/07/2023
12/07/2023
21/07/2023
$87,607,737
Retained Earnings

---

MAINFREIGHT LIMITED
FULL YEAR RESULT
TO 31 MARCH 2023

Page 2
Revenue is $5.68 billion
An increase of 8.8% or $457 million (excluding FX up 4.2%)
Offshore revenues are now $4.39 billion: 77.4%
Profit Before Tax is $587.4 million
Increase of 20.0% or $98.0 million (excluding FX up 14.9%)
Offshore PBT now $418.0 million: 71.2%
ROR 10.3% v 9.4%
Net profit up 20.0% to $426.5 million
No abnormalsin F23 or F22
Result Summary
REVENUE
PBT
NET PROFIT

Page 3
Full Year 2023 Overview
▪Satisfactory overall result despite slower second half:
▪our third strongest ever.
▪Disappointing US performance:
▪One-off costs of US$3m to year end.
▪Australia similarly affected by A$4m one-off costs.
▪Operating Cash Flow improvements $504m to $757m.
▪Expect slower first six-months as volumes decline across most
regions/products.
▪We still have plenty going on:
▪Network development –Increased from 305 to 331 branches.
▪Capital Investment -$676m through until 2025.
▪Sales activities/growth –Customer divisional trading increasing.

Page 4
Dividend
Directors have approved a final dividend of
87.0 cents per share
Books close 13 July 2023
Payment on 21 July 2023
Full dividend for year 172.0 cents per share,
21.1% increase over the previous year
DIVIDEND

Page 5
Discretionary Bonus
Payable at Board’s discretion to qualifying
team members
$79.9million, down from $94.20 million
last year, a reduction of 15.2%
Reduction in line with profit growth decline
across some branches/regions
BONUS

Page 6
Capital Management
NZ$ MILLIONTHIS YEARLAST YEAR
Operating cash flow$757.21$503.80
▪Net capital expenditure totalled $313.9 million for the period, including:
▪Land & Buildings$163.1 million
▪Racking & Fit-out Costs$70.4 million
▪Plant & Equipment$60.2 million
▪Information Technology$20.2 million

Page 7
Net debt reduction of $124 million to $123million in funds
Capital Management continued
NET FUNDS (DEBT) NZ$000THIS YEARLAST YEAR
Cash on Hand341,991202,258
Bank Term Loans(186,788)(176,005)
Asset Finance Loans(32,392)(27,321)
Net Funds (Debt)122,811(1,068)
Debt Facilities$510 million$494 million
Undrawn$323 million$318 million

Page 8
Full Year Analysis: Revenue
$000THIS YEARLAST YEARVARIANCE
NewZealand: NZ$1,284,8601,130,399
13.7%

Australia: AU$1,417,2851,175,041
20.6%

Europe: EU€
630,658567,906
11.0%

Americas: US$
959,9171,089,422
(11.9)%

Asia: US$
152,784231,008
(33.9)%

Total Group: NZ$5,675,7095,218,259
8.8%
(exclFX 4.2%)

Americas/Asia –Revenue decline driven by volume and rate reductions in Air & Ocean

Page 9
Full Year Analysis: Profit Before Tax
$000THIS YEARRORLAST YEARRORVARIANCE
NewZealand: NZ$169,42113.2%
136,47912.1%
24.1%

Australia: AU$136,7969.7%
107,4979.1%
27.3%

Europe: EU€
46,8607.4%
31,6645.6%
48.0%

Americas: US$
89,2489.3%
100,8319.3%
(11.5)%

Asia: US$
29,10119.0%
28,85212.5%
0.9%

Total Group: NZ$
587,39810.3%489,3819.4%
20.0%
(exclFX 14.9%)

Asia –has improved gross margins (including intercompany revenue ROR 10.8% v 5.5%)
Americas –A&O decline in trading volume. TPT –trading poor plus one-off costs of US$3m.

Page 10
2 Year Comparison
REVENUES
2023
$000
Variance
2022
$000
Variance
2021
$000
% Increase
Over 2 Yrs
Total Group First Half
3,003,33332.1%2,274,38641.4%1,608,86186.7%
Total Group Second Half
2,672,376-9.2%2,943,87352.1%1,934,97738.1%
Total Group Full Year
5,675,7098.8%5,218,25947.2%3,543,83860.2%
PBT
2023
$000
Variance
2022
$000
Variance
2021
$000
% Increase
Over 2 Yrs
Total Group First Half
301,71265.8%181,98678.0%102,265195.0%
Total Group Second Half
285,686-7.1%307,39592.0%160,14278.4%
Total Group Full Year
587,39820.0%489,38186.5%262,407123.8%

Page 11
Product Performance
NZ$000THIS YEARLAST YEARVARIANCE
TransportRevenue
2,242,7691,914,90217.1%

Profit Before Tax
228,498183,86124.3%

ROR
10.2%9.6%
WarehousingRevenue
750,179583,82128.5%

Profit Before Tax
65,37455,26218.3%

ROR
8.7%9.5%
Air & OceanRevenue
2,682,7612,719,535(1.4)%

Profit Before Tax
293,526250,25817.3%

ROR
10.9%9.4%

Page 12
Volume Analysis
NZ$000 THIS YEARLAST YEARVARIANCE
Air &OceanAirfreight kilos (000s)
126,941138,279(8.2)%

SeafreightTEU
392,979424,610(7.6)%

Fourth Quarter Air & Ocean volumes declined 4% & 17% respectively
TransportTonnes
7,321,4527,286,5720.5%

Consignments
9,302,3059,613,669(3.2)%

WarehousingFootprint (m
2
)*
1,041,016929,50212.0%

*Additional 263,955m
2
of Warehousing footprint due over next 24 months

Page 13
28%
35%
37%
31%
36%
33%
2022
2023
1 Division1 Division
2 Divisions2 Divisions
3 Divisions3 Divisions
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 66% from 64%
▪Top 500 Customers = 57% of total revenue (last year 56%)
▪Of the 128 customers new to the Top 500, 71 previously sat in the 501-1000 range,
39 sat in the 1001+ range, and 18 are new customers.

Page 14
New Zealand
▪Despite challenging infrastructure failings through weather
and ferry disruptions, good momentum maintained.
▪Network intensity increasing:
▪Whakatane / West Auckland
▪Cambridge / Auckland –2023
▪Nelson / Blenheim / Auckland –2024/25
▪Rotorua / Hastings –2025/26
▪FavonaWarehouse 43,000 sqm opens June 2023.
▪Air & Ocean still growing market share.
▪Rate Review effective 1 May 2023.
Revenue$1,284m 13.7% up
Profit Before Tax$ 169m24.1% up ROR 13.2% v 12.1%

Page 15
Australia
▪Reasonable momentum across all products:
▪However, Warehousing year-end disappointed –includes one-off
costs of AU$4m
▪Air & Ocean volumes remained consistent and, as with NZ, are
continuing to grow market share.
▪Transport volumes steady and market share opportunities being
taken.
▪Network intensified in Mackay, Orange, Dubbo. New sites
opened in South Melbourne/Adelaide/Gold Coast.
▪Warehousing increasing sites in Melbourne/Brisbane/Perth:
▪Utilisationreduction as new sites come online.
▪Rate Review effective 1 April 2023.
RevenueAU$1,417m 20.6% up
Profit Before Tax AU$ 137m 27.3% up ROR 9.7% v 9.1%

Page 16
Europe
RevenueEU€631m 11.0% up
Profit Before Tax EU€ 47m 48.0% up ROR 7.4% v 5.6%
▪Pleasing performance across all three divisions:
▪Good momentum outside of Netherlands –Belgium in particular.
▪Transport branch network increasing:
▪Rotterdam/Tilburg –Netherlands
▪Katowice/Poznan –Poland
▪Land acquisition for new cross-dock in ‘s-Heerenbergunder
negotiation.
▪Warehousing utilisationand pick activity reasonably
satisfactory:
▪New sites planned for Netherlands & UK, extension in Romania.
▪Air & Ocean –by region, our smallest operation:
▪Madrid and Verona to open increasing network to 18 branches.
▪Rate Reviews applied 1 January 2023.

Page 17
Asia
RevenueUS$153m (33.9)% down
Profit Before TaxUS$ 29m1.0 % up ROR 19.0% v 12.5%
▪Whilst PBT reasonably inline:
▪Revenue reduction as volumes and rates reduce dramatically
▪Large exposure to TPEB trade –China to USA
▪Airfreight reduction as air volume finds itself back in sea freight
▪Margin improvement:
▪LCL freight growth
▪Pre-shipment activity increase
▪Freehand cargo growth –In-country customer decisions
▪Network growth via:
▪New Country -Indonesia
▪New branches in Penang and Johor, Malaysia
▪Sales branches in Nanning and Dongguan, China
▪Warehouses in Malaysia, Thailand and Japan
▪India due to open August 2023

Page 18
The Americas
RevenueUS$960m 11.9% down
Profit Before Tax US$ 89m11.5% down ROR 9.3% v 9.3%
▪Our poorest performing region:
▪One-off costs across Transport –US$3m
▪Lack of customer depth in Transport has seen volumes
deteriorate due to slowing economic conditions
▪Declining volumes and revenues in Air & Ocean
▪Airfreight declining as sea freight capacity becomes available
▪Transport re-classification from Freight Forwarder to
LTL Motor Carrier status.
▪Two new cross-docks under construction:
▪Dallas –due late 2024
▪Chicago –due mid 2024
▪Land acquisition in Chicago undergoing due diligence process.

Page 19
The Americas
▪Rate review effective 1 April 2023.
▪Warehouse property consolidation / increase in capacity.
▪Air & Ocean:
▪Airfreight division now separated
▪LA stand-alone facility with chillers to be operational July
▪CaroTransincreasing LCL consolidations and margins
▪Leadership changes across:
▪Air & Ocean –Matt Gustafson
▪Warehousing –Andrew Coulton
▪Financial Controller –tba
▪Senior team now located in Chicago.

Page 20
Sustainability
“It matters to us”
▪Gross carbon emissions (direct and indirect) have
decreased 180,000 tonnes CO
2
-e largely tied to
reduction in Air & Ocean volumes.
▪Freight emissions intensity were mixed; air and road
factors marginally up 1.6% and 0.3%, ocean freight down
22.2%.
▪Doubling branch solar generation capacity over the next
2 years.
▪All new builds are incorporating rainwater capture and
purification to drinkable standard.
▪Sustainability Overview now available on our website.

Page 21
Future Capital Expenditure Update: F24-F25
NZ$ MILLIONF24
Planned Capital Expenditure$381
▪Property$237
▪Fit-out costs$84
▪Non-property capex$60
NZ$ MILLIONF25
Planned Capital Expenditure$295
▪Property$192
▪Fit-out costs$43
▪Non-property capex$60
PropertyandFit-outcostsF24-F25:
NZ$192million
Australia$176million
Americas$97million
Europe and Asia$ 91 million
$556 million

Page 22
Group Outlook ...
▪Expect a challenging six to twelve months against a strong PCP.
▪Macroeconomic environment affecting volumes across all three
products -Recalibration in inventory levels.
▪Inflationary pressures impacting:
▪Cost management underway by branch
▪Hiring freeze in place
▪Wage and salary review applied across all regions April 1st
▪Continuing to invest in network and infrastructure:
▪Strong balance sheet –net funds of $123m
▪April/May results impacted by short trading weeks and weather
events in New Zealand.

Page 23
Group Outlook ...
▪Strong sales activities underway in each region:
▪Market share focus
▪Increasing our range of services to all customers
▪Take advantage of the current environment to further
improve our network and service levels.
▪Remain confident of our medium to long term growth
prospects.

Page 24
Financial Calendar F24
DATE
Annual Meeting of Shareholders27 July 2023
F24 –6 months ended 30 September 20239 November 2023
F24 –12 months ended 31 March 202429 May 2024

Page 25
We cannot direct
the wind, but we can
adjust the sails