Mainfreight Half Year Financial Results 30 September 2024

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
13 November 2024

Financial result for the six months ended 30 September 2024 (Unaudited)

Commentary
Mainfreight is pleased to confirm our half-year financial results to 30 September 2024.
This result is marginally better than our estimated guidance released during our Texas
Investor Day on 7 October 2024.

Result Summary
Revenue NZ$2.55 billion up 8.4%
Profit before tax (PBT) NZ$161.2 million down 7.8%
Net profit NZ$114.56 million down 8.0%

• Adjusted for foreign exchange impact Group Revenue is up 9%, PBT is down
7.7% and Net profit is down 7.9%.
• Operating cash flows increased from $186.8 million to $191.7 million.
• An interim dividend of 85 cents per share has been set by the Directors.

This result has been well signalled during our Investor Day briefing. The small
improvements in PBT occurred across all regions. However, the majority came from the
New Zealand business units.

Freight volumes and warehousing utilisation have all increased on the prior period.

This improvement in profitability during our second quarter is expected to continue into
the second six months of our financial reporting period.

- 2 -
Group Operating Cash Flows
Operating cash flows were $191.7 million up from $186.8 million in the prior
comparative period. Cash collection continues to be satisfactory.

Net funds (debt) increased to ($88.1 million) from $21.6 million.

Debt facilities total $499 million, of which $302 million remain undrawn.

Net capital expenditure totalled $121.3 million for the half year period to
September 2024. Expenditure on property was $70.9 million. Capital expenditure is
expected to decline further to $204 million to 31 March 2025 (from $233 million
signalled at our Investor Day in October). This reflects delayed property and
construction settlement dates.

Dividend
The Directors have approved a interim dividend of 85 cents per share, fully imputed at
the 28% company tax rate. With the record date on 13 December 2024, payment will
be made 20 December 2024.

Product Performance (NZ$)

Transport Revenue: $1.11 billion up 2.0%
PBT: $73.6 million in line
Volumes (Tonnage) up 6%

Warehousing Revenue: $411 million up 4.4%
PBT: $21.1 million down 22.4%
Total square metres in line with prior period

Air & Ocean Revenue: $1.03 billion up 18.0%
PBT: $66.5 million down 10.4%
Sea freight (TEU) up 6%, Airfreight (kgs) up 9%

- 3 -
Divisional Performance (figures in local currencies)

New Zealand
Revenue NZ$554 million in line
PBT NZ$47.5 million down 22%

A small 2% improvement from our Investor Day estimates in our PBT result across our
New Zealand businesses. Largely because of improvements in our Transport results.
Continuing weakness in the New Zealand economy has contributed to flat revenue
growth, despite ongoing market share gains. Increased overheads associated with new
building facilities in Auckland contributes to the lower profit result. Transport volumes,
while increased, continue to be imbalanced towards North to South transits, impacting
returns.

High utilisation has been maintained in our Warehouses – improving profitability.
Additional capacity for consumer goods and for the dangerous goods sector will be
available early 2025. This capacity is providing new business opportunities.

Air & Ocean margins continue to be impacted as shipping rates and schedules
continue to fluctuate. Focus remains on high yielding LCL freight consolidations.

Trading through October, and now into November, has provided small incremental
improvements in profitability.

Australia
Revenue AU$759 million up 20%
PBT AU$60.9 million up 8%

Increasing our market share, in what is still a challenging economy, has provided
healthy revenue growth and a satisfactory increase in profitability. New customer gains
across all three divisions have offset any customer downtrading.

Transport volumes continue to increase as we improve our service levels and increase
our network coverage into more regional areas of Australia.

- 4 -

Project revenue has added to a satisfactory result for our Air & Ocean network, albeit at
lower margins than we would like. Project and perishable air freight development
provides ongoing confidence, despite the reduction in import sea freight volumes.

Warehousing profitability is improving as utilisation and better efficiencies begin to
contribute to improving margins. New customer gains, particularly in our Moorebank
Sydney facility, have assisted.

Trading post this half year result has seen further ongoing improvement.

Europe
Revenue €291 million up 3%
PBT €13.7 million up 9%

A satisfactory performance from our European operations, particularly from our
Transport business, alongside an improving performance from our Air & Ocean
division.

A satisfactory Transport performance was limited to the Netherlands and Belgium, with
improvement still required in France and Poland.

Unfortunately, Warehousing performance has disappointed, with lower utilisation and
activity levels as customers down trade. This included the additional capacity added in
the Netherlands and Romania impacting our performance.

Air & Ocean activity continues to improve with ocean and air imports ahead of exports.

Trading during October and November remains satisfactory.

- 5 -
Asia
Revenue US$65 million up 34%
PBT US$5.9 million down 9%

Stronger than expected export volume growth has assisted this result. Unfortunately, it
has come at weaker margin levels. Development of air freight capability continues.
Southeast Asian development has again taken advantage of the movement of
manufacturing from China. Albeit, China remains our top profit performing country
within the region. Warehousing performance disappointed.

Trading post the result has seen small profit improvements on the prior period.

The Americas
Revenue US$347 million up 7%
PBT US$8.4 million down 30%

A disappointing overall profit result as our performances in Transport and CaroTrans
continue to impact our result. While Transport volumes are showing improvement,
margins continue to be impacted by fixed road linehaul development to aid and improve
our service quality. Network expansion, including the opening of new transport cross-
docks in Texas and Illinois, will assist our sales development.

Warehousing is providing satisfactory results. However, we still require a stronger
approach to more customers utilising our Transport and Air & Ocean networks as part
of our supply chain offering.

Air & Ocean volumes are satisfactory with ongoing improvements providing confidence.
CaroTrans LCL consolidations and agent network improvements are developing, albeit
slowly.

Trading post the result continues the current level of profitability. As we have noted
previously, we expect our USA development to take time.

- 6 -
Outlook

Challenging trading conditions continue across all the regions where we are located.
Our profitability performance reflects those conditions. However, we remain very active
in our sales activities, attracting and retaining customers across our supply chain
service offering.

The associated revenue and tonnage increases provides confidence of further
improvement in our results for the next six months and beyond.

Careful management of our capital expenditure associated with our property and
network development has seen some expenditure delayed into the following two years.
Likewise, new property leasing commitments are aligned with customer growth
expectations.

We remain well positioned to continue to find market share opportunities and to take
advantage of improving economic conditions as they occur across our international
network.

Mainfreight will release its financial results for the full 2025 financial year on
29 May 2025.

For further information, please contact Don Braid, Group Managing Director,
telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com
or
Graeme Illing, Chief Financial Officer, telephone +64 9 259 5522, +64 276 424473 or
email graeme.illing@mainfreight.com.