The Team's Board Report - Mainfreight

2
Managing Director’s Comment
Welcome to The Team’s Board
Report, where we are able to keep
our team members, customers and
shareholders abreast of the
activities and development of the
Mainfreight Group as we expand
our network around the world.
We have completed the release
of our financial results for the past
year to 31 March 2010.
These results saw Mainfreight
produce record revenue of
NZ$1.3 billion; record EBITDA
(that is earnings before interest,
tax, depreciation and amortisation)
of NZ$91.6 million, and a record
net profit before abnormals of
NZ$47.2 million.
All of this has been achieved in
trading conditions that remain
difficult in most world economies,
and while we focused on building
our business; increasing our
number of branches, developing
and introducing new logistics
services, and completing the
acquisition of our largest
transaction, the Wim Bosman
Group, a Netherlands-based
integrated logistics and transport
business.
It is important to understand the
significance of this transaction to
Mainfreight. It is a strategic step,
not transacted just for growth, but
because of the specific nature of
the Wim Bosman company, which
is an exceptional fit to the existing
business and culture of Mainfreight.
With the Wim Bosman Group we
are able to deepen our strategic
position; to offer our customers
world class service in another
region, with the same high quality
approach to LCL freight as we do
everywhere else. We now have the
opportunity to serve a larger market
with more customers than we have
ever had access to before.
This acquisition is a significant step
for Mainfreight; our first foray into
Europe, continuing the goal of
having our global logistics
organisation located in all the
trading nations of the world.
Further we also took the
opportunity to open our first office
on the South American continent,
in Santiago, Chile for CaroTrans.
Welcome to these new members
of the Mainfreight global family!
We are sure you will now know you
have become part of an exciting
organisation that will provide you
with security and development in
your working career, excitement as
we continue our growth, and a little
fun as we provide our customers
with the very best possible levels
of service, all with a smile and the
knowledge we have been useful.
In New Zealand and Australia, we
have the opportunity to add a
greater degree of expertise through
incorporating the disciplines we are
seeing in European freight handling
initiatives. The use of electric
forklifts supplemented by pallet
jacks, eliminates the overuse of
gas and diesel hoists, improving
our efficiency on the dock with
the additional benefits of reduced
carbon emissions, better safety
and lower costs. Combining this
with more end-loading of Pick Up
and Delivery, and Linehaul vehicles,
we will also improve our turnaround
times.
Our International operations across
Australasia, Asia and the United
States of America must focus on an
improved ROR (return on revenue).
We also require more development
of our own network; increasing the
trade between our operations
around the world will be important
for our customers’ and our own
success.
In Europe, we have great
opportunity to build on the
excellent network that has been
created. Adoption of Mainfreight’s
operating principles, financial
disciplines and aggressive sales
development programmes will
enable the Wim Bosman Group
to become a significant contributor
to the Mainfreight network.
Embracing new initiatives,
operational and business practices
that are succeeding in our
operations across different parts
of the world is the key to delivering
better service for our customers,
and increased profitability.
No matter where you are in our
business, adopt an open mind to
change.
Whilst discussing quality and
image, Mainfreight has been
around far too long to still have
transport operations with unsealed
terminals. Whether it is Gore,
Greymouth, Townsville or Ploieşti,
please ensure our image is
protected with well maintained
facilities, no matter their size.
This past year has been a defining
period for our business. Thank you
all for your efforts. We have a new
and exciting journey ahead of us.
Let us get on and make a
difference. Be useful and add a
smile for our customers and team
mates.
Don Braid