New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Mainfreight (MFT) reported a strong FY23 result (PBT +20%; +15% on a constant currency basis) marginally ahead of our expectations, but a year in which growth slowed sequentially, and reversing in the second half.</li><li>A more challenging volume environment, several one-offs costs (amounting to ~NZ$10m) and the rates decline in Air &amp; Ocean, was partially mitigated by a decline in the bonus accrual, leading to a -7% PBT decline in 2H23 against the prior year.</li><li>At a product level Transport finished the year strongly, Warehousing growth was robust, and Air &amp; Ocean was progressively impacted by both volume and rate declines.</li></ul>

Mainfreight (MFT) reported a strong FY23 result (PBT +20%; +15% on a constant currency basis) marginally ahead of our expectations, but a year in which growth slowed sequentially, and reversing in the second half.A more challenging volume environment, several one-offs costs (amounting to ~NZ$10m) and the rates decline in Air &amp; Ocean, was partially mitigated by a decline in the bonus accrual, leading to a -7% PBT decline in 2H23 against the prior year.At a product level Transport finished the year strongly, Warehousing growth was robust, and Air &amp; Ocean was progressively impacted by both volume and rate declines.

Mainfreight: FY23 Result Initial Thoughts

Mainfreight Ltd

Mainfreight: FY23 Result Initial Thoughts