MaxiTRANS Industries Limited

Half Year Ended 31st December 2016

Revenue down 5.7% on pcp
Trailer Solutions business down 8%
- o Strong Australian tipper sales more than offset by softer Freighter and Maxi-CUBE sales
- o NZ significantly impacted by delay in equipment regulation change (now passed)
Parts and Components up 1%
- o MaxiPARTS flat revenue as new business initiatives stem any further decline
- o China delivers further improvement
1H17 Reported NPAT \$6.07m is 17% up on pcp
Underlying NPAT \$6.07m is 8% up on pcp
Greater contribution from higher margin Parts & Components segment
Once-off sundry provision adjustments (\$900k)
\$0.02 per share fully franked interim dividend declared

	1H15 \$,000	1H16 \$,000	1H17 \$,000	% Change on 1H16
Revenue	172,022	181,365	171,591	(5%)
EBITDA	10,673	11,197	12,164	9%
NPBT	6,708	7,364	8,590	17%
NPAT attributable to MXI equity holders	5,086	5,189	6,074	17%
Underlying NPAT attributable to MXI equity holders	5,086	5,627(1)	6,074	8%

1 – excludes after tax Bundaberg restructure cost of \$438k

	1H15 \$,000	1H16 \$,000	1H17 \$,000	% Change on 1H16
Operating Cashflow	10,682	13,182	2,034	(84%)
Net Debt	34,334	31,809	36,127	13%
Net Debt / Equity	28%	25%	28%	3ppts
EPS (basic) cents	2.75	2.80	3.28	17%
Underlying EPS (basic) cents	2.75	3.04	3.28	8%
Interim dividend declared (cents)	2.00	2.00	2.00	0%
Total dividend as % of EPS (basic)	73%	71%	61%	(10ppts)

• Operating cashflow impacted by lower revenue and higher working capital, largely due to increased inventory holdings

Higher inventory holding due to: - MaxiPARTS (\$3m)

Australian trailer market starts to show first signs of growth in two years led by stronger tipper demand
Benefits gained from diverse product portfolio
Revenue down 8% and unit sales down 6% on pcp
Improved order intake at the end of 1H resulted in the order bank at the end of 1H 17 being 15% up on same time last year

*1H17 unit sales compared to prior two year average

All major general freight trailer manufacturers lost market share in 2016.
Low business confidence drove sales down 22% on pcp
Order intake down 20% on pcp, however, showed improvement late in the half and continues to improve
A number of product changes improving safety, productivity and efficiency launched and well received by the market

Notwithstanding aggressive discounting, sales down 36% on pcp driven by abnormally high pcp sales in pcp. Unit sales in line with prior two year average
Order bank up 6% on pcp
Significant opportunities from major fleets remain in the market

All tipper sectors (agriculture, construction and waste) performed strongly

MaxiPARTS revenue is flat with the continued decline in Gladstone offset by new growth initiatives
Significant profit improvement
Strong pricing disciplines delivering trading margin improvement
In excess of 100 MaxiSTOCK customer inventory management system implementations delivering 27% revenue uplift on like-for-like customer base
Strong acceptance of proprietary AirMAX suspension
Commenced expansion of product range into aftermarket truck parts

Revenue down 44% on pcp.
Regulation changes impacting trailer dimensions and allowing for greater productivity caused deferral in order placement. The new regulations are now in place.

Revenue up 20% on pcp
Profit improvement of 76% on pcp due to stronger production volumes and higher margin product mix

(1) – 80% owned

Strong Australian tipper order book leading into 2H17 and flat order book v pcp for other products
NZ regulation change and customer contract changes should see improvement in orders in H2 FY17 but will not result in sales improvement until FY18
MaxiPARTS should continue to improve on its 1H FY17 result