BUILT ON PRIDE Half Year Ended 31st December, 2017

MMaxiPARTS

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AREIGHTER

Maxi-CUBE

Hamelex White LUSTY EMSE

A AZMEB PEHICO

Our values

Send all our people home safely . A balanced focus on customers and results . Enable and empower people to achieve results . Be honest, forthright and ethical in our dealings . Encourage collaboration and deep seated accountability . Become better every day in all that we do

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Maxil RANS Australia Pty Ltd. Copyright 2018. ABN 95 081 151 699. Printed 02/18

maxitrans.com

BEHIND EVERY INDUSTRY

Maxi-CUBE

AREIGHTER

LUSTY EMSE

Hamelex White

PEHICO

MMaxiPARTS

H1 FY18 revenue

\$214m

25%

lất

Trailer order

$\uparrow$ 17%

book (excl. Coles)

$\Box$ e

KEY THEMES FROM H1 FY18 RESULT

• MaxiTRANS delivers double digit growth
• Revenue \$214.1m up 25% on pcp
• NPAT \$7.7m up 27% on pcp
• Segment profit
• Trailer Business up 40%
• Parts & Components up 12%
• Operating cashflow (excl. capex) \$6.9m
• MaxiTRANS well positioned for further growth
• Order books (excluding remaining Coles units) up 17% on pcp
• Market share growth in 2017 assisted by Coles contract
• Unchanged interim dividend of 2 cents per share fullyfranked

pcp = prior corresponding period

FINANCIAL OVERVIEW

EARNINGS BRIDGE – NPAT UP 27%

• \$6,074 \$10,117 (\$3,690) (\$4,421) (\$376) \$7,704 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 1H17 NPAT Sales volume variance Gross margin variance Overheads Tax & minority movement 1H18 NPAT NPAT Bridge - 1H18 vs 1H17 \$'000
• Sales volume growth assisted by Coles contract
• Gross margin decline:
• Higher mix on lower margin products
• Lower gross margins in Trailer business than Parts business
• Overhead increase principally due to higher NZ warranty costs and headcount increases to support growth
• Improved operating leverage

* excludes cashflow from external borrowings

CASHFLOW (CONTINUED)

• \$6,859 \$2,034 \$2,216 \$1,556 \$1,053 - 2,000 4,000 6,000 8,000 10,000 1H17 Increased EBITDA Improved working capital movement vs 1H17 Other 1H18 Operating Cashflow - 1H18 vs 1H17 \$'000
• Improved cashflow from trading activities
• Favourable working capital movement in H1 FY18 vs pcp

SEGMENT EARNINGS – TRAILERS

• Revenue growth from both Australian and NZ businesses
• As expected, gross margins slightly below prior year due to higher mix toward lower margin products, principally Coles related
• Profit impacted by adverse warranty claims in NZ

GENERAL FREIGHT – FREIGHTER PRODUCTS

• Unit sales up 35% v pcp (25% up excluding Coles)
• Improving demand from greater customer confidence
• MaxiTRANS gained good share of fleet replacement programs undertaken by major fleets
• Order book 70% up on pcp

FOOD & GROCERY - MAXI-CUBE PRODUCTS

• Unit sales up 143% v pcp (flat unit sales excluding Coles)
• Coles contract tracking to budget and schedule
• Excluding Coles, order book down 32% v pcp, partially due to capacity constraints in delivering Coles contract
• Significant opportunities remain in the market

AGRICULTURE - TIPPERS

• 18% increase in tipper sales driven by expected buoyant winter crop conditions
• Unit sales significantly higher than average of prior three years
• Order book lower than pcp

CONSTRUCTION - TIPPERS

• 6.5% decrease in tipper sales
• Unit sales still significantly higher than average of prior three years
• Order book lower than pcp to be expected given initial ramp-up for new projects in prior year (particularly NSW)

NEW ZEALAND

• Major customers winning new contracts and regulation change drove 77% increase in unit sales v pcp
• Volume growth more than offset by significant warranty claims adversely impacting profit
• Order book up 61% v pcp

SEGMENT EARNINGS – PARTS & COMPONENTS

• Revenue growth principally driven by MaxiPARTS business
• Strong profit growth from MaxiPARTS offset by profit decline from MTC China

MAXIPARTS

• External revenue growth from:
• MaxiSTOCK customer inventory management system continues to represent a growing proportion of sales
• Focus on serving major fleets comprehensive product range and national store network
• Margin decline due to higher mix of sales to MaxiTRANS business units to service production requirements at lower margins
• Expect further growth from major fleet program

MAXI-CUBE TONG COMPOSITES (CHINA)

• Revenue growth of 12% on a constant currency basis (7% on reported currency basis)
• Margin adversely impacted by:
• Delivery of significant order from China Post at reduced margins
• Material price increases not able to passed on in the short term

• Entering 2H18 with strong Australian and New Zealand order book and further opportunities
• Expect further growth from MaxiPARTS business
• MTC China to work on margin improvement in H2

EXECUTING CORPORATE STRATEGY AND DRIVING CHANGE

• Operational excellence
• Organisational development
• Growth in existing business
• Growth in new markets
• Corporate image

CORPORATE STRATEGY – TRANSFORMATIONAL CHANGE IS UNDERWAY

• Multiple operational excellence initiatives under way
• New ERP to go live in Manufacturing in mid-2018. Trailer sales / service, MaxiPARTS and NZ scheduled to go live H2 FY19
• Healthy product development pipeline with more than 50 projects in progress or awaiting initiation
• Numerous organisational development initiatives in progress including talent development, culture and employee engagement
• Feasibility work being undertaken on new market opportunities in China and SE Asia
• Investment in strategic growth projects commenced

BEHIND EVERY INDUSTRY

ÆREIGHTER Maxi-CUBE

LUSTY EMSET

Hamelex White

PEHICO $\lambda$ | AZMEB

MMaxiPARTS