Investor Presentaiton
Investment Returns - Improving ROACE
QUBE DELIVERED A STEP UP IN ROACE IN FY22
QUBE
Qube Group
9.0%
8.0%
7.0%
5.9%
5.6%
6.0%
5.2%
4.7%
8.0%
6,000.0
5,000.0
4,000.0
3,000.0
2,000.0
1,000.0
ROACE (%)
5.0%
4.0%
R 3.0%
2.0%
1.0%
0.0%
FY18
FY19
FY20
Average Capital Employed
FY21
FY22
ROACE (%)
Note: Average capital employed excludes goodwill of $310m which arose from the
Qube Restructure undertaken in 2011.
Patrick
8.0%
7.0%
6.0%
5.0%
5.0%
4.6%
4.4%
4.0%
3.0%
2.0%
1.0%
0.0%
FY18
FY19
FY20
7.4%
1,500.0
6.0%
1,400.0
1,300.0
1,200.0
1,100.0
1,000.0
FY21
FY22
ROACE (%)
Average Capital Employed ($m)
Average Capital Employed ($m)
Average Capital Employed ($m)
FY18-21 returns dampened by the material and increasing investment in
Moorebank Logistics Park (MLP), with minimal associated earnings.
Qube delivered a step up in ROACE in FY22 as a result of strong growth in the
Operating Division and Patrick, and the divestment of the MLP asset, which
materially lowered our capital employed base.
A further benefit should be derived in FY23 simply based on a lower average
capital base across the year (FY22 has MLP in for most of H1).
Targeting to grow Qube group returns to above 10% in the short to medium term,
with the opportunity to further improve as group earnings continue to improve
and the MLP Terminal assets start to contribute to earnings in a more meaningful
way (3-5 years).
Patrick is delivering improved returns driven by growth in margins, higher
productivity and an increasing contribution from landside and ancillary charges.
Returns are still below those required for an investment of this type of asset.
Patrick has invested, and continues to invest, in improving productivity for both
shipside and landside customers.
Guided to continued strong growth in underlying EBITDA in FY23. ROACE
should also improve.
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