Qube : Half Year Results Presentation

Qube Holdings Limited

Investor Presentation FY 17 Interim Results

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The information contained in this Presentation or subsequently provided to the recipient whether orally or in writing by, or on behalf of Qube Holdings Limited (Qube) or any of its directors, officers, employees, agents, representatives and advisers (the Parties) is provided to the recipient on the terms and conditions set out in this notice.

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The provision of this Presentation is not and should not be considered as a recommendation in relation to an investment in Qube or that an investment in Qube is a suitable investment for the recipient. References to 'underlying' information is to non-IFRS financial information prepared in accordance with ASIC Regulatory Guide 230 (Disclosing non-IFRS financial information) issued in December 2011. Non-IFRS financial information has not been subject to audit or review. 2

Return to Earnings Growth

Delivered Underlying NPAT Growth

• Underlying NPAT of $62.1 million, an increase of around 19%

• Statutory NPAT of $47.8 million, a decrease of around 2%

• Underlying earnings growth in both operating divisions

• Initial contribution and long term outlook from Patrick acquisition in line with internal expectations

• Strong cashflow generation supports continued investment in growth

  Completed Strategic Acquisitions

  • Completed several acquisitions during the period that further enhance the quality and growth outlook of Qube's operations:

    • Patrick (50%) - completed 18 August (with Brookfield acquiring the other 50%)

    • AAT (50%) - completed 30 November, increasing Qube's ownership to 100%

    • Moorebank (MIPT) (33%) - completed 23 December, increasing Qube's ownership to 100%

Undertook Funding Initiatives to Support Growth

• Completed a $306 million placement to CPPIB to support the acquisition of Patrick

• Completed a $305 million 7 year ASX listed Subordinated Note issue to provide additional liquidity, diversify Qube's funding sources and extend the tenor of its debt facilities

• At 31 December 2016, Qube's leverage was around 30% and available cash and undrawn debt facilities were around $406 million - providing Qube with significant capacity to fund continued growth

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  H1 - FY 17 Divisional Highlights Logistics

  Financial

  • Underlying revenue growth of 5% to $328.8 million

  • Underlying EBITA growth of 9% to $36.7 million

  • Continued margin improvement with EBITDA margin increasing from 15.7% to 16.1%

Operational

• Increased volumes nationally reflecting improved volumes from existing customer base as well as market share gains

• Rail volumes benefitted from modal shift and increased grain volumes

• Margins benefitted from cost focus, and scale benefits from Qube's previous investment in facilities

  Capex

  • Total net capex of around $21 million of which around $18 million is growth related

  • Growth capex in period mainly comprised new locomotives and wagons to support continued growth in rail activities

Outlook • Expect similar conditions in H2 (with continuation of traditional business seasonality towards stronger H1)

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