Qube : Half Year Results for Announcement to the Market

For personal use only

24 February 2022

ASX Announcement

Results for Announcement to the Market - FY22 Half Year Results

We attach the following for the half year ended 31 December 2021:

• Appendix 4D
• FY22 Half Year Financial Report

Authorised for release by:

The Board of Directors, Qube Holdings Limited

Further enquiries:
Media:	Analysts/Investors:
Paul White	Paul Lewis
Director, Corporate Affairs	Chief Financial Officer
[e-mail]	[e-mail]
[phone]	[phone]

For personal use only

Qube Holdings Limited

(ABN 14 149 723 053)

APPENDIX 4D Half Year Report 31 December 2021

Results for Announcement to the Market

Statutory Information

Set out below are the statutory results for Qube Holdings Limited (Qube) and its controlled entities for the half year ended 31 December 2021.

It is noted that sale of the warehouse and property assets of the Moorebank Logistics Park (MLP Property Assets) project were completed on 15 December 2021.

In the statement of comprehensive income, the net contribution from the MLP Property Assets and the costs associated with the discontinuation of the Property Division are shown as profit after tax from discontinued operations. These earnings are excluded from the financial information relating to Qube's continuing operations.

The table below highlights that Qube reported a $56.3 million statutory net profit after tax attributable to members for the half year, which includes the contribution from the discontinued operations. However, when the loss from the discontinued operations are excluded, the statutory result from continuing operations is a net profit after tax of $72.5 million.

Statutory Information	Dec 2021	Dec 2020	Movement
$m	$m	%
Revenue from ordinary activities	1,181.6	917.0	29%
Revenue from ordinary activities (including discontinued operations)	1,190.4	939.3	27%
EBITDA1	231.3	204.9	13%
EBITDA1 (including discontinued operations)	214.7	219.1	(2)%
Net Profit after tax	72.5	47.2	54%
Net profit after tax attributable to members (including discontinued	56.3	57.8	(3)%
operations)
Interim dividend per share (fully franked)	3.0c	2.5c	20%
Basic and Diluted EPS	3.8c	2.5c	52%
Basic and Diluted EPS (including discontinued operations)	2.9c	3.1c	(6)%
Diluted weighted average shares on issue (m)	1,910.2	1,888.5	1%

1EBITDA is statutory net profit before tax adjusted to remove share of profit of associates, net finance costs, depreciation and amortisation.

Underlying revenues and expenses are statutory revenues and expenses adjusted to exclude certain discontinued operations and other non-cash and non-recurring items in order to more accurately reflect the underlying performance of Qube. Income tax expense is based on a prima-facie 30% tax charge on profit before tax and associates.

Underlying information*	Dec 2021	Dec 2020	Movement
$m	$m	%
Underlying Revenue	1,216.0	953.3	28%
Underlying EBITDA	190.4	162.6	17%
Underlying EBITA	110.9	93.3	19%
Underlying net profit attributable to members	88.3	74.3	19%
Underlying net profit attributable to members pre-amortisation	96.8	82.8	17%
Underlying diluted EPS	4.6c	3.9c	18%
Underlying diluted EPS pre-amortisation	5.1c	4.4c	16%

Further commentary on the performance of Qube and its operating businesses is set out in the financial statements and ASX announcement issued with this Appendix 4D. Underlying information is inclusive of discontinued operations.

• The underlying information excludes discontinued operations and certain other non-cash and non-recurring items in order to more accurately reflect the underlying financial performance of Qube. 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.

1

For personal use only

A reconciliation of the statutory results to the underlying results for the half year is presented below:

	Dec-21	Dec-20
Revenue from external customers	$m	$m
1,190.4	939.3
Intercompany transactions	27.6	23.6
Fair value losses/(gains)	(3.5)	(13.0)
Quattro acquisition adjustment	-	2.8
Other adjustments	1.5	0.6
Underlying revenue	1,216.0	953.3
Net profit before income tax	80.8	76.6
Share of profit of equity accounted investments	(8.6)	(7.6)
Net finance cost	18.4	19.4
Depreciation and amortisation	124.1	116.5
EBITDA	214.7	204.9
Net Fair value loss / (gain)	2.1	(13.0)
AASB 16 leasing adjustment	(49.0)	(48.5)
Discontinued operations	7.4	-
Loss on sale of assets held for sale	9.7	-
Impairment of investment in associate	-	11.1
Impairment of loan to associate	-	1.6
Quattro acquisition adjustment	-	2.8
Minto sale adjustment	-	2.8
Other adjustments (net)	5.5	0.9
Underlying EBITDA	190.4	162.6
Underlying Depreciation	(79.5)	(69.3)
Underlying EBITA	110.9	93.3
Underlying Amortisation	(4.5)	(6.0)
Underlying EBIT	106.4	87.3
Underlying net finance cost	(3.8)	(1.9)
Underlying share of profit of equity accounted investments	15.7	13.5
Underlying net profit before income tax	118.3	98.9
Underlying income tax expense	(30.8)	(25.7)
Underlying net profit for the half year	87.5	73.2
Underlying non-controlling interests	0.8	1.1
Underlying net profit after income tax attributable to members	88.3	74.3
Underlying net profit after income tax attributable to members pre-
amortisation A	96.8	82.8
	Cents	Cents
Underlying diluted earnings per share *	4.6	3.9
Underlying diluted earnings per share pre-amortisation*	5.1	4.4

1. Underlying net profit/(loss) after tax pre-amortisation, includes an adjustment for Qube's proportionate share of Patrick amortisation net of tax.

The table above has been extracted from note 2 of the financial statements but is un-audited.

• The underlying information excludes discontinued operations and certain other non-cash and non-recurring items in order to more accurately reflect the underlying financial performance of Qube. 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

For personal use only

Dividend Information

	Amount	Record Date
	(cents per share)
Interim dividend - fully franked	3.0	9 March 2022
Payment date	8 April 2022

Qube paid a fully franked interim dividend of 2.5 cents per share for the six months ended 31 December 2020 on 8 April 2021. A fully franked final dividend of 3.5 cents per share for the year ended 30 June 2021 was paid on 22 October 2021.

Dividend Reinvestment Plan

The DRP has been suspended for the interim dividend payable on 8 April 2022.

Net Tangible Assets per Share

The net tangible assets per share are $1.28 per share (Dec 2020: $1.31 per share).

Additional Information

Additional Appendix 4D disclosures can be found in the notes to the Interim Financial Report.

This Appendix 4D report is based on the 31 December 2021 Interim Financial Report which has been subject to a review by PricewaterhouseCoopers.

3

Qube Holdings Limited
ABN 14 149 723 053
Consolidated financial report
for the half-year ended 31 December 2021
only
Contents
Directors' report .................................................................................................................................................................................	2
Auditor's Independence Declaration.....................................................................................................................................................	9
use
Consolidated statement of comprehensive income ............................................................................................................................	10
Consolidated balance sheet ...............................................................................................................................................................	11
Consolidated statement of changes in equity.....................................................................................................................................	12
Consolidated statement of cash flows ................................................................................................................................................	13
Notes to the consolidated financial statements ..................................................................................................................................	14
Directors' Declaration .........................................................................................................................................................................	33
Independent auditor's review report to the members .........................................................................................................................	34
For personal

This half-year financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2021 and any public announcements made by Qube Holdings Limited during the half-year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.