Move Logistics Group Limited · NZX:MOV
Move Logistics — Investor Presentation (October 2021)
49 slides from Move Logistics's investor presentation, Oct 27, 2021
Slide 1: Capital Raising Presentation
MOVE LOGISTICS GROUP LIMITED Capital Raising Presentation October 2021
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by MOVE Logistics Group Limited (“MOVE”) in connection with an offer of new ordinary shares in MOVE (“New Shares”) by way of an accelerated renounceable entitlement offer (“Offer”) under clause 19 of Schedule 1 of the Financial Mark
Slide 3: Important notice and disclaimer
Important notice and disclaimer Distribution of presentation This presentation must not be distributed in any jurisdiction to the extent that its distribution in that jurisdiction is restricted or prohibited by law or would constitute a breach by MOVE of any law. The distribution of this presentatio
Slide 4: Executive Summary
Executive Summary - MOVE is one of New Zealand’s largest logistics companies, providing end-to-end supply chain solutions to SMEs and large corporate customers Overview of MOVE - MOVE has a diverse customer base across a wide range of sectors - Over 50 leased sites across New Zealand, approximately
Slide 5: Overview of MOVE
OVERVIEW OF MOVE Move
Slide 6: Introduction to MOVE
Introduction to MOVE One of New Zealand’s largest logistics business with substantial growth opportunities • MOVE is one of New Zealand’s largest logistics companies, providing end-to-end supply chain solutions to SMEs and large corporate customers • MOVE has a diverse customer base across a wide ra
Slide 7: Board & Management
Board & Management Our Board1 MOVE’s Board has a wide breadth of domestic and international experience, providing a balance of industry experts, customer insights, capital markets and technology skill sets to execute strategic objectives Lorraine Witten Chris Dunphy Mark Newman Peter Dryden Danny Ch
Slide 8: FY21 Financial Results Overview
FY21 Financial Results Overview Group Revenue EBITDA (before non-trading items) 360 62 350 60 $15.0m NZ$m NZ$m 340 58 EBIT1 353.3 61.3 330 56 57.5 333.8 $353.3m 320 FY20 FY21 54 FY20 FY21 Revenue NPAT (before non-trading items) EBIT (before non-trading items) 3 15.5 $0.9m NPAT2 2 15.0 NZ$m NZ$m 2.5
Slide 9: MOVE Business Review
MOVE Business Review Key objectives: margin improvement, asset utilisation and profitability MOVE has built a transport and logistics platform of substantial scale. The Board and management see significant unrealised potential for the company to leverage this platform 3. Strategic review priorities
Slide 10: Overview of divisional contribution
Overview of divisional contribution Freight division presents a significant opportunity for MOVE FY21 Revenue FY21 EBITDA FY21 EBIT Freight Investments Investments Investments 7% 9% 14% 28% Freight 27% $353m Freight 48% $61m1 $15m1 Contract Logistics 43% Contract Contract Logistics Logistics 59% 65%
Slide 11: Corporate Overview
Corporate Overview Key Market Metrics (NZ$) Share Price Performance (YTD 2021) Share Price1 $1.62 2.40 600k Market Capitalisation2 $142.0m 2.00 500k Net debt3 $57.0m 1.60 400k Enterprise Value $199.0m Share price (NZ$) Volume traded 1.20 300k Top 5 Shareholders (as of 31 July 2021) 0.80 200k James R
Slide 12: Strategy
STRATEGY Move ions ae M4) | 2 en en
Slide 13: Where We Are Going
Where We Are Going Our Strategy MOVE’s 3-year goal is to deliver growth via continued organic opportunities and execution of identified and potential acquisition targets. Planned organic initiatives to increase total earnings and lift margins include technology driven operating efficiencies, custome
Slide 14: How We Achieve Our Strategy
How We Achieve Our Strategy Key Priorities 1 2 3 Define our Contract Fix the Freight Division Reposition our asset base Logistics offering • Define the segments we are in and • Reduce silos and increase customer • Rationalise leasehold sites and leases solutions for best purpose either invest in or
Slide 15: Overview of MOVE Divisions
OVERVIEW OF MOVE DIVISIONS 15
Slide 16: Divisions post restructuring
Divisions post restructuring MOVE previously operated across five key divisions; Freight, Bulk Liquids, Warehousing & Logistics, International and Specialist Transport. Post restructure, the corporate structure has been simplified to three divisions, with Chief Operating Officers running enterprises
Slide 17: Freight Overview
Freight Overview MOVE is one of the largest express freight and full truck network operators in New Zealand, including Class 5 Heavy vehicles, with a nationwide network and regional breadth - The Freight division has 500 vehicles1 operating out of 29 depots and $169.0m (48%) services various key ind
Slide 18: Contract Logistics Overview
Contract Logistics Overview $151.9m (43%) MOVE has a broad footprint of high-capacity FY21 Group Revenue warehousing, with our bulk fuel and gas tankers $38.4m (59%) visible across the nation FY21 Group EBITDA 2 $12.7m (65%) FY21 Group EBIT 2 - Specialists in transporting fuel, LPG and industrial ch
Slide 19: Investments Overview
Investments Overview Portfolio of companies servicing a broad range of industries - International includes freight forwarding and logistics services - Key brand Alpha, of which MOVE has majority ownership, INTERNATIONAL services the oil and gas industry - MOVE also has operations in vessel / boat tr
Slide 20: Loyal and Diverse Customer Base
Loyal and Diverse Customer Base MOVE has a diverse and loyal base of approximately 3,500 customers across a wide range of sectors with a low level of churn and concentration MOVE Group Customers Significant customers include: Length of Relationships with Group Customers1 Industry Breakdown2 Foodstuf
Slide 21: Financials
Toking care of business since 1869. FINANCIALS = Move
Slide 22: Income statement
Income statement $NZm FY20 FY21 • Improved income due to recovery of sales Income1 346.9 356.8 (post COVID-19 2020 level 4 lockdown), Direct expenses (252.2) (255.3) new warehouses commissioned and significant specialist windfarm project Gross profit 94.7 101.5 • Gross profit margin improved by proj
Slide 23: Balance sheet
Balance sheet NZ$m FY20 FY21 ASSETS Cash and cash equivalents 11.9 13.2 Inventories 0.1 0.1 • MOVE undertook a $65m refinancing, Trade and other receivables 43.7 49.8 Other current assets 0.3 0.7 which was completed in July 2021 Fixed assets1 288.7 274.2 • As a result, MOVE received improved Total a
Slide 24: Cash flow
Cash flow NZ$m FY20 FY21 • Operating lease payments growth due to EBITDA1 57.4 60.7 several new warehouses having been commissioned during FY20/21 Operating lease payments (NZ-IFRS-16)2 (30.9) (36.1) • Increased free cash flow was driven by Pre-NZ-IFRS-16 EBITDA1 26.5 24.5 reduced net capital expend
Slide 25: Divisional overview
Divisional overview NZ$m FY20 FY21 REVENUE Freight 161.2 169.0 Contract Logistics 145.2 151.9 Investments 27.4 32.4 Total revenue 333.8 353.22 EBIT Freight 2.0 1.3 Contract Logistics 11.1 12.7 Investments 5.0 5.4 Corporate costs (3.5) (4.5) Total EBIT1 14.6 15.02 1. Before non-trading items 2. Do no
Slide 26: NZ-IFRS-16 reconciliation
NZ-IFRS-16 reconciliation NZ$m FY20 FY21 Post-NZ-IFRS-16 EBITDA 57.5 61.3 • Increase in occupancy costs off NZ-IFRS-16 impact the back of a number of new warehouses having been Reduction in occupancy costs1 (30.9) (35.8) commissioned during FY20/21 in Increased depreciation 28.5 31.5 Christchurch, A
Slide 27: Offer Details
OFFER DETAILS 27
Slide 28: Capital raising overview
Capital raising overview Accelerated renounceable entitlement offer to raise approximately NZ$40 million - 1 for 3.06 accelerated renounceable entitlement offer of new fully paid ordinary shares (“New Shares”) to raise gross proceed s of approximately NZ$40 million Structure and Size - New Shares is
Slide 29: Use of funds
Use of funds Use of funds NZ$ Proceeds from the Offer will provide balance sheet Reduction of borrowings $20 million flexibility to enable MOVE to accelerate its brand Investment in growth, including: refresh, complete its business restructure, fund • Accelerating the MOVE brand refresh; further cap
Slide 30: Pro-forma Net Debt
Pro-forma Net Debt Following the capital raising, MOVE’s pro-forma net debt will reduce to 0.7x LTM EBITDA prior to the application of use of funds, and 1.5x LTM EBITDA following the use of funds Pro-forma Capitalisation Net Debt to EBITDA1 (as at 30 June 2021) Current (as at 30 June 2021) Pro-forma
Slide 31: Indicative timetable
Indicative timetable Event Date (2021) Institutional Offer Trading halt and announcement of Capital Raising Wednesday, 27 October Institutional Entitlement Offer opens (10:00am NZ time / 8:00am Sydney time) Wednesday, 27 October Institutional Entitlement Offer closes (5:00pm NZ time / 3:00pm Sydney
Slide 32: Appendix I: Industry Overview
APPENDIX I INDUSTRY OVERVIEW 32
Slide 33: Freight & Logistics Industry
Freight & Logistics Industry The industry plays a vital role in New Zealand’s economy, providing essential freight services to many industries. It is a crucial link across supply chains and is key to New Zealand’s competitiveness as an exporting nation Industry Overview Positive outlook driven by in
Slide 34: Key Drivers & Market Analysis
Key Drivers & Market Analysis Freight activity is closely correlated to population and economic growth Key Industry Drivers New Zealand GDP 75 – The transport industry is partially sheltered from New Zealand’s ongoing COVID-19 lockdowns, with an estimated 60% of the workforce able to operate as esse
Slide 35: Key Industry Trends
Key Industry Trends 1 2 3 Sustainability & Shift to Multi Modal 3PL Technology • Increasing demand for environmental • Responding to decarbonisation through • Benefiting from growing global trend sustainability, freight digitisation and fewer truck movements in favour of toward outsourcing warehousi
Slide 36: Appendix II: Supporting Information
APPENDIX II SUPPORTING INFORMATION 36
Slide 37: Our Board – post November ASM
Our Board – post November ASM MOVE’s Board has a wide breadth of domestic and international experience, providing a balance of industry experts, customer insights, capital markets and technology skill sets to execute strategic objectives Lorraine Witten Chris Dunphy Mark Newman Peter Dryden Danny Ch
Slide 38: Our Leadership Team
Our Leadership Team MOVE’s leadership team is highly experienced and brings a wealth of knowledge to the table, having held senior positions across several companies in the transport and logistics industry Chris Dunphy Lee Banks James Watters Chris Knuth Executive Director CFO COO – Contract Logisti
Slide 39: History
History MOVE’s origins date back to 1869 when Hooker Bros’ was founded in Taranaki. Over the past 25 years MOVE has successfully acquired over 20 freight & logistics companies to create a leading New Zealand platform 1869 1989 1993 1995 1999 2002 JF Hooker Management buyout Acquired NZ Express Acqui
Slide 40: Our Vision And Values
Our Vision And Values Our Vision is to be a premier transport and logistics company ✓ Focus on the needs of our customers ✓ Leader in logistics innovation ✓ Aim to be customers’ logistics partner of choice ✓ Welcome new technology and enthusiasm and interest ✓ Easy to do business with ✓ Look for way
Slide 41: Safety. Own it.
Safety. Own it. What we’re doing about Driver safety Safety is critical to our safety Define and implement a robust success Regional focus, under a new management structure solution related to learning culture and "in-vehicle" technical solutions Committed to building a Multiple safety systems to a
Slide 42: Climate change. We're committed
Climate change. We’re committed Our carbon reduction plan > Monitor our emissions to achieve carbon efficiency and sustainable development > Determine minimum carbon reduction commitments, developed in line with New Zealand’s national reduction targets > Four key initiatives 62,249 TONNES > Change f
Slide 43: Hydrogen. Ready.
Hydrogen. Ready. ✓ Operation of hydrogen-powered trucks and being customer-facing to hydrogen suppliers ✓ Ready to be a key player in the emerging hydrogen economy, alongside start-up operators and existing energy companies looking to pivot ✓ Logistics is the achilles-heel of hydrogen; we have the w
Slide 44: Appendix III: Key Risks
APPENDIX III KEY RISKS Move
Slide 45: Key Risks
Key Risks Like any investment, there are risks associated with an investment in MOVE shares. Before investing in MOVE, you should be aware than an investment in MOVE has a number of risks, some of which are specific to MOVE and some of which relate to listed securities generally, and many of which a
Slide 46: Key Risks
Key Risks HEALTH AND SAFETY RISKS MOVE engages in potentially high risk activities including the transportation of petroleum product dangerous goods by road tanker and the operation of heavy equipment (such as trucks and forklifts). As a result, there is a potential risk to the health and safety of
Slide 47: Appendix IV: Foreign Selling Restrictions
APPENDIX IV FOREIGN SELLING RESTRICTIONS 47
Slide 48: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of entitlements (“Entitlements”) or new ordinary shares ("New Shares") of MOVE Logistics Group Limited (“MOVE”) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person
Slide 49: Move
Move
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