Wiseway Group Ltd. · ASX:WWG
Wiseway — H1 2022 Earnings Presentation
34 slides from Wiseway's earnings presentation, Mar 21, 2022
Slide 1: 1H22 Results Presentation ASX announcement cover note
21 March 2022 Wiseway Group Limited (ASX:WWG) ABN 26 624 909 682 For personal use only Registered office: 39-43 Warren Avenue BANKSTOWN NSW 2200 T: +612 9790 7888 Wiseway Group Limited (ASX:WWG) 1H22 Results Presentation Please see attached the 1H22 Results presentation. Authorised for release by th
Slide 2: Wiseway Group Limited 1H22 Results Presentation
Wiseway Group Limited For personal use only ASX: WWG 1H22 Results Presentation 21 March 2022 Florence Tong - Managing Director 1
Slide 3: Contents
Contents 1H22 results overview1 3 For personal use only Acquisition of TAF E-Logistics (Asia) Pte Ltd (‘‘TAF’’) 13 Business overview 16 Strategy and outlook 21 Appendix 28 1 Based on the Company’s 1H22 Interim Financial Report (Appendix 4D) lodged to the ASX on 28 February 2022. 2
Slide 4: 1H22 results overview
For personal use only 1H22 results overview 3
Slide 5: A strong 1H22 result – global expansion delivering organic revenue growth
A strong 1H22 result – global expansion delivering organic revenue growth Key financial highlights Business highlights For personal use only $77.9m Strong revenue growth, prudent cost management practices, Group Revenue and steady profitability margins Up 11.8% from pcp $31.0m Integration and divers
Slide 6: An established global network delivering scale and revenue synergies
An established global network delivering scale and revenue synergies For personal use only Wiseway US Shanghai Los Angeles Wiseway branch Wiseway China Guangzhou Wiseway branch Darwin1 Wiseway Wiseway Singapore Brisbane Headquarters 1 warehouse facility Perth 1 warehouse facility Sydney Auckland Ade
Slide 7: Strong momentum in organic revenue growth
Strong momentum in organic revenue growth Revenue growth (%) For personal use only 120 26.9% Strong organic revenue growth 11.8% • 11.8% increase in Group revenue driven predominantly by 80 49.0% 15.0% 54.6% significant growth in non-traditional business segments which now contribute 45% of the Grou
Slide 8: Sustained positive profitability with steady margins
Sustained positive profitability with steady margins ($m unless stated otherwise) 1H22 1H21 Change % • Gross profit was $18.6 million up 2.8% from 1H21. For personal use only Revenue 77.9 69.7 11.8% Direct expenses (59.2) (51.5) 15.0% • Tightening gross margin by 2.1 ppts, reflecting more Gross prof
Slide 9: Strategic management of working capital and debt levels
Strategic management of working capital and debt levels For personal use only Balance Sheet 31 Dec 2021 30 Jun 2021 Change % Strategic investment in working capital Cash and cash equivalents 2.3 9.9 -77.2% • Maintained strong liquidity with a steady current ratio of 1.1 Trade and other receivables 1
Slide 10: A robust/healthy cash flow position
A robust/healthy cash flow position Operating cash flow For personal use only ($m unless stated otherwise) 1H22 1H21 Change % • Operating cash flow was negative during 1H22, reflecting Net cash from operating activities (1.8) 7.5 -123.4% significantly higher sales activity in December as well as one
Slide 11: An integrated freight and logistics operator with diversified income streams
An integrated freight and logistics operator with diversified income streams Revenue growth driven by non-traditional business segments For personal use only Export Imports and Distribution Road Transportation GSA/CSA Dry cargo Perishables General cargo Sea freight Airtruck Airnex (air freight) (air
Slide 12: A diversified business across segments, customers and geographies
A diversified business across segments, customers and geographies For personal use only 45% 25% ~37% Revenue contribution from Revenue share from the Share of perishables and imports freight non-traditional business segments, Company’s top five customers, volume with fast growing Asian and global up
Slide 13: Disciplined progress on strategic business initiatives
Disciplined progress on strategic business initiatives 1H22 achievements For personal use only • Completed the acquisition of TAF e-Logistics in August 2021 and Strategic successfully integrated the business and operations into the Group milestones • Acquired a new IATA license for Wiseway’s Shangha
Slide 14: Acquisition of TAF E-Logistics (TAF)
For personal use only Acquisition of TAF E-Logistics (TAF) 13
Slide 15: Strategic acquisition of TAF
Strategic acquisition of TAF Financial metrics1 For personal use only $1.7m Annual revenue IATA-licensed air freight company. for FY20 Years serving Southeast Asian and $1.1m 30 ASEAN logistics market. Net assets As at 30 June 2020 Customs bonded warehouse strategically located within Singapore Airp
Slide 16: Acquisition of TAF – strategic presence in Southeast Asia's logistics hub
Acquisition of TAF – strategic presence in the heart of Southeast Asia’s logistics hub Singapore – A strategic cargo hub For personal use only in Southeast Asia #1 Australia’s inbound and outbound air freight trade destination1 18% of Australia’s total airfreight traffic activity1 3m tonnes annual a
Slide 17: Business overview
For personal use only Business overview 16
Slide 18: Robust growth journey with significant milestones
Robust growth journey with significant milestones IPO For personal use only 2005 2018 2020 2022 Foundation for a succesful business Business model diversification Global integrated operating platform ✓ Established warehouses in six major ✓ ASX-listing in October 2018, raising $20 million. ✓ Investme
Slide 19: Vision and values
Vision and values For personal use only Faster Safer Wiser Innovation Integrity Deploy the latest industry innovations and Offer the highest levels of transparency in internal proprietary technologies that delivering logistics services stemming from optimise operations and enhance customer a deep un
Slide 20: Agile and globally scalable business model
Agile and globally scalable business model Global network and footprint Leading market position For personal use only ✓ Established presence across six ✓ Established market position with high continents with in-country presence in New barriers to entry. Zealand, China, Singapore and the US. ✓ #1 Aus
Slide 21: Strategic partnerships in an industry built on relationships
Strategic partnerships in an industry built on relationships and connecting people For personal use only Long-standing Global team Strategic industry customer relationships capabilities partnerships ✓ A diverse portfolio of ✓ Experienced leadership team, ✓ Long-standing GSA and customers supported b
Slide 22: Strategy and outlook
For personal use only Strategy and outlook 21
Slide 23: A focused global growth strategy with disciplined execution
A focused global growth strategy with disciplined execution For personal use only Diversify Integrate Expand • Continue to expand product offerings • Provide logistics solutions through a lean, • Build on expansion momentum in Los Angeles beyond the traditional dry cargo air integrated and tech-enab
Slide 24: Expanding global addressable market led by the US and Asia Pacific
Expanding global addressable market led by the US and Asia Pacific regions US$145b 11% 57% For personal use only Market size of US freight Annual growth in global Asia Pacific’s share of forwarding market1 air freight traffic activity global e-commerce logistics over 2020-2025 period2 growth over 20
Slide 25: Uniquely positioned to benefit from emerging industry trends
Uniquely positioned to benefit from emerging industry trends Expanding international trade industry with new free trade agreements, and For personal use only logistics companies becoming increasingly globalised. Scale investment in global logistics infrastructure (e.g. the Belt and Road Initiative)
Slide 26: Clear focus on future priorities in the business
For personal use only Clear focus on future priorities in the business 2H22 Priorities • Set up a new Wiseway branch in Chicago including an office, customs-bonded warehousing space, quarantine facility and Strategic on-ground operations team • Identify the next locations for future growth within As
Slide 27: Summary and outlook
Summary and outlook Summary For personal use only ► Strong revenue growth, driven by non-traditional segments, demonstrates value of strategic investment in diversification, integrated operations, and global expansion opportunities ► Strategic utilisation of cash resources to grow working capital, i
Slide 28: Questions
For personal use only Questions 27
Slide 29: Appendix
For personal use only Appendix 28
Slide 30: Profit and Loss Statement
Profit and Loss Statement Profit and loss ($m unless stated 1H22 1H21 Change % • Slim reduction of 2.1 ppts in gross margin, a result of more For personal use only otherwise) competitive pricing to secure new customers and establish strong Revenue 77.9 69.7 11.8% foothold in new global markets Direc
Slide 31: Balance sheet
Balance sheet Financial position 31 Dec 2021 30 Jun 2021 Change % ($m unless stated otherwise) For personal use only Current assets: Cash and cash equivalents 2.3 9.9 -77.2% Trade and other receivables 13.7 6.7 102.9% Inventories 0.1 0.1 - Other assets 4.3 4.2 0.5% Total current assets 20.3 21.0 -3.
Slide 32: Statement of cash flow
Statement of cash flow ($m unless stated otherwise) 1H22 1H21 Change % For personal use only Cash Receipts from Customers 78.7 69.2 13.7% Cash paid to suppliers and employees (79.9) (61.0) 31% Net Interest Paid (0.6) (0.7) -14.7% Net cash from operating activities (1.8) 7.5 -123.4% Acquisition of pr
Slide 33: Disclaimer
Disclaimer For personal use only This presentation contains summary information about Wiseway Group Limited (Wiseway) and its subsidiaries and their activities. The information in this presentation does not purport to be complete. It should be read in conjunction with Wiseway’s other periodic and co
Slide 34: Contact us
For personal use only Contact us Company/investor enquiries: admin@wiseway.com.au Media/investor enquiries: Richard Martin +61 426 609 001 33 Wiseway@symbolstrategic.com.au