Slide 1: TIL Logistics Group Limited FY19 Results Presentation
TIL LOGISTICS GROUP LIMITED FY19 Results Presentation for the year ended 30 June 2019
Slide 2: TIL Logistics Group
• One of New Zealand’s largest domestic freight and logistics platforms • Nationwide network of branches, depots and warehouses and dedicated team of employees and contractors • Travel over 80 million kms each year, delivering product to over 30,000 sites • Comprehensive service offer across the sup
Slide 3: FY19 Key Events
FY19 KEY EVENTS Period of business growth and increasing sales across all divisions, with results reflecting investment into growth initiatives and a higher cost base. • Acquisition of Specialised Lifting and Transport Group, strengthening existing offer and providing entry into a new sector. Delive
Slide 4: FY19 Results Snapshot
FY19 RESULTS SNAPSHOT • Good first half growth, with revenue gains $Millions FY19 FY18 partially offset by unplanned cost impacts in second half of the year and a slowdown in Sales Revenue 355.1 325.6 4Q19. EBITDA 25.4 6.9 • Sales revenue and total income continue to Adjusted EBITDA 28.0 26.2 trend
Slide 5: Sales Revenue
SALES REVENUE Sales revenue of $355.1, an increase of $29.5m (up 9%) • Continuing trend of year on year improvement in sales revenue and total income. • Uplift in sales revenue in all sectors. 355.1 350 325.6 • Freighting – good first half but softer demand in 2H19. 300 • Growth from Warehousing & L
Slide 6: Operating Expenses
OPERATING EXPENSES • Increased cost environment is being managed closely: Fluctuating fuel prices; higher road user Adjusted Operating Expenses charges and regional fuel taxes, increased wage costs (excluding Depreciation & Amortisation) and higher costs for parts and equipment due to the lower exch
Slide 7: FY18:FY19 EBITDA Bridge
FY18:FY19 EBITDA BRIDGE EBITDA (adjusted) up 7% on prior year to $28.0m. • Improvements in Freighting, Specialist and International. • Focus on margins generated improving results in Freighting. • Warehousing & Logistics reflects investment into new and expanded facilities leading to increased prope
Slide 8: FY18:FY19 NPAT Bridge
FY18: FY19 NPAT BRIDGE NPAT of $4.1m for full year. Adjusted NPAT of $6.7m. First half in line with expectations with earnings gains in second half offset by increased costs and $2.6m additional provision for deferred acquisition consideration. Compared to FY18, the FY19 result reflects: • Increase
Slide 9: Capital Management
CAPITAL MANAGEMENT $ Millions FY19 FY18 • Uplift in operating cashflow to $19.4m. • Net debt increased due to $15m acquisition of SLTG Operating cashflow 19.4 10.4 and capital expenditure (which was partly funded by Net Debt 77.9 71.0 operating cashflow). Capital expenditure 11.4 4.4 Capital Expendi
Slide 10: Balance Sheet
BALANCE SHEET $Millions FY19 FY18 • Increase in trade payables mainly to SLTG acquisition. Cash and cash equivalents 6.4 2.9 Trade and other receivables 51.0 46.6 • The acquisition of SLTG increased the value of Property, plant and equipment 92.3 74.6 property, plant and equipment, as well as the ne
Slide 11: IFRS 16: Adoption Impact in FY20
IFRS 16: ADOPTION IMPACT IN FY20 • TIL has a large number of vehicle leases, as well as long term property leases. • Upon adoption from 1 July 2019, NZ IFRS 16 will have a material impact on a number of elements of the Group’s balance sheet and income statement, but no material impact on the Group’s
Slide 12: Division Review
Freighting Warehousing & Logistics Bulk Liquids DIVISION REVIEW International Specialist TIL Logistics Group FY19 Results Presentation 12
Slide 13: Business Division Revenue and EBITDA
BUSINESS DIVISION REVENUE AND EBITDA REVENUE FY19 REVENUE • Segment reporting has been changed to 400 five divisions to better reflect TIL’s 300 business operations. $ Millions 200 100 • Freighting, Warehousing & Logistics and Bulk Liquids are the main contributors to 0 FY18 FY19 the group providing
Slide 14: Half Yearly Revenue Performance
HALF YEARLY REVENUE PERFORMANCE FREIGHTING: Good first half impacted by first signs of FY18 to FY19 SIX MONTHLY REVENUE slowing market in 2H19. 90 WAREHOUSING & LOGISTICS: Three new warehouses 80 opened (Dec, April and May) with partial revenue 70 benefits. Full benefits to be seen in FY20. 60 BULK
Slide 15: Half Yearly Adjusted EBITDA Performance
HALF YEARLY ADJUSTED EBITDA PERFORMANCE FREIGHTING: Pleasing EBITDA growth in FY19, although still room for improvement. 1H benefit FY18 TO FY19 SIX MONTHLY EBITDA from seasonal demand. Impact of insurance event 6 in 2H19; tightening of legislation leading to increased R&M investment; investment int
Slide 16: Freighting
FREIGHTING Revenue $149.2m, +4% EBITDA $8.2m, +43% • Focused effort on margin is delivering improved result. • Continual investment in fleet upgrades to ensure best in class safety, reduced emissions and increased fleet availability. • Increased lease costs with more trucks now being leased rather t
Slide 17: Warehousing & Logistics
WAREHOUSING & LOGISTICS Revenue $106.7m, +10% EBITDA $9.1m, -5% • Opening of three new warehouses in FY19 and investment into three additional/expanded warehouses planned for FY20. • Combined, new warehouses will deliver 25% additional capacity for future growth. Will position MOVE to be one of the
Slide 18: Bulk Liquids
BULK LIQUIDS Revenue $78.1m, +5% EBITDA $8.3m, -20% • Renewal of two key customer contracts – with Z Energy and Farmlands. • Results reflect increased cost base to support renewed customer contracts; more leasing of trucks leading to higher lease costs, lower consumer demand due to high fuel prices
Slide 19: Specialist
SPECIALIST Revenue $13.1m, +445% EBITDA $2.6m • Specialised Lifting and Transport Group acquired in November 2018. • Stand out performance with results meeting high expectation. • Provided synergies and support for the previously sub-scale Multi- Trans business. • Offers significant opportunity for
Slide 20: International
INTERNATIONAL Revenue $8.0m, +8% EBITDA $1.5m, +31% International division providing worldwide Logistics, Customs Brokerage, ISO Tank & Shipping Agency services, with offices in Auckland, New Plymouth, Nelson, Christchurch and Melbourne. • Positive year with increased activity in the sector. • ISO T
Slide 21: Health & Safety
Agreement signed with driver safety solutions provider, Autosense, which will provide induction, ongoing training and HEALTH & SAFETY in-cab simulator training as well as in-cab driver fatigue technology. We take the safety and wellbeing of our employees, contractors, owner drivers and communities v
Slide 22: Environment
ENVIRONMENT • TIL is committed to the reduction of carbon emissions through our membership of the Climate Leaders Coalition. • CEMARS review completed in July 2019. Developed Emissions Management and Reduction Plan with annual targets for consumption. • Carbon footprint is dominated by diesel fuel.
Slide 23: Examples of Initiatives
GROUP SUSTAINABILITY GOALS FOR FY20 We recognise our operations have a significant carbon footprint and are taking action to reduce our impact. Alternative Fuel sources: Hybrid/Electric/Hydrogen Energy/Electricity Audits EXAMPLES OF Engage with Innovation Hub on "new" ways Used PPE Disposal Carbon F
Slide 24: People
Nelson’s Operational Projects Manager, Grant Thorn, has worked for TIL since 1978, more than 40 years. PEOPLE • Experienced Board and strengthened Leadership team. High levels of long service employees. Industrial relationships are solid. • Challenges with driver shortages. Looking to offer cadetshi
Slide 25: TIL's Strengths
TIL’S STRENGTHS • Diverse customer base and sector activities create broad-based exposure to economic growth • Nationwide network built on foundations of regional strength • One of only a few operators providing a comprehensive nationwide service offering • End to end transport and logistics supply
Slide 26: Growth Drivers and Opportunities
GROWTH DRIVERS AND OPPORTUNITIES INCREASE SALES AND CUSTOMER DEMAND: • Promote TIL’s bundled freight and logistics offer to new and existing customers • Capture a greater proportion of existing customers’ supply chains • Offer specialised services to targeted customers IMPROVE UTILISATION LEVELS OF
Slide 27: Outlook
OUTLOOK • Expect NZ economic growth to continue in line with current rates of 2% • Watching business confidence and economy closely • Expect continuing high demand from food, rural, building & construction sectors • Investing into new warehousing with two more warehouses expected to open in FY20 plu
Slide 28: Contact
CONTACT • Alan Pearson • TIL Logistics Group Limited • Chief Executive Officer • Tel: 021 806 678 • Email: alan.pearson@til.kiwi TIL Logistics Group FY19 Results Presentation 28
Slide 29: Division Revenue and EBITDA
DIVISION REVENUE AND EBITDA YEAR ON YEAR GROWTH DIVISION REVENUE FY18 FY19 Variance DIVISION REVENUE 1H19 2H19 Freighting 144.1 149.2 4% Freighting 76.4 72.8 Warehousing & Logistics 97.4 106.7 10% Warehousing & Logistics 52.8 53.9 Bulk Liquids 74.4 78.1 5% Bulk Liquids 38.9 39.2 International 7.3 8.
Slide 30: Board and Management
BOARD AND MANAGEMENT BOARD GROUP EXECUTIVE TEAM • Trevor Janes, Independent Chair • Alan Pearson, CEO • Lorraine Witten, Independent Director • Lee Banks, CFO • Danny Chan, Independent Director • Deana Barnard, Group HR Manager • Jim Ramsay, Executive Director • Maurice Corkery, CIO • Dean Crackett,
Slide 31: Glossary
GLOSSARY • Non-GAAP financial information: TIL Logistics Group uses several non-GAAP measures when discussing financial performance. These include Earnings Before Interest, Tax, Depreciation and Amortisation, Share of (Loss)/Profit of Associates and Impairment of Goodwill (EBITDA), adjusted EBITDA e
Slide 32: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $Millions FY19 FY18 Net profit / (loss) before income tax (GAAP measure) 7.4 (9.2) Add back: Share of loss of associates 0.4 0.1 Impairment of goodwill - 0.2 Finance costs/(interest income) 4.0 3.3 Depreciation & Amortisation 13.6 12.4 EBITDA (non-GAAP measure) 25.4 6.9 Non-t
Slide 33: Disclaimer
DISCLAIMER This presentation has been prepared by TIL Logistics Group Limited (“TLL”). The information in this presentation is of a general nature only. It is not a complete description of TLL. This presentation is not a recommendation or offer of financial products for subscription, purchase or sal