Mullen Group Ltd. · TSX:MTL
Mullen — Investor Presentation (April 2024)
23 slides from Mullen's investor presentation, April 2024
Slide 1: Investor Presentation
Investor Presentation FIRST… April 2024 … to FINAL MILE
Slide 2: Disclaimer
DISCLAIMER This report contains forward-looking statements which reflect management’s expectations regarding Mullen Group Ltd.’s (“Mullen Group”) future growth, financial condition, results of operations, performance, business prospects, strategies and opportunities. Wherever possible, words such as
Slide 3: Mullen Group Executive Team
MULLEN GROUP EXECUTIVE TEAM MURRAY K. JOANNA K. MULLEN SCOTT Chair, Senior Executive Officer & Senior Corporate Officer President Tenure: 9 years Tenure: 46 years Previous experience and oversight: Legal, Previous experience: Joined Mullen after human resources, strategy, M&A and receiving a BA in e
Slide 4: Agenda
AGENDA 1 MULLEN GROUP OVERVIEW 2 KEY INVESTMENT HIGHLIGHTS 4
Slide 5: Mullen at a Glance
MULLEN AT A GLANCE Overview Key Statistics • Mullen is one of the largest logistics companies in North America, providing a wide range of transportation, warehousing and 40 Business distribution services C$652M C$2.0Bn C$2B • Provides a diverse set of specialized services related to the energy, unit
Slide 6: Mullen Has Expanded and Diversified into a Multi-Disciplinary Transportation and Logistics Platform
MULLEN HAS EXPANDED AND DIVERSIFIED INTO A MULTI-DISCIPLINARY TRANSPORTATION AND LOGISTICS PLATFORM Total revenue (C$ in millions) 2000 2024 | Added $125.0 million 1500 PNC Credit Facility expanding credit facilities to $375.0 million 1993 | Mullen lists on the Toronto Stock Exchange 2021 | Complete
Slide 7: Mullen Segment Overview
MULLEN SEGMENT OVERVIEW Specialized & Industrial Less-Than-Truckload Logistics & Warehousing U.S. & International Logistics Services 28% 23% 10% REVENUE 39% • Largest final mile network in western • One of Canada’s premier logistics • Offers a wide range of logistics • Serves Canada’s natural resour
Slide 8: Segment Overview: Less-Than-Truckload
SEGMENT OVERVIEW: LESS-THAN-TRUCKLOAD Overview Company vs. Contractors Revenue Mix Key Statistics • Operates the largest final mile network in western Canada and Ontario with service capabilities extending into the United States Company Contractors 11 3,800 168 Business • Owns and operates a network
Slide 9: Segment Overview: Logistics & Warehousing
SEGMENT OVERVIEW: LOGISTICS & WAREHOUSING Overview Company vs. Contractors Revenue Mix Key Statistics • Provides transportation and logistics solutions to customers throughout North America • Diverse network of terminals and transload facilities Company Contractors 10 1,800 69 Business providing saf
Slide 10: Segment Overview: Specialized & Industrial Services
SEGMENT OVERVIEW: SPECIALIZED & INDUSTRIAL SERVICES Overview Company vs. Contractors Revenue Mix Key Statistics • Servicing Canada’s natural resources and infrastructure sectors • Diverse sets of specialized services includes those Company Contractors 17 1,500 76 Business that support the energy, mi
Slide 11: Segment Overview: U.S. & International Logistics
SEGMENT OVERVIEW: U.S. & INTERNATIONAL LOGISTICS Overview Key Statistics • The U.S. & International Logistics segment currently consists of one Business Unit, HAUListic 1 2,700 6,000 • HAUListic owns a leading edge integrated Business Customers in Sub-contractor transportation management system, bra
Slide 12: Strategic Priorities: Diversity & Discipline
STRATEGIC PRIORITIES: DIVERSITY & DISCIPLINE 1 2 3 4 Maximize Commitment to Prioritize Margin Maintain Balance Operational Quality and over Market Sheet Flexibility: Performance of Leadership Share: work with Maintain well our Development Business Units to structured balance Self-Managed drive proce
Slide 13: Agenda
AGENDA 1 MULLEN GROUP OVERVIEW 2 KEY INVESTMENT HIGHLIGHTS 13
Slide 14: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1 Leading, defensible and growing market positions in global transportation and logistics 2 Superior resiliency as demonstrated by Mullen’s 2023 performance 3 Stable and diversified blue-chip customer base 4 Over 10 years of positive FCF generation highlights superior cross
Slide 15: Leading, Defensible and Growing Market Positions in North American Transportation and Logistics
LEADING, DEFENSIBLE AND GROWING MARKET POSITIONS IN NORTH AMERICAN TRANSPORTATION AND LOGISTICS Less-Than-Truckload Logistics & Warehousing ONE OF CANADA’S PREMIER LOGISTICS LARGEST FIRST & FINAL MILE NETWORK AND WAREHOUSING COMPANIES IN WESTERN CANADA AND ONTARIO SERVING ALL OF NORTH AMERICA Specia
Slide 16: Superior Resiliency as Demonstrated by Mullen's 2023 Performance
(SUPERIOR RESILIENCY AS DEMONSTRATED BY MULLEN’S 2023 PERFORMANCE YoY Revenue Growth YoY OIBDA Growth 2.0% (0.2%) (0.5%) (9.1%) (10.9%) (24.8%) (28.7%) (52.1%) Mullen LTL Peers TL Peers Asset-light logistics Mullen LTL Peers TL Peers Asset-light logistics Peers Peers Note: Represents CYE 2022 to CYE
Slide 17: Over 10 Years of Positive FCF Generation Highlights Superior Cross-Cycle Performance
OVER 10 YEARS OF POSITIVE FCF GENERATION HIGHLIGHTS SUPERIOR CROSS-CYCLE PERFORMANCE Free Cash Flow (C$ in millions)1 FCF conversion 2 (%) 300 Free Cash Flow FCF conversion 100.0% 90.0% Includes C$18m of net 250 capex for Jays Regina and Edmonton Premay 80.0% Free Cash Flow Conversion % Equipment Fa
Slide 18: Large, High Quality Unencumbered Infrastructure Asset Base and Facilities
LARGE, HIGH QUALITY UNENCUMBERED INFRASTRUCTURE ASSET BASE AND FACILITIES 1% NWT British Columbia 61% 12% Manitoba 9% Alberta Sask. 7% ~341 10% Ontario Total Facilities Large unencumbered real estate portfolio with an historical cost of ~C$652mm Segment # of Owned Properties # of Leased Facilities L
Slide 19: 2024 Business Plan: Priorities
2024 Business PRIORITIES… Plan: 1. Capital Investments: $80.0 million in new, more efficient operating assets, exclusive of corporate acquisitions or investment in facilities, land and buildings. $70.0 million: Maintenance Capital - to improve our Business Units $10.0 million Sustainability Focu
Slide 20: ESG Overview
ESG OVERVIEW Sustainable Products and Services Responsible Supply Chain • We focus on sustainability within our supply • Promote global best practices within our supply chain chain processes and partnerships • SmartWay Partners are committed to sustainability • Voluntary participation in SmartWay, a
Slide 21: If you got it... A truck driver brought it.
“If you got it… A TRUCK DRIVER brought it.”
Slide 22: Appendix – Other Financial Measures, which consist of supplementary financial measures
Appendix – Other Financial Measures, which consist of supplementary financial measures Supplementary Financial Measures Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expect
Slide 23: Appendix – Other Financial Measures, which consist of supplementary financial measures - continued
Appendix – Other Financial Measures, which consist of supplementary financial measures - continued Net Capital Expenditures Net capital expenditures are calculated by subtracting the amount of cash received from the sale of property, plant and equipment from the amount of cash used to purchase prope