Move Logistics Group Limited · NZX:MOV
Move Logistics — TIL Logistics Group — NZSA Auckland Branch meeting February 2019
32 slides from Move Logistics's conference presentation, Feb 27, 2019
Slide 1: TIL Logistics Group Limited
1 TIL LOGISTICS GROUP LIMITED Presentation to NZSA Auckland Branch 27 February 2019 TIL Logistics Group NZSA Presentation Feb 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 • Comprehensive service offer across the supply chain: Freighting, Bulk Liquids, Warehousing & Logistics, Specialist Lifting
Slide 3: Becoming a Leading NZ Transport & Logistics Company
BECOMING A LEADING NZ TRANSPORT & LOGISTICS COMPANY 1869 – John Hooker sets up business as an “Ox Conductor”. Buys an express 1925 (wagon) and 2 horses and setup as a General Carrier. In 1883, begins shipping agency work for Northern SS Co. Buys first motor truck in 1916. 1925 Hooker Bros Ltd is for
Slide 4: Joining the NZX
JOINING THE NZX • Long term exit strategy for founders, that would ensure the continuance and growth of the company and attract a professional Executive Team to lead the company into the future • Alternatives to listing: Continue as private – not practical; Dismantle and sell – reluctant; Sell group
Slide 5: The Transport and Logistics Sector
THE TRANSPORT AND LOGISTICS SECTOR TIL Logistics Group NZSA Presentation Feb 2019 5
Slide 6: The Sector
THE SECTOR • Highly competitive with a large number of operators • Amount of freight activity in New Zealand is principally driven by: • the level of business activity or GDP • international trade in and out of New Zealand • overall population levels • Trend for businesses to utilise third party log
Slide 7: New Zealand Freight by Mode
NEW ZEALAND FREIGHT BY MODE • Primary mode of freight in New Zealand is by road – expected to increase to 93% • TIL primarily utilises road transportation but can utilise rail or coastal shipping for freight transport where it makes economic sense • Road freight is expected to increase by almost 60%
Slide 8: Warehousing and Third Party Logistics
WAREHOUSING AND THIRD PARTY LOGISTICS • An increasingly important part of the transport picture, particularly in NZ • Growing demand for full services from 3PL providers • 3PL services include transportation, warehousing, cross docking, inventory management, packaging and freight forwarding 8 TIL Lo
Slide 9: Future Industry Trends
FUTURE INDUSTRY TRENDS • Bigger Trucks: Current 20 - 23 metres. Next stop 25 metres/60 tonne • Better Standards: WSMP-ACC , Fleetsafe and ISO • Reduced environmental impact: 95% reduced emissions since 1992 • Higher safety rating: OSRS 4 & 5 Star rating • Training: Industry participation in tertiary
Slide 10: Investing in Technology
INVESTING IN TECHNOLOGY Staying up to date with continual technology improvements comes at a cost but it delivers significant benefits to our business. • Leading edge Warehouse Management Systems (Paperless) • In-Cab technologies (ERoad, Go Freight and Tempo) a • Accounting systems (Netsuite) • High
Slide 11: Our Business
Freighting Warehousing & Logistics Bulk Liquids OUR BUSINESS Specialist International TIL Logistics Group NZSA Presentation Feb 2019 11
Slide 12: Freighting
FREIGHTING Opportunities: • Grow the client base • Acquisition opportunities due to market consolidation • Expansion of existing services • Leverage scale and technology to drive productivity and margin improvements • Focus on cost reduction, TIL Logistics is one of the largest freight transport com
Slide 13: Freighting
FREIGHTING • TIL has been built from the regions outwards to create a nationwide network • We’ve kept the regional brands that our customers recognise • Our heritage brands provide strong customer loyalty across multiple regions. 13 TIL Logistics Group NZSA Presentation Feb 2019
Slide 14: Freighting
14 FREIGHTING TIL is not simply a fleet of hundreds of trucks but also a network of cross docks, such as this new facility opened in Cromwell TIL Logistics Group NZSA Presentation Feb 2019
Slide 15: Warehousing & Logistics
WAREHOUSING & LOGISTICS Opportunities: • Bundled freight and logistics offer meeting customer needs across the supply chain • Promote and cross-sell bundled offer to existing and new clients • Strategic acquisition of complementary bolt-on businesses specialising in warehousing and metro deliveries
Slide 16: Warehousing & Logistics
WAREHOUSING & We can manage the logistics of any delivery, large LOGISTICS or small TIL Logistics Group NZSA Presentation Feb 2019 16
Slide 17: Substantial Investment into New Warehousing to Meet Future Demand
SUBSTANTIAL INVESTMENT INTO NEW WAREHOUSING TO MEET FUTURE DEMAND • Tauranga opened in December 2018 • On track to open two new warehouses in April (in Rolleston, Christchurch and Highbrook, Auckland) • Further two warehouses to open by the end of 2019 • Combined, these will increase our total wareh
Slide 18: Bulk Liquids
BULK LIQUIDS Opportunities: • High barriers to entry – specialised fuel distribution equipment, highly trained and Dangerous Goods certified staff • Build on long term strategic partnerships with key customers • Grow service delivery Specialist transporter of Bulk Liquids and one of the largest asso
Slide 19: Specialist
SPECIALIST New sector opportunity • Acquisition of Specialised Lifting and Transport Group in November 2018 makes TIL one of the leading heavy haul providers in NZ • Expanded offer provides significant opportunity for TIL to grow market share • Significant projects due to complete in 2H18; emerging
Slide 20: International
INTERNATIONAL Credit: Brian Carlin/Volvo Ocean Race Opportunities: • Significant market potential • Growth organically or by acquisition • Flow on benefits with increased volumes driving warehousing and transport International freight forwarding with a specialisation in the oil demand and gas energy
Slide 21: 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 22: 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 23: TIL Logistics Group
TIL Logistics Group Investor Presentation December 2017 23
Slide 24: rans
rans 3) Zero tailpipe emissions Instant torque as Use renewable energy P <I Less maintenance and ONG Lemar anaiins casts longer vehicle life (Os) Cue Quick refuelling High vehicle availability &) Efficient i)
Slide 25: 1H19 Key Events
1H19 KEY EVENTS Pleasing period of business growth and increasing sales as TIL benefits from its bundled transport and logistics offer. • Renewal of two significant customer contracts, with Z Energy and Farmlands • Asset acquisition of Specialised Lifting and Transport Group, strengthening existing
Slide 26: 1H19 Results Overview
1H19 RESULTS OVERVIEW The increased operating costs noted in 2H18 have • Sales revenue and total income continue to trend continued and are being closely managed: upwards, with particularly strong sales performances from Freighting and Warehousing & Logistics in 1H19. Changes in the operating enviro
Slide 27: Business Division Revenue and EBITDA
BUSINESS DIVISION REVENUE AND EBITDA REVENUE 1H19 REVENUE Segment reporting has changed to five 200 divisions to better reflect TIL’s business 150 operations. $ Millions 100 50 Freighting, Warehousing & Logistics and Bulk Liquids are the main contributors 0 1H18 1H19 to the group providing 96% of re
Slide 28: Outlook
“TIL’s expertise in the freight and logistics sector means we are OUTLOOK well set up to meet all our customers’ needs. Our bundled transport and logistics offer is now starting to show dividends, • Activity levels across the industry remain high and the long term outlook is positive and our market
Slide 29: Contact
CONTACT Alan Pearson TIL Logistics Group Limited Chief Executive Officer Tel: 021 806 678 Email: alan.pearson@til.kiwi 29 TIL Logistics Group NZSA Presentation Feb 2019
Slide 30: Board and Management
BOARD AND MANAGEMENT BOARD GROUP EXECUTIVE TEAM • Trevor Janes, Independent Chair • Alan Pearson, CEO • Greg Kern, Non-executive Director • Lee Banks, CFO • Lorraine Witten, Independent Director • Deana Barnard, Group HR Manager • Danny Chan, Independent Director • Maurice Corkery, CIO • Jim Ramsay,
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: 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
TIL Logistics Group — NZSA Auckland Branch meeting February 2019 on 6ix