Move Logistics Group Limited · NZX:MOV
Move Logistics — FY2021 Earnings Presentation
36 slides from Move Logistics's earnings presentation, Aug 26, 2021
Slide 1: MOVE Logistics Group Limited 2021 Full Year Results
MOVE LOGISTICS GROUP LIMITED 2021 FULL YEAR RESULTS Chris Dunphy, Executive Director Lee Banks, Chief Financial Officer 26 August 2021
Slide 2: Agenda
Agenda • Overview of Group safety & financial results • Group financial results in detail • Divisional results • Key themes and priorities • Questions and answers FY21 Results Presentation 2
Slide 3: Summary Safety and Financial Results
SUMMARY SAFETY AND FINANCIAL RESULTS
Slide 4: Safety Performance
Safety Performance • Continued reduction in lost time injury frequency rate for the 3rd year in a row • Lifting focus on lead indicators • Accepted into ACC Accredited Employer Program – annual improvements of circa $250k • Recognised with a Global Fleet Champion Award for Company Driver Safety • Ro
Slide 5: FY21 Overview
FY21 Overview OPERATING ENVIRONMENT KEY EVENTS • Continued economic recovery expected however • The Group rebranded to bring its supply constraints could temper growth businesses under the banner of MOVE. • Strengthening demand and constrained supply This signifies a unified presence across driving
Slide 6: Group Summary Performance
Group Summary Performance Year end 30 June 2021 2020 change Revenue $353.2 m $333.8 m ↑ 5.8% Total Income $356.8 m $348.0 m ↑ 2.5% 1 EBITDA $61.3 m $57.5 m ↑ 6.6% EBITDA Margin 17.2% 16.5% ↑ 0.7% EBIT 1 $15.0 m $14.6 m ↑ 2.7% EBIT Margin 4.2% 4.2% no change Net profit after tax 2 $.9 m $ 2.0 m ↓ -55
Slide 7: Detailed Group Financial Results
DETAILED GROUP FINANCIAL RESULTS
Slide 8: Earnings improved post COVID
Earnings improved post COVID • Improved income due to recovery of sales (post COVID), new $000s 2021 2020 Profit Impact % Change warehouses commissioned and significant specialist windfarm Income 1 356,806 346,909 ↑ 2.9% project Direct Expenses (255,319) (252,188) ↓ 1.2% • Gross profit margin improv
Slide 9: Cashflow metrics remain positive
Cashflow metrics remain positive Cashflow • Increased free cash flow driven $000s 2021 2020 Impact % change by lower net capital expenditure EBITDA excluding non cash items 60,674 57,361 ↑ 5.8% • Net capital expenditure down Working capital movement (3,348) (2,156) ↓ 55.3% due to cautious approach p
Slide 10: Sustaining capital expenditure needs to resume
Sustaining capital expenditure needs to resume L/H • Prudent management and Total Total Total $000s Fleet Equipment Improvem ent IT Sustaining Growth Capex minimisation of capex in Freight 1,142 442 128 2 1,714 - 1,714 post COVID environment Specialist 205 77 5 - 287 - 287 • Average age of fleet nee
Slide 11: Refinancing completed
Refinancing completed Debt profile • $65 million refinancing completed in July 2021 • Average debt maturity increased to 4.3 years post refinance, an increase from 1.5 years as at 30 June Group Debt Maturity Profile 2021 (post July 21 refinance) 30 25 Balance Sheet Position • Millions Net debt posit
Slide 12: Divisional Results
DIVISIONAL RESULTS Move
Slide 13: MOVe operates across five divisions
MOVe operates across five divisions Freight BULK LIQUIDS WAREHOUSING INTERNATIONAL SPECIALIST & LOGISTICS One of NZ’s Specialists in NZ’s largest 3PL International Group of largest general transporting fuel, operation, freight forwarding businesses freight and line LPG and industrial providing a and
Slide 14: Freight
Revenue Freight 180 160 • Revenue up 4.8% on last year due to post covid recovery NZD millions 140 120 • EBITDA margin remained flat and is below acceptable levels. 100 80 Low margin pricing and some operational inefficiencies exist 60 FY 2020 FY 2021 • Increase in EBITDA driven by sales uplift but
Slide 15: New brand to move through fleet
New brand to move through fleet FY21 Results Presentation 15
Slide 16: Warehousing and Logistics
Revenue Warehousing and Logistics 80 70 60 • Revenue growth of 3.4% driven by: NZD millions 50 40 - two new warehouses commissioned 30 20 - full year impact of warehouse that commenced in FY2020 10 - • Sales growth from expansion offset by softer sales in Auckland FY 2020 FY 2021 transport volumes a
Slide 17: Bulk Liquids
Revenue Bulk Liquids 90 80 70 NZD millions 60 50 40 • Revenue increased by 5.8% and recovered to pre-covid 30 20 levels 10 - FY 2020 FY 2021 • EBITDA margin decreased due to higher fleet repairs and maintenance and increased staff costs EBITDA • Overheads increased on prior year due to additional st
Slide 18: Rebranded unit for MOVE Fuel
Rebranded unit for MOVE Fuel FY21 Results Presentation 18
Slide 19: Specialist
Specialist • Revenue increase on prior year due to: - continuation of windfarm project started in FY2020 - new business contracted in the construction sector • EBITDA margin decreased 1% to 28% for the year. EBITDA Significant project variations resulted in lower margin 8 7 • ROCE improved due to si
Slide 20: Transformer on the move
Transformer on the move FY21 Results Presentation 20
Slide 21: International
International • Revenue includes $1.5m for acquired Australia business. Revenue Excluding acquisition revenue down 25% on prior year 10 9 • Revenue negatively impacted by port congestion 8 NZD millions 7 6 • Reduced EBITDA due to cost base remaining unchanged 5 4 despite lower sales 3 2 FY 2020 FY 2
Slide 22: Importation and ground services in action
Importation and ground services in action Arrival of America’s Cup yacht per Antonov-124 at Auckland Airport FY21 Results Presentation 22
Slide 23: Key Themes and Priorities
KEY THEMES AND PRIORITIES Move
Slide 24: Key Themes & Priorities
Key Themes & Priorities Business Review Property Lease Re-engagement Customer pricing Fix, Grow, Rationalisation with key customers review Reposition Focus on capex Technology & Leadership and efficiency and process efficiencies sales uplift ROCE to support business Underpinned by a value focussed c
Slide 25: Priority # 1: Fix the Freight Division
Priority # 1: Fix the Freight Division • MOVe Freight is a diverse offering of full truckload and less-than-full-load freight • Our branding has been diverse and often overlapping • We have a strong competency in full truck load transport but less-so in multi- modal freight • A number of our freight
Slide 26: Priority #2: Fix & grow our Contract Logistics offering
Priority #2: Fix & grow our Contract Logistics offering • Both MOVe Fuels and MOVe Logistics share strong contracted multi-year revenue streams • We have identified opportunities to better service contracted customer needs • Long lead times for specialised trailers and new warehouses require targete
Slide 27: Priority #3: Reposition Property
Priority #3: Reposition Property • MOVe has a number of facilities that are sub-optimal • The market for industrial property remains tight • We have a number of long-tail leases which will require repositioning, with a number of sites capable of being repurposed or sub-let on favourable terms e.g. S
Slide 28: MOVe to Improve
MOVe to Improve MOVe is focussed on providing its shareholders, team members and customers with a commitment to improvement. • We will improve our shareholder returns, so that we are measured comparably to our listed peers; • We will improve our facilities and incentivise good outcomes to retain goo
Slide 29: Questions and Answers
QUESTIONS AND ANSWERS Chris Dunphy Lee Banks Executive Director Chief Financial Officer Phone: +61 417 888 930 Phone: +64 27 525 2876 Email: Chris@movelogistics.com Email: Lee.Banks@movelogistics.com
Slide 30: Appendices
APPENDICES Move
Slide 31: Appendix 1: Our Vision And Values
Appendix 1: Our Vision And Values Our Vision is to be Oceania’s premier transport and logistics company CUSTOMER. INNOVATION. We are focused on the needs of our customers We recognise We strive to be leaders in logistics innovation and welcome without customers we have no business and do what it tak
Slide 32: Appendix 2: Non-GAAP EBITDA Reconciliation
Appendix 2: Non-GAAP EBITDA Reconciliation $Millions FY21 FY20 Net profit before income tax (GAAP measure) 2.0 3.5 Add back: Share of loss of associates .1 .1 Net finance costs 11.2 11.8 Impairment of investment in associates .1 .4 Other non operating expenses 1.5 .1 Bargain on acquisition - (1.1) D
Slide 33: Appendix 3: Non-GAAP NPAT Reconciliation
Appendix 3: Non-GAAP NPAT Reconciliation $Millions FY21 FY20 Net profit after income tax (GAAP measure) attributable to owners .9 2.0 Add back: Other non operating expenses, net of tax 1.1 .1 Bargain on acquisition - (1.1) Impairment of associates .1 .4 Deferred consideration and advisory costs expe
Slide 34: Appendix 4: Four year financial summary
Appendix 4: Four year financial summary $000s 2018 2 2019 2 2020 2021 1 Income 331,524 360,056 346,909 356,806 Direct Expenses (248,287) (268,658) (252,188) (255,319) Gross profit 83,237 91,398 94,721 101,487 Gross profit margin 25.1% 25.4% 27.3% 28.4% Divisional overheads (56,802) (61,640) (34,419)
Slide 35: Appendix 5: Definitions Non-IFRS information
Appendix 5: Definitions Non-IFRS information MOVE Logistics Group uses several non-GAAP measures when discussing financial performance and the Board and Management believes this provides a better reflection of the company’s underlying performance. • Average capital employed: Total assets less curren
Slide 36: Disclaimer
Disclaimer This presentation has been prepared by MOVE Logistics Group Limited (“MOV”). The information in this presentation is of a general nature only. It is not a complete description of MOV. This presentation is not a recommendation or offer of financial products for subscription, purchase or sa