Slide 1: Move Logistics Group Limited FY24 Results
MOVE LOGISTICS GROUP LIMITED FY24 RESULTS 29 August 2024
Slide 2: FY24 Results Snapshot
FY24 RESULTS SNAPSHOT Results below aspirations; significant improvement targeted in FY25 • 2H24 Normalised EBITDA ahead of 1H24, in line with INCOME EBITDA EBT NLAT2 Normalised1 Normalised1 guidance $301.7m $ 27.6m $(25.7)m $(48.1)m • Disappointing result FY23: $347.7m FY23: $47.4m FY23: $(5.8)m FY
Slide 3: Depressed economic activity impacting revenue
Approx. 70% of MOVE’s Depressed economic activity top 20 clients are in the impacting revenue Retail sector Retail Sales Trend Retail Fuel Spend Retail exposure includes: Grocery, packaging, liquor, fuel June 19 June 20 June 21 June 22 June 23 June 24 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Other
Slide 4: Responding to Market & Business Challenges
RESPONDING TO MARKET & BUSINESS CHALLENGES Slow to react; accelerated change plan in place from 1 July 2025 HEADWINDS STRONGER FOR 1H24: Customer activity continued to fall with significant LONGER reduction in demand across most sectors. Increased cost as investment was made in fleet, people and tec
Slide 5: Accelerated Change Plan
ACCELERATED CHANGE PLAN Goals to improve financial performance, build positive cashflow and deliver value to shareholders, while continuing to provide great service to MOVE customers • Maximise performance, productivity and utilisation RECALIBRATE THE • Network, fleet and team optimisation – retain
Slide 6: Strategy for Growth
STRATEGY FOR GROWTH Our Vision: To be the preferred freight and logistics provider in Australasia Our Mission: To keep our customers moving Our Mantra: Customer, Safety, Team FY24 Results Presentation 6
Slide 7: Good Progress on Fundamentals
GOOD PROGRESS ON FUNDAMENTALS END TO END SUPPLY CHAIN INCREASINGLY MULTI-MODAL STEP CHANGE IN CULTURE Strengthening our supply chain Lowering cost to serve, providing Moving from silo to group focus offering. Addition of Oceans trans- optionality for customers and across the organisation. Increased
Slide 8: Business Division Performance
BUSINESS DIVISION PERFORMANCE
Slide 9: Freight
FREIGHT Disappointing result despite onboarding of new Revenue: $120.7m customers; Freight reset further hampered by adverse Normalised EBT: $(18.6)m trading conditions Revenue • Short term cost impact from investment into owner-drivers and 200 180.9 146.0 fleet leases ahead of anticipated growth 15
Slide 10: Contract Logistics
CONTRACT LOGISTICS Warehousing hard hit by reduced demand; Fuel and Revenue: $137.0m Normalised EBT: $0.6m Tankers remains stable Warehousing: Revenue • Softer demand, increasing competition and customers insourcing - 180 154.2 159.4 impacting on results, capacity below desired levels 150 137.0 120
Slide 11: International
INTERNATIONAL Revenue: $19.1m Freight forwarding demand softer; continued Normalised EBT: $(2.2)m investment into Oceans pilot Revenue • International freight volumes and pricing have retracted 19.8 19.1 20 from highs in 2023 to more normal trading levels 15 10.9 NZ$m • Investment into Oceans strate
Slide 12: Specialist
SPECIALIST Revenue: $17.1m Project work delayed, strong pipeline in place Normalised EBT: $0.5m Revenue • Retraction of business and public spending – number of 20 18.7 17.1 14.2 projects put on hold or delayed into future periods – these 15 NZ$m remain ongoing 10 5 • Strong pipeline of work in plac
Slide 13: Financial Results
FINANCIAL RESULTS FY24 Results Presentation 13
Slide 14: FY24 Group Summary
FY24 GROUP SUMMARY Results reflect: $Millions FY24 FY23 • Impact of adverse trading conditions on Total Income 301.7 347.7 customer demand and revenue Normalised EBITDA1 27.6 47.4 • Investment ahead of economic recovery Normalised EBT1 -25.7 -5.8 which has not yet occurred NLAT2 -48.1 -7.2 • Slow to
Slide 15: Earnings Before Tax
EARNINGS BEFORE TAX • FREIGHT: Soft sales due to economic downturn and despite new customers being onboarded. High fixed asset and cost base. • CONTRACT LOGISTICS: Softer short term customer demand for warehousing and reduced Fuels volumes. • INTERNATIONAL: Mechanical issues impacted Oceans pilot -
Slide 16: Cash Flow
CASH FLOW change $000s FY24 FY23 24 v 23 Normalised EBITDA excl. non-cash items 27,428 48,419 (20,991) • Cash conversion of 125% remains stable and an Non-trading - cash items (1,059) (701) (358) improvement on prior year, despite earnings Working capital movement 6,593 1,172 5,421 decline Net opera
Slide 17: Capex
CAPEX Focus on maximum utilisation of existing assets; longer term Capital Expenditure ($m) commitments realised in FY24 FY24 FY23 Fleet 1.3 3.9 Ship - 8.5 Capital expenditure decreased by $14.7m as a result of: Technology 0.1 1.5 Other 0.4 2.6 • Reduced capital needs to support lower level of earni
Slide 18: Balance Sheet
BALANCE SHEET Four-year reduction in Net Debt Significant four-year reduction in 80 net debt 60 • Total borrowings $26.6m plus bank $millions 40 guarantees of $9.0m 20 • Net debt of $17.0m (up $1.4m) 0 • In compliance with all banking Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 covenants Borrowings (i
Slide 19: Looking Forward
LOOKING FORWARD Move
Slide 20: Market Outlook
MARKET OUTLOOK • Continuation of current economic and sector conditions expected until at least 2025 calendar year • Freight and logistics demand will increase with economic improvement • Long term macro trends remain positive • Increasing investment in renewable energy projects – MOVE’s Specialist
Slide 21: FY25 Performance Outlook
FY25 PERFORMANCE OUTLOOK Change plan will Strategic Priorities create a stronger, • Recalibrate operations – right size the streamlined business. organisation • Profitable revenue growth – sales led revenue recovery FY25 turnaround year; • Balance sheet resilience FY26 return to profitable earnings
Slide 22: Sound Business Fundamentals
SOUND BUSINESS FUNDAMENTALS Nationwide network and specialised expertise Multi-modal, end to end supply chain solutions Customer focused, culture of service excellence Experienced and passionate team Competitive, value for money, reliable and resilient provider FY24 Results Presentation 22
Slide 23: Appendices
APPENDICES For more information: Lee Banks Chief Financial Officer Phone: +64 27 525 2876 Email: Lee.Banks@movelogistics.com FY24 Results Presentation 23
Slide 24: Financial Measures
Financial Measures MOVE Logistics Group uses several non-GAAP measures when discussing financial performance, and believe these provide a better reflection of the company’s underlying performance. Glossary: $Millions FY24 FY23 • EBITDA: Earnings before interest, tax, depreciation, amortisation Net p
Slide 25: 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