Slide 1: MOVE Logistics Group Limited HY23 Results
MOVE LOGISTICS GROUP LIMITED HY23 RESULTS 23 February 2023
Slide 2: HY23 Performance Snapshot
HY23 PERFORMANCE SNAPSHOT INCOME EBITDA EBIT NLAT3 Normalised2 Normalised2 $169.5m $21.9m $2.2m $(1.5)m Continuing Operations1 1H22: $176.6m 1H22: $28.1m 1H22: $6.4m 1H22: $(1.4)m LTIFR CAPEX GEARING OPERATING CASHFLOW 15.37 $13.0m 23.0% $26.9m Dec 21: 17.75 1H22: $2.2m 1H22: 22.6% 1H22: $25.2m 1. C
Slide 3: HY23 Operating Environment
HY23 OPERATING ENVIRONMENT Softer conditions than expected despite COVID recovery • Increasing inflationary pressure, particularly fuel and labour costs • Ongoing Covid impact, mainly in absenteeism • Driver shortages remain acute, with increased competition for Owner Drivers pushing up costs • Weat
Slide 4: Update on Key Strategic Priorities
UPDATE ON KEY STRATEGIC PRIORITIES Primary focus on resetting and strengthening core business • Freight improvement taking longer than anticipated – focus remains on service levels to increase value proposition, digital transformation and transition to asset light model • Further work underway to im
Slide 5: Investment into Strategy
INVESTMENT INTO STRATEGY 1H23 result includes investment in digital transformation and diversification $000s 1H23 Oceans – start up costs 762 Digital Technology - FuseIT 619 Vertical Diversification - Dairy 190 Total 1H23 EBITDA Impact 1,571 HY23 Results 5
Slide 6: Financial Results
FINANCIAL RESULTS HY23 Results 6
Slide 7: HY23 Group Summary
HY23 GROUP SUMMARY $Millions 1H23 1H22 1H23:22 • Softer half year results as Freight Continuing Operations1 $ change improvement programme continues and Total Income 169.5 176.6 (7.1) investment made into growth initiatives Normalised EBITDA2 21.9 28.1 (6.2) • Solid revenue from Contract Logistics a
Slide 8: Normalised EBITDA
NORMALISED EBITDA • Freight improvements and growth initiatives will be primary drivers of EBITDA gains going forward • Freight: Contracted the Freight customer base in FY22 to address low margin service provision • Freight: Investment in network optimisation, Customer contraction: $(2.3)m Network o
Slide 9: Balance Sheet Remains Strong
BALANCE SHEET REMAINS STRONG change • MOVE has sufficient funding in place to December 22 June 22 Dec22 v $000s Jun22 continue with its strategic plans Cash 12,590 14,940 -2,350 Trade and other receivables 56,266 60,294 -4,028 • Total facilities - $46m Assets held for sale 25,491 25,263 228 Undrawn
Slide 10: Cash Flow
CASH FLOW IMPROVED CASH CONVERSION change • Free cash flow reduction due to capital $000s 1H23 1H22 23 v 22 expenditure relating to Oceans expansion Normalised EBITDA excl. non-cash items 21,684 28,251 -6,567 • Working capital improved due to reduction Restructuring costs 3 (747) +750 in overdue deb
Slide 11: Operational Performance
OPERATIONAL PERFORMANCE HY23 Results 11
Slide 12: Freight
FREIGHT Disappointing HY performance, improvement Revenue: $80.9m, -11% programme taking longer than anticipated EBITDA: $4.6m, -55% • Softer 1H23 sales due to inflationary pressures on customer demand, uprating and wet weather affecting customer projects Revenue • Higher fuel prices passed onto cus
Slide 13: Contract Logistics
CONTRACT LOGISTICS Steady state with excellent management and strong Revenue: $80.5m, +1% EBITDA: $17.8m, -1% customer relationships Revenue • EBITDA margin remains solid at 22.1% 80 • Warehouse capacity at high levels with high existing customer NZD millions 60 renewal rate alongside increasing new
Slide 14: International
INTERNATIONAL Revenue: $6.6m, +26% Commencement of Oceans strategy EBITDA: $1.2m, -21% • EBITDA margin reduced to 17.9% - reflects start up costs of Revenue Oceans strategy 8 6 • International freight volumes have remained high, some easing in NZD millions 5 freight pricing 3 • Investment into start
Slide 15: Looking Forward
LOOKING FORWARD HY23 Results 15
Slide 16: Strategy for Growth
OUR VISION STRATEGY FOR GROWTH To be the best freight and logistics company in Australasia and a leader in sustainable logistics services. HY23 Results 16
Slide 17: Strategic Pillars and 2H23 Initiatives
STRATEGIC PILLARS AND 2H23 INITIATIVES Strategic review underway by new CEO BETTER STRONGER BUSINESS SMART GROWTH & EXPANSION TAKING CARE OF WHAT MATTERS • Work our assets smarter • Deliver for our customers • Having a positive impact on our STRATEGIC PILLARS • Build our multi-modal offer • Upsize o
Slide 18: Resilience
RESILIENCE Prepared for change • Strong cyber strategy, subject to regular review • Reliable Freight, Fuel and Warehouse networks, providing customers with certainty despite weather events • Oceans strategy supporting increased role of coastal shipping in New Zealand’s transport network; will provid
Slide 19: 2H23 Outlook
2H23 OUTLOOK Primary focus on Freight improvement and Oceans operations • Potential moderation in customer activity due to economic conditions; impact of wet weather on operations and customers in January and February • Continuing to strengthen the business foundation and invest into resources, capa
Slide 20: Appendices
APPENDICES Craig Evans Lee Banks Chief Executive Officer Chief Financial Officer Phone: +64 274 353 897 Phone: +64 27 525 2876 Email: craig.evans@movelogistics.com Email: Lee.Banks@movelogistics.com HY23 Results 20
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation MOVE Logistics Group uses several non-GAAP measures when discussing financial performance and the Board and $Millions 1H23 1H22 Management believes this provides a better reflection of the company’s underlying performance. Net (loss) before income tax from continuing operatio
Slide 22: Discontinued Operations: Planned Divestment of Specialist
DISCONTINUED PLANNED DIVESTMENT OF SPECIALIST OPERATIONS ACTIVITIES • Planned divestments align to our strategic Discontinued Operations - $000s 1H23 1H22 change reset Revenue 10,336 6,134 4,202 • Limited cross-over to Freight and Contract Net profit/(loss) before tax 2,687 (1,031) 3,718 Logistics d
Slide 23: 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