Slide 1: MOVE Logistics Group FY22 Results and Strategy
MOVE LOGISTICS GROUP LIMITED FY22 RESULTS AND STRATEGY Chris Dunphy, Executive Director Lee Banks, Chief Financial Officer 24 August 2022
Slide 2: FY22 Performance Snapshot
FY22 PERFORMANCE SNAPSHOT First 9 months of 2-year programme to strengthen and grow MOVE Earnings in line with guidance INCOME EBITDA EBIT NPAT/NLAT3 Normalised2 Normalised2 $54.3m $12.2m $(4.2)m Continuing Operations1 $349.1m FY21: $332.3m FY21: $54.5m FY21: $11.2m FY21: $0.9m NPAT LTIFR GEARING FR
Slide 3: Update on Key Strategic Priorities
UPDATE ON KEY STRATEGIC PRIORITIES Resetting the business to deliver growth COMPLETED: IN PROGRESS: ✓ Comprehensive business review • Fix Freight: ✓ Restructured the business divisions to • Concentrate on margin better reflect asset utilisation and • Freight system upgrade customers • Transition to
Slide 4: FY22 Operating Environment
FY22 OPERATING ENVIRONMENT Challenging but surmountable conditions OPERATING ENVIRONMENT IMPACT ON MOVE • Restricted operating environment due to COVID • Significant decrease in fuel deliveries due to lockdowns reduced client demand and impact of COVID on normal trading levels • Increase in global a
Slide 5: Financial Results
FINANCIAL RESULTS FY22 Results Presentation 5
Slide 6: FY22 Group Summary
FY22 GROUP SUMMARY PROGRESS MADE ON RESET $Millions FY21:22 FY22 FY21 Continuing Operations1 change • Significant impact from COVID during the Total Income 349.1 332.3 16.8 year Normalised EBITDA2 54.3 54.5 (0.2) • Ability to pass through rising costs (fuel) benefitting income Normalised EBIT2 12.2
Slide 7: Normalised EBITDA
NORMALISED EBITDA FLAT YEAR ON YEAR BUT IMPROVEMENTS STARTING TO SHOW IN FREIGHT AND A STRONG PERFORMANCE FROM INTERNATIONAL • Revenue increase in Freight and International contributed positively to EBITDA increase • Contract Logistics fuel deliveries impacted by COVID lockdowns and prior year posit
Slide 8: Cash Flow
CASH FLOW CASH CONVERSION IS THE FOCUS change 2022 2021 $000s 22 v 21 • Free cash flow impacted by restructuring Normalised EBITDA excl. non-cash items 54,177 54,590 -413 costs (one-off) Restructuring costs (1,768) (168) -1,600 • Working capital increase due to delays in Working capital movement (7,
Slide 9: Strengthened Balance Sheet
STRENGTHENED BALANCE SHEET Significant Reduction in Net Debt FY20: FY22 • Reduction in net debt post 80 successful capital raise, improved 70 gearing ratio 60 • Refinanced bank debt with improved $millions 50 40 terms and longer tenure 30 20 • Solid working capital ratio 10 0 FY20 FY21 FY22 2022 202
Slide 10: Capex Catch Up Required in FY23
CAPEX CATCH UP REQUIRED IN FY23 $000s Fleet Plant & L/H Technology Total Equipment Improv. Capex MOVE Freight 948 191 284 9 1,432 MOVE Contract Logistics 280 2,526 - 75 2,881 • Replacement of aging fleet is planned MOVE International 1,008 20 - 8 1,036 over the next two years Corporate - 14 21 232 2
Slide 11: Operational Performance
OPERATIONAL PERFORMANCE FY22 Results Presentation 11
Slide 12: Sustainability
SUSTAINABILITY People, communities, environment Key safety indicators continue to trend downwards • New monthly and annual safety awards FY18: FY22 • Recertified as Toitu Carbon Reduce for 3 90 years 80 • Commitment through the business to decarbonisation – YOY reduction in Scope 1 70 and 2 emission
Slide 13: Moving Digital
MOVING DIGITAL Current Assessment & Plan FY22 Results Presentation 13
Slide 14: Freight
FREIGHT Revenue: $180.9m, +7% Re-set on track albeit with Covid bumps EBITDA: $18.5m, +5% • FY22 LTIFR of 26.5 requires continued focus (FY21: 25.9) • Increase in revenue due to rising customer prices, in particular the Revenue impact of fuel price movements 200 • Increase in EBITDA driven by sales
Slide 15: Contract Logistics
CONTRACT LOGISTICS Revenue: $154.2m, 2% Stable and positioned well for growth EBITDA: $35.0m, -9% • Improved LTIFR of 10.8 is pleasing (FY21: 13.1) • Revenue up 2% despite significant decrease in fuel deliveries due to COVID lockdown in 1H22 (down 22.5%) Revenue • EBITDA margin down 2.6% from prior
Slide 16: International
INTERNATIONAL Revenue: $10.9m, +32% Strong performance with expansion underway EBITDA: $3.8m, +86% • Division continued to be injury free Revenue • Revenue increased by 31.9% compared to prior year 11 10 NZD millions • Energy sectors clients have re-established programs delayed due 8 7 to COVID; has
Slide 17: Strategy Update
STRATEGY UPDATE FY22 Results Presentation 17
Slide 18: Laying the Foundations
LAYING THE FOUNDATIONS For the 12 months to 30 June 2022 July 2021 September 2021 December onwards Selldown by founding Organisation restructure, shareholders Continued to strengthen Board and senior leadership team and Appointment of Chris leadership changes diversify the share Dunphy as Executive
Slide 19: Strategic Pathways to Achieve Our Ambitions
STRATEGIC PATHWAYS TO ACHIEVE OUR AMBITIONS BETTER, STRONGER SMART GROWTH AND TAKING CARE OF WHAT BUSINESS EXPANSION MATTERS Work our assets smarter Expand our customer offer Committed to a low carbon future Build our multi-modal offer Further embed our domestic presence MOVE AS ONE with our Optimis
Slide 20: Work Our Assets Smarter
WORK OUR ASSETS SMARTER Investing in what matters and driving better returns on our businesses and assets • Reset Freight and grow through M&A • Grow Contract Logistics organically and through M&A • Investment in technology to drive operational improvement and deliver business insights • Transition
Slide 21: Build Our Multi-Modal Offer
BUILD OUR MULTI-MODAL OFFER Creating a multi-modal offer that utilises the best freight modes to deliver our customers’ goods where and when needed • Optimised end to end customer solution • Utilise all modes of transport – road, rail, sea, air • MOVE Oceans opportunity • Inter-island line haul via
Slide 22: Optimise Our Earnings
OPTIMISE OUR EARNINGS Deliver strong earnings growth and value for shareholders • Focus on improving margins and managing costs • Drive growing revenue and EBIT • Deliver improving shareholder returns • Balance growth with dividend payments
Slide 23: Deliver for Our Customers
DELIVER FOR OUR CUSTOMERS Putting our customers at the heart of all we do and delivering the best customer solution and service • Attract new customers to our high quality service • Expand and further cross sell our services between Freight and Contract Logistics • Build a greater presence in target
Slide 24: Upsize Our Business
UPSIZE OUR BUSINESS Maximise organic and acquisition opportunities to expand our market presence, extend our offer and grow our customer base • Leverage breadth of service offered across the group and expand the solutions provided to each customer • Create a beach-head in Australia, likely via Contr
Slide 25: Taking Care of What Matters
TAKING CARE OF WHAT MATTERS Having a positive impact on our people, communities and the environment • Safety first, middle and last • Retain and reward exceptional people • Positive engagement with our local communities • Committed to a low carbon future • All team members ‘MOVE as One’ as we build
Slide 26: Outlook
OUTLOOK Improving margins and growing the business • Great in-roads to margin improvement in Freight • Continue improving Contract Logistics asset utilisation and gaining new clients • Inflationary pressures expected to continue and demand regular interaction with clients as to rate levels and susta
Slide 27: Fluidex Acquisition
FLUIDEX ACQUISITION Complements existing fuel and bulk liquids business • Fluidex is a leading bulk liquids and bulk dry powder transport provider, operating throughout New Zealand • Recurring revenue of $11m with growth potential • Significant cross-selling opportunities across MOVE’s businesses •
Slide 28: Extends MOVE's Customer Offer
EXTENDS MOVE’S CUSTOMER OFFER Supports MOVE’s strategy to further grow and enhance integrated supply chain solutions for targeted customer sectors CURRENT STATE GROWTH STRATEGY • FUEL • FOOD GRADE LIQUIDS – WINE, DAIRY, OILS • DANGEROUS GOODS • DRY POWDERS – CEMENT, FLOUR • ISO TANK LEASE & STORAGE
Slide 29: Discussion
DISCUSSION FY22 Results Presentation 29
Slide 30: Appendices
APPENDICES 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 FY22 Results Presentation 30
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 $Millions FY22 FY21 company’s underlying performance. Net profit/(loss) before income tax from continuing (
Slide 32: Discontinued Operations
DISCONTINUED PLANNED DIVESTMENT OF SPECIALIST OPERATIONS ACTIVITIES change • Planned divestments align to our strategic Discontinued Operations - $000s 2022 2021 22 v 21 reset Revenue 14,339 24,301 (9,962) • Activities being divested are better aligned Net (loss)/profit before tax (785) 3,611 (4,396
Slide 33: 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