Move Logistics Group Limited · NZX:MOV
Move Logistics — TIL Logistics Group — H1 2019 Earnings Presentation
21 slides from Move Logistics's earnings presentation, February 2019
Slide 1: TIL Logistics Group Limited Interim Results Presentation
1 TIL LOGISTICS GROUP LIMITED Interim Results Presentation For the Six Months ended 31 December 2018
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: 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 4: 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 5: 1H19 Results Snapshot
1H19 RESULTS SNAPSHOT $Millions 1H19 1H18 Sales Revenue 175.2 164.0 TIL Logistics Group has confirmed FY19 Total Income 177.6 166.6 guidance to be EBITDA of $28m to $32m EBITDA 14.1 (7.1) and NPAT of $7.8m to $8.8m, taking into account the higher operating and Adjusted EBITDA 14.1 14.2 corporate cos
Slide 6: 1H19: 1H18 Key Measures
1H19: 1H18 KEY MEASURES Continuing trend of six month improvement in Operating Expenses sales revenue and total income. Total Income (excluding Depreciation) 200 Operating expenses reflect full period of 200 177.6 173.6 163.5 166.6 152.4 corporate and governance costs (up $1.1m on 150 150 1H18) and
Slide 7: 1H18: 1H19 EBITDA Bridge
1H18: 1H19 EBITDA BRIDGE Excluding 1H18 non-trading costs, 1H19 EBITDA was in line with 1H18. • Focus on margins generated improving results in Freighting. • Warehousing & Logistics reflects investment into new and expanded facilities leading to increased property costs, and the closure of a major c
Slide 8: 1H18: 1H19 NPAT Bridge
1H18: 1H19 NPAT BRIDGE Compared to 1H18, the 1H19 result reflects: • Increase in depreciation on capital expenditure and the SLTG acquisition, offset by reduction in depreciation on vehicle sale and leaseback programme. • Finance costs increased due to higher debt levels following the borrowing incu
Slide 9: Business Division Revenue and EBITDA
BUSINESS DIVISION REVENUE AND EBITDA REVENUE 1H19 REVENUE Segment reporting has been changed to 200 five divisions to better reflect TIL’s 150 business operations. $ Millions 100 50 Freighting, Warehousing & Logistics and Bulk Liquids are the main contributors 0 1H18 1H19 to the group providing 96%
Slide 10: Division Performance
Freighting Warehousing & Logistics DIVISION Bulk Liquids PERFORMANCE International Specialist TIL Logistics Group 1H19 Results Presentation 10
Slide 11: Freighting
FREIGHTING Revenue $76.4m, +5% EBITDA $4.9m, +67% • Focused effort on margin improvement is delivering stronger result • Benefit from seasonal pre-Christmas demand for freighting • Increased lease costs with more trucks now being leased rather than purchased outright • Opportunity for growth due to
Slide 12: Warehousing & Logistics
WAREHOUSING & The new Rolleston warehouse is due to open its doors in April 2019, providing an additional 10,000 square metres of space LOGISTICS Revenue $52.8m, +9% EBITDA $5.0m, -7% • Slightly down on expectations due to: - Bottle necks at the Ports of Auckland which impacted on the flow of goods
Slide 13: Bulk Liquids
BULK LIQUIDS Revenue $38.9m, +3% EBITDA $4.0m, -27% • Renewal of two key customer contracts – with Z Energy and Farmlands • Increased cost base to support renewed customer contracts • More leasing of trucks leading to higher lease costs • Fewer used trucks on-sold compared to the prior year • Q1 imp
Slide 14: Specialist
SPECIALIST Revenue $3.4m, +147% EBITDA $0.5m, +308% Group of businesses specialising in heavy haulage and machinery lifting and transport • Specialised Lifting and Transport Group acquired in November 2018, contributed $0.5m EBITDA to the 1H19 result • On track to realise synergies from 2H19 onwards
Slide 15: International
INTERNATIONAL Revenue $3.8m, +3% EBITDA $0.7m, +29% International freight forwarding with a specialisation in the oil and gas energy sector, ISO tank leasing and shipping and full agency services Credit: Brian Carlin/Volvo Ocean Race • Positive six months with uplift in Oil & Gas activity in Taranak
Slide 16: 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 17: 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 Activity levels across the industry remain transport and logistics offer is now starting to show dividends, high and long term outlook is positive and our market share
Slide 18: Contact
CONTACT Alan Pearson TIL Logistics Group Limited Chief Executive Officer Tel: 021 806 678 Email: alan.pearson@til.kiwi 18
Slide 19: 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 20: 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 21: 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