Move Logistics Group Limited · NZX:MOV
Move Logistics — FY2023 Earnings Presentation
27 slides from Move Logistics's earnings presentation, Aug 30, 2023
Slide 1: MOVE Logistics Group Limited FY23 Results
MOVE LOGISTICS GROUP LIMITED FY23 RESULTS Craig Evans, Chief Executive Officer Lee Banks, Chief Financial Officer 30 August 2023
Slide 2: Introducing Craig Evans
INTRODUCING CRAIG EVANS Commenced as MOVE CEO in February 2023 Extensive industry experience: 35 years with Mainfreight. Prior to that, four years with Freightways Leadership: From branch level to national management. Six-plus years as Mainfreight New Zealand Country Manager Based in Christchurch, t
Slide 3: FY23 Performance Snapshot
FY23 PERFORMANCE SNAPSHOT Softer result in face of headwinds, INCOME EBITDA EBIT NLAT2 ongoing Freight improvement Normalised1 Normalised1 programme and as business is $347.7m $47.4m $3.9m $(7.2)m reshaped to support growth FY22: $364.0m FY22: $56.2m FY22: $11.5m FY22: $(4.2)m • Moderating consumer
Slide 4: FY23 Operating Environment
FY23 OPERATING ENVIRONMENT Economic headwinds driving softer demand across the industry • Moderation in consumer demand following the surge in activity immediately post-Covid • Weather impact in 2H23 on customers across a range of sectors including agriculture and infrastructure • Weather events dis
Slide 5: Update on Key Strategic Priorities
UPDATE ON KEY STRATEGIC PRIORITIES 4Q23: Commenced Project Blueprint to reshape & strengthen the business, and drive organic growth WORK OUR ASSETS SMARTER BUILD OUR MULTI-MODAL OFFER DELIVER FOR OUR CUSTOMERS • Continuation of the Freight • Increased collaboration across the • Increasing market sha
Slide 6: Financial Results
FINANCIAL RESULTS FY23 Results Presentation 6
Slide 7: FY23 Group Summary
FY23 GROUP SUMMARY • Results impacted by softening consumer $Millions FY23 FY22 demand in response to economic conditions Total Income 347.7 364.0 and impact of weather events Normalised EBITDA1 47.4 56.2 • Soft result from Freight business with the improvement programme ongoing Normalised EBIT1 3.9
Slide 8: Normalised EBITDA
NORMALISED EBITDA • FREIGHT: Decrease in sales, including loss of customer contract of $11m in annualised revenue. Result includes $1.1m of IT project costs • CONTRACT LOGISTICS: Improved warehouse utilisation. Fuel business impacted by higher driver and R&M costs • INTERNATIONAL: Reflects start up
Slide 9: Cash Flow
CASH FLOW CASH CONVERSION IS THE FOCUS $000s FY23 FY22 • Positive working capital movement and Normalised EBITDA excl. non cash items 48,419 56,269 operating cashflows, partially offsetting lower Non trading - cash items (701) (1,768) EBITDA and higher capex Working capital movement 1,172 (8,396) Ne
Slide 10: Balance Sheet
BALANCE SHEET Significant Reduction in Net Debt FY20: FY23 • $5.3m reduction in net debt 80 following conversion of convertible 70 note and from cashflows 60 • Renegotiated bank facilities with $millions 50 40 30 revised covenants which enables 20 runway for Project Blueprint 10 0 • Solid working ca
Slide 11: Capex
CAPEX Catch up following prudent capital Capital Expenditure ($m) management during Covid FY23 FY22 • Growth investments – Oceans and Fleet 3.9 2.2 technology (FuseIT handheld scanners) Ship 8.5 - • Leased vehicle programme proceeding Technology 1.5 .3 well – in line with asset light strategy Other
Slide 12: Operational Performance
OPERATIONAL PERFORMANCE FY23 Results Presentation 12
Slide 13: Freight
FREIGHT Soft result as economic challenges hit and Revenue: $146.0m, -19% improvement programme continues EBITDA: $9.3m, -50% • Sales impacted by inflationary pressure and weather events on customer demand, and rate realignment. Unexpected contract loss Revenue of circa. $11m in annualised revenue f
Slide 14: Contract Logistics
CONTRACT LOGISTICS Steady state with strong customer relationships and Revenue: $159.4m, +3% EBITDA: $34.4m, -2% increased utilisation of assets • Solid performance in Logistics & Warehousing, offsetting small Revenue decrease in Fuels business 175 150 • Logistics & Warehousing: Capacity at high lev
Slide 15: International
INTERNATIONAL Revenue: $19.8m, +82% Launch of new Oceans strategy EBITDA: $2.2m, -42% • International freight volumes and pricing have eased Revenue • Investment into Oceans strategy: 11 10 o Acquisition of new vessel. Start-up of trans-Tasman shipping NZD millions 8 service in January 2023; commenc
Slide 16: Specialist
SPECIALIST Revenue: $18.7m, +32% High performing business, delivering strong margins EBITDA: $4.3m, +132% • Recovery from FY22 Covid-impacted year Revenue • Tranzcarr Heavy Haulage activity is mainly project based – lumpier 25 revenue and susceptible to changes in project timelines. Weather 20 relat
Slide 17: Sustainability
SUSTAINABILITY People, communities, environment Key safety indicators continue to improve • Appointed a Group Sustainability Lead in July 2022 FY20: FY23 70 • Monthly and annual safety awards • Commitment through the business to 60 decarbonisation – 3% YOY reduction in total gross emissions to 146k
Slide 18: Looking Forward
LOOKING FORWARD FY23 Results Presentation 18
Slide 19: Strong Leadership Team
STRONG LEADERSHIP TEAM Leading our pathway to success Craig Evans Lee Banks Anthony Barrett Rachel Hustler Ricky Clark CEO CFO CIO GM People & Culture National Sales Manger Appointed Feb 2023 Appointed Jul 2013 Appointed Apr 2022 Appointed Jul 2023 Commencing Oct 2023 James Watters Justin Marshall D
Slide 20: 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 FY23 Results Presentation 20
Slide 21: Project Blueprint
PROJECT BLUEPRINT 12 – 18 month dual pathway programme to reshape and strengthen the business, and drive organic growth PRIORITIES RESHAPE AND STRENGTHEN THE BUSINESS DRIVE ORGANIC GROWTH Immediate benefit Short to medium term benefit • Comprehensive review of operating costs • Investment in sales r
Slide 22: Project Blueprint: Greenshoots
PROJECT BLUEPRINT: GREENSHOOTS We have identified what needs to be done across the business to achieve success and have a clear plan in place. Early benefits are being seen from the work underway. ✓ Creating higher levels of accountability and measurability across the business, particularly at regio
Slide 23: Looking Ahead Resilience
LOOKING AHEAD RESILIENCE Prepared for economic and market changes Market outlook: • Robust Freight, Fuel and Warehouse networks, providing customers with certainty despite • Anticipate moderation in customer activity due weather events to economic conditions, and election year uncertainty • Oceans s
Slide 24: Discussion
DISCUSSION FY23 Results Presentation 24
Slide 25: 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 FY23 Results Presentation 25
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation $Millions FY23 FY22 MOVE Logistics Group uses several non-GAAP measures when discussing financial performance and the Board and Net profit/(loss) before income tax (GAAP measure) (7.59) (3.21) Management believes this provides a better reflection of the Add back: company’s un
Slide 27: 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