Slide 1: Investor Presentation: 1H20 Result
Wiseway Group Limited For personal use only ASX: WWG Investor Presentation: 1H20 Result 24 March 2020 1
Slide 2: Contents
Contents For personal use only Company overview 3 1H20 results overview 12 Questions 19 Appendix 20 Presenters Roger Tong Chief Executive Officer Company/investor enquiries: admin@wiseway.com.au Florence Lee Managing Director Jason Lynch Acting Chief Financial Officer Media/investor enquiries: +61 (
Slide 3: Company overview
For personal use only Company overview 3
Slide 4: Wiseway: no.1 Australia-China air freight forwarder and provider of integrated logistics
Wiseway: no.1 Australia-China air freight forwarder and provider of integrated logistics For personal use only • Accredited Regulated Air Cargo Agent in Australia and New Zealand National footprint in • Customs bonded warehouse capability across all 9 branches Australia and expansion in New Zealand
Slide 5: Business milestone represents a step-change in scale and reach
Business milestone represents a step-change in scale and reach For personal use only Expanded capabilities in 2H19/1H20: Australia-New Zealand footprint of warehousing facilities ✓ Achieved national bonded warehouse footprint Darwin1 ✓ Perishables export Australia-China ✓ Strategic partnerships with
Slide 6: Established platform for growth
Established platform for growth For personal use only Strategic relationships with airlines Long-standing customer relationships Unique understanding of market needs ✓ Long-standing relationships with major ✓ Wiseway has supported the growth of many ✓ Wiseway has a unique understanding of Asia- inte
Slide 7: Key milestones
Key milestones For personal use only All expansions envisioned pre-IPO have now been completed ✓ Supporting imports of general cargo and e-commerce: • Bonded warehouse capability Australia-wide and in Auckland 1. COMPETITIVE • Regulated Air Cargo Agent accreditation Australia-wide and in New Zealand
Slide 8: Wiseway is strategically positioned for long-term growth
Wiseway is strategically positioned for long-term growth For personal use only Wiseway’s growth strategy is focused on three key components 1 2 3 Maintain core growth Accelerate new growth Regional business development • Continue to increase the efficiency of • Leveraging partnership opportunities •
Slide 9: Income diversification through eight business divisions
Income diversification through eight business divisions For personal use only We have continued to build, transform and strengthen the business via the introduction of a more diversified income stream Wiseway Group Limited Domestic Export Import GSA/CSA Regional transport Dry cargo Perishables Gener
Slide 10: Balance sheet update
Balance sheet update For personal use only • IPO raised $20 million capital • 20 March 2020 cash balance of $5.0 million (31 December 2019: $3.6 million; 30 June: $4.6 million) • We have now completed all expansion projects envisioned pre-IPO • Total equity as at 31 December 2019: $22.3 million 10
Slide 11: Investing in Wiseway
Investing in Wiseway For personal use only Business strength: ► Strategically positioned for long-term growth ► Truly diversified income ► National presence with bonded warehouse capability across the Australian mainland and in Auckland, New Zealand ► Strengthened management team of industry experts
Slide 12: 1H20 results overview
For personal use only 1H20 results overview
Slide 13: Highlights
Highlights For personal use only ▪ Revenue of $45.1 million, with a more diversified income stream ▪ Revenue growth across all new businesses – new divisions contributed $8.5 million in 1H20 ▪ Gross margin up 40 basis points: revenue growth across all new business divisions ▪ EBITDA of $0.1 million
Slide 14: Overview of 1H20 performance
Overview of 1H20 performance For personal use only 1 Revenue 1H20 $45.1m vs 1H19 $47.3m, down 5% Gross profit 1H20 $11.3m vs 1H19 $10.1m, up 12% • Slowing pace of growth in the Chinese economy Group results 1H20 Gross margin 1H20 25% vs 1H19 21%, 40 bps improvement • Revenue growth across all new bu
Slide 15: Strong growth performance across all new divisions of the business
Strong growth performance across all new divisions of the business For personal use only Revenue growth in new business divisions (1H20 vs 1H19) Sea freight dry cargo +289% ▪ Sea freight revenue up 289% to $1.4 million ▪ Imports revenue up 170% to $1.8 million from strengthened bonded warehouse capa
Slide 16: Implications of Covid-19
Implications of Covid-19 For personal use only ▪ Travel bans between China and Australia imposed by the Australian Government (1 Feb 2020) have caused disruption to established Australia-China trade pathways, as the cargo space previously available on passenger airlines is no longer available. ▪ Wis
Slide 17: Following the SARS outbreak, China's e-commerce market grew by 120% a year for 10 years
Following the SARS outbreak, China’s e-commerce market grew by 120% a year for 10 years For personal use only Equities & SARS outbreak E-commerce sales in China 2003-2013 (US$ billion) January 2003 = 100 300 US$283 billion 250 200 150 100 50 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 S
Slide 18: Strengthening China-Australia relations: Wiseway "mercy-dash" to Wuhan
Strengthening China-Australia relations: Wiseway “mercy-dash” to Wuhan For personal use only ▪ At a time when the relationship between China and Australia was being tested due to Australian-Government imposed travel bans, Wiseway stepped in to initiate the first humanitarian aid flight into Wuhan fr
Slide 19: Questions
For personal use only Questions 19
Slide 20: Appendix
For personal use only Appendix 20
Slide 21: History
History For personal use only 2005 2011 - 2014 2015 2016 2017 - 2018 2019 - 2020 ASX: WWG (listed 31 October 2018) - Accredited Regulated Air Cargo Agent Global Industry - Customs and - Dairy - GSA - Darwin - Accredited for fruit exports from Australia to China Classification • Transportation - Wise
Slide 22: Exports of dry cargo – via air and sea freight
Exports of dry cargo – via air and sea freight For personal use only Some exporters moved to sea freight for non-perishables to reduce costs Outbound general cargo (non-perishable products) Wiseway’s dry cargo to China (tonnes) Infant milk formula, vitamins, health and skin-care products, honey, win
Slide 23: Exports: perishables a major growth opportunity
Exports: perishables a major growth opportunity For personal use only Attractive perishables market provides next wave of growth for Wiseway Wiseway’s process for perishable products: Perishables (air freight) manufacturer to Asia-Pacific customer within 24 hours Fresh produce, meat, seafood, and fr
Slide 24: Inbound – general cargo and e-commerce
Inbound – general cargo and e-commerce For personal use only Solid increase in inbound volumes since establishment of national footprint of bonded warehouses General cargo and e-commerce imports Wiseway’s imports from China (tonnes) Electronics, clothing, fashion items • Since the IPO Wiseway establ
Slide 25: Supporting services
Supporting services For personal use only Domestic transport services General and Cargo Sales Agents (GSA/CSA) Airtruck Airnex • Value-add service to air freight clients, manufacturers and distributors • Representing airlines and selling cargo space • Primary purpose is to provide air freight client
Slide 26: Financial performance
Financial performance For personal use only ($m) 1H20 1H19 Commentary Revenue 45.1 47.3 Direct expenses (33.8) (37.2) Revenue • Revenue for the half was $45.1 million, down 5 per cent or $2.2 million due to a slowing pace of growth Gross profit 11.3 10.1 in the Chinese economy, and some exporters’ p
Slide 27: Strong financial position
Strong financial position For personal use only ($m) 31 Dec 2019 30 Jun 2019 Commentary Current assets Assets Cash and cash equivalents 3.6 4.6 • Trade receivables up driven by increased revenues from corporate and larger credit accounts. Trade, other receivables, other assets 15.4 14.6 Inventories
Slide 28: Cash flow
Cash flow For personal use only Re-investment to facilitate expected future growth ($m) 1H20 1H19 Commentary Operating activities (3.1) 1.2 Investing activities (0.7) (3.0) Operating cash flow Financing activities 2.8 (1.6) • Higher proportional levels of cash paid to suppliers and employees as the
Slide 29: Disclaimer
Disclaimer For personal use only This presentation contains summary information about Wiseway Group Limited (Wiseway) and its subsidiaries and their activities. The information in this presentation does not purport to be complete. It should be read in conjunction with Wiseway’s other periodic and co