Move Logistics Group Limited · NZX:MOV
Move Logistics — Shareholder Meeting (October 2023)
43 slides from Move Logistics's shareholder meeting presentation, Oct 25, 2023
Slide 1: Move Logistics Group 2023 Annual Meeting
For personal use only MOVE LOGISTICS GROUP LIMITED 2023 ANNUAL MEETING 25 October 2023
Slide 2: Video
For personal use only Click to view video 2023 Annual Meeting 2
Slide 3: Chair
For personal use only CHAIR WITTEN LORRAINE 3
Slide 4: Voting and Asking Questions
VOTING AND ASKING QUESTIONS For personal use only Voting Card Question box 2023 Annual Meeting
Slide 5: Agenda
AGENDA For personal use only • Chair and CEO Presentations • Shareholder Discussion • Resolutions • General Business • Close of the Meeting 5
Slide 6: Board
BOARD For personal use only Lorraine Witten Chris Dunphy Julia Raue Chair Non-independent Director Independent Director Standing for Election Mark Newman Grant Devonport Danny Chan Independent Director Independent Director Independent Director Retiring at ASM 2023 Annual Meeting 6
Slide 7: Introducing Craig Evans
INTRODUCING CRAIG EVANS For personal use only 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 Ba
Slide 8: Strong Leadership Team
STRONG LEADERSHIP TEAM Leading our pathway to success For personal use only 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 Appointed Oct 2023 James Watt
Slide 9: Governance Matters
GOVERNANCE MATTERS For personal use only • Focus on MOVE’s performance in a challenging operating environment • Appointment of new CEO, strategy review and implementation of Project Blueprint • Resilience and risk management, with continued focus on ESG and Health & Safety • Capital investment into
Slide 10: FY24 to Date
FY24 TO DATE Trading conditions: For personal use only • 1H operating conditions have been tougher and for longer than anticipated - high inflation and interest rates dampening customer demand, and increased competitive pricing pressure Management and Board focus: • Adding value to our customers to
Slide 11: Chief Executive Officer
11 For personal use only CHIEF EXECUTIVE OFFICER CRAIG EVANS
Slide 12: Our Business
OUR BUSINESS We are one of New For personal use only Zealand’s largest transport and logistics providers • National network with regional strength • 41 branches, depots, crossdocks, warehouses and offices across New Zealand 2023 Annual Meeting 12
Slide 13: Our Vision
OUR VISION For personal use only To be the preferred freight and logistics company in Australasia
Slide 14: Strategy for Growth
STRATEGY FOR GROWTH For personal use only Our Vision: To be the preferred freight and logistics provider in Australasia Our Mission: To keep our customers moving Our Mantra: Customer, Safety, Team 2023 Annual Meeting 14
Slide 15: FY23 Performance Snapshot
FY23 PERFORMANCE SNAPSHOT For personal use only Softer result in face of headwinds, INCOME EBITDA EBIT NLAT2 ongoing Freight improvement Normalised1 Normalised1 programme and as the 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.
Slide 16: FY23 Business Performance
FY23 BUSINESS PERFORMANCE For personal use only Freight and Contract Logistics are the primary Sales EBITDA contributors to group revenue and EBITDA International and Specialist are smaller services with growth opportunities 2023 Annual Meeting 16
Slide 17: 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 For personal use only • Continuation of the Freight • Increased collaboration across the •
Slide 18: Sustainability
SUSTAINABILITY People, communities, environment Key safety indicators continue to improve • Appointed a Group Sustainability Lead in July 2022 FY20: FY23 For personal use only 70 • Monthly and annual safety awards • Commitment through the business to 60 decarbonisation – 3% YOY reduction in total gr
Slide 19: Video – Focus on People & Culture
VIDEO – FOCUS ON PEOPLE & CULTURE For personal use only Click to view video 2023 Annual Meeting 19
Slide 20: Project Blueprint
PROJECT BLUEPRINT 12 – 18 month dual pathway programme to reshape and strengthen the business, and drive organic growth For personal use only PRIORITIES RESHAPE AND STRENGTHEN THE BUSINESS DRIVE ORGANIC GROWTH Immediate benefit Short to medium term benefit • Comprehensive review of operating costs •
Slide 21: 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. For personal use only ✓ Creating higher levels of accountability and measurability across the business,
Slide 22: Freight
FREIGHT Strong foundations - one of the largest freight networks in New Zealand For personal use only Improvement programme remains underway • New leadership from 2H23 • Restructure into clear LCL and FTL services - LCL provides the most opportunity for MOVE • Rebuild in activity is key focus • Inve
Slide 23: Contract Logistics
CONTRACT LOGISTICS Strong customer relationships and improved utilisation of assets For personal use only Warehousing capacity at high levels with strong customer renewal rates and new customer activity • Renewal of Z Energy long term agreement in FY23 • Investment into new trucks and trailers, and
Slide 24: International
INTERNATIONAL Pilot of new trans-Tasman shipping service, extending MOVE’s end to end supply chain solution For personal use only • Slowdown in freight forwarding services in response to economic climate • Pilot of trans-Tasman service: • Provides an additional revenue stream as well as an add-on fo
Slide 25: Specialist
SPECIALIST High performing business, delivering strong margins • Strong pipeline of work in place For personal use only • Can be subject to time delays due to weather events and project timelines Opportunities: o Grow existing market share o Expand into other sectors and regions o Synergy across MOV
Slide 26: Video – Our Specialist Business
VIDEO – OUR SPECIALIST BUSINESS For personal use only Click to view2023video Annual Meeting 26
Slide 27: Looking Ahead / Resilience
LOOKING AHEAD RESILIENCE Market outlook: • Measurable downtrading for some customers in first • Robust Freight, Fuel and Warehouse networks, For personal use only quarter due to economic conditions, and election providing customers with certainty despite year uncertainty weather events • Increased m
Slide 28: Shareholder Discussion
SHAREHOLDER DISCUSSION For personal use only 2023 Annual Meeting 28
Slide 29: Resolutions
For personal use only RESOLUTIONS 2023 Annual Meeting 29
Slide 30: Resolutions
RESOLUTIONS For personal use only RESOLUTION 1: To record the re-appointment of PricewaterhouseCoopers as the Company’s auditor and to authorise the Directors to fix the auditor’s remuneration for the ensuring year RESOLUTION 2: That Julia Raue, who was appointed by the Board during the year, be ele
Slide 31: Other Business / Close of the Meeting
For personal use only OTHER BUSINESS CLOSE OF THE MEETING
Slide 32: Appendices
For personal use only APPENDICES 2023 Annual Meeting 32
Slide 33: 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 34: 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. For personal use only This presentation is not a recommendation or offer of financial products for subscr
Slide 35: Board of Directors
MOVE 2023 ANNUAL MEETING OF SHAREHOLDERS 25 October 2023 Board of Directors Our Board is made up of five independent Directors and one non-independent. We are very pleased to welcome a new independent Director to the Board this year, Julia Raue. Julia is standing for election later in the meeting an
Slide 36: For personal use only
On behalf of the Board, I would like to thank Chris for his leadership in his role as Executive Director. Chris remains as a shareholder in MOVE and on the Board as a non-independent Director. Following his appointment, Craig undertook an in-depth business review to confirm what has been achieved an
Slide 37: For personal use only
continue to see the value in this offering as another revenue stream, and service for our customers, many of whom do business across the Tasman. The conversion of the Convertible Note in June 2023 allowed us to significantly reduce debt… a better position in this current economic cycle. We are tight
Slide 38: Craig Evans, CEO
CRAIG EVANS, CEO I’m delighted to be here today talking to shareholders, at my first annual meeting for MOVE. It has been an interesting first eight months as I have travelled our network, listening to our people, talking to our customers and understanding the challenges we are facing, but more exci
Slide 39: For personal use only
FY23 sales revenue of $343.9m and Normalised EBITDA1 of $47.4m reflected investment in future growth initiatives, moderating consumer demand in response to economic conditions, the ongoing Freight improvement programme and weather events. All businesses, excluding Freight, delivered revenue gains, w
Slide 40: For personal use only
Despite some customer churn, particularly following the Freight rate realignment, pleasingly, we are also seeing new customer partnerships and renewals. Having the right people in place to lead our business is essential, and we have made a number of appointments in recent months with new leadership
Slide 41: Project Blueprint
Project Blueprint We have recently initiated Project Blueprint to direct our efforts across the group. This is a dual pathway programme that will create a strong launch pad to support our future growth ambitions, with a more efficient, higher margin business model, that capitalises on MOVE’s strengt
Slide 42: Contract Logistics
Contract Logistics Contract Logistics provides solutions for large customers and is built on long term relationships. It comprises our warehousing and fuels assets and works with the other businesses within our group to provide end to end supply chain solutions. The focus in FY23 was on utilisation
Slide 43: For personal use only
After being severely impacted by Covid-related delays and disruption in FY21/22, projects have been coming back on stream, however, weather this year has seen some timelines extended further. Machinery Movers carries large and oversize items and is one of the largest carriers of pre-cast concrete pa
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