Move Logistics Group Limited · NZX:MOV
Move Logistics — TIL Logistics Group — H1 2021 Earnings Presentation
23 slides from Move Logistics's earnings presentation, February 2021
Slide 1: TIL Logistics Group Limited 1H21 Interim Results Presentation
TIL LOGISTICS GROUP LIMITED 1H21 Interim Results Presentation For the six months to 31 December 2020 1 TIL Logistics Group FY21 Interim Results
Slide 2: TIL Logistics Group
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. • Delivering product to over 3,500 customers with a low level of churn and concentration. • Over 220,0
Slide 3: 1H21 Operating Environment
1H21 OPERATING ENVIRONMENT • Recovery post-March lockdown in some sectors of the New Zealand economy which are important sales areas for TLL including residential construction, infrastructure, food & beverage and agriculture. • Primary sector, particularly agriculture, remains relatively untouched,
Slide 4: 1H21 Key Events
1H21 KEY EVENTS • Progress being made in the turn around of the Freight division with revenue, EBITDA and margins above prior comparative period (pcp). • Expanded multi-modal freight solution, providing additional capacity and solutions for customers. • Completed acquisition of assets of Fletcher Co
Slide 5: 1H21 Results Snapshot
1H21 RESULTS SNAPSHOT Comparison to prior comparative period (pcp) $Millions 1H20 1H21 (post NZIFRS 16) Pleasing increase in Group revenue, EBITDA and NPAT. Sales Revenue 173.9 179.2 Margins in line with or above pcp for all divisions, Total Income 175.3 181.0 excluding International which has been
Slide 6: Sales Revenue
SALES REVENUE 200 179.2 Sales revenue of $179.2m, 3% above prior comparative 173.9 period (pcp). 150 • A solid result given the ongoing impact of COVID-19 and supply chain issues. $ Millions 100 • All divisions delivered revenue in line with prior 1H period. • Specialist grew significantly, with maj
Slide 7: 1H20 to 1H21 EBITDA Bridge
1H20: 1H21 EBITDA BRIDGE • Improved performance from four of five divisions, with slight decrease in International division. • Improved performance from Freight division. • Warehousing benefitted from additional capacity in new warehouses. • Bulk Liquids benefitted from increased volumes over summer
Slide 8: 1H20 to 1H21 NPAT Bridge
1H20:1H21 NPAT BRIDGE Profit of $2.7m for the half year (up from loss of -2.2m in 1H20). Compared to 1H20, the 1H21 result reflects: - Increased depreciation mainly due to new property and fleet leases. - Increase in tax due to higher earnings. TIL Logistics Group FY21 Interim Results 8
Slide 9: Capital Expenditure
CAPITAL EXPENDITURE $ Millions 1H20 1H21 Capital Expenditure: Capital Expenditure 6.9 3.6 • Cautious approach to capex in COVID environment. Capital expenditure excludes assets acquired via business acquisitions 1H21 included: 1H21 Capex • Investment into new trucks and equipment to resource custome
Slide 10: Capital Management
CAPITAL MANAGEMENT $ Millions 1H20 1H21 • Positive operating cashflow movement driven by As at 31 December 2020 improved trading performance and effective working capital management. Operating cashflow 17.7 27.4 • Sound working capital disciplines, with solid cash Borrowings 84.5 83.3 position of $1
Slide 11: TIL Operates Across Five Divisions
TIL OPERATES ACROSS FIVE DIVISIONS WAREHOUSING & FREIGHT BULK LIQUIDS INTERNATIONAL SPECIALIST LOGISTICS One of NZ’s largest Specialists in New Zealand’s International A group of general freight and transporting fuel, largest 3PL freight forwarding businesses line haul transport LPG and industrial o
Slide 12: Division Revenue and EBITDA
DIVISION REVENUE AND EBITDA 1H21 REVENUE 1H21 EBITDA Specialist International International Specialist Freight Bulk Liquids Freight Bulk Liquids Warehousing Warehousing & Logistics & Logistics * Division EBITDA excludes corporate costs TIL Logistics Group FY21 Interim Results 12
Slide 13: Freight
FREIGHT Revenue $84.0m, -1% Freighting Revenue EBITDA $9.3m, +57% 90.0 80.0 70.0 60.0 1H21 50.0 • Completed first six months of freight improvement plan. 40.0 30.0 • Rolled out improvements that have improved track and trace and 20.0 10.0 customer interactions and reduced back office administration.
Slide 14: Freight Improvement Plan
FREIGHT IMPROVEMENT PLAN Completed: ✓ Strengthened the management team. ✓ Introduction of detailed sales planning practices. ✓ Introduced daily KPIs to measure and improve key value drivers. ✓ Embraced other forms of transport modes, such as rail. ✓ Investment into technology to measure and confirm
Slide 15: Warehousing & Logistics
WAREHOUSING & LOGISTICS Revenue $37.7m, -1% Warehousing Revenue EBITDA $12.4m, +23% 40.0 35.0 30.0 25.0 1H21: 20.0 • Three-year investment into new warehouses, resulting in 15.0 10.0 additional capacity to cater for future sales. 5.0 • Secured new warehouse in Hamilton with cornerstone agriculture 0
Slide 16: Bulk Liquids
BULK LIQUIDS Revenue $39.3m, +1% Bulk Liquids Revenue EBITDA $8.0m, +43% 50.0 40.0 1H21: 30.0 • Primarily services large energy customers. 20.0 • Increased volume over summer due to domestic tourism, however, expected to drop away over autumn and winter. 10.0 • Focus on efficiencies starting to show
Slide 17: Specialist
SPECIALIST Revenue $14.2m, +63% 16.0 Specialist Revenue EBITDA $4.0m, +62% 14.0 12.0 1H21: 10.0 • Steady six months, impacted by sector specific downturns due to 8.0 COVID, particularly on the non-residential construction sector. 6.0 4.0 • Windfarm project underway with timings extended to FY22. 2.0
Slide 18: International
INTERNATIONAL Revenue $4.0m, -1% International Revenue EBITDA $0.9m, -7% 6.0 1H21: 4.0 • Mixed results with a number of clients yet to recover to pre- COVID levels, supply chain headwinds and a downturn in oil and 2.0 gas exploration. • Headwinds with port congestion worldwide and limited airfreight
Slide 19: Strategic Priorities
STRATEGIC PRIORITIES • Continue improvement programme FREIGHT IMPROVEMENT • Priority focus on lifting margins • Expansion of Bulk Liquids into non-fuel sectors ORGANIC GROWTH • Expansion Specialist services into a broader weight range • Optimise utilisation of MOVE’s new warehousing capacity • Expan
Slide 20: Outlook
OUTLOOK • The current environment has demonstrated the benefits of being a group of scale, with the ability to invest into health & safety, training, systems and infrastructure. • Private and public investment, as well as consumer demand, driving demand in certain sectors. • Economic conditions rema
Slide 21: Contact
CONTACT Alan Pearson TIL Logistics Group Limited Chief Executive Officer Tel: 021 806 678 Email: alan.pearson@til.kiwi TIL Logistics Group FY21 Interim Results 21
Slide 22: Glossary
GLOSSARY • NZ IFRS-16 Accounting for Leases – all numbers reported post-NZ IFRS 16 unless otherwise stated • Non-GAAP financial information: TIL Logistics Group uses several non-GAAP measures when discussing financial performance. These include Earnings Before Interest, Tax, Depreciation and Amortis
Slide 23: 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