FY24 Move Logistics Group Annual Report

Welcome to our 2024 Annual Report.

In the last seven years since becoming a listed company, MOVE has evolved from being simply a freight business into a multi-modal, end to end supply chain provider. We're making it easy for our customers with integrated solutions across freight, warehousing, shipping and freight forwarding, as well as specialised services. We're not just a trucking company; we also utilise rail and shipping to deliver the best solutions for our customers.

This year we have confronted some of the most challenging trading conditions in recent history and our results were below our aspirations. Despite these headwinds, our commitment to exceptional customer service and innovative solutions remains unwavering. MOVE has a legacy of more than 150 years. We're taking this forward, building strong foundations that will see MOVE grow and deliver value into the future.

On behalf of the Board and Management of MOVE Logistics Group Limited, we are pleased to present our Annual Report for the year ended 30 June 2024.

4 OUR BUSINESS Our Strategy About Us Our Network

8 THE FY24 YEAR FY24 Snapshot Chair's Report Change Plan

17 WHAT MATTERS Team

Customers and communities Environment

Board and Leadership Governance Report

38 FINANCIALS AND DISCLOSURES Financial Measures Financial Statements Notes to the Financial Statements Auditor's Report Statutory Information Directory

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Building better customer solutions.

ANNUAL REPORT 2024 5

Our strategy.

We know businesses are looking for a logistics provider who is focused on New Zealand customers, with a breadth of product and service capability, and who can move quickly to deliver a solution that is tailored to their needs.

MOVE is meeting this demand with our team of logistics experts, innovative thinking and a freight and warehousing network that spans the country. We're making it easy for our customers, delivering a

Technology

and

Innovation

Operational

Excellence

H

T

W

S M A R T G R O

one-stop solution that's focused on their needs.

Essity is a leading global hygiene and health company, with products ranging from tissue and toilet paper to period care, soap and skincare. Moving into MOVE's Tauriko warehouse in Tauranga has allowed Essity to restructure its North Island supply chain and streamline the transport and delivery of products by utilising MOVE's freight services. Utilising Essity's warehouse management system on site, MOVE is able to provide a fully integrated solution to enhance customer service and experience.

BETTER, STRONGER BUSINESS

Work our assets smarter: Investing in what matters and driving better returns on our businesses and assets

Optimise earnings: Focused on optimising our earnings and delivering strong earnings growth and value for shareholders

SMART GROWTH & EXPANSION

Deliver for our customers: Putting our customers at the heart of all we do and delivering the best customer solution and service

Upsize our business: Maximising organic and acquisition opportunities to expand our market presence across Australasia, extend our offer and grow our customer base

Build our multi-modal offer: Creating a multi-modaloffer that utilises the best freight modes to deliver our customers' goods where and when needed

Industry collaboration and partnerships:

Work in partnership with best- in-class providers to ensure the optimal solution for our customers and help us grow while preserving our capital

TAKING CARE OF WHAT MATTERS

Having a positive impact on our people, communities and the environment

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About us.

OUR VISION

To be the preferred freight and logistics provider in Australasia.

This means delivering the best solution and service for our customers, providing secure and rewarding work opportunities for our people, and generating value for our shareholders.

OUR MISSION

To keep our customers moving.

Our expert term provides comprehensive freight and logistics solutions to help our clients stay ahead and succeed.

OUR MANTRA

Customer, Safety, Team

We work together to deliver the best possible customer experience and business performance, strive to exceed our customer's expectations and remain unwavering in our dedication to ensuring the well-being and safety of our people, partners and communities in our work.

WHAT WE DO

MOVE is a one stop shop for all logistics services. We can provide a solution for supply chain challenges of all kinds. Store your goods with us and transport them where you need with our domestic and international networks.

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Our network.

We have one of New Zealand's largest transport and logistics networks.

We are one of the largest domestic freight providers in New Zealand. Our services include general freight, temperature- controlled goods, project cargo and full truck loads.

Our specialist road tanker division is one of the largest fuel delivery operators in the New Zealand market.

We move oversized and large items that require specialist haulage. From heavy haulage, and machinery transports to oversized freight movements, we can move anything.

We offer contracted solutions for customers including warehousing and supply chain capability. Our warehouses are central to main routes and easy for port access.

We are logistics specialists and provide international freight forwarding and shipping agency services across a

broad range of industries. Our new trans-Tasman shipping service adds another valued service to our offer.

TEAM

972 team members

21% of our team are female

59% of our team are based outside of Auckland

NETWORK

38 branches, depots, crossdocks, warehouses and support offices across New Zealand

195,000 square metres of warehouse capacity

CORPORATE

1,848 shareholders

95% New Zealand shareholders

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FY24 snapshot.

ANNUAL REPORT 2024 9

MOVE's FY24 financial performance was below our aspirations and reflective of group-wide underperformance exacerbated by the industry-wide challenges of a recessionary environment which has dampened business activity and demand.

The Board and management are moving at pace to accelerate a change programme with a focus on improving the Group's financial performance, and delivering value to shareholders, while continuing to provide great service to MOVE customers.

• Income down 13% year on year, with subdued customer activity and customer losses in a recessionary environment
• Higher cost base due to inflation and investment into business in anticipation of economic recovery; delay in reducing costs to match lower activity levels
• Net loss after tax of $(48.1)m2, including pre-tax,non-trading adjustments of $19.7m
• Non-cashand non-trading costs $19.7m including an impairment on the carrying value of the Atlas Wind vessel which is being held for sale, and a write down of goodwill in the warehousing business
• 2H24 Normalised EBITDA ahead of 1H24, in line with guidance
• Continued focus on working capital management and customer value proposition
• Commenced Accelerate programme from 1 July 2024 to right-size and streamline the organisation to reduce costs and improve operating leverage

Targeting positive net adjusted operating cashflow, and significant improvement in normalised EBT in FY25.

Income

$301.7m

FY23: $347.7m

Normalised EBITDA1

$27.6m

FY23: $47.4m

Normalised EBT

$(25.7)m

FY23: $5.8m

Net Loss after tax2

$(48.1)m

FY23: $(7.2)m

Capex

$1.8m

FY23: $19.5m

Gearing

38.4%

FY23: 17.2%

Free Cashflow3

$2.0m

FY23: $0.7m

Safety (LTIFR)

15.82

FY23: 14.72

Over the seven years since listing, MOVE has evolved from being simply a freight business into a multi-modal, end to end supply chain provider and one of New Zealand's largest logistics providers.

The last 12 months have delivered some of most challenging trading conditions seen in the industry in recent times.

Cost inflation has continued to rise, margins have been under pressure, and customer demand has reduced significantly as businesses have cut costs, public spending has been put on hold, and large projects have been paused. The freight industry is a bellweather for the economy and this has become even more evident this year, with MOVE's performance reflecting the wider economic downturn and customers insourcing, as well as operational challenges.

Two years ago, MOVE initiated a new growth strategy built on identified opportunities in a strong post- pandemic economy. Investment was made into the business, particularly in our team, fleet and technology, in anticipation of future growth. However, as the economy has retracted over the last year, we have had to adapt MOVE's growth strategy to focus on immediate value opportunities. In some cases, this has meant unwinding positions which had been built in anticipation of a growth environment.

This year's result has been disappointing and further highlighted the need to right-size and improve efficiencies within the organisation. The Board acknowledges that we were too slow to adapt our business to match lower market activity.

We are now moving at pace to drive change and improvement. We have engaged with independent advisors to ensure we have validated the challenges and opportunities within the business as well as the external factors that have impacted MOVE's performance. A comprehensive change programme

• the Accelerate programme - has been developed to replace Project Blueprint and experienced executive, Paul Millward, has been appointed to lead the turnaround. We are moving ahead with a refreshed Board and leadership team and are united in our focus to execute the change programme with urgency.

The work now underway is expected to support improving cashflow and profitability as we streamline the business and improve revenue generation. Benefits will be seen from 2H25.

The Accelerate programme

Our goals are to improve financial performance, build positive cashflow and deliver value to shareholders, while continuing to provide great service to MOVE's customers. Our success relies on three factors, which will improve financial performance and importantly, build shareholder value. These form the foundation of the programme:

• Recalibrating operations - ensuring MOVE's operational structure is appropriate for the size and scale of the business, cost-effective and efficient, while retaining the flexibility to scale up to meet increased demand and deliver quality customer service

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• Profitable revenue growth - investment into sales capabilities, accelerating profitable revenue opportunities and dynamic pricing disciplines
• Balance sheet resilience - priority focus on cashflow generation and capital management

The Accelerate programme is targeted to deliver a significant improvement in normalised EBT in FY25, and a return to normalised EBT profit in FY26, and is supported by MOVE's financiers. In particular, the network and fleet optimisation are expected to deliver a turnaround in the Freight division's performance.

The work done by independent advisors confirms that MOVE's underlying business fundamentals are sound, and the Board remains confident in MOVE's inherent value and strong customer offer.

Good progress in core areas

The Board has reviewed and confirmed MOVE's strategic pathways - building a better, stronger business; smart growth and expansion; and taking care of what matters.

Over the last two years we have made good progress in core areas that matter:

• We continue to strengthen and expand our end to end supply chain, with the addition of trans- Tasman shipping and expanded metro services
• We are increasingly multi-modal, which is lowering our cost to serve, providing optionality for our customers and offering carbon reduction opportunities
• We have seen a significant step change in culture, away from a silo mentality and towards a group focus
• Our strong brand presence and national network remains a key benefit for MOVE. We are seen as a strong contender by customers, supported by an expanded sales team
• The pilot of the trans-Tasman shipping service was encouraging despite sub-optimal vessel reliability. Since year-end, we have moved ahead with a larger, more resilient time-charter vessel to service this route

Long term macro trends remain positive for the industry, with demand growth alongside government investment in transport infrastructure. MOVE is well positioned to deliver expert logistics solutions across a range of sectors.

FINANCIAL PERFORMANCE

Subdued customer activity and customer losses in a recessionary environment saw income reduce

13% year on year to $301.7m. Inflation and our 1H24 investments in the business, made in expectation of an economic recovery, led to increased costs.

Unfortunately, the recovery has not yet happened and we recognise that we were slow to adjust costs to match the lower activity levels.

Non-cash impairments of $17.3m had a significant impact on MOVE's results this year. These include impairments on the carrying value of the Atlas Wind vessel which is being held for sale and goodwill in the warehousing business.

Excluding these and other non-trading costs (totalling $19.7m), Normalised EBITDA was down 41% to $27.6m, primarily as a result of lower revenue and costs being too high for activity. In line with guidance, 2H24 Normalised EBITDA was ahead of 1H24. Including non-cash and non-trading costs, the company reported a Net Loss after Tax of $(48.1)m5.

Working capital levels remained steady, and capital expenditure reduced as MOVE progresses towards an asset light model and non-essential spend is deferred until trading conditions normalise.

The priority for the Board is to restore positive adjusted net operating cashflow (inclusive of rent and lease payments), which was $(5.1)m in FY24.4

Following a significant reduction in debt over the last four years, FY24 net debt increased by $1.4m to $17.0m. MOVE has agreed new funding arrangements with ANZ Bank and Pacific Invoice Finance which

will support the change programme as well as corporate and working capital requirements. Total equity was $23.4m5 as at 30 June 2024.

BUSINESS PERFORMANCE

The Freight result was disappointing, despite new customers being onboarded, with the Freight division reset further hampered by adverse trading conditions. At the start of FY24, we invested into fleet, people and technology in anticipation of an economic recovery. The recessionary environment has been longer and stronger than anticipated, resulting in a cost base that was too high for market activity. We have now commenced an accelerated change programme to right-size the fleet and driver mix, optimise routes and remove cost. More recently, we have started to rebalance our customer base, moving away from low margin commodity freight to higher margin business. This has been supported by investment into an expanded sales team which is delivering increased leads and new customer wins. We are bolstering our trucking business with other modes of transport, such as rail and shipping, to ensure our customers have the best transport solution for their needs. Improving returns are expected as changes are bedded in and when market conditions improve.

MOVE's Warehouse business has been hard hit by reduced demand this year, which has driven increasing competition and downward pricing pressure across the industry. We have also seen some customers insourcing in response to the economic conditions. This is a priority focus area for MOVE's sales team as we look to fill available occupancy and diversify our customer base away from a reliance on large customer groups. Lead times are generally longer with wins now starting to be seen from activity initiated in late CY2023, as well as returning customers seeking a quality, cost effective service.

In MOVE's other businesses:

The Fuel and Tankers division delivered a stable performance despite continuing reduced light traffic activity and corresponding spending on fuel. MOVE remains one of the largest fuel delivery operators in the New Zealand market, and we also specialise in shipping ISO tank containers of bulk liquids. We continue to look for opportunities to build on our expertise and expand our Tankers service offer.

The International joint ventures continue to operate well, although the overall market for freight forwarding has retracted from the highs seen in 2022 and 2023. The pilot of MOVE's trans-Tasman shipping has been encouraging, despite additional costs due to continued mechanical issues. To create more capacity to support customer demand, as well as to derisk and align with MOVE's asset light business model, MOVE has changed to a time charter model with a larger, more resilient vessel and has put the Atlas Wind vessel up for sale.

The Specialist business is susceptible to economic conditions, with project work delayed and pushed into future periods. These projects remain ongoing and a strong pipeline of work is in place. MOVE's breadth, scale and expertise in this area is unsurpassed by any other provider in New Zealand and there are good opportunities to grow market share and expand into other sectors.

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ENABLING OUR STRATEGY

Our passionate and talented people are the backbone of our success. We believe if we look after our people, they will look after our customers and this, in turn, will drive our financial performance. We continue to build engagement across our group and a service culture. Team development remains a priority, with a focus on branch management, graduate programmes and career pathways.

We would like to thank our people, customers, suppliers and business partners for their support over the last twelve months. In particular, we would like to acknowledge our team's continued commitment to our customers, through more challenging times.

We are continuing to digitally transform our company. We have added new functionality and improved connectivity into our transport management system. A new Proof of Delivery integration maximises the investment we made into scanners last year. We have also completed the rollout of Ready Workforce, helping to streamline payroll processing. Cyber security remains a priority, as we look to protect our business and our customers' data.

Our commitment to Environment, Social and Governance (ESG) principles remains steadfast. Our initiatives are focused on those areas where we can drive meaningful change, deliver benefit for our people and communities and support a low carbon future and a better environment for us all. This year, we are reporting for the first time under the Aotearoa New Zealand Climate Standards. MOVE's climate related disclosures will be published online at www.movelogistics.com/who-we-are/sustainability by the end of October 2024.

Board and Leadership

The Board has been refreshed over the last twelve months, with several Directors retiring - Danny Chan and Chris Dunphy - and the appointment of new Directors - Lachie Johnstone, Greg Kern and Greg Whitham. The Board would like to thank Danny and Chris for their valued contributions during their tenure.

Lorraine Witten has also advised of her intention to retire ahead of the next Annual Shareholders' Meeting. Lorraine has been a valued member of the MOVE Board, firstly as a Director from the time the company first became listed in 2017 and then as Chair for two and half years. She stepped down as Chair in May 2024 to enable a seamless succession, and I was appointed as the incoming Chair. Our thanks go to Lorraine for her contribution.

MOVE CEO, Craig Evans, has also announced his resignation. He remains available to assist the new CEO until 24 October 2024. The Board thanks Craig for the work he has done to transition MOVE towards a sales led, customer focused organisation.

Paul Millward has been appointed as interim CEO to lead the turnaround programme, effective from 4 September 2024. Paul has an impressive track record of delivering business change and his leadership will be valued as we move at pace to reshape and streamline the business, adapting it for current market conditions, and making MOVE more efficient and fit for the future. Recruitment of a permanent CEO has been paused while this programme is underway.

OUTLOOK

While trading weakness has continued into the new financial year, we see this as short term in nature and we remain cautiously optimistic for an economic improvement in the first half of the 2025 calendar year. Long term macro trends remain positive for the industry, with demand growth alongside government investment in transport infrastructure. MOVE is well positioned to deliver expert logistics solutions across a range of sectors, including for energy and infrastructure projects.

We are moving at pace to recalibrate the business, adapting it for current market conditions, and making it more efficient and fit for the future. The Accelerate programme, which commenced in July 2024, is performing to plan with early wins including expanded customer sales activity and good progress in the Freight division turnaround.

We expect substantial progress over FY25 to restore cashflow and improve earnings, with initial results to be seen from 2H FY25. Costs associated with the change programme will impact in FY25.

MOVE is targeting positive adjusted net operating cashflow and a significant improvement in normalised EBT in FY25, and a return to normalised EBT profit in FY26. As a Board, we are holding ourselves and our team to account, and will keep shareholders and the market informed on our progress.

MOVE is one of the largest transport and logistics providers in New Zealand. We have a nationwide network with a strong regional and metro presence, the ability to provide an end to end supply chain solution, an experienced and passionate team, and a commitment to customer excellence. The MV Brio Faith is now in service on our trans-Tasman shipping route, further extending our offer to our customers.

The work we are doing now will reset our company, leverage MOVE's strengths, realise its considerable potential and grow shareholder value.

On behalf of the Board, thank you to our shareholders for your continued support as we navigate challenges and work towards an improved performance for our business.

Julia Raue

Chair

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The Accelerate programme.

Our goals are to improve financial performance, build positive cashflow and deliver value to shareholders, while continuing to provide great service to MOVE customers.

ANNUAL REPORT 2024 17

RECALIBRATE THE BUSINESS

Maximise performance, productivity and utilisation

Network, fleet and team optimisation - retain ability to flex with demand, while delivering quality customer service

Strict cost controls and reduction

PROFITABLE REVENUE GROWTH

Continue to invest in sales capabilities

Accelerate profitable revenue opportunities

Considered customer acquisition and diversification

Dynamic pricing disciplines

BALANCE SHEET RESILIENCE

Priority focus on cashflow generation

Meticulous financial management

Taking care of what

TARGETS

matters.

We are actively seeking to have a positive impact on our people, customers, communities and environment.

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Our people.

Our people are the backbone of our organisation and it is their talent and passion that will drive our success. As a company that has evolved from a heritage of regional brands and

Our goal is to attract the best talent and offer them a great career pathway at MOVE. This year, we launched our graduate programme, welcoming our first four graduates to our marketing and technology teams. We are creating a learning culture, with training, self-driven learning and leadership development opportunities offered to all team

ANNUAL REPORT 2024 19

5 minutes with Charlotte Carpenter

People & Culture Leader

"Supporting our people to be healthy, safe and well"

businesses, our focus has been on creating a unified group culture. We have made excellent progress, with our people now 'moving as one'.

members. Celebrating team diversity is another important aspect of our culture at MOVE.

Staying safe, keeping others safe and supporting each other remains fundamental to who we are as an organisation. We use an array of digital tools to monitor and manage the safety of our people, and further improved our reporting processes as well as introduced critical safety risks and related training during the year.

We are focused on lead indicators and metrics, with branch management taking ownership for events and corrective actions. We maintained our Tertiary level under the ACC Accredited Employers Programme. This signals that MOVE continues to achieve a clear history of established systems, processes and procedures which function actively in MOVE's workplace.

How does MOVE keep its team safe?

In addition to on-road safety, operational safety is a key focus for people working in and around our sites. We recently updated all our traffic management plans and we partner with our customers and suppliers to ensure appropriate safety protocols are in place for our team when on their sites and vice versa.

We also have an extensive wellbeing calendar of events and programmes to engage our people and encourage health and wellness. If our people are healthy and well, this in turn will help to keep them safe.

How do you engage with the MOVE team on safety?

Safety is bred into every level of our organisation. We have regular Health & Safety meetings at branch and national level, a Monthly learning series and newsletter; and Toolbox Talks. We use quality branch audits to validate our safety systems and identify training opportunities. Information is shared through our team intranet, as well as on notice boards in our branches. Our monthly Health & Safety Award is always a prized accolade, with a team member recognised for their contributions towards

The safety of our team is a priority and training is an important aspect of this. MOVE has concentrated on groupwide training initiatives involving all team members covering a variety of different topics and utilising various training mediums. Safety is part

of our leadership training, and we have a learning series focused on different safety topics and led by our People & Culture team and branch managers.

We have a robust critical safety risk programme which is overseen by our Board and measures lead and lag indicators. Fit for purpose policies and procedures have been developed and are continuously reviewed to ensure they are relevant and relatable for our team. Reporting of incidents is proactive and aligned with our safety critical risk framework which enables better insight and allows us to see these as opportunities to learn and improve.

demonstrating or improving safety in their role.

How is technology assisting with health, safety and wellbeing?

Technology is a useful tool, helping us to identify, monitor and manage risks. We have a range of different digital tools, from in-cab technologies to help manage fatigue, speed, distraction and work time, through to vehicle technology that ensures our trucks are safe to drive. We also use our technology platforms across the business for online training and sharing of information.

What is the benefit to MOVE's customers?

Our customers can trust that they are partnering with a company that looks after their team, suppliers and the wider community, with a high standard of professionalism.