TIL Logistics Group Shareholder Newsletter

EXECUTIVE REVIEW
I
t’s very pleasing to conclude a busy first three
months as CEO with TIL Logistics Group’s first
newsletter to shareholders as a public company.
While the process of joining the NZX has presented a learning curve for all
of us, our customers have kept us busy and, behind the scenes, a lot of hard
work has been going on to take us into the future as a transport and logistics
partner they can rely on.
Within the home, outside, at work or at play, every day Kiwis are touching a
product either transported or stored by TIL. More than 1,000 TIL trucks are
delivering fuel, bottled gas, building materials, food, groceries, beer and wines
to customers across New Zealand. We are managing container movements,
enabling our tremendous Oil & Gas industry in the Taranaki, and even moved all
the containers and arranged the setup for the recent Volvo Ocean Race. This
will continue with the America’s Cup. It’s just what we do.
Our most recent highlight has been the signing of a long term, exclusive
strategic supply contract with Z Energy. It is pleasing to retain and build on this
important customer relationship, based on a competitive process where our
past commitment, performance, value add and ability to respond were taken
into consideration.
This first newsletter has a technology flavour. Technology allows us to do
things ever better, faster, and more efficiently than they have been done in the
past. I’m very proud of our teams’ achievements across the Group in taking
advantage of the opportunities technology affords to protect and enhance our
assets and operations.
In recent months, we have moved our IT infrastructure to the Spark Data
Centre and into the cloud, launched a new customer portal for TIL Freight, and
created bespoke logistics software for Pacific Fuel Haul. You can read more
about these technology innovations in this newsletter.
We recently provided an update on our trading for the second half of the
financial year. For the year ending 30 June 2018, we expect to deliver sales
in line with the strong first half but with lower earnings. The full year result is
expected to be below PFI, due to some headwinds and a few unanticipated
operational factors not included in the PFI forecasts. You can read the full
announcement at www.til.kiwi/investor-centre-menu/investor-news.
The Board remains confident in the company’s ability to continue its growth
and deliver shareholder value. We are currently assessing a number of
acquisition opportunities and expanding the fleet.
I hope you enjoy reading our newsletter, and that it will give you insights into
the many ways TIL is much more than “just a trucking company.” ¢
Alan Pearson
Alan Pearson, Chief Executive Officer
IN THIS ISSUE
Pacific Fuel Haul renews long
term partnership with Z Energy
Centralising our IT
Introducing Mercury – TIL
Freight’s new customer portal
Bespoke software launched
by Pacific Fuel Haul
MOVEing to a paperless office
Managing the Volvo Ocean
Race – Bump In, Bump Out
Introducing Richard Mather,
CEO, MOVE Logistics
CONTACT US
330 Devon Street East
Private Bag 2040
New Plymouth 4342
New Zealand
Tel: 06 755 9990
Email: investorenquiry@til.kiwi
SHAREHOLDER NEWS
JULY 2018

2TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2018
PACIFIC FUEL HAUL RENEWS LONG
TERM PARTNERSHIP WITH Z ENERGY
Pacific Fuel Haul (PFH) is one of the largest operators
in the New Zealand fuel delivery market, with more than
200 tankers specialising in delivering dangerous goods
around the country.
In a commercial milestone, the business has renewed
its partnership with Z Energy, with the signing of a long
term, exclusive, strategic supply contract, with increased
volumes and wider distribution.
The renewed contract covers the North and South
Islands and includes cartage of petroleum and aviation
fuel for both of Z Energy’s brands, Z and Caltex.
TLL CEO, Alan Pearson said: “PFH’s point of difference
is in having the resources available to meet unseasonal
or unexpected demand. This was demonstrated last
year through the support we provided during the
disruption to the fuel pipeline supply.”
Pacific Fuel Haul has been awarded numerous Health
and Safety Awards throughout Australasia “and this
certainly helped in Z Energy making the final decision,”
Pearson said.
Z Energy Commercial Optimisation Manager, Hamish
Dyer, said: “The contract with Pacific Fuel Haul (PFH)
is more than a contract with a supplier; we are building
a performance focussed extraordinary partnership
where Z, PFH and our customers can have ongoing and
sustainable benefits realisation.
“This contract provides greater security of supply
for our customers, and supports Z’s commitment to
environmental sustainability, with PFH’s commitment
to higher drop sizes meaning less trips to deliver the
same volume and therefore less carbon emissions from
transport.” ¢
MOVING TO THE CLOUD AND A
CENTRALISED IT INFRASTRUCTURE
“One day of down time is too much”
Having a safe, robust and efficient IT infrastructure
is essential to TIL’s operations, and we take business
continuity and risk management very seriously.
A year ago, TIL moved all its servers, storage, and
core network equipment to the Spark Data Centre
in Auckland, and we are now effectively operating in
the cloud. The state of the art, $60 million Spark Data
Centre is built to withstand natural disaster, terrorist
attack, fire and other risks and it frees up our IT
resources while reducing our capital costs.

3TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2018
Our IT demands are not light.
• Every day, TIL manages around 30Tb (terabytes) of
data in various forms, which is roughly equivalent to
60,000 hours or 6.5 years, of movies non-stop.
• The company sends and receives between 180,000
and 200,000 emails every week, of which around
100,000 are external and the remainder are internal.
That’s an average of every user sending/receiving
500 emails per week.
• Approximately 5,000 consignments are sent via
EDI (Electronic Data Interchange) every week,
removing the need for manual data entry. If each
consignment took 1.5 minutes to enter, that’s a
saving of 125 hours of human data entry each week.
• Collectively, across the company, we use over 200
Gb (Gigabytes) of internet every week. ¢
INTRODUCING MERCURY - TIL
FREIGHT’S NEW CUSTOMER
PORTAL
From Paper to Portal
TIL Freight deals with over 3,000 customers every
year, with the size and capacity of its fleet allowing it to
transport almost anything, anywhere in New Zealand.
Now the launch of a new user-friendly customer web
portal, Mercury, is providing a new and better way for
TIL Freight’s customers to interact with us.
Mercury allows customers to view existing
consignments and create new ones. It offers a far
greater level of flexibility and user experience, and the
ability to search by status, date range and destination,
to name just a few of its features and capabilities.
For TIL Freight’s staff, it will make the onboarding of
new customers a great deal easier.
For customers, Mercury is designed to function on
smartphones, tablets and desktop screens – a welcome
feature for many of our clients, who want to access
information on the go.
Finally, the Mercury launch has changed the way
communication is handled by the Customer Service
Centre. A new chat system replaces many of the forms
or email addresses previously displayed on TIL Freight’s
website, providing the customer with a far more relaxed
area to ask a question or request a quote.
Mercury is another exciting step to bringing TIL
Freight to the forefront of the latest customer facing
technology available. ¢
DG 1.0 BESPOKE SOFTWARE
HITS THE ROAD
Pacific Fuel Haul employs around 300 trained
and DG (dangerous goods) certified staff
and has invested heavily in specialist fuel
distribution equipment and new technology.
Recently, after a year in development, the
business conducted live trials of its new
bespoke despatch and scheduling software, DG
1.0.
The DG stands for “dangerous goods” and the
software is the most sophisticated available,
says Matt Horan, PFH’s General Manager.
“DG 1.0 will largely move us into a paperless
world and will enable us to make better
decisions around managing our despatches.
“It will alert despatchers if deliveries are
falling behind in real time so we can make
adjustments. That includes simple “drop and
drag” of product volumes onto units to increase
or decrease volumes as needed.”
Interfacing with drivers’ tablets, DG 1.0
functionality includes a built-in roster system
and time sheets, an induction module for
drivers going onto new sites, a vehicle
maintenance module, sign-on-glass capability
to confirm delivery, a map module, and
reporting modules.
DG 1.0 is owned by PFH and can easily be
customised for TIL sister companies in the
future, Matt says. ¢

4TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2018
MOVE-ING TOWARDS A
PAPERLESS OFFICE
Pacific Fuel Haul is not the only business
going paperless in TIL Logistics Group. MOVE
Logistics this month completed the upgrade
of its Warehouse Management System (WMS),
moving to a paperless environment for all its
operational sites.
The upgrade allows staff to do stock checks,
stock takes, cycle counts, putaways, manual
moves, pallet updates, warehouse adjustments
and a host of other tasks electronically.
Significant productivity gains are already
being reported. For example, cycle counts that
used to take two to three days are now being
completed in less than a day.
The project has taken 12 months to complete,
but disruption to clients has been minimal and
the upgrade has enabled improved customer
communication. ¢

5TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2018
VOLVO OCEAN RACE – BUMP IN,
BUMP OUT
The Volvo Ocean Race stopover earlier this year was
a resounding success and all those who visited the
Viaduct in Auckland would have been amazed at the
size of the “pop up” village and the layout.
What a lot of people may not have realised was that
the majority of the Village was shipped in and out from
overseas.
TNL Pindar, a partnership involving TIL Logistics’
TNL International and the race’s official logistics
provider, GAC Pindar, were heavily involved, shipping
in containers from Lisbon, Cape Town, Melbourne and
Hong Kong during the “Bump In”, and shipping them
back out to Philadelphia, Gothenburg, Punta Arenas and
Brazil for the next stages.
The Volvo Ocean Race Village sprang up in ten days and
had to be packed up again in five.
TNL Pindar’s Richard Thorpe slotted in on the ground,
contributing his local expertise to organise suppliers
from trucking to crane, forklift to scissor lift hire, and
even welders and container repair services. ¢
“Sure, there were a few challenges,
but the experience of GAC Pindar’s
On the Ground Team combined with
my local knowledge meant we were
able to quickly sort these out for the
stakeholders and keep everything on
track.”- Richard Thorpe
Credit: Brian Carlin/Volvo Ocean Race
Richard Thorpe from TNL Pindar was on the
ground, organising local logistics in Auckland

6TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2018
INTRODUCING.... RICHARD MATHER,
CEO MOVE LOGISTICS
With a working week split between MOVE’s operations
in Auckland and his home in Christchurch, CEO of
MOVE, Richard Mather, has a busy life.
Richard joined MOVE in 2015 and became part of the
TIL group in 2017 when the business was acquired
by TIL. He is responsible for the operational and
financial performance of the business, which includes
more than 400 staff and a fleet of modern vehicles
and warehouses nationwide. MOVE delivers hundreds
of orders every day, from a single carton to full
container loads of customers’ product and also offers
warehousing, logistics, supply chain solutions and crane
truck services.
A qualified chartered accountant, Richard has
previously worked in the banking and financial sector
and, most recently, was CFO of Blackbay Limited, a
global software company supplying to the transport
and logistics industry.
He notes recent work highlights as the integration of
MOVE into the wider TIL group and helping to establish
TIL’s expanded logistics offer, as well as the transition
into a publicly listed company.
Weekends will usually see Richard on a sports field –
playing cricket in summer for local Christchurch club, St
Albans, and watching his two children play sports in the
winter months. ¢
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UPCOMING KEY DATES
Financial Year End: 30 June 2018
Results Announced: By end-August 2018
Annual Report: By end-September 2018