TIL Shareholder Newsletter: December 2018

1TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2018
EXECUTIVE REVIEW
A
midst a favourable business and economic
background, we have continued building your
company at the Group and Divisional levels,
passing a few more milestones along the way.
We had the pleasure of welcoming many of you to our first Annual
Shareholders Meeting (ASM) in New Plymouth on 26 October. Around
40 shareholders attended and it was good to meet some of you, hear
your views on TIL and watch a number of you test your skills on a driver
training simulator. Shareholders voted overwhelmingly to appoint all of the
Directors who have been serving you since TIL Logistics was formed and
listed in December last year.
With our transition to an NZX-listed company it has been a natural time
to establish a new Leadership Team structure. Some of our long-serving
senior staff have taken the opportunity to retire and we would like to
acknowledge and thank them for their significant contributions in building
TIL to the leading company it is today.
A new generation has stepped up, both from within our ranks and
externally. I’m very encouraged by the high calibre of the people we have
been able to promote and attract. They are already making valuable
contributions to our strategy and our operations.
At the divisional level, highlights from the latter half of 2018 have been
the acquisition of heavy haulage business SLTG and the Memorandum
of Understanding with Hiringa Energy to explore the development of
hydrogen fuel. We give more detail on these in this newsletter.
The logistics industry is at full capacity. This is not unusual at this time
of year. Both transport and warehousing services are fully utilised in the
lead up to Christmas. In the New Year, I expect TIL to continue at full
capacity during the first quarter and part of the second quarter due to the
traditional peak seasons in agriculture, viticulture, tourism, construction
and dairy.
The driver shortage means long hours are being worked and equipment
and warehouses are at full stretch. Health & Safety (H&S) remains a
priority and we continue to develop our H&S culture and systems, in
particular making use of the opportunities technology provides for greater
efficiency, reporting and oversight.
We expect to see economic growth continue across New Zealand.
However, the reality is that costs in our industry will be higher than
reflected in the Consumers Price Index (CPI). Increased fuel, wages,
property, Road User Charges and council rates, and higher costs for parts,
equipment, and tyres due to the lower exchange rate, mean costs will rise
at a greater rate than the CPI.
Alan Pearson, Chief Executive Officer
IN THIS ISSUE
Heavy Haul Muscles Up
Embedding Technology
in Health & Safety
Thinking Long Term –
Hydrogen Fuel Cells
Shaping the Future – the
Senior Leadership Team
On the MOVE and Growing
Introducing Warwick Bell,
CEO Specialist Transport
and Lifting
CONTACT US
330 Devon Street East
Private Bag 2040
New Plymouth 4342
New Zealand
Tel: 06 755 9990
Email: investorenquiry@til.kiwi
SHAREHOLDER NEWS
DECEMBER 2018

2TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2018
Staying up to date with continual technology
improvements is also coming at a cost but it delivers
significant benefits to our business, from in-cab,
trailer, and transport applications to warehouse
systems. Smaller operators unable to invest into
continually improving technology, or keep up with
step improvements in safety and environmental
needs, will find it difficult to compete other than
on price. However, over time, even this will be
challenged by customers’ growing demands.
The market remains volatile and we will continue
to monitor it carefully. We have indicated that
we expect EBITDA (earnings before interest, tax,
depreciation and amortisation) to be between $28
million and $32 million for the June 2019 year.
As 2018 turns into 2019, I wish all our shareholders
and their families a safe and happy holiday, and look
forward to reporting further solid progress in the
New Year. ¢
NEED TO MOVE SOMETHING
REALLY BIG? HEAVY HAUL
MUSCLES UP
On 1 November we settled the $19 million
purchase of Specialist Lifting and Transport
Group (SLTG), complementing our existing
Multi-Trans Heavyhaul business.
The SLTG group of three companies adds
revenue of around $15 million and positions
TIL Logistics as a leading heavy haul transport
provider for New Zealand, Australia and the
South Pacific.
The expanded business unit will be led by
CEO Warwick Bell (profiled separately in this
newsletter) and has around 75 staff.
Heavy haul – the transport of exceptionally
large, unusually-shaped or heavy items such
as transformers, bridges, boats and silo tanks
– involves specialised equipment and highly-
skilled, knowledgeable and dedicated people.
Multi-Trans never really had the scale TIL needed.
The addition of Tranzcarr provides a step change
for us in this sector and makes us one of the
leading providers.
Machinery Movers is a new area for TIL – moving
heavy equipment from place to place within an
existing business, or transporting it across New
Zealand.
Machinery Specialists provides advisory services
on the moving and transportation of very large
items.
Heavy haulage and specialised freight businesses
require scale, access to capital, and the depth
of knowledge and networking needed to bring
the right resources to bear on projects that each
present unique challenges.
The four different businesses now under TIL’s
umbrella complement one another so that
resources can be deployed to those units with
the heaviest workloads.
The SLTG acquisition is expected to be
immediately earnings-accretive, and dovetails
with our strategic aim of offering customers
an integrated suite of transport and logistics
services.
Looking forward, Multi-Trans will continue to be
busy in the electricity generation space. Across
New Zealand, some 17 wind farms are currently
consented or proposed and eight geothermal
projects are planned or under development.
¢
One of eight 235 tonne transformers en route to
Benmore Sub Station as part of Transpower HVDC
Pole 3 upgrade

3TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2018
EMBEDDING TECHNOLOGY IN
HEALTH & SAFETY
TIL recently signed an agreement with New Zealand
technology company EROAD to incorporate
EROADS’s Ehubo2 hardware and software into TIL’s
vehicle fleets.
Better checks and systems mean safer working.
This in-vehicle technology allows us to provide our
drivers, fleet managers and customers with next-
generation support for H&S compliance. It monitors
and reports on driver behaviour and practices,
and provides coaching and real-time feedback to
encourage positive behavioural change.
The contract covers more than 2,000 vehicles and
trailers across all of TIL’s divisions, upgrading the
in-vehicle technology we already have in place and
replacing some paper-based systems.
Embedding Ehubo2 exemplifies our approach to
H&S, in which the safety of our employees and
contractors, our customers’ employees, and the
public are paramount.
¢
THINKING LONG-TERM –
HYDROGEN FUEL CELLS
On 26 October we signed an MoU
(Memorandum of Understanding) with Hiringa
Energy, a Taranaki-based transport energy
company, to develop hydrogen fuel cell
technology in New Zealand.
The project will proceed in three phases.
In the first, from now until mid-2019, TIL and
Hiringa will develop business cases for pilot
projects and identify the key metrics for
commercial scaling.
The second phase will pilot hydrogen fuel cell
solutions for TIL’s operations, with a target for
initial vehicle trials in 2020.
All going well, phase three will see the rollout
of hydrogen fuel cells to power TIL’s vehicle
fleet, co-ordinated with investment in the
development of refuelling infrastructure,
which Hiringa is scoping and developing with
a range of partners.
Around the world, considerable research is
going into alternative technologies including
electric vehicles, biofuels, and making
fossil fuel-powered vehicles more efficient.
Technology is also driving efficiencies in fleet
scheduling and despatch, so that freight
movements are accomplished with the
minimum mileage driven.
TIL is monitoring all of these technologies and
is investing where appropriate. Our investment
with Hiringa will be modest until such time
as hydrogen is proven as a commercially and
environmentally sustainable transport fuel.
¢
THE LATEST IN IN-VEHICLE TECHNOLOGY
EROAD’s next generation in-vehicle hardware,
EHubo2, offers multiple, easy-to-use applications
on a single device, delivering better safety
outcomes for your business and improving
productivity and profitability.
¢
DriveBuddy provides real-time driver feedback
with audio and visual alerts
¢
Interfaces with EROAD web application,
Depot, to provide two-way messaging, fuel
management, RUC purchase and display and
driver behaviour reporting
¢
Personalisation and authentication for every
driver

4TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2018
SHAPING THE FUTURE – THE
SENIOR LEADERSHIP TEAM
The process of establishing our Group leadership
team is now almost complete, and we were
delighted to welcome several new faces to
our strategy session held in Auckland on 7-8
November.
Warwick Bell attended as the new CEO of our
Specialist Lifting & Transport division, which
includes our existing Multi-Trans business plus
our recent acquisitions.
Deana Barnard has joined us as Group General
Manager, Human Resources. She still holds
a Class 4 licence from her time running a
haulage company in the UK operating trucks
across Europe, and more recently managed
the international HR function of a successful
technology company employing staff around the
globe.
Some managers who have been with us for a
while, have also taken up positions in the Senior
Leadership Team.
On 1 October Maurice Corkery started in his new
role as Group Chief Information Officer. Maurice
was appointed Information Technology Manager
at MOVE Logistics in 2016, bringing with him 20
years of experience in business management, IT
and commercial advisory.
Clayton Imbs has taken on the role as CEO of our
International division, comprising Alpha Customs
Services, Hooker Shipping, Liquid Logistics and
TNL International. Clayton started work at Alpha
in 1984, becoming Managing Director in 2006,
and will now explore new business opportunities
for International. His appointment leaves Alan
Terris free to focus fully on the Group Marketing
role and establish a marketing services team to
support the divisional managers and their direct
teams.
Our long-serving Pacific Fuel Haul CEO, Andy
Stanley, retires in April next year and Stephen
Owles took the division’s reins in November.
Stephen joined TIL in September 2017 as a
consultant, having held senior positions across
the supply chain including the international
freight, 3PL logistics, warehousing and transport
service sectors.
¢
Front row (L-R): Brent Leak GM NZL; Alan Terris Group Marketing Manager; Lee Banks Group Financial Controller; Alan Pearson TIL Group
CEO; Deana Barnard Group HR Manager.
Back row: Clayton Imbs CEO International; Steve McMahon GM MacAuleys; Warwick Bell CEO SLT; Jon Kyle CEO TIL Freight;
Stephen Owles CEO Pacific Fuel Haul; Richard Mather CEO Move Logistics; Maurice Corkery Group CIO.

5TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2018
ON THE MOVE AND GROWING
MOVE Logistics is already a major player in the
logistics and warehousing sector and now it’s
expanding even further, with three planned site
developments to increase total warehousing
capacity by 25%.
The first of these is in Highbrook Drive in
Auckland, a busy industrial area. The extension
of the existing warehouse has begun and will see
pallet storage double to 19,000 pallets, extended
container yard space and better site access.
Just down the road in East Tamaki, a new
warehouse is being built and is due for
completion in mid-2019. This will have the
potential for 18,000 pallets, and is located in close
proximity to Lion Nathan’s brewing and bottling
plant, one of MOVE’s larger customers.
The third development is a new site in Rolleston,
Christchurch, with stage one due for completion
in February 2019. This will coincide with both the
completion of the Southern Motorway extension
and the lease expiry on the existing building.
Stage two of this development should be
completed in early 2021.
The Rolleston development is very much a
strategic move to create capacity, grow our
sector presence, attract a new range of customers
and to broaden our services to customers. There
are a number of potential benefits for our existing
customers including reduced container transport
costs, container triangulation benefits and
reduced supply chain costs.
There is enormous demand for high quality
warehousing and TIL will continue to look for
opportunities to expand or develop new sites in
targeted areas.
¢
FMCG A KEY AREA FOR MOVE
LOGISTICS
Fast Moving Consumer Goods (FMCG)
including beverages, food and other
grocery items, are a big part of MOVE’s
business and the company has developed
a reputation for its tailored logistics and
warehousing solutions. Lion Nathan is one
of the company’s larger customers. MOVE
provides warehousing and also has a fleet
of trucks and vans in both Auckland and
Christchurch, delivering Lion’s beverages
to bars and outlets, and it provides a
similar service for Independent Liquor.
Grocery and supermarket suppliers are
also benefitting from MOVE’s services,
including Bluebird, Suntory and Cerebos.
So next time you’re doing your shopping,
keep in mind that your company has
played an important part in making sure
stock is on the shelf, where and when you
need it.
¢

6TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2018
INTRODUCING.... WARWICK BELL
CEO SPECIALIST LIFTING &
TRANSPORT
Gisborne-raised Warwick Bell started his working
life as a Court Administrator, but quickly found
his real enthusiasm when he was hired by Mogal
Freight, which later became part of Owens Group.
He accepted an offer from Machinery Movers’ Dave
Carr in 1996, becoming the Managing Director.
The acquisition of a heavy haulage operation led
to the creation of Tranzcarr Heavy Haulage, with
Machinery Specialists added to provide expert
advisory services. Along with Multi-Trans, all
four businesses are now under the umbrella of
TIL’s Specialist Lifting & Transport division, with
Warwick at their head.
Warwick’s years at Tranzcarr saw him involved in
the transport contracts for the Te Apiti wind farm
in the Manawatu and Genesis Energy’s e3p power
station at Huntly.
But his biggest challenge was the relocation of
BHP’s entire ironsands processing plant at Taharoa
in Waikato to a new site five kilometres away.
To achieve this, Tranzcarr had to haul sections
of the plant weighing up to 1000 tonnes. This
involved building the road over which they would
be hauled, two landing areas and reinforcing a
bridge.
Warwick is a past Chairman and Life Member
of the Heavy Haulage Association, and has
represented the industry on government
consultation bodies.
Outside of work, he has been involved with surf
lifesaving for 40 years, serving on the NZ Surf
Lifesaving national board. Nowadays, he has
stepped back a bit from surf lifesaving and, when
he is not moving really big stuff, he can often be
found on the golf course.
¢
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UPCOMING KEY DATES
Half Year End: 31 December 2018
Results Announced: February 2019
Interim Report: March 2019