TIL Provides Earnings Guidance

26 June 2020
Company Announcement

TIL Logistics Group Provides Earnings Guidance

• While TIL Logistics’ businesses are recovering post the lifting of Covid-19 restrictions, the Covid-
19 event has had a material impact on the underlying trading performance of the Group and
the wider economy and the Board retains a cautious outlook.
• Good progress is being made on FY20 initiatives to drive Group performance.
• For the financial year ending 30 June 2020 (FY20), EBITDA (excluding impact of IFRS 16) is
expected to be between $25m and $27m, down on the prior comparative period (FY19) of $28
million, but ahead of the March 2020 guidance of $23-$24 million EBITDA that was withdrawn
at the beginning of the Covid-19 restrictions later that month.
• For FY21 financial year, EBITDA is expected to be at least that of the FY20 result.

New Zealand freight and logistics company, TIL Logistics Group Limited (NZX: TLL, “TIL”), advises
that its businesses are recovering since the lifting of Covid-19 restrictions. While management
remain cautious about the trading environment, there is now greater certainty around the impact
of Covid-19 and ongoing performance, and the Company is reissuing guidance for the FY20 financial
year.

TIL Logistics is expecting FY20 EBITDA (excluding the impact of IFRS 16) to be between $25m and
$27m. For the following FY21 financial year, EBITDA is expected to be at least that of the FY20
result.

While a number of TIL Logistics’ businesses continued to operate as essential businesses during the
lockdown, all divisions were adversely affected by Covid-19. The Company implemented a number
of measures during this time, including those set out below:

• The Government wage subsidy allowed for TIL Logistics to retain and pay over 1,500
employees at least 80% of their wages.
• Increased focus on efficient use of the fleet.
• The Directors reduced their fees by 25% and the Executive Team reduced their salaries by
20% during Alert Level 4.
• TIL received support from some landlords and its asset leasing partner during the period.
TIL also worked closely with its customers to offer them support where possible.
• TIL’s level of essential service trading and recovery since lockdown, combined with the
wage subsidy, provided the liquidity required to trade through the Alert Levels 2 - 4.

Cashflow and cost control remains a priority and all non-essential operating expenditure and capital
expenditure continues to be carefully reviewed.

Good progress being made on FY20 initiatives to drive Group performance
• Previously announced initiatives to lift the performance of the Freight division are
continuing, with a stronger management and operational structure and an increased focus
on sales and marketing functions. A new Executive General Manager has been appointed
and is leading the turnaround plan for the Freight Division.

• Technology remains a key focus, with final testing of the new Transport Management
System now complete and to be rolled out over the next few months, which is expected to
further enhance the efficient use of the fleet.
• Recent procurement initiatives are expected to deliver long term cost benefits.
• Strengthening of the executive team with a number of new appointments over the last
year.
• Continuing focus on sustainability with investment into new electric forklifts, green building
standards for new warehouses, and ongoing partnership with Hiringa Energy around
hydrogen fuel solutions.
• In March 2020, TIL acquired the outstanding shareholding in the ATL joint venture. This will
further enhance the freighting opportunities within Central Otago and provide a more
streamlined service for customers and suppliers, with financial benefits being recognised in
TIL Logistics’ consolidated trading performance.
• Performance from MOVE’s expanded warehousing business remains solid, but with less
stock movements over the Covid-19 lockdown period.

Operating Environment Outlook

While the future outlook for TIL Logistics remains positive, the flow-on effect of Covid-19 will be felt
for some time and the company retains a cautious outlook on the economy and the trading
environment.

TIL should be better placed than many other businesses in the ‘new normal’, with strong brands
and a diverse customer base across multiple sectors, some of which have been seeing strong
performance levels, such as in the aquaculture, viticulture and other primary industries, however
the speed of the recovery in the construction, retail and energy sectors remains uncertain. 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. TIL Logistics is well positioned to
take advantage of opportunities within the sector.

ENDS

For further information and media assistance, please contact:

Alan Pearson
Chief Executive Officer
Phone: +64 6 7559457
Email: alan.pearson@til.kiwi

Lee Banks
Chief Financial Officer
Phone: +64 27 525 2876
Email: lee.banks@til.kiwi
Jackie Ellis
Media Liaison
Phone: + 64 27 246 2505
Email: jackie@ellisandco.co.nz

About TIL Logistics Group Limited (TLL)
TLL is one of the largest domestic freight and logistics businesses in New Zealand, with a nationwide
network of branches, depots, cross docks and warehouses offering a comprehensive range of
services. TLL provides a comprehensive end to end supply chain service, across Freighting, Bulk
Liquids, Warehousing & Logistics, Specialist Lifting and Transport, and International Freight
Forwarding.