TIL Logistics Group Shareholder Newsletter

1TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2020
EXECUTIVE UPDATE
Dear Shareholder
We are now emerging from what has been an unparalleled economic
period, with most businesses and movements around the country
virtually coming to a halt. We were privileged that a number of our
businesses were able to continue offering essential services during this
time, delivering and warehousing essential goods around the country.
Our businesses are now recovering post the lifting of the Covid-19
restrictions, however, it is clear that the Covid-19 event has had a
material impact on the underlying trading performance of our Group, as
well as the wider economy.
While we remain cautious about the trading environment, there is
now greater certainty around the impact of Covid-19 and ongoing
performance, and we have recently reissued guidance for the FY20
financial year. You can read a summary of the guidance announcement
on the next page.
Our focus over the past two months has been to maximise job security
as much as possible and, with the assistance of the government wage
subsidy, we were able to pay those employees stood down on furlough,
80% of their pay during the lockdown, while maintaining normal wages
for those able to work. I would like to acknowledge the efforts and
support of all our people during what was a particularly challenging time
for many.
We took a number of other measures including an increased focus on
efficient use of the fleet, director and management pay reductions, and
we received support from some landlords and our asset leasing partner.
We also worked closely with our customers to offer them support where
possible.
Cashflow and cost control remains a priority and all non-essential
operating expenditure and capital expenditure continues to be carefully
reviewed.
While the future outlook for our company remains positive, the flow-on
effect of Covid-19 will be felt for some time. For example, while some
sectors have been seeing strong performance levels, such as in the
aquaculture, viticulture and other primary industries, the speed of the
recovery in the construction, retail and energy sectors remains uncertain,
and the tourism and hospitality sectors are being hit hard, which leads to
less freight and warehousing demand for things like alcoholic drinks, fuel
and food supplies.
It’s times like these when the advantages of a local supply chain are
especially evident. We’ve all heard the calls for ‘our team of 5 million’ to
go out and buy local. We encourage the New Zealand corporate sector
to do the same, as we work together to rebuild our economy.
Alan Pearson, Chief Executive Officer
IN THIS ISSUE
FY20 EARNINGS
GUIDANCE
STEAMING HOME WITH SLTG
INVESTMENT INTO NEW
TRUCKS
ABOUT US:
TNL INTERNATIONAL
OUR CUSTOMERS:
NZ KING SALMON
WINDFARM BLADES
TRANSPORTED
FOCUS ON SAFETY &
SUSTAINABILITY
INTRODUCING MAURICE
GWILLIM
NEW LEADERSHIP FOR TIL’S
FREIGHT DIVISION
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 2020

2TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2020
As we reset and turn our minds to our future plans,
we believe there is an opportunity for businesses to
do things differently. In particular, for us, that means
better utilising technology and continuing our
sustainability journey.
We are pleased to be rolling out our new Transport
Management system across our freight businesses
and have also recently implemented Z Energy’s
Ortech technology in our Pacific Fuel Haul fleet.
Both of these platforms are intended to create
significant efficiencies, reduce cost and waste, and
help to optimise haulage routes which is better for
our business and for our planet.
We recognise that the transport industry will always
have some impact on the environment but have
started on a journey to reduce this where possible.
We are now selling electricity back onto the grid,
generated by the solar panels on our warehouse roof
in Rolleston. We’ve invested in new electrical forklifts
and new warehouses are built with sustainability in
mind.
We’re continuing our partnership with Hiringa
Energy, which is moving at pace with Waitomo
Group setting up hydrogen refuelling stations
and New Zealand’s largest truck leasing business
providing funding to allow big corporates to move
to hydrogen fuel.
We are confident TIL will emerge stronger and
better in the years ahead and we’re making good
progress with our FY20 initiatives. Our priority is
the turnaround of the Freight division and we are
pleased to have welcomed two experienced leaders
to our Freight business, Dallas Vince as Executive
General Manager and Dale Slade as General
Manager Sales.
TIL should be better placed than many other
businesses in the ‘new normal’, with strong brands
and a diverse customer base across multiple sectors.
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. In line with
this, in March 2020, we 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.
We wish all our customers and shareholders well.
Thank you for your continued support.
¢
Alan Pearson
Chief Executive Officer
FY20 EARNINGS
GUIDANCE
TIL Logistics’ businesses are recovering
post the lifting of Covid-19 restrictions
and good progress is being made
on FY20 initiatives to drive Group
performance.
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.
To view the full announcement,
click here.

3TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2020
STEAMING HOME WITH SLTG
A collection of old locomotive engines which have been sitting on tracks near Auckland’s waterfront for
many years, have finally been moved to their new home at Mainline Steam Heritage Trust in Mercer. Due to
their size and the fact they were no longer operational, rail was not an option. So Specialised Lifting and
Transport Group was contracted to move them by road, loading them in Parnell in the early hours of the
morning, transporting them to Mercer and then offloading them onto a purposely constructed ramp.
¢
WE ARE COMMITTED TO PROVIDING THE BEST SERVICES, EXCEEDING
THE EXPECTATIONS OF OUR CUSTOMERS, AND CREATING
SUSTAINABLE VALUE FOR OUR SHAREHOLDERS AND STAKEHOLDERS.
We focus on
team safety
ensuring every
employee
arrives home
safe and sound
whatever their
role.

This includes
training our
staff in the
latest safety
procedures and
using quality
equipment as
part of our
processes.

We are focused
on the needs of
our customers.
We recognise
without
customers we
have no
business and do
what it takes to
be our
customers’
logistics partner
of choice.
We are easy to
do business
with, collabo-
rate, and learn
from outcomes
with our
customers.
We are
committed to
providing the
best services,
exceeding
expectations of
our customers,
and creating
sustainable
value for our
shareholders
and
stakeholders.
We strive to be
leaders in
logistics
innovation and
welcome new
technology with
enthusiasm and
interest.

We always look
for ways to
improve our
effectiveness
and efficiency.
We do what we
say we will do.
We act openly
and honestly
both within the
organisation
and with our
customers.

We value ethics,
integrity and we
do what is right.
We work
together as a
cohesive group,
to empower our
individual
strengths.

All employees
are given the
opportunity for
growth and
development.

We show pride
in the
appearance of
ourselves and
our equipment.

We all share a
“can do”
attitude.
We want to be
a leader in
sustainable
logistics
services.

Creation of a
sustainable
strategy that
focuses on our
people,
customers,
investors and
communities,
is important.

Our strategy
extends to
emission
reduction
targets and
transparent
reporting, aim
being a better
environment
for us all.
RESULTS DRIVEN
Technology continues to play an important role in our
business, delivering benefits for customers as well as increased
insight into our performance and greater efficiencies across
our business.
Over the past 12 months, we have been working with BluJay
Solutions to leverage their transport management system
(TMS) technologies for our business. The project continued
at pace during the level 4 lockdown, with final testing now
completed. Alexandra Transport Limited (ATL), our trucking
business based in Cromwell, is the first to pilot the system
and will provide the training base for the rest of the freight
business as the system is rolled out over the next few months.
The TMS solution will help support an overall increase in
performance for the company.
Not only will we have an ‘easier to use’ system for staff and
customers, but a system that provides greater visibility,
enabling smarter optimisation of our networks and the ability
to operate more efficiently.
¢
WE STRIVE TO BE LEADERS
IN LOGISTICS INNOVATION
AND WELCOME NEW
TECHNOLOGY WITH
ENTHUSIASM AND INTEREST.
WE ALWAYS LOOK FOR
WAYS TO IMPROVE OUR
EFFECTIVENESS AND
EFFICIENCY.
We focus on
team safety
ensuring every
employee
arrives home
safe and sound
whatever their
role.

This includes
training our
staff in the
latest safety
procedures and
using quality
equipment as
part of our
processes.

We are focused
on the needs of
our customers.
We recognise
without
customers we
have no
business and do
what it takes to
be our
customers’
logistics partner
of choice.
We are easy to
do business
with, collabo-
rate, and learn
from outcomes
with our
customers.
We are
committed to
providing the
best services,
exceeding
expectations of
our customers,
and creating
sustainable
value for our
shareholders
and
stakeholders.
We strive to be
leaders in
logistics
innovation and
welcome new
technology with
enthusiasm and
interest.

We always look
for ways to
improve our
effectiveness
and efficiency.
We do what we
say we will do.
We act openly
and honestly
both within the
organisation
and with our
customers.

We value ethics,
integrity and we
do what is right.
We work
together as a
cohesive group,
to empower our
individual
strengths.

All employees
are given the
opportunity for
growth and
development.

We show pride
in the
appearance of
ourselves and
our equipment.

We all share a
“can do”
attitude.
We want to be
a leader in
sustainable
logistics
services.

Creation of a
sustainable
strategy that
focuses on our
people,
customers,
investors and
communities,
is important.

Our strategy
extends to
emission
reduction
targets and
transparent
reporting, aim
being a better
environment
for us all.
INNOVATION

4TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2020
One of the recent additions to the McAuleys Transport fleet is this K200 Kenworth pulling a 6 axle chiller
B-train to transport live bees around New Zealand during the manuka honey season. In between seasons,
it will be transporting timber and general goods New Zealand-wide.
¢
INVESTMENT INTO NEW TRUCKS
LESS TRAFFIC A BONUS AS MASSIVE WINDFARM BLADES TRANSPORTED
Construction may have been paused on the Turitea windfarm due to the Covid-19 shutdown, but work to move the
99 massive wind turbine blades from Port Taranaki to Palmerston North remained underway, as the transport is
deemed essential to create space in the Port for incoming cargo.
Specialist heavy haulage brand, Machinery Movers (a part of TIL Logistics’ Specialist Lifting and Transport Group),
undertook the daily 237km runs to transport the 56 metre blades. Two blades were transported each day, with the
full cargo now completed and safely stored in Palmerston North awaiting construction to recommence.
The massive transport job was made easier with less traffic on the road, however, the logistics of traversing
through roundabouts and local streets is still a challenging one. For a quick look, check out this great video on
our Linkedin page https://www.linkedin.com/company/til-logistics-group/
¢

5TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2020
ABOUT US:
TIL INTERNATIONAL DIVISION
TIL International is a global logistics specialist,
comprising four brands - TNL International, Liquid
Logistics, Hookers Shipping and Alpha Customs.
The businesses work together to create tailor-
made solutions for clients looking to move items
internationally, from small time-critical items to large
turnkey projects.
TIL International has offices in New Zealand and
Australia, and partnerships with over 250 service
providers which specialise in their own geographical
areas.
Like all of our businesses, technology is a key
enabler to ensuring the smooth and predictable
movement of freight and TIL International utilises the
world’s leading freight management solution.
Services include air and sea freight, coastal shipping
and customs brokerage, and cover areas such as:
• Entertainment and events: Events logistics is
fast-moving and demanding. We get involved
from the start of the planning phase, offering
advice to event organisers, tour promoters
and production managers on the most
cost-efficient mode to transport specialist
equipment such as sound systems, lighting,
staging, musical instruments and other props.
• Marine logistics: TNL International is your go-to
specialist for sailing and powerboat logistics.
We have been delivering efficient and value-for
money logistics services tailored to the needs
of the marine industry, sport, leisure and events
community since 2012.
• Liquid logistics: Our specialty is the safe
international transportation of liquid cargo with
a full complement of chemical and food-grade
ISO Tank solutions. This includes wine, beer and
spirits, oils, juices, milk, fructose and other food
materials.
¢
OUR CUSTOMERS:
NZ KING SALMON
TIL has been associated with NZ King Salmon
(NZKS) since its inception.
NZKS produces 50% of the world’s King salmon and
is looking to expand, with plans to farm in the open
ocean. Blue Endeavour would be situated 9km north
of Cape Lambert in the Cook Strait and resource
consent has been lodged for two farms. Each of
these would produce 4,000 tonnes of salmon
each year. If approved, the new farms will run in
conjunction with the NZKS’ existing nine operational
farms that currently produce 8,000 tonne of salmon
per year.
• TIL Logistics handle all the NZKS salmon feed
that is imported from Tasmania and Chile.
• TNL International handle the documentation with
MOVE Logistics, the de-vanning and storage.
• TIL Freighting transports the feed to the barges
at the Havelock and Picton wharfs.
Smolt cartage is also handled by TIL Freighting
and is one of the most technical and demanding
operations that TIL Freighting perform.
It involves transporting the smolt (baby salmon)
from the NZKS Hatchery at Tentburn/Southbridge
to the Havelock and Picton barges. The smolt
is transported in purpose-designed tankers,
with hi-tech computer systems that measure
the CO2 in each compartment of the tankers. In
adverse conditions more oxygen is added to any
compartments when required. Each unit has a
large generator to power this system. The current
movement involves six drivers and Operations
Management.
¢
WE DO WHAT WE SAY
WE WILL DO. WE ACT
OPENLY AND HONESTLY
BOTH WITHIN THE
ORGANISATION AND
WITH OUR CUSTOMERS.
WE VALUE ETHICS,
INTEGRITY AND WE DO
WHAT IS RIGHT.
We focus on
team safety
ensuring every
employee
arrives home
safe and sound
whatever their
role.

This includes
training our
staff in the
latest safety
procedures and
using quality
equipment as
part of our
processes.

We are focused
on the needs of
our customers.
We recognise
without
customers we
have no
business and do
what it takes to
be our
customers’
logistics partner
of choice.
We are easy to
do business
with, collabo-
rate, and learn
from outcomes
with our
customers.
We are
committed to
providing the
best services,
exceeding
expectations of
our customers,
and creating
sustainable
value for our
shareholders
and
stakeholders.
We strive to be
leaders in
logistics
innovation and
welcome new
technology with
enthusiasm and
interest.

We always look
for ways to
improve our
effectiveness
and efficiency.
We do what we
say we will do.
We act openly
and honestly
both within the
organisation
and with our
customers.

We value ethics,
integrity and we
do what is right.
We work
together as a
cohesive group,
to empower our
individual
strengths.

All employees
are given the
opportunity for
growth and
development.

We show pride
in the
appearance of
ourselves and
our equipment.

We all share a
“can do”
attitude.
We want to be
a leader in
sustainable
logistics
services.

Creation of a
sustainable
strategy that
focuses on our
people,
customers,
investors and
communities,
is important.

Our strategy
extends to
emission
reduction
targets and
transparent
reporting, aim
being a better
environment
for us all.
PROFESSIONALISM

6TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2020
SUN SHINING BRIGHTLY ON SOLAR
PANELS IN ROLLESTON
The move to harness the power of the sun took place
on 20 February this year, when MOVE turned on the
switch on its new Solar Installation at Rolleston. A
late push before completion of the Rolleston Stage
2 development saw 282 solar panels installed on
the roof. Each panel has a peak output of 315 watts,
which equates to a total potential annual output
of 97,500 kilowatt hours per year. To put this into
perspective, its about 30% of the energy use for
the site, saving us money on our power bills and
providing a more sustainable way for us to generate
our own energy.
¢
IN OTHER ‘GREEN’ NEWS....
We are continuing to support
Hiringa Energy who are looking
to develop hydrogen fuel
transport solution for New Zealand.
They have recently announced a partnership
with Waitomo Group to host New Zealand’s first
hydrogen refuelling stations. This is an essential first
step to creating a nationwide network that can be
used by transport operators, such as TIL.
¢
TIL is collaborating with
the Sustainable Business
Council and other
members of the Climate
Leaders Coalition to develop a pathway for a low
emission freight system for New Zealand. This
includes looking at solutions to lower emissions
(such as driver training, fleet maintenance, fuel
management and route optimisation), low emission
vehicles (from trucks and trains to forklifts and port
handling equipment), and cleaner, renewable fuels.
¢
FOCUS ON SAFETY
NO HARM - TO PEOPLE,
THE ENVIRONMENT OR
OUR ASSETS
Safety remains a primary focus for all staff
and its importance is recognised in our
refreshed Values statements.
The Safety and Sustainability team has
recently been restructured, moving from
a business focus to a regional, group-wide
focus. Team members have skills spanning
driver development, safety, quality and
environment/sustainability with a number
of newly recruited team members bringing
additional skills and capability to the
table. This reinforces TIL Group’s focus
on delivering Health, Safety, Wellness and
improved Driver Capability capacity.
¢
We focus on
team safety
ensuring every
employee
arrives home
safe and sound
whatever their
role.

This includes
training our
staff in the
latest safety
procedures and
using quality
equipment as
part of our
processes.

We are focused
on the needs of
our customers.
We recognise
without
customers we
have no
business and do
what it takes to
be our
customers’
logistics partner
of choice.
We are easy to
do business
with, collabo-
rate, and learn
from outcomes
with our
customers.
We are
committed to
providing the
best services,
exceeding
expectations of
our customers,
and creating
sustainable
value for our
shareholders
and
stakeholders.
We strive to be
leaders in
logistics
innovation and
welcome new
technology with
enthusiasm and
interest.

We always look
for ways to
improve our
effectiveness
and efficiency.
We do what we
say we will do.
We act openly
and honestly
both within the
organisation
and with our
customers.

We value ethics,
integrity and we
do what is right.
We work
together as a
cohesive group,
to empower our
individual
strengths.

All employees
are given the
opportunity for
growth and
development.

We show pride
in the
appearance of
ourselves and
our equipment.

We all share a
“can do”
attitude.
We want to be
a leader in
sustainable
logistics
services.

Creation of a
sustainable
strategy that
focuses on our
people,
customers,
investors and
communities,
is important.

Our strategy
extends to
emission
reduction
targets and
transparent
reporting, aim
being a better
environment
for us all.
SAFETY
We focus on
team safety
ensuring every
employee
arrives home
safe and sound
whatever their
role.

This includes
training our
staff in the
latest safety
procedures and
using quality
equipment as
part of our
processes.

We are focused
on the needs of
our customers.
We recognise
without
customers we
have no
business and do
what it takes to
be our
customers’
logistics partner
of choice.
We are easy to
do business
with, collabo-
rate, and learn
from outcomes
with our
customers.
We are
committed to
providing the
best services,
exceeding
expectations of
our customers,
and creating
sustainable
value for our
shareholders
and
stakeholders.
We strive to be
leaders in
logistics
innovation and
welcome new
technology with
enthusiasm and
interest.

We always look
for ways to
improve our
effectiveness
and efficiency.
We do what we
say we will do.
We act openly
and honestly
both within the
organisation
and with our
customers.

We value ethics,
integrity and we
do what is right.
We work
together as a
cohesive group,
to empower our
individual
strengths.

All employees
are given the
opportunity for
growth and
development.

We show pride
in the
appearance of
ourselves and
our equipment.

We all share a
“can do”
attitude.
We want to be
a leader in
sustainable
logistics
services.

Creation of a
sustainable
strategy that
focuses on our
people,
customers,
investors and
communities,
is important.

Our strategy
extends to
emission
reduction
targets and
transparent
reporting, aim
being a better
environment
for us all.
SUSTAINABILITY
WE FOCUS ON TEAM
SAFETY ENSURING EVERY
EMPLOYEE ARRIVES
HOME SAFE AND SOUND
WHATEVER THEIR ROLE.
THIS INCLUDES TRAINING
OUR STAFF IN THE LATEST
SAFETY PROCEDURES
AND USING QUALITY
EQUIPMENT AS PART OF
OUR PROCESSES.
WE WANT TO BE A LEADER
IN SUSTAINABLE LOGISTICS
SERVICES. CREATION
OF A SUSTAINABLE
STRATEGY THAT FOCUSES
ON OUR PEOPLE,
CUSTOMERS, INVESTORS
AND COMMUNITIES, IS
IMPORTANT. OUR STRATEGY
EXTENDS TO EMISSION
REDUCTION TARGETS AND
TRANSPARENT REPORTING,
WITH THE AIM BEING A
BETTER ENVIRONMENT FOR
US ALL.

7TIL LOGISTICS GROUP SHAREHOLDER NEWS JULY 2020
INTRODUCING MAURICE GWILLIM,
TRUCK #5676
Not long ago, one of NZL’s
longest serving drivers, Maurie
Gwillim, turned 75 years old.
Starting his career in 1965 in a
brand new 1113 Mercedes 4x4
when he was 20 years old,
Maurie now has 55 years of
driving trucks under his belt.
He started working for NZL
in 2009, by which time he’d
upgraded to a 700 series Hino.
Then, at 70 years old, he had a
decision to make – retire or replace the Hino and keep driving. The
new Mercedes 3260 in the driveway reflects the decision he made.
As he said in an article to New Zealand Trucking at the time, “I was
enjoying the driving and and if I decided to retire and sit on my
backside I would simply go to rot.”
Maurie drives all over the North Island and says the biggest
changes he has seen in the past 5 decades has been “There were
no cell phones in the early days and sealed roads were few and far
between. Nowadays, there’s better trucks, better roads and better
bosses - NZL is a great company to work for!”
He says he wants to see trucks remain on the roads. “Keep the
trucks on the road, I don’t think our country is big enough for
a complete rail system. Trucks can shift freight quicker & more
efficiently. I don’t mind rail, the main truck lines, but rail will never
be able to compete with trucks.”
¢
NEW LEADERSHIP FOR TIL’S FREIGHT
DIVISION
Dallas Vince, Executive General
Manager, TIL Freight
After 18 months in Papua New
Guinea heading up the supply
chain for a multinational food
company, coming back to
New Zealand was a welcome
change for Kiwi, Dallas Vince.
He’s excited to be leading
TIL’s portfolio of iconic freight
brands and says his efforts
are focused on collaboration,
growth and building success across the network.
People and technology are at the heart of the business,
believes Dallas. “We need to empower our people to make
informed decisions by using technology and accessing the
experience we have across the network. This in turn will
drive operational excellence across TIL.”
Dallas has spent the last few months settling back down into
life in Palmerston North with his family. Hiking and hunting
is a recent hobby and, now the lockdown has lifted, Dallas is
keen to get outdoors as much as possible.
¢
SHAREHOLDER
COMMUNICATIONS:
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