TIL Logistics Group Full Year Results to 30 June 2020

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer TIL Logistics Group Limited
Reporting Period 12 months to 30 June 2020
Previous Reporting Period 12 months to 30 June 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$333,811 (5.9%)
Total Revenue $333,811 (5.9%)
Net profit/(loss) from
continuing operations
$2,015 (49.7%)
Total net profit/(loss) $2,015 (49.7%)
Final Dividend
Amount per Quoted Equity
Security
$0.00
Imputed amount per Quoted
Equity Security
$0.00
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.15 $0.12
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer audited financial statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Lee Banks, CFO
Contact person for this
announcement
Lee Banks
Contact phone number 06 755 9405
Contact email address lee.banks@til.kiwi
Date of release through MAP

27 August 2020

Audited financial statements accompany this announcement.

---

27 August 2020
Company Announcement

TIL Logistics Group FY20 Results
For the 12 months ended 30 June 2020

• EBITDA (pre-NZ IFRS16) of $26.5m, in line with guidance of $25m to $27m.
• Net Profit After Tax (NPAT) of $2.0m. Pre-NZ IFRS16 adjustments, NPAT was $6.0m, up 50%
on pcp.
• Margins in line with or above prior year for all divisions, excluding Freight which underwent
review and reset in FY20.
• Adverse market conditions in 1H20 and COVID-19 in 2H20 had a material impact on all TIL’s
businesses.
• Year on year earnings growth for three divisions - Warehousing & Logistics, International and
Specialist. Improving performance from Freight in 2H, after a disappointing 1H. Bulk Liquids
materially impacted by reduced fuel demand during lockdown (pcp included a number of one-
off revenue benefits).
• No final dividend has been declared.
• Focus on cost reductions and right sizing the business for economic slowdown.
• Expecting recessionary downturn in FY21, with flow on effects for TIL’s businesses. The
company confirms its view that EBITDA for FY21 is expected to be at least that of the FY20
result of $57.4m post NZ IFRS16 adjustments.

$Millions FY19 Actual FY20 FY20 Actual


Pre-NZ IFRS
16
NZ IFRS 16
adjustments
NZ IFRS 16
Sales Revenue 354.6 333.8 - 333.8
Total Income 360.1 348.0 - 348.0
Operating Expenses 334.7 321.5 (30.9) 290.6
EBITDA 25.4
1
26.5 30.9 57.4
NPAT 4.0 6.0 (4.0) 2.0
Net Operating Cashflow 19.4 17.9 23.0 40.9
Total Assets 176.4 174.7 170.0 344.7
Bank Debt (84.3) (86.3) - (86.3)

New Zealand freight and logistics company, TIL Logistics Group Limited (NZX: TLL, “TIL”), has
reported a profit increase of 50% on a pre-NZ IFRS 16 basis, as it contended with adverse market
conditions in the first half of year and the significant impact of COVID-19 in the second half.

Key events in the year included a detailed review and reset of the Freight division, continued
growth through the acquisition of the remaining 50% of the ATL joint venture and expansion of
the warehousing footprint, and the securing of a major windfarm project. The Bulk Liquids
division also resolved commercial matters with a key customer and is in the process of negotiating
an extension to the contract from 2021.


1
FY19 EBITDA includes a one-off $2.6m in one-off and unusual non-cash transactions being $2.6m in additional
contingent consideration provisioning

Despite the essential service status of some of TIL’s businesses, COVID-related restrictions had a
material impact on many of the Group’s customers, with flow on effects for TIL’s operations and
earnings. The health, safety and wellbeing of staff and customers was the priority during this
period, and actions were quickly taken to respond to the pandemic environment. The company
received Government wage subsidies of $10.7m, partially offsetting the approx. $17m revenue
drop due to COVID-19 and allowing TIL to retain and pay over 1,500 employees at least 80% of
their wages, or 100% if working. Since the lifting of Alert Level 4 in May 2020, TIL’s businesses
have begun to recover, however, recent further restrictions in Auckland are testament to the
continuing volatility of this COVID environment.

Sales for the 12-month period were $333.8m, with Q4 FY20 sales down approximately $17m
compared to pcp, due to COVID-related restrictions. Despite this, the International and Specialist
divisions continued their trends of half yearly sales growth, with Specialist (acquired in the 2018
calendar year) benefitting from the commencement of a major windfarm project in 2H20.
Warehousing & Logistics was in line with the prior year, with growing utilisation of the new
warehouse capacity which has come online in the last 12 months partially offsetting the
additional costs associated with this growth.

All TIL’s divisions delivered improvements in EBITDA in the second half (particularly in Freight and
Bulk Liquids), after a disappointing first half performance, with results for all divisions also well
ahead of the second half in the prior year. This lift in performance, in part, reflects the efforts of
management to drive improvements in the business.

Three of the company’s five divisions delivered earnings growth in the year, with its largest
division, Freight, undergoing a significant reset after a disappointing first half performance.
Likewise, margins for all divisions, except Freight, were in line with or ahead of the prior year.

Actions have been taken to lift the performance of the Freight division including a stronger
management and operational structure, an increased focus on sales and marketing functions and
identifying opportunities to better utilise the Group’s scale and competitive advantage. These
actions are part of a continuing programme which is designed to drive improving revenue and
margins for the Freight division in FY21.

The focus on sustainability continues with the use of more electric forklifts, green building
standards for new warehouses and an ongoing partnership with Hiringa Energy around hydrogen
fuel solutions.

Net profit after tax was up 50% on a like for like basis (pre-NZ IFRS16) to $6.0m, with a reported
net profit after tax of $2.0m.

TIL has sound working capital disciplines resulting in a solid cash position at year-end of $11.9m.
Borrowings increased to $86.3m, reflecting the acquisition of the remaining 50% shareholding in
ATL, a Cromwell-based freight business.

Given the recessionary outlook and the sense that the full impact of COVID-19 has still to be felt,
the Board feels it is prudent to not declare a final dividend for FY20. Resumption of dividends in
FY21 will be considered subject to trading conditions and financial performance continuing to
improve.

Outlook and Strategic Priorities

TIL expects challenges from COVID-19 to continue in FY21 with the flow on effects to be felt for
some time. Given the expected economic downturn, TIL retains a cautious outlook.

However, TIL does see windows of opportunity, with COVID-19-related Government fiscal
stimulus likely to support increasing freight volumes; a global trend of businesses using 3
rd
party
warehousing & logistics providers (3PL) such as TIL ; and continuing high demand in some sectors
such as food & beverage, aquaculture, viticulture and other primary industries. TIL already has a
footprint in these sectors and will look to build on its reputation and expertise to grow its market
share.

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, and TIL is well positioned to
take advantage of opportunities within the industry.

The company has identified four areas of focus for FY21 being the continuing turnaround of the
Freight division, carefully targeted organic and acquisition growth, and building stronger
connections and synergies across the Group. Cash and cashflow management remains a priority.
Technology is a key enabler for the Group’s strategy, with new systems currently being refined to
further enhance efficiencies and performance.

TIL confirms its view that EBITDA for FY21 is expected to be at least that of the FY20 post NZ-
IFRS16 result of $57.4m.

CEO of TIL, Alan Pearson, commented: “FY20 was a tough year for our business and many others.
We believe the work we are doing to ensure our business is suitably positioned for the softer
economic conditions ahead will not just allow our company to survive but to take advantage of
opportunities in the sector and grow.

“Our Directors, managers and people have extensive industry knowledge and expertise, some of
which has been built up over decades of working in the sector and through economic cycles. We
believe this experience will be of benefit as we face the challenges of the coming year and make
the most of opportunities which will come our way.”

Further information on TIL Logistics Group’s FY20 results has been provided in the Investor
Presentation released to the NZX on 27 August 2020.

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 and warehouses. TLL operates through five divisions –
Freighting, Warehousing & Logistics, Bulk Liquid transport, Specialised Lifting and Transport and
International logistics.

---

TIL LOGISTICS GROUP LIMITED
FY20 Results Presentation for the year ended 30 June 2020
TIL Logistics Group FY20 Results Presentation

TIL LOGISTICS GROUP
•One of New Zealand’s largest domestic freight and logistics
platforms.
•Nationwide network of branches, depots and warehouses
and dedicated team of employees and contractors.
•Delivering product to over 3,500 customers with a low level
of churn and concentration.
•Over 220,000 square metres of warehousing capacity.
•Comprehensive service offer across the supply chain:
Transport (Freighting & Bulk Liquids), Warehousing &
Logistics, Specialist Lifting & Transport (SLTG), and
International Freight Forwarding.
TIL Logistics Group FY20 Results Presentation2

OUR VISION AND VALUES
3TIL Logistics Group FY20 Results Presentation
SAFETY.
We focus on team safety ensuring every employee arrives home
safe and sound whatever their role. This includes training our
staffinthelatestsafetyproceduresandusingqualityequipment
aspartofour processes.
PROFESSIONALISM.
We do what we say we will do. We act openlyandhonestlyboth
withintheorganisationandwithourcustomers. Wevalueethics,
integrityandwedowhatisright.
CUSTOMER.
We are focused on the needs ofour customersWerecognise
withoutcustomerswehavenobusinessanddowhatittakes to
be our customers’ logistics partner of choice. We are easy todo
businesswith,collaborateandlearnfromoutcomeswithour
customers.
INNOVATION.
We strive to be leaders in logistics innovation and welcome
newtechnologywithenthusiasmandinterest.Wealwayslook
forwaystoimproveoureffectivenessandefficiency.
SUSTAINABILITY.
We want to be a leader in sustainablelogistics services. Creation
of a sustainable strategy that focuses on our people, customers,
investors and communities, is important. Our strategy extends to
emissionreductiontargetsandtransparentreporting,with the aim
beinga betterenvironment for usall.
RESULTS DRIVEN.
We are committed to providing thebest services, exceeding
expectations of our customers and creating sustainable
value forour shareholders andstakeholders.
TEAM.
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 andourequipment. We all share a “can do”attitude.
Our Vision is to be Oceania’s premier transport and logistics company

FY20 OPERATING ENVIRONMENT
4TIL Logistics Group FY20 Results Presentation
First half:
•Adverse market conditions including softening
business confidence as well as slower than
expected pre-Christmas period.
•Particularlywet winter impacting construction &
building activity; forestry products hit hard by
China/USA trade war; Taranaki Oil & Fuel
industry impacted by Government Policy.
Building Products reflected negative sentiment
after a decade of growth.
Second half:
•Impact of COVID-19 in Q4 FY20 with a significant
decrease in economic activity.
•Material impact on many of TIL’s customers.
Impact on TIL:
•Adverse market conditions contributed
to significant underperformance of
Freight division in 1H20.
•Despite essential service status,
COVID-related restrictions had a
material impact on many of the
Group’s customers, with flow on
effects for TIL’s operations and
earnings.
•Since the lifting of the COVID-19
restrictions, the businesses have begun
to recover.

OUR RESPONSE TO COVID-19
•A number of TIL’s businesses continued to operate and support essential services during the
lockdown, albeit at reduced levels.
•Actions taken to respond to COVID-19 include:
-Government wage subsidy of $10.7m, partially offsetting ¬$17m revenue drop and allowing
TIL Logistics to retain and pay over 1,500 employees at least 80% of their wages, or 100% if
working.
-Increased focus on efficient use of the fleet.
-Reduced Director and Executive Team remuneration.
-Received some rent relief and support from asset leasing partner.
-Offered support to customers where possible.
-Cashflow and cost control remains a priority and all non-essential operating expenditure and
capital expenditure continues to be carefully reviewed.
•Material impact on volumes for a number of customers, with a flow on effect for TIL.
•Good recovery being seen following lockdown, however, further disruption now being seen from
recent restrictions in Auckland and across the country. Cautious outlook being taken.
5TIL Logistics Group FY20 Results Presentation

FY20 KEY EVENTS
•Detailed review and reset of underperforming Freight division; early benefits now being seen.
•Continuing refresh of the Senior Leadership Team; new Executive GM appointed to lead the Transport division.
•Acquisition of remaining 50% in ATL joint venture in February 2020, Cromwell-based freight business.
•Opening of new warehouses in Christchurch and Auckland (x2).
•Secured significant windfarm turbine transport contract.
•Positive resolution of commercial matters with key customer, with negotiations underway to extend the contract
beyond 2021.
•Ongoing investment into technology which is expected to deliver financial and operational benefits.
•Contingency planning and actions undertaken in response to COVID-19.
Post-period end
•Acquired assets and entered long term contract to supply heavy transport and logistics services to Fletcher
Construction’s Asset Hub.
6
TIL Logistics Group FY20 Results Presentation

FREIGHT IMPROVEMENT PLAN
Actions being taken:
•New management team -Executive General
Manager, GM Sales, Quality Manager, Owner
Driver Manager.
•Introduction of detailed sales planning practices.
•Focus on multi-modal and bundled solutions for
customers.
•Empowering local/branch management,
upgrading leadership practices.
•Better utilise the Group’s scale and competitive
advantage to deliver customer transport and
warehouse solutions across the country.
•Increase fleet and capacity utilisation; improve
the Owner Driver service function.
•Stronger connections between regional brands.
•Implement and leverage technology to deliver
operational and customer service excellence.
7TIL Logistics Group FY20 Results Presentation
100 day review revealed:
•Strong regional brands and employee and
customer loyalty to those brands.
However, lack of cohesiveness and
synergy.
•Assets, footprint, brands and customer
base offer significant competitive
advantage.
•Highlighted sales management
improvements.
•Opportunities to eliminate waste and
improve productivity, including route/load
planning.

FY20 RESULTS SNAPSHOT
8
TIL Logistics Group FY20 Results Presentation
$MillionsFY19 ActualFY20FY20 Actual
Pre-NZ IFRS 16NZ IFRS 16
adjustments
NZ IFRS 16
Sales Revenue
354.6333.8-333.8
Total Income360.1
348.0-348.0
Operating Expenses334.7
321.5(30.9)290.6
EBITDA25.4*
26.530.957.4
NPAT
4.06.0(4.0)2.0
Net Operating Cashflow
19.417.923.040.9
Total Assets
176.4174.7170.0344.7
Bank Debt
(84.3)(86.3)-(86.3)
*FY19 EBITDA includes $2.6m in one-off and unusual non-cash transactions being $2.6m in additional contingent consideration provisioning

FY20 RESULTS OVERVIEW
9TIL Logistics Group FY20 Results Presentation
NZ IFRS 16 for Leases was adopted from 1 July 2019. To provide a like for like comparative to the prior year, all comparatives below
are on a pre-IFRS16 basis:
•Results within updated guidance range provided in June 2020, with EBITDA (pre-NZ IFRS16) of $26.5m (guidance
$25m to $27m)
•Adjusted EBITDA (excluding unusual costs in FY19) slightly below prior year and in line with guidance.
•Net Profit After Tax (NPAT) of $6.0m, up 50% on pcp.
•Margins in line with or above prior year for all divisions, excluding Freight which has undergone review and reset
in FY20
•Material impact from COVID-19 on sales and volumes in 2H20.
•Year on year earnings growth for three divisions -Warehousing & Logistics, International and Specialist. Full year
contribution from Specialist following its acquisition in November 2018.
•Improving performance from Freight in 2H, after a disappointing 1H. Bulk Liquids materially impacted by
reduced fuel demand during lockdown; pcpincluded a number of one-off revenue benefits.
•Focus on cost reductions and right sizing the business for pending economic slowdown.
•No final dividend has been declared. Resumption of dividends in FY21 will be considered subject to trading
conditions and financial performance continuing to improve.

FY20 GROUP SALES BY INDUSTRY SEGMENT
10TIL Logistics Group FY20 Results Presentation
Food & Beverage
Energy, Oil & Gas
Building Products
Sub-contract
Transport Services
Other
% of Sales
Other comprises:
Household & Personal Products
Forestry
Commercial & Professional Services
Container Transport
Automobiles & Components
Consumer Durables & Apparel
Construction
Storage
Agriculture
Retail
TIL has a diverse customer base and
industry exposure, with low churn.

SALES REVENUE
Sales revenue of $333.8m, with 2H20 impacted by
COVID-19 and reduced customer volumes.
•Q4 FY20 sales down approx. $17m compared to pcp,
due to COVID restrictions.
•Freight –disappointing performance in 1H20, and
material impact on 2H20 as customers’ volumes
reduced due to COVID-19.
•Warehousing –1H20 in line with previous year,
impacted by COVID-19 in 2H20.
•Bulk Liquids sales materially impacted by reduced fuel
volumes due to COVID19 over March and April.
•International -continuing trend of half yearly growth
from 2H19 onwards.
•Specialist grew significantly with full year contribution
from major 2018 acquisition, and commencement of a
major windfarm project in 2H20.
11TIL Logistics Group FY20 Results Presentation
235.3
325.6
354.6
333.8
100
150
200
250
300
350
FY17FY18FY19FY20
$ Millions

OPERATING EXPENSES
Adjusted operating expenses reduced by $10.6m.
•Primarily due to the decrease in operating costs
during the COVID-restricted trading periods, and a
decrease in the price of fuel.
•Partially offset by increased operating costs relating
to the new warehouses.
12TIL Logistics Group FY20 Results Presentation
221.6
305.5
332.1
321.5
0
50
100
150
200
250
300
350
FY17FY18FY19FY20
$ Millions
Adjusted Operating Expenses
(excluding D&A and NZ IFRS16)
Adjusted operating expenses excludes contingent acquisition consideration
and non-trading costs associated with the reverse listing in FY18.

STRONG RECOVERY IN EBITDA IN SECOND HALF
13TIL Logistics Group FY20 Results Presentation
•Improvements in EBITDA in the second half
(particularly in Freight and Bulk Liquids), after a
disappointing first half performance.
•Results for all divisions well ahead of the second
half in the prior year.
•Performance improvement in part reflects
management efforts to drive improvement in the
business.
2H19
$m
2H20
$m
% change
Freight
4.45.832%
Warehousing
3.04.343%
Bulk Liquids
4.35.426%
International
0.81.475%
Specialist
2.12.519%
1H20
$m
2H20
$m
% change
Freight
0.85.8625%
Warehousing
3.64.319%
Bulk Liquids
2.65.4108%
International
1.01.440%
Specialist
2.12.519%

FY19: FY20 EBITDA BRIDGE
•Disappointing performance from Freight
division in 1H20. Management review
undertaken and improvement initiatives
underway with stronger 2H20.
•Growing utilisation partially offsetting the
increased costs associated with the expanded
warehouse facilities.
•Bulk Liquids in line with prior year, despite
material impact of COVID-19 on fuel haulage.
•Positive growth from International and
Specialist divisions.
14TIL Logistics Group FY20 Results Presentation

FY19: FY20 NPAT BRIDGE
15
TIL Logistics Group FY20 Results Presentation
NPAT of $2.0m for full year.
Pre-IFRS NPAT of $6.0m.
Compared to FY19, the FY20 result
reflects:
-Full year of depreciation following the
acquisition of the Specialist business
-FY19 included $2.6m of contingent
consideration relating to an acquisition
made in FY17
-FY20 includes a bargain on acquisition
for the remaining 50% of ATL Limited.

CAPITAL MANAGEMENT
Capital Expenditure:
•Prudent management and minimisation of capex in
COVID environment.
•Investment into new trucks and equipment to
resource customer projects.
•Increased Plant & Equipment spend for fit out of
new warehouses.
•Increased investment into digital platforms and
Transport Management System (TMS).
•FY21 will see a more cautious approach to capital
expenditure in response to the expected
recessionary conditions.
16
TIL Logistics Group FY20 Results Presentation
$ MillionsFY20
Pre-IFRS16
FY19
Operating cashflow17.919.4
Net Debt74.477.9
Net Capex10.511.4
0
1
2
3
4
5
6
Land &
Buildings
Motor
Vehicles
IT & Office
Equip
Plant &
Equip
Software
$ Millions
Net Capital Expenditure
FY19FY20
Capital expenditure excludes assets acquired via business acquisitions

BALANCE SHEET
$MillionsFY20FY19
Cash and cash equivalents11.96.4
Trade and other receivables43.751.0
Property, plant and equipment94.292.3
Right of use assets170.0-
Other24.926.7
TOTAL ASSETS344.7176.4
TOTAL EQUITY36.934.3
Trade and other payables27.039.4
Borrowings86.384.3
Lease liability173.5-
Other 21.018.4
TOTAL LIABILITIES307.8142.1
17TIL Logistics Group FY20 Results Presentation
Sound working capital disciplines, with solid cash
position of $11.9m at end-June 2020.
•FY20 reflects the adoption of IFRS16.
•Working capital focus resulted in a pleasing
position with trade receivables post-COVID
•Increased borrowings related to acquisition of
ATL Limited.
Dividend:
•Given current uncertain environment and
recessionary outlook, no final dividend has
been declared.
•Resumption of dividends in FY21 will be
considered subject to trading conditions and
financial performance continuing to improve.

IFRS 16: ADOPTION IMPACT IN
FY20
•TIL has a large number of vehicle leases, as well as long term property
leases.
•Upon adoption from 1 July 2019, NZ IFRS 16 had a material impact on a
number of elements of the Group’s balance sheet and income statement,
but no material impact on the Group’s cash flows.
FY20 impact:
•Balance sheet as at 30 June 2020: Increase in assets of $170.0m and
increase in liabilities of $173.5m
•EBITDA: Increase of $30.9m
•Net Profit Before Tax: Reduction in NPBT of $5.5m
•Cash flows: No change
TIL Logistics Group FY20 Results Presentation18

DIVISION REVIEW
TIL Logistics Group FY20 Results Presentation19
Freight
Warehousing & Logistics
Bulk Liquids
International
Specialist

20TIL Logistics Group FY20 Results Presentation
TIL LOGISTICSGROUP
FREIGHT
WAREHOUSING &
LOGISTICS
BULKLIQUIDSINTERNATIONALSPECIALIST
OUR BUSINESS

TIL OPERATES ACROSS FIVE DIVISIONS
FREIGHT
One of NZ’s largest
general freight and
line haul transport
service providers
with a nationwide
network and
regional breadth.
BULK LIQUIDS
Specialists in
transporting fuel,
LPG and industrial
chemicals,
transporting c.
40% of New
Zealand’s
petroleum.
WAREHOUSING &
LOGISTICS
New Zealand’s
largest 3PL
operation,
providing a
national
warehousing
solution, including
warehousing, info
management,
cross docking,
container cartage
and loading and
metropolitan
delivery.
INTERNATIONAL
International
freight forwarding
and logistics
services. TIL’s
offering also
includes custom
clearance support
and port services.
SPECIALIST
Group of
businesses
specialising in
heavy and large
haulage and
machinery lifting
as well as advisory
services.
21TIL Logistics Group FY20 Results Presentation

DIVISION REVENUE AND EBITDA
Excluding NZ IFRS 16
DIVISION REVENUE
FY191H20FY20
Freighting*
179.784.1161.2
Warehousing & Logistics*
76.237.971.3
Bulk Liquids
78.139.173.9
International
7.44.29.0
Specialist
13.18.718.4
22
TIL Logistics Group FY20 Results Presentation
DIVISION EBITDA
pre-IFRS 16**
FY191H20FY20
Freighting*
9.90.86.6
Warehousing & Logistics*
7.43.67.9
Bulk Liquids
8.32.68.0
International
1.51.02.4
Specialist
2.62.14.6
*Prior period revenue and EBITDA for Freighting and Warehousing & Logistics have been restated to a pro forma
basis as if the restructure of NZL had occurred.
** Division EBITDA excludes corporate costs
FY20 REVENUE
FY20 ADJ EBITDA

FREIGHT
Revenue $161.2m, -10%
EBITDA $6.6m, -33%
FY20
•Environment of increasing competitive pricing pressure, lower sales
across a range of customers and a softer Christmas trading period than
anticipated, as well as the loss of a large customer for NZL. Further
impacted by COVID-19.
•Disappointing 1H20 performance -detailed review and reset of the
division underway, with improving performance in 2H20 as turnaround
initiatives have taken effect.
•Completed pilot of new Transport Management System, with further
refinement now underway.
•Continued to adopt other transport modes such as rail and coastal as
part of customer solutions.
Outlook:
•Expected uplift as country restocks post-COVID, Government stimulus
initiatives and increased focus on sales activity.
•Key export industries forecasting robust volume growth, with demand
for NZ goods and historically low NZD.
•Longer term, technology initiatives expected to deliver cost and margin
benefits.
TIL Logistics Group FY20 Results Presentation23
0.0
2.0
4.0
6.0
8.0
10.0
12.0
FY18FY19FY20
Freighting Adj EBITDA
PRe-NZ IFRS16
1H2H
0.0
50.0
100.0
150.0
200.0
250.0
FY18FY19FY20
Freighting Revenue

WAREHOUSING & LOGISTICS
Revenue $71.3m, -6%
EBITDA $7.9m, +6%
FY20:
•Continued investment into new warehouses, resulting in
additional capacity which is expected to cater for future sales.
•Additional overheads and operating expenses in FY20, related to
the new warehouses.
•Impacted by COVID-19, with customer volumes reducing.
Outlook
•Flow on effects of impact of COVID on customer volumes
expected to continue.
TIL Logistics Group FY20 Results Presentation
24
0.0
2.0
4.0
6.0
8.0
10.0
12.0
FY18FY19FY20
Warehousing AdjEBITDA
Pre-NZ IFRS 16
1H2H
0
20
40
60
80
100
120
FY18FY19FY20
Warehousing Revenue

BULK LIQUIDS
Revenue $73.9m, -5%
EBITDA $8.0m, -4%
FY20:
•Bulk Liquids primarily services large fuel and gas customers.
•Material impact on fuel volumes due to COVID-19, with flow on
effect on Pacific Fuel Haul.
•Additional costs incurred in FY20 to serve a key customer.
•Positive resolution of commercial matters with key customer, and
negotiations underway to extend the contract beyond 2021.
Outlook
•Expecting a decline in fuel volumes, due to reduced vehicle
movements in a tougher economic environment.
•Focus on cost control.
•Will continue to build on long term strategic partnerships with key
customers and grow non-fuel related Liquid transport.
25
TIL Logistics Group FY20 Results Presentation
0
10
20
30
40
50
60
70
80
90
FY18FY19FY20
Bulk Liquid Revenue
0.0
2.0
4.0
6.0
8.0
10.0
12.0
FY18FY19FY20
Bulk Liquid AdjEBITDA
Pre-NZ IFRS 16
1H2H

INTERNATIONAL
Revenue $9.0m, +22%
EBITDA $2.4m, +60%
FY20:
•Positive year with increased activity in the sector.
•ISO Tank & Shipping services increased revenue with greater
demand for ISO equipment & services.
•Exploring acquisitions opportunities, with further specialist
logistics services being investigated to increase footprint.
Outlook:
•Opportunity to deliver cross Group bundled offer for customers to
drive increased volumes and warehousing and transport demand.
•Impact expected as a result of economic conditions, limitations to
cross-border trade and reduced oil & gas exploration activity.
TIL Logistics Group FY20 Results Presentation26
0.0
0.5
1.0
1.5
2.0
2.5
3.0
FY18FY19FY20
International AdjEBITDA
Pre-NZ IFRS 16
1H2H
0
2
4
6
8
10
FY18FY19FY20
International Revenue

SPECIALIST
Revenue $18.4m, +40%
EBITDA $4.6m, +77%
FY20:
•Specialised Lifting and Transport continues to be a solid acquisition.
•Major windfarm transport contract secured in February, with some
work undertaken in 2H20 but majority deferred to FY21.
•Acquired assets and entered long term contract to supply heavy
transport and logistics services to Fletcher Construction’s Asset Hub.
Outlook:
•Projects delayed by COVID expected to come on stream in 1H21.
•Strong pipeline of activity through increased infrastructure spending
and Government stimulus.
TIL Logistics Group FY20 Results Presentation
27
0
4
8
12
16
20
FY18FY19FY20
Specialist Revenue
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
FY18FY19FY20
Specialist AdjEBITDA
Pre-NZ IFRS 16
1H2H

HEALTH & SAFETY
•We take the safety and wellbeing of our employees,
contractors, owner drivers and communities very
seriously. It is an essential component to everything we
do.
•Unfortunately a serious incident occurred in May, with the
serious injury of one of TIL’s drivers. TIL is supporting the
driver and family and investigations are underway.
•Independent external review undertaken of Company’s
safety management plan.
•Established a centralised safety team.
•Technology continues to form a key part of our critical risk
controls, including in cab solutions to monitor driver
fatigue and provide alerts.
•Priority focus in Q4 FY20 on COVID-19 response and
protecting the health & safety of staff, contractors and
customers.
28TIL Logistics Group FY20 Results Presentation
Winner of the Chartered Institute of Logistics &
Transport Award for Implementation and Practice.

ENVIRONMENT
•TIL is committed to the reduction of carbon emissions through our
membership of the Climate Leaders Coalition.
•CEMARS review completed in July 2019 (recertified in August 2020).
Developed Emissions Management and Reduction Plan with annual
targets for consumption.
•Carbon footprint is dominated by diesel fuel.
•Have established an improvement programme with hard targets to
reduce carbon emissions.
•Forklift partnership with two major suppliers will see the gradual
upgrade of our 500+ fleet over time to safer, more efficient and
lower carbon emission equipment.
•Shift from fossil to alternative fuels is still evolving and is in the early
stages.
•Partnership with Hiringato investigate development of hydrogen cell
fuel technology.
TIL Logistics Group FY20 Results Presentation29
FY20 Greenhouse
gas emissions
63,405
tCO2e
Down 7% on FY19

PEOPLE
•Experienced Board; appointment of Peter Dryden in FY20.
•Further changes to strengthen the Executive team.
Establishment of a centralised HR team.
•Demanding year dealing with the impact of Covid19, and
the various impacts from Government policy, managing
entitlements and leave issues.
•Industrial relations continue to be characterised by robust
negotiations and interactions
•Number of recruitment programmes in place including being
an accredited employer able to offer a pathway to NZ
residency in order to address skill shortages such as drivers
(two divisions currently accredited).
•Employee Engagement surveys planned to support diversity,
culture and HR initiatives
•Free confidential counselling available to all employees for
work and non-work concerns.
•Regular group-wide staff communications.
•Future planning for additional training to build skills and
support internal promotion.
30
TIL Logistics Group FY20 Results Presentation

OUTLOOK
•Expect continuing challenges from COVID-19 with recessionary economic
conditions expected in FY21.
•Flow on effects will be felt for some time, and TIL retains a cautious outlook.
•COVID-19-related Government fiscal stimulus likely to support increasing
freight volumes
•Global trend of businesses using 3
rd
party warehousing & logistics providers
(3PL) such as TIL Logistics Group.
•Expect continuing high demand from food & beverage, aquaculture, viticulture
and other primary industries.
•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.
•The company confirms its view that EBITDA for FY21 is expected to be at least
that of the FY20 result of $26.5m.
TIL Logistics Group FY20 Results Presentation
31

STRATEGIC PRIORITIES
32TIL Logistics Group FY20 Results Presentation
FREIGHT TURNAROUND
•Continue turnaround programme
•Priority focus on lifting margins
ORGANIC GROWTH
•Expansion of Bulk Liquids into non-fuel sectors
•Expansion Specialist services into a broader weight range
•Optimise utilisation of MOVE’s new warehousing capacity
ACQUISITION
OPPORTUNITIES
•Expand International offer and services
GROUP INITIATIVES
•Bundled customer solution
•Build stronger connections between brands and businesses
•Continued focus on ESG initiatives

CONTACT
Alan Pearson
TIL Logistics Group Limited
Chief Executive Officer
Tel: 021 806 678
Email: alan.pearson@til.kiwi
TIL Logistics Group FY20 Results Presentation
33

BOARD AND MANAGEMENT
BOARD
•Trevor Janes, Chair
•Lorraine Witten
•Danny Chan
•Peter Dryden
•Jim Ramsay
TIL Logistics’ Board comprises experienced Directors
with particular strength in corporate governance and
oversight of growing companies.
GROUP EXECUTIVE TEAM
•Alan Pearson, CEO
•Lee Banks, CFO
•Charles Bolt, General Counsel
•Maurice Corkery, CIO
•Peter Simone, Acting Group HR, H&S Manager
Divisional CEOs
•Dallas Vince, DCEO Freight
•Stephen Owles, DCEO Bulk Liquids
•Richard Mather, DCEO Warehousing & Logistics
•Clayton Imbs, DCEO International
•Warwick Bell, DCEO Specialist Lifting
34
TIL Logistics Group FY20 Results Presentation

GLOSSARY
•Non-GAAP financial information: TIL Logistics Group uses several non-GAAP measures when discussing
financial performance. These include Earnings Before Interest, Tax, Depreciation and Amortisation, Share of
(Loss)/Profit of Associates and Impairment of Goodwill (EBITDA), adjusted EBITDA excluding non-trading
costs and adjusted Net Profit/Loss After Tax (NPAT/NLAT) excluding non-trading costs. Management believes
that these measures provide useful information on the underlying performance of TIL Logistics’
business.Reconciliations of the non-GAAP measures to GAAP measures, can be found in TIL Logistics
Group’s Financial Statements that are available on the company’s website.
•EBITDArefers to Earnings Before Interest, Tax, Depreciation and Amortisation excluding income from
associates. EBITDA is a non-GAAP profit measure.
•NPAT/NLAT refers to net profit/loss after tax.
•Adjusted EBITDA/Adjusted NPAT: Excludes non-trading costs associated with the reverse listing process
which occurred in FY18, share based payments and the revaluation of deferred consideration for
acquisitions. The Board believes this provides a better reflection of the company’s underlying performance.
35TIL Logistics Group FY20 Results Presentation

NON-GAAP RECONCILIATION
$MillionsFY20FY19
Net profit before income tax (GAAP measure)3.57.4
Add back:
Share of loss of associates-0.4
Finance costs/(interest income)11.84.1
Impairment of investment in associates0.4-
Bargain on acquisition(1.1)-
Depreciation & Amortisation42.913.6
Deferred consideration and advisory costs expensed(0.2)2.6
EBITDA (non-GAAP measure)57.428.0
NZ IFRS 16 adjustments(30.9)-
Pre-NZ IFRS 16 adjusted EBITDA (non-GAAP measure)26.528.0
36TIL Logistics Group FY20 Results Presentation

37
DISCLAIMER
This presentation has been prepared by TIL Logistics Group Limited (“TLL”).The information in this presentation is of a general nature only. It is not a
complete description of TLL.
This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or an invitationorsolicitation for such
offers.
This presentation is not intended as investment, financial or other advice and must not be relied on by any prospective investor.It does not take into
account any particular prospective investor’s objectives, financial situation, circumstances or needs, and does not purport to contain all the
information that a prospective investor may require. Any person who is considering an investment in TLL securities should obtainindependent
professional advice prior to making an investment decision, and should make any investment decision having regard to that person’s own objectives,
financial situation, circumstances and needs.
Past performance information contained in this presentation should not be relied upon as (and is not) an indication of futureperformance.This
presentation may also contain forward looking statements with respect to the financial condition, results of operations and business, and business
strategy of TLL. Information about the future, by its nature, involves inherent risks and uncertainties. Accordingly, nothinginthis presentation is a
promise or representation as to the future or a promise or representation that an transaction or outcome referred to in this presentation will proceed
or occur on the basis described in this presentation. Statements or assumptions in this presentation as to future matters mayprove to be incorrect.
A number of financial measures are used in this presentation and should not be considered in isolation from, or as a substitute for, the information
provided in the TLL Listing Profile.
TLL and its related companies and their respective directors, employees and representatives make no representation or warranty of any nature
(including as to accuracy or completeness) in respect of this presentation and will have no liability (including for negligence)for any errors in or
omissions from, or for any loss (whether foreseeable or not) arising in connection with the use of or reliance on, information in this presentation.
TIL Logistics Group FY20 Results Presentation

---

1
TIL LOGISTICS GROUP LIMITED
FOR THE YEAR ENDED
30 JUNE 2019
ANNUAL FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

TIL LOGISTICS GROUP LIMITED
ANNUAL FINANCIAL STATEMENTS JUNE 2020
CONTENTS
Consolidated Statement of Profit or Loss & Other Comprehensive Income1
Consolidated Balance Sheet2
Consolidated Statement of Changes in Equity3
Consolidated Statement of Cash Flows4
Notes to the consolidated financial statements5 - 38
DIRECTORS’ STATEMENT
FOR THE YEAR ENDED 30 JUNE 2020
The Directors of TIL Logistics Group Limited are pleased to present the financial statements for TIL Logistics Group
Limited and its subsidiaries (together the Group) for the year ended 30 June 2020 contained on pages 1 - 38.
Financial statements for each financial year fairly present the financial position of the Group and its financial performance
and cash flows for that period and have been prepared using appropriate accounting policies, consistently applied and
supported by reasonable judgments and estimates and all relevant financial reporting standards have been followed.
Proper accounting records have been kept that enable, with reasonable accuracy, the determination of the financial
position of the Group and facilitate compliance of the financial statements with the Financial Markets Conduct Act 2013.
Adequate steps have been taken to safeguard the assets of the Group to prevent and detect fraud and other
irregularities.
The Directors hereby approve and authorise for issue the financial statements for the year ended 30 June 2020. They do
not have the power to amend these financial statements after issue.
For and on behalf of the Board:
Trevor Janes - Chairman
26 August 2020
Lorraine Witten - Director
26 August 2020

1
TIL LOGISTICS GROUP LIMITED
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS &
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
NOTES
30 JUNE 2020
$000
30 JUNE 2019
$000
Revenue 7333,811354,594
Gains on disposal of assets 648873
Lease income1,3332,904
Other income 712,2231,685
Total Income
348,015360,056
Transport costs(132,718)(147,742)
Employee costs(125,309)(125,481)
Rental / lease expenses(5,114)(33,885)
Other operating expenses(26,352)(24,947)
Changes in contingent consideration13.4225(2,600)
Depreciation of right of use assets20(28,460)-
Other depreciation / amortisation expenses (14,442)(13,610)
Impairment of investment in associates16.2(440)-
Total Operating Expenses 8
(332,610)(348,265)
Finance costs relating to lease liabilities20(7,947)-
Other finance costs - interest on borrowing(3,940)(4,156)
Interest income on short term deposit63116
Operating surplus before income tax3,5817,751
Share of (loss) of associates 16.2(86)(361)
Profit Before Income Tax 3,4957,390
Income tax expense 9(984)(3,026)
PROFIT FOR THE YEAR FROM CONTINUING
OPERATIONS
2,5114,364
Profit attributable to:
Owners of the company2,0154,004
Non-controlling interests496360
2,5114,364
Other comprehensive income:
Comprehensive Income for the Period, Net of Tax --
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET
OF TAX
2,5114,364
Earnings per share for profit attributable to the ordinary
equity holders of the Company
CENTSCENTS
Basic and diluted earnings per share 112.314.75
The above consolidated Statement of Profit or Loss & Other Comprehensive Income should be read in conjunction with the accompanying
notes. Refer to note 20 specifically relating to the impact of adoption of NZ IFRS 16 Leases.

2
TIL LOGISTICS GROUP LIMITEDANNUAL FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2020
NOTES
30 JUNE 2020
$000
30 JUNE 2019
$000
ASSETS
Current Assets
Cash and cash equivalents 12.111,8826,389
Inventories 68301
Trade and other receivables 12.243,71151,037
Tax receivable-160
Advances to associates 12.3305581
Total Current Assets
55,96658,468
Non-Current Assets
Property, plant and equipment 13.194,22992,313
Right of use assets20170,029-
Intangible assets 13.223,82123,909
Investments in associates 16.26531,692
Total Non-Current Assets
288,732117,914
TOTAL ASSETS
344,698176,382
EQUITY
Share capital1437,05435,449
Accumulated losses (1,742)(2,364)
Equity attributable to owners of the parent 35,31233,085
Non-controlling interest in equity1,6141,237
TOTAL EQUITY
36,92634,322
LIABILITIES
Current Liabilities
Trade and other payables 12.427,05039,348
Tax payable461-
Deferred revenue7361344
Borrowings 12.56,1005,185
Lease liability2025,882-
Employee entitlements 12.614,20812,957
Provision for other liabilities and charges13.4294225
Total Current Liabilities
74,35658,059
Non-Current Liabilities
Borrowings 12.580,16379,132
Lease liability20147,600-
Deferred income tax liability 13.33,3404,102
Provisions for other liabilities and charges 13.42,313767
Total Non-Current Liabilities233,41684,001
TOTAL LIABILITIES
307,772142,060
TOTAL EQUITY & LIABILITIES
344,698176,382
The above consolidated Balance Sheet should be read in conjunction with the accompanying notes. Refer to note 20 specifically relating
to the impact of adoption of NZ IFRS 16 Leases.

3
TIL LOGISTICS GROUP LIMITED
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
ATTRIBUTABLE TO OWNERS OF
THE COMPANY
NOTESSHARE CAPITALRETAINED EARNINGS/(ACCUM. LOSSES)TOTAL NON-CONTROLLING INTERESTTOTAL EQUITY
$000$000$000$000$000
Balance as at 1 July 2018 as previously reported
28,107(1,295)26,8121,15727,969
Adoption of NZ IFRS 15
-(571)(571)-(571)
Adoption of NZ IFRS 9
-(499)(499)-(499)
Revised balance as at 1 July 2018
28,107(2,365)25,7421,15726,899
Comprehensive income
Profit for the year
-4,0044,0043604,364
Other comprehensive income
-----
Total comprehensive income
-4,0044,0043604,364
Transactions with owners:
Equity settled acquisition
4,000-4,000-4,000
Dividends and dividend reinvestment plan10/14
3,342(4,003)(661)(280)(941)
Balance as at 30 June 2019
35,449(2,364)33,0851,23734,322
Balance as at 1 July 201935,449(2,364)33,0851,23734,322
Adoption of NZ IFRS 16*-765765-765
Revised balance as at 1 July 201935,449(1,599)33,8501,23735,087
Comprehensive income
Profit for the year-2,0152,0154962,511
Other comprehensive income-
----
Total comprehensive income-2,0152,0154962,511
Transactions with owners:
Dividends and dividend reinvestment plan10/141,605(2,158)(553)(119)(672)
Balance as at 30 June 202037,054(1,742)35,3121,61436,926
*See note 20 for details regarding the adoption of new accounting policies.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

4TIL LOGISTICS GROUP LIMITED
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
NOTES
30 JUNE 2020
$000
30 JUNE 2019
$000
Cash flows from operating activities
Receipts from customers 344,947354,330
Interest received 63116
Dividends received 218152
Deferred consideration(4,000)-
Payments to suppliers and employees (298,291)(329,045)
Government subsidy received7. g10,723-
Notional finance charge on NZ IFRS 16 leases20(7,947)-
Interest paid (3,652)(3,885)
Income tax paid (1,205)(2,286)
Net cash generated from operating activities 15.1
40,85619,382
Cash flows used in investing activities
Purchase of business, net of cash acquired17(5)(15,000)
Purchase of property, plant and equipment(13,428)(22,848)
Proceeds from sale of property, plant and equipment6,58413,676
Purchase of intangible assets(2,190)(775)
Advances to associates 275(152)
Net cash used in investing activities
(8,764)(25,099)
Cash flows from financing activities
Repayment of borrowings15.2(5,721)(5,834)
Proceeds from borrowings15.22,75016,000
Repayment of lease liability (NZ IFRS 16)15.2(22,956)-
Dividends paid to shareholders / non-controlling interests(672)(941)
Net cash flow (used in) / from financing activities(26,599)9,225
Net increase in cash and cash equivalents5,4933,508
Cash and cash equivalents at beginning of year 6,3892,881
Cash and cash equivalents 30 June11,8826,389
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 5TIL LOGISTICS GROUP LIMITED
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

1. GENERAL INFORMATION

1.1. REPORTING ENTITY
The core operations of TIL Logistics Group Limited (“TIL Logistics” or the “Company”) and its subsidiaries (collectively
“the Group”) are in the New Zealand logistics sector. These include general transport, bulk liquids, heavy haulage,
shipping, storage and distribution, freight forwarding, national and international household removals and storage.
The Company is incorporated and domiciled in New Zealand, registered under the Companies Act 1993 and is a FMC
Reporting Entity under part 7 of the Financial Markets Conduct Act 2013. The Company is listed on the NZX Main Board.
The registered office of the Company is at 330 Devon Street East, New Plymouth, New Zealand.
The consolidated financial statements of the Company as at, and for the year ended, 30 June 2020, comprise the
Company and its subsidiaries (refer note 16.1), together referred to as the “Group”.
1.2. BASIS OF PREPARATION
These financial statements have been prepared on a historical cost basis.
The preparation of financial statements in conformity with NZ IFRS requires the use of certain critical accounting
estimates. It also requires Management to exercise its judgement in the process of applying the Group’s accounting
policies. The areas where assumptions and estimates are significant to the consolidated financial statements are
disclosed in note 4.
The consolidated financial statements have been prepared in accordance with the Financial Reporting Act 2013 and the
Companies Act 1993.
The principal accounting policies adopted in the preparation of the financial statements are selected and applied in a
manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby
ensuring that the substance of the underlying transaction and other events is reported. These policies have been
consistently applied to all the periods presented, unless otherwise stated. To ensure consistency with the current period,
comparable figures have been restated where appropiate (refer note 7 and 8 for details regarding reclassifications).
1.3. STATEMENT OF COMPLIANCE
The Group is a for-profit entity. Its financial statements have been prepared in accordance with, and comply with, New
Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with New Zealand Equivalents to International
Financial Reporting Standards and other applicable Financial Reporting Standards and Authoritive Notices, as appropriate
for for-profit entities. The financial statements comply with International Financial Reporting Standards (IFRS).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1. CONSOLIDATION
a. Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns through
its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are de-consolidated from the date that control ceases.
The Group uses the acquisition method of accounting to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the
equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting
from a contingent consideration arrangement and the elimination of any balances arising between the Group and the
acquiree.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously
held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gain or loss arising from
remeasurement is recognised in profit or loss.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 6TIL LOGISTICS GROUP LIMITED
a. Subsidiaries (continued)
Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition by
acquisition basis, the Group recognises any non-controlling interest in the acquisition either at fair value or at the non-
controlling interest’s proportionate share of the acquiree’s net assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree, and the
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the
identifiable net assets acquired, is recorded as goodwill.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently re-measured to fair value with changes in fair value recognised in profit or loss.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated Statement of
Profit or Loss & Other Comprehensive Income, Statement of Changes in Equity and Balance Sheet respectively.
b. Associates
Associates are all entities over which the Group has significant influence but not control, generally accompanying a
shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity
method of accounting after initially being recognised at cost. The Group’s investment in associates includes goodwill
identified on acquisition, net of an accumulated impairment loss. The Group’s share of its associates post-acquisition
profits or losses is recognised under ‘Share of (loss) / profit of associates’ in the Statement of Profit or Loss & Other
Comprehensive Income, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative
post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of
losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group
does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s
interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency
with the policies adopted by the Group.
2.2. FOREIGN CURRENCY TRANSLATION
a. Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The financial statements are presented in
New Zealand dollars (rounded to thousands), which is the functional and the presentation currency of all companies in
the Group.
b. Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
2.3 NEW ACCOUNTING STANDARDS
Except as disclosed below, the accounting policies adopted are consistent with those in the previous financial year and
corresponding interim reporting period. Changes to accounting policies have been made following the adoption of new
and amended standards which came into effect during the period:
• NZ IFRS 16 Leases
The impact of the adoption of this standard and the new accounting policies are disclosed in note 20. There have been
no changes in other accounting standards that would have a material impact on the financial statements.
2.4. STANDARDS ISSUED BUT NOT YET ADOPTED
There are no new standards or amendments to standards and interpretations that are effective for periods beginning on
or after 1 July 2020 that will have a material impact on the consolidated financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 7TIL LOGISTICS GROUP LIMITED
2.5. COVID-19 PANDEMIC
On 11 March 2020 the World Health Organisation declared a global pandemic as a result of the outbreak and spread
of COVID-19. Following this, on Wednesday 25 March 2020, the New Zealand Government raised its Alert Level to 4
(full lockdown of non-essential services) moving down to Alert Level 3 on 27 April 2020, Alert Level 2 on 14 May 2020
and Alert Level 1 on 9 June 2020. During Alert Level 4, the Group’s operations in New Zealand were deemed essential
services and as a result, the Group continued to operate but at a reduced level, due to many of its customers being
deemed non-essential. Post Alert Level 4 operating levels have recovered, however revenue for June 2020 is down on
June 2019. Management are forecasting revenue levels to return to similar levels achieved in FY19 during the FY21 year.

An assessment of the impact of COVID-19 on the Group is set out below:
Balance sheet itemCOVID-19 assessment
Trade receivables
The Group has assessed the provision for expected credit losses to reflect expected
financial difficulties of customers. Management concluded that the relatively short term
nature of the debtors, the financial security of the customer base and the fact that the
receivables payments are being received on a regular basis has meant that the impact on
the expected credit loss model was not significant (refer note 3.1).
Property, plant and
equipment
Plant and equipment are stated at historical cost less depreciation and impairment.
Following recovery of operations, COVID-19 and the resulting economic impacts as
assessed at this reporting period, Management has determined there is no external
indicator of impairment and has therefore conclued no impairment is required.
Goodwill
The Group has considered the impacts of COVID-19 in the assumptions and cash flows
used in the assessment of goodwill impairment testing. As a result of the heightened
uncertainty, probability weighted cash flows were used in determining the recoverable
amount (refer note 13.2). No impairment is required.
Profit or Loss itemCOVID-19 assessment
Government wage subsidy
Several entities under the Group applied for and received the government wage subsidy
(refer note 7).
Lease concessions
The Group applied for and was granted rental concessions from its landlords. As a result
the Group elected to adopt the practical expedient of NZ IFRS 16 and recognised an
immaterial amount in the Statement of Profit or Loss & Other Comprehensive Income as a
reduction to lease expense.

3. FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise bank loans and overdrafts, cash, trade creditors and accruals and
trade debtors. The main purpose of these financial instruments is to raise and provide working capital for the Group’s
operations.

This note explains the Group’s exposure to financial risks and how these risks affect the Group’s future financial
performance.
RiskExposure arising fromMeasurement
Credit riskCash and cash equivalents and trade receivablesAging analysis & credit ratings
Market risk - interest rateLong term borrowing at variable ratesSensitivity analysis
Liquidity riskBorrowings and other liabilitiesRolling cash flow forecast

The Group’s risk management is carried out by a central treasury department (Group Treasury) under policies approved
by the Board of Directors. Group Treasury identifies, evaluates and manages financial risks in close co-operation with the
Group’s operating units. The Board provides written principles for overall risk management, as well as policies covering
specific areas, such as foreign exchange risk, funding risk, interest rate risk, credit risk and use of derivative financial
instruments and non-derivative financial instruments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8TIL LOGISTICS GROUP LIMITED
3.1. CREDIT RISK MANAGEMENT
In the normal course of business the Group incurs credit risk from trade debtors and transactions with financial
institutions. The Group has a credit policy that it uses to manage this risk. As part of this policy limits on exposures with
counter-parties have been set and approved by the Board of Directors and are monitored on a regular basis.
The Group has no significant concentrations of credit risk. The Group does not require any collateral or security to
support financial instruments due to the quality of the financial institutions and trade debtors dealt with. The Group
normally gives 30 or 60 days credit on its trade receivables.
At 30 June the Group’s credit risk exposure is equal to the carrying value of its financial assets.
2020
$000
2019
$000
Trade and other receivables
Trade receivables43,74048,724
Credit loss provision(2,952)(865)
Total trade receivables40,78847,859
Accrued revenue7171,313
Sundry receivables534467
Advances to associates305581
Cash and short term bank deposits
Bank with AA- credit rating11,8826,389

a. Impaired trade receivables
Individual receivables which are known to be uncollectible are written off by reducing the carrying amount directly. The
other receivables are assessed collectively to determine whether there is objective evidence that an impairment has been
incurred but not yet been identified. For these receivables the estimated impairment losses are recognised in a separate
provision for impairment. The Group considers that there is evidence of impairment if any of the following indicators are
present:
• significant financial difficulties of the debtor
• probability that the debtor will enter bankruptcy or financial reorganisation, and
• default or delinquency in payments.
Receivables for which an impairment provision was recognised are written off against the provision when there is no
expectation of recovering additional cash.
Impairment losses are recognised in profit or loss within other expenses. Subsequent recoveries of amounts previously
written off are credited against other expenses.
Movements in the provision for impairment of trade receivables that are assessed for impairment collectively are as
follows:
2020
$000
2019
$000
At 1 July
865351
Provision for impairment recognised during the year393105
Provision for credit notes to revenue1,770216
NZ IFRS 9: Increase provision for trade receivables-499
Receivables written off during the year as uncollectible(76)(306)
At 30 June 2,952865

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 9TIL LOGISTICS GROUP LIMITED
3.1 CREDIT RISK MANAGEMENT (CONTINUED)
The table below sets out information about the credit quality of trade receivables net of the expected credit loss
provision:
Current1 -29 days
overdue
30 - 59 days
overdue
60+ days
overdue
Total
$000$000$000$000$000
30 June 2019
Gross carrying amount39,3486,2069162,25448,724
Baseline158142159406865
Specific-----
Total expected credit loss rate0.4%2.3%17.3%18.0%
Credit loss provision158142159406865
30 June 2020
Gross carrying amount36,3062,8382,0322,56443,740
Baseline32267193352934
Specific-7931,225-2,018
Total expected credit loss rate0.9%30.3%70.0%13.7%
Credit loss provision3228601,4183522,952

Critical estimates and judgements
a. Credit loss provision
To measure expected credit losses, trade receivables have been grouped and reviewed on the basis of the number of
days past due. The credit loss provision has been calculated by considering the impact of the following characteristics:
• The baseline loss rate takes into account the write-off history of the Group over a two-year period as a predictor of
future conditions and applies an increasing expected credit loss estimate by trade receivables aging profile.
• Specific credit loss provisions are made based on any specific customer collection issues that are identified.
Collections and payments from our customers are continuously monitored and a credit loss provision is maintained
to cover any specific customer credit losses anticipated (refer b below).
The Group has performed an assessment of credit risk on its customer base taking into consideration the factors below:
• profile of the customer, i.e. corporate or individual customers
• region the customer is based in
• industry the customer operates within
• size and nature of the customer
• and, the Group’s understanding of and experience with the customer
• impact of COVID-19 on our customers
As a result of this assessment, the Group has assessed its baseline provision to $934,000 (2019: $865,000), to reflect the
estimated financial impact of its assessment of the credit risk.

b. Trade Receivables
Within the trade and other receivables balance there is one material disputed amount. The amount recognised in the
receivables balance is, in Management’s view, a reasonably conservative best estimate that is based on the contractual
terms and external legal advice. While there is some uncertainty about the outcome of this matter, the range of
reasonably possible outcomes is not likely to be materially different to what has been recognised in the receivables
balance.
Within the 60+ days gross carrying amount balance there is a material amount previously disputed with one customer
which has been settled subsequent to year end (refer note 22).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 10TIL LOGISTICS GROUP LIMITED
3.2. INTEREST RATE RISK
The Group’s main interest rate risk arises from long term borrowing with variable rates which exposes the Group to cash
flow interest rate risk. The Group adopts a policy of ensuring that some of its exposure to changes in interest rates on
borrowings is on a fixed rate basis by entering into interest rate swaps.
The table below summarises the Group’s current interest rate swaps:
Date effectiveFace valueMaturity dateInterest rate paid
8 July 201920,000,0008 July 20241.59% p.a.
The Group does not hedge account so all market adjustments are recognised in the Statement of Profit or Loss & Other
Comprehensive Income.

Sensitivity analysis
The effect of a 1% increase or decrease in the floating interest rates for the Group would be a decrease/increase in profit
and equity of $663,000 (2019: $847,000).
3.3. LIQUIDITY RISK
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate
amount of committed credit facilities. Due to the dynamic nature of the underlying businesses, the Group maintains
flexibility in funding through having flexible funding lines available to them. Management monitors rolling forecasts of
the Group’s liquidity reserve, which comprises its undrawn borrowing facility and cash and cash equivalents (note 12.1) on
the basis of expected cash flows.
The Group had access to the following undrawn borrowing facilities at the end of the reporting period:
2020
$000
2019
$000
Expiring within one year (bank overdraft)10,0005,000
Expiring beyond one year (bank loans)-2,750
Total10,0007,75 0

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal
their carrying balances or the impact of discounting is not significant.
Less than 1
year
Between 1
and
2 years
Between 2
and
5 years
Beyond 5
years
Total
contractual
cash flows
Carrying
amount
(assets)/
liabilities
$000$000$000$000$000$000
2019
Borrowings8,88779,3321,498-89,71784,317
Lease liabilities------
Trade and other payables39,348---39,34839,348
Employee entitlements12,957---12,95712,957
Contingent consideration225---225225
Total 61,41779,3321,498-142,247136,847
2020
Borrowings9,15078,6523,025-90,82786,263
Lease liabilities33,17930,28766,55486,556216,576173,482
Trade and other payables27,050---27,05027,050
Employee entitlements
14,208---14,20814,208
Total83,587108,93969,57986,556348,661301,003

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 11TIL LOGISTICS GROUP LIMITED
3.3. LIQUIDITY RISK (CONTINUED)

The Group provides guarantees, these are detailed in note 18.
3.4. CAPITAL MANAGEMENT
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they
can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal structure
to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group monitors capital on the basis of the gearing ratio and leverage ratio. The Group’s respective ratios at 30 June
2020 were as follows:
2020
$000
2019
$000
Bank borrowings86,26384,317
Less: cash and cash equivalents(11,882)(6,389)
Net debt (excluding lease liabilities)74,38177,928
Equity36,92634,322
Gearing ratio66.8%69.4%
2020
$000
2019
$000
Bank borrowings
86,26384,317
Less: cash and cash equivalents
(11,882)(6,389)
Net debt (excluding lease liabilities)
74,38177,928
Profit before interest, tax, depreciation and amortisation
1
26,51228,001
Leverage ratio
2.81:12.78:1

1 Calculated on pre-NZ IFRS 16 basis, excluding significant items as per bank covenant definitions (refer note 5).
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
a. Estimated impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment. The recoverable amounts of cash-generating
units have been determined based on value-in-use calculations. These calculations require the use of estimates. Refer to
note 13.2 for further details.
b. Working capital
The Group has a negative working capital balance. Management note the impact of the current lease liability on the
current liability balance and consider that there are assets available to meet the Group’s liabilities as they fall due. Given
the liability profile, aspects of the balances presented as current liabilities will be funded by the ongoing future activities
of the business.
c. Trade receivables
Due to a customer dispute Management have had to make some judgements regarding collectibility (refer note 3.1).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 12TIL LOGISTICS GROUP LIMITED
5. RECONCILIATION TO GAAP MEASURE

The Group results are prepared in accordance with New Zealand Generally Accepted Accounting Practice (“GAAP”) and
comply with International Financial Reporting Standards (“IFRS”).
These financial statements include non-GAAP financial measures that are not prepared in accordance with IFRS. The non-
GAAP financial measures used in this presentation are as follows:
• EBITDA (a non-GAAP measure) represents profit before income taxes (a GAAP measure), excluding interest
income, interest expense, depreciation and amortisation, share of loss of associates, bargain on acquisition,
impairment of investment in associates, deferred consideration and advisor costs as reported in the financial
statements.
• EBIT (a non-GAAP measure) represents profit before income taxes (a GAAP measure), excluding interest
income, interest expense, share of loss of associates, bargain on acquisition, impairment of investment in associates,
deferred consideration and advisor costs as reported in the financial statements.
• Pre-NZ IFRS 16 adjusted EBIT and EBITDA represents adjusted non-GAAP measures presented as if NZ IFRS 16 had
not been adopted and the results were still prepared under NZ IAS 17. This allows comparability between the
results for the two periods.
The Group believes that these non-GAAP measures provide useful information to readers to assist in the understanding
of the financial performance and position of the Group as they are used internally to evaluate the performance of
business units and to establish operational goals. They should not be viewed in isolation, nor considered as a subsitute
for measures reported in accordance with IFRS. Non-GAAP measures as reported by the Group may not be comparable
to similarly titled amounts reported by other companies.

The following is a reconciliation between these non-GAAP measures and net profit after tax:
Reconciliation to GAAP measure 12 months to
June 2020
$000
12 months to
June 2019
$000
Profit Before Income Tax (GAAP measure)3,4957,390
Add back:
Share of loss of associates 86361
Finance costs / (interest income)11,8244,040
Impairment of investment in associates440-
Bargain on acquisition(1,106)-
Depreciation & amortisation 42,90213,610
Deferred consideration and advisor costs expensed (225)2,600
EBITDA (non-GAAP measure) 57,41628,001
NZ IFRS 16 adjustments (refer note 20)(30,904)-
Pre-NZ IFRS 16 adjusted EBITDA (non-GAAP measure) 26,51228,001

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 13TIL LOGISTICS GROUP LIMITED
5. RECONCILIATION TO GAAP MEASURE (CONTINUED)
Reconciliation to GAAP measure 12 months to
June 2020
$000
12 months to
June 2019
$000
Profit Before Income Tax (GAAP Measure)3,4957,390
Add back:
Share of loss of associates 86361
Finance costs (net)11,8244,040
Impairment of investment in associates440-
Bargain on acquisition(1,106)-
Deferred consideration and advisor costs expensed(225)2,600
EBIT (non-GAAP measure) 14,51414,391
NZ IFRS 16 adjustments (refer note 20)(2,444)-
Pre-NZ IFRS 16 adjusted EBIT (non-GAAP measure)12,07014,391

6. SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision
Maker (CODM). The CODM is responsible for allocating resources and assessing performance of the operating segments.
The Group has made the decision that the thirteen operating segments that form part of the reporting to the Group CEO
can be aggregated into six reporting segments. Reportable segments have been determined by having regard to the
nature of the services, the processes the various business units undertake to service customers, the type of customers
serviced, and the nature of the distribution channels.
In addition to GAAP measures, the Group CEO also uses non-GAAP measures (EBITDA, EBIT and Pre-NZ IFRS 16 EBITDA
and EBIT) to assess the commercial performance of the segments (refer note 5). The revised reportable operating
segments have been determined as:
INTERNATIONAL
This segment includes international freight forwarding and shipping agency services across a broad range of industries.
SPECIALIST
This segment provides transport and lifting solutions for oversized and large items. They also carry out specialist moving
jobs.
FREIGHTING
This segment provides nationwide general freight transport services with regional strength. It is able to transport a wide
range of freight types.
WAREHOUSING & LOGISTICS
This segment specialises in warehousing and supply chain capabilities which enable comprehensive supply chain
solutions to customers.
BULK LIQUIDS
This segment includes the service for delivery of various bulk liquid goods.
CORPORATE
This segment includes our corporate services function.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 14TIL LOGISTICS GROUP LIMITED
6. SEGMENT INFORMATION (CONTINUED)
The segment information for the year ended 30 June is as follows:
InternationalSpecialistFreightingWarehousing
& Logistics
Bulk LiquidsCorporate Total
$000$000$000$000$000$000$000
Year ended 30 June 2019 (re-stated)
1

Total segment revenue 7,41613,487185,11878,83883,221-368,080
Inter-segment revenue -(346)(5,370)(2,660)(5,110)-(13,486)
Revenue from external customers 7,41613,141179,74876,17878,111-354,594
EBITDA1,5492,6469,9067,4048,253(1,757)28,001
Depreciation - tangible assets931,3975,5492,3301,72219011,281
Amortisation - intangible assets68-341,847-3802,329
EBIT1,3881,2494,3233,2276,531(2,327)14,391
Assets6,04424,99051,42362,31018,76412,851176,382
Liabilities4,3102,81121,28014,32311,27988,057142,060
Capital expenditure including
intangibles
2334719,6586,8026,21177724,152
Year ended 30 June 2020
Total segment revenue 8,97618,722168,17673,55678,798-348,228
Inter-segment revenue (4)(312)(6,949)(2,245)(4,907)-(14,417)
Revenue from external customers 8,97218,410161,22771,31173,891-333,811
EBITDA2,5635,36416,93321,52313,919(2,886)57,416
Pre-NZ IFRS 16 EBITDA2,4464,6116,6387,8547,971(3,008)26,512
Depreciation - tangible assets1071,9595,6592,6331,58124512,184
Depreciation - ROU assets1177189,25112,8615,41210128,460
Depreciation - intangible assets190291,851-3592,258
EBIT2,3192,6871,9944,1796,926(3,591)14,514
Pre-NZ IFRS 16 EBIT2,3202,6519503,3716,390(3,612)12,070
Assets7,94725,932143,200110,95742,18014,482344,698
Liabilities4,1733,902104,78377,25633,07884,580307,772
Capital expenditure including
intangibles
5012,3425,9833,0482,5782,71317,165
1 Management note, consistent with interim disclosures, there has been changes to the operational companies that sit under each segment as a result of the restructure
of NZL Group Limited which now has the Freighting component under the Freighting segment (previously Warehousing and Logistics).
Interest income and expense are not allocated to segments, as this type of activity is driven by the central treasury function,
which manages the cash position of the Group.
Sales between segments are eliminated on consolidation. The amounts provided to the CODM with respect to segment
revenue are measured in a manner consistent with that of the financial statements.
Revenues of approximately $43,800,000 (2019: $47,600,000) are derived from a single external customer which exceeds
10% or more of our entity’s revenue. These revenues are attributed to the Bulk Liquid segment.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 15TIL LOGISTICS GROUP LIMITED
7. REVENUE & OTHER SOURCES OF INCOME

Revenue comprises the fair value of the consideration received or receivable for the sale of services in the ordinary
course of the Group’s activities. Revenue is shown net of GST, rebates and after eliminating sales within the Group.
a. Sale of services
Freight Services
The Group performs transportation services. Revenue is recognised over the time of delivery, being from the time of
acceptance of the goods to delivery to the final destination.
Warehousing Services
The logistics function provides warehousing and storage services. Revenue from providing these services is recognised
in the accounting period in which the services are rendered. Some contracts include multiple deliverables. However,
these are easily identifiable and are accounted for as separate performance obligations.
Trading Services
The Group performs freight forwarding and shipping agency services. Revenue is recognised over the time of delivery,
being from the time of acceptance of the job to completion of the shipment. Revenue is recognised on a net basis
after disbursements as the Group are acting as an agent for the customer. During the previous financial year the Group
performed services for trading customers where by the Group was acting as an agent and revenue received and costs
incurred should have been reported on a net basis but were shown on a gross basis. As a result comparables have been
reclassified to align with current year treatment amounting to $0.5 million.

For fixed priced contracts, revenue is recognised based on the actual service provided to the end of the reporting period
as a proportion of the total services to be provided. This is because the customer receives and uses the benefits of the
service simultaneously.
Customers are invoiced on a daily, weekly or monthly basis and consideration is payable when invoiced. There are no
significant financing arrangements for any of the Group’s revenue streams. The Group does not offer any refunds or
warranties.

The Group derives the following types of revenue:
2020
$000
2019
$000
Freight277,881302,139
Warehousing45,80944,046
Trading10,1218,409
Total Revenue333,811354,594
Timing of revenue recognition
June 2020June 2019
$000$000
Over time
333,811354,594
At a point in time
--
Total Revenue
333,811354,594

b. Interest income
Interest income is recognised on a time-proportion basis using the effective interest method.
c. Dividend income
Dividend income is recognised when the right to receive payment is established.
d. Lease income
Lease income from operating leases where the Group is a lessor is recognised as rental income on a straight-line basis
over the lease term.
e. Bargain on acquisition
A bargain on acquisition was recognised relating to the acquisition of ATL Limited (refer note 17) due to the
consideration being less than fair value of assets acquired.
f. Financing component
The Group does not expect to have any contracts where the period between the transfer of the promised service to the
customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the
transaction prices for the time value of money.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 16TIL LOGISTICS GROUP LIMITED
7. REVENUE & OTHER SOURCES OF INCOME (CONTINUED)

g. Contract liability
The Group recognises a contract liability (deferred revenue) when the Group has received consideration for performance
obligations yet to be fulfilled. The opening balance has been recognised in revenue in the current year. In the current
year, there was $344,000 of revenue recognised relating to contract liabilities at the prior year end. The average timing
of satisfaction of performance obligation in relation to the payment of the contract liability is between 1 and 5 days.
Management expects that 100% of the transaction price allocated to unsatisfied performance obligations as of 30 June
2020 will be recognised as revenue during the next reporting period ($361,000).
h. Government grants
Grants from the Government are recognised at their fair value where there is reasonable assurance that the grant will be
received, and the Group will comply with the attached conditions.
COVID-19 wage subsidy grants of $10,723,000 (2019:$0) are included in the ‘other income’ line item. There are no
unfulfilled conditions or other contingencies attached to these grants. The Group did not benefit directly from any other
forms of government assistance. Government grants relating to income are deferred and recognised in profit or loss over
the period necessary to match them with the conditions that they are intended to compensate and were recognised over
a 12 week period from application for the subsidy.
8. OPERATING EXPENSES BY NATURE

2020
$000
2019
$000
Transport costs
1
132,718147,742
Employee costs (note 8.1)125,309125,481
Property lease expenses1,12918,858
Operation lease expenses3,98515,027
Trading and warehousing expenses6,0025,658
Communications4,8924,081
Occupancy costs6,1185,054
Travel and accommodation
2
2,7913,873
Bad debts393105
Foreign exchange loss379
Remuneration paid to principal auditors (PwC)
Assurance services
Audit and review of financial statements, including associated disbursements353300
Non-assurance services
Other advisory services related to remuneration benchmarking and executive
compensation
1959
Donations2017
Directors fees 398417
Depreciation and amortisation42,90213,610
Impairment of investment in associates440-
Net change in contingent consideration and advisor costs
3
(225)2,600
Other expenses5,3295,374
Total operating expenses332,610348,265

1
Includes costs relating to transportation including road user charges (RUC), fuel, tyres, repairs and maintenance, owner driver and subcontractor costs.
2
Previously the Group classified travel and accomodation costs within other expenses. In the current year these expenses have been disclosed separately as a
material grouping of expenses. Comparables have been reclassified to align with this treatment amounting to $3.8 million.
3
The net change in contingent consideration and advisor costs in 2019 is the result of the final determination of the amount payable relating to the MOVE Logistics
business acquired in June 2017.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 17TIL LOGISTICS GROUP LIMITED
8.1. EMPLOYEE COSTS
a. Superannuation benefits
The Group operates a defined contribution superannuation scheme. The scheme is funded through employee and Group
contributions to a trustee-administered fund. The Group has no further payment obligations once contributions have
been paid. Contributions are recognised as an employee benefits expense when they are due.

TIL Freighting Limited has a historic defined contribution company superannuation scheme that has been operating for a
number of years. The Company has contribution rates from 4% - 10%.
Members contribute a minimum of 4% of their salary/wage and can go as high as 15%. The Company contributions are
vested to the member at the rate of 20% per year of service with the Company i.e. 100% after five years of service.
b. Other employee benefits
Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave are expected to be
settled within 12 months. They are measured at the amounts expected to be paid when the liabilities are settled.
c. Long service leave
The liabilities for long service leave and annual leave are not expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service. They are therefore measured at the present value
of expected future payments to be made in respect of services provided by employees up to the end of the reporting
period. Consideration is given to expected future wage and salary levels, experience of employee departures and periods
of service. Expected future payments are discounted using market yields at the end of the reporting period of high-
quality corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows.
Re-measurement as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or
loss.
d. Profit-sharing and bonus plans
The Group recognises a liability and an expense for bonuses and profit-sharing based on a formula that takes into
consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognises a
provision where contractually obliged or where there is a past practice that has created a constructive obligation.
2020
$000
2019
$000
Wages, salaries & leave costs118,043118,993
Superannuation fund contributions2,8062,755
Other employee related costs4,4603,733
Total125,309125,481
9. INCOME TAX EXPENSE

The tax expense for the year comprised current and deferred tax. Tax is recognised in the profit or loss component
of the Statement of Profit or Loss & Other Comprehensive Income except to the extent that it relates to items
recognised directly in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or equity respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance
sheet date in the countries where the Company and its subsidiaries operate and generate taxable income.

2020
$000
2019
$000
Current tax on profit for the year(1,760)(2,337)
Adjustments in respect to prior years(46)(58)
Deferred tax822(631)
(984)(3,026)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 18TIL LOGISTICS GROUP LIMITED
9. INCOME TAX EXPENSE (CONTINUED)
The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense
in the financial statements as follows:

2020
$000
2019
$000
Profit before income tax3,4957,390
Add back:
Contingent consideration(225)-
Impairment of investment in associates440-
Share of loss of associates86361
Bargain on acquisition(1,106)-
2,6907,75 1
Prima facie tax (payable) at 28%(753)(2,170)
Tax effects of:
Income not subject to tax-20
Timing differences not in deferred tax-(9)
Expenses not deductible(185)(809)
Prior year adjustment(46)(58)
Income tax expense(984)(3,026)
Imputation credits
2020
$000
2019
$000
Imputation credits available for use in subsequent periods5,0284,977
10. DIVIDENDS PAID AND PROPOSED

Dividends to the company shareholders are recognised in the Group’s financial statements in the period in which the
dividends are declared.

2020
$000
2019
$000
Recognised Amounts
Final fully imputed dividend for 2019: 2.5 cents (2018: 2.3 cents)2,1591,874
Interim fully imputed dividend for 2020: 0.0 cents (2019: 2.5 cents)-2,129
Dividends not recognised at the end of the reporting period
Since year end the Directors have recommended that no final dividend per fully
paid ordinary share be paid (2019: 2.5 cents).
-2,159
The company operates a Dividend Reinvestment Plan (refer note 14).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 19TIL LOGISTICS GROUP LIMITED
11. EARNINGS PER SHARE

The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is computed based
on the weighted average number of ordinary shares outstanding during the period. Diluted EPS is computed based on
the weighted average number of ordinary shares plus the effect of dilutive potential ordinary shares outstanding during
the period.

12 months to 30
June 2020
12 months to 30
June 2019
$000$000
Profit attributable to the owners for the year 2,0154,004
Weighted average number of shares87,363,35284,328,648
CentsCents
Basic & diluted earnings per share 2.314.75

12. FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The Group classifies its financial assets at amortised cost. The classification depends on the purpose for which the
financial assets are held. Management determines the classification of its financial assets at initial recognition.
Financial assets are included in current assets, except for those with maturities greater than 12 months after the reporting
date which are classified as non-current assets. The Group’s financial assets comprise ‘Trade and other receivables’, ‘Cash
and cash equivalents’ and ‘Advances to associates’ in the Balance Sheet. Financial assets that are stated at amortised
cost are reviewed individually at balance date to determine whether there is objective evidence of impairment. Any
impairment losses are recognised in profit or loss in the statement of comprehensive income.
This note provides information about the Group’s financial instruments, including:
• An overview of all financial instruments held by the Group
• Specific information about each type of financial instrument
• Information about determining the fair value of the instruments, including judgements and estimations of
uncertainty involved.

The Group holds the following financial instruments:
AMORTISED COST
Financial AssetsNotes
2020
$000
2019
$000
Cash and cash equivalents
12.1
11,8826,389
Trade and other receivables
1
12.2
42,03949,639
Advances to associates
12.3
305581
Total54,22656,609
1
excluding prepayments

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 20TIL LOGISTICS GROUP LIMITED
12. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)

FINANCIAL LIABILITIES AT AMORTISED COST
Financial LiabilitiesNotes
2020
$000
2019
$000
Trade Payables
1
12.4
26,03137,687
Borrowings
12.5
86,26384,317
Employee entitlements
12.6
14,20812,957
Contingent consideration-225
Total126,502135,186
1
excluding non-financial liabilities
The Group’s exposure to various risks associated with the financial instruments is discussed in note 3. The maximum
exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets
mentioned above, other than for trade and other receivables where the maximum credit risk is the balance before
impairment, being $44,991,000 (2019: $50,504,000).
12.1. CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash on hand, deposits held on call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the Balance Sheet.
Cash and cash equivalents include the following for the purpose of the cash flow statement:
2020
$000
2019
$000
Cash11,8826,389
Bank overdrafts (undrawn, refer note 3.3)--
Total11,8826,389


12.2. TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method less provision for expected credit loss.
The Group assesses on a forward looking basis the expected credit losses associated with trade receivables carried at
amortised cost. The Group applies the simplified approach permitted by NZ IFRS 9, which requires expected lifetime
losses to be recognised from initial recognition of the receivables. Impairment of trade receivables is recognised in profit
or loss.
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation,
and default or delinquency in payments are considered indicators that the trade receivable has been impaired. The
amount of the provision is the difference between the asset’s carrying amount and the present value of the estimated
future cash flows, discounted at the original effective interest rate.

2020
$000
2019
$000
Trade receivables43,64248,439
Trade receivables related parties 98285
Less expected credit loss (refer note 3.1(a))(2,952)(865)
Net trade receivables40,78847,859
Accrued revenue7171,313
Sundry receivables534467
Financial assets at amortised cost42,03949,639
Prepayments1,6721,398
Total trade and other receivables43,71151,037
Trade receivables are generally due for settlement within 30 to 60 days.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 21TIL LOGISTICS GROUP LIMITED
12.3. ADVANCES TO ASSOCIATES
2020
$000
2019
$000
ATL Limited-275
TNL International Australia Pty Limited-3
Eamonn Stephen Farrell
1
8886
UNITE Logistics Limited
2
217217
Total305581
1 The advance to Eamonn Stephen Farrell is interest bearing and was repaid on 10 July 2020 (refer note 22).
2 The advance with UNITE Logistics Limited is due on demand and is non-interest bearing.
12.4. TRADE AND OTHER PAYABLES
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method.

2020
$000
2019
$000
Trade payables16,85123,571
Trade payables related parties181762
GST payable1,0191,661
Lease incentive121190
Accrued expenses8,87813,164
Total27,05039,348

Trade payables are unsecured and are usually paid within 30 to 60 days of recognition.

12.5. BORROWINGS
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at
amortised cost using the effective interest method. Any borrowings are classified as current liabilities unless the Group
has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Borrowing costs are expensed as incurred, unless they relate to the acquisition, construction or production of a qualifying
asset in which case the borrowing costs are capitalised.

The facility includes a revolving committed cash facility of $75 million, an overdraft facility of $10 million, a term loan of
$6.9 million and a bank guarantee facility of $7.4 million (refer note 3.3).
30 June
2020
$000
30 June
2019
$000
Non-Current
Secured loan ASB 76,48878,996
Secured loan Mainland Capital / De Lage Landen64136
Secured loan Toyota Finance3,611-
80,16379,132
Current
Secured loan ASB 5,2595,113
Secured loan Mainland Capital / De Lage Landen7272
Secured loan Toyota Finance769-
6,1005,185
Total86,26384,317

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 22TIL LOGISTICS GROUP LIMITED
12.5. BORROWINGS (CONTINUED)
The ASB Bank Limited facilities are secured by way of a first ranking general security over the Group’s assets and
undertakings.
Toyota Finance Limited holds a registered security over the motor vehicles that relate to the assets used as security for
the ATL Limited acquisition (refer note 17).
As at 30 June 2020 the Group had total borrowings of $86.3m (2019: $84.3m). On 12 November 2019 the term of the
ASB Bank Limited (ASB) secured loan was extended to 6 December 2021.
The Group is required to comply with a number of financial covenants and undertakings under the Senior Facility
Agreement with ASB, including an Interest Cover Ratio of greater than 3.00x, a Debt Service Cover Ratio of greater
than 1.20x and Leverage Ratio of less than 3.5x.
The Group expected it would breach some of these covenants at 31 December 2019 and as a result the Group obtained
a waiver from ASB prior to the expected breaches.
On 28 February 2020 the Group agreed an amendment with ASB to reset its financial covenants. This amendment
indicates the continued support of the Group’s banking partner, ASB.
The reset covenants are as follows:
• Leverage Ratio of <4.0x for 31 March 2020 and then increasing back to <3.50x thereafter
• Interest Cover Ratio of >1.75x for 31 March 2020 and 30 June 2020; increasing to >2.25x for 30 September 2020
and >3.00x thereafter
• Debt Service Cover Ratio >0.75x for 31 March 2020, 30 June 2020 and 30 September 2020, increasing to >1.00x
for 31 December 2020 and then back to >1.20x thereafter
• A new undertaking that Operating Lease Commitments in relation to fleet and equipment are capped at $70m
The Group has fully complied with the reset facility covenants and undertakings to 30 June 2020.
The recent trading performance and current outlook for the Group is supported by industry forecasts, albeit with some
risk of short-term softening in demand. These factors are reflected in the Group’s covenant compliance forecasts. Based
on these forecasts the Group is expected to comply with the financial covenants for at least the next 12 months, with
higher headroom than had been forecast at the time of the latest half year financial statements, and there is sufficient
headroom to allow for reasonable variability in actual performance during this period. Accordingly the consolidated
financial statements are prepared on a going concern basis.
The COVID-19 pandemic presents on-going uncertainties to the general economic environment and if those impacts are
significantly more severe than currently expected by economic and industry forecasts then this may increase the risk of
complying with the financial covenants.

12.6 EMPLOYEE ENTITLEMENTS
2020
$000
2019
$000
Leave provision8,3438,320
Salary and wage accruals5,8654,637
Total14,20812,957

12.7 RECOGNISED FAIR VALUE MEASUREMENTS
This section explains the judgement and estimates made in determining the fair values of the financial instruments that
are recognised and measured at fair value in the financial statements.
Level 1Level 2Level 3Total
$000$000$000$000
Recurring fair value measurements
At 30 June 2019
Contingent consideration--(225)(225)
At 30 June 2020
Contingent consideration----

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 23TIL LOGISTICS GROUP LIMITED
12.7 RECOGNISED FAIR VALUE MEASUREMENTS (CONTINUED)
The following table presents the changes in level 3 items for the year ended 30 June 2020:
Contingent
consideration
$000
Opening balance 1 July 2018(2,192)
Amounts reclassified to payables3,500
(Losses) recognised in other expenses(1,533)
Closing balance 30 June 2019(225)
Opening balance 1 July 2019(225)
Unused amounts reversed225
Closing balance 30 June 2020-

13. NON-FINANCIAL ASSETS AND LIABILITIES

This note provides information about the Group’s non-financial assets and liabilities, including specific information about
each type of non-financial asset and non-financial liability:
• Property, plant and equipment (note 13.1)
• Intangible assets (note 13.2)
• Deferred tax balances (note 13.3)
• Provisions for other liabilities and charges (note 13.4)
Impairment of non-financial assets
Goodwill, indefinite-life intangible assets and intangible assets that are not yet ready for use are tested annually for
impairment. Assets that are subject to depreciation and amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs to dispose and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-
financial assets, other than goodwill, that suffered an impairment are reviewed for possible reversal of the impairment at
each reporting date.
13.1. PROPERTY, PLANT AND EQUIPMENT
All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item
can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance
are charged to profit or loss during the financial period in which they are incurred.

Depreciation on assets is calculated using the diminishing value (DV) or straight-line (SL) method. From 1 July 2019
depreciation on all assets aquired is calculated using the SL method.
Years
Depreciation
rate
Method
Plant and equipment - leasehold improvements1 - 162.5% - 50%SL/DV
Motor vehicles - trucks 0.5 - 14-SL
Motor vehicles - trailers0.5 - 18 -SL
Plant and equipment 1 - 307.5% - 67%SL/DV
Motor vehicles - other1 - 2513% - 30%SL/DV
Office equipment 1.5 - 148% - 67%SL/DV
Furniture and fittings0.5 - 144% - 67%SL/DV
Leased assets1 - 12 -SL
Land and buildings0% - 30%DV

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 24TIL LOGISTICS GROUP LIMITED
13.1. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
The assets’ useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised
within ‘Gains on disposal of assets’ in the Statement of Profit or Loss & Other Comprehensive Income.
Land and
buildings
Motor
vehicles
Office
equipment
and F&F
Plant and
equipment
Work in
progress
Total
$000$000$000$000$000$000
At 1 July 2018
Cost 404139,6103,47614,0812,768160,339
Accumulated depreciation(249)(74,990)(2,328)(8,156)-(85,723)
Net book amount15564,6201,1485,9252,76874,616
Year ended 30 June 2019
Additions1993,2716441,40417,85923,377
Acquisition of subsidiaries-15,410233,746-19,179
Disposals-(4,797)(9)(161)(7,761)(12,728)
Transfers-9,0991971,919(12,065)(850)
Depreciation charge(10)(9,222)(531)(1,518)-(11,281)
Closing net book amount34478,3811,47211,31580192,313
At 1 July 2019
Cost604156,1384,27820,727801182,548
Accumulated depreciation(260)(77,757)(2,806)(9,412)-(90,235)
Net book amount34478,3811,47211,31580192,313
Year ended 30 June 2020
Additions-4,3395661,1218,94814,974
Acquisition of subsidiaries-5,0087361-5,142
Disposals(23)(1,497)(1)(101)(4,394)(6,016)
Transfers-1,97261,004(2,982)-
Depreciation charge(10)(9,510)(591)(2,073)-(12,184)
Closing net book amount31178,6931,52511,3272,37394,229
At 30 June 2020
Cost580163,3834,91822,8792,373194,133
Accumulated depreciation(269)(84,690)(3,393)(11,552)-(99,904)
Closing net book amount31178,6931,52511,3272,37394,229

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 25TIL LOGISTICS GROUP LIMITED
13.2 INTANGIBLE ASSETS
a. Goodwill
Goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree,
and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of
the identifiable net assets acquired. Goodwill on acquisitions of subsidiaries is included in ‘Intangible assets’ in the Balance
Sheet. Goodwill on acquisitions of associates is included in ‘Investments in associates’ in the balance sheet and is tested for
impairment as part of the overall balance. Separately recognised goodwill is tested annually for impairment and carried at
cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal
of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-
generating units or groups of cash-generating units that are expected to benefit from the business combination on which
the goodwill arose.
b. Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software. These costs are amortised, using the diminishing value method at a rate of 48% and recognised in the
profit or loss. Costs associated with maintaining computer software programmes are recognised as an expense when
incurred.
c. Customer contracts and lists
Acquired customer contracts and lists are recognised at their fair value at the date of acquisition and are subsequently
amortised on a straight-line basis over six years. Amortisation expense is recognised in the profit or loss.
Goodwill
Computer
software
Work in
progress
Customer
lists
Total
$000$000$000$000$000
At 1 July 2018
Cost
15,0202,151-10,13227,303
Accum. amortisation and impairment-(854)-(1,836)(2,690)
Net book amount
15,0201,297-8,29624,613
Year ended 30 June 2019
Additions
-775--775
Transfers
-850--850
Amortisation/impairment charge
-(676)-(1,653)(2,329)
Closing net book amount
15,0202,246-6,64323,909
At 1 July 2019
Cost
15,0203,776-10,13228,928
Accum. amortisation and impairment
-(1,530)-(3,489)(5,019)
Net book amount
15,0202,246-6,64323,909
Year ended 30 June 2020
Additions
-312,160-2,191
Disposals
--(21)-(21)
Transfers
-(31)31--
Amortisation/impairment charge
-(652)-(1,606)(2,258)
Closing net book amount
15,0201,5942,1705,03723,821
At 30 June 2020
Cost
15,0203,7772,17010,13231,099
Accum. amortisation and impairment
-(2,183)-(5,095)(7,278)
Closing net book amount15,0201,5942,1705,03723,821

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 26TIL LOGISTICS GROUP LIMITED
13.2 INTANGIBLE ASSETS (CONTINUED)
The Group has classified its goodwill into the following cash-generating units (CGUs):

2020
$000
2019
$000
TIL Freighting Limited1,0271,027
Alpha Customs Limited776776
MOVE Logistics Limited12,49212,492
TNL International Limited170170
McAuley’s Transport Limited555555
Total15,02015,020

The Group tests goodwill for impairment using value in use calculations with cash flow projections based on a five-year
period. In response to current challenges faced when forecasting future cash flows, Management has prepared an upside,
downside and base scenario for each CGU. Each of these include the three years of Board approved cash flow projections
with cashflows beyond this extrapolated using the assumptions as noted below. The final value in use calculations for
each CGU apply an assessed probability weighting to the three scenarios. The current probability weighting approach is
a change from previous impairment tests which used a single forecast.
Management exercises judgement in confirming the carrying value of goodwill, considering a wide range of inputs
including the state of the industry and market movements. While Management has concluded that there are no
impairments for any of the CGUs at 30 June 2020, a reasonably possible change in key assumptions in the value in use
calculations could cause an impairment in the TIL Freighting Limited and McAuley’s Transport Limited CGUs. In addition
to these CGUs, the MOVE Logistics Limited CGU has a significant goodwill balance.
The key assumptions for the value in use calculations of these three CGUs are summarised below:

Discount
rate post-
tax
Discount
rate pre-tax
Terminal
growth rate
Revenue
growth rate
year 1*
Revenue
growth rate
year 2*
Revenue
growth rate
year 3 - 5*
30 June 2019
MOVE Logistics Limited9.2%11.3%2.0%0.4%2.0%2.0%
TIL Freighting Limited9.2%11.3%2.0%3.6%3.5%2.0%
McAuley’s Transport Limited11.3%13.5%2.0%7.0%2.0%2.0%
30 June 2020
MOVE Logistics Limited9.1%10.2%1.7%2.1%3.0%1.9% - 2.0%
TIL Freighting Limited9.5%11.0%1.7%0.6%7.6%0.0% - 5.2%
McAuley’s Transport Limited11.6%15.0%1.7%(5.5%)8.4%2.0% - 7.0%
*Probability weighted

The discount rate represents the current market assessment of the risks specific to the CGU considering the time value
of money and individual risk of the underlying assets. The discount rate is calculated based on the specific circumstances
of the CGU and its operations and is derived from its weighted average cost of capital (WACC). The Group engaged an
independent third party to assess the post-tax weighted average cost of capital for each of the CGUs. These post-tax
discount rates were applied to post-tax cash flows.
The long-term growth rate is based on growth in GDP, market conditions and opportunities for growth within the
industry and is in line with the mid-point between long term GDP predictions and inflation (as measured by the consumer
price index).
The right of use assets have been included in the carrying amount of net operating assets that have been tested for
impairment for each of the CGUs.
Future revenue projections are based on assumed growth in sales as a result of a renewed sales structure and focus to
deliver on opportunities for growth of existing customers as well as expected pipeline new customers to come on board
during the year in both the MOVE Logistics Limited and the TIL Freighting Limited CGUs. Management have confidence
in the strategy to achieve this given the opportunities both internally and within the market and the appointment of a
new role of Executive GM Sales and Marketing in TIL Freighting Limited to assist with this growth.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 27TIL LOGISTICS GROUP LIMITED
13.2 INTANGIBLE ASSETS (CONTINUED)
Based on the probability weighted value in use calculations, the recoverable amounts of the CGUs exceed their carrying
value at 30 June 2020 by the following amounts:
• TIL Freighting Limited CGU: $12.7m
• McAuley’s Transport Limited CGU: $0.4m
• MOVE Logistics Limited CGU: $43.8m
In respect of the MOVE Logistics Limited CGU any reasonable possible change in the key assumptions used in the
calculation would not cause the carrying value to exceed its recoverable amount.
In respect of the TIL Freighting Limited CGU the relevant changes to key assumptions (with all other assumptions
remaining constant) which would result in reducing the recoverable amount to equal its carrying value are as follows:
• Terminal growth rate 358 basis point reduction to (1.58%)
• Post tax discount rate 174 basis point increase to 11.24%
• Annual sales growth 31 basis point reduction to 2.98%
In respect to McAuley’s Transport Limited CGU the relevant changes to key assumptions (with all other assumptions
remaining constant) which would result in reducing the recovable amount to equal it’s carrying value are as follows:
• Terminal growth rate 84 basis point reduction to 0.86%
• Post tax discount rate 54 basis point increase to 12.14%
• Annual sales growth 17 basis point reduction to 2.63%
Management has concluded that the goodwill balances at 30 June 2020 are not impaired (either using the probability
weighted case or any of the individual scenarios), although they will continue to monitor the position closely for any
evidence that the goodwill has become impaired.
13.3. DEFERRED INCOME TAX
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income
tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date
and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the
same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle
the balances on a net basis.

Temporary differences arise from the following:
Deferred tax assets/(liabilities)
Opening
balance
Recognised in
profit or loss
Acquisition of
subsidiaries
Closing
balance
$000$000$000$000
2019
Property, plant and equipment(5,937)(591)-(6,528)
Provisions and accruals2,466(40)-2,426
Total deferred income tax(3,471)(631)-(4,102)
2020
Property, plant and equipment(6,528)(778)(355)(7,661)
Right of use assets / lease liability-967-967
Provisions and accruals2,426633393,098
Carry forward losses--256256
Total deferred income tax(4,102)822(60)(3,340)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 28TIL LOGISTICS GROUP LIMITED
13.4. PROVISIONS FOR OTHER LIABILITIES AND CHARGES

Provisions for make good obligations are recognised when the Group has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reliably estimated.
Provisions are measured at the present value of Management’s best estimate of the expenditure required to settle the
present obligations at the end of the reporting period.

Make good
lease provision
Contingent
consideration
for business
combination
Legal claim
provision
Total
$000$000$000$000
At 1 July 20187862,192-2,978
Additional provisions511,533-1,584
Released to profit or loss(70)(3,500)-(3,570)
At 30 June 2019767225-992
At 1 July 2019
767225-992
Additional provisions1,581-2941,875
Released to profit or loss(35)(225)-(260)
At 30 June 20202,313-2942,607
a. Information about individual provisions and significant estimates
Make good lease provision
The Group is required to restore the leased premises of its depot and warehouses to their original condition at the end of
the respective lease terms. A provision has been recognised for the estimated expenditure required.
Legal claim provision
The Group currently has a dispute regarding its contract with one of its customers (refer note 3.1). This amount of
the provision reflects the Directors’ best estimate of the likely outcome. This amount disputed has been paid by the
customer, but there is a risk of partial repayment.
Contingent consideration
Contingent consideration had previously been recognised relating to the acquisition in September 2017 of the assets of
Glassworks Logistics Limited and Seamont Enterprises. The remaining amount of this has been reversed to profit or loss
as the measure relating to the contingent consideration was not met.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 29TIL LOGISTICS GROUP LIMITED
14. SHARE CAPITAL

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax from the proceeds.

30 June 202030 June 2019
Shares$000Shares$000
Issued & paid-up capital - ordinary shares
Balance at the beginning of the period86,347,60835,44981,459,48328,107
Shares issued - dividend reinvestment plan1,337,2741,6052,221,4583,342
Shares issued - business acquisition--2,666,6674,000
Balance at the end of the period87,684,88237,05486,347,60835,449
DIVIDEND REINVESTMENT PLAN
Under the Dividend Reinvestment Plan (DRP), applied to the dividend paid on 27 September 2019, the Company issued
1,337,274 shares at $1.20 per share.
The issue price was determined, in accordance with the DRP, as the volume weighted average sale price (rounded to the
nearest cent) for all TIL Logistics Group shares sold through the NZX Main Board (excluding special trades) over the five
trading days immediately following 13 September 2019, less a 3% discount.
15. CASH FLOW INFORMATION
15.1 CASH GENERATED FROM OPERATIONS
2020
$000
2019
$000
Reported profit after tax
2,4904,364
Non-cash items
Depreciation expense40,64411,281
Amortisation expense2,2582,329
Bad debts393105
Amortisation of bank fees287272
Contingent consideration(225)-
Bargain on acquisition(1,106)-
Impairment of investment in associates440-
Foreign exchange losses on operating activities379
45,21818,360
Impact of changes in working capital
Tax receivable / deferred tax(200)740
Trade and other receivables9,681(5,183)
Creditors and accruals/employee entitlements(12,071)6,602
Creditors relating to purchase of PPE(1,545)(528)
Inventories234(22)
41,31719,969
Items classified as investing or financing activities
Profit on disposal of property, plant and equipment(547)(948)
Loss for associates86361
Net cash flow from operating activities40,85619,382

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30TIL LOGISTICS GROUP LIMITED
15.2 NET DEBT RECONCILIATION
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
2020
$000
2019
$000
Cash and cash equivalents11,8826,389
Lease liability - repayable within one year(25,882)-
Borrowings - repayable within one year (including overdraft)(6,100)(5,185)
Lease liability - repayable after one year(147,600)-
Borrowings - repayable after one year(80,163)(79,132)
Net debt
(247,863)(77,928)
Cash and liquid investments11,8826,389
Liability - incremental borrowing rate(173,482)-
Borrowings - fixed interest rates(24,517)(101)
Borrowings - variable interest rates(61,746)(84,216)
Net debt
(247,863)(77,928)
Liabilities from financing activities
BorrowingsLeasesSubtotalCash/bank
overdraft
Total

$000$000$000$000$000
Net debt as at 1 July 2018
(73,879)-(73,879)2,881(70,998)
Cash flows
(10,767)-(10,767)3,508(7,259)
Other non-cash movement
329-329-329
Net debt as at 30 June 2019(84,317)-(84,317)6,389(77,928)
Recognised on adoption of
NZ IFRS 16 (refer note 20)
-(176,191)(176,191)-(176,191)
Cash flows
2,97122,95625,9275,49331,420
Acquisitions
(4,629)-(4,629)-(4,629)
Lease additions
-(17,841)(17,841)-(17,841)
Other non-cash movements
(288)(2,406)(2,694)-(2,694)
Net debt as at 30 June 2020(86,263)(173,482)(259,745)11,882(247,863)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31TIL LOGISTICS GROUP LIMITED
16. INTEREST IN OTHER ENTITIES

16.1 SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilites and results of the following subsidiaries in
accordance with the accounting policy described in note 2.1. All subsidiaries are incorporated in New Zealand.
All subsidiaries results up to 30 June 2020 have been incorporated in the consolidated financial statements.
Shareholding
30 June 2020
Shareholding
30 June 2019
Balance
date
Principal activity
TIL Freighting Limited100%100%30 JuneTransport operator
Pacific Fuel Haul Limited100%100%30 JuneTransport operator
Alpha Custom Services Limited60%60%30 JuneInternational freight forwarder
Pacific Asset Leasing Limited100%100%30 JuneAsset leasing
Hookers Shipping Limited100%100%30 JuneShipping agent and logistics
McAuley’s Transport Limited100%100%30 JuneTransport operator
MOVE Logistics Limited100%100%30 JuneWarehousing and distribution
Southern Fleet Leasing Limited100%100%30 JuneAsset leasing
NZL Group Limited100%100%30 JuneWarehousing and distribution
TNL International Limited50%50%30 JuneInternational freight forwarder
Appian Transport Limited100%100%30 JuneNon trading
Global Logistics Group Limited100%100%30 JuneNon trading
Specialist Lifting and Transport
Group Limited
100%100%30 JuneHeavy Haulage
TNL Logistics Limited100%100%30 JuneNon trading
Transport Nelson Limited100%100%30 JuneNon trading
Transport Investments Limited100%100%30 JuneCorporate services
Pacific Liquid Logistics Limited100%100%30 JuneNon trading
ATL Limited100%50%30 JuneTransport operator
16.2 INTERESTS IN ASSOCIATES
Set out below are the associates of the Group as at 30 June 2020 which, in the opinion of the Directors, are material to
the Group. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by
the Group. The country of incorporation or registration is also their principal place of business, and the proportion of
ownership interest is the same as the proportion of voting rights held.
Place of
business/
country of
incorporation
% of ownership
interest
Nature of
relationship
Measurement
method
Investment in
associates
20202019
2020
$000
2019
$000
UNITE Logistics Limited
1
New Zealand50%50%AssociateEquity method353876
TNL International (Australia)
Pty Limited
2
Australia23.75%25%AssociateEquity method75-
Emerald Truck Services
Limited
3
New Zealand33.3%33.3%AssociateEquity method225193
ATL Limited
4
New Zealand100%50%SubsidiaryConsolidated-605
Immaterial associates-18
Total6531,692

1 UNITE Logistics Limited is a transport services provider for the Auckland and surrounding area’s construction industry, specialising in crane transport. This service
complements the Group’s current transport services. The balance date for this entity is March.
2 TNL International (Australia) Pty Limited provides international freight forwarding services. This is a strategic investment which strengthens our access to Oceania
customers in this market. The balance date for this entity is June.
3 Emerald Truck Services Limited is an automotive repair workshop based in Masterton specialising in trucks and trailers. This service is strategic to the Group given
the material amount spent on repairs and maintenance (refer note 22). The balance date for this entity is June.
4 The Group acquired the remaining 50% of shares in ATL Limited and this entity is now consolidated in the Group financial statements (refer note 17).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 32TIL LOGISTICS GROUP LIMITED
16.2 INTERESTS IN ASSOCIATES (CONTINUED)
The Group’s results of its principal associates, all of which are unlisted, and total assets (including goodwill) and liabilities,
are as follows. The Group equity accounts for these associates based on management reporting for the year end to 30
June (the Group’s balance date).

UNITE Logistics
Limited
Emerald Truck
Services Limited
ATL Limited
1
TNL International
(Australia) Pty
Limited
20202019202020192020201920202019
$000$000$000$000$000$000$000$000
Summarised balance sheet
Current assets
9281,308749967-
1,2161,842-
Non-current assets
2,0641,977491431-
4,47328-
Current liabilities
807924299695-
4781,516-
Non-current liabilities1,7851,87715413-3,998--
Net assets
400484787690-1,213354-
Summarised statement of
comprehensive income
Revenue
6,7528,1323,3562,017-8,1711,452-
Profit from continuing operations
(136)2879768-(714)314-
Investment carrying amount
reconciliation
Opening balance
876899193-605962--
Dividends received
--------
Consolidation of associate
----(495)---
Acquisition
---174----
Impairment of investment
(309)---(131)---
Earnings from associates
(214)(23)321921(357)75-
Closing balance
353876225193-60575-

1 The Group acquired the remaining 50% of shares in ATL Limited and is now consolidated in the Group financial statements (refer note 17).
MOVE Logistics Limited as part of its investment in UNITE Logistics Limited has provided the Bank of New Zealand a
guarantee for $500,000 plus one years interest in relation to the loan facility held by UNITE Logistics Limited.
Impairment of associates
UNITE Logistics Limited
During the year UNITE Logistics Limited lost a customer for which a customer list was held in the investment recognised.
As a result management have assessed based on the forecasted cash flows and the uncertainty regarding financial
performance that the recoverable amount was below the carrying amount of its investment by the value of the
impairment loss.
ATL Limited
The impairment was a result of the fair value assessed as part of the acquisition for the remaining 50% of the shares
(refer note 20).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 33TIL LOGISTICS GROUP LIMITED
17. BUSINESS COMBINATIONS
The Group acquired, on 2nd March 2020, the remaining 50% in ATL Limited, a company specialising in general freight in
Central Otago. This acquisition complements the Group strategy for a nationwide general freight network.
The table below summarises the consideration paid by the Group and the fair value of assets acquired and liabilities
assumed:
$000
Purchase consideration (cash) 400
Fair value of previously held interest495
Net intercompany trade receivables and payables(1,011)
Total purchase consideration (116)
Fair value of assets acquired and liabilities assumed
Cash and cash equivalents395
Trade and other receivables881
Trade and other payables(491)
Borrowings(4,629)
Deferred tax(60)
Tax receivable(20)
Property, plant and equipment 5,142
Employee entitlements(228)
Bargain on acquisition(1,106)

There were no contingent assets or liabilities acquired as part of the transaction.
The Group previously accounted for its 50% shareholding as an associate.
a. Acquired receivables
The fair value of acquired trade receivables is $850,000. The gross contractual amount for trade receivables due is
$976,000 with a loss allowance of $126,000 recognised on acquisition.
b. Bargain on acquisition
The recognition of $1,106,000 as a bargain on purchase is supported by the fact that difficult market conditions existed
for ATL Limited in a highly competitive industry. In addition, ATL Limited was often loss making and underperforming.
Transport Investments Limited were the only realistic purchaser of the shares given its current 50% investment.
c. Revenue and profit contributions
The acquired business contributed revenues of $2,173,000 and a loss before tax of $155,000 to the Group for the period
2 March 2020 to 30 June 2020. If the acquisition had occurred on 1 July 2019, the revenue and profit contributed by
the acquired business for the 12 months ending 30 June 2020 would have been revenue of $6,753,000 and a net loss of
$102,000 respectively.
d. Acquisition costs
Acquisition costs of $104,000 were expensed as incurred and are included under other expenses (refer note 8).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 34TIL LOGISTICS GROUP LIMITED
18. CONTINGENCIES
Bank Guarantee
The Group provides (via ASB Bank) the below guarantees.
2020
$000
2019
$000
Bank guarantees - property2,7873,337
Bank guarantees - fuel purchases4,5004,500
Bank guarantees - other7575
Total7,3627,912
19. CAPITAL COMMITMENTS

Capital expenditure contracted for at the reporting date but not yet incurred is as follows:
2020
$000
2019
$000
Trucks and trailers-7,367
Other assets417143
Total417
7,510


20. ACCOUNTING STANDARDS

Except as described below, the accounting policies applied are consistent with those of the annual financial statements
for the period ended 30 June 2019.
There was one new standard applied during the period. This note explains the impact of the adoption of NZ IFRS 16 on
the Group’s financial statements and discloses the new accounting policies that have been applied from 1 July 2019. This
standard replaces the current guidance in NZ IAS 17.

ADOPTION OF NZ IFRS 16 LEASES
The Group has adopted NZ IFRS 16 retrospectively from 1 July 2019, but has not restated comparatives for the 2019
reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and the
adjustments arising from the new leasing rules are therefore recognised in the opening Balance Sheet on 1 July 2019.
The Group leases relate to property, fleet and equipment which were all classified as operating leases until 30 June 2019.
Payments made under operating leases (net of any incentives received from the lessor) were previously charged to profit
or loss on a straight-line basis over the period of the lease. Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets
may not be used as security for borrowing purposes.
POLICIES
From 1 July 2019, leases are recognised as a right of use asset and a corresponding lease liability. Each lease payment
is allocated between the lease liability and the finance cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The
right of use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
• fixed payments, less any lease incentives receivable and
• variable lease payments that are based on an index or a rate.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the
lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 35TIL LOGISTICS GROUP LIMITED
20. ACCOUNTING STANDARDS (CONTINUED)

Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise
IT equipment and small items of office furniture.

Right of use assets were measured at the amount equal to the lease liability, adjusted by the amount of any lease
incentives received or restoration costs estimated. There were no onerous lease contracts that would have required an
adjustment to the right of use assets at the date of initial application. These assets are subsequently depreciated using
the straight-line method from the adoption date to the shorter of asset’s useful life and the end of the lease term.
Lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s
incremental borrowing rate as of 1 July 2019. The weighted average lessee’s incremental borrowing rate applied to the
lease liabilities on 1 July 2019 was 4.48%.

To determine the incremental borrowing rate. The Group uses a build up approach that starts with a risk free interest
rate adjusted to reflect changes in credit risk for leases held by the Group and then makes specific adjustments for lease
terms.
On transition and during the year, the Group applied the following practical expedients:
• the accounting for operating leases with a remaining lease term of less than 12 months as at 1 July 2019 as short-
term leases
• the use of historical experience in determining the lease term where the contract contains options to extend or
terminate the lease
• recognising rental concessions obtained as a direct result of the COVID-19 pandemic as a reduction to rental
expenses in the Statement of Profit or Loss and Other Comprehensive Income
In the process of adopting NZ IFRS 16, a number of judgements and estimates have been made. These include:
• incremental borrowing rate at the time of adoption
• lease terms, including any rights of renewal expected to be exercised. The Group has assumed that the rights of
renewal will be exercised in line with the Group’s strategy and previous leases. This judgement has been applied
unless a decision to discontinue or relocate is known at the time of adoption
• application of practical expedients and recognition exemptions allowed by the new standards, including in respect
of low value assets, portfolio approach for discount rates based on lease term and short-term lease exemptions
The following tables show the movements and analysis in relation to the right of use assets and lease liabilities, created
on the adoption of NZ IFRS 16.
Right of use assets$000
Opening net book value 1 July 2019
Recognised on transition177,992
Additions17,818
Disposals(149)
Modifications to leases2,828
Depreciation for the period
- Property (17,851)
- Motor Vehicles(9,923)
- Other(686)
Closing net book value 30 June 2020170,029
Cost198,411
Accumulated depreciation(28,382)
Net book value 30 June 2020170,029

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 36TIL LOGISTICS GROUP LIMITED
20. ACCOUNTING STANDARDS (CONTINUED)
The recognised right of use assets relate to the following types of assets:

Right of use assets$000
At 30 June 2020
Property127,849
Motor vehicles39,473
Other2,707
Total right of use assets170,029
Lease liabilities$000
Operating lease commitments as at 30 June 19282,110
Discounted at incremental borrowing rate at date of initial application151,890
Short term allowances(716)
Adjustment as a result of treatment/terminations25,017
Opening lease liabilities at 1 July 19176,191
Additions17,841
Interest for the period7,947
Lease payments made(30,903)
Disposals(498)
Modifications2,904
Lease liabilities at 30 June 2020173,482
Lease liabilities maturity analysisMinimum lease
payment
InterestPresent value
$000$000$000
Within one year33,1797,29725,882
One to five years96,84120,11176,730
Beyond five years86,55615,68670,870
Total216,57643,094173,482
Current lease liabilities33,1797,29725,882
Non-current lease liabilities183,39735,797147,600
Total216,57643,094173,482
Lease related expenses included in the Consolidated Statement of Profit & Loss & Other Comprehensive Income:
$000
For the year ended 30 June 2020
Depreciation28,460
Short term lease5,114
Interest on leases7,947
Total41,521

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 37TIL LOGISTICS GROUP LIMITED
20. ACCOUNTING STANDARDS (CONTINUED)

The table below provides further detail in relation to the impacts of NZ IFRS 16 on the Consolidated Statement of Profit
or Loss & Other Comprehensive Income for the year ended 30 June 2020.
Pre-NZ IFRS 16
classification
NZ IFRS 16
adjustment
NZ IFRS 16
classification
$000$000$000
Revenue333,811-333,811
Gains on disposal of assets6462648
Lease income1,333-1,333
Other income12,223-12,223
Total income348,0132348,015
Transport costs(132,718)-(132,718)
Employee costs(125,309)-(125,309)
Rental / lease expenses(36,018)30,904(5,114)
Other operating expenses(26,352)-(26,352)
Changes in contingent consideration / advisor fees225-225
Depreciation of right of use assets-(28,460)(28,460)
Other depreciation / amortisation expenses(14,442)-(14,442)
Impairment of investment in associates(440)-(440)
Total Operating Expenses(335,054)2,444(332,610)
Finance costs relating to lease liabilities-(7,947)(7,947)
Other finance costs - interest on borrowings(3,940)-(3,940)
Finance income on short term deposit63-63
Operating (deficit) / surplus before income tax9,082(5,501)3,581
Net cash generated from operating activities17,90022,95640,856
21. RELATED-PARTY TRANSACTIONS

21.1 TRANSACTIONS WITH KEY MANAGEMENT
a. Dividend reinvestment plan
The below table shows the shares that were issued to key management personnel under the dividend reinvestment plan
for the dividend paid on 27 September 2019 (refer note 14).
# SharesAmount
$000
Dividend reinvestment plan - Directors310,234372
Dividend reinvestment plan - Key management employees7,4059
b. Key management compensation
Key management includes Directors, the CEO and his direct reports:
2020
$000
2019
$000
Salaries, short term and post employee benefits2,8483,213
Directors fees398416

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 38TIL LOGISTICS GROUP LIMITED

21.2 TRANSACTIONS WITH OTHER RELATED PARTIES
The following transactions occurred with related parties:
2020
$000
2019
$000
Sales and purchases of goods and services
Sales of services to associates988511
Purchases of services from associates2,8213,260
Purchases from entities controlled by key management employees12399
2020
$000
2019
$000
Outstanding balances arising from sales and purchases of services
Trade receivables 98285
Trade payables181762

The Group determines the above balances are fully collectible.
2020
$000
2019
$000
Advances to related parties
ATL Limited-275
UNITE Logistics Limited217217
TNL International Australia Pty Limited-3
Eamonn Stephen Farrell8886
22. EVENTS AFTER THE REPORTING DATE
On 10 July 2020, as a result of the shareholder default McAuley’s Transport Limited signed a buyout agreement of one
of the shareholders of Emerald Truck Services Limited. From 10 July 2020 McAuley’s Transport Limited holds 50% of the
shares in Emerald Truck Services Limited and the consideration for the additional 17% shareholding was transacted in
exchange for the settlement of the outstanding shareholder loan (refer note 12.3).
On 20 July 2020 the Group signed a settlement agreement with one of its customers in regards to a disputed receivable.
As a result the full receivable balance outstanding was received on 5 August 2020 (refer note 3.1).

39
TIL LOGISTICS GROUP LIMITED





PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

DR
AFT
Independent auditor’s report
To the shareholders of TIL Logistics Group Limited

We have audited the consolidated financial statements which comprise:
● the consolidated balance sheet as at 30 June 2020;
● the consolidated statement of profit or loss and other comprehensive income for the year then ended;
● the consolidated statement of changes in equity for the year then ended;
● the consolidated statement of cash flows for the year then ended; and
● the notes to the consolidated financial statements, which include a summary of significant accounting
policies.

Our opinion
In our opinion, the accompanying consolidated financial statements of TIL Logistics Group Limited (the
Company), including its subsidiaries (the Group), present fairly, in all material respects, the financial
position of the Group as at 30 June 2020, its financial performance and its cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ
IFRS) and International Financial Reporting Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the consolidated financial statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board and the
International Code of Ethics for Professional Accountants (including International Independence
Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other services for the Group in relation to executive compensation advisory services.
The provision of these other services has not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.

40
TIL LOGISTICS GROUP LIMITED




PwC 40

Description of the key audit matter How our audit addressed the key audit matter
Goodwill impairment test
As at 30 June 2020 the Group had a total
goodwill balance of $15.0 million, as
disclosed in Note 13.2. This is allocated
across five cash generating units (CGUs).
Management performed value-in-use
(VIU) impairment tests as at 30 June
2020 and determined that there was no
impairment of goodwill required for any
CGU, though reasonably possible changes
of some assumptions may cause an
impairment for certain CGUs, as disclosed
in Note 13.2.
The goodwill impairment test is
considered a key audit matter due to the
significant level of management
judgement applied in estimating future
cash flows, particularly given the current
economic uncertainty created by the
COVID-19 pandemic, and other key
assumptions in determining the
recoverable amount of the CGU.
Management’s VIU impairment tests used
a discounted cash flow model based on
probability-weighted forecast cash flows
to determine the recoverable amount. Key
estimates and assumptions include:
● The near and medium-term impact
on revenue of the expected economic
slowdown and then recovery.
● The discount rates and the long-term
growth rates used in the impairment
models, as disclosed in Note 13.2.

We obtained the calculations performed by
Management and understood the assumptions used.
We gained an understanding of the current and
forecast outlook for the industry, including the
expected impact of the COVID-19 pandemic, and the
strategic direction of the business. Our understanding
was facilitated by meetings with management during
the year.
We assessed the reliability of management’s
forecasting process in previous years and considered
the impact on the assessment of forecast earnings.
We assessed the reasonableness of the assumptions
applied by management and, where necessary,
determined our own independent view on a point
estimate for the recoverable amount of each CGU to
test management’s calculation of these amounts. Our
calculations and procedures included the following:
● We considered external market forecasts for
domestic freighting and warehousing activity.
● We considered the level of revenue and earnings
growth the Group has achieved over the last year,
despite recent reductions from the initial effects of
the COVID-19 pandemic.
● We used the results of our understanding and
analysis to determine our independent view of
reasonable and supportable revenue and earnings
for the next five years and maintainable earnings
for the terminal year calculation.
● We used an auditor’s expert to determine
appropriate discount and long-term growth rates
and to assist us in challenging management’s
assumptions and developing our independent
point estimate.
We audited the disclosures in Note 13.2 of the
consolidated financial statements to ensure they are
compliant with the requirements of the relevant
accounting standards.

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PwC 41

Description of the key audit matter How our audit addressed the key audit matter
Forecast compliance with bank financial
covenants
As at 30 June 2020 the Group’s total
borrowings was $86.3 million. Note 12.5
to the consolidated financial statements
explains that the Group’s bank borrowings
comprise a revolving committed cash
facility and a term loan facility, with
certain financial covenants. The facility
expires on 6 December 2021.
The Group received a waiver from the
bank, prior to the expected financial
covenant breaches at the 31 December
2019 compliance date. The parties
subsequently agreed to reset the financial
covenants on 28 February 2020.
We have therefore deemed forecast
compliance with the amended financial
covenants to be a key audit matter.
The Group has assessed forecast
compliance with these financial
covenants, including the impact of the
economic uncertainty from the COVID-19
pandemic, by:
● Preparing forecasts for the Group
until the facility expiry date that have
been approved by the Board.
● Using the forecasts to calculate
financial covenant compliance at each
future covenant compliance date.
● Assessing forecasting risk by
considering the headroom available
for each covenant at each compliance
date.
The Directors have concluded they expect
to comply with the reset financial
covenants for at least the next 12 months.






We have obtained an understanding of the amended
facility agreements and relevant financial covenants.
We obtained the Group’s financial covenant
compliance forecast for the next 12 months from the
date of the approval of the consolidated financial
statements and performed the following audit
procedures:
● We assessed management’s historical forecasting
accuracy.
● We ensured the cash flow forecasts are consistent
with the base case forecast used in the impairment
testing (above).
● We assessed the reasonableness of management’s
forecasts, including the expected impact of the
economic uncertainty from the COVID-19
pandemic.
● We recalculated forecast compliance with financial
covenants at each reporting date.
● We performed sensitivity analyses on the forecast
covenant compliance calculations to assess the
level of forecasting risk at each compliance date.
We have read the disclosures in Note 12.5 to ensure
they accurately reflect our understanding of the
forecast compliance with the financial covenants.

42
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PwC 42

Description of the key audit matter How our audit addressed the key audit matter
Debtor recoverability assessment
Trade and other receivables are disclosed
in Note 12.2. The Group had $7.4 million
of gross trade receivables that were past
due at 30 June 2020, as disclosed in Note
3.1.
Management assessed the recoverability
of trade and other receivables, which
involved judgements in relation to
assessing the credit risk of the associated
customers and expected future cash flows
based on payment history, age of the debt,
specific factors related to each customer,
and risk presented by the COVID-19
pandemic.
Management concluded that it was
appropriate to recognise an impairment
provision of $2.95 million at 30 June
2020, as disclosed in Note 3.1. This
provision largely relates to specific
customer collection issues ($2.0m).
We consider this is a key audit matter due
to the size of the specific credit loss
provision, the judgement regarding the
outcome of disputed amounts and the
general economic uncertainty that may
affect the recoverability of receivables.

Our audit procedures in relation to recoverability of
trade and other receivables included the following:
● We gained an understanding of the business
processes and controls over managing overdue
trade and other receivables, and the determination
of the credit loss provision.
● We considered the historical recoverability of the
aged debt as well as the Group’s experience of bad
debts.
● We tested on a sample basis the aging of
receivables back to invoices to assess accuracy of
the aged trade receivables report used in
determining the expected credit loss.
On a sample basis, we performed the following
procedures to assess the recoverability of trade and
other receivables:
● Gained an understanding of the customer terms
and conditions.
● Validated whether any payments had been
received from customers subsequent to balance
date and confirmed these payments to bank
statements and remittance advices.
● Assessed the customer’s ability to pay through
reviewing financial information of the
counterparty.
● Through discussions with management, review of
correspondence with customers, and a review of
past payment history we assessed the
appropriateness of the year-end impairment
provision.
We gained an understanding of the circumstances
related to the specific provisions. We reviewed
correspondence with the customers and legal advice
on the Group’s position. In light of this evidence we
evaluated management’s judgement on the amount of
the provision.
We have no material matters to report.

43
TIL LOGISTICS GROUP LIMITED




PwC 43

Our audit approach
Overview

An audit is designed to obtain reasonable assurance whether the
consolidated financial statements are free from material misstatement.
Overall Group materiality: $1,148,000, which represents approximately
2% of reported earnings before interest, tax, depreciation and
amortisation, share of loss of associates, bargain on acquisition,
impairment of investment in associates, deferred consideration and
advisor costs (EBITDA) as reported in Note 5.
We chose EBITDA as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most
commonly measured by users, and is a generally accepted benchmark.
As reported above, we have three key audit matters, being:
● Goodwill impairment test
● Forecast compliance with bank financial covenants
● Debtor recoverability assessment
Each of these key audit matters is affected to varying degrees by the
economic uncertainty created by the COVID-19 pandemic. These
uncertainties have been reflected in management’s approach and our
audit procedures, as described in the key audit matters.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit, the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. As in all of our audits, we also addressed the risk of
management override of internal controls including among other matters, consideration of whether there
was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the consolidated financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates.
Information other than the consolidated financial statements and auditor’s report
The Directors are responsible for the annual report. Our opinion on the consolidated financial statements
does not cover the other information included in the annual report and we do not, and will not, express
any form of assurance conclusion on the other information. At the time of our audit, there was no other
information available to us.

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In connection with our audit of the consolidated financial statements, if other information is included in
the annual report, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work
we have performed on the other information that we obtained prior to the date of this auditor’s report, we
conclude that there is a material misstatement of this other information, we are required to report that
fact.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control as
the Directors determine is necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements, as
a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/

This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken
so that we might state those matters which we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this
report or for the opinions we have formed.

The engagement partner on the audit resulting in this independent auditor’s report is Troy Florence.
For and on behalf of:


Chartered Accountants
26 August 2020
Auckland