Investor Newsletter December 2020

1TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2020
EXECUTIVE UPDATE
Well, what a year it has been! We are now a few weeks from the end
of 2020 and we are looking forward to a fresh start in 2021. While
COVID-19 will continue to impact countries, businesses and people
around the world for some time yet, there is light at the tunnel
with vaccines being rolled out from early next year and economists
forecasting a global upturn in 2021.
The end of the year provides an opportunity to reflect on the lessons the
pandemic has taught us:
• The importance of health, safety and wellbeing of our people,
not just out on the roads, but in all our workplaces.
• The advantages of being flexible and agile, able to adapt
quickly to new ways and places of working.
• The benefits of technology to make our business more efficient
and effective.
• That working together, we create a fantastic team.
We are seeing green shoots in the New Zealand economy, with a number
of sectors performing well. Residential construction and infrastructure
are booming, agriculture has remained relatively untouched and fuel
volumes are increasing – these are all big sales areas for us. Pressure on
coastal shipping and capacity at ports around New Zealand is increasing
the demand for road transport. With a Labour government in power and
the Green Party alongside them, there will be potentially more windfarm
projects coming on stream, an area where we have specialist expertise.
However, there are still concerns around labour force restrictions,
the impact of the increase in the minimum wage on SMEs, restrained
business confidence and caution around investment, and the potential
impact of any further lockdowns.
We have identified a number of opportunities for our business -
COVID-19-related Government fiscal stimulus is likely to support
increasing freight volumes; a global trend of businesses using 3rd 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 we will look to build on our reputation and expertise
to grow our market share.
We have a detailed strategic plan in place and our main focus remains
on growing our existing businesses and improving margins. We will also
look at acquisition opportunities that arise but, having rejected one such
proposal during the year, will continue to be disciplined in whatever we
do in this space.
Alan Pearson, Chief Executive Officer
IN THIS ISSUE
WINNER! GLOBAL FLEET
CHAMPION AWARD
THE START OF THE JOURNEY
FOR THE TUNNEL BORING
MACHINE
OFFERING THE BEST FREIGHT
SOLUTION FOR CUSTOMERS
EXPANDED OPERATIONS FOR
SPECIALIST LIFTING
AND TRANSPORT GROUP
NEW ISO TANKS FOR LIQUID
LOGISTICS
MAKING MENTAL WELLBEING
A PRIORITY
HOW REDUCED IDLING
IMPROVES FUEL EFFICIENCY
POWERING UP THE $3M
OTAGO RADAR
CONTACT US
330 Devon Street East
Private Bag 2040
New Plymouth 4342
New Zealand
Tel: 06 755 9990
Email: investorenquiry@til.kiwi
SHAREHOLDER NEWS
DECEMBER 2020

2TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2020
The four main priorities for the year are:
• The continuing improvement of the Freight
division, with a focus on lifting margins
• Organic growth of our existing businesses
• Expanding the International offer and services
• Building stronger connections and synergies
across the Group and promoting our end to
end customer solution.
You can read about some of our work and projects
in this newsletter.
We are pleased with our company’s progress to
date, with our first quarter results ahead of the
same time last year due, in part, to pent up demand
and seasonality as well as a positive recovery since
lockdown.
Based on this, and dependent on the timing of a
large windfarm project which is currently expected
to be undertaken in the current financial year,
the Board has confirmed its earlier guidance that
EBITDA for FY21 is expected to be at least that of
the FY20 post IFRS-16 result of $57.4m.
We hope you enjoy reading more about our business
in this newsletter. On behalf of the Board and
management, I wish all our shareholders a safe and
happy summer break. I’m sure you will see many of
our trucks and people out on the roads as we keep
the goods moving over the summer period.
Best regards
Alan Pearson
Chief Executive Officer
WINNER! GLOBAL FLEET
CHAMPION AWARD
The Global Fleet Champion Awards
celebrate the achievements of
organisations and individuals working to
reduce road crashes involving at-work
drivers.
TIL Logistics Group was proud to be
announced as the winner of the Company
Driver Safety Award. This recognises
organisations that have implemented
initiatives that effectively enable drivers
to be safe. The judges commended TIL
on its use of a combination of driver
training and technology, with tailored
training and interventions based on
data insights, the use of heavy vehicle
simulator training and the fact that all
drivers are put through the training.
CEO of TIL, Alan Pearson, accepted the
award on behalf of TIL’s 1700 employees,
saying “Driver safety is a journey of
continuing improvement. I am convinced
we are on the right path to get where we
want to be.”
TIL uses Autosense’s Guardian
technology and simulator training as part
of its health and safety programme. You
can watch a video here of Greg Murphy
and Dallas Vince (TIL Freight Division
CEO) discussing how the company is
using this technology.
¢
ANNUAL MEETING
We held our annual shareholder’ meeting in
New Plymouth on 28 October 2020 and were
pleased to welcome a number of shareholders.
We also livestreamed the meeting with many
shareholders watching online. All resolutions
were passed at the meeting, including the
re-election of Danny Chan as a director.

3TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2020
THE START OF THE JOURNEY FOR THE
TUNNEL BORING MACHINE
OFFERING THE BEST FREIGHT SOLUTION FOR CUSTOMERS
Late in October, the Tunnel Boring Machine (TBM) for the City Rail Link Projects arrived in the Port of
Auckland. The machine was broken down into 28 loads of breakbulk cargo and 8 containers, with the
largest and heaviest load being the Main Cutter Head which weighed 145 tonne. The cargo was hauled off
the Port by Specialist Lifting and Transport over four days and nights to the site in Mt Eden.
Once on site, the heaviest pieces were offloaded and lowered down onto steel support stools using the
trailer hydraulics. The TBM will now be reassembled and tested, with tunnelling due to start in April 2021.
The TBM will work 24/7 and at peak operation, it can travel 32 metres a day. It is expected to take nine
months to excavate the first tunnel.
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With the continuing capacity pressure on coastal shipping
and ports, demand for land-based freight transport is
escalating. TIL is expanding its network
to rail, providing additional capacity and solutions to our
customers’ increased volumes and growing needs.
The TIL sales team works with businesses to deliver the
optimal freight solution. Rail is an important part of this
offer, providing transport between main hubs with TIL’s
trucks then covering the final miles to the drop off point.
In the last two months alone, more than 439,000kgs
of freight has been loaded and railed from Auckland to
destinations around New Zealand, including 30 wagons to
Christchurch in just the last two weeks. This multi-modal
approach is also assisting with carbon reduction, by moving
more freight with less trucks.
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4TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2020
Our heavy haulage service has a strong
position in New Zealand and on some jobs
we are the only transporter with the trucks,
machinery, personnel and skills to move
extremely large and heavy items.
The Auckland construction market remains busier than other
regions, and we are benefitting from the acquisition of the
assets of Fletcher Construction’s Asset Hub In July 2020,
which we added to the Machinery Movers operation.
At the same time, we also entered a long term exclusive
contract to look after the transport operations for Fletcher
Construction including the Brian Perry Civil operation in the
Auckland and Waikato area. This is a site on the end of the
Southern Motorway where Fletchers keep all their heavy
equipment, such as cranes. They transport this equipment
to construction sites around the country and this is the work
that we are now doing for them.
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EXPANDED OPERATIONS FOR SPECIALIST LIFTING AND
TRANSPORT GROUP
NEW ISO TANKS FOR LIQUID LOGISTICS
Liquid logistics is one of TIL International’s four brands and an important part of the business.
It’s specialty is the safe international transportation of liquid cargo with a full complement of
chemical and food-grade ISO Tank solutions. This includes wine, beer and spirits, oils, juices,
milk, fructose and other food materials. Four new ISO tanks have recently been added, to
meet demand in the domestic market.
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5TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2020
Truck drivers transport 92 per
cent of New Zealand’s total
freight by weight, making
their contribution vital to the
wider New Zealand economy.
Long hours, loneliness,
lack of exercise and a poor
diet are among the factors
contributing to mental health
issues for New Zealand’s more
than 26,000 truck drivers. On
top of fatigue and poor sleep
patterns, stresses to deliver
on time can also impact driver
mental health.
This year in particular has been tough on the transport
industry with changing pandemic levels, disrupted
schedules and access to ports all adding stresses for
drivers with deadlines to meet.
To remind them to look after themselves during mental
health awareness week, the Road Safety Truck team
took to the road to start the conversation. One of those
they spoke to was Pacific Fuel Haul driver, Jess Johns.
Jess has been driving trucks for six and a half years –
the job has taken her all over New Zealand. She is on
the road up to 12 hours a day, and says drivers are now
talking more about their mental health, particularly the
younger ones.
Being fit is important for her and she says it has feeling
better physically has helped her mental health. While
by nature the job is mostly sedentary, whenever she is
out of the cab after a delivery, she makes sure she does
plenty of stretching and moving around.
There are more options for grabbing a healthy snack
on the road nowadays too, so drivers were no longer
forced into a diet of pies and caffeine. She has recently
started on the keto diet and says lots of other truck
drivers are getting into healthier eating as well.
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MAKING MENTAL WELLBEING A PRIORITY

6TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2020
TIL Freight has partnered
with EROAD on its driver
technology and is now
benefiting with further
insights into driver behaviour
and performance.
Idling is a leading factor in fuel waste. An EROAD study
has found that, on average, 7 percent of customers’ fuel
consumption is burned in non-productive vehicle idling
and their reports can identify instances where fuel has
been wasted through excessive or unnecessary idling
or a poorly tuned vehicle.
The Christchurch branch identified a high rate of idling
in its container operations especially amongst its
swing lift fleet. This is where a container is lifted onto
the trailer or skeleton trailer using a movable lifting
arm. Until the late 2000s, most swinglifts relied on the
vehicle to power them, requiring the driver to leave
the ignition on. Now, nearly all have their own auxiliary
motor, but drivers who had worked for TIL since the
earlier days were still in the habit of leaving their trucks
idling.
Following an inclusive consultation process which
included changing the swing lift standard operating
procedures, Toolbox info sheets and a ‘leaderboard’
in the breakroom, the Christchurch container fleet
delivered an across the board improvement, with a
68% drop in fleet idling and a 48% drop in overspeed’s
leading to an overall reduction in fuel spend of 37%
between July and September 2020.
This approach is now being replicated across TIL’s
other branches, demonstrating yet another proactive
approach to fleet management.
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ENVIRONMENT
How reduced idling improves fuel efficiency
Pictured – Mike Nihoniho, the Christchurch
Container Group’s top rated driver.

7TIL LOGISTICS GROUP SHAREHOLDER NEWS DECEMBER 2020
POWERING UP THE $3M OTAGO RADAR
The people of Otago can now access real-time radar data
through the MetService platforms, thanks to the installation
of a new $3 million weather radar.
TIL Freight played
an important role,
overseeing the critical
work of unloading,
storing and coordination
of the transport of the
components to the site on
top of Lamb Hill, located
near Dunedin. Although
originally planned for
earlier in the year, the
project was delayed by
the COVID shutdown,
with the containers having
to be stored for several
months longer than
anticipated.
The delivery of the $3m radar was completed in November, with
the radar fully commissioned on 10 December 2020.
The facility is the 10th in the New Zealand network of weather
radars owned and operated by MetService, and uses the latest
dual polarisation technology which can identify different types of
precipitation - be it rain, hail or snow.
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“The work of the TIL Freight team
storing our radar containers and
buildings, while also coordinating
our freight logistics was of immense
benefit to our project team at
MetService and provided us with great
confidence throughout the process.
Our team have really valued the fact
that you’ve gone the extra mile to
ensure this project was delivered.”
-
Keith Hilligan Acting Chief Executive, MetService
Photos courtesy of MetService