WISEWAY GROUP LIMITED — AGM Information 2019

Nov 20, 2019

Wiseway Group Limited AGM 2019 Presentation

Thursday, 21 November 2019

WISEWAY

1

Welcome to the Annual General Meeting of Wiseway Group Limited (ASX: WWG)

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A enda g

1. Introduction

2. Chairman’s Address

3. Chief Executive Officer’s Address

4. Formal Business

5. Items of Business:

i Financial Statements and Reports ii Remuneration Report iii Election of Michael Hughes as a Director iv Termination benefits to Mr Mark Ziirsen

6. Closing of Meeting

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Chairman’s Address Mr Michael Hughes

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FY19 Ke Milestones y

1. COMPETITIVE POSITIONING	Approved for Regulated Air Cargo Agent designation: Sydney, Melbourne, Brisbane, Perth Adelaide recently approved for RACA designation and bonded warehouse capability Business development office opened in Shanghai, China Committed to expand operations to Auckland, New Zealand
2. ADVANCING SCALE	Purchased 8,900m² property adjacent to existing Chipping Norton operation to cater for future growth Melbourne operations expanded with additional 2,400m² facility at Tullamarine Warehousing/facilities in Sydney, Melbourne, Brisbane, Adelaide and Perth, plus Darwin1
3. POSITIONED FOR GROWTH	Platform in place with no further no capital expenditure required Strong balance sheet well-positioned for future growth Inbound airfreight going strong Partnership with AZ Global with deep roots in China

1. Darwin branch is managed by an exclusive local agent

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Notes:

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Outlook

• Continued strengthening of our global logistics platform

• Delivering efficiencies in the highly fragmented national logistics industry

• Expanding our network of offshore partnerships

• Targeting growth through our strategic partnership with AZ Global

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Chief Executive Officer’s Address Mr Roger Tong

Stron FY19 Performance g

• Strong revenue growth, up 15% and in line with the Company’s revised guidance

• Gross margin up 280 basis points: momentum in perishables and imports

• EBITDA of $2.8 million

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Revenue ($ million)
+15%
FY19
FY18
$94.5
$82.2
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Gross margin (%) +280 bps

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FY19
FY18
22.0%
19.2%
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Note: FY19 Financials are Pro-forma to exclude IPO associated costs

Stron Revenue Growth Across All Divisions g

• Driven by outbound air freight volumes of approximately 71,000 tonnes

• Designated as Regulated Air Cargo Agent enables scanning and examination of outbound air cargo improving margins

Growth in revenue by division

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Road
+27%
Transport
Airfreight
+11%
Dry Cargo
Perishables +217%
Imports +317%
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Balance Sheet Stren th Su orts Future Growth O ortunities g pp pp

• IPO raised $20 million capital

• 30[th] June 2019 - total assets of $46.8 million (vs $17.9 million in pcp)

• 30[th] June 2019 - total liabilities of $24.3 million (vs $16.1 million in pcp)

• 30[th] June 2019 - total equity of $22.6 million

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Investment Delivers Regional Logistics Capability

AUSTRALIA

• Achieved RACA accreditation

• Added bonded warehouse capabilities

• Expansion of Chipping Norton property

• Increase warehouse capacity in Adelaide, Melbourne and Perth

Regional presence of warehouses and facilities:

• 8 warehouses and facilities in all major cities

• 2,500 m[2] facility in Auckland

• Over 100 fleet including roller trucks, B-double, semi-trailer, container and rigid trucks

• Headcount ~130

• Installation of security and x-ray machines across all warehouses.

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Darwin [1]
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R = RACA compliant C = customs clearance

• Increasing the fleet of trucks

Brisbane

NEW ZEALAND

1 warehouse facility R , C

• Achieved RACA and MPI accreditation

Auckland

• Designated Customs Controlled Area (CCA)

• IATA Accredited

CHINA

• Shanghai office established

Perth 1 warehouse facility R

Sydney

Sydney 1 warehouse facility 3 warehouse facilities R , C R , C

Adelaide

Melbourne

1 warehouse 2 warehouse facility facilities R , C R , C

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Notes:

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1. Darwin branch is managed by an exclusive local agent

Income Diversification

Wiseway Group Limited	Wiseway Group Limited	Wiseway Group Limited	Wiseway Group Limited	Wiseway Group Limited	Wiseway Group Limited
Export			Import	Domestic transport	GSA/CSA	Regional
Dry cargo (air freight)	Perishables (air freight)	Sea freight	General cargo & e-commerce	Airtruck	Airnex	New Zealand	China
Janice Ma	Scott Higgins	Song Yi	Nick Woolf	James Wu	Joseph Wanees	Traci Cox	Paige Qi
• Platforms • Suppliers • Parcel consolidators	• Seasonal fruit • Seafood • Meat • Fresh milk	• Milk powder • Wine export	• General cargo imports clearance and delivery • E-commerce parcel imports and distribution	• Interstate and road transport business • Servicing wholesalers, Wiseway airfreight and airlines	• Cargo sales for airlines • Managing more than 70 flights per week from Sydney, Melbourne, Brisbane, Perth, Darwin, Cairns and Auckland • Servicing third- party freight forwarders	• IATA accredited • Operations and Business team built up	• Assisting business from China to Australia

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Geographical Operations Leadership Team

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China
Paige Qi Darwin Cairns
Allen Lim Lily Zhang
Brisbane
Owen Hu
James Wu
Auckland
Traci Cox
Perth Sydney
Simon Zhang
Allen Santos Adelaide
Michael Luan
Annie Yang
Melbourne
Roy Chen
Yuan Chen
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Ali nment of Em lo ee and Shareholders Interest g p y

• Implementation of formalised policy and procedures company-wide

• Formalised performance review processes

• Role specific KPIs

• Bonus Incentives – linking personal performance and company performance

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Current Tradin Conditions g

Challenging macroeconomic conditions driven by geo-political events leading to concerns in global growth outlook

Outbound	Outbound	Outbound	Inbound
Dry cargo (air freight)	Perishables (air freight)	Sea freight	E-commerce
 Overall softness in volumes of infant milk formula exports from Australia to China  Traditionally, the dry cargo export peak season is from November to January  Volume shift from airfreight to lower cost sea freight	 Sydney fumigation facilities commenced operations in November  Expectation for increased overall perishable sales for the 2020 financial year  Currently in peak harvest season (November-March)	Sales for the year performing satisfactorily, albeit it off a low base	 Volumes performing satisfactorily with benefits of our bonded warehouse facilities coming through

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Wisewa ’s Business Strate y gy

• Maintaining core growth

• Accelerate new growth divisions

• Next two years – diversify income stream

• The main focus now is on profitability and cost control

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This document is private, confidential and not for distribution. The contents and use of contents by the recipient of this document is subject to the disclaimer on page 2.

Stron Com etitive Positionin For The Next Sta e Of Growth g p g; g

Wiseway is strategically positioned as an Asia-focused logistics specialist, creating defensible market with a high barrier to entry

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Strategic relationships with airlines

• Long-standing relationships with major

• Asia- international airlines, particularly on

• focused Australia to Asia routes

• specialist  Won the China Southern Airlines Award for provider the ‘Top Freight Forwarder’

• Wiseway has been appointed GSA (exclusive) and CSA (non-exclusive) for major Chinese airlines

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Long-standing customer relationships

• Wiseway has supported the growth of many suppliers, distributors and parcel express companies from infancy to established market players

• Wiseway has numerous established customers, who have been using its services for more than five years

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Unique understanding of market needs

• Wiseway has a unique understanding of the dry and perishable cargo demand from the Asia Market, the dynamic of import Customs policies and the cross-border eCommerce ecology

Scale advantage

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Asia - Pacific footprint

• Presence in eight capital cities

• Can attract large suppliers, distributors and parcel express companies who require multicity services

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More competitive freight rates

• 70% market share of outbound freight to China enables competitive freight rates

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One-stop shop

• Provides services in export air freight, perishables, sea freight, customs clearance, bonded warehousing, import e- commerce and domestic transportation

• RACA designated and permitted

Defensible and growing market position with high barriers to entry

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Formal Business

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This document is private, confidential and not for distribution. The contents and use of contents by the recipient of this document is subject to the disclaimer on page 2.

Shareholder Votin Cards g

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Shareholder Voting Non-Voting Visitor Card
Card Shareholder Card
Entitled to vote and Not entitled to vote, Not entitled to vote
address the meeting but may address the or address the
meeting meeting
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This document is private, confidential and not for distribution. The contents and use of contents by the recipient of this document is subject to the disclaimer on page 2.

Prox Votes y

• To be valid, proxies must have been received by Link Market Services at least 48 hours prior to the meeting

• Valid proxies will be displayed prior to the resolution being considered by the meeting

• All undirected proxies to the Chairman will be voted in favour of each resolution

• All resolutions will be decided by poll

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Items of Business

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Item 1: FINANCIAL STATEMENTS AND REPORTS

To receive and consider the Financial Report, the Directors’ Report and the Auditor’s Report for the year ended 30 June 2019.

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Item 2: REMUNERATION REPORT

To consider and, if thought fit, to pass the following resolution as a non-binding resolution:

“To adopt the Remuneration Report, as set out in the Director’s Report for the Company and its controlled entities for the financial year ended 30 June 2019.”

Notes:

I. In accordance with section 250R of the Corporations Act 2001 (Cth) , the vote on this resolution will be advisory only and will not bind the Directors or the Company. II. A voting exclusion statement applies to this resolution (see Explanatory Notes of details).

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Item 3: ELECTION OF MICHAEL HUGHES

To consider and if thought fit to pass the following motion as an ordinary resolution:

“That Michael Hughes, who retires in accordance with clause 20.6 of the Company’s Constitution, be elected a Director of the Com an .” p y

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Item 4: TERMINATION BENEFITS OF MARK ZIIRSEN

To consider and if thought fit to pass the following motion as an ordinary resolution:

“That, for the purposes of section 200E of the Corporations Act 2001 (Cth) and for all other purposes, the shareholders of the Company approve any and all Termination Benefits which may be given by Wiseway Group Limited to Mr Mark Ziirsen in connection with Mr Ziirsen’s cessation of employment with Wiseway Group Limited, as described in more detail in the ex lanator statement rovided to shareholders.” p y p

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Wiseway Group Limited AGM 2019 Presentation

Thursday, 21 November 2019

WISEWAY

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