WISEWAY GROUP LIMITED — AGM Information 2020

Nov 23, 2020

AGM 2020 Presentation 24 November 2020

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1
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Agenda

2. Chairman’s Address

2. Chairman’s Address	3
3. Chief Executive Officer’s Address	6

4. Formal Business

4. Formal Business	15
5. Items of Business:	18

• i. Financial Statements and Reports ii. Remuneration Report iii. Election of Lin Xu

• iv. Ratification of Appointment of Auditor

6. Closing of Meeting

Company/investor enquiries: admin@wiseway.com.au Media/investor enquiries: +61 (0) 435 570 690 Wiseway@symbolstrategic.com.au

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Chairman’s Address Mr Michael Hughes

3

FY20 ke milestones y

1. Established logistics platform for growth	✓Strong cash flow generation enabled Wiseway to deliver a profit before tax of $1.7 million for the second half of FY20. ✓Achieved national bonded depot footprint with fumigation and cold-treatment facilities. ✓Accredited for fruit exports in China to enable Australia-Asia perishables export. ✓New businesses revenue portion of the total revenue has grown four-fold since the IPO.
2. Advancing scale	✓Expanded operations and reach to Auckland, New Zealand. ✓Major new customer wins, including large importers and exporters in Australia and New Zealand. ✓75,342 tonnes of export-import cargo shipped to 100 destinations in FY20.
3. COVID-19: Delivering essential logistics services	✓Safety is paramount: implemented operational ‘COVID-19 safe’ procedures to ensure safety and welfare of employees. ✓Delivering essential logistics services throughout the pandemic. ✓Secured cargo space by chartering flights to continue servicing demand for air freight. ✓Leveraging of personal relationships with key airlines, shipping lines and local trucking companies.

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4

Outlook

• COVID-19: supporting our employees, customers, the broader community and international trade.

• Wiseway will continue to monitor, adapt and respond to demand for logistics services in the prevailing operating environment.

• Leverage relations with key distribution partners.

• Building a global logistics platform in key growth markets.

• Target growth via major e-commerce platforms, including through partnership with strategic shareholder AZ Global, and new export customers.

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Chief Executive Officer’s Address Mr Roger Tong

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Benefits of revenue diversification strate flow throu h in a ear of COVID-19 gy g y

• Revenue of $102.6 million, up 9% from $94.5 million, driven by Wiseway’s new service offerings.

• Gross profit of $27.9 million, up 34% from $20.8 million, reflecting an increase in gross margin.

• EBITDA of $5.0 million increased from $0.1 million in FY19.

• Net operating cash flow of $3.8 million, step-change from -$3.1 million in FY19.

• Free cash flow of $4.6 million in 2H FY20 represents a FCF per share of 3.3 cents up from -2.8 cents in 1H FY20.

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Revenue ($ million)
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+9%
FY20
FY19
102.6
94.50
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Gross margin (%) EBITDA ($ million) Net operating cash
flow ($ million)
+34%
FY20
3.8
FY20
FY20
FY19 27.2%
5.0
22.0%
FY19
FY19
0.10
(3.1)
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Sales rowth driven b diversification and new services g y

Growth in revenue from diversification and new services

• New division sales more than doubled to $22.8 million in FY20.

• Growth in new business divisions, particularly in the perishables division driven by an increasing customer base.

• Higher freight volumes of 28,000 tonnes, up by 218% or 19,000 tonnes, largely from stronger sea freight.

New customers

• Major new customer wins, including large Australian exporters, due to the business maintaining its freight capacity in a tightening market.

Freight volume (tonnes, FY20 vs pcp)

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Imports +343%
3,660 tonnes
Sea freight 18,590 tonnes +241%
Perishables 5,702 tonnes +126%
Air freight 47,390 tonnes -31%
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Revenue streams from new businesses ($ million)

Strong start into FY21

• Q1 FY21: unaudited revenue of $31.0 million, up 53% or $10.7 million on Q1 FY20.

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7
6 1H20: 2H20: 1Q21: $10.4m
$8.5m $14.3m unaudited
5
4
3
2
1
0
1H20 2H20 Q1 FY21
Perishables Imports Sea freight Regional (NZ & China) Airtruck Airnex
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Ste -chan e in net o eratin cash flow su orts future rowth o ortunities p g p g pp g pp

Financial position as at 30 June 2020

• Cash balance of $8.6 million (15 November 2020: $10.5 million).

• NTA per share of 16.9 cents.

Capital management

• Prudent financial debt levels at 53% (as at 30 June 2020).

• Strong financial position going into FY21:

• • Due to strong cash flow, Wiseway repaid a $5 million secured bank loan on 2 July 2020.

• Existing bank loan available of $5 million for redraw (15 November 2020).

• Positive working relationships with lenders, supporting ongoing development.

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Business milestones represent a step-change in scale and reach

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2005
-
FY19
2017
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FY20
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Founded the business

Established platform for growth

IPO & expansion of capabilities

• ✓ Wiseway founded ✓ Sydney warehouse

• ✓ Achieved national bonded warehouse footprint with fumigation and coldtreatment facilities to support

• ✓ IPO on 31 October 2018 raised $20 million

• ✓ 100+ fleet including roller trucks, B- Double, semi-trailer, container and rigid trucks

• Wiseway’s perishables business division

• ✓ Customs and quarantine depot

• ✓ Melbourne warehouse

• ✓ Australia-Asia perishables export

• ✓ Accredited Regulated Air Cargo Agent

✓ Dairy export approved ✓ Brisbane warehouse ✓ GSA agreements ✓ Adelaide and Perth warehouses

• ✓ Strategic partnerships with several airlines to provide interstate trucking services

• ✓ Accredited for fruit exports from Australia to Asia

  • ✓ Expanded to New Zealand with Auckland warehouse facility

  • ✓ Leveraging of relationships with airlines, shipping lines and local trucking companies, to offer an integrated service package

  • ✓ Offering a holistic and integrated service package during COVID-19

• ✓ Customs clearance warehouses/facilities Australia-wide

• ✓ Darwin warehouse ¹

• ✓ Strategic partnership with airlines to provide interstate trucking services

• ✓ Top air freight forwarder in Australiathe Asia-Pacific region

• ✓ Expansion to New Zealand

• ✓ Shanghai office established ✓ Top 3 outbound air freight logistics provider in Australia

• ✓ Benefits of revenue diversification strategy flow through

FY21

Step-change in growth of new services

• ✓ Essential service provider during the COVID-19 pandemic

• ✓ Demand for logistics services remains high

• ✓ New customers

• ✓ Disruption to global supply chain management fosters innovation

• ✓ Q1 FY21 unaudited revenue of $31 million

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10

Note:

1. Darwin branch is managed by an exclusive local agent

Wiseway: Top Australia-Asia air freight forwarder and provider of integrated logistics services

ANZ footprint:

• 9 accredited Regulated Air Cargo Agent locations in Australia and New Zealand

• Customs-bonded warehouse capability

• Accreditation to export perishables to China

Growth areas:

• Perishables (fresh produce, food, wine)

• Airtruck – interstate road transportations ‘food movers’

• Imports

• Sea freight export

• Airnex – cargo sales agent

Customers:

• Diversified business shipping to 100 destinations

Governance:

• Formalised performance review processes

• Role-specific KPIs

• Bonus Incentives – linking personal performance and company performance

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75,342 tonnes of
Darwin [1] cargo in FY20
Brisbane
1 warehouse facility
Shanghai
Perth Wiseway office
1 warehouse facility Sydney Auckland
Adelaide 3 warehouse 1 warehouse
1 warehouse facilities facility
facility Melbourne
2 warehouse
facilities
Full-time employees: ~ 130
100 + fleet
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Note:

1. Darwin branch is managed by an exclusive local agent

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Tradin conditions g

• Restrictions on international and interstate travelling have supported demand for freight services.

• Asia international routes opening up.

• Strong demand in e-commerce and fresh produce supported by high trade activity and transaction volumes from China.

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Asiafocused specialist provider

Scale advantage

Business stren th g

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Strategic relationships with airlines

• ✓ Long-standing relationships with major international airlines, particularly on Australia to Asia routes

• ✓ Wiseway has been appointed GSA (exclusive) and CSA (non-exclusive) for major Asian 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

• ✓ New customers, particularly the larger Australian importers and exporters

• ✓

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Unique service provider

Wiseway has a unique understanding of cross-border e-commerce market and perishables regulation

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Trans-Tasman footprint

Competitive freight rates

One-stop shop logistics provider

✓ Presence in six Australian capital cities and Auckland

• ✓ Can attract large suppliers, distributors and parcel express companies who require multi-city services

• ✓ Top Australia-Asia air freight forwarder

• ✓ Top three Australia-worldwide air freight forwarder

• ✓ Services in export air freight, sea freight, perishables, customs clearance, warehousing, import e-commerce and domestic transportation

• ✓ RACA designated and permitted

• ✓ Customs bonded warehouse Australia-wide and in New Zealand

Defensible and growing market position with high barriers to entry

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Wisewa is strate icall ositioned for lon -term rowth y g y p g g

Wiseway’s growth strategy is focused on three key components

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1 2 3
Well-positioned for recovery
Maintain core growth Accelerate new growth
from the pandemic
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• Leveraging partnerships in the AsiaPacific region

• Continue to offer customer-first integrated service offering

• Established outbound perishables and bounded warehouses

• Investment in digital processes and automation

• •

• Leverage its Trans-Tasman presence to Operating platform for e-commerce deepen its relationships with Asian e- parcels from the greater Asian region commerce platforms and suppliers via bonded warehouse facilities across Australia

• Continue strong organic growth from expanded warehouses and facilities

• RACA designated and fully accredited

• International expansion in the AsiaPacific region by leveraging extensive expertise in air freight and sea freight

• Opened an office in Shanghai and registered a fully owned subsidiary Wiseway Shanghai

• Expanded operations in Auckland, New Zealand

• Essential service provider during the pandemic

Successful strategy of growth

The scale and breadth of Wiseway’s business will enable it to take advantage of emerging trends and growing demand for logistics services

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Formal business

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 or
address the meeting but may address the address the meeting
meeting
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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 on a show of hands.

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Items of business

18

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 2020.

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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 Directors’ Report for the Company and its controlled entities for the financial year ended 30 June 2020.”

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 LIN XU

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

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

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Item 4: RATIFICTION OF APPOINTMENT OF AUDITOR

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

“That, in accordance with section 327B(1)(a) of the Corporations Act 2001 (Cth) and for all other purposes, KPMG having been nominated by a shareholder and consented in writing to act in the capacity of Auditor, be appointed as the Auditor of Wiseway Grou Limited.” p

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Disclaimer

This presentation contains summary information about Wiseway Group Limited (Wiseway) and its subsidiaries and their activities. The information in this presentation does not purport to be complete. It should be read in conjunction with Wiseway’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

The information contained in this presentation is not investment or financial product advice and has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek independent professional advice appropriate to their jurisdiction and circumstances.

To the maximum extent permitted by law, no responsibility for any loss arising in any way from anyone acting or refraining from acting as a result of this information is accepted by Wiseway, any of its related bodies corporate or its directors, officers, employees, professional advisers and agents (Related Parties). No representation or warranty, express or implied, is made by any person, including Wiseway and its Related Parties, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation.

An investment in Wiseway securities is subject to investment and other known and unknown risks, some of which are beyond the control of Wiseway or its directors. Wiseway does not guarantee any particular rate of return or the performance of Wiseway securities.

Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. This presentation contains certain forward ‐ looking statements with respect to the financial condition, results of operations and business of Wiseway and associated entities of Wiseway and certain plans and objectives of the management of Wiseway. Forward ‐ looking statements can be identified by the use of forward ‐ looking terminology, including, the terms “believes”, “estimates”, “anticipates”, “expects”, “predicts”, “intends”, “plans”, “goals”, “targets”, “aims”, “outlook”, “guidance”, “forecasts”, “may” or “will”, and similar expressions. These forward ‐ looking statements include all matters that are not historical facts. Such forward ‐ looking statements involve known and unknown risks, uncertainties and other factors which because of their nature may cause the actual results or ‐ performance of Wiseway to be materially different from the results or performance expressed or implied by such forward looking statements.

Such forward ‐ looking statements are based on numerous assumptions regarding Wiseway’s present and future business strategies and the political, regulatory and economic environment in which Wiseway will operate in the future, which may not be reasonable, and are not guarantees or predictions of future performance. No representation or warranty is made that any of these statements or forecasts (express or implied) will come to pass or that any forecast result will be achieved. Forward ‐ looking statements speak only as at the date of this presentation and to the maximum extent permitted by law, Wiseway and its Related Parties disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, any assumptions or expectations set out in this presentation).

All figures in this presentation are A$ unless stated otherwise and all market shares are estimates only. A number of figures, amounts, percentages, estimates, calculations of value and fractions are subject to the effect of rounding. Accordingly, the actual calculations of these figures may differ from figures set out in this presentation.

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