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9 October 2014 CTI Logistics Limited is pleased to attach an updated copy of its corporate presentation used in the promotion of the Company’s activities to investors and other interested parties. David Mellor Company Secretary ABN 69 008 778 925 1 Drummond Place West Perth WA 6005 Postal Address PO Box 400 West Perth Western Australia 6872 Telephone (08) 9422 1100 Facsimile (08) 9227 8000 Email [email protected] Web www.ctilogistics.com For personal use only

For personal use only - ASX · Intrastate Road Freight Freight Forwarding Intrastate Road Freight Interstate Freight ... Microsoft PowerPoint - CTI Market Presentation Oct 2014-v2

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Page 1: For personal use only - ASX · Intrastate Road Freight Freight Forwarding Intrastate Road Freight Interstate Freight ... Microsoft PowerPoint - CTI Market Presentation Oct 2014-v2

9 October 2014 CTI Logistics Limited is pleased to attach an updated copy of its corporate presentation used in the promotion of the Company’s activities to investors and other interested parties. David Mellor Company Secretary

ABN 69 008 778 925 1 Drummond Place West Perth WA 6005 Postal Address PO Box 400 West Perth Western Australia 6872 Telephone (08) 9422 1100 Facsimile (08) 9227 8000 Email [email protected] Web www.ctilogistics.com

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Market Presentation – October 2014For

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Overview

CTI Logistics 2014 Full‐Year Results | 2Overview

CTI is a Western Australian provider of transport, logistics and security services

The CTI Logistics Group commenced operations in 1972 and has been a public listed company for 27 years

CTI services in excess of 5,500 customers ranging from small local businesses through to ASX 100 and subsidiaries of large overseas listed companies

CTI has more than 670 vehicles on the road ranging from bicycles through to triple road train combinations

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Principal Activities

CTI Logistics 2014 Full‐Year Results | 3Principal Activities

Transport Logistics On Demand Couriers Parcel Distribution On Demand Taxi Trucks Dedicated Fleet Management Container Transport  Heavy Haulage Intrastate Road Freight

Freight Forwarding Intrastate Road Freight Interstate Freight  International Freight

Supply Chain LogisticsWarehousing and Distribution Third Party and Overflow Warehousing Contracted Distribution Centre 

Services Pick and Pack Handling  Bulk Product Storage 

Minerals and Energy Logistics Supply Base Warehousing and Asset 

Management Labour Hire Plant and Equipment Hire Quarantine Equipment Cleaning and 

Fumigation Plant and Equipment Preservation 

Shrink Wrapping

Temperature Controlled Storage and Distribution Wine Storage and Stock Management Food Product Storage Temperature Controlled Delivery

Document Storage and Destruction Secure Storage of Confidential 

Documents and Computer Media  Cataloguing of Documents Supervised Destruction of 

Confidential Documents

OtherSecurity Installation and servicing of 

monitored alarms for residential and commercial markets

Installation and servicing of CCTV and access control products for residential and commercial markets

24/7 control room monitoring of alarms for own clients and third party security businesses

Manufacturing Manufacturing of PVC injection 

moulded plumbing fittingsFor

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Key Financials 

CTI Logistics 2014 Full‐Year Results | 4Key Financials 

Revenue

NPAT

EPS 

DPS

140,693,568

9,835,919

15.59

8.00

126,668,709

9,823,494

16.56

7.50

June 2014

Up 11.1%

Up 0.1%

Down 5.9%

Up 6.7%

Up 9.7%EBITDA 20,730,755 18,897,943

June 2013

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FY14 Operational Highlights 

CTI Logistics 2014 Full‐Year Results | 5FY14 Operational Highlights 

Completed extension of Hazelmere warehousing and distribution facility (an additional 4,000 sqm) which is now fully occupied and generating positive returns

Expanded warehousing footprint by an additional 9,000 sqm (Bassendean leased facility) 

Acquired an additional 30,000 sqm of adjacent land at Hazelmere for future growth

Secured warehousing and distribution agreement for global tyre manufacturer Hankook Tyres 

Secured warehousing agreement for global health supplements group Isagenix

Secured warehousing and distribution agreement for UK based online wine retailer Naked Wines

Secured distribution agreement for global consumer products group Bunzl

Secured distribution agreement for Orora Packaging Australia

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Financials by Segment 

CTI Logistics 2014 Full‐Year Results | 6Financials by Segment 

June 2014 June 2013

Revenue

Transport 58% $73.0M

Logistics 33% $41.9M

Property 1% $0.8M

Other 8% $10.2M

Transport 56% $79.4M

Logistics 35% $48.8M

Property 1% $0.6M

Other 8% $11.2M

Up 11.1%Up 11.1%

• Completion of second stage of Hazelmere facility

• Acquired land adjacent to Hazelmere site for $9.4m

• Decline in resources‐related activities

• Full year of revenue from first stage of Hazelmere facility

• Plastics manufacturing increased sales prices

• Security in line with the previous year

• Includes a full year of regional road freight network revenue 

• Courier volumes declined from previous year• Parcel and truck revenue continued to grow 

organically

• Fifth consecutive year of double digit growth

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Financials by Segment 

CTI Logistics 2014 Full‐Year Results | 7Financials by Segment 

June 2014

Net Profit before tax

Down 5.1%Down 5.1%Transport 30% $4.7M

Logistics 37% $5.7M

Property 28% $4.4M

Other5% $0.9M

Transport 52% $8.5M

Logistics 36% $6.0M

Property 12% $2.0M

Other 0% $0.0M

• Profit on sale of investment property of $2.9m offset by an impairment of $1.6m in respect of two other properties 

• Decline in resource‐related activities with higher mix of equipment and labour hire

• Costs incurred in respect of underutilised sites earlier in the year

• Plastics manufacturing reduced production costs

• Increased equipment hire to other divisions

• Additional $1.98m of cost incurred to establish regional road freight network

• Increased pressure on margins experienced across all businesses

June 2013

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Corporate Dashboard

CTI Logistics 2014 Full‐Year Results | 8Corporate Dashboard 

Corporate Information

ASX Code CLX

Shares on Issue 65.3M

Options on Issue Nil

Share Price at 6/10/2014 $1.80

Market Capitalisation at 6/10/2014 $117.5M

Movement in Share Capital Movement Total

At 30 June 2007 34.2M

December 2008 ‐ 1 for 5 Bonus 6.8M 41.0M

December 2010 ‐ 1 for 5 Bonus 8.2M 49.2M

December 2011 ‐ ESP 1.1M 50.3M

June 2012 ‐ 1 for 5 Bonus 10.0M 60.3M

February 2013 – ESP 0.3M 60.6M

May 2013 ‐ Share Issue, BSP and DRP 1.1M 61.7M

August 2013 ‐ Share issue 3.1M 64.8M

November 2013 – BSP and DRP 0.2M 65.0M

April 2014 – BSP and DRP 0.3M 65.3M

Shareholders at 31/8/2014 Number of Shares Percentage

David R Watson 28,374,892 43.65%

HSBC Custody Nominees 5,790,685 8.86%

David A Mellor 3,544,319 5.45%

Bruce E Saxild 3,179,793 4.89%

Parmelia Pty Ltd 2,762,430 4.23%

Dixson Trust Pty Ltd 1,686,633 2.58%

National Nominees Ltd 912,745 1.40%William Grove 772,769 1.18%Beda Nominees Pty Ltd 684,000 1.05%

Others 17,628,415 26.71%

Total 65,336,681 100.00%

Oct 12 Oct 14

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Balance Sheet

CTI Logistics 2014 Full‐Year Results | 9Balance Sheet 

Year ended 30 June2014$

2013$ Commentary

Cash and cash equivalents 2,251,430  4,440,952 Receivables and prepayments 22,224,381  21,604,640  Continued tight controls over receivables in placeInventories 1,778,196  2,633,659  Strong sell through and reduction in manufactured unitsCurrent assets 26,254,007  28,679,251 Other 77,409  71,000 

Property, plant & equipment 70,537,198  56,449,648  Acquisition of Hazelmere property $9.4m as well as PPE and vehicles

Investment properties 7,543,368  9,781,361  Sale of Bassendean property for $2.9m and $1.6m impairment of two other properties

Deferred tax assets 695,756  992,517 Intangibles 5,510,345  5,878,074  Amortisation charge net of additionsNon‐current assets 84,364,076  73,172,600 Total assets 110,618,083  101,851,851 Trade and other payables 11,733,802  14,016,490  Return of trade payables to more normal levelsBorrowings 2,494,848  1,965,520 Current tax liabilities 86,188  1,163,873 Provisions 2,749,228  2,609,084  Increase in leave provisionsCurrent liabilities 17,064,066  19,754,967 

Borrowings 34,685,156  35,100,966  Purchase of Hazelmere land $9.4m net of equity placement $5.7m and $3.5m proceeds of property sale

Provisions and other liabilities 765,928  589,463  Increase in leave provisionsNon‐current liabilities 35,451,084  35,690,429 Total liabilities 52,515,150  55,445,396 Total net assets 58,102,933  46,406,455  25.2% increase in net assets over the previous year

Freehold Land and Buildings at cost at 30 June 2014 $56,388,961Freehold Land and Buildings at Directors’ valuation at 30 June 2014    $87,666,612F

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FY15 Initiatives

CTI Logistics 2014 Full‐Year Results | 10FY15 Initiatives

Develop next stage of Hazelmere warehousing and distribution facility for growth requirements of existing contract warehousing clients

Continue to expand general warehousing footprint 

Further develop regional road freight network 

Roll out new online delivery platform

Target EPS accretive acquisitions 

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CTI Logistics 2014 Full‐Year Results | 11

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