Mr. Murray Mullen reports

MULLEN GROUP LTD. 2023 UPDATE AND 2024 BUSINESS PLAN

Mullen Group Ltd.'s budget and business plan for 2024 have been approved by the board of directors.

"In preparing our business plan for the upcoming year, we considered the outlook for the economy, geopolitical uncertainties and the prospects for the sectors of the economy we service, and clearly, there are reasons to be cautious, just as there were last year, when we outlined our plan for 2023, but this economy is proving more resilient than we gave it credit for. Consumer spending has remained strong despite higher interest rates and initiatives by the central banks to cool the economy," commented Murray K. Mullen, senior executive officer and chair.

"Based upon our October and November results, we now expect to finish the year on a positive note, with quarterly revenues close to our early projections of $500.0-million. More impressive is that we are projecting OIBDA to exceed $80.0-million. With the strong finish to the year, it is now realistic to suggest that the full-year 2023 results will exceed our earlier projections. The new OIBDA range for fiscal 2023 is tracking towards $325.0-million to $330.0-million. This is obviously very good news for our shareholders and provides a solid backdrop heading into 2024, validating not only the strength of our business model but also our strategy of focusing on costs and acquisitions that add value. Actual results will be finalized in early February, 2024, at which time the audited financial results for 2023 will be released.

"In developing our plan for 2024, we considered many factors to determine if there would be any significant changes in the economic outlook or within the industry verticals we service. Generally speaking, we see little evidence of sustained economic growth. As such, we have presumed that overall demand next year will remain consistent with current levels. On the supply side, however, we see potential opportunity. Many of our competitors are struggling under the pressures of elevated debt levels, higher interest costs and tighter lending standards. We believe that our business is uniquely positioned to capitalize as the competition struggles under the weight of these challenges. This is, in our opinion, the best opportunity to grow in 2024, but the timing we are uncertain of. For this reason, the budget we present for 2024 does not factor in this potential. What we are more certain about is that we will be well positioned to grow when the right opportunities are available. Until then, our current robust and diversified business model will, once again, generate solid results and free cash, funds we can use to grow or return to shareholders," added Mr. Mullen.

Priorities

To achieve the operating results outlined in the 2024 budget, it has established and will be focusing on the following priorities:

1. Capital investments: $80.0-million in new, more efficient operating assets, exclusive of corporate acquisitions or investment in facilities, land and buildings:
   1. $70.0-million in maintenance capital to improve its business units;
   2. $10.0-million in sustainability-focused capital for continued focus on emission reduction;
2. Prioritize margin over market share: work with business units to drive process improvements:
   1. Effective deployment of technology;
   2. Optimize operations of the business units;
   3. Monetize non-core assets;
3. Pursue acquisitions: be opportunistic with consolidation opportunities that are synergistic and accretive:
   1. Tuck-ins: opportunities that make existing business units more profitable;
   2. Strategic: opportunities to expand network;
4. Maintain balance sheet flexibility.

Shareholder allocation

One of the main components of its 2024 business plan is to return cash to shareholders by way of monthly dividends and a share buyback plan. The board has determined that the appropriate allocation for 2024 will be:

1. Dividends to shareholders will remain consistent at six cents per common share each month or 72 cents per common share on an annualized basis.
2. In March, 2024, it intends on requesting approvals from the Toronto Stock Exchange to renew the normal course issuer bid program. For the 11-month period ended Nov. 30, 2023, it repurchased 4,774,759 common shares for $69.9-million under the NCIB.

About Mullen Group Ltd.

Mullen Group is one of Canada's largest logistics providers. Its network of independently operated businesses provides a wide range of service offerings, including less than truckload, truckload, warehousing, logistics, transload, oversized, third party logistics and specialized hauling transportation. In addition, it provides a diverse set of specialized services related to the energy, mining, forestry and construction industries in Western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and system support, shared services, and strategic planning to its independent businesses.

Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol MTL.

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