Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Investor Day (June 2023)
42 slides from Cleanaway Waste Management's investor day presentation, Jun 21, 2023
Slide 1: Blueprint 2030 Execution: Victoria Solid Waste Services
For personal use only Cleanaway Waste Management Limited Australia’s leading total waste Blueprint 2030 Execution Victoria Solid Waste Services management services provider 21 June 2023
Slide 2: Forward looking statements
Forward looking statements – This presentation contains certain forward-looking statements, including with respect to the financial condition, results of operations and For personal use only businesses of Cleanaway Waste Management Limited (“CWY”) and certain plans and objectives of the management o
Slide 3: Agenda and presenters
For personal use only 1. HS&E Strategy and Improvement Program 2. Reimagining Cleanaway’s Culture 3. Solid Waste Services Victoria Overview 4. Workshop Digitisation 5. Visual Management Boards / Value Drivers 6. Data and Analytics 7. Energy from Waste 8. Container Deposit Schemes 9. Building Blocks
Slide 4: HS&E Strategy & Improvement Program
For personal use only HS&E Strategy & Improvement Program Presenter: Deborah Peach, EGM HS&E, Fleet & Asset Integrity
Slide 5: For personal use only
For personal use only CLEANAWAY WASTE MANAGEMENT LIMITED – PAGE 5
Slide 6: Why safety and environment matter
Keep each other safe For personal use only • Protect the safety & wellbeing of our workforce and communities • Embed a culture of care to attract and retain top talent Improved shareholder returns • Reduced costs e.g., insurance premiums, workers compensation payments, asset capital expenditure • In
Slide 7: Future State Enablers
For personal use only Future State Enablers • Safety and environment set as foundations • Fully resourced strategy and 5-year improvement roadmap Approach ❖ Detailed Strategy and Plan • Simple and consistent company-wide HSE programs • Revised HSE support model reinforcing line-led approach to HSE •
Slide 8: Cleanaway HS&E, Fleet & Asset Strategy
on tone ~Cleanaway HS&E, Fleet & Asset Strategy OUR VISION Industry-leading safety and environment performance enabled by our people, safe reliable assets, and an incredible learning culture If we get this right... « Keep our people & communties safe, protect the environment, and maintain our licens
Slide 9: 5-year HSE improvement plan and programs
For personal use only We are implementing a detailed 5-year HSE improvement plan and programs that will be embedded across Cleanaway branches to simplify ways of working and further embed strong line ownership of HSE Be brilliant at the basics Grow HSE leadership, Deliver safe, reliable & Drive busi
Slide 10: Reimagining Cleanaway's Culture
For personal use only Reimagining Cleanaway’s Culture Presenter: Michele Mauger, Chief People Officer
Slide 11: Workforce key metrics
Key Metrics c. 600 Sales, For personal use only >7,500 Marketing & Customer >7,500 Employees support reps employees Male Female Overall 77% 23% Operations 90% 10% >60 Languages c. 2,600 Management 72% 28% Drivers spoken Drivers 93% 7% Female retention a key opportunity in reducing voluntary turnover
Slide 12: Reimagined values for Blueprint 2030
For personal use only To deliver on Blueprint2030 we have reimagined our values with launch planned for FY24 1 Keep each other safe 2 Embed a sense of genuine care 3 Embed a deeper sense of connection and collaboration 4 Enable a branch led mindset and way of working 5 Create space for future thinki
Slide 13: Engaged team delivering great customer experience
A high performing engaged team will deliver a great experience for our customers and the community… For personal use only Employee Engagement Hierarchy Behavioural Change Mechanics Inspire others, self-growth, highly • Prioritised to ensure employees Engaged engaged build trust • Mapped to the emplo
Slide 14: Wingfield Branch Family Day
For personal use only “We really enjoyed the fairy floss “It was a fantastic day and loved the face painter.” and great to see everyone “Great opportunity for my – PL Operations Supervisor in their Sunday best!” 5 children to see where – BG Account Manager Nanny works and all to see all of our big b
Slide 15: Questions
For personal use only Questions
Slide 16: Overview of Solid Waste Services Victoria
For personal use only Overview of Solid Waste Services Victoria Presenter: Tracey Boyes, EGM, Solid Waste Services
Slide 17: Victorian network of sites and customers
Our 1,200+ team currently services ~31k customers through our network of >50 metro and regional sites… For personal use only Collections / Depot Transfer Station Resource Recovery Energy-from-Waste Landfill P i • ~950 vehicles • ~200 ktpa through MRFs • Market evolving • 1 x metro; 1 x regional • 4
Slide 18: Driving and delivering improvement every day
Thousands of great decisions every single day, driving and delivering improvement For personal use only Strong performance management cadence Complementary rhythms to drive performance Cross-SWS business teams to leverage facility-type best practice • Daily: branch focus on value drivers • Get best
Slide 19: Targeted expansion of our footprint to deliver growth
Targeted expansion of our footprint to deliver growth For personal use only Current Footprint Strategic Infrastructure Growth Organics: Energy from Waste: • SEOD capacity to double • Cleanaway Site acquired in strategic location • Planning Approval and Development Licence C&D: application submitted
Slide 20: Workshop Digitisation
For personal use only Workshop Digitisation Presenter: Preet Brar, GM Solid Waste Services Victoria
Slide 21: Labour intensive, error prone work order processes
Labour intensive, less productive and error prone processes For personal use only Work Order Process Upload & 1 Print 2 Review 3 Complete 4 Enter 5 Scan 6 close Current State • 220,000 manual work orders (+4,000,000 pieces of paper) produced each year • Significant administration and double handling
Slide 22: Tablets deployed across workshops
Commenced April 2023 with 86 tablets deployed across 21 workshops currently…. For personal use only Work Order Process 1 Review 2 Complete 3 Close Digitisation Key Benefits Further Opportunities • Compliance – Better vehicle audit trail with photo and text evidence • Current focus is limited to of r
Slide 23: Visual Management Boards & Value Drivers
For personal use only Visual Management Boards & Value Drivers Presenter: Preet Brar, GM Solid Waste Services Victoria
Slide 24: Visual management boards and tracking
To deliver for today and improve for tomorrow we all need to know the starting point, see how we are For personal use only tracking and know how to compete to win 1 Compliance through 4 Recognition of high- daily, weekly, monthly performance drivers tracking 2 3 1 4 through gamification 2 and gift c
Slide 25: Value drivers by segment, state, region and branch
For personal use only SEGMENT - STATE – REGION - BRANCH 1 2 3 LANDFILL OPTIMISATION ROUTE PRODUCTIVITY SAFETY & ENVIRONMENT • Tonnes (per day) • Shift length > 10 hours (#) • Safe truck, safe driver pre-start (%) • Compaction • Lifts (per hour) • Leadership site visit/ activity (#) • Cover soil (%)
Slide 26: Data & Analytics
For personal use only Data & Analytics Presenter: Alex Smith, GM Commercial
Slide 27: Core data and analytics programs progressing
Core programs are progressing well… For personal use only FY23-24 FY24-25+ Reporting & Business Intelligence Insights Delivery Advanced Analytics Program Efficiency gains through automation Utilise insights and value drivers to Using AI & Machine Learning to and consistency in metrics improve financ
Slide 28: Near real-time insights to improve labour management
Near rear-time actionable insights to improve labour management… For personal use only Overview Victorian Branch – Shift Length Focus in FY23 has been supporting our branch managers to Daily Longest Shift Length (h) by Avg Shift Length (h) manage labour value drivers, specifically; • Shift lengths (
Slide 29: Playbook and tools to improve underperforming branches
Data & Analytics driven playbook & tools to improve underperforming branches… For personal use only Route Optimisation Overview NSW Branches – Case Studies • Centralised branch performance team (procurement, pricing, routing, 1 EBIT margins – NSW Branch 1 finance and sales SMEs) running targeted bra
Slide 30: Optimising routes to improve branch performance
Optimising our routes to improve branch performance… For personal use only Route Optimisation Overview Group of customers often missed on their regular ✓ Developed to aid operational teams to improve efficiency, manage labour scheduled service as routes costs and increase density of runs were overca
Slide 31: Energy from Waste
For personal use only Energy from Waste Presenter: Paul Binfield, Chief Financial Officer
Slide 32: Platform business for attractive shareholder returns
Potential to create attractive shareholder returns through a platform business… For personal use only Overview • EfW critical to achieving landfill diversion • Well established technology with hundreds of facilities in operation globally • Timing of transition is difficult to predict • Melbourne’s c
Slide 33: Customer-led transition, policy and diminishing airspace
Customer-led transition, policy and diminishing airspace will shift demand over time… For personal use only Energy-from-Waste Transition Drivers Current Market Dynamics Energy-from-Waste Putrescible Landfill • Competition for volume in Melbourne ✓ Supportive policy • Diminishing social licence maint
Slide 34: Capital-lite long lead development approvals
Creating options by undertaking capital-lite long lead development approvals … For personal use only Capital-lite Option Development Project Assumptions Critical Path workstreams (2+ year lead time) Capex ✓ Secure suitable site • Recent capex estimates are ~ 15-20% higher than prior disclosed estima
Slide 35: Container Deposit Scheme
For personal use only Container Deposit Scheme Presenter: Tracey Boyes, EGM Solid Waste Services
Slide 36: TOMRA Cleanaway Scheme Delivery
TOMRA Cleanaway appointed Network Operator for Zones 1 and 4 For personal use only Scheme Delivery • Scheme commencement: 1 Nov 2023 • ~$40 million capital investment • Key delivery milestones include: ✓ Successful tender ✓ Procure fleet - Orders placed and staggered delivery by Oct 2023 • Establish
Slide 37: Expanding into new regions and growing redemption rates
We are seeking to expand into new regions and grow redemption rates in existing regions... For personal use only NSW QLD WA TAS • Split Responsibility Model • Government appointed scheme • Government appointed scheme • New Scheme to be established • 50/50 Joint Venture with Tomra coordinator (COEX)
Slide 38: CDS delivering circular solutions
CDS’ are very effective in delivering ‘product stewardship’ style highly circular solutions… For personal use only Partnering to Deliver Sustainable Customer Solutions ….and we build our aspiration of CDS partner of choice through performance CLEANAWAY WASTE MANAGEMENT LIMITED – PAGE 38
Slide 39: Building Blocks to FY26 Financial Ambition and Wrap up
For personal use only Building Blocks to FY26 Financial Ambition and Wrap up Presenter: Mark Schubert, CEO and Managing Director
Slide 40: EBIT growth expected from margin recovery and Blueprint 2030
Strong EBIT growth expected over next 24 months driven by margin recovery and Blueprint 2030 progress For personal use only EBIT margin FY26 EBIT CAGR Margin ~12.0% Blueprint 2030 11.4% 10.5% 10.5% 10.5% 11.8% 11.1% 10.5% 10.0% 10.0% ~10.3% ambition & strategy recovery progress “report card” Comment
Slide 41: Growing suite of Blueprint 2030 initiatives
We are developing and implementing a growing suite of initiatives ... For personal use only Strategic Strategic Infrastructure Infrastructure Sustainable Customer Operational Operational Excellence Excellence Growth Growth Solutions ‘+ ‘+ improved improved profitability’ profitability’ ‘+ accretive
Slide 42: Questions
For personal use only Questions
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