Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Morgans 5th Annual Value in the Vines Conference 2020
18 slides from Cleanaway Waste Management's conference presentation, Oct 9, 2020
Slide 1: Presentation at Morgans Conference ASX cover letter
9 October 2020 For personal use only Company Announcements Office ASX Limited Exchange Office Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam Presentation at Morgans Conference Attached is a presentation to be made by the CEO and Managing Director at the Morgans conference later today. This
Slide 2: 5th Annual Value in the Vines conferences - Morgans Scone
For personal use only 5th Annual Value in the Vines conferences Morgans - Scone Vik Bansal – CEO and Managing Director 9 October 2020
Slide 3: Disclaimer
Disclaimer • 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
Slide 4: Waste Industry Thematics
Waste Industry Thematics For personal use only High marginal • Network economics are ‘king’ contribution • Route density – not hub and spoke Utility Type • Large enterprise-level selling Customer Profile • Utility-like spend category – low ‘share of mind’ for customers Recurring • Momentum business
Slide 5: Cleanaway at a Glance
Cleanaway at a Glance For personal use only Cleanaway’s revenue base is Solid Waste Services largely underpinned by long-term Typical contract duration FY20 Segment Net contracts across all sectors with a • Municipal: 7 - 10 years geographically diverse customer • Commercial & Industrial: 3+ years
Slide 6: People & Culture: Safety
People & Culture : Safety Total Recordable Injury Frequency Rate1 For personal use only -21.1% 26.6 16.7 12.6 10.6 10.8 7.6 6.2 5.7 4.5 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 • Safety performance remains a key performance measure for all executive STIs starting from CEO down to site management
Slide 7: People & Culture: Key Metrics
People & Culture : Key Metrics Our Leadership Model – Three C’s Employee Engagement Survey Results For personal use only 2016 2017 2018 2019 No survey 2020 62% 59% 59% (Pulse survey for Underway Toxfree) • AON Hewitt Methodology …….59% reflects engagement responses of agree or strongly agree on thre
Slide 8: FY20: Group Financial Performance Overview
FY20 : Group Financial Performance Overview Underlying Results Statutory Results For personal use only $ million FY191 FY20 Growth FY20 FY191 FY20 Growth (Pre AASB16) (Pre AASB16) (Post AASB16) Gross Revenue 2,283 2,332 2.1% 2,332 2,283 2,332 2.1% Net Revenue 2,109 2,100 (0.4)% 2,100 2,109 2,100 (0.
Slide 9: Sustained Underlying Earnings Growth Continues
Sustained Underlying Earnings Growth Continues Net Revenue ($million) EBITDA ($million) and EBITDA margin (%) EBIT ($million) and EBIT margin (%) For personal use only CAGR1 +10.0% CAGR1 +15.4% CAGR1 +20.9% NPAT ($million) and NPAT margin (%) NPATA ($million) and NPATA margin (%) Return on Invested
Slide 10: Cash Flows and Shareholder Returns
Cash Flows and Shareholder Returns Operating Cash Flow ($m) Cash Capex ($m) and % of Net Revenue Free Cash Flow ($m) For personal use only CAGR1 +15.7% CAGR1 +64.9 % Tax Refund2 Net Debt ($m) and Net debt / EBITDA3 (x) Dividend (cents) & Payout Ratio (%) Underlying Earnings per share (cents) CAGR1 +
Slide 11: Covid-19: Cleanaway's Response
Covid-19: Cleanaway’s Response Consistent communication of three priorities: For personal use only • Keep our people safe • Keep company sustainable and our people in jobs during and post Covid-19 • Keep serving our customers, as an essential service provider To keep our people in jobs while deliver
Slide 12: Strong Balance Sheet with >$400m available liquidity
Strong Balance Sheet with >$400m available liquidity 30 June 2020 30 June 2020 $ million 30 June 2019 For personal use only (Post AASB16) (Pre AASB16) Capital structure 30 June 2020: Leases 134.4 172.2 437.3 At 30 June 2020, the Group had $421 million of USPP Notes — 426.9 426.9 headroom under exi
Slide 13: Delivering Footprint 2025 – Acquisitions and Greenfield to continue
Delivering Footprint 2025 – Acquisitions and Greenfield to continue For personal use only Collections Resource recovery Energy from Waste Treatment and Disposal Perth MRF* Doubled electricity generation Planning permit for 2 x WA transfer stations at Melbourne facility Melbourne Regional Lan
Slide 14: Recycling Assets – from depreciating to prized infrastructure
Recycling Assets – from depreciating to prized infrastructure Over the past five years we have been recycling low return assets into highly For personal use only prized infrastructure assets • Old landfills / buffer • Brooklyn x 2 • Clayton • Tullamarine • Old unlicensed sites • Crestmead • Kurri Ku
Slide 15: PET Plastic Pelletising Joint Venture
PET Plastic Pelletising Joint Venture Resource recovery Value Chain Extension Cross value chain collaboration with Pact and Asahi for bottle to bottle recycling of ~1 billion bottles p.a. For personal use only Milestone Progress Feedstock JV Partner selection & formation Site identification Technica
Slide 16: Sydney Energy from Waste Development
Sydney Energy from Waste Development Waste to Energy Preliminary Facility Design For personal use only Milestone Progress Cleanaway & Macquarie JV May 2019 Site acquisition Oct 2019 Scoping Report submission Nov 2019 Development and Commercialisation EIS submission Project Facts & Overview Located
Slide 17: Cleanaway – Making a sustainable future possible
Cleanaway – Making a sustainable future possible For personal use only Diversified exposure to Australia’s growing waste market with revenue streams that display defensive characteristics Leading player in each of our operating segments of Solids Waste Services, Liquid Waste & Health Services an
Slide 18: Questions
Questions For personal use only Confidential | 17 17
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