Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Transpacific Industries Group — H1 FY2015 Earnings Presentation
29 slides from Cleanaway Waste Management's earnings presentation, Feb 20, 2015
Slide 1: Transpacific FY15 Half Year Results Presentation
Transpacific FY15 Half Year Results Presentation Robert Boucher – CEO Brendan Gill – CFO 20 February 2015
Slide 2: Disclaimer
Transpacific FY15 Half Year Results - Disclaimer Forward looking statements - This presentation contains certain forward-looking statements, including with respect to the financial condition, results of operations and businesses of Transpacific Industries Group Ltd (“TPI”) and certain plans and obje
Slide 3: Agenda
Transpacific FY15 Half Year Results Agenda Key Points Financial Summary and Overview Robert Boucher, CEO Underlying Adjustments - Non-Current Asset Impairments - Fleet Grounding Costs Divisional Underlying Results Financial Management Brendan Gill, CFO Underlying Adjustments Capital Structure Strate
Slide 4: Key Points
Transpacific FY15 Half Year Results Key Points Total recordable injury frequency rate reduced by 24% from 12.9 to 9.8 Safety Continued focus on improving our safety processes and procedures Acquisition of Melbourne Regional landfill business announced 17 December 2014 Landfill ACCC advised it will n
Slide 5: Financial Summary and Overview
Transpacific FY15 Half Year Results Financial Summary and Overview Statutory Total revenue of $689.5 million results Loss after income tax attributable to ordinary equity holders of $41.7 million Loss per share 2.6 cents $77.5 million on impairment of assets $16.5 million costs associated with the f
Slide 6: Underlying Adjustment – Non-Current Asset Impairments
Transpacific FY15 Half Year Results Underlying Adjustment– Non-Current Asset Impairments A review of the carrying value of non-current assets including intangibles has been completed and the Company has booked a non-cash impairment of $64.5 million after tax on the Hydrocarbons Hydrocarbons business
Slide 7: Underlying Adjustment - Fleet Grounding Costs
Transpacific FY15 Half Year Results Underlying Adjustment - Fleet Grounding Costs Fleet Total fleet grounded grounded on 19on 19 August August 20142014. By 3 September 2014 all waste collection services Background returned to normal By 3 September 2014 all waste collection services returned to norma
Slide 8: Divisional Underlying Results
Transpacific FY15 Half Year Results Divisional Underlying Results A$ million Revenue EBITDA EBIT 1H15 1H14 % change 1H15 1H14 % change 1H15 1H14 % change Cleanaway 456.3 467.7 -2.4% 96.2 98.6 -2.4% 50.5 50.8 -0.6% Industrials 229.1 246.9 -7.2% 31.8 44.8 -28.9% 17.0 30.3 -43.9% Associates - - - 0.6 1
Slide 9: Cleanaway Underlying Results
Transpacific FY15 Half Year Results Cleanaway Underlying Results A$ million 1H15 2H14 1H14 1H15 v 2H14 1H15 v 1H14 Commercial & Industrial 302.8 294.6 309.2 2.8% -2.1% Municipal 90.0 96.6 100.5 -6.9% -10.4% Post Collections (excl levies and carbon tax)* 67.1 61.5 63.8 9.1% 5.2% Levies and carbon tax
Slide 10: Cleanaway Underlying Results (cont’d)
Transpacific FY15 Half Year Results Cleanaway Underlying Results (cont’d) Commercial & Industrial Municipal Post Collections A$ million 1H15 1H14 % A$ million 1H15 1H14 % A$ million 1H15 1H14 % Revenue 302.8 309.2 -2.1% Revenue 90.0 100.5 -10.4% Revenue 67.1 63.8 5.2% Pilot sales project successfull
Slide 11: Industrials Underlying Results
Transpacific FY15 Half Year Results Industrials Underlying Results A$ million 1H15 2H14 1H14 1H15 v 2H14 1H15 v 1H14 % variance % variance Revenue 229.1 238.1 246.9 -3.8% -7.2% EBITDA 31.8 45.3 44.8 -29.8% -28.9% EBITDA Margin 13.9% 19.0% 18.1% EBIT 17.0 30.4 30.3 -44.2% -43.9% EBIT Margin 7.4% 12.8
Slide 12: Industrials Underlying Results (cont’d)
Transpacific FY15 Half Year Results Industrials Underlying Results (cont’d) Technical Services Energy, Minerals and Remediation Hydrocarbons A$ million 1H15 1H14 1H15 v 1H14 A$ million 1H15 1H14 1H15 v 1H14 A$ million 1H15 1H14 1H15 v 1H14 Revenue 102.9 113.9 -9.7% Revenue 60.0 61.8 -2.9% Revenue 66
Slide 13: Group Income Statement – Statutory and Underlying Results
Transpacific FY15 Half Year Results Group Income Statement – Statutory and Underlying Results A$ million Statutory Results Underlying Adjustments Underlying Results % 1H15 1H14 1H15 1H14 1H15 1H14 change Revenue from Australian waste management 689.5 719.7 - - 689.5 719.7 -4.2% Revenue from business
Slide 14: Group Income Statement – Statutory and Underlying Results
Transpacific FY15 Half Year Results Group Income Statement – Statutory and Underlying Results A$ million Statutory Results Underlying Adjustments Underlying Results % 1H15 1H14 1H15 1H14 1H15 1H14 change Net interest expense (4.3) (35.7) - - (4.3) (35.7) 88.0% Non-cash finance costs (7.4) (13.1) - 6
Slide 15: Statutory Profit Reconciliation to Underlying Profit
Transpacific FY15 Half Year Results Statutory Profit Reconciliation to Underlying Profit A$ million 1H15 1H14 Statutory (Loss)/Profit From Continuing and Discontinued Operations After Income Tax (Attributable to Ordinary Equity Holders) (41.7) 158.6 Costs associated with the fleet grounding 15.5 - C
Slide 16: Balance Sheet
Transpacific FY15 Half Year Results Balance Sheet A$ million 31 Dec 14 30 Jun 14 31 Dec 13 Assets Cash 41.1 190.1 71.7 Receivables 214.8 233.3 293.9 Inventories 14.0 10.7 22.3 Other current assets 25.8 11.7 22.7 Property, plant and equipment 778.2 822.0 1,076.9 Land held for sale 6.6 6.6 7.6 Intangi
Slide 17: Cash Flows
Transpacific FY15 Half Year Results Cash Flows A$ million 1H15 1H14 Ratio of cash flow from operating activities to Receipts from customers 690.9 1,090.7 underlying EBITDA 95.4% (pcp: 78.1%)(1) Payments to suppliers and employees (574.7) (938.3) Remediation of landfills (3.6) (4.0) Remediation spend
Slide 18: Capital Structure
Transpacific FY15 Half Year Results Capital Structure Net Debt comprises: A$ million 31 Dec 14 30 Jun 14 31 Dec 13 At 31 December 2014 the Company had $199 Current interest bearing liabilities 1.8 2.0 22.3 Non current interest bearing liabilities 162.7 51.4 803.3 million of headroom under its $400 m
Slide 19: Strategy update
Transpacific FY15 Half Year Results Strategy update Our strategy is to create a durable waste management operation, restoring returns and positioning TPI for sustainable growth. It revolves around four key components How Current status • The sales transformation project has commenced Drive unit grow
Slide 20: Strategy update (cont’d)
Transpacific FY15 Half Year Results Strategy update (cont’d) Our strategy is to create a durable waste management operation, restoring returns and positioning TPI for sustainable growth. It revolves around four key components How Current status 3. Tuck-in Increase profitability by • Disciplined appr
Slide 21: Major FY15 second half initiatives
Transpacific FY15 Half Year Results Major FY15 second half initiatives We must accelerate the pace of improvement across all businesses and will be implementing a number of major initiatives during the second half to establish a strong growth platform in FY16 Sales Transformation Pricing Fleet Contr
Slide 22: Closing Comments and FY15 Outlook
Transpacific FY15 Half Year Results Closing Comments and FY15 Outlook We have a comprehensive multi-year strategy which will generate benefits over the next 12-18 months. We have to accelerate the pace of improvement across the Company and have a number of initiatives in progress to achieve this dur
Slide 23: Questions
Questions 23
Slide 24: Appendices
Appendices 24
Slide 25: Appendix 1: Australian Waste Management Underlying Results 1H14 to 1H15
Transpacific FY15 Half Year Results Appendix 1: Australian Waste Management Underlying Results 1H14 to 1H15 Divisional 1H14 to 1H15 change 25
Slide 26: Appendix 2: Capital Structure – Net Finance Costs
Transpacific FY15 Half Year Results Appendix 2: Capital Structure – Net Finance Costs A$ million Statutory Underlying 1H15 1H14 1H15 1H14 Interest expense Bank interest 1.5 22.1 1.5 22.1 Commitment fees 0.9 1.9 0.9 1.9 Hedging - 6.2 - 6.2 Guarantee/Bond fees 0.7 1.9 0.7 1.9 USPP Notes 3.0 2.9 3.0 2.
Slide 27: Appendix 3: Underlying Divisional EBITDA Adjustments
Transpacific FY15 Half Year Results Appendix 3: Underlying Divisional EBITDA Adjustments A$ million Statutory Results Underlying Adjustments Underlying Results 1H15 1H14 1H15 1H14 1H15 1H14 change Cleanaway 89.5 98.6 6.7 - 96.2 98.6 -2.4% Industrials (51.3) 44.8 83.1 - 31.8 44.8 -28.9% Share of prof
Slide 28: Appendix 4: Divisional Underlying Results 1H15 v 2H14
Transpacific FY15 Half Year Results Appendix 4: Divisional Underlying Results 1H15 v 2H14 A$ million Revenue EBITDA EBIT 1H15 2H14 % change 1H15 2H14 % change 1H15 2H14 % change Cleanaway 456.3 444.1 2.7% 96.2 91.2 5.5% 50.5 48.0 5.3% Industrials 229.1 238.1 -3.8% 31.8 45.3 -29.8% 17.0 30.4 -44.2% A
Slide 29: Appendix 5: Capital Structure – Credit Metrics
Transpacific FY15 Half Year Results Appendix 5: Capital Structure – Credit Metrics * Underlying net interest used Note: Underlying EBITDA is used in the calculation of credit metrics as it is considered to better reflect the ongoing position of the Group 29
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