Myeco Group Ltd · ASX:MCO
Myeco — FY2022 Earnings Presentation
22 slides from Myeco's earnings presentation, Aug 26, 2022
Slide 1: FY22 Full Year Results
FY22 FULL YEAR RESULTS AUGUST 2022 ASX: SES CHANGING THE WORLD OF PACKAGING
Slide 2: Agenda
AGENDA • Highlights & Operational Review • Financial Summary • Strategy & Outlook FY22 Full Year Results – Investor Presentation 2
Slide 3: Highlights & Operational Review
HIGHLIGHTS & OPERATIONAL REVIEW FY22 Full Year Results – Investor Presentation 3
Slide 4: A Great Year of Achievements for SECOS Group
A GREAT YEAR OF ACHIEVEMENTS FOR SECOS GROUP Woolworths expands SECOS products to 970 stores MyEcoBag achieves fastest growing compostable bag sales in Woolworths Jewett Cameron Corporation (JCC) orders re-commenced in May 2022 EzyDog pet waste bags launched to 600 retail stores United National Food
Slide 5: Positioning for Growth in 2023
POSITIONING FOR GROWTH IN 2023 MyEcoBag range now sold in Integrated Biopolymer producer in fast growth over 1200 stores in Australia industry offering a material alternative to New R & D Centre for excellence with new major retails expected established in Melbourne to support conventional plastics
Slide 6: Strong Outlook
STRONG OUTLOOK SECOS has a strong growth trajectory in the bioplastic market Strong forward Growth in pet Expansion of Current Establishment of Launch of new global Expansion of local Planned capacity Several trials of pipeline continues to waste bags MyEcoBag® range investment Mexican subsidiary re
Slide 7: Production Capacity Expansion
PRODUCTION CAPACITY EXPANSION Available Production Capacity - Available Production Capacity - New capacity diversifies production location & Resin (tonnes) Bags (millions) increases capacity: 700 90 80 600 80 600 70 ● Doubling of bag capability from FY21 to FY22; 500 60 Malaysia’s new bag plant has
Slide 8: Actions to Mitigate COVID-19 Freight Impacts
ACTIONS TO MITIGATE COVID-19 FREIGHT IMPACTS The rebound in demand following the initial impact of COVID-19 saw an increase in freight costs and delivery lead times. To mitigate this SECOS: • instituted a range of price increases with main customers • increased container loading in order to reduce f
Slide 9: Financial Summary
FINANCIAL SUMMARY FY22 Full Year Results – Investor Presentation 9
Slide 10: Sales Performance
SALES PERFORMANCE Three-Year Comparative Segment Performance ($’000) FY22 FY21 Change Oceanic 6,512 5,060 28.7% FY22 Asia 15,617 13,930 12.1% FY21 Americas 6,337 8,975 (29.4%) Europe 1,426 1,402 1.7% FY20 Africa 1,151 714 61.2% 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 $'000 Total 31,043 30,
Slide 11: Profit Movement
PROFIT MOVEMENT FY22 NPAT result was impacted by disruptions in supply chain and increased freight costs resulting from global macro events, and strategic investment in marketing and capability. The variance to PCP was partly driven by a $2.1m tax benefit booked in FY21 from the recognition of a def
Slide 12: Working Capital and Operating Cash Flow
WORKING CAPITAL AND OPERATING CASH FLOW Operating Cash Flow Reconciliation $’000 FY22 FY21 NPAT (3,085) 2,590 Tax Expense/(Benefit) 172 (2,053) Depreciation & Amortisation 1,304 882 Working Capital Movement (2,784) (5,819) Other 333 (304) Operating Cash Flow (4,060) (4,704) Increase in working capit
Slide 13: Strategy & Outlook
STRATEGY & OUTLOOK FY22 Full Year Results – Investor Presentation 13
Slide 14: Strategy: Own Brands, Partner Brands & Expanded Range
STRATEGY: OWN BRANDS, PARTNER BRANDS & EXPANDED RANGE SECOS aims to leverage its current compostable resin, film, and bag assets to produce: ▪ SECOS owned brands MyEcoPetTM, & MyEcoBagTM are now available through a greater number of storefronts in Australia and the USA (collectively we have brands i
Slide 15: Strategy – New Resin & Film Development
STRATEGY – NEW RESIN & FILM DEVELOPMENT ● IP and knowhow - SECOS has 11 patent families o Patents cover multi-layer film structure and thermoplastic starch-based resin formulations ● Development of new resin grades for cast and blown film, with a particular focus on: o SECOS Compostable film barrier
Slide 16: Unique Competitive Advantages
UNIQUE COMPETITIVE ADVANTAGES 1 Asset location relative to large scale raw material supplies IP – through our patents and increasing knowhow around thermoplastic starch 2 based formulations, bio-product film and bag production skill sets R & D competencies focusing on new bio-resin formulations and
Slide 17: Competitive Advantage – Strategic Asset Locations
COMPETITIVE ADVANTAGE – STRATEGIC ASSET LOCATIONS ● SECOS has access to multiple, fast growing Global production capacities of bioplastic in 2020 (by region) suppliers of raw materials, which enables Total: 2.11 million tonnes competitive pricing and consequent margin Asia enhancement over time 26 4
Slide 18: Competitive Advantage - Integration
COMPETITIVE ADVANTAGE - INTEGRATION Integration across the bio-product value chain: Resin -> Brands -> Consumers Integrated Value Chain - Cardia® Developing Own - Brands MyEco® Biobased & Conventional Cast Film Biobased resin production Biobased Blown Film MyEcoBag/ MyEcoWorld® MyEcoPet® Production
Slide 19: Future Choices – Material Usage
FUTURE CHOICES – MATERIAL USAGE Petrochemical Industry – US$3 trillion in sunk infrastructure and it will continue to run and produce. However there are challenges ahead: ● Conventional Plastics/Petrochemicals; increasingly associated with global warming & environmental contamination (marine and lan
Slide 20: Outlook
OUTLOOK SALES OUTLOOK IS STRENGTHENING ● Strong orders received in Q1 expected to deliver double-digit growth from Q2 ● Recommencement of JCC business to further underpin expected growth ● Increasing sales with domestic and international partner brands ● Australian Council business remains strong wi
Slide 21: Forward-Looking Statements Disclaimer
FORWARD-LOOKING STATEMENTS DISCLAIMER This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation: estimates of future earnings; estimates of future production and sales; estimates of future cash costs; estimates of future cash flo
Slide 22: Changing the World of Packaging
CHANGING THE WORLD OF PACKAGING