Midway — H1 2020 Earnings Presentation
18 slides from Midway's earnings presentation, February 2020
Slide 1: Half year result – 1H20 Analyst and Investor Presentation
Half year result – 1H20 Analyst and Investor Presentation February 2020
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Midway Limited ACN 005 616 044 (Midway or the Company). The information contained in this presentation is current at the date of this presentation. The information is a summary overview of the current activities of the Company and does not purport to
Slide 3: Financials 1H20
Financials 1H20 Midway
Slide 4: Overview
Overview 1H20 results • EBITDA – S(1) of $4.2M (1H19: $12.2M) Revenue $123.0M -1.0% n • Statutory NPAT of $1.0M and loss before significant items of $1.2M in underlying NPAT • Board has decided not to pay an interim dividend in relation to 1H20 EBITDA-S(1) $4.2M -65.5% Market update • Pulp prices ha
Slide 5: Financial Performance – 1H20
Financial Performance – 1H20 Midway Group EBITDA-S ($m) 14.0 12.0 10.0 8.0 7.5 2.2 2.1 0.7 6.0 12.2 0.3 1.7 1.3 4.0 2.0 4.2 - 1H19 Volume Price FX Bone Dry % Supply costs PMP Production MW Logistics 1H20 5
Slide 6: Financial Performance – 1H20
Financial Performance – 1H20 $Am 1H20 1H19 % Change Sales Revenue 123.0 124.2 (1.0%) Other Income 4.5 2.6 73.1% Equity Accounted Share of 2.4 2.2 9.1% Profits Operating Costs (125.7) (116.8) (7.6%) (1) EBITDA – S 4.2 12.2 (65.6%) (2) Significant items (7.7) 2.7 (385.2%) Net fair value gain on 12.9 1
Slide 7: Cash Flow – 1H20
Cash Flow – 1H20 $Am 1H20 1H19 $Am Change Operating Cash Flow (2) (10.3) (13.7) 3.4 Investing Cash Flow (1.2) (15.7) 14.5 Financing Cash Flow 3.7 23.6 (19.9) Net Change in Cash (7.8) (5.8) (2.0) Net Debt (1) 55.4 36.2 19.2 Interest Cover 14.9 16.4 (1) Net debt excludes the Strategy financial liabili
Slide 8: Balance Sheet – 1H20
Balance Sheet – 1H20 $Am 1H20 FY19 $Am Change Total Current Assets 65.2 71.3 (6.1) Total Non-current Assets 217.4 205.7 11.7 Total Assets 282.6 277.0 5.6 Total Current Liabilities 52.1 38.8 13.3 (1) Non-current borrowings 39.3 38.4 0.9 Total Non-current Liabilities 93.5 95.5 (2.0) Total Liabilities
Slide 9: Business performance
Business performance Woodfibre processing New contracts in H2 have replaced lost sales of high quality wood fibre in H1 Created a more balanced geographic sales mix (1H20 China 59% vs Japan 41%, FY19 China 70% vs Japan 30%, excluding domestic sales); this trend to continue in 2H 20 Tiwi Island
Slide 10: Strategy and Outlook section
Strategy and Outlook section 10
Slide 11: Strategic priorities
Strategic priorities Strategic priorities progressing well Increasing EBIT over time: 1. EXPANSION OF EXISTING BUSINESS Maximising long term fibre supply by replanting existing land and securing contracts with third Growth of plantation management and woodfibre processing party plantation owners
Slide 12: Business Development
Business Development Activity Description Wood fibre Supply Ongoing agreement with wood fibre processor in Tasmania and negotiations continue to secure further volume, whilst additional access to export facilities being actively pursued in the region Second rotation plantation investment opportunity
Slide 13: Market Outlook
Market Outlook Pulp Prices 1000 Positive signs so far in 2020 900 800 700 • Solid sales in first three months of H2 600 500 • Pulp stocks starting to return to normal levels 400 • Pulp prices have stabilised since late 2019 • US-China trade agreement in January 2020 Bleached Softwood Kraft Bleached
Slide 14: Outlook for FY20
Outlook for FY20 FY20 outlook • Increased shipments contracted for 2H20, compared with 1H20 • Rebalancing geographic revenue mix with higher proportion of Japanese sales • Midway is comfortable that it will meet current consensus forecasts for EBITDA in FY20 based on current market conditions and th
Slide 15: Attachments
Attachments Midway 15
Slide 16: Potential volume growth driven by changing mix (Domestic and Export)
Potential volume growth driven by changing mix (Domestic and Export) Volumes FY2019 FY2020 FY2021 FY2022 FY2023 (000’s GMT) Geelong 1,047 950 850 700 700 Portland 1,534 1,350 1100 1,000 800 Brisbane 218 330 400 450 550 Melville Island 188 340 340 340 340 Tasmania1 367 450 600 700 800 Western Austral
Slide 17: New accounting standards – impacts FY20
New accounting standards – impacts FY20 Key impacts – AASB 16 Leases • AASB 16 provides a new lease accounting model which requires a lessee to recognise a right of use asset representing its right to use the underlying asset and lease liabilities. The depreciation of the right of use asset and inte
Slide 18: Questions?
Questions ? Midway