Slide 1: 1H22 Results Presentation
For personal use only 1H22 Results Presentation February 2022
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Close the Loop Limited ACN 095 718 317 (“Close the Loop” or the “Company”) and does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities
Slide 3: Introduction & 1H22 Result Highlights
INTRODUCTION & 1H22 RESULT HIGHLIGHTS For personal use only Joe Foster - CEO
Slide 4: About Us
About Us For personal use only As the only ASX-listed company offering end-to-end solutions, Close the Loop is focused on the future growth, sustainability and the circular economy. We create innovative products and packaging that includes recyclable and made-from-recycled content, as well as coll
Slide 5: Our Divisions
Our Divisions Medium- Large Volume For personal use only Offshore Gravure Print Print Consumables & Cosmetics Production Orders Take-Back Complimentary Packaging Post Consumer Recyclate (PCR) Products (Including Use of Soft Services (Technical and Plastics) Artwork Support) Commercial Paper and Card
Slide 6: Market Overview: Circular Economy
Market Overview: Circular Economy For personal use only • A circular economy is an economic system that tackles climate change, biodiversity loss, waste, and pollution. • It seeks to correct the problems of the linear economy where consumers and businesses follow a “take, make, waste” process, meani
Slide 7: How We Fit Into the Circular Economy
How We Fit Into the Circular Economy For personal use only Create & Reuse Divisions: Collection & Recovery Divisions:
Slide 8: Macro and Regulatory Tailwinds
Macro and Regulatory Tailwinds • Almost US$3 trillion (per year) of additional capital investment is For personal use only required to meet increasing sustainability metrics1 • Continued high landfill rates for plastic and print consumables • Low adherence to recycling² • Single-use plastics: There
Slide 9: Financials
Financials For personal use only Key Comments: $40.7M $7.4M • On track to exceed REVENUE EBITDA prospectus forecasts +22.6% on pcp +51% on pcp • Strong year-on-year growth across the Group • Business generating $4.97M $14.4M strong free cash flows NPBT CASH • Results based on +67.7% on pcp +109% on
Slide 10: Highlights 1H22
Highlights 1H22 For personal use only • Showing good performance against forecasts and would expect to achieve budget despite the challenges with supply chain logistics from Asia and Foreign currency pressures • Orders inwards are positive over the course of the next three months, giving us confiden
Slide 11: Highlights 1H22
Highlights 1H22 For personal use only • As a specialist in bulk and retail seafood packaging in Australia, this business was natural bolt on to the current O F Packaging business with opportunities for excellent growth through cross selling across the Packaging divisions • With two months of trading
Slide 12: Highlights 1H22 - Australia, USA, EU
Highlights 1H22 For personal use only - Australia • Close the Loop’s Australian operations have been impacted by the COVID pandemic and the lockdowns in its major markets of Melbourne and Sydney during the half year • Close the Loop is a volume-based business and collection volumes continue to be su
Slide 13: 1H22 Summary
1H22 Summary For personal use only • EBITDA of $7.4 million • Revenues of $40.7 million • ASX listing following strongly supported $12 million IPO: Close the Loop becomes the first company to list on the ASX that provides full circular-economy solutions – from design, manufacture, collection and reu
Slide 14: Financial Results
Financial Results For personal use only Marc Lichtenstein - CFO
Slide 15: Income Statement
Income Statement Proforma 1H22* 1H21* Change FY22/Prospectus For personal use only Revenue 40.7 33.2 22.6% 73.9 Cost of sales 25.9 21.1 22.7% 45.1 • Results based on aggregation for the Gross profit 14.8 12.1 22.3% 28.8 reporting periods Operating 9.8 8.0 22.5% 16.9 • Strong year-on-year expenditure
Slide 16: Balance Sheet
Balance Sheet ($m) 1H22 30 June 2021 Change Assets For personal use only Cash and cash equivalents 14.4 6.9 109% Trade and other receivables 15.3 13.0 18% Inventories 3.6 2.2 64% • Strong working capital Other assets 1.2 0.4 200% position Total Current Assets 34.5 22.5 53% Property, plant & equipmen
Slide 17: Cashflow Statement
Cashflow Statement ($m) 1H22 30 June 21 Change Cash flows from operating activities For personal use only Receipts from customers 21.4 74.9 Payments to suppliers and employees (20.8) (62.5) Interest paid (0.4) (1.6) Income taxes paid (1.4) (1.3) Other receipts - 2.6 Net cash provided by/(used in) op
Slide 18: Strategy and Outlook
Strategy and Outlook For personal use only Joe Foster CEO
Slide 19: Growth Strategy
Growth Strategy For personal use only • Greater investment in plastic washing and separation capability in Australia and the US • More automation in the US to drive higher operational efficiencies; estimated savings of US$500K p.a. • International market expansion in Q3 FY22 • Further acquisition ta
Slide 20: Current and Future Growth Opportunities
Current and Future Growth Opportunities For personal use only
Slide 21: Recycling Program Objectives
Recycling CrossProgram DivisionObjectives Integration For personal use only National Pet Store PARTNERSHIP COLLECT RECYCLE CREATE We partner with customers We leverage our national logistics All packaging is recycled From the recycled output and retailers create a infrastructure to collect the soft
Slide 22: Outlook
Outlook For personal use only • Close the Loop accelerates growth momentum with record 1H22 results • Strong organic growth enhanced by the acquisition of Oceanic Agencies and Crasti & Co. • Integration of the business progressing well • Expertise gained through the O F Packaging and Close the Loop
Slide 23: Investment Summary
Investment Summary For personal use only ✓ Significant market opportunity: with the growing need for a circular economy solution ✓ Leading industry player for urban mining in the rapidly growing circular economy ✓ Global business with significant growth options in the USA, EU and South Africa ✓ Deep
Slide 24: Contact
For personal use only Contact investors@ctlgroup.com.a u ctlgroup.com.au Joe Foster Marc Lichtenstein Chief Financial Officer- Group Chief Executive Officer - Group E: joe@ctlgroup.com.au E: marc@ctlgroup.com.au “Private & Confidential”