Midway — H1 2022 Earnings Presentation
24 slides from Midway's earnings presentation, Feb 24, 2022
Slide 1: 1H22 Results Analyst and Investor Presentation
1H22 Results Analyst and Investor Presentation February 2022
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: Overview: 1H22 Key results
Overview 1H22 - Key results 152.2 cents • Revenue of $91.2M (1H21: 150.9M) due to COVID-19 disruption and China power cuts net tangible • Underlying EBITDA 1 of $1.0M (1H21: $8.0M) due to lower volumes, lower bone-dry asset content and higher foreign exchange rate on a pcp basis backing • Underlying
Slide 4: Financials 1H22
Financials 1H22 Midway
Slide 5: Financial results – 1H22
Financial results – 1H22 $Am 1H22 1H21 % Change Sales Revenue 91.2 150.9 (39.6%) Other Income 2.5 1.2 108.3% Equity Accounted Share of Profits 0.9 (1.1) 181.8% Operating Costs** (93.6) (143.0) 34.5% (1) EBITDA – S 1.0 8.0 (87.5%) (2) Significant Items (0.8) 1.5 (153.3%) Net Fair Value Gain/(Loss) on
Slide 6: Key drivers of performance – 1H22
Key drivers of performance – 1H22 Midway Group EBITDA-S ($'M) 14.0 - 12.0 2.0 4.0 10.0 1.6 8.0 0.9 6.0 5.5 4.0 8.0 2.0 2.0 1.0 - 1H21 PMP Price SWF Volume (A) FX (B) Bone Dry (C) 1H22 (A) The majority of the volume decreased came from Geelong, which was four shipments down on pcp (B) The Group took
Slide 7: Cash flow – 1H22
Cash flow – 1H22 $Am 1H22 1H21 $Am Change Operating Cash Flow(1) (10.3) 1.5 (11.8) Investing Cash Flow (2.9) (2.1) (0.8) Financing Cash Flow 6.8 (2.4) 9.2 Net Change in Cash (6.3) (3.0) (3.3) Net Debt(2) 47.4 43.6 3.8 Interest Cover 4.2 8.1 (1) Operating cashflow includes $6.7M relating to the build
Slide 8: Balance sheet – 1H22
Balance sheet – 1H22 $Am 31/12/2021 30/06/2021 $Am Change (1) Total Current Assets 71.0 59.3 19.7 Total Non-current Assets 201.9 203.6 (1.7) (2) Total Assets 272.9 262.9 10.0 Total Current Liabilities 54.6 46.4 8.2 (3) Non-current Borrowings 33.9 34.9 (1.0) Total Non-current Liabilities 83.4 84.3 (0
Slide 9: Trading Conditions
Trading Conditions Midway
Slide 10: Trading conditions
Trading conditions Global pulp stocks trending lower due to COVID-19 production and supply constraints The high E Globulus price worked as a disincentive for customers and suppressed demand as they searched for cheaper alternatives Improving sales commitments in 2H22 and 1H23 China pulp pric
Slide 11: Ongoing COVID-19 supply chain disruption
Ongoing COVID-19 supply chain disruption Major customers seeking lower priced woodfibre from Vietnam and Thailand to offset higher freight costs o Baltic Dry Index for vessels has increased 78% year-on-year o Bunker fuel costs for the vessels has also seen a approx. 55% increase over the last twel
Slide 12: Business Initiatives
Business Initiatives Midway
Slide 13: Sale of surplus land
Sale of surplus land Midway is progressing the sale of surplus land: o Sale of 785ha of land in the Upper Goulburn region for $3.2 million for settlement in June 2022 o Sale of three properties 1,583ha at Wandong, north of Melbourne, valued at $14.2 million on the balance sheet o Midway will use t
Slide 14: Advancing Plantation Estate Fund
Advancing Plantation Estate Fund Midway sought expressions of interest from domestic and global investors in 1H22 Now in advanced discussions with a major investor to acquire the existing Midway plantation estate and grow that estate over time The Plantation Estate Fund will secure long term f
Slide 15: Progressing Geelong grain terminal
Progressing Geelong grain terminal Progressing project structure and operational arrangements Working with GeelongPort to ensure ship-loader is suitably configured for grain exports Benefits Grain terminal will increase capacity utilisation of North Shore site while timber supply in Geelong ca
Slide 16: Progressing Bell Bay expansion
Progressing Bell Bay expansion Phase One - FY22 Berth 7 commissioned and received first deliveries in October 2021 Initial cargo accumulation underway for softwood woodfibre Phase Two – FY23 Development of the site commenced in December 2021 and scheduled for completion in July 2022 Term of
Slide 17: Outlook
Outlook Midway
Slide 18: Outlook
Outlook 2H22 - Trading conditions Improved trading conditions in first few months of 2H22 But lingering COVID 19 supply disruptions still affecting markets Business initiatives Finalise existing major projects (Plantation Estate, Grain Geelong, Bell Bay expansion) Expedite review of underper
Slide 19: Questions?
Questions? Midway
Slide 20: Attachments
Attachments Midway
Slide 21: Reconciliation of underlying EBITDA to statutory EBITDA
Reconciliation of underlying Earnings, before interest, tax, depreciation and amortization to statutory Earnings, before interest, tax, depreciation and amortization (EBITDA) 1H22 1H21 EBITDA – S 1 977 8,046 Net fair value increment on biological assets 4,264 (2,868) Job Keeper - 1,745 Impairment lo
Slide 22: Reconciliation of underlying NPAT to statutory NPAT
Reconciliation of underlying net profit after tax to statutory net profit after tax (NPAT) 1H22 1H21 Net profit/(loss) after tax - S 1 (3,371) 506 Net fair value increment on biological assets 2,985 (2,008) Non-cash interest expense (AASB 15 Strategy impact) (2,612) (846) Job Keeper - 1,222 Impairme
Slide 23: Export volumes
Export volumes Volumes FY20 (a) FY21 (a) 1H22 (a) Comments (000’s GMT) 12 months 12 months 6 months Geelong 683 848 360 Only woodfibre, excludes grain and softwood Portland 851 296 290 Revised volumes under new ABP agreement Brisbane 231 247 150 Hardwood and softwood mix Melville Island 122 23 40 On
Slide 24: Export shipments by port
Export shipments by port 1H21 2H21 1H22 Site 6 months 6 months 6 months Midway Geelong 9 8 5 Midway Tasmania 10 8 6 Queensland Commodity 3 5 4 Exports Plantation Management - 1 1 Partners 24