Cleanaway Waste Management Ltd. · ASX:CWY

Cleanaway Waste Management — Transpacific Industries Group — FY2014 Earnings Presentation

32 slides from Cleanaway Waste Management's earnings presentation, Aug 19, 2014

  1. Slide 1: FY14 Results Presentation

    Transpacific FY14 Results For personal use only Presentation Robert Boucher – CEO Stewart Cummins – CFO 19 August 2014

  2. Slide 2: Disclaimer

    Transpacific 2014 Financial 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 a

  3. Slide 3: Agenda

    Transpacific 2014 Financial Year Results Agenda For personal use only Achievements Financial Summary and Overview Robert Boucher, CEO Landfill Rectification and Remediation Review Divisional Underlying Results Financial Management Stewart Cummins, CFO Underlying Adjustments Capital Structure Strateg

  4. Slide 4: Achievements

    Transpacific 2014 Financial Year Results Achievements For personal use only Safety   Total recordable injury frequency rate reduced by 33% from 15.5 to 10.4 Divestment   Successfully completed divestment program:  $885 million gross proceeds from New Zealand business program  $219 million gros

  5. Slide 5: Financial Summary and Overview

    Transpacific 2014 Financial Year Results Financial Summary and Overview For personal use only Statutory  Total revenue of $1,889 million results  Profit after income tax attributable to ordinary equity holders of $11.5 million  Earnings per share 0.7 cents  Totalled $81 million net loss: Signifi

  6. Slide 6: Landfill Rectification and Remediation Review

    Transpacific 2014 Financial Year Results Landfill Rectification and Remediation Review For personal use only  Concerned that we were not achieving best practice standards in relation to a number of landfill sites  Appointed Civil & Environmental Consultants, Inc., a specialist US landfill engineer

  7. Slide 7: Landfill Rectification and Remediation Review (cont'd)

    Transpacific 2014 Financial Year Results Landfill Rectification and Remediation Review (cont’d) For personal use only Why the  Rectify historic operational issues and defects largely around leachate and gas management provision has  Reflect a fuller engineering scope of work for remediation activi

  8. Slide 8: Landfill Rectification and Remediation Review (cont'd)

    Transpacific 2014 Financial Year Results Landfill Rectification and Remediation Review (cont’d) For personal use only Operating Landfills Type Year Opened Estimated Years Left Erskine Park, NSW Inert 1994 3 Clayton, VIC – 3 sites Putrescible/Inert Between 1987 and 2001 1 to 2.5 New Chum, QLD Inert 1

  9. Slide 9: Key Highlights of Underlying Results

    Transpacific 2014 Financial Year Results Key Highlights of Underlying Results (1) For personal use only Australian Underlying Net Interest Waste Management Expense Revenue $1,409.7m Down 3.3% $76.7m Down $39.6m Australian Underlying Operating Waste Management Cash Flow(2) Underlying EBITDA $272.5m D

  10. Slide 10: Divisional Underlying Results

    Transpacific 2014 Financial Year Results Divisional Underlying Results For personal use only A$ million Revenue EBITDA EBIT FY14 FY13 % change FY14 FY13 % change FY14 FY13 % change Cleanaway 911.8 924.7 -1.4% 189.8 194.2 -2.3% 98.8 92.4 6.9% Industrials 485.0 523.6 -7.4% 90.1 107.4 -16.1% 60.7 75.0

  11. Slide 11: Australian Waste Management Underlying Results FY13 to FY14

    Transpacific 2014 Financial Year Results Australian Waste Management Underlying Results FY13 to FY14 For personal use only 320 Australian Waste Management EBITDA Bridge FY13 to FY14 Divisional FY13 to FY14 change 300 (4.4) Cleanaway (17.3) 1500000 Collections Post Collections 280 295.5 -500000 (1.5)

  12. Slide 12: Cleanaway

    Transpacific 2014 Financial Year Results Cleanaway A$ million FY14 2H14 1H14 FY13 FY14 v FY13 For personal use only Commercial & Industrial 603.8 294.6 309.2 589.9 2.4% Municipal 197.1 96.6 100.5 199.0 -1.0% Post Collections (excl levies and carbon tax) 125.3 61.5 63.8 135.5 -7.6% Levies and carbon

  13. Slide 13: Cleanaway (cont'd)

    Transpacific 2014 Financial Year Results Cleanaway (cont’d) For personal use only Commercial & Industrial Municipal Post Collections A$ million FY14 FY13 % A$ million FY14 FY13 % A$ million FY14 FY13 % Revenue 603.8 589.9 2.4% Revenue 197.1 199.0 -1.0% Revenue 125.3 135.5 -7.6%  Volume:  EBITDA ma

  14. Slide 14: Industrials

    Transpacific 2014 Financial Year Results Industrials For personal use only A$ million FY14 2H14 1H14 FY13 FY14 v FY13 2H14 v 1H14 Revenue 485.0 238.1 246.9 523.6 -7.4% -3.6% EBITDA* 90.1 45.3 44.8 107.4 -16.1% 1.2% EBITDA Margin* 18.6% 19.0% 18.1% 20.5% EBIT* 60.7 30.4 30.3 75.0 -19.0% 0.5% EBIT Mar

  15. Slide 15: Industrials sub-segments

    Transpacific 2014 Financial Year Results Industrials Energy, Minerals and Remediation Hydrocarbons Technical Services For personal use only A$ million FY14 FY13 FY14 v FY13 A$ million FY14 FY13 FY14 v FY13 A$ million FY14 FY13 FY14 v FY13 Revenue 218.9 221.6 -1.2% Revenue 115.6 130.4 -11.3% Revenue

  16. Slide 16: New Zealand

    Transpacific 2014 Financial Year Results New Zealand For personal use only NZ$ million FY14 2H14 1H14 FY13 FY14 v FY13 2H14 v 1H14 Revenue 432.9 206.9 226.0 437.9 -1.1% -8.4% EBITDA* 115.9 59.4 56.5 103.7 11.8% 5.2% EBITDA Margin* 26.8% 28.7% 25.0% 23.7% 13.1% 14.9% EBIT* 78.4 40.1 38.3 63.6 23.3% 4

  17. Slide 17: Key Highlights – Financial Management

    Transpacific 2014 Financial Year Results Key Highlights – Financial Management For personal use only  1.5 cents per share, fully franked Dividend  Book close on 29 August 2014 with payment date of 8 October 2014  Intention to pay regular dividends of 50-75% of underlying NPAT (subject to Board po

  18. Slide 18: Group Income Statement – Statutory and Underlying Results

    Transpacific 2014 Financial Year Results Group Income Statement – Statutory and Underlying Results For personal use only A$ million Statutory Results Underlying Adjustments Underlying Results % FY14 FY13 FY14 FY13 FY14 FY13 change Revenue from total waste management 1,409.7 1,457.4 - - 1,409.7 1,457

  19. Slide 19: Group Income Statement – Statutory and Underlying Results

    Transpacific 2014 Financial Year Results Group Income Statement – Statutory and Underlying Results For personal use only A$ million Statutory Results Underlying Adjustments Underlying Results % FY14 FY13 FY14 FY13 FY14 FY13 change Net interest expense (64.5) (103.3) - 0.3 (64.5) (103.0) 37.4% Non-ca

  20. Slide 20: Statutory Profit Reconciliation to Underlying Profit

    Transpacific 2014 Financial Year Results Statutory Profit Reconciliation to Underlying Profit For personal use only A$ million FY14 FY13 Statutory Profit/(loss) From Continuing and Discontinued Operations After Income Tax (Attributable to Ordinary Equity Holders) 11.5 (218.7) Impairment of assets (1

  21. Slide 21: Balance Sheet

    Transpacific 2014 Financial Year Results Balance Sheet 30 Jun 14 (1) For personal use only A$ million 31 Dec 13 30 Jun 13 Assets Cash 190.1 71.7 76.2  Net cash balance to partially fund SPS Receivables 233.3 293.9 282.6 redemption in September 2014 Inventories 10.7 22.3 165.2  Receivable days outs

  22. Slide 22: Cash Flows

    Transpacific 2014 Financial Year Results Cash Flows For personal use only A$ million FY14 FY13  Ratio of cash flow from operating activities to Underlying EBITDA incl. associates 383.2 412.2 underlying EBITDA 95.1% (pcp: 98.7%)(2) Less share of associates profit (12.4) (5.5) Change in operating ass

  23. Slide 23: Capital Structure

    Transpacific 2014 Financial Year Results Capital Structure For personal use only Net Debt comprises: A$ million 30 Jun 14 31 Dec 13 30 Jun 13 Current interest bearing liabilities 2.0 22.3 21.5  Gross debt reduced to $53.4 million Non current interest bearing liabilities 51.4 803.3 1,032.2 Gross deb

  24. Slide 24: Strategy update

    Transpacific 2014 Financial Year Results Strategy update For personal use only Our strategy revolves around four key components Tuck-in Growth Landfill Productivity Acquisitions How  Drive unit growth  Best practice landfill  Implement initiatives  Create pipeline of through transformed operatio

  25. Slide 25: Closing Comments and FY15 Outlook

    Transpacific 2014 Financial Year Results Closing Comments and FY15 Outlook For personal use only  We have 4 fundamental areas that we must get right : 1. Volumes 2. Pricing 3. Internalisation of waste streams 4. Best practice landfill operations  We have a number of initiatives in progress to achi

  26. Slide 26: Appendices

    For personal use only Appendices 26

  27. Slide 27: Appendix 1: Capital Structure – Net Finance Costs

    Transpacific 2014 Financial Year Results Appendix 1: Capital Structure – Net Finance Costs For personal use only A$ million Statutory Underlying FY14 FY13 FY14 FY13 Interest expense Bank interest 39.1 55.2 39.1 55.2 Commitment fees 3.4 4.0 3.4 4.0 Hedging 10.8 22.0 10.8 22.0 Guarantee/Bond fees 3.7

  28. Slide 28: Appendix 2: Australian Waste Management Underlying EBITDA

    Transpacific 2014 Financial Year Results Appendix 2: Australian Waste Management Underlying EBITDA 1H14 to 2H14 For personal use only 180 Australian Waste Management EBITDA Bridge 2H14 to 1H14 160 (7.4) 140 0.5 0.5 133.1 120 139.5 189.3 A$m 100 80 60 40 20 - 1H14 Underlying EBITDA CWY IND Corp & Ass

  29. Slide 29: Appendix 3: Underlying Divisional EBITDA Adjustments

    Transpacific 2014 Financial Year Results Appendix 3: Underlying Divisional EBITDA Adjustments For personal use only A$ million Statutory Results Underlying Adjustments Underlying Results FY14 FY13 FY14 FY13 FY14 FY13 change Cleanaway (26.9) (36.7) 216.7 230.9 189.8 194.2 -2.3% Industrials 86.7 62.1

  30. Slide 30: Appendix 4: Divisional Underlying Results 2H14 v 1H14

    Transpacific 2014 Financial Year Results Appendix 4: Divisional Underlying Results 2H14 v 1H14 For personal use only A$ million Revenue EBITDA EBIT 2H14 1H14 % change 2H14 1H14 % change 2H14 1H14 % change Cleanaway 444.1 467.7 -5.0% 91.2 98.6 -7.5% 48.0 50.8 -5.6% Industrials 238.1 246.9 -3.6% 45.3

  31. Slide 31: Appendix 5: Capital Structure – Credit Metrics

    Transpacific 2014 Financial Year Results Appendix 5: Capital Structure – Credit Metrics For personal use only Gross Debt/Underlying EBITDA Net Debt/Underlying EBITDA 3.0x 3.0x 2.5x 2.70x 2.56x 2.46x 2.56x 2.5x 2.56x 2.0x 2.0x 2.39x 2.39x 2.37x 2.08x 1.5x 1.90x 1.5x 1.0x 1.0x 0.5x 0.5x 0.14x (0.50x)

  32. Slide 32: Appendix 6: Industrials Division Segment Results

    Transpacific 2014 Financial Year Results Appendix 6: Industrials Division Segment Results 1 For personal use only Industrials Division (A$m) 1H11 2H11 FY11 1H12 2H12 FY12 1H13 2H13 FY13 1H14 2H14 FY14 Technical Services Revenue 126.0 124.6 250.5 120.9 113.6 234.5 113.3 108.3 221.6 113.9 105.0 218.9

Transpacific Industries Group — FY2014 Earnings Presentation on 6ix