Midway — Shaw and Partners Investor Conference 2018
18 slides from Midway's conference presentation, May 30, 2018
Slide 1: Shaw and Partners Investor Conference
Shaw and Partners Investor Conference Tony Price Chief Executive, Midway Limited 30 May 2018
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: Corporate Overview
Corporate Overview • Midway is a leading Australian wood fibre exporter, primarily involved in the production and export of high quality woodfibre Tony Price, Managing Director & CEO to producers of pulp, paper and associated products in China and Japan Appointed CEO in 2015 • Founded in 1980, Mid
Slide 4: A leading Australian wood-fibre exporter
A leading Australian wood-fibre exporter Produces and exports high quality woodfibre, Overview of Midway’s business activities headquartered in Geelong Key customers are pulp and paper producers in China and Japan Long relationships with major Japanese customers and a pioneer in developing Chi
Slide 5: Strategically located port and processing facilities
Strategically located port and processing facilities Five Key Export Ports QCE Brisbane Only woodfibre exporter from Brisbane Port – provides geographic and market diversity 15 year lease on a four ha site with the Port of Brisbane for producing, storing & loading Graincorp provides toll ship
Slide 6: Strategic Priorities and Outlook
Strategic Priorities and Outlook May 2018 6
Slide 7: A long history of growth
A long history of growth Over the last 10 years growth has been driven through effective new capital investment Midway total export volumes since 1986 (million GMT) – ~18% CAGR since 1986 Geelong Portland Brisbane 3.00 3.10 2.92 2.18 1.66 1.63 1.46 1.34 1.23 1.23 0.99 1.08 1.07 0.85 0.88 0.97 0.70 0
Slide 8: Supply deficit expected in medium term
Supply deficit expected in medium term Asian hardwood chip balance forecast – demand to outstrip supply 2020 - 2030 Demand is forecast to be relatively stable in the Asian Hardwood Chip Demand & Supply Forecast (‘000 BDMT) short term, but supply is expected to reduce over the medium term, resultin
Slide 9: Woodchip pricing improving
Woodchip pricing improving Japan Woodchip Prices, 2012-2017, and Price Predictions, 2018F-2022F Nominal FOB Prices, Annual Average Australian Australian South African Chilean Vietnamese Year US Douglas-fir Radiata E. globulus Eucalyptus E. globulus Acacia US$ per BDU, FOB US$ per BDMT, FOB 2012 164
Slide 10: Strategic Priorities
Strategic Priorities Good progress continues to be Increasing EBIT over time: made with our Strategic Objectives for FY18 1. OPERATING EFFICIENCIES • Economies of scale • Maximising long term fibre supply by replanting • Margin expansion existing land, securing contracts with third party • Cost mana
Slide 11: Business Growth – Focussed on core and related business activities
Business Growth – Focussed on core and related business activities Key areas of expertise Plantation and land Harvesting and logistics Processing and materials Marketing and shipping Management • Existing freehold estate • Extensive experience in • Management of woodfibre • Market most of own • Expe
Slide 12: Finalised acquisition of Plantation Management Partners Pty Ltd (PMP)
Finalised acquisition of Plantation Management Partners Pty Ltd (PMP) PMP • Settled in October 2017 • Privately-owned plantation management business with over 70,000 ha of plantation under management in Northern Australia and SE Asia • 34,000 ha of Acacia on Melville Island (NT) • 13,000 ha plantati
Slide 13: Strategic Investment – ADDCO Fibre Group
Strategic Investment – ADDCO Fibre Group • Strategic investment (25%) in ADDCO Fibre Group • ADDCO Fibre Group provides forestry supply chain and logistics services to clients in the Australasian forestry and wood processing sectors. • ADDCO Fibre Group Limited was founded in 2017 and is based in Mo
Slide 14: Diversified Geographic Footprint
Diversified Geographic Footprint • Midway Geelong (head office) • QCE – Brisbane • SWF – Portland • Midway Tasmania • ADDCO – Mt Maunganui (NZ) • PMP • Cambodia • Laos • Singapore • Melville Island 14
Slide 15: FY18 Outlook
FY18 Outlook FY18 results on track with market earnings forecasts range • Full year results on track despite lower than expected H1 • Higher sales volumes in 2H18 • Positive price movement - 8% annual price rise with Japanese customers in 2H18 • Contribution from chip trading activities Contribution
Slide 16: Appendix
Appendix 16
Slide 17: Board of Directors – overseen strong growth
Board of Directors – overseen strong growth Greg McCormack Founding Director of Midway in 1980 and has a long-term commitment to the Australian forest products industry, holding senior positions Non-Executive Chairman with both the National and Victorian Association of Forest industries (having serv
Slide 18: Management team – over 15 years average service
Management team – over 15 years average service Glen Samsa Glen brings over 20 years of industry expertise and is the Chief Executive Officer of the recently acquired Plantation Management General Manager - Plantations Partners. He has extensive knowledge and skills in forestry analysis and valuatio