Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Transpacific Industries Group — FY2015 Earnings Presentation
24 slides from Cleanaway Waste Management's earnings presentation, Aug 21, 2015
Slide 1: Transpacific FY15 Results Presentation
Transpacific FY15 Results Presentation 21 August 2015
Slide 2: Disclaimer
Transpacific 2015 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
Slide 3: Agenda
Transpacific 2015 Financial Year Results Agenda Key Points 4 Financial Summary and Overview 5 Divisional Underlying Results 6-9 Financial Management 10-14 Progress Overview 15 Closing Comments and FY16 Outlook 16 Q&A Appendices 17-24 3
Slide 4: Key Points
Transpacific 2015 Financial Year Results Key Points Safety Total recordable injury frequency rate reduced by 24% from 12.6 to 9.6 for continuing businesses Stronger performance from Cleanaway with EBITDA up 4.3% on FY14 Operational Industrials EBITDA down 38.1% on FY14 results Corporate cost
Slide 5: Financial Summary and Overview
Transpacific 2015 Financial Year Results Financial Summary and Overview Statutory Total revenue of $1,384.9 million results Loss after income tax attributable to ordinary equity holders of $23.6 million Loss per share 1.5 cents Significant $77.5 million on impairment of Hydrocarbons assets i
Slide 6: Divisional Underlying Results
Transpacific 2015 Financial Year Results Divisional Underlying Results A$ million Revenue EBITDA EBIT FY15 FY14 % change FY15 FY14 % change FY15 FY14 % change Cleanaway 926.5 911.8 1.6% 198.0 189.8 4.3% 99.0 98.8 0.2% Industrials 445.9 485.0 -8.1% 55.8 90.1 -38.1% 28.9 60.7 -52.5% Associates - - - 1
Slide 7: Cleanaway Underlying Results
Transpacific 2015 Financial Year Results Cleanaway Underlying Results A$ million FY15 2H15 1H15 FY14 FY15 v FY14 2H15 v 1H15 2H15 v 2H14 Commercial & Industrial 594.1 291.3 302.8 603.8 -1.6% -3.8% -1.1% Municipal 180.0 90.0 90.0 197.1 -8.6% 0.1% -6.8% Post Collections (excl levies and carbon tax) 14
Slide 8: Industrials Underlying Results
Transpacific 2015 Financial Year Results Industrials Underlying Results A$ million FY15 2H15 1H15 FY14 FY15 v FY14 2H15 v 1H15 2H15 v 2H14 Net Revenue 445.9 216.8 229.1 485.0 -8.1% -5.4% -8.9% EBITDA 55.8 24.0 31.8 90.1 -38.1% -24.7% -47.1% EBITDA Margin 12.5% 11.1% 13.9% 18.6% EBIT 28.9 11.9 17.0 6
Slide 9: Industrials Underlying Results (cont'd)
Transpacific 2015 Financial Year Results Industrials Underlying Results (cont’d) Technical Services Energy, Minerals and Remediation Hydrocarbons A$ million FY15 FY14 FY15 v FY14 A$ million FY15 FY14 FY15 v FY14 A$ million FY15 FY14 FY15 v FY14 Net Revenue 203.3 218.9 -7.1% Net Revenue 112.3 115.6 -
Slide 10: Cash Flow
Transpacific 2015 Financial Year Results Cash Flow A$ million FY15 FY14 Ratio of cash flow from operating activities to Receipts from customers 1,518.6 2,097.5 Payments to suppliers and employees (1,284.7) (1,746.4) underlying EBITDA 101.1% (pcp: 91.6%)(1) Remediation of landfills (14.9) (8.0) N
Slide 11: Balance Sheet
Transpacific 2015 Financial Year Results Balance Sheet A$ million 30 Jun 15 31 Dec 14 30 Jun 14 Assets Cash 37.0 41.1 190.1 Receivables 227.1 214.8 233.3 Inventories 19.5 14.0 10.7 Other current assets 24.5 25.8 11.7 Property, plant and equipment 862.6 778.2 822.0 Land held for sale 6.6 6.6 6.6 Inta
Slide 12: Capital Expenditure and Landfill Remediation and Rectification Provision
Transpacific 2015 Financial Year Results Capital Expenditure and Landfill Remediation and Rectification Provision Capital expenditure A$ million FY15 FY14 Capital expenditure expected to be between Cleanaway 111.5 99.6 $165 - $190 million in FY16 which includes Industrials 41.9 31.5 the volume pay
Slide 13: Capital Structure
Transpacific 2015 Financial Year Results Capital Structure Net Debt comprises: A$ million 30 Jun 15 31 Dec 14 30 Jun 14 At 1 July 2015 the Company had $229 million of Current interest bearing liabilities 0.7 1.8 2.0 headroom under banking facilities Non current interest bearing liabilities 351.0 1
Slide 14: Melbourne Regional Landfill
Transpacific 2015 Financial Year Results Melbourne Regional Landfill Acquired 28 February 2015 for consideration of $165 million TPI makes annual fixed and volume based payments to Boral Transaction The consideration of $165 million represents 9.3x standalone FY15 EBITDA on a pro-forma basis (
Slide 15: Progress Overview
Transpacific 2015 Financial Year Results Progress Overview Tuck-in Growth Landfill Productivity Acquisitions How Increase customer Increase landfill Increase Increase retention, market capacity and operational profitability share and route internalisation of efficiency through small efficien
Slide 16: Closing Comments and FY16 Outlook
Transpacific 2015 Financial Year Results Closing Comments and FY16 Outlook Transpacific is a very good business with strong fundamentals: Largest waste company in Australia Cleanaway is a strong brand Market leader in every segment we participate in Impressed with the quality of our custom
Slide 17: Appendices Index
Transpacific 2015 Financial Year Results Appendices Index Appendix Statutory Profit Reconciliation to Underlying Profit 18 Group Income Statement – Statutory and Underlying Results 19-20 Capital Structure – Net Finance Costs 21 Underlying Divisional EBITDA Adjustments 22 Divisional Underlying Result
Slide 18: Appendix: Statutory Profit Reconciliation to Underlying Profit
Transpacific 2015 Financial Year Results Appendix: Statutory Profit Reconciliation to Underlying Profit A$ million FY15 FY14 Statutory Profit/(loss) From Continuing and Discontinued Operations After Income Tax (Attributable to Ordinary Equity Holders) (23.6) 11.5 Costs associated with the fleet grou
Slide 19: Appendix: Group Income Statement – Statutory and Underlying Results
Transpacific 2015 Financial Year Results Appendix: Group Income Statement – Statutory and Underlying Results A$ million Statutory Results Underlying Adjustments Underlying Results % FY15 FY14 FY15 FY14 FY15 FY14 change Revenue from Australian waste management 1,384.9 1,409.7 - - 1,384.9 1,409.7 -1.8
Slide 20: Appendix: Group Income Statement – Statutory and Underlying Results (cont'd)
Transpacific 2015 Financial Year Results Appendix: Group Income Statement – Statutory and Underlying Results (cont’d) A$ million Statutory Results Underlying Adjustments Underlying Results % FY15 FY14 FY15 FY14 FY15 FY14 change Net interest expense (13.1) (64.5) - - (13.1) (64.5) 79.8% Non-cash fina
Slide 21: Appendix: Capital Structure – Net Finance Costs
Transpacific 2015 Financial Year Results Appendix: Capital Structure – Net Finance Costs A$ million Statutory Underlying FY15 FY14 FY15 FY14 Interest expense Bank interest 6.5 39.1 6.5 39.1 Commitment fees 1.6 3.4 1.6 3.4 Hedging - 10.8 - 10.8 Guarantee/Bond fees 1.2 3.7 1.2 3.7 USPP Notes 6.0 5.8 6
Slide 22: Appendix: Underlying Divisional EBITDA Adjustments
Transpacific 2015 Financial Year Results Appendix: Underlying Divisional EBITDA Adjustments A$ million Statutory Results Underlying Adjustments Underlying Results FY15 FY14 FY15 FY14 FY15 FY14 change Cleanaway 187.1 (27.0) 10.9 216.8 198.0 189.8 4.4% Industrials (27.3) 86.7 83.1 3.4 55.8 90.1 -38.1%
Slide 23: Appendix: Divisional Underlying Results 2H15 v 1H15
Transpacific 2015 Financial Year Results Appendix: Divisional Underlying Results 2H15 v 1H15 A$ million Revenue EBITDA EBIT 2H15 1H15 % change 2H15 1H15 % change 2H15 1H15 % change Cleanaway Australia 470.2 456.3 3.0% 101.8 96.2 5.8% 48.5 50.5 -3.9% Industrials Australia 216.8 229.1 -5.4% 24.0 31.8
Slide 24: Appendix: Capital Structure – Credit Metrics
Transpacific 2015 Financial Year Results Appendix: Capital Structure – Credit Metrics Note: Underlying EBITDA is used in the calculation of credit metrics as it is considered to better reflect the ongoing position of the Group 24
Transpacific Industries Group — FY2015 Earnings Presentation on 6ix