Myeco Group Ltd · ASX:MCO
Myeco — Investor Presentation (November 2019)
17 slides from Myeco's investor presentation, Nov 12, 2019
Slide 1: Changing the World of Packaging – Investor Presentation
Changing the World of Packaging Investor Presentation November 2019 (ASX: SES)
Slide 2: Company overview
Company overview A leading global producer of eco-friendly bioplastics from its patented bio-based resin technology Snapshot SECOS is Australia’s leading Australian Company - listed on Australian Stock Exchange provider of renewable biopolymer SECOS saw significant growth in Bio-Polymer sales ye
Slide 3: Changing Regulatory Environment
Changing Regulatory Environment o Indian Government move to ban (yet to be implemented) single use plastics has driven demand in compostable resin & bags. Some Indian states have mandated compostable/biodegradable replacements o Mexico close to banning single use plastic bags; compostables are being
Slide 4: Market Drivers
Market Drivers Each year approx. 80 million tons of soft plastics is used in packaging (food & consumer) or the production of bags and pouches. Ellen MacArther foundation describes the end-use of this plastic packaging as follows: - 32% of plastic packaging* ends up as unsightly waste in our marine
Slide 5: Options to reduce plastic use
Options to reduce plastic use Increase use of recycle plastic (rPE) in packaging: o Most converters can purchase and use recycle plastic (rPE) in packaging production, however recycle solutions at end of life for plastic packaging remains challenging. o End of life soft plastic recycling is limited,
Slide 6: Options to reduce plastic use
Options to reduce plastic use Oxo-Biodegradable – EU report recommends o ‘Oxo-degradable plastics are not a solution for the environment and that oxo- degradable plastic is not suited for long-term use, recycling or composting’’. Paper alternatives o Production of paper produces 6 times the green ho
Slide 7: SECOS Group – Product Development
SECOS Group – Product Development SECOS Product Pipeline: No. of - Development of new biopolymer resin Resin formulations/ Applications formulations (e.g. Home Compostable; Higher Mechanical Strength formulations). - Development of new film applications/bags/pouches to utilize cast & blown film asse
Slide 8: Group – Capabilities
SECOS Group – Capabilities o SECOS Asian-based production assets have easy access to key biopolymer supply lines & significant Asian based markets. o SECOS is integrated between biopolymer resin and film, which offers advantages for packaging companies wishing to develop new film/bag opportunities.
Slide 9: SECOS – Biopolymer Resin Sales Development
SECOS – Biopolymer Resin Sales Development Resin Sales: - Product Extension has broadened the application opportunities for resin sales to converters: o Home Compostable (food grade) o Higher Mechanical Properties - Extension of sales territories via appointment of new sales agents - More consistent
Slide 10: SECOS – Biopolymer Film Sales Development
SECOS – Biopolymer Film Sales Development SECOS Group: - Pick up in compostable film interest for hygiene & medical applications - New blown line installed in China to cater to narrow-width hygiene and medical film applications and other applications. - Intention is to increase compostable film prod
Slide 11: SECOS – Biopolymer Bag Sales Development
SECOS – Biopolymer Bag Sales Development SECOS Group: - Recycle crisis & cost of land fill has driven the adoption of food organics & garden organic (FOGO) initiatives which often utilize compostable bags to divert food waste to organic treatment stations. - Compostable bags adoption in pet-waste ma
Slide 12: SECOS – Traditional Film Sales Development
SECOS – Traditional Film Sales Development Traditional Film sales of Stellar Malaysia Plant is 12,000 Traditional Film Sales increasing profitability: Traditional plastic sales growing when adjusted to reflect closure of the 11,500 o Improving sales volumes from acquisition of new customers 11,000 S
Slide 13: Company Capitalization
Company Capitalization SECOS Group: - Company valuation improving - Focus on new product development & delivering new grades is adding to new opportunities we seeing in the market - Recycle Crisis; anti-plastic thematic driving interest - 12 month share price high - Company capitalization AU$37mil.
Slide 14: SECOS Group: Company Financials
SECOS Group: Company Financials - Company debt substantially down - Reduction in Convertible Notes on issue - Reduction in funding earlier payment of receipts 14
Slide 15: SECOS Group: Company Financials
SECOS Group: Company Financials Operating Cash Outflow - Operating cash outflow reducing with sales 2,500 2,000 - Disciplined approach to capex investment $'000 1,500 and overheads. 1,000 500 - Improvement in margins: - Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 o Cost down on raw mater
Slide 16: Board & Executive
Board & Executive • Joined SECOS in Oct. 2018; brings 15 years • Joined Board in Sep-2016 polymer experience, and significant turnaround • Former partner of Ernst & Young USA experience. • Previously CEO of Australian of Hoechst SA & Ian Stacey TOTAL Petrochemicals subsidiaries. Donald Haller Jnr Ch
Slide 17: Company Outlook
Company Outlook o Significant increase in the number of Australian Councils adopting Food Organics and Garden Organics (“FOGO”) initiatives which incorporate compostable bag roll out will contribute to increase in compostable bags sales. o SECOS’ compostable and traditional film business continues t