Midway — Shareholder Meeting (November 2021)
25 slides from Midway's shareholder meeting presentation, Nov 29, 2021
Slide 1: Chair's and CEO's Presentations to Annual General Meeting
MIDWAY LIMITED ABN 44 005 616 044 10 The Esplanade, North Shore VIC 3214 T +61 3 5277 9255 www.midwaylimited.com.au MIDWAY LIMITED (ASX: MWY) 29 November 2021 Chair’s and CEO’s Presentations to Annual General Meeting The Board of Directors are pleased that shareholders have seen a turnaround in Midw
Slide 2: Chair's address: emerging technologies, land sales and succession
P a g e |2 Secondly, the Board has also authorised modest investments in emerging technologies in the new carbon economy. It is early days on these emerging technologies and much work needs to be done to demonstrate satisfactory production economics. But activated carbon and biochar offer significan
Slide 3: Board renewal and re-election recommendations
P a g e |3 Mr McKenna also has a deep understanding of Australian agribusiness. He has been CEO and Managing Director of Ruyi Australia for the last five years. Before that he was an Executive Director of AgCap and Managing Director of Lempriere Capital. The Board is optimistic about the opportuniti
Slide 4: 2021 Annual General Meeting of Shareholders
2021 Annual General Meeting of Shareholders November 2021
Slide 5: 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 6: Overview: FY21 Key Results
Overview FY21 - Key Results 149.2 cents net tangible • Revenue up 8.7% to $280.2M (FY20: 257.8M) on back of increased export sales asset • Underlying EBITDA 1 up 5.8% to $14.6M (FY20: $13.8M) with improved margin mix backing n- • • Underlying net profit after tax before significant items of -$0.6M (
Slide 7: FY22 trading conditions update
FY22 trading conditions update 4
Slide 8: Global Pulp and Paper Market
Global Pulp and Paper Market Benchmark pulp paper prices impacted by global markets from lower overall demand in pulp products with the exception of tissue grades ▪ Both hardwood and softwood benchmark pulp prices down due to COVID 19 and power restrictions impacting on supply chains in China ▪ Diss
Slide 9: China Power Rationing Impacts
China Power Rationing Impacts ▪ Power rationing caused production cuts in a range of industries in 3Q CY21 ▪ Biggest impact in September – reportedly now abating ▪ China increasing domestic coal supply to meet demand ▪ Some pulp paper mills reliant on coal affected by power cuts and high coal prices
Slide 10: Key Asian Hardwood Woodfibre Markets
Key Asian Hardwood Woodfibre Markets China market very competitive ▪ Chinese pulp stocks normalising ▪ China woodfibre imports up 16% year-on- year after Q3 CY21. ▪ Vietnam expanding its market share Japan market continues recovery from low base during COVID 19 ▪ Japanese woodfibre demand up 14% in
Slide 11: Key Asian Softwood Woodfibre Markets
Key Asian Softwood Woodfibre Markets ▪ Asian softwood market is up 62% in CY21 on the back of strong demand for packaging partially due to the first half of CY21 ▪ Reduction in recycled paper / pulp availability in China is the main driver of softwood demand increasing ▪ Midway is targeting this hig
Slide 12: New China pulp mills coming on stream
New China pulp mills coming on stream ▪ Global analytics group Hawkins Wright forecasts 21 new Chinese pulp projects commencing in the next few years ▪ Hawkins Wright estimates these pulp mills will result in a four million air-dry tonne increase in Chinese pulp production over the next five years ▪
Slide 13: Strong sales outlook for CY 2022
Strong sales outlook for CY 2022 ▪ Ramping up production to meet renewed demand in CY22 ▪ Around 90% of globulus volume is committed and contracts are pending customer approval ▪ 100% of nitens volume is recommitted to same buyer as last year, awaiting final contract signing ▪ 5-6 vessels of Acacia
Slide 14: Business improvement and development
Business improvement and development 11
Slide 15: Business Improvement
Business Improvement Tiwi Island Project (Plantation Management Partners) ▪ Cost reduction initiatives contributed $0.7M EBITDA in FY21 ▪ Biomass shipment to Japan completed in FY21 ▪ Potential for further biomass sales to Japan in CY22 ▪ Research project with CRC for Developing Northern Australia t
Slide 16: Expanding our Core Business
Expanding our Core Business Bell Bay woodfibre processing development Phase One ▪ Timber supply agreements signed with major resource owners ▪ Initial use of mobile chipping equipment at Bell Bay ▪ TasPorts providing access to existing shiploader at Bell Bay ▪ First chips delivered to facility in Oc
Slide 17: Expanding complementary opportunities
Expanding complementary opportunities Geelong grain terminal development ▪ Strong interest to utilise Midway’s proposed grain terminal from large Australian bulk grain export market participants. ▪ Loading Services Agreement with GeelongPort in place ▪ Engagement commenced with GeelongPort on requir
Slide 18: Investment in Emerging Technologies
Investment in Emerging Technologies Activated Carbon ▪ Midway has signed an MOU with Australian technology company Bygen Pty Ltd to produce activated carbon using woodfibre ▪ Activated carbon binds and filters unwanted chemicals and purifies water in industrial processes ▪ Significant import replace
Slide 19: Managing our timber resource
Managing our timber resource 16
Slide 20: Asset Optimisation
Asset Optimisation Sale of Land ▪ Contracted to sell 785ha of land in the Upper Goulburn region for $3.2M. Will complete after trees harvested by the end of FY22 ▪ In negotiation with parties on the sale of three more plantation properties in the Wandong/Kilmore region north of Melbourne ▪ Midway wi
Slide 21: Green Triangle Future Resource Development
Green Triangle Future Resource Development Plantation Estate Investment Opportunity ▪ Midway is progressing a new plantation estate investment opportunity using part of the existing Midway estate and new plantings ▪ Under the proposed vehicle, Midway will identify and select suitable sites for plant
Slide 22: Participating in the Growing Carbon Economy
Participating in the Growing Carbon Economy Phase One ▪ Midway has entered into a strategic alliance with Climate Friendly to encourage private plantations in Tasmania ▪ Climate Friendly will provide advice and administrative support to private land holders on carbon credits ▪ Midway will provide pl
Slide 23: Summary
Summary Midway
Slide 24: Key Points
Key Points Trading conditions • China power cuts and labor shortages due to the COVID 19 pandemic are causing ripple effects in global supply chains resulting in lower demand for pulp products • Japanese woodfibre demand continuing to recover Business development • Short-term plan has been to levera
Slide 25: Questions?
Questions? 22 Midway