Myeco Group Ltd · ASX:MCO
Myeco — Investor Presentation (October 2018)
14 slides from Myeco's investor presentation, Oct 16, 2018
Slide 1: Investor Presentation October 2018
(ASX: SES) INVESTOR PRESENTATION October 2018 1
Slide 2: Investment Summary
SECOS Group (ASX: SES) is a leading global producer of eco- INVESTMENT friendly bioplastic materials from its patented bio-based resin technology SUMMARY Investment highlights: • Proven technology with a strong and growing blue-chip customer base • Bioplastic sales growing at >90% p.a. to $11.6
Slide 3: Rapid Growth in the Global Bioplastics Market
Strong positive bioplastic demand dynamics RAPID GROWTH underpinned by: IN THE GLOBAL BIOPLASTICS Bans on single-use plastic bags are spreading, most recently in Australia, Malaysia, Sri Lanka, Canada, China, the EU and USA MARKET China’s ban on plastic waste imports is putting pressure on Australia
Slide 4: Positioned to Capitalise on Strong Bioplastic Demand
POSITIONED TO CAPITALISE ON STRONG BIOPLASTIC DEMAND The surging cost of Australian landfill SECOS is strategically positioned to capitalise on the rapid global growth in demand for sustainable plastics Recent investment provides capacity to expand Historic and planned landfill levies per Australian
Slide 5: SECOS' Bioplastic Strategy is Delivering Results
SECOS’ Bioplastic Strategy is Delivering Results ▪ Strategically positioned as a global supplier of bioplastic products ▪ SECOS is benefitting from the shift from traditional plastic with bioplastics sales driving growth ▪ Higher-margin bioplastic sales are expected to grow >90% in FY19 to $11.6m, r
Slide 6: Blue-Chip Global Customer Base in Environmental Films, Bags and Resin
BLUE-CHIP GLOBAL CUSTOMER BASE IN ENVIRONMENTAL FILMS, BAGS AND RESIN SECOS Group (ASX: SES) 6
Slide 7: Significant Recent Operational Turnaround
SIGNIFICANT √ Malaysian film business achieves trading RECENT profitability (March 2017) OPERATIONAL √ Restructure and upgrade of Nanjing, China resin TURNAROUND plant (October 2017) √ Sale and leaseback of Malaysian facility releases $2.9m in funds (settlement November 2018) √ New Malaysian resin p
Slide 8: Newly-Launched Bioplastics Plant in Malaysia
Newly-Launched Bioplastics Plant in Malaysia ▪ SECOS expects to increase bioplastic resin sales rate seven- fold, from the current annual revenue run-rate of $1 million, to more than $7 million by June 2019 ▪ Strong forward order pipeline from existing customers ▪ More than 10 potential new customer
Slide 9: Strategic Review of Australian Traditional Films
STRATEGIC REVIEW ▪ As announced to the ASX on 10 October 2018, SECOS has OF AUSTRALIAN identified opportunities to significantly improve the Company’s performance by strengthening its focus on bioplastics while TRADITIONAL FILMS reducing exposure to underperforming traditional plastics ▪ SECOS’ Melb
Slide 10: Hygiene Film is a Strong Growth Opportunity
HYGIENE FILM IS A STRONG GROWTH ▪ Consumer demand continues to grow for compostable hygiene products, with feminine care and baby diaper OPPORTUNITY products a key addressable market ▪ SECOS is well-placed to benefit strategically from this major market as it shifts toward sustainable and bio- based
Slide 11: Stronger Balance Sheet Positions SECOS for Growth
STRONGER ▪ SECOS anticipates reducing net debt by $3.8 million between 30 June and 31 December 2018, BALANCE SHEET driven by: POSITIONS • Financial settlement of sale and leaseback of SECOS FOR Malaysian plant (expected to reduce net debt by GROWTH $1.3 million) • Conversion of Notes valued at $1.2
Slide 12: Corporate Snapshot
CORPORATE SECOS Group Ltd (ASX: SES) SNAPSHOT ▪ 239m shares on issue Richard Tegoni Stephen Walters ▪ Market cap of AU$17m at 7.2c/share Executive Chairman Managing Director ▪ Top 20 hold 60% of issued capital ▪ 77% Australian and 23% overseas shareholders ▪ Management and staff own 33.6% of company
Slide 13: Investment Highlights
SECOS Group Ltd (ASX: SES) INVESTMENT An established cleantech business, positioned in the rapidly growing global market for environmentally friendly bioplastic resins HIGHLIGHTS Bioplastic sales growing rapidly at over 90% p.a. to $11.6 million in FY19 (est.) Newly commissioned resin production cap
Slide 14: Disclaimer
DISCLAIMER Forward-looking statements disclaimer This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation: (i) estimates of future earnings; (ii) estimates of future production and sales; (iii) estimates of future cash costs; (iv) estim