Midway — FY2021 Earnings Presentation
27 slides from Midway's earnings presentation, Aug 26, 2021
Slide 1: Full Year Result – FY21 Analyst and Investor Presentation
Full Year Result – FY21 Analyst and Investor Presentation August 2021
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: Overview – FY21 Key Results
Overview FY21 - Key Results 149.2 cents net tangible asset • Revenue up 8.7% to $280.2M (FY20: 257.8M) on back of increased export sales backing • Underlying EBITDA 1 up 5.8% to $14.6M (FY20: $13.8M) with improved margin mix n- • Underlying net profit after tax before significant items of -$0.6M (FY
Slide 4: Financials FY21
Financials FY21 Midway
Slide 5: Financial Performance – FY21
Financial Performance – FY21 $Am FY21 FY20 % Change Sales Revenue 280.2 257.8 8.7% Other Income 2.2 6.5 -66.2% Equity Accounted Share of Profits (1.5) 2.8 -153.6% Operating Costs** (268.4) (255.1) -5.2% (1) EBITDA – SL 12.5 12.0 4.2% (AASB16 leases adjustment - normalised) 2.1 1.8 16.7% (2) EBITDA –
Slide 6: Financial Performance – FY21 EBITDA-S bridge
Financial Performance – FY21 Midway Group EBITDA-S ($'M) 25.0 9.7 8.1 20.0 4.1 1.7 0.8 1.6 4.2 2.1 15.0 0.4 0.7 0.4 10.0 14.6 12.0 12.5 5.0 - FY20 Volume Price Supply Bone Dry FX R&M SWF MWL PMP Others FY21 AASB16 FY21 cost (A) normalisation EBITDA -S (B) (A) Most supply costs are linked to the USD
Slide 7: Cash Flow – FY21
Cash Flow – FY21 $Am FY21 FY20 $Am Change Operating Cash Flow 22.3 11.1 11.2 Investing Cash Flow (5.2) (3.6) (1.6) Financing Cash Flow (15.1) (11.9) (3.2) Net Change in Cash 2.0 (4.4) 6.4 Net Debt(1) (31.5) (39.4) 7.9 Interest Cover 7.7 5.4 (1) Net debt excludes the Strategy financial liability as t
Slide 8: Balance Sheet – FY21
Balance Sheet – FY21 $Am 30/06/2021 30/06/2020 $Am Change Total Current Assets 59.3 54.8 4.5 Total Non-current Assets 203.6 205.8 (2.2) Total Assets 262.9 260.6 2.3 Total Current Liabilities 46.4 41.4 5.0 (1) Non-current Borrowings 34.9 38.9 (4.0) Total Non-current Liabilities 84.3 89.1 (4.8) Total
Slide 9: Business Improvement
Business Improvement Plantation Management Partners Cost reduction initiatives contributed $0.7M EBITDA in FY21 Major export contract signed with a new Chinese customer for acacia woodfibre in FY22 and potential biomass sales from Tiwi Islands Research project with CRC for Developing Northern
Slide 10: Trading Conditions
Trading Conditions Midway
Slide 11: Global Pulp and Paper Market
Global Pulp and Paper Market Market and stocks normalisation driving price recovery World pulp stocks are trending lower and dissolving pulp prices have recovered above 2017 - 2018 levels China pulp prices higher than last market update - now at commercially attractive rates for producers at US$
Slide 12: Key Asian Woodfibre Markets
Key Asian Woodfibre Markets China continues to lead woodfibre recovery Chinese pulp and fibre stocks normalising China woodfibre imports up 25% so far in CY21 Chinese price for E Globulus up US$12.75/BDMT to $180.00/BDMT in CY21 Following ban on imported recycled paper, major Chinese pulp co
Slide 13: New China mills coming on stream
New China 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 require a four million air-dry tonne increase in Chinese pulp production over the next five years When f
Slide 14: Business Development
Business Development Midway
Slide 15: Business Development Focus
Business Development Focus Midway is focused on generating greater resilience in its earnings profile: Investing in Leveraging core operations - Progress on developing Emerging new operating site in Tasmania: operational design for 10% Technologies layout at Bell Bay finalised, supplies secured to
Slide 16: Expanding our Core Business
Expanding our Core Business Bell Bay woodfibre processing development Phase One Timber supply agreements signed with major landholders Initial use of in-field mobile chipping equipment TasPorts providing access to existing shiploader at Bell Bay Berth 7 woodfibre storage facility available f
Slide 17: Expanding complementary opportunities
Expanding complementary opportunities Geelong grain terminal development City of Greater Geelong approved development of grain export facility at North Shore Draft agreement with GeelongPort to load grains, oilseeds and pulses through Corio Quay Berth 4 shiploader Strong interest to utilise Mi
Slide 18: Future Resource Development
Future Resource Development Plantation Estate Investment Vehicle Midway is developing a new plantation investment vehicle using part of the existing Midway estate and new plantings funded by third party investors Midway will identify and select the most suitable sites for plantation establishmen
Slide 19: 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 20: Asset Optimisation
Asset Optimisation Sale of Land Midway has signed a contract to sell 785ha of land in the Upper Goulburn region for $3.2M. Proceeds are expected in FY22 when land unencumbered from trees Three more plantation properties in the Wandong / Kilmore region North of Melbourne will be actively marketed
Slide 21: 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 22: Key Points
Key Points Global market recovery • Rising Chinese demand and lower stocks supporting higher woodfibre export prices • Japanese consumption is recovering to pre-COVID-19 levels Business development • Short-term focus on leveraging our core operations to drive earnings growth • Developing opportuniti
Slide 23: Questions?
Questions? Midway
Slide 24: Attachments
Attachments Midway
Slide 25: Reconciliation of underlying net profit after tax to statutory NPAT
Reconciliation of underlying net profit after tax to statutory net profit after tax (NPAT) FY21 FY20 Net profit/(loss) after tax - SL 1 (637) (430) Lease expense (AASB16 adjustments) (24) (97) Net profit/(loss) after tax (underlying) 2 (661) (527) Net fair value increment on biological assets (1,583
Slide 26: Reconciliation of underlying EBITDA to statutory EBITDA
Reconciliation of underlying Earnings, before interest, tax, depreciation and amortization to statutory Earnings, before interest, tax, depreciation and amortization (EBITDA) FY21 FY20 EBITDA – SL (underlying) 1 12,518 11,993 Lease expense (AASB16 adjustments) 2,114 1,843 EBITDA – S (underlying) 1 1
Slide 27: Sales Volumes Growing with Changing Mix
Sales Volumes Growing with Changing Mix Volumes FY20 (a) FY21 (a) FY22 (f) FY23 (f) Comments (000’s GMT) Geelong 683 848 860 700 Only woodfibre, excludes grain and softwood Portland 851 296 615 650 Revised volumes under new ABP agreement Brisbane 231 247 332 400 Hardwood and softwood mix Melville Is