Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Investor Day (November 2018)
50 slides from Cleanaway Waste Management's investor day presentation, Nov 22, 2018
Slide 1: ASX & Media Release: Investor Day Presentations
ASX & Media Release 22 November 2018 For personal use only FOR RELEASE TO MARKET INVESTOR DAY PRESENTATIONS Please find attached the Company’s presentations to be made to investors at 9.30am (AEDST) today. A live webcast of these presentations can be accessed via the following link: https://webcast.
Slide 2: Capturing the value of the evolving tonne
For personal use only Capturing the value of the evolving tonne 22 November 2018
Slide 3: Disclaimer
Disclaimer For personal use only • Forward looking statements – This presentation contains certain forward-looking statements, including with respect to the financial condition, results of operations and businesses of Cleanaway Waste Management Limited (“CWY”) and certain plans and objectives of the
Slide 4: Event Agenda
Event Agenda For personal use only 09.30 – 10.15 Welcome and Strategic Overview Vik Bansal 10.15 – 10.45 Solid Waste Services Mark Crawford 10.45 – 11.00 Coffee Break 11.00 – 11.30 Liquid Waste & Health Services Tim Richards 11.30 – 12.15 Industrial & Waste Services plus Wrap Up Vik Bansal 12.15 – 1
Slide 5: Strategic Overview
For personal use only Section 1 Strategic Overview Vik Bansal – CEO and Managing Director 4
Slide 6: Dynamics of a successful player in the waste management industry
Dynamics of a successful player in the waste management industry For personal use only High marginal • Network economics are ‘king’ contribution • Route density not hub and spoke Mix of • Large enterprise-level selling ‘2 worlds’ • Contrasted against mass market, consumer-like selling Recurring • Mo
Slide 7: Australia's leading total and integrated waste management company
Australia’s leading total and integrated waste management company – multiple waste streams across multiple geographies For personal use only 115+ 140m+ kWh >320,000 tonnes 4,500+ Licensed Renewable energy generated ~5,900 Vehicles Paper and cardboard recycled Employees infrastructure assets ~660 mil
Slide 8: Our Mission
For personal use only 7 Our Mission
Slide 9: Multiple points of value creation – An Evolving Tonne
Multiple points of value creation – An Evolving Tonne For personal use only Investing in the right ‘package’ of assets across the value chain through the evolving tonne Collections Resource recovery Treatment & Landfill • Operational efficiency • Access to strategic resource • Well located prized as
Slide 10: Footprint 2025: Investment and monetisation of waste value chain
Footprint 2025: Investment and monetisation of waste value chain by understanding economic and social drivers of the EPA Waste Hierarchy For personal use only Reduce AVOID Collections waste generated RE-USE Value of the evolving tonne Resource recovery Increase RECYCLE Resource Recovery ENERGY RECOV
Slide 11: Making a sustainable future possible – waste reduction
Making a sustainable future possible – waste reduction Collections Resource recovery Treatment & Landfill For personal use only Reduce • Key role for society as a whole waste • Reduction in waste e.g. packaging, disposable bags generated • More and compliant source separation means less ‘waste’ Muni
Slide 12: Making a sustainable future possible – resource recovery
Making a sustainable future possible – resource recovery Collections Resource recovery Treatment & Landfill For personal use only • Low recovery rates in Australia – a growth opportunity Increase • Recycling rates similar to Resource UK/EUR – Waste to Energy Recovery is the ‘missing link’ • Key role
Slide 13: Diversion prize – the true value of resource recovery
Diversion prize – the true value of resource recovery and the evolving tonne For personal use only Option A 100% to landfill TARGET ~30% Residuals to Cleanaway landfill* collections TARGET Option B ~70% recovered and diverted Resource Recovery from landfill* Recycling Waste to Energy The diversion p
Slide 14: The diversion prize varies by geography and waste stream
The diversion prize varies by geography and waste stream For personal use only Geography drivers Landfill gate fees Levy + underlying gate fee Landfill gate fee Underlying gate fees vary significantly by state Levy Post levy Large differences by state Current Several large recent increases Sydney Me
Slide 15: Making a sustainable future possible – Treatment & Landfill
Making a sustainable future possible – Treatment & Landfill Collections Resource recovery Treatment & Landfill For personal use only • Proper treatment of hazardous waste to protect human health and environment • Landfills remain a critical part of the hierarchy for residuals and other non-recoverab
Slide 16: Footprint 2025 strategy implementation considers dimensions
Footprint 2025 strategy implementation considers 3 dimensions For personal use only AVOID Value Chain Example RE-USE Value of the evolving 1. Waste stream: putrescible waste tonne through prism of RECYCLE 2. Value chain: waste to energy waste hierarchy 3. Geography: NSW ENERGY RECOVERY TREAT DISPOSE
Slide 17: Solid Waste Services value chain overview
Solid Waste Services value chain overview For personal use only Collections Aggregation Resource Recovery Energy Recovery Disposal Material Recovery Facility Combustion (mixed recyclables - muni) (mixed pute & inert waste) Putrescible Landfill Fleet Sorting & Baling Process Engineered Fuel (recyclab
Slide 18: Liquid Waste & Health Services value chain overview
Liquid Waste & Health Services value chain overview For personal use only Collections Aggregation Resource Recovery Energy Recovery Treatment & Disposal De-packaging & Material Recovery Thermal Treatment Alternative fuels Fleet Base Oil Re-refining Physiochemical Treatment Tank Farms Oil Blending &
Slide 19: Progress on the implementation of Footprint 2025
Progress on the implementation of Footprint 2025… Over $100 million committed to Footprint 2025 greenfield investments since FY16 – all within For personal use only our capital expectations by remaining cash disciplined – plus value accretive acquisitions New material recycling facility constructed
Slide 20: …Plus the transformational acquisition of Toxfree
…Plus the transformational acquisition of Toxfree For personal use only 19
Slide 21: Value Operating Model
Value Operating Model For personal use only 20
Slide 22: Solid Waste Services
For personal use only Section 2 Solid Waste Services Mark Crawford Executive General Manager 21
Slide 23: Solid Waste Services overview
Solid Waste Services overview For personal use only • Market leader in Australia with strong national presence in each capital city and regionally • We serve over 140,000 C&I customers and approximately 90 municipal councils with a fleet of approximately 3,000 vehicles and 3,100 employees • Integrat
Slide 24: SWS: Municipal and Commercial & Industrial market dynamics
SWS: Municipal and Commercial & Industrial market dynamics For personal use only Municipal Commercial & Industrial • Long term contracts 7-10 years • Typically 3 year plus contracts • Significant capex upfront (leasing) • Recurring, ‘sticky’ revenue • ‘Utility type’ revenue • Steady market volumes •
Slide 25: SWS: Waste streams
SWS: Waste streams For personal use only • Majority of the volumes we collect are in a mixed form - Limit to pre-sorting customers are prepared to do and trade-off source separation vs. efficiency • Material recovery rates are a function of the diversion prize (incl. commodity value) and cost to ext
Slide 26: SWS: Value chain example – Municipal waste
SWS: Value chain example – Municipal waste Resources For personal use only Recovered Combustion (WtE) General Transfer Waste ‘Dirty’ MRF Residuals Station Renewable Landfill Biogas Energy Anaerobic Digestion Compost & Garden or ‘FOGO’ (1) Sorting Fertilisers ‘FOGO’ (1) Composting Metals Residuals Co
Slide 27: SWS: Value chain example – Commercial & Industrial waste
SWS: Value chain example – Commercial & Industrial waste Resources For personal use only Recovered Combustion (WtE) Mixed Transfer Putrescible ‘Dirty’ MRF Residuals Station Landfill Biogas Renewable Energy Residuals Mixed Transfer Resource Inert Station Recovery Fac. Process Engineered Fuel Anaerobi
Slide 28: SWS: Footprint overview
SWS: Footprint overview Strength across the value chain – Footprint 2025 will further cement our leadership position For personal use only Resource Energy Disposal Collections Aggregation Recovery Recovery Strong national network of depots Network of prized resource recovery Putrescible landfills in
Slide 29: SWS: Sample of Prized Assets – Melbourne
SWS: Sample of Prized Assets – Melbourne For personal use only South East Melbourne Transfer Station Melbourne Regional Landfill (MRL) Landfill Gas to Energy at MRL 28
Slide 30: SWS: Sample of Prized Assets – Sydney
SWS: Sample of Prized Assets – Sydney For personal use only Sydney Process Engineered Fuel Facility CDS Collections Network and Sorting Facility Erskine Park Transfer Station (1H19) 29
Slide 31: SWS: Sample of Prized Assets – Perth & Brisbane
SWS: Sample of Prized Assets – Perth & Brisbane For personal use only Perth Material Recovery Facility Brisbane Paper & Plastics Resource Recovery Facility 30
Slide 32: Liquid Waste & Health Services
For personal use only Section 3 Liquid Waste & Health Services Tim Richards Executive General Manager 31
Slide 33: Liquid Waste & Health Services overview
Liquid Waste & Health Services overview For personal use only • We serve over 50,000 customers with a specialised liquids fleet of approximately 850 vehicles and 1,300 employees • Prized assets to recover resources, treat and safely dispose of hazardous and non-hazardous liquids • Leading, verticall
Slide 34: LW&HS: Waste Streams and Customers
LW&HS: Waste Streams and Customers For personal use only • Waste streams include hazardous and non-hazardous liquids, hydrocarbons and health services waste • Majority generated by commercial and industrial customers but municipalities also generate liquid and hazardous waste • Management of hazardo
Slide 35: LW&HS: Footprint overview
LW&HS: Footprint overview Strength across Liquids, Technical & Environmental Services and Health Services For personal use only Liquids Technical and Health Services Hazardous, Non-hazardous Environmental Services and Hydrocarbons Strong network of liquids Highly prized and technical National leader
Slide 36: LW&HS: Sample of Prized Assets – Leadership through technology
LW&HS: Sample of Prized Assets – Leadership through technology For personal use only PFAS treatment Hydrocarbons Rutherford Hydrogenation Facility Sydney Brisbane Refinery 35
Slide 37: LW&HS: Sample of Prized Assets – Leadership through technology
LW&HS: Sample of Prized Assets – Leadership through technology For personal use only De-packaging And Recycling E-waste Treatment And Recycling HazPak - Sydney, Melbourne BluBox – Sydney, Melbourne 36
Slide 38: LW&HS: Sample of Prized Assets – Leadership through technology
LW&HS: Sample of Prized Assets – Leadership through technology For personal use only Daniels provides the health services sector with systems and solutions to make healthcare safer ✓ Integrated system ✓ Advanced product technology ✓ Leading in sustainability through re-usable containers ✓ Prized pos
Slide 39: LW&HS: Leadership through technology
LW&HS: Leadership through technology For personal use only Daniels collections system Sharps Sharps Solutions Solutions Storage & Logistics System UNRIVALLED SAFETY EFFICIENCY AND MOVEMENT • Since 1999 it is estimated that Sharpsmart systems • Patented engineered accessory systems to optimise have s
Slide 40: LW&HS: Sample of Prized Assets – Leadership through technology
LW&HS: Sample of Prized Assets – Leadership through technology For personal use only Daniels Post Collections Robotic wash lines Incinerators & Autoclaves 39
Slide 41: Industrial & Waste Services
For personal use only Section 4 Industrial & Waste Services Vik Bansal CEO and Managing Director 40
Slide 42: Industrial & Waste Services overview
Industrial & Waste Services overview For personal use only • We serve over 2,000 customers with specialised equipment, a fleet of approximately 1,000 vehicles and 1,100 employees • Services include drain cleaning, non-destructive digging, vacuum loading and high pressure cleaning • I&WS delivers ove
Slide 43: I&WS: Customers and market dynamics
I&WS: Customers and market dynamics For personal use only Infrastructure Resources Customer • Utilities • Oil & Gas (CSG, LNG, offshore) Segments • Civil infrastructure • Mining • Municipalities • Base metals • Manufacturing • Refineries Market • Mostly contracted work on 1-3 year terms • Typically
Slide 44: I&WS: Services provided
I&WS: Services provided For personal use only High Pressure Water Cleaning Vacuum Loading Pipeline Maintenance and CCTV 43
Slide 45: I&WS: Services provided
I&WS: Services provided For personal use only Non-Destructive Digging Concrete & Cold Cutting 44
Slide 46: I&WS: Footprint overview
I&WS: Footprint overview For personal use only Infrastructure Resources 45
Slide 47: Closing
For personal use only Section 5 Closing Vik Bansal CEO and Managing Director 46
Slide 48: Toxfree integration is on track
Toxfree integration is on track For personal use only Confident of achieving the $35 million in synergies over the next two years Segment and Business Units Alignment to Operating Model & Fit for Purpose Go to Market Harmonisation Organization Design of each sub set. Operating Model and Organisation
Slide 49: Cleanaway: Capturing the value of the evolving tonne
Cleanaway: Capturing the value of the evolving tonne For personal use only • Momentum is gaining for Australia to catch up with other developed markets in resource recovery • Maintaining leadership across identified waste streams, across the value chain and across geographies in Australia remains an
Slide 50: For personal use only
For personal use only 49
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