Midway — Shareholder Meeting (December 2020)
21 slides from Midway's shareholder meeting presentation, Dec 1, 2020
Slide 1: Chairman'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) 1 December 2020 Chairman’s and CEO’s Presentations to Annual General Meeting The last 12 months have been a very testing time for Midway and its shareholders.
Slide 2: Chairman's address: cost reductions and diversification
P a g e |2 In this environment, the Directors are grateful that major institutional investors that acquired Midway shares following the capital raising in September 2018 and major shareholder sell-down in April 2019 have maintained their holding. We are also grateful that our large number of long-te
Slide 3: Board retirement and company information
P a g e |3 years on the Board. His family’s involvement with Midway dates back some 40 years, with his father serving as the Company’s founding Chairman and brothers Laurie and Stuart also serving as directors in the past. Tony retires with our sincere thanks for his wise counsel and with our best w
Slide 4: 2020 Annual General Meeting of Shareholders
2020 Annual General Meeting of Shareholders December 2020 Tony Price Managing Director, Midway Limited
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: Financial Performance
Financial Performance Midway
Slide 7: Financial Performance
Financial Performance 40.0 EBITDA $'M before significant items 30.0 Full year n- 20.0 Gearing ratio 37.1 30% 28.0 28.7 10.0 12.0 0.0 2017 2018 2019 2020 FY20 Market Impacts Interest cover 5.4 times In the last 12 months, Midway woodfibre exports were affected by: • Drop in pulp price due to excess s
Slide 8: Trading Conditions
Trading Conditions Midway
Slide 9: Pulp and Paper Market
Pulp and Paper Market Global Pulp Markets Have Stabilised Over the Past 12 Months Bleached hardwood chemical pulp producer inventory (BHKP) has normalised. BHKP prices have started to rise above a low of $450/ADT for the first time since June 2019. Suzano, the world's largest market pulp produ
Slide 10: COVID-19 Impacts on Pulp Market
COVID-19 Impacts on Pulp Market Biggest short-term impact in Japan Pulp Tissue Paper Packaging Markets Hardwood chip importers in Asia-Pacific Jan - Sept YTD 12,000 Health 10,000 Remote Work 8,000 Thousand BDMT E Commerce 6,000 4,000 Sustainability (#) 2,000 Intervention (##) — Japan China S. Korea
Slide 11: Japanese Market
Japanese Market COVID-19 Impacts Lockdowns and office closures has seen Paper and Board production drop 8.9% with Printing and Writing grades down 16% in the Jan – May period. Recycled paper availability declining as well pushing up prices and reducing the discount to virgin pulp. Most pulp an
Slide 12: Chinese Market
Chinese Market COVID-19 Impacts Fast and hard lockdowns impacted Chinese demand, but appears to be recovering rapidly. Import woodchip volumes on a par with 2019 YTD. Imports from Australia, South Africa and Thailand all down. Future New capacity under construction and announced to come onli
Slide 13: Business Development
Business Development Midway
Slide 14: Business Development Focus
Business Development Focus Midway is focused on investing to achieve greater resilience and diversification in its earnings profile: Improve operational efficiency of existing assets Emerging e.g. increase site utilisation in Geelong and Brisbane, Technologies greater utilisation of harvest and ha
Slide 15: Expanding Core Business
Expanding Core Business Midway has identified and developed the opportunity for the export Regrowth hardwood thinnings areas in NE Tasmania of woodfibre from eucalypt regrowth forests in the east and north-east of Tasmania. Midway has contracted significant wood supply from both Sustainable Timb
Slide 16: Developing Adjacencies
Developing Adjacencies Midway has developed an operating model for grain export services in Geelong, utilising the existing shiploader infrastructure at Berth 4. Midway is targeting to provide bulk grain export services to Australian grain exporters for the 2021/22 export season (from October 20
Slide 17: Emerging Technologies
Emerging Technologies Midway is collaborating with several technology providers to assess opportunities in the following areas: Plantation residue conversion to pellets for delivery to Japanese biomass customers. Converting plantation residue to electricity and heat as well as filtration and ads
Slide 18: Securing Future Timber Supply
Securing Future Timber Supply Midway is seeking to attract new investment into Victoria’s south western plantation forestry catchments to ensure long term supply. Australian Carbon Credit Units will be generated from these new plantations. Midway can provide plantation management and offtake a
Slide 19: Divestment of Non-Core Land Assets
Divestment of Non-Core Land Assets Midway is continuing to pursue opportunities to divest its non-core land. There are 4,076 ha (valued at circa $25 million) north of Melbourne. Much of this land is well suited to commercial and residential development. We have received a firm offer for one
Slide 20: Key Points
Key Points Trading conditions • Global market uncertainty remains but signs of economic recovery in China and Japan. • Major woodfibre contract recently signed with key Chinese customer for H2 FY21. • COVID-19 is driving structural change in global pulp and paper markets but underlying net benefit f
Slide 21: Questions?
Questions? Midway