Slide 1: FY20 Half-yearly Results
FY20 Half-yearly Results “Delivering on our strategy” 24 February 2020 (ASX: SES)
Slide 2: Positive Developments
POSITIVE DEVELOPMENTS Revenue Gross Margin EBITDA excl SFA 1600 16.0% 0 1H19 1H20 10800 1400 14.0% 10600 1200 12.0% -500 10400 1000 10.0% GM % $’000 10200 -1000 800 8.0% $’000 #039;000 10000 600 6.0% 9800 -1500 400 4.0% 9600 200 2.0% 9400 -2000 0 0.0% 9200 1H19 1H20 1H19 1H20 -2500 Gross Margin Gross M
Slide 3: Stronger Balance Sheet
STRONGER BALANCE SHEET 2.5 Net Assets 10500 10400 10300 10200 2 10100 10000 9900 9800 9700 1.5 Net Assets Current ratio Jun-19 Dec-19 Jun-19 Dec-19 Debts • Net Assets $10.4m ($9.9m in Jun-19) 1600 1400 1200 • Debt down to $0.9m 1000 800 600 • Cash outflow down by 61.8% to -$0.8m * 400 200 0 • $2.3m
Slide 4: Break Even Within Sight
BREAK EVEN WITHIN SIGHT Quarterly Operating Cash Outflow 2,000 #039;000 1,500 1,000 500 - Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Quarter Ended • Reduced overheads • Improved manufacturing efficiencies • Focus on higher yield product mix • Better inventory management 4
Slide 5: Path to Profitability
PATH TO PROFITABILTY Sales Growth Profile • SECOS strategy to grow higher margin sales ensuring 8.0% 7.0% plant capacity can be allocated to more profitable 6.0% business to optimize working capital. 5.0% 4.0% • This has seen gross margin grow by 86.8% 1H19 vs 3.0% 2.0% 1H20. 1.0% 0.0% • The strateg
Slide 6: Compostable Market Has Arrived
COMPOSTABLE MARKET HAS ARRIVED • Over 130 countries have moved to ban or partially ban the use of single-use plastics. • As a consequence the compostable market continues to grow strongly as biopolymers offer a natural alternative to traditional oil-based plastics. • Regulatory changes drive substan
Slide 7: Outlook
OUTLOOK • Identified areas to expand capacity to capture growth opportunities • Identified future resin grade and film opportunities for new application development • Expecting increased sales & margins from new grades & film applications • Increasing council tender business predicted via FOGO initi
Slide 8: CEO Report
CEO REPORT Chief Executive Officer, Ian Stacey: “SECOS Group delivered an excellent result for the first half highlighted by the significant improvement in operational performance. The Company is focused on achieving profit and becoming cash flow positive in the short to medium term while also maint
Slide 9: 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