Slide 1: Investor Presentation 1H'24
For personal use only INVESTOR PRESENTATION 1H’24 ASX: CLG 26 February 2024
Slide 2: Disclaimer
Close the Loop Group Disclaimer The following disclaimer applies to this presentation. You should read this disclaimer carefully before reading or making any other use of this Presenters presentation or any information contained in this presentation. By accepting this presentation, you represent and
Slide 3: Delivering our zero waste to landfill promise
Close the Loop Group DELIVERING OUR ZERO WASTE TO LANDFILL PROMISE Close the Loop is a global Collecting from over leader in the fast-growing 260,000 CLG sites For personal use only circular economy $$ $$ Our recovery and sustainable Re-manufacture over solutions reduce waste to landfill by 500,00
Slide 4: Delivering our strategic growth objectives
Close the Loop Group DELIVERING OUR STRATEGIC GROWTH OBJECTIVES ISP Tek Services has delivered: The business (excluding ISP Tek Services) has delivered: For personal use only 1. Repositioned Close the Loop as a 1. Produced strong free cash flow circular economy leader in the US, the world’s largest
Slide 5: Delivering strong financial metrics
Close the Loop Group DELIVERING STRONG FINANCIAL METRICS For personal use only $106.2m $22.7m $15.2m REVENUE1 EBITDA UNDERLYING NPBT Exceeding FY24 guidance of $200m Upgrading FY24 guidance to $44m to Adds back intangible amortisation of $46m $8.3m, a non-cash, business combination adjustment $55.7m
Slide 6: Revenue breakdown
Close the Loop Group REVENUE BREAKDOWN DIVISION 1H’23 REGIONAL 1H’23 For personal use only 4% 12% Australia 36% Recovery USA 20% 64% Packaging Europe 64% South Africa DIVISION 1H’24 REGIONAL 1H’24 6% 4% Investor Presentation Australia 31% Recovery 31% USA Packaging Europe 69% 59% South Africa
Slide 7: Revenue
REVENUE1 Close the Loop Group Commentary: $106.2m For personal use only • First reporting period that includes the full impact of ISP Tek Services, Alliance Paper Exceeding FY24 guidance of $200m and Plastic Recycling Total Revenue ($’m) • Strong growth from Recovery Division driven 120 by increased
Slide 8: EBITDA
Close the Loop Group EBITDA Commentary: $22.7m For personal use only • Recovery Division has performed strongly FY24 guidance upgraded to $44m to $46m • EBITDA as a percentage of revenue at 21% • Packaging EBITDA has been consistent despite shipping and industrial delays with EBITDA ($’m) management
Slide 9: Cash conversion
Close the Loop Group CASH CONVERSION Commentary: $17.2m For personal use only Net cash receipts from customers1 • 76% net cash1 conversion to EBITDA • Investment in working capital Net cash receipts from customers ($’m) • Investment in plant and equipment (TonerPlas, ITAD) 20 • Net debt decreases $1
Slide 10: Income statement
Close the Loop Group INCOME STATEMENT 1H’24 1H’23 Change For personal use only Revenue 103.1 58.6 76% Cost of Sales 65.8 39.4 67% Gross Profit 37.3 19.2 94% Operating Expenditure 17.0 10.2 67% Other Income1 3.0 0.5 500% EBITDA 22.7 9.5 139% Depreciation & Amortisation 11.0 3.2 244% Investor Presenta
Slide 11: Balance sheet
Statement of financial position 31 Dec 2023 30 Jun 2023 Close the Loop Group BALANCE SHEET $’m $’m Assets Cash and cash equivalents 55.7 49.5 Trade and other receivables 29.9 26.1 For personal use only Inventories 19.7 15.9 Other 3.7 5.1 Total current assets 109.0 96.6 Property, plant, and equipment
Slide 12: Cash flow
31 Dec 2023 31 Dec 2022 Close the Loop Group CASH FLOW $’m $’m Receipts from customers 98.3 64.7 Payments to suppliers and employees (81.1) (58.1) Cash flows from operating activities 17.2 6.6 For personal use only Other revenue 1.5 0.5 Interest and other finance costs paid (4.1) (0.7) Business comb
Slide 13: Medium term outlook
Close the Loop Group MEDIUM TERM OUTLOOK • Expansion of ISP Tek Services model into new For personal use only geographies and broadening of product offering for existing and new OEMs • Capitalising on the $1.4bn1 ITAD opportunity in Australia where the Company is strongly positioned to leverage exis
Slide 14: The globe has a circularity problem
Close the Loop Group THE GLOBE HAS A CIRCULARITY PROBLEM THE PROBLEM For personal use only RECOVERY: • A small percentage of consumer electronics is reused • Major OEMs have ambitious ESG targets to increase circularity in the economy • All OEMs will want to partner with providers to achieve these g
Slide 15: HP circularity objectives, Close the Loop providing solutions
Close the Loop Group HP CIRCULARITY OBJECTIVES, CLOSE THE LOOP PROVIDING SOLUTIONS For personal use only Investor Presentation https://www8.hp.com/h20195/v2/GetPDF.aspx/c08636600.pdf
Slide 16: HP circularity objectives, Close the Loop providing recovery and packaging solutions
Close the Loop Group HP CIRCULARITY OBJECTIVES, CLOSE THE LOOP PROVIDING RECOVERY AND PACKAGING SOLUTIONS For personal use only Investor Presentation https://www8.hp.com/h20195/v2/GetPDF.aspx/c08636600.pdf
Slide 17: Investment proposition
Close the Loop Group INVESTMENT PROPOSITION For personal use only Close the Loop is The circular economy is positioned to lead the in its infancy with only a circular economy’s global small percentage of growth being the first to consumer electronics and market due to its deep plastics being recover
Slide 18: Q&A
For personal use only Q&A Investor Presentation Close the Loop Group
Slide 19: Contact us
For personal use only Contact us investors@ctlgroup.com.au Investor Presentation Close the Loop Group