Slide 1: collecting today. creating tomorrow.
collecting today. creating tomorrow. FY24 Results Presentation | August 2024 collecting today. creating tomorrow. Investor Presentation | 1
Slide 2: Disclaimer
Disclaimer The following disclaimer applies to this presentation. You should read this may have on Close the Loop. This presentation has been prepared without taking disclaimer carefully before reading or making any other use of this presentation or account of any person’s investment objectives, fin
Slide 3: FY24 Results Briefing agenda and presenters
04 Highlights Presenters: 05 Financial Summary FY24 Results Briefing 26 August 2024 10 Financial statements Joe Foster Group CEO 13 Outlook 14 About Close the Loop Marc Lichtenstein Group CFO collecting today. creating tomorrow. Investor Presentation | 3
Slide 4: FY24 Highlights
FY24 Highlights Achieved guidance and delivered growth TOTAL REVENUE NPATA CASH ON HAND $219m $26m $41m Up 59% on pcp Up 87% on pcp, After one off earnout and achieving guidance amortisation of $14.7m payment and investment in of over $200m and EPSA of 4.9c working capital EBITDA CASH CONVERSION NET
Slide 5: Delivered successive record results
Delivered successive record results • Since listing management has consistently demonstrated of due diligence and expectations the ability to grow revenue through the organic and • ISP Tek Services (now rebranded Close the Loop Renew inorganic deployment of capital Solutions) has grown during the ye
Slide 6: Revenue Mix FY22 - FY24
FY22 FY23 South FY24 South South Africa Africa Africa 9% 6% 9% Europe Europe 4% Europe 4% Australia 4% 32% Australia Australia North 55% North 68% North America America America 19% 58% 32% North America Australia South Africa Europe North America Australia South Africa Europe North America Australia
Slide 7: EBITDA Mix FY22 – FY24
FY22 South FY23 FY24 South Africa South Africa 3% Africa 5% 9% Europe Australia Australia Europe 7% Europe 18% 3% Australia 35% 4% 54% North North North America America America 74% 36% 52% North America Australia South Africa Europe North America Australia South Africa Europe North America Australia
Slide 8: Cash and Cash from operations
Commentary • 71% cash conversion vs. EBITDA (targeting 75%) • $41m cash on hand, a $9m reduction on pcp impacted by: o US$5m earnout payment o Additional $22m investment in working capital associated with the growth of the business • $4m reduction in borrowings in FY24 • Cash on hand provides option
Slide 9: Cashflow Waterfall FY24 ($,000)
Cashflow Waterfall FY24 ($,000) collecting today. * Earnout for previous business acquisitions creating tomorrow. Investor Presentation | 9
Slide 10: Income statement
FY22* FY23 FY24 Commentary ($m) ($m) ($m) Revenue (excl other income) 89.2 135.9 213.0 • Material growth in revenue • Achieved EBITDA guidance Cost of Sales 60.9 88.3 132.9 • Depreciation of $6.3m and business combination Gross Profit 28.3 47.6 80.1 amortisation of $14.7m Opex 11.4 23.3 35.2 • $9.8m
Slide 11: Balance Sheet
FY22 FY23 FY24 Commentary ($m) ($m) ($m) Assets • Investment in working capital Cash and equivalents 10.3 49.5 40.6 Trade and other receivables 21.1 26.1 36.1 o Trade and other Inventories 5.4 15.9 20.0 receivable increase Other 3.2 5.1 3.1 o Inventory growth Total current assets 40.0 96.7 99.8 o De
Slide 12: Cash flow statement
FY22 FY23 FY24 Debt commentary ($m) ($m) ($m) • US$38.8m senior secured term Receipts From Customers 74.7 127.2 205.2 loan, undrawn facilities of US$7.5m revolver and US$5.0m deferred drawdown provided by Pricoa Payments To Suppliers (76.5) (106.8) (173.3) Private Capital • All loans mature in 4QCY2
Slide 13: FY25 Outlook
ORGANIC GROWTH ORGANIC GROWTH GROWING HP CERTIFIED INCREASING ENGAGEMENT REFURBISHED RELATIONSHIP WITH TIER-1 PACKAGING GLOABLLY – PRODUCT AND CUSTOMERS IN SOUTH AFRICA GEOGRAPHICAL EXPANSION AND AUSTRALIA ACQUISITION OF FEEDSTOCK EFFICIENCIES AND SCALE WITH FROM OTHER OEMS AND ITAD OPENING OF MEXIC
Slide 14: Locations
Legend • Resource Recovery Current locations • Packaging Locations • IT Refurbishment Future locations
Slide 15: Ecosystem of clients, partners and providers
Ecosystem of clients, partners and providers collecting today. creating tomorrow. Investor Presentation | 15
Slide 16: Ecosystem of clients, partners and providers
Ecosystem of clients, partners and providers collecting today. creating tomorrow. Investor Presentation | 16
Slide 17: Macro and Regulatory Tailwinds
Australia • Australian Packaging Covenant o Targeting 100% of packaging nationwide to be reusable, recyclable, or compostable by 2025 • Recycling and Waste Reduction Bill o Bans the export of waste glass, plastics, tyres, and paper Europe • Right to Repair Directive o Aims to extend product lifecycl
Slide 18: Company Snapshot
Staff Operations: Company >380 North America Core Activities: Australia Collect & Create Snapshot Segments 2 Europe South Africa EPSA CLG 531.8m $168m 41m $83m 4.9c ASX Code Shares on issue Market cap FY24 Cash FY24 Debt Major Shareholders Foster Packaging 12.23% 12-month relative Omniverse 11.3% sh
Slide 19: collecting today. creating tomorrow.
collecting today. creating tomorrow. Investor enquiries: Warrick Lace 0488 335 815 investors@closetheloop.com.au collecting today. creating tomorrow. Investor Presentation | 19