Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — UBS Australasia Virtual Conference 2020
27 slides from Cleanaway Waste Management's conference presentation, Nov 16, 2020
Slide 1: ASX cover letter: Presentation at UBS Australasia Virtual Conference 2020
16 November 2020 For personal use only Company Announcements Office ASX Limited Exchange Office Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam Presentation at UBS Australasia Virtual Conference 2020 Attached is a presentation to be made by the CEO and Managing Director at the UBS Australas
Slide 2: UBS Australasia Virtual Conference 2020
For personal use only UBS Australasia Virtual Conference 2020 Vik Bansal - CEO and Managing Director Brendan Gill - CFO 16 - 17 November 2020
Slide 3: Disclaimer
Disclaimer • Forward looking statements – This presentation contains certain forward-looking statements, including with respect to the financial condition, results of operations and For personal use only businesses of Cleanaway Waste Management Limited (“CWY”) and certain plans and objectives of the
Slide 4: Agenda
Agenda For personal use only Page ❖ Value Creation Story – “Making a sustainable future possible “ 4 ❖ Our Strategic Pillars ❖ PEOPLE 5 ❖ EARTH 10 ❖ MARKETS 12 ❖ ASSETS 15 ❖ FINANCIALS 19 3
Slide 5: Cleanaway's Value Creation Story
Cleanaway’s Value Creation Story • Our Value Creation Story is based on our strategic pillars of People, Earth, Markets, Assets and Financials. For personal use only • Focus on strategic pillars are transformed through our business activities, applying Our Cleanaway Way, to create outcomes for our s
Slide 6: People
People For personal use only WHAT WE DRAW ON • Purpose driven teams • ~70% blue-collar workforce with a strong operating culture • ~85% of total workforce is directly customer facing. • Technical expertise OUR MATERIAL TOPICS • Workforce heath, safety and wellbeing • Talent attraction, development a
Slide 7: People & Culture: Key Metrics
People & Culture : Key Metrics Total Recordable Injury Frequency Rate1 Turnover (%) and Headcount Employee Engagement Survey2 For personal use only Engagement rate Employees (participation rate) 6,50 0 80% 8,0 00 20. 00% 6,015 CAGR -16.1% (86%) 75% 6,015 19. 00% 6,00 0 5,939 7,0 00 70% 18. 00% 6,0 0
Slide 8: People & Culture: 2020 All Employee Engagement Survey Update
People & Culture : 2020 All Employee Engagement Survey Update For personal use only Kincentric’s Australia New Zealand benchmark database is comprised of 738 organisations and approx. 700,000 employee responses. The Cleanaway Executive Cleanaway Overall Average and Top Quartile norms Leadership Team
Slide 9: People & Culture: Engagement Score on Key Dimensions
People & Culture : Engagement Score on Key Dimensions Communication For personal use only My Manager/ Engagement Direction & Cleanaway Cleanaway Supervisor COVID-19 Response Future of Safety Way 100% 83% 82% 80% 80% 75% 74% 71% 64% 60% 40% 20% 0% Engagement Say, Stay and Strive dimensions Safety Fee
Slide 10: Earth
Earth For personal use only WHAT WE DRAW ON • Natural resources consumed in operations (energy, materials, water) OUR MATERIAL TOPICS • Resource recovery and recycling • Environmental impacts and compliance • Climate change • Low carbon energy generation • Greenhouse gas emissions and low carbon ene
Slide 11: Resource Recovery and Emissions Management
Resource Recovery and Emissions Management Resource Recovery Landfill Gas Management Carbon Emissions For personal use only 1.9m GJ Landfill gas 749 kt 43 kt generated CO2-e CO2-e Scope 1 Scope 2 18% 82% flared gas to Converted reduce into electricity impacts • Scope 1 Emissions are subject to NGERS
Slide 12: Regulations favoring a circular economy world
Regulations favoring a circular economy world Energy from Waste For personal use only • Role of Energy from Waste becoming clearer in key states • Policy clarity by state governments will aid investment decisions Landfill levies • Victorian annual levy increases postponed to 1 Jan in response to COV
Slide 13: Markets & Customers
Markets & Customers For personal use only WHAT WE DRAW ON • Millions of direct and indirect customers across all sectors of the economy • Collaboration with JV and R&D partners and regulators • Future Digitised World enabling better customer and employee proposition OUR MATERIAL TOPICS • Customer ex
Slide 14: Defensive GDP-linked Earnings Characteristics
Defensive GDP-linked Earnings Characteristics ❖ Cleanaway’s revenue base is largely underpinned by long-term contracts across For personal use only Solid Waste Services all sectors with a geographically diverse customer base of municipal councils, hospitals, infrastructure, resources, commercial and
Slide 15: Digital interactions – live examples in Municipal segment
Digital interactions – live examples in Municipal segment benefiting customers and employees For personal use only Customer self-service Muni tracking Dispute tracking and Driver: Digitised portal (B2B API) live chat scheduling Schedule a pickup Councils see real-time status Digital logging of custo
Slide 16: Digital future of Cleanaway further improves customer & employee experience
Digital future of Cleanaway further improves customer & employee experience Customers Employees (drivers) For personal use only Self service bookings Single view of customer to support FTSP issue resolution Dynamic remedy of service issues Digitised, informative and accurate run sheets Instant, accu
Slide 17: Process automation: selected examples
Process automation: selected examples : Key to Digitized Cleanaway For personal use only Digitised run sheet Lift to invoice automation All customer requests and schedules routed Instantaneous invoice processing as soon as lift straight through to in-cab run-sheets is completed Turn-by-turn navigati
Slide 18: Data Analytics: route optimization reduces drive time significantly
Data Analytics : route optimization reduces drive time significantly For personal use only Illustration of optimisation results for select routes Before After Dynamic route Reduction in optimisation considering collection drive factors such as, estimated time through collection time, waste optimisin
Slide 19: Assets
Assets For personal use only WHAT WE DRAW ON • An integrated network of prized licenced infrastructure assets • Large fleet of specialised mobile assets • Community and customer relationships OUR MATERIAL TOPICS • Prized Infrastructure as strategic moat • Technology advancement • Asset ready for cir
Slide 20: Footprint 2025 – Acquisitions and Greenfield to continue
Footprint 2025 – Acquisitions and Greenfield to continue For personal use only Collections Resource recovery Energy from Waste Treatment and Disposal ✓ Perth MRF* ✓ Doubled electricity generation ✓ Planning permit for ✓ 2 x WA transfer stations at Melbourne facility Melbourne Regional Landfill ✓ SE
Slide 21: Energy from Waste
Energy from Waste Waste to Energy Construction • Joint Venture with Macquarie For personal use only • ~900 direct jobs • EIS on exhibition • ~1200 indirect jobs • 3-year construction period Operations • 30+ year operation period • ~50 direct jobs • ~95% landfill diversion • ~390k t CO2-e avoided • E
Slide 22: PET Plastic Pelletising Facility
PET Plastic Pelletising Facility Resource recovery Value Chain Extension Construction For personal use only • ~300 direct and indirect jobs Operations • >40 direct jobs • Joint Venture with Pact and Asahi Beverages • Equivalent of ~1 billion of PET plastic bottles recovered • Domestic bottle to bott
Slide 23: Financials
Financials For personal use only WHAT WE DRAW ON • Debt capital • Equity Capital • Reinvested profits OUR MATERIAL TOPICS • Economic contribution THE VALUE WE CREATE • We deliver strong and predictable financial performances • We contribute to the Australian economy through dividends and interest to
Slide 24: Sustained Underlying Earnings Growth Continues
Sustained Underlying Earnings Growth Continues Net Revenue ($million) EBITDA ($million) and EBITDA margin (%) EBIT ($million) and EBIT margin (%) For personal use only CAGR1 +10.0% CAGR1 +15.4% CAGR1 +20.9% NPAT ($million) and NPAT margin (%) NPATA ($million) and NPATA margin (%) Return on Invested
Slide 25: Cash Flows and Shareholder Returns
Cash Flows and Shareholder Returns Operating Cash Flow ($m) Cash Capex ($m) and % of Net Revenue Free Cash Flow ($m) For personal use only CAGR1 +15.7% CAGR1 +64.9 % Tax Refund2 Net Debt ($m) and Net debt / EBITDA3 (x) Dividend (cents) & Payout Ratio (%) Underlying Earnings per share (cents) CAGR1 +
Slide 26: Medium-term EBITDA margin targets
Medium-term EBITDA margin targets For personal use only Solid Waste Services 29.0-29.5% 28.3% 27.0% ❖ FY20 EBITDA margin uplift of 220 bps due to AASB16 26.1% 21.5-22.0% 20.7% ❖ Prior medium-term target was 27% pre AASB16 20.0% 19.1% 15.5-16.0% 15.0% ❖ Revised medium term target is 29% - 29.5% 14.6%
Slide 27: Questions
Questions For personal use only Confidential | 26 26
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