Midway — H1 FY2021 Earnings Presentation
24 slides from Midway's earnings presentation, Feb 24, 2021
Slide 1: Half Year Result – 1H21 Analyst and Investor Presentation
Half Year Result – 1H21 Analyst and Investor Presentation February 2021
Slide 2: 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 3: Financials 1H21
Financials 1H21 Midway
Slide 4: Overview
Overview 1H21 Results Revenue $150.9M +22.6% • EBITDA – S1 of $7.1M (1H20: $4.2M) on the back of stronger sales volumes • Underlying net profit after tax before significant items of $0.5M (1H20: -$1.2M) n- • Significant items after tax include $1.2M of Job Keeper and a net reduction in the value of
Slide 5: Financial Performance – 1H21
Financial Performance – 1H21 $Am 1H21 1H20 % Change Sales Revenue 150.9 123.0 22.6% Other Income 1.2 4.5 (73.4%) Equity Accounted Share of Profits (1.1) 2.4 (145.8%) Operating Costs** (143.9) (125.7) (14.4%) EBITDA – S(1) 7.1 4.2 69.1% Significant Items(2) 1.5 (8.6) 117.4% AASB 16 impact 1.0 0.9 11.
Slide 6: Cash Flow – 1H21
Cash Flow – 1H21 $Am 1H21 1H20 $Am Change Operating Cash Flow 1.5 (9.1) 10.6 Investing Cash Flow (2.1) (2.4) 0.3 Financing Cash Flow (2.4) 3.7 (6.1) Net Change in Cash (3.0) (7.8) 4.8 Net Debt(1) 41.6 55.4 (13.8) Interest Cover 8.1 14.9 (1) Net debt excludes the Strategy financial liability as this
Slide 7: Financial Performance – 1H21
Financial Performance – 1H21 Midway Group EBITDA-S ($'M) 18.0 1.1 4.0 16.0 1.4 14.0 1.3 7.7 3.4 12.0 10.0 0.5 0.5 0.1 8.0 0.1 6.0 4.0 7.1 2.0 4.2 - 1H20 Volume Supply FX Bone Dry Price SWF (B) PMP QCE MWL Other 1H21 costs (A) (A) Most supply costs are linked to the USD FOB pricing and they are adjus
Slide 8: Balance Sheet – 1H21
Balance Sheet – 1H21 $Am 31/12/2020 30/06/2020 $Am Change Total Current Assets 62.9 54.8 8.1 Total Non-current Assets 198.8 205.8 (7.0) Total Assets 261.7 260.6 1.1 Total Current Liabilities 41.9 41.4 0.5 (1) Non-current Borrowings 35.9 38.9 (3.0) Total Non-current Liabilities 84.9 89.1 (4.2) Total
Slide 9: Trading Conditions
Trading Conditions Midway
Slide 10: Global Pulp and Paper Market
Global Pulp and Paper Market Market and stocks normalisation driving price recovery Strong tissue demand and single use plastic replacement driving woodfibre demand. Latest (05/02/21) prices BHKP (hardwood pulp) $620/ADT and BSKP (softwood pulp) $810/ADT. Dissolving pulp prices recovering back
Slide 11: Japanese Market
Japanese Market Recovery underway Pandemic demand pause in March – October the sole cause of 23% 2020 reduction in woodchip imports. Lowest finished product inventories since 2016. Paper prices holding at pre pandemic levels, along with printing and writing production. Future 2021 pulp produ
Slide 12: Chinese Market
Chinese Market China drives global commodity boom Despite COVID-19 lockdowns woodfibre imports to China increased 7% in 2020. Future Recovered paper import ban effective this year. A surge in virgin fibre production capacity is being developed to replace this historical fibre source. New produ
Slide 13: Business Development
Business Development Midway
Slide 14: Business Development Focus
Business Development Focus Midway is focused on generating greater resilience in its earnings profile: Investing in Leveraging core operations - Progress on developing new Emerging operating site in Tasmania: operational design for layout at Bell 10% Technologies Bay finalised, supplies secured to
Slide 15: Leveraging core operations
Leveraging core operations Progress update – Bell Bay Midway has secured agreement with TasPorts on the operational configuration for the first stage of development to process at Bell Bay. Development approvals are in progress with the EPA and local council. Midway has commissioned the require
Slide 16: Expanding complementary opportunities
Expanding complementary opportunities Progress update – Geelong Grain project Midway has received strong interest from several large Australian based grain exporters regarding access to its export infrastructure at Geelong. Development approvals have been secured for the required Grain infrastru
Slide 17: Investing in emerging technologies
Investing in emerging technologies Global momentum is rapidly building across the investment community, government and business to invest in key decarbonisation technologies: • Forests are a proven and critical carbon sequestration solution. • A concerted effort to develop a robust global voluntary
Slide 18: Future Woodfibre Supply
Future Woodfibre Supply Midway is working to secure new capital and recycle existing assets to develop new plantations in key catchments to build the future woodfibre supply pipeline for Midway. During the period, Midway signed a contract to sell 785ha of land in the Upper Goulburn region for $3
Slide 19: Potential Timber Volumes Growing with Changing Mix (Domestic and Export)
Potential Timber Volumes Growing with Changing Mix (Domestic and Export) Volumes FY20 FY21 FY22 FY23 Comments (000’s GMT) Geelong 683 862 800 700 Excludes grain and softwood Portland 851 372 800 800 Revised volumes (New ABP agreement) Brisbane 231 279 350 400 Hardwood and softwood mix Melville Islan
Slide 20: Key Points
Key Points Global market recovery • Higher pulp prices driven by strong Chinese demand and lower stocks • Growing evidence of capacity expansion in China and tightening of supply • COVID-19 is driving structural change in global pulp and paper markets but underlying net benefit for woodfibre exporte
Slide 21: Attachments
Attachments Midway
Slide 22: Reconciliation of underlying net profit after tax to statutory NPAT
Reconciliation of underlying net profit after tax to statutory net profit after tax (NPAT) 1H21 1H20 Net profit/(loss) after tax (underlying) 1 513 (1,208) Net fair value increment on biological assets (2,008) 9,020 Non-cash interest expense (AASB 15 strategy impact) (845) (528) Job Keeper 1,222 - I
Slide 23: Reconciliation of underlying EBITDA to statutory EBITDA
Reconciliation of underlying Earnings, before interest, tax, depreciation and amortization to statutory Earnings, before interest, tax, depreciation and amortization (EBITDA) 1H21 1H20 EBITDA – S (underlying) 1 7,092 4,214 Net fair value increment on biological assets (2,868) 12,885 Job Keeper 1,745
Slide 24: Questions?
Questions? Midway