Midway — Shareholder Meeting (October 2017)
10 slides from Midway's shareholder meeting presentation, Oct 24, 2017
Slide 1: 2017 Annual General Meeting of Shareholders
2017 Annual General Meeting of Shareholders October 2017 Tony Price Chief Executive, Midway Limited
Slide 2: Agenda
Agenda • Financials • Operations • Market Outlook • Development Strategy 2
Slide 3: Financials – FY17
Financials – FY17 FY17 results exceed pro forma forecasts • Pro forma NPAT of $17.3 million exceeding the forecast of $16.5 million • Pro forma sales were $209.2 million exceeding the forecast of $206.5 million • Pro forma EBITDA was $28.4 million exceeding the forecast of $28.1 million Cash flow po
Slide 4: Operations – Production
Operations • Production • Key focus in 2016/17 was to ensure Prospectus forecast was met • Near record production levels despite wet conditions in Victoria and NSW • Expansion of hardwood woodfibre exports from the Brisbane operation (QCE) 4
Slide 5: Operations – Resources
Operations • Resources • Executed supply agreement with a large forest grower for supply from the Otway and Gippsland regions of a minimum of 937kgmt over six years • Continuing to explore options for the establishment of additional plantation area in the Geelong catchment • Purchased 600ha of produ
Slide 6: Operations – Safety and Environment
Operations • Safety and Environment • Midway Group LTIFR 8.8 for 2016/17, reduced from 10.1 for 2015/16 • The “Be a Legend" Safety leadership training program has been completed across the Midway Group • Currently implementing a pilot behavioural safety observation program at the Geelong site July 2
Slide 7: Acquisition
Acquisition • Proposed purchase of Plantation Management Partners (PMP) • Privately-owned plantation management business with over 70,000 ha of plantation under management in Northern Australia and SE Asia • 34,000 ha of Acacia on Melville Island (NT) • 13,000 ha plantation teak estate in Cambodia •
Slide 8: Market Update
Market Update BEK Pulp – China Price • Strong demand from both China and Japan expected to continue in 2018 750.0 700.0 USD/ADT 650.0 • Supplied most major Chinese customers and the two largest Japanese 600.0 customers 550.0 500.0 • Chinese customer base is diversified - Pulp and Paper 59%, Textiles
Slide 9: Development Strategy
Development Strategy Increasing EBIT over time: Good progress against Strategic Objectives in FY17 1. OPERATING EFFICIENCIES • Economies of scale • The company has continued to maximise • Margin expansion • Favourable demand/ supply dynamics long term wood supply by entering and contracts with large
Slide 10: In Summary
In Summary • Delivered on IPO forecast • Business set up for growth • Market remains strong • A number of growth opportunities being pursued 10