Myeco Group Ltd · ASX:MCO
Myeco — Secos Group — Shareholder Meeting (November 2023)
23 slides from Myeco's shareholder meeting presentation, Nov 17, 2023
Slide 1: 2023 AGM Presentation
rsonal use only 2023 AGM PRESENTATION 17 NOVEMBER 2023 ASX: SES CHANGING THE WORLD OF PACKAGING SECOS GROUP LIMITED (ASX: SES) 1 AGM PRESENTATION – NOV 2023
Slide 2: Presenters
PRESENTERS rsonal use only James (Jim) Walsh Richard Tegoni Colin Lai Chairman Chief Executive Officer & Chief Financial Officer & Executive Director Company Secretary SECOS GROUP LIMITED (ASX: SES) 2 AGM PRESENTATION – NOV 2023
Slide 3: CEO Presentation
rsonal use only CEO PRESENTATION CHANGING THE WORLD OF PACKAGING SECOS GROUP LIMITED (ASX: SES) 3 AGM PRESENTATION – NOV 2023
Slide 4: Strategic Direction
STRATEGIC DIRECTION SECOS is moving with the evolving regulatory and market landscape ● Divestment of low margin traditional plastic sales business to focus rsonal use only purely on compostable and other sustainable products: namely development and sale of compostable resins and our MyEcoWorld™ fin
Slide 5: Fully Integrated Value Chain
FULLY INTEGRATED VALUE CHAIN rsonal use only Specialist Leading Australian Market Brand in Technical Experts in Biopolymers Manufacturers of compostable bin liner and kitchen Sustainable caddy segment Products SECOS GROUP LIMITED (ASX: SES) 5 AGM PRESENTATION – NOV 2023
Slide 6: Our Brand Has Become the Beach Head of Our Business
OUR BRAND HAS BECOME THE BEACH HEAD OF OUR BUSINESS MyEcoWorldTM brand only launched in 2021 and is now sold in over rsonal use only 1 2,300 Australian stores In December 2022, announced the roll out of MyEcoWorldTM retail 2 brand and other branded products in the USA via the exclusive sales agreeme
Slide 7: Latest Product - MyEco 95% Post Consumer Recycle Waste
LATEST PRODUCT - MYECO® 95% POST CONSUMER RECYCLE WASTE ● SECOS has developed a unique solution for the global problem of recycling soft plastic waste rsonal use only ● MyEco® bin liners are manufactured from 95% recycled post- consumer soft plastic waste ● Is certified to meet Global Recycled Stand
Slide 8: Conversion Assets & Manufacturing
CONVERSION ASSETS & MANUFACTURING 1 Capital investment for FY23 was $0.6 million with over 65% rsonal use only capacity available to support future sales growth 2 Three biopolymer plants in Asia with closure of traditional plastic plant now completed Finished product manufacturing specialises in var
Slide 9: Bioplastic Resin Technology
BIOPLASTIC RESIN TECHNOLOGY SECOS is an integrated developer of bioplastics technology rsonal use only 1 ISOI appointed exclusive agent for sale of Cardia™ resins within LATAM region New converters in FY23 buying Cardia™ resins in Argentina, Uruguay, 2 Peru & Chile, removing reliance on single custo
Slide 10: Regulatory Tailwinds
REGULATORY TAILWINDS Market driven disruption: Brands looking for a way out of conventional plastic rsonal use only Governments & NGOs adopting recycle & new material options Australia’s National Plastics Plan states 70% of plastic packaging needs to be compostable Europe driving towards ren
Slide 11: Bioplastics – Addressable Market Growing
BIOPLASTICS – ADDRESSABLE MARKET GROWING ● Global Bioplastics and Biopolymers Market Size rsonal use only Estimated to Reach a Value USD 63.09 Billion by 2030, at a 22.8% CAGR ● There is a compostable bioplastic alternative for almost all conventional plastic material. ● Often biopolymer products wi
Slide 12: Markets Driving Sales Growth
MARKETS DRIVING SALES GROWTH Market Product Sales Channel Branding Status Australia Compostable Bags – Retail Direct Major Retailers (Coles/Woolworths/Ritchie's IGA) MyEcoBag® In Market/Growing Council FOGO Bags Direct to council Cardia® In Market/Growing rsonal use only Compostable Pet Waste Bags W
Slide 13: Markets Driving Sales Growth (Continued)
MARKETS DRIVING SALES GROWTH (CONTINUED) Market Product Sales Channel Branding Status Middle Compostable Resin/Films Direct to Converter Cardia Resin® In Market/Developing East Compostable Pet Waste Bags Direct to Retailers White Label Soon to Launch rsonal use only Compostable Pallet Wrap Direct to
Slide 14: CFO Presentation
rsonal use only CFO PRESENTATION CHANGING THE WORLD OF PACKAGING SECOS GROUP LIMITED (ASX: SES) 14 AGM PRESENTATION – NOV 2023
Slide 15: FY23 Sales by Product Group
FY23 SALES BY PRODUCT GROUP • Compostable bag sales were up 16.0% on prior 35,000 comparative period (PCP). A large portion of the growth rsonal use only in bag sales reflects the success of the Company’s 30,000 MyEco® branded products and the shift to focus on developing a leading global brand for
Slide 16: FY23 Profit and Loss
FY23 PROFIT AND LOSS $’000 FY23 FY22 Var (%) ● FY23 Group sales of $22.8m decreased by 26.4% Sales 22,836 31,043 (26.4%) impacted by: Cost of Sales (19,691) (26,977) 27.0% rsonal use only - significant loss of resin business, down 51.9% on Gross Profit 3,145 4,066 (22.7%) PCP, from logistic and pand
Slide 17: Gross Margin Recovery
GROSS MARGIN RECOVERY Gross Margin (%) 16.6% rsonal use only 14.6% 13.0% 9.6% H2 FY22 H1 FY23 H2 FY23 Q1 FY24 ● Strategic decision to reduce low margin traditional plastic business and divestment of low margin traditional plastic sales business in Q1 FY24(1) to focus purely on sustainable and compos
Slide 18: Working Capital and Cash Flow
WORKING CAPITAL AND CASH FLOW Cash Flow Movement $’000 Q1 FY23 FY22 FY24(1) rsonal use only Opening Cash 8,422 4,122 11,287 Cash Flows from 31 2,018 (4,060) Operating Activities Cash Flows from (198) (639) (2,442) Investing Activities Cash Flows from (227) 2,938 (747) Financing Activities Net Cash M
Slide 19: Key Investments to Promote Growth and Efficiencies
KEY INVESTMENTS TO PROMOTE GROWTH AND EFFICIENCIES ● Increased people capability through new hires of key personnel to drive development and rsonal use only enhancement of global R&D competencies and growth of MyEco branded products at a global scale ● Focus on brand health with launch of expanded n
Slide 20: Corporate Overview
CORPORATE OVERVIEW ASX Code: SES Board & Executive Members Share Price (14 Nov 2023) 4.4 cents Jim Walsh Non-Executive Chairman rsonal use only Market capitalisation @ 4.4 cents $26.1 million Chief Executive Officer & Executive Richard Tegoni Shares on issue (listed) 593.5 million Director Stephen W
Slide 21: Q&A
rsonal use only Q&A CHANGING THE WORLD OF PACKAGING SECOS GROUP LIMITED (ASX: SES) 21 AGM PRESENTATION – NOV 2023
Slide 22: Forward-Looking Statements Disclaimer
FORWARD-LOOKING STATEMENTS DISCLAIMER This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation: rsonal use only • estimates of future earnings; • estimates of future production and sales; • estimates of future cash costs; • estimates of
Slide 23: rsonal use only
rsonal use only SECOS GROUP LIMITED (ASX: SES) 23 AGM PRESENTATION – NOV 2023