Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Investor Day (November 2022)
39 slides from Cleanaway Waste Management's investor day presentation, Nov 28, 2022
Slide 1: Presentation – Strategy Deep Dive (ASX cover letter)
28 November 2022 Company Announcements Office ASX Limited Exchange Office Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam PRESENTATION – STRATEGY DEEP DIVE Please find attached the Strategy Deep Dive presentation that will be discussed at the Company’s analyst and investor briefing to be he
Slide 2: Strategy Deep Dive
Cleanaway Waste Management Limited Australia’s leading total waste Strategy Deep Dive management services provider 28 November 2022
Slide 3: Forward looking statements
Forward looking statements – This presentation contains certain forward-looking statements, including with respect to the financial condition, results of operations and businesses of Cleanaway Waste Management Limited (“CWY”) and certain plans and objectives of the management of CWY. Forward-looking
Slide 4: Introduction
1. Introduction 2. CustomerConnect 3. Data & Analytics and Fleet Optimisation 4. Landfill Optimisation 5. Core Process and Lighthouse Branches 6. Financial Contribution and Capital Allocation 7. Wrap up 8. Questions Presenters: Mark Schubert, Managing Director & CEO Paul Binfield, Chief Financial Of
Slide 5: Introduction
Introduction SENT ; CLEANAWAY)
Slide 6: Our strategic pillars build upon each other to generate superior shareholder value
Our strategic pillars build upon each other to generate superior shareholder value …… Sustainable Customer Solutions • Carbon & Circularity • Supplier of choice Strategic Infrastructure • Innovating to lead Growth • Regulatory tailwinds + Greater Market Share Operational Excellence • Landfill optimi
Slide 7: Enablers
Strategic Infrastructure Growth Sustainable Customer Solutions Operational Excellence 1 Energy from Waste 7 Leadership in Carbon & Circularity 8 LTS Network Optimisation Enablers 9 Hydrocarbons Optimisation 2 C&D Integration of our prized assets with seamless, sustainable and value-for 10 Data & Ana
Slide 8: Enablers
Strategic Infrastructure Growth Sustainable Customer Solutions Operational Excellence 1 Energy from Waste 7 Leadership in Carbon & Circularity 8 LTS Network Optimisation Enablers 9 Hydrocarbons Optimisation 2 C&D Integration of our prized assets with seamless, sustainable and value-for 10 Data & Ana
Slide 9: Enablers
Strategic Infrastructure Growth Sustainable Customer Solutions Operational Excellence 1 Energy from Waste 7 Leadership in Carbon & Circularity 8 LTS Network Optimisation Enablers 9 Hydrocarbons Optimisation 2 C&D Integration of our prized assets with seamless, sustainable and value-for 10 Data & Ana
Slide 10: BP11 - CustomerConnect
BP11- | CustomerConnect CLEANAWAY)
Slide 11: Scope of Business
~250 branches ~250 customer service officers Scope of ~280 sales representatives Business ~350 administrative staff ~ 150k C&I customers and millions of residential customers >3,000 vehicles (heavy vehicles, excluding yellow gear) ~1.6 million services per month (excluding municipal) What we >100 mu
Slide 12: Why are we changing? What is changing?
CustomerConnect supports BluePrint 2030 through the provision of tools, data and digitisation …. Why are we changing? • To improve customer experience and employee satisfaction • To create a competitive advantage and leverage digitisation • To support margin expansion, organic growth and reduce cust
Slide 13: Detailed solution across staged releases aligned to deliver revenue and efficiency benefits
Detailed solution across 3 staged releases aligned to deliver revenue and efficiency benefits… Benefit Customer Service Finance Self-service Customer enquiry escalations Flexible invoice formats Improved Safety Automation of customer/product type Self-service – customer account Customer
Slide 14: Business case for a solution that is secure, supportable and scalable
Business case for a solution that supports desired functionality that is secure, supportable and scalable… Pre-execution phase completed • Total project cost of ~$100m over 4 years (>$8m EBIT benefit p.a.) Business endorsement of Process Design & • Core systems and process platform (60%) plus Requ
Slide 15: BP10 - Data & Analytics / BP12 - Fleet Optimisation
BP10 - Data & Analytics BP12 - Fleet Optimisation
Slide 16: A well-planned and advanced blueprint supported by tailored tools
A well-planned and advanced blueprint supported by tailored tools… Operational Excellence 8 LTS Network Optimisation Enabling better decision making by improving data quality, utilising the wealth of data points collected 9 Hydrocarbons Optimisation and enhancing insight capability 10 Data & Analy
Slide 17: Core programs are progressing well
Core programs are progressing well… FY23-24 FY24-25+ Reporting & Business Intelligence Insights Delivery Advanced Analytics Program Efficiency gains through automation Utilise insights and value drivers to Using analytics to predict future and drive and consistency in metrics improve financial perfo
Slide 18: Reducing the overall cost to serve through improved route density
Reducing the overall cost to serve through improved route density… Targeted Business Development program Developed to aid sales teams improve density of runs, initially within the Solid Waste Services business. Tool developed to geofence targeted areas Working example: • The tool identified a
Slide 19: A key blueprint supported by tailored tools developed by the Data & Analytics team
A key blueprint supported by tailored tools developed by the Data & Analytics team… Operational Excellence Creating a safer and more engaging workplace for our frontline through fleet replacement, improved technology 8 LTS Network Optimisation and analytics 9 Hydrocarbons Optimisation Optimising
Slide 20: Optimise Routes & Reduce Truck Idle Time
1 Optimise Routes & Reduce Truck Idle Time Optimise non-productive time Re-route to improve efficiency 2 Optimise Labour Mix & Fleet Operating Costs Determine optimal Owner-Driver/ Subcontractor mix Manage CPOH (cost per operating hour) 3 Digitise the workshop and review maintenance schedule
Slide 21: Digitising current paper-based maintenance workorders
Digitising current paper-based maintenance workorders Current State 400,000 workorders produced each year, all written by hand on paper (+4,000,000 pieces of paper) Workorders then entered into our operational systems by our Administration teams (double handling) Missing information and lack o
Slide 22: BP5 - Landfill Optimisation
BP5 - Landfill Optimisation CLEANAWAY)
Slide 23: Emission targets for CH4 and CO2
Leading scientific literatures, international agreements, and Nationally Determined Contributions goals provide emission target guidelines We have set a target for each of CO2 and CH4 emissions to keep the world on a 1.5oC trajectory Separating CH4 and CO2 emissions targets drives greater focus on
Slide 24: Captured landfill gas can displace use of virgin fossil fuels
Captured landfill gas can displace use of virgin fossil fuels and offer low carbon energy sources 2 Relevant for Food/garden waste can be 1 waste sector lower carbon energy sources Landfill 3 diversion and landfill gas capture reduce Returning products derived from use of virgin organics back into s
Slide 25: Captured gas can be transformed into products fit-for-purpose for the region
Captured gas can be transformed into products that are fit-for-purpose for the region CH4 DISTRIBUTION END USE CONVERSION 4 LOCAL USE Current moves GENERATOR 1 2 3 CAPTURE WELLS GRID CUSTOMER USE FUGITIVE EMISSIONS INTERIM FLARE COVER COMPRESSOR LOCAL PIPELINE BRICK KILN/CRAFTS ACTIVE FACE 5 CNG LOC
Slide 26: Monthly rate of gas capture from landfills increased by 700,000m3/month
Since July 2022, monthly rate of gas capture from landfills* increased by 700,000m3/month METHANE FLOW IN ‘000M3 PER MONTH NEW CHUM DARDANUP CE Jul 22: 247 m3 CE Jul 22: 333 m3 CE Oct 22: 460 m3 CE Oct 22: 541 m3 Change: +213m3 (+86%) Investments in gas collection Change: +208m3 (+62%) infrastruct
Slide 27: Low carbon fuels and energy can help customers achieve sustainability goals
Low carbon fuels and energy, emissions reductions and learnings can help our customers achieve their sustainability goals WIN CONTRACTS Build capability and maturity in internal carbon management LISTEN TO CUSTOMER NEEDS Set 2030 and 2050 targets with FY22 FORECAST Full Year Results EMISSIONS SE
Slide 28: BP14 - Operating Model - Core Process and Lighthouse Sites
BP14 - Operating Model - Core Process and Lighthouse Sites
Slide 29: Purpose: ensure key activities are completed consistently across the organization
Purpose: To ensure key activities are completed in a consistent way across the organization Why: Bring all sites to a best practice standard which drives a safe, compliant and efficient workplace How: Involve our teams in designing and improving core processes that are accessible to every employee A
Slide 30: Core Processes lead to a safe and compliant workplace
Core Processes lead to a safe and compliant workplace 1 Management of Change Changes implemented via a rigorous process to protect people, plant and environment underway 2 Manage Contract Contracts adhere to scope and deliver value 3 Manage Fixed Asset Assets managed effectively through life cycle,
Slide 31: Purpose: build capability at sites for process improvement
Purpose: To build capability at sites for process improvement and daily management systems Why: Enable sites to be compliant, more efficient and more profitable How: Teaching our teams Lean management techniques for continuous improvement Process improvement Daily management systems Internal capabil
Slide 32: Real example of improvement work at Lighthouse Sites: Safety and Flow
Real example of improvement work underway at Lighthouse Sites Improving Safety and Flow • Relocating weighbridge to create safer interaction with public and increase flow by reducing vehicle and driver time on site BEFORE PROPOSED Eliminate public and truck interactions Remove travel Vehicle Rev
Slide 33: Real example of improvement work at Lighthouse Sites: Generating Capacity
Real example of improvement work underway at Lighthouse Sites Generating Capacity • Reducing dock turnaround time by prestaging loads and rescheduling dockhand availability Truck Unload/Load Time = 51 Minutes Load pre- Load 76% reduction in staged on time on dock dock (39 minutes) Move Bins Move Tru
Slide 34: Real example of improvement work at Lighthouse Sites: Reducing Costs
Real example of improvement work underway at Lighthouse Sites Reducing Costs • Scheduling movements from transfer stations to landfills to reduce wait times • Quick changeover at landfill – drop off trailers and use tractor movers to tip at landfill face, which frees up trucks to return to transfer
Slide 35: Financial Contribution & Capital Allocation
Financial Contribution & Capital Allocation
Slide 36: Momentum building into FY24
Momentum building into FY24 … Operational Excellence 8 LTS Network Optimisation • Coordinated program of projects - fully resourced 9 Hydrocarbons Optimisation • Improving efficiency and eliminating cost 10 Data & Analytics • Initial roll out delivering incremental 11 CustomerConnect contribution 12
Slide 37: Commitment to maintaining a strong balance sheet and Group credit profile
Commitment to maintaining a strong balance sheet and Group credit profile… Optimise operational Effective working Improve capital efficiency capital management efficiency Strong Operating Cash Flow • Improving capital allocation decision-making disciplines Strong Operating Health, Safety and Environ
Slide 38: Wrap up
Wrap up
Slide 39: Questions
Questions
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