ENTYR — H1 FY24 Earnings Presentation
30 slides from ENTYR's earnings presentation, Mar 5, 2024
Slide 1: Half Year Update
Half Year Update 5th March 2024 1
Slide 2: Important Note – Disclaimer
Important Note – Disclaimer Summary information - This presentation (Presentation) Not investment advice - The information contained in this from those expressed or implied by such forward-looking Financial data – All dollar values in Australian dollars (A$ has been prepared by Entyr Limited (Entyr
Slide 3: FY24 H1 Operational Performance
FY24 H1 Operational Performance 3
Slide 4: H1 FY24 Highlights Key Metrics
H1 FY24 Highlights Key Metrics ✓ Offtake volumes secured with OPERATING TYRE domestic and international REVENUE COLLECTION PRICE customers including milestone agreements executed with Trafigura Up 25% (pcp) Up 11% (pcp) to $3.2m to $531 per tonne ✓ Record revenue achieved TYRE COLLECTION ✓ Record ty
Slide 5: Offtake & Collaboration Agreement with Trafigura
Offtake & Collaboration Agreement with Trafigura In December 2023, Entyr signed two milestone agreements with the global trading house to support development and expansion A key strategic milestone for Entyr with a market leader in the global commodities industry, sharing a commitment to innovation,
Slide 6: Continuing upwards momentum in revenue
Continuing upwards momentum in revenue Increasing revenue, volume and price per tonne for tyre collections Total Revenue by Half Year - $'000 Tyre Volumes by Half Year - tonnes 3,200 7,000 2,700 6,000 5,000 2,200 Tonnes 4,000 1,700 3,000 $000 1,200 2,000 1,000 700 0 200 H1 FY22 H2 FY22 H1 FY23 H2 FY
Slide 7: Key Infrastructure Projects - Stapylton
Key Infrastructure Projects - Stapylton Transitioning from pilot to full scale commercial facility (benchmark facility) Infrastructure investment outcomes: ➢ Increase overall site capacity by installing materials handling infrastructure ➢ To facilitate sustained throughput volumes • Reduce process d
Slide 8: Key Infrastructure Projects - Stapylton: Milling & bagging unit
Key Infrastructure Projects - Stapylton Milling & bagging unit The milling and bagging unit receives the recovered carbon black (rCB) after the thermal process and its primary function is to remove any remaining steel, mill the material down to 1mm minus in size and then bag the material into 1 tonn
Slide 9: Key Infrastructure Projects - Stapylton: TDU upgrades
Key Infrastructure Projects - Stapylton TDU Electrical, Hydraulic and Pneumatic upgrade This project upgrades and moves 3 of the critical enabling systems of the thermal reactors. • Electrical - Electrical boards are being fully refurbished / modernised to code and relocated away from the TDU’s. Thi
Slide 10: Infrastructure delivery
% Targeted Updated Project Infrastructure delivery Complete completion date completion date Milling & Bagging unit design and installation 90% 20/02/2024 31/03/2024 TDU electrical upgrade 60% 30/12/2023 31/05/2024 • Significant progress made on key infrastructure projects with TDU gas extraction upg
Slide 11: Pottinger Engagement
Pottinger Engagement Validation of Global Market and Technologies Investment banking and strategic advisory firm, Pottinger was engaged during the period to conduct an extensive global market & technology review for the Board. Development of Strategic Pathways Pottinger was subsequently engaged to w
Slide 12: Successful rCB product trials
Successful rCB product trials Samples produced exceeded specification requirement outlined in the Bridgestone / Michelin white paper for rCB use in Tyre manufacturing Recently, Bridgestone and Michelin collaborated with rCB suppliers to develop a white paper out lining performance requirements for t
Slide 13: Other Achievements
Other Achievements Innovation award The Group received national recognition at the Waste Innovation and Recycling Awards gala dinner held in Melbourne on the 25th of October 2023. The Group received the Innovation Award for its world-leading thermal conversion process for end-of-life tyres. Supercar
Slide 14: Growth Strategy
Growth Strategy 14
Slide 15: FY24 strategic goals
FY24 strategic goals Entyr has made substantial progress on the FY24 strategic goals and is currently on-track for the second half Feedstock revenue Operational capability Offtake Expansion ▪ Grow collection volume to ▪ Complete planned ▪ Sales of 100% of manufactured ▪ Government funding assistance
Slide 16: Strategy outlook
Strategy outlook Entyr is ready to scale up operations and commence expansion with support from Trafigura Entyr’s current position Hybrid proprietary/licensing model • Explore ownership interests in additional Low plants Production scale up and expansion • Expand network of licensees • Upgrade Stapy
Slide 17: FY24 Half Year Financials
FY24 Half Year Financials 17
Slide 18: Profit & Loss
Profit & Loss Improvement in loss before income tax of 47% H1 H1 A$m % FY24 FY23 Revenue Revenue 3.1 2.5 25% ▪ 25% increase in operating revenue YoY Other income 2.9 0.1 280% ▪ 38% increase in tyre collection revenue YoY with record volumes and price Total income 6.0 2.6 131% achieved Operating expe
Slide 19: Balance Sheet
Balance Sheet A$m ASSETS 31 Dec 2023 30 June 2023 % Stable net assets and conversion of receivables into cash Cash and cash equivalents 5.1 1.3 282% Trade and other receivables 3.3 10.0 (67%) Other 0.2 0.2 - Cash Total current assets 8.6 11.6 (26%) ▪ $5.1 million closing position boosted by receipt
Slide 20: Cash Flow
Cash Flow Significant improvement in cash flows and closing balance A$m H1 FY24 H1 FY23 % of $5.1 million Receipts from customers 3.5 2.8 25% Payments to suppliers and employees (8.9) (10.4) 14% Government R&D grant 9.3 8.9 4% Operating Other (0.3) (0.1) (200%) ▪ Includes receipt of R&D tax incenti
Slide 21: Q&A
Q&A 21
Slide 22: Sustainable, Circular Solutions for Our Planet
SUSTAINABLE, CIRCULAR SOLUTIONS FOR OUR PLANET
Slide 23: ENTYR Business Overview
ENTYR Business Overview 23
Slide 24: Entyr Limited: Solving the global waste tyre problem
Entyr Limited: Is an Australian company with unique technology that can play a significant role in solving the global waste tyre problem. Solving the global waste tyre problem by: Cleanly converting end-of-life tyres into valuable products (oil, carbon & steel). Replacing the need for virgin resourc
Slide 25: Investment highlights
Investment highlights The Company is well positioned to achieve operational scale and take advantage of expansion opportunities 1 Invested in excess of $40m over 12 years developing Company owned patented thermal process 2 Stapylton facility has processed more than 2 million tyres on site 3 Tighteni
Slide 26: End-of-life tyres are an unresolved large scale global issue
End-of-life tyres are an unresolved large scale global issue Every year approximately c. 1 billion waste tyres are generated, however, only 10% of tyres are processed and recycled. The remainder of tyres are either stockpiled, buried or burnt. Australia generates approx. 56 million waste tyres annua
Slide 27: Patented thermal desorption unit (TDU) technology
Patented thermal desorption unit (TDU) technology Entyr’s low energy, low emission technology is the only Our clean processing technology is patented in Australia, environmental licensed technology of its type in Australia the USA and with a European patent in progress ▪ Low thermal energy, electri
Slide 28: Manufacturing process
Manufacturing process Entyr is developing a market leading end-to-end tyre recycling solution with further production capabilities to be acquired Purchased and installed Not yet committed Tank Farm Cogeneration Gas Fuel Power plant Condenser Under construction Electricity Gas Collections Tyres 80x80
Slide 29: Business model target markets
Business model target markets Entyr provides tyre collection solution and technology delivering high-value end-products to attractive markets End-of-Life tyre collection market Output markets Process outputs Revenue Uses End users Collection price rCB $525 per t (30%) $200-$1000 per t • Binder aid i
Slide 30: Sustainable, Circular Solutions for Our Planet
SUSTAINABLE, CIRCULAR SOLUTIONS FOR OUR PLANET