Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Macquarie Australia Conference 2018
23 slides from Cleanaway Waste Management's conference presentation, May 3, 2018
Slide 1: Australia's leading total waste management company
Australia’s leading total waste management company Macquarie Australia Conference Presentation - 3 May 2018 ASX: CWY Vik Bansal – CEO and Managing Director
Slide 2: Dynamics of a successful player in the waste management industry
Dynamics of a successful player in the waste management industry High marginal Network economics are ‘king’ contribution Mix of ‘2 worlds’ – Utility Large enterprise-level selling contrasted against mass market, consumer-like selling like front end SME Customers Low share of mind share Recurri
Slide 3: Cleanaway has built a complete asset base and services portfolio
As Australia’s leading waste management company Cleanaway has built a complete asset base and services portfolio 90+ 3,000+ 4,000+ Licensed infrastructure assets Vehicles Employees ~120,000 90+ Commercial & Industrial Municipal Councils Customers ~200 Sites Australia wide ~550 million litres ~130 mi
Slide 4: Currently, our reporting segments comprise
Currently, our reporting segments comprise Solids Collections Solids Post Collections Liquids and Industrial Services Largest solid waste services fleet Landfill assets located in every Largest collector and processor and widest network across mainland state of Australia of waste liquids in Au
Slide 5: Three years ago we started our journey from a good to great company
Three years ago we started our journey from a good to great company 5
Slide 6: The good to great company journey so far
The good to great company journey so far ✓ Rebranded the Company to Cleanaway ✓ Over 80% of our revenues are contracted ✓ Changed sales structures and “Go to Market” approach ✓ Implemented an Internal Sales and Save Desk structure that has reduced customer churn rates ✓ Greatly improved our pricing
Slide 7: Pricing Pricing Pricing
With over 80% of revenues contracted, customer churn is a key driver of performance Over 120,000 Commercial & Industrial customers Save desk limits churn, pricing and margin decline Pricing Pricing Pricing Margin sweet Margin sweet spot spot 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 Years Ye
Slide 8: Financial performance improving
Financial performance improving Net Revenue1 ($million) EBITDA2 ($million) and EBITDA margin (%) EBIT2 ($million) and EBIT margin (%) $1,350.6 $1,320.7 $142.9 $1,301.1 $301.3 $281.3 $122.6 $231.3 22.3% 21.3% $97.5 10.6% 17.8% 9.3% 7.5% FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 NPAT2 ($million) an
Slide 9: Leading to improved shareholder returns
Leading to improved shareholder returns Relative share price performance ASX Code: CWY Cleanaway v ASX100 Industrials Share price: $1.59 (1 May 2018) 1 July 2015 to 1 May 2018 Market Capitalisation: $3.2 billion Index: S&P/ASX100 +113.0% 215% 195% 175% 155% 135% 115% +1.6% 95% 75% 01 Jul 15 01 Oct 1
Slide 10: Optimising the waste value chain - Cleanaway Footprint 2025
Optimising the waste value chain - Cleanaway Footprint 2025 We will extract maximum value through the value chain Landfill/alternative Collections Resource recovery waste disposal Operational efficiency Access to strategic resource Well located prized assets Strong market share position by r
Slide 11: Prized infrastructure assets completed during the last 24 months or in construction
Prized infrastructure assets completed during the last 24 months or in construction stage New paper recycling Engineering upgrade facility and transfer to oil recycling facility station acquired improving product quality New material recycling Brisbane facility constructed and transfer station acqui
Slide 12: Recycling and the China Sword Program
Recycling and the China Sword Program 12
Slide 13: Cleanaway has limited exposure to the change in the recycling markets
Cleanaway has limited exposure to the change in the recycling markets Commercial & Industrial (C&I) and waste oil collections remain the major source of commodities Cleanaway contracts with Municipals are a mix of collection only (50%)1, collection and on sell the comingled waste to third party
Slide 14: Acquisition of Toxfree
Acquisition of Toxfree The acquisition of Toxfree Solutions was approved by the ACCC on 26 April 2018. The transaction is still subject to customary closing conditions including Toxfree shareholder approval and court approval. We are confidant that all approvals will be received with the scheme expe
Slide 15: Acquisition of Toxfree
Acquisition of Toxfree Affirms Cleanaway’s leadership in each of our operating segments by enhancing our existing capabilities A strategically compelling Accelerates the implementation of our Footprint 2025 strategy acquisition Significant capital spend avoided in our Liquids & Industrial Serv
Slide 16: Toxfree's operations
Toxfree’s operations Toxfree operates a strategic national network of prized waste infrastructure including a number of facilities with valuable licenses and treatment technologies Darwin Wyndham Narangba (QLD) Cairns ▪ Treatment facility using PlasCon technology to treat and destroy various Kununur
Slide 17: Acquisition is in country, in sector and in our operating space
Acquisition is “in country, in sector and in our operating space” enhancing most core parts of the Company 119+ 3,900+ 5,550+ Licensed infrastructure assets Vehicles Employees +32% +30% +39% ~140,000 90+ Commercial & Industrial Municipal Councils Customers +17% ~252 Sites Australia wide ~680 million
Slide 18: Reducing risk via multiple sector exposures
Reducing risk via multiple sector exposures Cleanaway Net Revenue by reporting segment and markets FY171 Solids Consolidates and balances: Liquids Solids • Regulated waste Increase in QLD footprint where • Industrial Cleanaway is relatively underweight • Residential • Manufacturing • Commercial •
Slide 19: Integrating Toxfree
Integrating Toxfree Integration of Corporate and Enterprise services Realising the $35 Remove duplication in the operating structure million in synergies over 2 Footprint optimisation – new technologies, increased utilisation, rationalisation years Route density and fleet utilisation optimis
Slide 20: Revenue of global waste companies
Revenue (A$ millions) 20 20 | Waste Management 19,139 Veolia 14,454 Republic Services 13,267 NOTOther Suez 12,181 Remondis 9,825 FORcompanies: A2A SPA 9,449 Waste Connections 5,000 FCC Environmental 4,375 reports, FactSet and estimates. DISTRIBUTION European Metal… 4,067 Clean Harbors 3,170 Stericyc
Slide 21: Five key elements that make Cleanaway Australia's number one waste management company
There are five key elements that make Cleanaway Australia’s number one waste management company Servicing the residential, commercial, industrial, manufacturing, infrastructure, Customer & Waste resources, healthcare and energy sectors Diversity An essential services company with multiple waste
Slide 22: Outlook for FY18 – Excluding the Toxfree acquisition, no change
Outlook for FY18 – Excluding the Toxfree acquisition, no change The major contract wins in FY17 have established a firm base for revenue growth in our Solids businesses and we continue to remain optimistic of continuing improvement in the Liquids & Industrial Services business Cost disciplines r
Slide 23: Questions
Questions 23
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