Midway — Investor Presentation (September 2018)
20 slides from Midway's investor presentation, Sep 17, 2018
Slide 1: Midway Limited Capital Raising Presentation
Midway Limited Capital Raising Presentation | 17 September 2018
Slide 2: Important information
Important information Summary Information This presentation has been prepared by Midway Limited (ABN 44 005 616 044) (“Midway”). This presentation contains information about Midway and its subsidiaries and is dated 17 September 2018. The information in this presentation does not purport to be comple
Slide 3: Important information (continued)
Important information (continued) Past Performance Past performance detailed in this presentation is given for illustrative purposes only and should not be relied upon as an indication of Midway’s views on its future financial performance or condition. Readers should note that past performance of Mi
Slide 4: Capital Raising summary
Capital Raising summary • Midway Limited (“Midway”) is seeking to raise up to approximately $37.7 million (“Capital Raising”) through: o A non-underwritten institutional placement (“Placement”) of up to 11.2 million new shares at an issue price of $3.00 to raise up to approximately $33.7 million; an
Slide 5: Placement and SPP details
Placement and SPP details Institutional • A non-underwritten Placement of up to 11.2 million new shares (utilising Midway’s full 15% capacity under Listing Placement Rule 7.1) at an issue price of $3.00 to raise up to approximately $33.7 million • The Placement price of $3.00 per share represents th
Slide 6: Capital Raising timetable
Capital Raising timetable Event Date SPP Record Date Friday, 14 September 2018 Trading halt Monday, 17 September 2018 Announcement of completion of Placement and SPP pricing Wednesday, 19 September 2018 Settlement of Selldown shares Friday, 21 September 2018 SPP Opening Date Monday, 24 September 201
Slide 7: Midway - Australia's largest woodfibre processor and exporter
Midway - Australia’s largest woodfibre processor and exporter Midway Facilities and Export Capacity • Established in 1980 to explore export markets for sawmill residuals, Midway has grown to become Australia’s largest vertically integrated plantation manager, woodfibre processor and exporter • Midwa
Slide 8: Growing Asian demand
Growing Asian demand 1 • Woodfibre demand in Asia-Pacific expected to continue to increase with most shipments bound for China and Japan • China demand has exceeded Japan since 2017, while Japan has continued to increase slightly over recent years • China appreciates advantages of eucalyptus woodfib
Slide 9: FY18 Financial Performance
FY18 Financial Performance $Am FY17 FY18 % Change 10.8% Sales Revenue 209.2 231.9 2.4% Other Income 4.1 4.2 29.3% Equity Accounted Share of Profits 2.8 3.9 (12.3%) Operating Costs (188.1) (211.3) 2.5% EBITDA before significant items 28.0 28.7 184.8% Significant items (3.1) 2.6 25.7% EBITDA 24.9 31.3
Slide 10: Outlook for FY19 and beyond
Outlook for FY19 and beyond Positive outlook • Management expect growth in revenues and earnings on FY18 • Significant FX cover for USD sales already locked away for FY19 at favourable rates to FY18 • Chinese customers continue to move towards locked-in term contracts and away from buying at spot pr
Slide 11: Growth Opportunities
Growth Opportunities • Midway are evaluating a number of growth opportunities • Opportunities are evaluated utilising the discounted cash flow methodology, with earnings multiple cross checks and also an assessment of the impact on EPS • Midway adopts a target 12% pre tax real weighted average cost
Slide 12: Useful information
Useful information Midway investor presentation – 10 September 2018 https://www.asx.com.au/asxpdf/20180910/pdf/43y5tfg54rmp3f.pdf Midway FY18 full year results presentation – 30 August 2018 https://www.midwaylimited.com.au/wp-content/uploads/2018/08/Investor-Relations-FY18_FINAL.pdf Midway FY18 full
Slide 13: Risks
Risks This section discusses some of the risks associated with an investment in shares in Midway. These risks may affect the future operating and financial performance of Midway and the value of Midway shares. The risks set out below are not listed in order of importance and do not necessarily const
Slide 14: Specific risks
Specific risks Customer Demand Although Midway has long-standing relationships with a number of its key customers, most sales are achieved on a spot or short-term contractual basis. There can be no guarantee that these relationships will continue or, if they do continue, that these relationships wil
Slide 15: Specific risks (continued)
Specific risks (continued) Future Acquisitions and Joint Ventures Midway may undertake further acquisitions or enter into joint ventures consistent with its growth strategy. The successful implementation of acquisitions or joint ventures will depend on a range of factors including funding arrangemen
Slide 16: Specific risks (continued)
Specific risks (continued) Excess System Capacity Midway is subject to a number of harvest and/or haulage contracts with contractors who provide harvesting/haulage services which contain minimum annual volume commitments on the part of Midway. The Board considers that these commitments are necessary
Slide 17: General risks
General risks Share Price and Volume Fluctuations Midway, as a publicly listed company on the ASX, is subject to general market risks applicable to all securities listed on a stock exchange. This may result in fluctuations in the share price that are not explained by the performance of Midway. The p
Slide 18: Foreign selling restrictions
Foreign selling restrictions This document does not constitute an offer of New Shares of Midway in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia except
Slide 19: Foreign selling restrictions (continued)
Foreign selling restrictions (continued) United Kingdom Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial
Slide 20: Midway Limited contact details
DRAFT Midway Limited (ABN 44 005 616 044) 10 The Esplanade, North Shore, Victoria, Australia 3214 PO Box 678, North Geelong MDC, Victoria, Australia 3215 T +61 (3) 5277 9255 Strictly Private and Confidential | Slide 19 of 15 F +61 (3) 5277 0667