Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Transpacific Industries Group — H1 2014 Earnings Presentation
30 slides from Cleanaway Waste Management's earnings presentation, Feb 14, 2014
Slide 1: FY14 Half Year Results Presentation
Transpacific FY14 Half Year For personal use only Results Presentation Robert Boucher – CEO Stewart Cummins – CFO 14 February 2014
Slide 2: Disclaimer
Transpacific 2014 Half Year Results - Disclaimer Forw ard looking statem ents - This presentation contains certain forw ard-looking statements, including w ith respect to the financial condition, results of operations and businesses of Transpacific Industries Group Ltd (“TPI”) and certain plans an
Slide 3: Agenda
Transpacific 2014 Half Year Results Agenda For personal use only Financial Summary and Overview Robert Boucher, CEO Scorecard Divisional Underlying Results Financial Management Stewart Cummins, CFO Underlying Adjustments Capital Structure Business and Operational Review Robert Boucher, CEO FY14 Outl
Slide 4: Financial Summary and Overview
Transpacific 2014 Half Year Results Financial Summary and Overview For personal use only Statutory results Total revenue of $1,003 million (compared to 1H13) Profit after income tax attributable to ordinary equity holders of $158.6 million Earnings per share 10.0 cents Significant items $116
Slide 5: Key Highlights of Underlying Results
Transpacific 2014 Half Year Results Key Highlights of Underlying Results (1) For personal use only Waste Management Underlying NPAT (2) Revenue $920.2m Up 1.1% $41.7m Up 16.5% Waste Management Underlying EPS Underlying EBITDA $189.3m Down 0.5% 2.6 cents Up 16.4% Waste Management Underlying Operating
Slide 6: Scorecard
Transpacific 2014 Half Year Results Scorecard For personal use only Safety 25% reduction in total recordable injury frequency rate versus pcp Transformation Transformation teams in place and actioning improvement initiatives identified in the Business and Operational Review Changes to Lead
Slide 7: Divisional Underlying Results 1H14 v 1H13
Transpacific 2014 Half Year Results Divisional Underlying Results 1H14 v 1H13 For personal use only A$ million Revenue EBITDA EBIT 1H14 1H13 % change 1H14 1H13 % change 1H14 1H13 % change Cleanaway Australia 467.7 465.0 0.6% 98.6 96.7 2.0% 50.8 46.1 10.4% Industrials Australia 246.9 271.0 -8.9% 44.8
Slide 8: Divisional Underlying Results 2H13 to 1H14
Transpacific 2014 Half Year Results Divisional Underlying Results 2H13 to 1H14 For personal use only Divisional 2H13 to 1H14 change TPI Group EBITDA Bridge 2H13 to 1H14 10000000 Cleanaway 250 5000000 6.1 A$ EBITDA 1.1 5.1 5.8 200 Post Collections 195.1 0 188.3 (3.4) (1.8) 189.3 Collections 1 Collect
Slide 9: Cleanaway Australia
Transpacific 2014 Half Year Results Cleanaway Australia For personal use only A$ million 1H14 2H13 1H13 1H14 v 2H13 1H14 v 1H13 % variance % variance Commercial & Industrial 309.2 290.0 299.9 6.6% 3.1% Municipal 100.5 99.3 99.7 1.2% 0.8% Post Collections (excl levies and carbon tax) 63.8 70.5 65.0 -
Slide 10: Cleanaway Australia (cont'd)
Transpacific 2014 Half Year Results Cleanaway Australia (cont’d) For personal use only Commercial & Industrial Municipal Post Collections A$ million 1H14 1H13 % A$ million 1H14 1H13 % A$ million 1H14 1H13 % Revenue 309.2 299.9 3.1% Revenue 100.5 99.7 0.8% Revenue 63.8 65.0 -1.9% Total collection v
Slide 11: Industrials Australia
Transpacific 2014 Half Year Results Industrials Australia For personal use only A$ million 1H14 2H13 1H13 1H14 v 2H13 1H14 v 1H13 % variance % variance Revenue 246.9 252.6 271.0 -2.3% -8.9% EBITDA* 44.8 48.2 59.2 -7.0% -24.3% EBITDA Margin* 18.1% 19.1% 21.9% EBIT* 30.3 32.4 42.6 -6.5% -28.9% EBIT Ma
Slide 12: Industrials Australia (cont'd)
Transpacific 2014 Half Year Results Industrials Australia (cont’d) For personal use only Technical Services Energy, Minerals and Remediation Hydrocarbons A$ million 1H14 1H13 % A$ million 1H14 1H13 % A$ million 1H14 1H13 % Revenue 113.9 113.3 0.5% Revenue 61.8 69.5 -11.1% Revenue 71.2 88.2 -19.3% EB
Slide 13: New Zealand
Transpacific 2014 Half Year Results New Zealand For personal use only NZ$ million 1H14 2H13 1H13 1H14 v 2H13 1H14 v 1H13 % variance % variance Revenue 226.0 222.5 215.4 1.6% 4.9% EBITDA* 52.5 50.5 47.5 4.0% 10.5% EBITDA Margin* 23.2% 22.7% 22.1% EBIT* 34.3 30.6 27.3 12.1% 25.5% EBIT Margin* 15.2% 13
Slide 14: New Zealand (cont'd)
Transpacific 2014 Half Year Results New Zealand (cont’d) For personal use only Waste Management NZ Industrials NZ NZ$ million 1H14 1H13 % NZ$ million 1H14 1H13 % Revenue 182.4 168.8 8.1% Revenue 43.6 46.6 -6.5% EBITDA * 46.1 41.7 10.6% EBITDA * 6.4 5.8 10.1% EBITDA Margin * 25.3% 24.7% EBITDA Margin
Slide 15: Key Highlights – Financial Management
Transpacific 2014 Half Year Results Key Highlights – Financial Management For personal use only Debt Debt reduction continues with net debt down to $754 million Net interest expense down by $19.5 million or 31% $290 million of syndicated debt refinanced with improved pricing Operating $89.7
Slide 16: Group Income Statement – Statutory and Underlying Results
Transpacific 2014 Half Year Results Group Income Statement – Statutory and Underlying Results For personal use only A$ million Statutory Results Underlying Adjustments Underlying Results % 1H14 1H13 1H14 1H13 1H14 1H13 change Revenue from total waste management 920.2 910.4 - - 920.2 910.4 1.1% Reven
Slide 17: Statutory Profit Reconciliation to Underlying Profit
Transpacific 2014 Half Year Results Statutory Profit Reconciliation to Underlying Profit For personal use only A$ million 1H14 1H13 Statutory Profit From Continuing and Discontinued Operations After Income Tax (Attributable to Ordinary Equity Holders) 158.6 32.3 Costs associated with implementation
Slide 18: Balance Sheet
Transpacific 2014 Half Year Results Balance Sheet For personal use only A$ million 31 Dec 13 1 30 Jun 13 31 Dec 12 Assets Cash 71.7 76.2 30.9 Receivables 293.9 282.6 281.5 Receivables and intangible assets Inventories 22.3 165.2 176.2 increased by AUD/NZD FX rates Other current assets 22.7 28.0 20
Slide 19: Cash Flows
Transpacific 2014 Half Year Results Cash Flows For personal use only A$ million 1H14 1H13 Underlying EBITDA incl. associates 195.1 211.0 Less share of associates profit (4.5) (1.3) Change in operating assets and liabilities (26.5) (22.2) Remediation of landfills (4.0) (4.6) Underlying adjustments (6
Slide 20: Capital Structure
Transpacific 2014 Half Year Results Capital Structure For personal use only Net Debt comprises: Gross debt reduced by $228.1 million, being A$ million 31 Dec 14 30 Jun 13 31 Dec 12 $240.0 million repayments offset by $11.9 Current interest bearing liabilities 22.3 21.5 36.5 million in non-cash amo
Slide 21: Business and Operational Review
Transpacific 2014 Half Year Results Business and Operational Review For personal use only The Company is actioning its transformation program Key areas of focus Progress 1. Portfolio strategy 31 of the 42 businesses identified as either non-core or under-performing have been closed, sold or contra
Slide 22: FY14 Outlook and Priorities
Transpacific 2014 Half Year Results FY14 Outlook and Priorities For personal use only Outlook Australian and New Zealand trading conditions expected to remain consistent with those experienced in the first half Performance Delivering on the next phase of the sustainable cost savings targets – a
Slide 23: Appendices
For personal use only Appendices 23
Slide 24: Appendix 1: Capital Structure – Net Finance Costs
Transpacific 2013 Financial Year Results Appendix 1: Capital Structure – Net Finance Costs For personal use only A$ million Statutory Underlying 1H14 1H13 1H14 1H13 Interest expense Bank interest 22.1 27.4 22.1 27.4 Hedging 6.2 10.1 6.2 10.1 Commitment fees, Guarantee and Bond fees 3.8 4.5 3.8 4.5 1
Slide 25: Appendix 2: Group Underlying EBITDA 1H13 to 1H14
Transpacific 2014 Half Year Results Appendix 2: Group Underlying EBITDA 1H13 to 1H14 For personal use only TPI Group EBITDA Bridge 1H13 to 1H14 250 1.9 3.2 8.9 200 211.0 (14.4) (14.5) (0.4) (0.6) 195.1 A$m 150 100 50 - 1H13 Underlying Cleanaway Industrials New Zealand Associates Commercial Manufactu
Slide 26: Appendix 3: Underlying Divisional EBITDA Adjustments
Transpacific 2014 Half Year Results Appendix 3: Underlying Divisional EBITDA Adjustments For personal use only A$ million Statutory Results Underlying Adjustments Underlying Results % 1H14 1H13 1H14 1H13 1H14 1H13 change Cleanaway Australia 98.6 96.7 - - 98.6 96.7 2.0% Industrials Australia 44.8 52.
Slide 27: Appendix 4: Divisional Underlying Results 1H14 v 2H13
Transpacific 2014 Half Year Results Appendix 4: Divisional Underlying Results 1H14 v 2H13 For personal use only A$ million Revenue EBITDA EBIT 1H14 2H13 % change 1H14 2H13 % change 1H14 2H13 % change Cleanaway Australia 467.7 459.7 1.7% 98.6 97.5 1.1% 50.8 46.3 9.7% Industrials Australia 246.9 252.6
Slide 28: Appendix 5: Capital Structure – Credit Metrics
Transpacific 2014 Half Year Results Appendix 5: Capital Structure – Credit Metrics For personal use only Gross Debt/Underlying EBITDA Net Debt/Underlying EBITDA 3.0x 4.0x 3.5x 2.5x 2.70x 2.56x 2.56x 2.46x 3.0x 2.0x 2.5x 2.08x 2.56x 2.39x 2.39x 2.37x 2.0x 1.5x 1.90x 1.5x 1.0x 1.0x 1H12 FY12 1H13 FY13
Slide 29: Appendix 6: Industrials Division Segment Results
Transpacific 2014 Half Year Results Appendix 6: Industrials Division Segment Results For personal use only 1H11 2H11 FY11 1H12 2H12 FY12 1H13 2H13 FY13 1H14 Technical Services Revenue 126.0 124.6 250.5 120.9 113.6 234.5 113.3 108.3 221.6 113.9 EBITDA 28.0 28.8 56.8 28.0 22.5 50.5 21.9 17.8 39.7 17.3
Slide 30: Appendix 7: Balance Sheet Reconciliation
Transpacific 2014 Half Year Results Appendix 7: Balance Sheet Reconciliation For personal use only Assets 31 Dec 13 1 31 Dec 13 2 30 Jun 13 2 A$ million classified as held for sale Assets Cash 71.7 - 71.7 76.2 Receivables 293.9 53.8 240.1 282.6 Inventories 22.3 1.9 20.4 165.2 Other current assets 22
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