Slide 1: FY23 Results Presentation
rsonal use only FY23 RESULTS PRESENTATION AUGUST 2023 ASX: SES CHANGING THE WORLD OF PACKAGING SECOS GROUP LIMITED (ASX: SES) 1 FY23 FULL YEAR RESULTS PRESENTATION
Slide 2: Agenda
AGENDA rsonal use only • Strategic & Operational Highlights • FY23 Financial Results • Strategy & Outlook SECOS GROUP LIMITED (ASX: SES) 2 FY23 FULL YEAR RESULTS PRESENTATION
Slide 3: Strategic and Operational Highlights
STRATEGIC AND rsonal use only OPERATIONAL HIGHLIGHTS SECOS GROUP LIMITED (ASX: SES) 3 FY23 FULL YEAR RESULTS PRESENTATION
Slide 4: Strategic and Operational Highlights
STRATEGIC AND OPERATIONAL HIGHLIGHTS • Divestment of traditional plastic manufacturing assets Enables SECOS to focus purely on sustainable and compostable products: namely development and rsonal use only sale of sustainable resins and its MyEcoWorld™ finished products (announced 1 August 2023). • St
Slide 5: SECOS' Reach and Range Achieving Scale
SECOS’ REACH AND RANGE ACHIEVING SCALE FY23 Sales Film rsonal use only 3% Traditional 35% Bags 42% Resin 20% • SECOS supplies over 25 countries globally • Compostable Bags - the leading product category due to success of MyEco® range • Asset sale and closure of traditional plastic business - expect
Slide 6: FY23 Sales by Product Group
FY23 SALES BY PRODUCT GROUP • Compostable bag sales were up 16.0% on prior 35,000 comparative period (PCP). A large portion of the growth rsonal use only in bag sales reflects the success of the Company’s 30,000 MyEco® branded products and the shift to focus on developing a leading global brand for
Slide 7: FY23 Sales by Product Segment
FY23 SALES BY PRODUCT SEGMENT COMPOSTABLE BAGS- RETAIL & WHITE LABEL rsonal use only $2,500,000 • FY23 MyEco® Retail sales achieved a record result with approximate $2.5m in gross sales $2,000,000 • Over 140% growth of MyEco® retail brand gross sales in major retailers and independent distributors i
Slide 8: MyEco - Significant Australian Retail Growth
MyEco® - SIGNIFICANT AUSTRALIAN RETAIL GROWTH 140% growth in gross sales of MyEco® products in Australian retail stores rsonal use only Growth in Retail Store Numbers 2500 2000 1500 1000 500 0 Jun 21 Dec 21 Jun 22 Dec 22 Jun-23 SECOS GROUP LIMITED (ASX: SES) 8 FY23 FULL YEAR RESULTS PRESENTATION
Slide 9: FY23 Sales by Product Segment (Continued)
FY23 SALES BY PRODUCT SEGMENT (CONTINUED) COMPOSTABLE BAGS- COUNCIL & WASTE rsonal use only ● Successful FOGO tenders led to increased sales to $3,000,000 Australian councils by 74% in H2 FY23 versus H1 FY23 $2,500,000 ● FOGO rollout programs expected to continue as $2,000,000 more local governments
Slide 10: FY23 Sales by Product Segment (Continued)
FY23 SALES BY PRODUCT SEGMENT (CONTINUED) FY23 Compostable Resin sales reduced due to excess rsonal use only COMPOSTABLE RESIN SALES $6,000,000 inventory caused by supply chain disruption in FY22 ● Excess inventory of compostable resin held at a major $5,000,000 converter in LATAM causing slower res
Slide 11: FY23 Sales by Product Segment (Continued)
FY23 SALES BY PRODUCT SEGMENT (CONTINUED) ● FY23 Traditional Plastic sales declined in line with SECOS’ rsonal use only TRADITIONAL PLASTIC SALES $7,000,000 strategy to reduce single use plastic in the environment ● Reducing low margin traditional plastic sales has improved $6,000,000 the Group’s wo
Slide 12: Markets Driving Sales Growth
MARKETS DRIVING SALES GROWTH Market Product Sales Channel Branding Status Australia Compostable Bags – Retail Direct Major Retailers (Coles/Woolworths) MyEcoBag® In Market/Growing Council FOGO Bags Direct to council Cardia® In Market/Growing rsonal use only Compostable Pet Waste Bags White Label (Ez
Slide 13: Markets Driving Sales Growth (Continued)
MARKETS DRIVING SALES GROWTH (CONTINUED) Market Product Sales Channel Branding Status Middle Compostable Resin/Films Direct to Converter Cardia Resin® In Market/Developing East Compostable Pet Waste Bags Direct to Retailers White Label Soon to Launch rsonal use only Compostable Pallet Wrap Direct to
Slide 14: Fully Integrated Value Chain
FULLY INTEGRATED VALUE CHAIN rsonal use only Specialist Technical Experts in Biopolymers Manufacturers of Leading Market Brand in Sustainable Sustainable Packaging Products SECOS GROUP LIMITED (ASX: SES) 14 FY23 FULL YEAR RESULTS PRESENTATION
Slide 15: FY23 Financial Results
rsonal use only FY23 FINANCIAL RESULTS SECOS GROUP LIMITED (ASX: SES) 15 FY23 FULL YEAR RESULTS PRESENTATION
Slide 16: FY23 Profit and Loss
FY23 PROFIT AND LOSS $’000 FY23 FY22 Var (%) ● FY23 Group sales of $22.8m decreased by 26.4% Sales 22,836 31,043 (26.4%) impacted by: Cost of Sales (19,691) (26,977) 27.0% rsonal use only - significant loss of resin business, down 51.9% on Gross Profit 3,145 4,066 (22.7%) PCP, from logistic and pand
Slide 17: FY23 Gross Margin Recovery
FY23 GROSS MARGIN RECOVERY GROSS MARGIN (%) 14.6% rsonal use only 13.0% 9.6% H2 FY22 H1 FY23 H2 FY23 Gross margin recovery driven by: ● Strategic decision to reduce low margin traditional plastic business ● Freight rates and material costs returning to pre-pandemic levels, which is also enabling mor
Slide 18: Loss Before Tax Movement
LOSS BEFORE TAX MOVEMENT rsonal use only SECOS GROUP LIMITED (ASX: SES) 18 FY23 FULL YEAR RESULTS PRESENTATION
Slide 19: June 2023 Balance Sheet
30 JUNE 2023 BALANCE SHEET $’000 2023 2022 Var % ● Current ratio of 4.6x compared to 4.2x in June 2022 rsonal use only Cash at Bank 8,424 4,122 104.4% ● Cash at bank increased by $4.3m driven by positive Trade and Other Receivables 4,033 7,955 (49.3%) operating cashflow of $2.0m and net $3.7m raised
Slide 20: Working Capital and Cash Flow
WORKING CAPITAL AND CASH FLOW CASH FLOW MOVEMENT $’000 FY23 FY22 rsonal use only Opening Cash 4,122 11,287 Cash Flows from Operating Activities 2,018 (4,060) Cash Flows from Investing Activities (639) (2,442) Cash Flows from Financing Activities 2,938 (747) Net Cash Movement 4,317 (7,249) Foreign Ex
Slide 21: Strategy & Outlook
STRATEGY & OUTLOOK rsonal use only SECOS GROUP LIMITED (ASX: SES) 21 FY23 FULL YEAR RESULTS PRESENTATION
Slide 22: Strategic Direction
STRATEGIC DIRECTION SECOS is moving with the evolving regulatory and market landscape rsonal use only ● Complete divestment from low margin traditional plastic sales which are not core to our corporate mission ● Enter new markets and build market share with our leading MyEcoWorld™ brand ● Develop st
Slide 23: Outlook
OUTLOOK SALES OUTLOOK IS STRENGTHENING ● Continuing retail momentum with adoption of MyEcoWorld™ branded business in over 2,200 stores in Australia rsonal use only ● Council and waste business continued growth opportunity as FOGO waste programs expand in new markets around the world ● Beginning to s
Slide 24: Forward-Looking Statements Disclaimer
FORWARD-LOOKING STATEMENTS DISCLAIMER This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation: rsonal use only • estimates of future earnings; • estimates of future production and sales; • estimates of future cash costs; • estimates of
Slide 25: rsonal use only
rsonal use only SECOS GROUP LIMITED (ASX: SES) 25 FY23 FULL YEAR RESULTS PRESENTATION