Midway — Investor Presentation (February 2019)
15 slides from Midway's investor presentation, February 2019
Slide 1: Investor presentation
Investor presentation February 2019 Tony Price Chief Executive, Midway Limited
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Midway Limited ACN 005 616 044 (Midway or the Company). The information contained in this presentation is current at the date of this presentation. The information is a summary overview of the current activities of the Company and does not purport to
Slide 3: Agenda
Agenda • Performance • Areas of expertise • Growth strategy • Investments • Outlook 3
Slide 4: Strong performance since listing
Strong performance since listing )Volume ('000 6,000 )Price (cents 360 Performance 5,250 340 ▪ Share price has continued to improve on the back of the 320 4,500 300 Group’s performance over the first two years listed on the ASX. 3,750 280 3,000 260 ▪ The Group has met consensus forecasts in both yea
Slide 5: What we do well
What we do well Key areas of expertise Plantation and Harvesting Processing Marketing land management and logistics and materials and shipping • Existing freehold estate • Extensive experience in • Management of woodfibre • Market most of own • Experienced plantation contract management processing p
Slide 6: Our growth strategy
Our growth strategy Increasing EBITDA over time: 1. EXPANSION OF EXISTING BUSINESS ▪ Growth of plantation management and woodfibre processing businesses ▪ Increased utilisation and expansion of existing infrastructure ▪ Development of Hardwood and Softwood log exports 2. ACQUISITIONS ▪ Complementary
Slide 7: Australasian growth opportunities
Australasian growth opportunities Plantation management ▪ Further expansion of Midway’s position in the supply chain to reduce operational and market risks and capture additional margins. ▪ New and expanded areas of plantation management in Australia, South East Asia and New Zealand. Harvesting and
Slide 8: Expanding our geographic footprint
Expanding our geographic footprint 8
Slide 9: Diversifying our earnings growth
Diversifying our earnings growth EBITDA $'M by geographic location 2017 EBITDA $'M by geographic location 2018 1.2 0.4 -2.4 0.9 Victoria 1.7 -3.3 1.0 Tasmania Victoria Northern Territory 28.0 South East Asia Queensland 29.2 Queensland Eliminations Eliminations 9
Slide 10: Investing $17 million on the Tiwi Islands
Investing $17 million on the Tiwi Islands Investment ▪ The investment will be used to acquire additional production and port assets on the Tiwi Islands that will increase woodfibre production and deliver cost efficiencies. ▪ PMP now manages the entire woodfibre supply chain and will deliver to marke
Slide 11: Our WA biomass acquisition
Our WA biomass acquisition ▪ Midway acquired two businesses in WA, which settled in October. The businesses are located near Bunbury in South West, Western Australia. ▪ Softwood Logging Services (SLS) provides Midway with access to equipment, management expertise and contracts for the harvesting, pr
Slide 12: Investing in ADDCO expansion
Investing in ADDCO expansion ▪ $0.4M (25%) strategic investment in ADDCO Fibre Group. ▪ ADDCO Fibre Group provides forestry supply chain and logistics services to clients in the Australasian forestry and wood processing sectors. ▪ ADDCO Fibre Group Limited was founded in 2017 and is based in Mount M
Slide 13: Growing our Tasmanian business
Growing our Tasmanian business ▪ Midway Tasmania has commenced trading and is actively growing our presence in Tasmania. ▪ A joint venture marketing company has been established with RMS and Pentarch, called the Plantation Export Group (PEG). ▪ Midway also entered a throughput arrangement with a maj
Slide 14: Positive pricing outlook
Positive pricing outlook Hardwood Chip Imports Volume, 2008-2017 )‘000 BDMT) 14,000 Japan China ▪ Demand for woodfibre in the Asia-Pacific region is expected 12,000 to continue to grow with most shipments bound for China 10,000 and Japan. 8,000 6,000 ▪ China demand has exceeded Japan since 2017, whi
Slide 15: In summary
In summary • A solid financial performance • Growth strategy is progressing well • Market outlook is strong 15