Cleanaway Waste Management Ltd. · ASX:CWY

Cleanaway Waste Management — Transpacific Industries Group — FY2013 Earnings Presentation

32 slides from Cleanaway Waste Management's earnings presentation, Aug 23, 2013

  1. Slide 1: Transpacific 2013 Financial Year Results Presentation

    Transpacific 2013 Financial Year For personal use only Results Presentation Kevin Campbell – CEO & Stewart Cummins – CFO 23 August 2013

  2. Slide 2: Disclaimer

    Transpacific 2013 Financial Year Results - Disclaimer  Forward looking statements - This presentation contains certain forward-looking statements, including with respect to the financial condition, results of operations and businesses of Transpacific Industries Group Ltd (“TPI”) and certain plans a

  3. Slide 3: Agenda

    Transpacific 2013 Financial Year Results Agenda For personal use only Financial Summary and Overview Kevin Campbell, CEO Achievements Business and Operational Review Stewart Cummins, CFO Significant Items and Impairments Divisional Underlying Results Kevin Campbell, CEO Financial Management Stewart

  4. Slide 4: Financial Summary and Overview

    Transpacific 2013 Financial Year Results Financial Summary and Overview For personal use only Statutory results  Revenue up 0.4% to $2.29 billion (compared to FY12)  Loss after income tax attributable to ordinary equity holders of $218.7 million compared to a profit after income tax of $12.5 milli

  5. Slide 5: Key Highlights of Underlying Results

    Transpacific 2013 Financial Year Results Key Highlights of Underlying Results (1) For personal use only Revenue Underlying NPAT (2) $2,294m Up 0.4% $67.9m Up 17.1% Underlying EBITDA Underlying EPS $412.2m Down 6.4% 4.3 cents Up 0.3% Underlying EBIT Operating Cash Flow $226.5m Down 10.2% $282.4m Up 4

  6. Slide 6: Achievements

    Transpacific 2013 Financial Year Results Achievements For personal use only Safety   47% reduction in total recordable injury frequency rate Transformation   Initiated the Business and Operational Review to accelerate transformation program Sustainable cost savings   $15 million cost savings t

  7. Slide 7: Group Income Statement – Statutory and Underlying Results

    Transpacific 2013 Financial Year Results Group Income Statement – Statutory and Underlying Results For personal use only A$ million Statutory Results Underlying Adjustments Underlying Results % FY13 FY12 FY13 FY12 FY13 FY12 change Revenue from continuing operations 2,294.0 2,283.8 - - 2,294.0 2,283.

  8. Slide 8: Business and Operational Review

    Transpacific 2013 Financial Year Results Business and Operational Review For personal use only The review was announced in June 2013 and is being used to accelerate the Company’s transformation program Key areas of focus 1. Portfolio strategy  The review identified 42 businesses across Australia an

  9. Slide 9: Statutory Profit Reconciliation to Underlying Profit

    Transpacific 2013 Financial Year Results Statutory Profit Reconciliation to Underlying Profit For personal use only A$ million FY13 FY12 Statutory (Loss)/Profit From Continuing Operations After Income Tax (Attributable to Ordinary Equity Holders) (218.7) 12.5 Impairment of assets 325.0 - Settlement

  10. Slide 10: Asset Impairments

    Transpacific 2013 Financial Year Results Asset Impairments For personal use only  A review of the carrying value of non-current assets including intangibles as part of the year end accounting and audit process has been completed and the Company has booked a non-cash write-down of $276.8 million aft

  11. Slide 11: Divisional Underlying Results

    Transpacific 2013 Financial Year Results Divisional Underlying Results For personal use only A$ million Revenue EBITDA EBIT FY13 FY12 % change FY13 FY12 % change FY13 FY12 % change Cleanaway Australia 924.7 904.9 2.2% 194.2 203.8 -4.7% 92.4 110.1 -16.1% Industrials Australia 523.6 543.2 -3.6% 107.4

  12. Slide 12: Cleanaway Australia

    Transpacific 2013 Financial Year Results Cleanaway Australia For personal use only Financial Performance (A$m) 45.0 A$ million FY13 FY12 % 490.0 C&I 589.9 570.6 3.4% 440.0 40.2 39.7 40.0 43.0 43.0 Municipal 199.0 180.1 10.5% 390.0 412.4 406.5 424.8 420.0 35.0 Post Collections (excl levies and carbon

  13. Slide 13: Cleanaway Australia (cont'd)

    Transpacific 2013 Financial Year Results Cleanaway Australia (cont’d) For personal use only C&I Municipal Post Collections A$ million FY13 FY12 % A$ million FY13 FY12 % A$ million FY13 FY12 % Revenue 589.9 570.6 3.4% Revenue 199.0 180.1 10.5% Revenue 135.5 143.1 -5.3%  Front lift, Recycling and Rea

  14. Slide 14: Industrials Australia

    Transpacific 2013 Financial Year Results Industrials Australia For personal use only A$ million FY13 FY12 % Financial Performance (A$m) 40.0% 290.0 Revenue 523.6 543.2 -3.6% 35.0% 273.0 270.2 271.0 EBITDA* 107.4 125.1 -14.1% 240.0 252.6 30.0% EBITDA Margin* 20.5% 23.0% EBIT* 75.0 82.1 -8.6% 25.0% 19

  15. Slide 15: Industrials Australia (cont'd)

    Transpacific 2013 Financial Year Results Industrials Australia (cont’d) For personal use only Technical Services Industrial Solutions Hydrocarbons A$ million FY13 FY12 % A$ million FY13 FY12 % A$ million FY13 FY12 % Revenue 162.2 159.8 1.5% Revenue 226.0 242.0 -6.6% Revenue 135.4 141.4 -4.3% EBITDA

  16. Slide 16: New Zealand

    Transpacific 2013 Financial Year Results New Zealand For personal use only 45.0% NZ$ million FY13 FY12 % 240.0 Financial Performance (NZ$m) 40.0% Revenue 437.9 433.8 0.9% 216.8 217.0 222.5 35.0% EBITDA* 98.0 108.0 -9.2% 215.4 190.0 EBITDA Margin* 22.4% 24.9% 30.0% EBIT* 57.9 68.8 -15.8% 25.0% EBIT M

  17. Slide 17: New Zealand (cont'd)

    Transpacific 2013 Financial Year Results New Zealand (cont’d) For personal use only Waste Management NZ Industrials NZ NZ$ million FY13 FY12 % NZ$ million FY13 FY12 % Revenue 342.2 332.3 3.0% Revenue 95.7 101.5 -5.7% EBITDA * 86.6 89.8 -3.6% EBITDA * 11.4 18.2 -37.3% EBITDA Margin * 25.3% 27.0% EBIT

  18. Slide 18: Commercial Vehicles

    Transpacific 2013 Financial Year Results Commercial Vehicles For personal use only A$ million FY13 FY12 % Financial Performance (A$m) 240.0 20.0% Revenue 445.8 427.3 4.3% EBITDA 35.8 29.2 22.6% 231.7 228.1 217.7 EBITDA Margin 8.0% 6.8% 190.0 15.0% 195.6 EBIT 34.6 27.8 24.3% EBIT Margin 7.8% 6.5% 140

  19. Slide 19: Manufacturing

    Transpacific 2013 Financial Year Results Manufacturing For personal use only A$ million FY13 FY12 % Financial Performance Revenue (A$m) Revenue 37.6 53.8 -30.1% EBITDA * (2.2) (0.9) >100% EBITDA Margin * -5.8% -1.7% EBIT * (2.1) (1.0) >100% 31.1 EBIT Margin * -5.6% -1.9% 25.9 *Represent underlying r

  20. Slide 20: Key Highlights – Financial Management

    Transpacific 2013 Financial Year Results Key Highlights – Financial Management For personal use only Debt  Debt reduction continues with net debt down to $977.5 million  Net interest expense down by 23.6%  Debt structure simplified with repayment of 5 Year USPP Notes and repurchase of Convertible

  21. Slide 21: Balance Sheet

    Transpacific 2013 Financial Year Results Balance Sheet For personal use only A$ million 30 Jun 13 31 Dec 12 30 Jun 12 Assets Cash 76.2 30.9 77.9 Receivables 282.6 281.5 305.6 Inventories 165.2 176.2 175.2  Inventory level maintained to support the Other current assets 28.0 20.3 18.7 heavy duty vehi

  22. Slide 22: Cash Flows

    Transpacific 2013 Financial Year Results Cash Flows For personal use only A$ million FY13 FY12  Ratio of cash flow from operating activities Underlying EBITDA incl. associates 412.2 440.2 to underlying EBITDA improved to 95% (pcp: Less share of associates profit (5.5) (2.9) 91%) (1) Change in opera

  23. Slide 23: Capital Expenditure

    Transpacific 2013 Financial Year Results Capital Expenditure FY13 Capital Expenditure Spend For personal use only A$ million FY13 FY12 9% Cleanaway 96.4 91.5 Industrials 42.7 37.2 New Zealand 33.7 26.9 Commercial Vehicles 1.1 1.5 29% Manufacturing - 2.0 Corporate & Property 22.4 21.7 62% Total Capex

  24. Slide 24: Capital Structure

    Transpacific 2013 Financial Year Results Capital Structure For personal use only Net Debt comprises:  Gross debt reduced by $74.8 million, being A$ million 30 Jun 13 31 Dec 12 30 Jun 12 $105 million repayments offset by $30.2 Current interest bearing liabilities 21.5 36.5 238.1 million in non-cash

  25. Slide 25: Capital Structure (cont'd)

    Transpacific 2013 Financial Year Results Capital Structure (cont’d) For personal use only Funding Facility maturity profile (A$m) 700 Bank Facility Available 600 Bank Facility 510 518 Drawn 500 USPP 109 397 161 SPS 400 A$m 300 200 397 409 349 250 100 54 0 Dec-13 Jun-14 Nov-14 Jun-15 Nov-15 Jun-16 No

  26. Slide 26: FY14 Outlook and Priorities

    Transpacific 2013 Financial Year Results FY14 Outlook and Priorities For personal use only Outlook  Market conditions expected to remain similar to those experienced in the second half of FY13 Performance  Delivering on the next phase of the sustainable cost savings targets – a further $20 improve

  27. Slide 27: Appendices

    For personal use only Appendices 27

  28. Slide 28: 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 FY13 FY12 FY13 FY12 Interest expense Bank interest 55.1 69.7 55.1 69.7 Hedging 22.0 12.0 22.0 12.0 Commitment fees, Guarantee and Bond fees 8.0 9.8 8.0 9.8

  29. Slide 29: Appendix 2: Group Underlying EBITDA FY12 to FY13

    Transpacific 2013 Financial Year Results Appendix 2: Group Underlying EBITDA FY12 to FY13 For personal use only 450 440 440.2 430 (9.6) 420 6.6 2.6 (1.3) 410 (17.7) (3.1) 412.2 A$m (5.5) 400 390 380 370 360 350 FY12 Underlying Cleanaway Industrials New Zealand Associates Commercial Manufacturing Cor

  30. Slide 30: Appendix 3: Underlying Divisional EBITDA Adjustments

    Transpacific 2013 Financial Year Results Appendix 3: Underlying Divisional EBITDA Adjustments For personal use only A$ million Statutory Results Underlying Adjustments Underlying Results % FY13 FY12 FY13 FY12 FY13 FY12 change Cleanaway Australia (36.7) 203.8 230.9 - 194.2 203.8 -4.7% Industrials Aus

  31. Slide 31: Appendix 4: Capital Structure – Credit Metrics

    Transpacific 2013 Financial Year Results Appendix 4: Capital Structure – Credit Metrics For personal use only Gross Debt/Underlying EBITDA Net Debt/Underlying EBITDA 4.0x 4.0x 3.5x 3.51x 3.5x 3.0x 3.30x 3.0x 2.5x 2.70x 2.56x 2.56x 2.5x 2.46x 2.56x 2.0x 2.39x 2.39x 2.37x 2.0x 1.5x 1.5x 1.0x FY11 1H12

  32. Slide 32: Appendix 5: Capital Structure – Interest Rate Hedging Profile

    Transpacific 2013 Financial Year Results Appendix 5: Capital Structure – Interest Rate Hedging Profile For personal use only Hedge Maturity Profile at 30 June 2013 1,000 10.0% 800 8.0% Interest rate A$m 600 6.0% 400 4.0% 200 2.0% 0 0.0% Dec-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Interest Rate Swaps U

Transpacific Industries Group — FY2013 Earnings Presentation on 6ix