Myeco Group Ltd · ASX:MCO
Myeco — H1 FY2022 Earnings Presentation
17 slides from Myeco's earnings presentation, Feb 25, 2022
Slide 1: Changing the World of Packaging – Half Year Results FY22
CHANGING THE WORLD OF PACKAGING Half Year Results FY22 February 2022 ASX: SES
Slide 2: Strong Outlook
STRONG OUTLOOK SECOS has a strong growth trajectory in the bioplastic market Current investment Launch of new Growth in pet taking sales global research & capacity to Expansion of local waste bags development over $60 million Council expected to Expansion of centre with multi pa now available organi
Slide 3: Positioning for Growth
POSITIONING FOR GROWTH Growth: Bioplastic sales Integrated Biopolymer producer in fast growth New $2 million R & D Centre growing at 21.2% on PCP industry offering a material alternative to for excellence established in outstripping conventional conventional plastics Melbourne; testing to support pl
Slide 4: Sales Growth and Asset Expansion (1HFY '20-'22)
SALES GROWTH and ASSET EXPANSION (1HFY ‘20 -‘22) First Half Revenue Comparative 1HFY22 1HFY21 1HFY20 0 5,000 10,000 15,000 20,000 Traditional Bio $'000 ● Sales growth of 10.3% for 1HFY22 vs PCP ● The growth in compostable products saw compostable products account for 65.3% of total sales ● Growth in
Slide 5: 1H Capacity Expansion (1HFY '20-'22)
1H CAPACITY EXPANSION (1HFY ‘20 -‘22) Mt Resin/month Capacity Change 1H '21 vs 1H '22 Million bags/month ● Commitments made to order and install 700 90 new capacity, will double the ability of the business to supply certified compostable 80 600 products such as compostable bin liners, 70 dog bags, f
Slide 6: SECOS – Brand and Digital Asset Investment
SECOS – BRAND and DIGITAL ASSET INVESTMENT Digital Assets E-commerce sales Retail Stores • The planned increase in MyEco® brand and digital asset investment of $0.218m, supported the launch • MyEcoPet® sites • Veterans of new products in Australia and the USA. in USA & Aust. Canteen • Amazon USA • (
Slide 7: Significant Retail Opportunity
SIGNIFICANT RETAIL OPPPORTUNITY Rapid penetration of US and Australian supermarket and pet retail markets with significant scope to grow USA Supermarket & Pet Store: Annual Sales & No. of Stores ● Scale of USA supermarkets and pet chains are ~8-10 times 40,000 741 800 35,000 700 Australia in terms o
Slide 8: Actions Taken to Mitigate COVID-19
ACTIONS TAKEN TO MITIGATE COVID-19 The rebound in demand following the initial impact of COVID-19 has seen freight capacity to be tight as indicated by the Ocean Demand and Capacity Index. As such freight costs rose from 5.2% of sales to 9.4% of sales during the period. To mitigate the impact of fre
Slide 9: Integration Continues to Serve SECOS Group Well
INTEGRATION CONTINUES TO SERVE SECOS GROUP WELL Fully vertically integrated production capacity from raw materials to finished product Cardia Biopolymer Resin Cardia Biopolymer Resin Cardia Biopolymer Resin Cardia Biopolymer Resin B2B B2B B2B B2B Sold to converters Sold to converters such as Sold to
Slide 10: SECOS: Unique Competitive Advantages
SECOS: UNIQUE COMPETITIVE ADVANTAGES 1 Asset location relative to large scale raw material supplies IP – both patents and increasing knowhow around thermoplastic starch based 2 formulations, bio-product film and bag production skill sets R & D competencies focusing on new bio-resin formulations and
Slide 11: Competitive Advantage – Strategic Asset Locations
COMPETITIVE ADVANTAGE – STRATEGIC ASSET LOCATIONS ● SECOS has access to multiple, fast growing Global production capacities of bioplastic in 2020 (by region) suppliers of raw materials, which enables Total: 2.11 million tonnes competitive pricing and consequent margin Asia enhancement over time 17 2
Slide 12: Competitive Advantage - IP
COMPETITIVE ADVANTAGE - IP ● IP and knowhow - SECOS has 11 patent families ‒ Patents cover multi-layer film structure and thermoplastic starch-based resin formulations ● SECOS Group has significant formulation expertise around biopolymer resin products, film and bags ● Significant and accumulated ex
Slide 13: Competitive Advantage - R&D
COMPETITIVE ADVANTAGE - R&D ● In-house R&D competencies focusing on new bio-resin formulations and biofilm, biobag plus high-end multi-layer bio- based co-ex structures: ‒ Qualified Material Engineers and Scientists employed in China, Malaysia and Australia to work on new resin formulation, new film
Slide 14: Competitive Advantage - Integration
COMPETITIVE ADVANTAGE - INTEGRATION Integration across the bio-product value chain: Resin -> Brands -> Consumers Integrated Value Chain - Cardia® Developing Own - Brands MyEco® Biobased & Conventional Cast Film Biobased resin production Biobased Blown Film MyEcoBag® MyEcoPet® Production ► Compostabl
Slide 15: Regulatory and Market Drivers
REGULATORY and MARKET DRIVERS Multiple forces are disrupting the global market for conventional plastics The Countries Banning Plastic Bags Market driven disruption: National-level regulation to ban/limit the use of plastic bags (2021) Brands looking for a way out of conventional plastic Governm
Slide 16: Forward-Looking Statements Disclaimer
FORWARD-LOOKING STATEMENTS DISCLAIMER This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation: estimates of future earnings; estimates of future production and sales; estimates of future cash costs; estimates of future cash flo
Slide 17: Changing the World of Packaging
CHANGING THE WORLD OF PACKAGING