Midway — FY2019 Earnings Presentation
20 slides from Midway's earnings presentation, August 2019
Slide 1: Full year result – FY19 Analyst and Investor Presentation
Full year result – FY19 Analyst and Investor Presentation August 2019
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: Financials FY19
Financials FY19 Midway
Slide 4: Performance Overview
Performance Overview Strong underlying performance in FY19 • FY19 EBITDA – S(1) of $37.1M (FY18: $28.7M) +29.3% increase • Net profit before tax was $33.1M (+34.0%) and NPAT of $26.2M (+42.4%) Revenue • Favorable sales price increase of $12 USD / BDMT on average over the pcp $283.6M +22.3% • Bone dr
Slide 5: Track record of growth
Track record of growth 40 EBITDA-S $'M before significant items NPAT $'M 35 Half year Full year 30 30 Half year 25 25 Full year 26.2 20 20 37.1 15 28 28.7 15 18.4 14.9 10 10 13.8 12.2 5 9.5 5 6.5 Dividend 5.6 0 2.1 0 Yield 2017 2018 2019 2017 2018 2019 5.2% Dividends (cents declared) Earnings Per Sh
Slide 6: Financial Performance – FY19
Financial Performance – FY19 Midway Group EBITDA-S ($’M) 40 0.6 35 11.5 30 25 5.4 20 4.8 11.2 37.1 2.4 15 28.7 3.7 10 10 5.2 5 0 FY18 Volume PMP Forestry Supply costs Bone Dry % JV (SWF) FX Price Other FY19 restructure Logistics 6
Slide 7: Financial Performance – FY19
Financial Performance – FY19 $Am FY19 FY18 % Change Sales Revenue 283.6 231.9 22.3% Other Income 5.6 4.2 33.3% Equity Accounted Share of 6.8 3.9 74.4% Profits Operating Costs (258.9) (211.3) (22.5%) EBITDA – S(1) 37.1 28.7 29.3% Significant items(2) 3.1 - - Net fair value gain on 10.5 2.6 303.8% bio
Slide 8: Segment contribution
Segment contribution EBITDA-S $’M 2019 EBITDA-S $’M 2018 -0.8 Woodfibre 0.1 0.9 -2.4 2.1 Woodfibre processing 0.0 processing Forestry Logistics Forestry Logistics Plantation 42.7 Plantation Management 30.8 Management Ancillary Ancillary Note: Excludes eliminations from calculation (1) Forestry Logis
Slide 9: Cash Flow – FY19
Cash Flow – FY19 $Am FY19 FY18 $Am Change Operating Cash Flow (1) 5.6 13.2 (7.6) Investing Cash Flow (9.8) (15.0) 5.2 Financing Cash Flow 9.3 (2.9) 12.2 Net Change in Cash 5.1 (4.7) 9.8 Net Debt (2) 29.5 32.4 (2.9) Interest Cover 18.7 16.4 (1) Operating cashflow was lower than expected due to a $13.
Slide 10: Balance Sheet – FY19
Balance Sheet – FY19 $Am FY19 FY18 $Am Change Total Current Assets 71.3 52.9 18.4 Total Non-current Assets 205.7 135.4 70.3 Total Assets 277.0 188.3 88.7 Total Current Liabilities 38.8 37.0 1.8 (1) Non-current borrowings 38.4 35.4 3.0 Total Non-current Liabilities 95.5 52.1 43.4 Total Liabilities 13
Slide 11: New business activities
New business activities Forestry Logistics Segment • On 15 October 2018, the Company made two acquisitions in Western Australia: – 100% of Softwood Logging Services (SLS), a harvest and haul business in WA. SLS provides access to equipment, management expertise and contracts for harvesting, processi
Slide 12: Investing $19.8 million on the Tiwi Islands
Investing $19.8 million on the Tiwi Islands Woodfibre Processing Segment The investment ($19.8M) was used to acquire additional production equipment and upgrade port assets on Melville Island which will increase capacity and deliver efficiencies to the operations This involved upgrading the exis
Slide 13: Strategy and Outlook section
Strategy and Outlook section
Slide 14: Strategic priorities
Strategic priorities Strategic priorities progressing well Increasing EBIT over time: 1. EXPANSION OF EXISTING BUSINESS Maximising long term fibre supply by replanting existing land, securing contracts with third party Growth of plantation management and woodfibre processing plantation owners an
Slide 15: Overall volume growth with changing mix (Domestic and Export)
Overall volume growth with changing mix (Domestic and Export) Volumes FY2019 FY2020 FY2021 FY2022 FY2023 (000’s GMT) Geelong 1,047 950 850 700 700 Portland 1,534 1,350 1100 1,000 800 Brisbane 218 330 400 450 550 Melville Island 188 340 340 340 340 Tasmania1 367 450 600 700 800 Western Australia 390
Slide 16: Market Update – FY19
Market Update – FY19 Indonesia Woodchip Export / Import Demand for woodchips in the Asia Pacific (mainly China and Japan) (Million BDT/annum) grew by 8.8% in calendar year 2018 and in calendar year 2019 growth 2.00 is tracking at 8.1% 1.50 Indonesian imports have grown substantially in 2019 1.00
Slide 17: Outlook for FY20
Outlook for FY20 FY20 outlook • Midway expects there to be a short term imbalance between Brazilian producers and Chinese traders and buyers pulp inventories, which is expected to correct itself in the coming months and pulp prices are anticipated to improve • The medium term supply/demand curve rem
Slide 18: Attachments
Attachments Midway
Slide 19: New accounting standards – impacts FY19
New accounting standards – impacts FY19 Key impacts – AASB 15 Revenue from contracts with customers • The Strategy arrangement entered into (disclosed in Appendix 4E note 4.11) to repurchase hardwood trees previously sold is deemed a financing arrangement as a result of Midway’s obligation to repurc
Slide 20: Questions?
Questions ? Midway