Midway — Shareholder Meeting (October 2018)
15 slides from Midway's shareholder meeting presentation, October 2018
Slide 1: 2018 Annual General Meeting of Shareholders
2018 Annual General Meeting of Shareholders October 2018 Tony Price Managing Director, 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 • Financials • Areas of Expertise • Growth Strategy • Investments • Outlook
Slide 4: Solid Financial Results in FY18
Solid Financial Results in FY18 FY18 results in line with consensus forecasts Revenue $231.9M +10.8% • The full year 2018 financial results were in line with consensus forecasts, achieving EBITDA before significant items of $28.7M (2017: $28.0M) • Acquisition of Plantation Management Partners (PMP)
Slide 5: What we do well
What we do well Key areas of expertise Plantation and land Harvesting and logistics Processing and materials Marketing and shipping Management • 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 ▪ 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 South East Asia ▪ Other opportunities both domestically and internat
Slide 8: Expanding Our Geographic Footprint
Expanding Our Geographic Footprint
Slide 9: Diversifying Our Earnings Growth
Diversifying Our Earnings Growth EBITDA $'M by geographic location 2017 1.2 -2.4 Victoria Queensland 29.2 Eliminations EBITDA $'M by geographic location 2018 0.9 -3.3 0.4 Victoria 1.7 Tasmania 1.0 Northern Territory 28.0 South East Asia Queensland Eliminations
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 market
Slide 11: Our WA Biomass Acquisition
Our WA Biomass Acquisition ▪ Midway will invest up to $8.0M (of which 70% has already been paid) for the acquisition of 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 acces
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 Mau
Slide 13: Growing our Tasmanian Business
Growing our Tasmanian Business ▪ Midway Tasmania has commenced trading and is actively seeking to grow 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
Slide 14: Positive pricing outlook
Positive pricing outlook Hardwood Chip Imports Volume, 2008-2017 (‘000 BDMT) • Woodfibre demand in Asia-Pacific expected to continue to 14,000 Japan China increase with most shipments bound for China and Japan 12,000 10,000 • China demand has exceeded Japan since 2017, while 8,000 Japan has continue
Slide 15: In Summary
In Summary • A solid financial performance • Growth Strategy is progressing well • Market outlook is strong