Myeco Group Ltd · ASX:MCO
Myeco — H1 FY2021 Earnings Presentation
19 slides from Myeco's earnings presentation, Mar 3, 2021
Slide 1: FY21 Half-yearly Results Presentation
Changing the World of Packaging FY21 Half-yearly Results Presentation February 2021 1 (ASX: SES)
Slide 2: SECOS Company Profile
SECOS Company Profile SECOS Group Limited (ASX: SES) is a leading developer and manufacturer of sustainable packaging materials. SECOS produces eco-friendly bioplastics using starch-based polymers to create a wide range of certified (Industrial & Home) compostable & bio-based resin, film and bag pro
Slide 3: 1HFY21 Performance Highlights
1HFY21 Performance Highlights SECOS is a global leader in the supply of compostable and biodegradable bioplastic resins and products • Positive EBITDA $576K and NPAT $66K • Revenue up 30.5% vs PCP • Biopolymer sales up 129% vs PCP • Gross profit margin 18.2% vs 14.2% PCP Financial • Strong balance s
Slide 4: SECOS Integrated Business Model
SECOS Integrated Business Model Fully vertically integrated production capacity from raw materials to finished product Provides cost and supply chain efficiencies, and flexibility in best utilising production capacity At each stage SECOS can sell globally to converters or use internally to create &
Slide 5: Corporate Overview
Corporate Overview ASX Code: SES Substantial Shareholders R&K EDWARDS INVESTMENTS LLC 10.7% Share Price (1 March 2021) $0.30 BELGRAVIA STRATEGIC EQUITIES 9.4% Market capitalisation (@ 30 cents) $160m DONALD HALLER JR 8.5% Shares on issue (listed) 533m Top 20 62.4% Cash on hand (31 December 2020) $14
Slide 6: The Biopolymer market is growing rapidly
The Biopolymer market is growing rapidly Source: https://www.marketsandmarkets.com/Market-Reports/biopolymers-bioplastics-market Source: https://www.european-bioplastics.org/market/ China joins other countries to implement a ban on traditional plastic bags in many cities which will drive demand fo
Slide 7: Global Sales & Production Infrastructure
Global Sales & Production Infrastructure Compounding Lines Blown Film Lines SECOS Group experienced sales growth in all regions with significant growth in new markets and customers in Oceanic and the Americas Cast Lines Geographic Sales Mix (AU$, '000) 8,000 1% 300% 7,000 250% 6,000 200% 5,000 Biopo
Slide 8: Global Client Base
Global Client Base Over 358 Clients globally, including: 8
Slide 9: Competitive Advantages
Competitive Advantages • Superior biopolymer development expertise: SECOS has extensive expertise in the development of thermoplastic starch based formulations for a wide range of applications which provide superior mechanical properties and higher flow characteristics. SECOS products are certified
Slide 10: Key Markets – Biopolymer Bags
Key Markets – Biopolymer Bags ($m) Biopolymer Bag Sales $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 SECOS biopolymer bag sales are driven by Council Food Organics and Garden Organics (FOGO) programs, bin liner sales and dog waste bags: o Strong demand fo
Slide 11: Key Markets – Biopolymer Film
Key Markets – Biopolymer Film ($m) Biopolymer Film Sales $0.8 $0.7 $0.6 $0.5 $0.4 $0.3 $0.2 $0.1 $0.0 H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 Biopolymer Film sales is the fastest growth category (albeit from a low base): o Hygiene/Diaper demand for compostable film for diaper back sheet and packagin
Slide 12: Key Markets – Biopolymer Resin
Key Markets – Biopolymer Resin ($m) Biopolymer Resin Sales $5.0 $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 Bioresin sales continue to demonstrate growth: 164% from H1 FY21 vs PCP o New grades gaining traction in Americas markets across a wide range of a
Slide 13: Half Yearly Gross Margin Improvement
Strong Growth Trajectory Half Yearly Gross Margin Improvement • Significant work has been undertaken to build margins; 20.0% reduce costs and enhance market position. 18.0% • Some margin compression in 1HFY21 vs the 2HFY20 due to 16.0% FX impacts, and short-term costs associated with expansion of pr
Slide 14: Summary Profit & Loss
Summary Profit & Loss $’000 31-Dec-2020 31-Dec-2019 • Strong sales growth fuelled by growing demand for compostable products Sales 13,859 10,619 Cost of sales (11,330) (9,112) • Sales growth being delivered via expanded Gross profit 2,528 1,507 production capability, with cost disciplines are yieldi
Slide 15: Balance Sheet
Balance Sheet $’000 Dec-20 Jun-20 Cash 14,383 2,878 • $14.3m cash on hand (31 Dec 2020) Inventories 3,562 2,449 Receivables and other receivables 5,436 3,245 • No debt ($19k overseas government subsidies treated as loan) Total Current Assets 24,060 9,107 Other assets 211 23 Property, plant and Equip
Slide 16: Growth Strategy
Growth Strategy • Sharp focus on growing higher margin sales ensuring plant capacity can be allocated to more profitable Resin • Continue development of resin grades for new applications • Both Compostable & BioHybrid™ (bio-based PE) business to optimize working capital • Target Higher margin biores
Slide 17: Outlook 2H FY21
Outlook 2H FY21 SECOS is committed to reducing single-use plastics; to reduce environment contamination and marine plastic waste The forward pipeline for the Company is strong, with SECOS seeing significant growth opportunities with major brands in various regions SECOS is seeing a significant n
Slide 18: Investment Highlights
Investment Highlights • SECOS is benefitting from a global wave of regulatory and consumer pressure to replace single-use plastics • Accelerating growth in demand for biopolymers being driven by multiple converging industry drivers — Regulators demanding elimination of single use plastics (latest ex
Slide 19: Forward-looking statements disclaimer
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 futu