Cleanaway Waste Management Ltd. · ASX:CWY
Cleanaway Waste Management — Investor Day (December 2020)
34 slides from Cleanaway Waste Management's investor day presentation, Dec 18, 2020
Slide 1: Presentation - FY21 Cleanaway Investor Series
18 December 2020 For personal use only Company Announcements Office ASX Limited Exchange Office Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam Presentation - FY21 Cleanaway Investor Series Attached is an investor presentation to be made by Cleanaway at 10am AEDT today. Details on how to jo
Slide 2: FY21 Investor Series
For personal use only FY21 Investor Series - Victorian Commingled Resource Recovery - Data, Analytics and Process Automation Presenters: Vik Bansal – CEO and Managing Director Mark Crawford – EGM, Solid Waste Services Alex Smith – Head of Commercial 18 December 2020
Slide 3: Disclaimer
For personal use only Disclaimer • The information in this presentation does not contain all the information which a prospective investor may require in evaluating a possible investment in Cleanaway Waste Management Limited (“CWY”) and should be read in conjunction with the CWY’s other periodic and
Slide 4: Agenda
Agenda Presenter Page For personal use only Introduction Snapshot of Cleanaway 4 Value Creation Story – “Making a sustainable future possible “ 6 Vik Bansal (VB) Footprint 2025 8 SKM Acquisition 9 Victorian Commingled Resource Recovery 10 Solids Victoria Value Chain 11-12 Mark Crawford
Slide 5: Snapshot of Cleanaway
Snapshot of Cleanaway Australia’s leading total waste For personal use only management, industrial, environmental and health services company. 6,000+ 5,300+ 250+ Employees Vehicles Sites Australia wide Vertically integrated from collection, to resource and energy recovery, to waste treatment and lan
Slide 6: Revenue streams linked to GDP with defensive characteristics
Revenue streams linked to GDP with defensive characteristics For personal use only Cleanaway’s revenue base is Solid Waste Services largely underpinned by long-term Typical contract duration FY20 Segment Net contracts across all sectors with a • Municipal: 7 - 10 years geographically diverse custo
Slide 7: Cleanaway's Value Creation Story
Cleanaway’s Value Creation Story • Our Value Creation Story is based on our strategic pillars of People, Earth, Markets, Assets and Financials. For personal use only • With a focus on strategic pillars our inputs are transformed through our business activities, applying Our Cleanaway Way, to create
Slide 8: People & Culture: Key Metrics
People & Culture : Key Metrics Total Recordable Injury Frequency Rate1 Turnover (%) and Headcount Employee Engagement Survey2 For personal use only Engagement rate Employees (participation rate) 6,015 6,50 0 80% CAGR -16.1% 8,0 00 20. 00% (86%) 75% 5,939 6,015 19. 00% 6,00 0 7,0 00 70% 62% 64% 18. 0
Slide 9: Delivering Footprint 2025 – Acquisitions and Greenfield to continue
Delivering Footprint 2025 – Acquisitions and Greenfield to continue For personal use only Collections Resource recovery Energy from Waste Treatment and Disposal Perth MRF* Doubled electricity generation Planning permit for 2 x WA transfer stations at Melbourne facility Melbourne Landfill unt
Slide 10: Acquisition of SKM assets (Nov 2019)
Acquisition of SKM assets (Nov 2019)… SKM Adelaide sites SKM Coolaroo MRF For personal use only • No operations at sites Key prized asset • Wingfield and Lonsdale • Plant and equipment • Sites to be sold and on relatively new (~1 yr.) but in market now need of R&M • Potential to add Pute SKM Laverto
Slide 11: Agenda
Agenda Presenter Page For personal use only Introduction Snapshot of Cleanaway 4 Value Creation Story – “Making a sustainable future possible “ 6 Vik Bansal (VB) Footprint 2025 8 SKM Acquisition 9 Victorian Commingled Resource Recovery 10 Solids Victoria Value Chain 11-12 Mark Crawford
Slide 12: Integration and contract renegotiation completed in FY20 as promised
Integration and contract renegotiation completed in FY20 as promised .. For personal use only SKM assets to Victorian Commingled Resource Recovery (VCRR) FY21 + Jun-20 Aug-19 Nov-19 Mar-20 May-20 Wasteman2 July-20 Receivers CWY Assets Assets re- rollout Integration appointed acquired integrated mark
Slide 13: VCRR Background: Acquired key prized assets in strategic locations
VCRR Background: Acquired key prized assets in strategic locations Laverton MRF, PRF For personal use only Key prized asset Coolaroo MRF • Processing technology improved Key prized asset • New plastics recovery facility with plastic • Relatively new plant and sorting capability to support network eq
Slide 14: Major site remediation and equipment overhaul was completed
Major site remediation and equipment overhaul was completed For personal use only Completed Workstreams • Cleared stockpiles • Implemented R&M regime • Relocated management within plant • Installed glass quality improvement equipment • Overhauled metals extraction and baling • Upgraded fire and safe
Slide 15: Improvements to processing technology has delivered high purity commodities
Improvements to processing technology has delivered high purity commodities…. For personal use only … that can be sold in relevant markets or be further beneficiated 14
Slide 16: Managing contamination, including contamination fees
Managing contamination, including contamination fees, is key in… For personal use only • Contamination is any materials that are not accepted by VCRR (as advised to customers). • Incoming loads are sampled for contamination including testing for hazardous waste that may contaminate the entire load.
Slide 17: Further Victorian commingled waste opportunities exist
Further Victorian commingled waste opportunities exist… For personal use only Addressable market • Total market for kerbside commingled waste in Victoria is estimated to be ~670k tonnes p.a. • VCRR is currently processing ~30% of this, including ~50% of Victoria’s total kerbside plastics • Addition
Slide 18: Plastic Sorting Facilities are a key part of the value chain
Plastic Sorting Facilities (PRFs) are a key part of the value chain… For personal use only … with Laverton PRF processing ~40kt of mixed plastics into individual polymers ready for recycling 17
Slide 19: Million tonnes of recyclable polymers consumed annually
~ 2 million tonnes of recyclable polymers consumed annually For personal use only Australian Plastics Consumption by Polymers most suitable for mechanical Polymer recycling Total 3.4 million tonnes 1 1 Unknown PET PET 15% 363 kt 363 kt 2 11% 2 Other HDPE 11% 654 kt HDPE 19% Nylon 1.9mt 4 3% PS 352 k
Slide 20: Value Creation through Glass Beneficiation
Value Creation through Glass Beneficiation Resource recovery Value Chain Extension Creating value through the shift from a cost to dispose to capturing commodity revenue For personal use only Municipal Solid Container Waste Deposit Schemes • Availability of feedstock through Melbourne MRFs Comingled
Slide 21: We have delivered a complete customer solids solution in Victoria
We have delivered a complete customer solids solution in Victoria… 25+ For personal use only 1,000+ 900+ 45+ Employees Vehicles Sites Prized infrastructure assets End to end customer solution for Victorian solids Collections Resource recovery Energy from Waste Treatment and Disposal Metro and regi
Slide 22: Agenda
Agenda Presenter Page For personal use only Introduction Snapshot of Cleanaway 4 Value Creation Story – “Making a sustainable future possible “ 6 Vik Bansal (VB) Footprint 2025 8 SKM Acquisition 9 Victorian Commingled Resource Recovery 10 Solids Victoria Value Chain 11-12 Mark Crawford
Slide 23: Data & Analytics is a key enabler of 'Go to Market' value creation
Data & Analytics is a key enabler of ‘Go to Market’ value creation… Our framework brings together related element to deliver a better customer experience and For personal use only margin improvement … Elements Outcomes Process automation Data and analytics Customer experience Customer satisfaction /
Slide 24: Digitisation and Automation improves customer & employee experience
Digitisation and Automation improves customer & employee experience Customers Employees (drivers) For personal use only Self service bookings Single view of customer to support FTSP issue resolution Dynamic remedy of service issues Digitised, informative and accurate run sheets Instant, accurate and
Slide 25: Customer experience transformation
Customer experience transformation For personal use only NOT EXHAUSTIVE I look for a provider, and I I set up my I schedule & I encounter a I provide Customer want a quote service receive service I pay my bill problem feedback journey Current • Lack of digital • Receive paper • Rigid • Errors in • E
Slide 26: Employee experience transformation (driver example)
Employee experience transformation (driver example) For personal use only NOT EXHAUSTIVE I get my run I notify the I notify of any sheet I drive per plan I lift waste status maintenance Employee issues journey Current • Difficult to make • Runs are • Inaccurate or • Lost of misplaced • Manual (paper
Slide 27: Digital interactions – live examples in Municipal segment
Digital interactions – live examples in Municipal segment… For personal use only Customer self-service Muni tracking Dispute tracking and Driver: Digitised portal (B2B API) live chat scheduling Schedule a pickup Councils see real-time status Digital logging of customer Digitised scheduling and run-
Slide 28: Data & Analytics represents a margin expansion opportunity
Data & Analytics represents a margin expansion opportunity …… For personal use only 1. Price optimisation will drive smarter pricing decisions through Collections Post Collections targeted pricing opportunities 2. Sales effectiveness and churn 1 4 management provides revenue and Value Drivers Price
Slide 29: We have now developed the necessary in-house capability
Collections Post Collections 1 4 Price Optimisation Footprint Network Value Drivers 2 Sales Effectiveness & 5 Plant Optimisation Churn Management We have now developed the necessary in-house capability… 3 Route Optimisation 6 Advanced Analytics Process Standardisation bler Ena s Data Infrastructure
Slide 30: Price optimisation through profitability transparency
Collections Post Collections 1 4 Price Optimisation Footprint Network Value Drivers 2 Sales Effectiveness & 5 Plant Optimisation Churn Management 3 Route Optimisation Price optimisation through profitability transparency… 6 Advanced Analytics Process Standardisation bler Ena s Data Infrastructure &
Slide 31: Improving sales effectiveness and churn management
Collections Post Collections 1 4 Price Optimisation Footprint Network Value Drivers 2 Sales Effectiveness & 5 Plant Optimisation Churn Management Improving sales effectiveness and churn management... 3 Route Optimisation 6 Advanced Analytics Process Standardisation bler Ena s Data Infrastructure & R
Slide 32: Route optimisation reduces drive time significantly
Collections Post Collections 1 4 Price Optimisation Footprint Network Value Drivers 2 Sales Effectiveness & 5 Plant Optimisation Churn Management 3 Route Optimisation Route optimisation reduces drive time significantly… 6 Advanced Analytics Process Standardisation bler Ena s Data Infrastructure & Re
Slide 33: A staged plan will be implemented over the next years
A staged plan will be implemented over the next ~ 3 years… For personal use only Stage 1 Stage 2 Stage 3 Selective use-case deployment Digitised customer experience Digitisation at scale Current program of work Includes: • Digitised customer onboarding Includes: Scale Cleanaview and complaint mana
Slide 34: Questions
Questions For personal use only Confidential | 33 33
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