Slide 1: FY23 Half Year Results Presentation
rsonal use only FY23 HALF YEAR RESULTS PRESENTATION FEBRUARY 2023 ASX: SES CHANGING THE WORLD OF PACKAGING SECOS GROUP LIMITED (ASX: SES) 1 FY23 HALF YEAR RESULTS PRESENTATION
Slide 2: Agenda
Agenda rsonal use only • Highlights & Operational Review • Financial Summary • Strategy & Outlook SECOS GROUP LIMITED (ASX: SES) 2 FY23 HALF YEAR RESULTS PRESENTATION
Slide 3: Highlights & Operational Review
HIGHLIGHTS & rsonal use only OPERATIONAL REVIEW SECOS GROUP LIMITED (ASX: SES) 3 FY23 HALF YEAR RESULTS PRESENTATION
Slide 4: Strategy Achieves Critical Milestones
STRATEGY ACHIEVES CRITICAL MILESTONES Market leading MyEco® Branded products now distributed through over 2000 stores rsonal use only • • Exclusive sales agreement with Jewett Cameron (JCC) for supply of MyEcoWorld® into USA and Canada with sales target of US$2.8m (AU$4.0m) to maintain exclusivity.
Slide 5: H1 Revenue Analysis by Product Segment: Compostable Bags Retail
H1 REVENUE ANALYSIS BY PRODUCT SEGMENT COMPOSTABLE BAGS - RETAIL AND • H1 FY23 MyEco® Retail sales achieved a record result with rsonal use only over $1m in sales for H1 FY23 WHITE LABEL $3,500,000 • Over 100% growth of MyEco® retail brand sales in major retailers and independent distributors in the
Slide 6: H1 Revenue Analysis by Product Segment: Council & Waste
H1 REVENUE ANALYSIS BY PRODUCT SEGMENT COMPOSTABLE BAGS - COUNCIL & WASTE rsonal use only H1 FY23 Councils sales impacted with growth $3,000,000 expected to continue in H2 FY23: ● Sales to Councils slowed during H1 FY23 due to $2,500,000 impacts from supply chain and Covid19 disruption during the pr
Slide 7: H1 Revenue Analysis by Product Segment: Compostable Resin
H1 REVENUE ANALYSIS BY PRODUCT SEGMENT COMPOSTABLE RESIN SALES H1 FY23 Bio-resin sales reduced due to excess inventory rsonal use only $6,000,000 caused by supply chain disruption during prior year ● Excess inventory of bio-resin held at a major $5,000,000 converter in LATAM causing slower resin sal
Slide 8: H1 Revenue Analysis by Product Segment: Traditional Plastic
H1 REVENUE ANALYSIS BY PRODUCT SEGMENT TRADITIONAL PLASTIC SALES H1 FY23 Traditional plastic sales continue to decline in line rsonal use only $7,000,000 with the SECOS’ strategy to reduce single use plastic in the environment: $6,000,000 ● SECOS remains committed to strategically reducing low margi
Slide 9: MyEco Highlights
MYECO® HIGHLIGHTS ● Over 100% growth in MyEco® Branded products significantly offset major impacts to the group’s other segments including resin and rsonal use only council sales ● SECOS to expand the highly successful MyEco® product range with a new product launch expected during H2 FY23 Growth in
Slide 10: Exclusive Sales Agreement With JCC
EXCLUSIVE SALES AGREEMENT WITH JCC ● For the supply of MyEcoWorld® product range and rsonal use only other converted compostable products in USA and Canada ● Jewett Cameron (JCC) will launch MyEcoWorld® branded range to major US retailers ● Effective 31 March 2023, sales target of US$2.8m (AU$4.0m)
Slide 11: Current Markets Driving Sales Growth
CURRENT MARKETS DRIVING SALES GROWTH Market Product Sales Channel Branding Status Compostable Bags - Retail Direct Major Retailers (Coles/Woolworths) MyEcoBag® In Market/Growing Council FOGO Bags Direct to Council Cardia® In Market/Growing Compostable Pet Waste Bags White Label (EzyDog) Login® In Ma
Slide 12: Fully Integrated Value Chain
FULLY INTEGRATED VALUE CHAIN ● SECOS has a fully vertically integrated production capability from raw materials to the finished product ● Integration provides cost and supply chain efficiencies, flexibility around asset utilisation and participation in the full value chain ● At each step in the proc
Slide 13: Financial Summary
rsonal use only FINANCIAL SUMMARY SECOS GROUP LIMITED (ASX: SES) 13 FY23 HALF YEAR RESULTS PRESENTATION
Slide 14: FY22 Gross Margin Impact and Recovery in FY23
FY22 GROSS MARGIN IMPACT AND RECOVERY IN FY23 Gross Margin (%) by Quarter 16.0% rsonal use only 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Mar-22 Qtr Jun-22 Qtr Sep-22 Qtr Dec-22 Qtr ● Key raw material and freight costs continue to normalise, which will further support stronger product margins going
Slide 15: Working Capital and Cash Flow
WORKING CAPITAL AND CASH FLOW Cash Flow Movement $’000 H1 FY23 H1 FY22 rsonal use only Cash Flows from Operating Activities 1,137 (2,529) Cash Flows from Investing Activities (372) (1,218) Cash Flows from Financing Activities (396) (389) Net Cash Movement 369 (4,136) Foreign Exchange 9 (79) Closing
Slide 16: Net Profit After Tax Movement
NET PROFIT AFTER TAX MOVEMENT rsonal use only H1 FY23 NPAT was impacted by: ● Decrease in sales volumes including strategic decision to reduce low margin traditional plastic sales ● $0.4m in material costs increases ● Increase of $0.3m in marketing and people investment to support growth and researc
Slide 17: Strategy & Outlook
STRATEGY & OUTLOOK rsonal use only SECOS GROUP LIMITED (ASX: SES) 17 FY23 HALF YEAR RESULTS PRESENTATION
Slide 18: SECOS' Reach and Range Now Achieving Scale
SECOS’ REACH AND RANGE NOW ACHIEVING SCALE H1 FY23 Revenue Film, 564,071, 5% rsonal use only Traditional, 4,065,910, Bags, 35% 4,647,316, 39% Resin, 2,481,263, 21% ● SECOS supplies over 25 Countries globally ● Bio Bags now represent largest segment replacing resin and traditional plastic due to succ
Slide 19: Outlook
OUTLOOK Improving outlook driven by growth initiatives and normalisation of supply chain disruptions SALES OUTLOOK IS STRENGTHENING rsonal use only ● Commencement of exclusive sales agreement with JCC to supply MyEcoWorld in USA and Canada ● Continuing retail momentum with adoption of MyEco branded
Slide 20: Forward-Looking Statements Disclaimer
FORWARD-LOOKING STATEMENTS DISCLAIMER This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation: rsonal use only • estimates of future earnings; • estimates of future production and sales; • estimates of future cash costs; • estimates of
Slide 21: rsonal use only
rsonal use only SECOS GROUP LIMITED (ASX: SES) 21 FY23 HALF YEAR RESULTS PRESENTATION