Investor Presentation April 2018

Transcription

1 Investor Presentation April 2018

2 INTRODUCTION TO CLOSE THE LOOP

3 Close the Loop - who we are Australian-owned company aiming to be the global leader in sustainability solutions in complex waste streams and data management Industry pioneer and market leader across Australia (HQ), USA and Europe Vital partner to 15 of the world s largest printer and print consumable OEMs Increasingly focusing on value-added services and expanding into new vertical markets, such as food & beverage and banking Vast sector experience and IP developed over 10+ years Listing on ASX in

4 Close the Loop - what we are dedicated to Making the Circular Economy a reality by providing best-in-class sustainability solutions to companies that want to enhance their Corporate Social Responsibility through effective and efficient recovery and re-use of valuable resources from their products. 4

5 Close the Loop - what we do With commitment to Zero Waste to Landfill, we do three things to help companies manage complex waste streams: 1. Return end-of-life products to original manufacturers (OEMs) for re-use where possible. 2. Provide data analytics and other value-add services that allow OEMs to optimise their sales chain as well as consumable and waste stream operations. 3. Use a range of patented processes to recover all materials from those products which are reused in the re-manufacture of those products, or turned into new innovative products. 5

6 Why do OEMs need us? Our services enable OEMs to: Maintain and develop their market share; Utilise key operational information that can increase their revenue and reduce costs; Remain regulatory compliant, where relevant. 6

7 Market levers Non-genuine cartridges Growing recognition of Circular Economy Legislation in various markets Greater understanding of the value-add provided by Close the Loop Changes in the downstream plastics market (China) Demand for CtL s services is expected to increase in the future. 7

8 Close the Loop - how we make money Annuity-style revenue model Multiple income streams from collection, processing and refurbishment of consumables, and creation and sale of innovative new recycled products. Set fee per cartridge or kilo Under OEM contracts Collection and sorting of cartridges, reporting on volumes collected, recycled, refurbished or redistributed Repurposed toner waste bottles Business intelligence services Recycled products such as TonerPave TM and TonerSeal TM used in production and repair of high quality asphalt roads Strong margins with further potential from providing value-added services Base materials (granulated plastic and metals including ferrous and aluminium) automatically sorted and sold at prevailing market rates 8

9 Well positioned to expand in existing & new markets USA (established 2007) Hebron, Kentucky, Close to mid-west US logistics hub Revenue A$21m; Profit before tax A$3.006m Over 40 million cartridges p.a. 115 employees Collection sites operated by OEMs Europe (acquired October 2016) Malle, Belgium 30km from Antwerp Pro forma revenue A$3.290m; Loss before tax A$871k Over 3 million cartridges p.a. 30 employees Australia (established 2001) Headquarters in Somerton, Victoria Revenue $9.088m; Profit before tax $345k Over 4 million cartridges p.a. 50 employees Multi-vendor program with Planet Ark; over 35,000 collection sites nationally 9

10 Experienced & recognised management team The management team and Board have a proven track record in leading successful businesses, and are making the Company a global premier sustainability solutions provider. Craig Devlin Chairman Appointed to Board in 2001; Chairman since years experience as a practicing accountant and management consultant. Founder of Devlin & Co, Accountants, and principal of Devlin Business Development Group Pty Ltd. On several Boards as either director or Chairman. Robert Parry-Jones CEO Joined Company in Extensive experience across Europe, the Middle East, Africa, the US, and Australia, ranging from start-up to > $1bn in turnover. Strong track record of building efficient and successful companies with background in Biotechnology, Medical Devices, Automotive and Hi-Tech Electronics. Marc Lichtenstein CFO and Company Secretary Joined Company in CFO experience across listed and large private companies. Extensive experience in leading businesses through significant periods of change, including business transformation and performance improvement including IPOs, significant capital raises, exponential periods of growth and major acquisitions. 10

11 Growing market, supported by strong fundamentals Close the Loop s largest competitor is landfill. 75% of global imaging consumables currently end up in landfill Print toner market increasingly driven by robust growth in packaging (driven by online sales). Counteracting the impact of the paperless office. Increasing rate of cartridges being recycled or remanufactured. Increasing social awareness, and corporate social responsibility and ESG reporting. 11

12 Growing market, supported by strong fundamentals Increased regulatory initiatives designed to protect the environment and increase company management across the whole product lifecycle. EU WEEE Directive in full effect by 2019, will legislate recycling targets on IT & telecommunications equipment Close the Loop is the only specialist toner cartridge recycler of any scale so has forged strong relationships with OEMs. OEMs motivation to recycle as a means to reduce the potential number of remanufactured or counterfeit products is increasing. 12

13 Expanding to other complex waste streams 13

14 GROWTH STRATEGY

15 Growth strategy Five key areas for continued growth and maintaining leadership position. Grow existing print business by increasing revenue per customer and proportion of value added services to OEMs Sell existing services to new clients Develop and sell new internal services; drive horizontal growth Geographic expansion leveraging newly acquired operations and strong OEM relationships Acquisitive expansion into emerging verticals 15

16 Shifting focus to value-added services New value-added services allows deeper customer penetration and expands target market Value-added services which are typically too costly or inefficient to implement by OEMs, create opportunities for CtL Refurbishment Customer Audits & IT Support Valet Services Supply Chain Services Data Reports 16

17 Targeting $100m in revenue by the end of 2020 CtL has identified and commenced organic & inorganic expansion into new vertical markets. The recent acquisition of CloZDloop in Belgium provides a strong platform for expansion into Europe, a highly environmentally conscious jurisdiction. Trusted relationships with OEMs have led to new value add opportunities, in particular the cleaning of waste toner bottles at high margins Currently, circa 5% of print cartridges are recycled in the US, compared to 20% in Australia, Whilst CtL is the market leader, a large unaddressed market exists. Through refined collection programs and legislative recycling targets for electronic components being introduced in Europe in 2018, CtL expects to increase the proportion of global cartridges recycled. CtL will leverage its existing infrastructure and IP to provide resource recovery services to other growth markets such as Soft Plastics, Separation and Compounding. 17

18 Thank You