CHANGING THE WORLD OF PACKAGING

onlyuseHalf Year Results FY22

ersonalFebruary 2022

ASX: SES

STRONG OUTLOOK

SECOS has a strong growth trajectory in the bioplastic market

only

Current

investment

Launch of new

Growth in pet

taking sales

Expansion of local

global research &

waste bags

capacity to

development

Council

expected to

Expansion of

over $60 million

centre with multi

organic waste

Several trials of

grow in 2HFY22

MyEcoBag®

pa now available

Planned capacity

university

useStrong growth

and production

diversion

SECOS' high speed

as Jewett-

range via over

program (FOGO)

expansion aimed to

collaborations

capacity online.

compostable

Cameron

1300 retail stores

expected

achieve over $100

underway. Focus

Newly launched

hygiene cast film in

launches

including

Warehousing in

to drive sales

million

on new

Malaysia

progress with sales

relabeled range

Strong forward

Woolworths,

Mexico to

growth with sales

sales potential

applications and

bioplastic plant

expected in 2HFY22

in USA

pipeline

Officeworks,

service the

weighted to

within next

next generation

available to

to target

Continues to

Veteran Canteen

Americas

2HFY22

four years

bioplastics

supply $25 million

compostable diaper

expand from

Services and

providing better

progressing final

and feminine

major brands in

Pacchini

pa sales

logistical and,

stage - focus on

expected to

hygiene product

various regions

Distributors with

working capital

organic growth

continue into

markets

new retail chains

management

together with entry

ersonal

2HFY22 with

expected in near

into the lucrative

freight and

future

compostable food

Covid pressures

packaging market

expected to

persist in

Ja /Feb 22

Recent developments driving growth

Near term outlook

FY22 Half Year Results - Investor Presentation

2

POSITIONING FOR GROWTH

only

Growth: Bioplastic sales

growing at 21.2% on PCP

outstripping conventional

plastic growth of leading

players

Capacity expansion: Current

use

capacity expansion when sold

will add incremental revenue

of $25m per year

Brand: Significant investment

in USA and Australian digital

ersonal

assets, ecommerce capability

to build retail brands and

extend value chain to retail margin

COVID proofing: Additional investment in inventory to mitigate freight uncertainty and SECOS supported staff during recent Malaysian floods

FY22 Half Year Results - Investor Presentation

Integrated Biopolymer producer in fast growth

industry offering a material alternative to

conventional plastics

New $2 million R & D Centre for excellence established in Melbourne; testing to support product development commenced

New Retail Outlets: Store numbers expansion in Australia and USA ~1300; more anticipated with existing and new retailers

No. 1 performing SKU in Woolworths Garbage Range, Secured new accounts: Officeworks, Pacchini, Veterans Canteen

Strong balance sheet with > $7m cash and no debt at 31-Dec-21

3

SALES GROWTH and ASSET EXPANSION (1HFY '20 -'22)

First Half Revenue Comparative

only

1HFY22

1HFY21

1HFY20

use

0

5,000

10,000

15,000

20,000

Traditional

Bio

$'000

● Sales growth of 10.3% for 1HFY22 vs PCP

ersonal

● The growth in compostable products saw compostable products account for 65.3% of total sales

● Growth in compostable resin, bag and film up 21.2% vs PCP

● Increased interest from general retailers to expand their presence in the Pet Sector and Compostable Bin Liners

for organic waste diversion continue to support sales

● Some further growth

in compostable

bag

sales for food

waste diversion

and organic waste collection is

anticipated in Council business in Australia

FY22 Half Year Results - Investor Presentation

4

1H CAPACITY EXPANSION (1HFY '20 -'22)

Mt Resin/month

Capacity Change 1H '21 vs 1H '22

Million bags/month

only

90

700

600

80

70

500

60

use

80

400

50

300

40

200

40

30

ersonal

20

100

10

0

0

1H '21

1H '22

Bags (mil./month)

Resin (mt/month)

FY22 Half Year Results - Investor Presentation

  • Commitments made to order and install new capacity, will double the ability of the business to supply certified compostable products such as compostable bin liners, dog bags, film and resin.
  • The expansion in resin capacity is for internal use and to supply growing compostable resin demand to 3rd party converters who convert the compostable resin to compostable bags and other end products.
  • With the installation of new capacity SECOS Group will be one of the largest Australian- head quartered producers of compostable products.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

SECOS Group Limited published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2022 21:32:45 UTC.