Cleanaway Waste Management (CWY) investor relations material

Strategic evolution and future direction

• Blueprint 2.0/2030 2.0 shifts focus from foundational investments to extracting more value from existing assets, leveraging scale, network, and technology for growth, margin expansion, and cash flow improvement.

• The strategy is built on three pillars: customer value, optimized branch network, and advanced ways of working, with initiatives like centralized sales, dynamic pricing, and digitization.

• Customer value is enhanced through centralized sales, smarter pricing, and digital-first engagement, aiming for higher-value revenue and improved retention.

• Selective investments target scalable growth platforms, especially in hazardous waste, industrial services, and DD&R, while maintaining a focus on safety and efficiency.

• Advanced ways of working leverage digitization, AI, and organizational simplification to reduce indirect costs and enable scalable growth.

Financial guidance and shareholder outcomes

• EBIT margin is targeted to expand by at least 260 basis points, with capex maintained at AUD 415 million per annum and a focus on stable, increasing free cash flow and mid-teens IRR on growth capital.

• EPS growth is guided at 10%-15% from FY 2028 and beyond, with FY 2027 expected to outperform due to cost reviews and acquisition synergies.

• Free cash flow is now a central performance metric, with short-term incentives aligned to it and payout ratios of 50%-75% of underlying NPAT maintained.

• The business expects to fund growth CapEx, dividends, and deleveraging from internal cash generation, supporting a stable investment-grade profile.

• Ongoing headwinds include higher interest rates, working capital growth, and landfill remediation costs, but these are expected to moderate over time.

Operational and business development highlights

• Centralized sales engine and dynamic pricing tools are replacing legacy systems, increasing product reach and improving customer experience.

• Digitization initiatives, including Customer Connect, self-service portals, churn analytics, and AI-driven tools, are being rolled out to optimize performance and customer experience.

• Fleet modernization and logistics optimization are delivering cost savings, improved safety, and higher asset utilization, with over 1,000 new vehicles to be deployed in 3-4 years.

• Hazardous waste and Contract Resources businesses are being integrated and optimized, focusing on scalable, profitable growth and leveraging technical expertise.

• The company is selective in new investments, prioritizing scalable opportunities that connect to the existing network and deliver attractive returns.