4. Biffa’s Resources & Energy portfolio
47
InertsRecycling EfW developmentLandfill Gas
Key
Stats
Treatment & disposal of
contaminated inerts
Produces sands and
aggregates
Provides landfill
disposal for untreatable
residues
Sorting and trading of
dry recyclable
commodities
Advanced closed loop
food grade plastic
recycling
Treatment of organic
waste to produce
compost and renewable
energy
Includes long term MBT
contracts at Leicester
and West Sussex
Energy generation from
landfill gas extraction
Net Revenue: £61.7M
Tonnages: 0.5M
Sites: 5
Treatment of general
waste for energy
recovery
Net Revenue: £79.2M
Tonnages: 0.5M
Sites: 8
Net Revenue: £45.5M
GWh: 350
Sites: 36
Net Revenue: £47.1M
Tonnages: 3.6M
Sites: 23
Organics
Overview
*Gross Revenue: £120M
Tonnages: 750ktpa
Sites: 2
Quoted figures refer to the 52 week period ended 29 March 2019 *Gross Project Revenue. Biffa’s share to be incorporated as part of share of net income from JV
5. A reminder of Biffa’s Integrated proposition
Key to success is security of
feed-stock quality and quantity
We have scale and are integrated
48
PRODUCTION
MANUFACTURING /
RAW MATERIALS
BIFFA
POLYMERS
EFW
UK
7. 50
Blue Planet
Consumer awareness – demand for recycled content
Brand Value – Sustainability non-negotiable
Legislation
HMRC – plastic tax
Recyclability – Extended Producer Responsibility
Public opinion and government policy are aligned
(1) Quant survey 2018, UK, CHI,INDO, FR, GER, SP, MEX
78% of consumers prefer more sustainable plastic packaging rather than choosing to abandon plastic completely1
8. Where the different policies for plastics sit in the waste hierarchy
Stages
Most
Preferred
Least
Preferred
Prevention
Re-use
Recycling
Other
recovery
Disposal
51
Ban on single use plastics
Bags for life
Closed loop mechanical recycling
Open loop mechanical recycling
Chemical recycling
Biodegradable plastics
Policy examples
10. 53
A Great Track Record to Build on
Completed In build
2000 ‘02 ‘04 ‘06 ’08 ‘10 ‘12 ‘14 ’16 ‘20
Pre-consumer
PP processing
World’s first food
grade HDPE (milk
bottle) plant
Post-consumer
mixed plastics
processing
2nd HDPE
line
’21
Extend mixed
plastics
capacity
PET Investments
‘18
FY00 FY08 FY16 FY19
Tonnage 6,000 24,000 52,000 63,000
Revenue £2m £10m £20m £40m
11. Collaboration along the entire supply chain from
dairies to supermarkets
In 2008 set a target to achieve 30% recycled content
by 2015
Biffa developed the world’s first food-grade standard
recycling HDPE plant
Won the Queen’s Award for Enterprise Innovation in
2009
Industry standardised labels , glues and pigments to
boost recycling
The result is Biffa’s recycled plastic is used in 85% of
plastic milk bottles
54
We pioneered a Sustainable Industry-wide Model
12. Delivering a True Closed-Loop Recycling Model
55
Collection SortingMixed Recycling
Hot Wash
Bales
Washed flake
Colour sort &
decontamination
PelletsBlow Moulding
Supermarket
Dairy
15. Resources & Waste Strategy Dec 2018 :
To achieve at least 65% recycling of
municipal waste by 2035
To work towards all plastics placed on
the market being recyclable, reusable
or compostable by 2025 and
To eliminate avoidable plastic waste
over the lifetime of the 25 year plan
58
Launched by WRAP
in 2018
Members represent
80% of plastics
packaging sold in UK
supermarkets
The targets for 2025
are :
UK Government Policy is aligning with Europe and Public
Sentiment
16. 59
… and this is Feeding a Huge Uplift in Demand
Growth Drivers for UK processing capacity
Extended producer responsibility boosting demand
Plastic tax
Deposit Return Schemes increasing supply
Sustainability becoming a key measure of business
performance
Increasing capture rates expected to meet
Government and Plastic Pact targets (66% and 70%
by 2025)
Potential South East Asia ban on importing plastics
Potential UK ban on export of plastics
UK processing market could grow 3 - 5x by
2025
- 2017 based on National Packaging Waste data and Biffa recycled tonnage.
- 2021 & 2025 indicative projections based on: exports declining to nil and 70% plastics
recycling target achieved by 2025; total plastics volume remains constant.
17. New PET Bottle Recycling Facility in Seaham
60
£27.5m
Investment
57,000
Tonnes
input pa
1.3bn
Bottles
recycled pa
96
Full time
employees
Biffa
Polymers
Seaham
When completed Seaham will be the most modern and technically advanced
PET facility in the world, converting waste plastic bottles into high purity food
contact material.
£40m
Annual
Revenues
18. Critical Success Factors
61
Biffa is uniquely positioned to succeed
Long established team
Pioneered food safety protocols in Europe
Self-delivered HDPE expansion in 2017
Flexible design to meet all end customers’
requirements
Biffa collections: 2,800 trucks
MRF network provides high quality
sorted materials
Modifying MRFs to expand plastic
sorting capacity
Long-standing relationships through
HDPE business
Supply to blow moulders or brands
directly
De-risked commercial model and long-
term commitments under negotiation
Development &
Operational Excellence
Control of Feedstock Trusted Offtake Partnerships
19. Indicative Expansion Strategy and Impact
62
PP post-industrial 20,000
PP post-consumer 7,000
HDPE post-consumer 28,000
PP wash plant expansion 8,000
63,000
Operational now: Tonnes pa
PET (from FY21) 57,000
120,000
Committed and in-build (£27.5m):
Expand PP post-consumer 15,000
Expand HDPE 14,000
Expand PET 57,000
206,000
Future potential projects (£30-50m):
Medium term targets:
Revenue between £120M - £150M
Operating Profit £10M - £15M
21. Concluding Remarks
#1 in food grade recycled plastic
Integrated supply chain
Market leader today
Government policy alignment and taxes
Brand producers response
Closed loop - highest level of recycling
Unprecedented demand
Same team
Same technology
Same customers
Demonstrated track record
Control of feedstock
Protected margins
Strength of team
De-risked business model