Mattr Corp · TSX:MATR
Mattr — Investor Presentation (March 2024)
23 slides from Mattr's investor presentation, March 2024
Slide 1: Mattr Investor Presentation
Mattr Investor Presentation March 2024
Slide 2: Forward Looking Information
Forward Looking Information This presentation contains forward-looking information within the Additional information on the risks and uncertainties on the meaning of applicable securities laws. Words such as "may", "will", Company’s business can be found in the Company’s current Annual "should", "an
Slide 3: Mattr in Brief
Mattr in Brief Mattr Is A Materials Technology Company Enabling Renewal & Expansion of Critical Infrastructure $0.9B 2023 FY 1,500+ • Mattr is a growth-oriented, global materials technology Employees company Annual Worldwide Revenue • Serves critical infrastructure markets, including electrification
Slide 4: A Materials Technology Company Enabling Renewal & Expansion of Critical Infrastructure
A Materials Technology Company Enabling Renewal & Expansion of Critical Infrastructure Leading Player in Every Target Market Our Brands are Trusted to Deliver: BUSINESSES Extreme capability & reliability in Composite Technologies Connection Technologies Manufacturer of flexible and environmentally
Slide 5: Positioned to Benefit from Long-Cycle Macro Themes
Positioned to Benefit from Long-Cycle Macro Themes Aging Population Resource Climate Infrastructure Movement Scarcity Change Replacements needed for New infrastructure needed Infrastructure needed for High quality, lower CO2 footprint infrastructure at end of life to support population growth & wate
Slide 6: High-Value Materials Based Technology Offerings
Expertise in extrusion High-Value Materials technology and complex manufacturing Based Technology Offerings Composite Technologies Manufacturer of flexible and environmentally-friendly composite solutions for severe environments and applications – extending lifespan and lowering risk Premium Quality
Slide 7: Fuel Stations are Modernizing and Expanding
Composite Technologies Fuel Stations are Modernizing and Expanding Manufacturer of flexible and environmentally-friendly composite solutions for severe environments and typically applications – extending require 3-5 lifespan and lowering risk mid-to-large volume tanks per location Xerxes uniquely
Slide 8: Xerxes HydroChain – Enabling Long-Life Clean Water Solutions
Composite Xerxes HydroChain – Enabling Long-Life Technologies Manufacturer of flexible and Clean Water Solutions environmentally-friendly composite solutions for severe environments and applications – extending Capture and Conveyance lifespan and lowering risk o Site-specific designs with highly eng
Slide 9: Flexpipe Technology Advancement Dramatically Expands Addressable Market
Composite Flexpipe Technology Advancement Dramatically Technologies Expands Addressable Market Manufacturer of flexible and environmentally-friendly EMEA composite solutions for severe environments and Canada applications – extending United States lifespan and lowering risk APAC o Larger diameter (u
Slide 10: Built to Operate in Extreme Environments with Uncompromising Reliability
Connection Built to Operate in Extreme Environments with Technologies Supporting global Uncompromising Reliability electrification by providing specialty wire, cable and integrated heat shrink solutions for severe environments and applications – extending lifespan and lowering risk COMMUNICATION AER
Slide 11: Shawflex US Geographic Expansion Opportunity
Connection Technologies Shawflex US Geographic Expansion Opportunity Supporting global electrification by providing specialty wire, cable and integrated heat shrink solutions for severe >70% environments and applications – extending of US Electrical Utility lifespan and lowering risk US addressable
Slide 12: DSG Growth in Industrial & Infrastructure Markets
Connection Technologies Supporting global DSG Growth in Industrial & Infrastructure Markets electrification by providing specialty wire, cable and integrated heat shrink solutions for severe Automotive 1998 2023 environments and applications – extending lifespan and lowering risk Industrial & Infras
Slide 13: Sale of Discontinued Operations
Sale of Discontinued Operations • Transaction closed on Nov 30, 2023 Timeline of Transaction • Subject to working capital adjustment 2023 2024 Currently expected total related net cash secured Q3 Q4 Q1 Q2 Q3 = Cash generated between transaction Approximate announcement and transaction close Transact
Slide 14: Proceeds from Strategic Actions to be Deployed for Growth
Proceeds from Strategic Actions to Maintaining disciplined be Deployed for Growth capital allocation approach with “all of the above” strategy Net-debt-to adjusted EBITDA <2x Organic Investment $442M Total gross proceeds from sales Given reduced operational volatility, expecting to generally Substan
Slide 15: Multi-Year, High-Return, Low-Risk Capital Growth Plans
Multi-Year, High-Return, Low-Risk Supporting high return organic growth opportunities with appropriate Capital Growth Plans CAPEX and working capital 120 o Annual maintenance CAPEX need is $10-15M $90-100 100 $90 o Remaining spend is growth CAPEX o Hurdle Rate IRR > 20% after tax 80 o Investments in
Slide 16: Investing Organically in Capacity and Efficiency While Optimizing Footprint
Investing Organically in Capacity and Efficiency While Optimizing Footprint $83M of capex committed in 2023 with $80-90M Anaheim, CA, USA additional spend anticipated in 2024 Fuel Tanks Manufacturing Vaughan, ON, Canada Production stopped, full exit by Anaheim exit will lower fixed-cost base by end
Slide 17: Debt Journey
Debt Journey 1 Net Debt/Adj. EBITDA $500 Net Debt Debt $400 Leases 2019 3.2x -0.3x $300 $348 $331 $327 2023 $200 $239 $219 $219 $207 $168 $193 $163 $100 $105 $76 $24 $57 $0 $89 $90 $83 $72 $68 $62 $59 $54 $53 $44 $58 $59 -$51 $62 $62 $76 $88 Mattr targets Net-debt-to- -$100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 18: Returning Capital to Shareholders
Returning Capital to Shareholders Normal Course Issuer Bid (NCIB) Date Purchase Shares o On June 26, 2023, the Company announced the Purchased Shares Avg Price Net Amount Cancelled termination of the existing Normal Course Issuer Bid (NCIB) and the approval by the Toronto Stock Exchange of the Compa
Slide 19: Contemplating Strategic M&A
Contemplating Strategic M&A Water Technologies US Wire and Cable Footprint Enhance stormwater Expand reach into US management offering market, particularly where by in-housing additional “Buy America” precludes technologies participation today Likely tuck-in in size Potential for tuck-in or
Slide 20: Levering Materials Technology to Grow Profit Faster than Revenue
Mattr – Levering Materials Technology to Grow Profit Faster than Revenue Adjusted EBITDA REVENUE Adjusted EBITDA Margin $536 $113 21.1% 660 COMPOSITE $375 43% 107% 14.5% bps $54 TECHNOLOGIES 2021 2023 2021 2023 2021 2023 $345 $263 $70 20.1% 290 31% $45 54% CONNECTION bps 17.2% TECHNOLOGIES 2021 2023
Slide 21: Strong Growth Momentum & Powerful Balance Sheet, Trading Below Peer Group Average
Strong Growth Momentum & Powerful Balance Sheet, Trading Significantly Below Peer Group Average Our Peers are Premium Industrial Net Debt/Adj. EBITDA Product Manufacturers 2021-23 Adj EBITDA CAGR 45% 2019 3.2x Ticker Company EV/EBITDA Multiple* 2023 -0.3x TTM AIN-USQ Albany International 12.2 2023-3
Slide 22: Organically Doubling Revenue by 2030
Organically Doubling Revenue by 2030… >10% growth Revenue 2030 Organic Ambitions 20%+ Adjusted EBITDA Margin 70%+ Free Cash Flow Conversion 2023 $925M 17.8 % 2019 … with clear opportunity to $626M 15.8 % accelerate ambition achievement through targeted M&A March 2024 Investor Presentation 22
Slide 23: Thank you.
O Thank you. Infrastructure Technologies