20 slides from Matrix Composites & Engineering's earnings presentation, Sep 1, 2021
Slide 1: 2021 Full Year Results Presentation
Image courtesy of Naval Group 2021 FULL YEAR RESULTS PRESENTATION AARON BEGLEY – CEO BRENDAN COCKS – CFO 1 September 2021 MATRIXENGINEERED.COM
Slide 2: Disclaimer
DISCLAIMER Reliance on third party information The information and views expressed in this presentation were prepared by Matrix Composites & Engineering Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified. No r
Slide 3: Overview
OVERVIEW FINANCIAL OPERATING OUTLOOK • Revenue $17.6m (FY20: 27.4m). • Increased traction in strategic pivot to • Continue pivot to more stable and brownfields opex work and expansion assured revenue streams outside cyclical • Continued global impacts of weak oil into local resources sector. oil & g
Slide 4: FY21 Financial Results
FY21 FINANCIAL RESULTS CFO – Brendan Cocks
Slide 5: Key Financial Metrics
KEY FINANCIAL METRICS FY21 FY203 • Revenue reflects lingering impact of weak oil price Revenue $m 17.6 27.4 and COVID-19 that commenced Q3 FY20. Underlying EBITDA1 $m (4.4) (3.7) • Revenue recovering with 2H FY21 up 17% on 1H FY21 and momentum securing brownfields opex work. EBITDA $m (21.2) (47.2)
Slide 6: Balance Sheet
BALANCE SHEET $m 30 Jun 21 30 Jun 20 Cash 7.2 14.7 • Positive net cash position. Cash movement includes Trade and other receivables 5.3 5.4 investment in strategic repositioning of business and Inventory 6.6 7.6 Coatings Technologies business acquisition. Other assets 0.3 0.5 • Continue to hold no t
Slide 7: Cash Flow from Operations
CASH FLOW FROM OPERATIONS $m FY21 FY20 Underlying EBITDA /(Loss) (4.4) (3.7) • Operating cash outflow lower than EBITDA Receivables 0.1 2.9 loss with positive working capital Trade Payables 0.7 (4.2) movement. Inventory 1.0 2.2 • Other outflows largely reflect payments Deposits / Progress Billing 1.
Slide 8: Strategy and Outlook
STRATEGY AND OUTLOOK CEO – Aaron Begley
Slide 9: Delivering Key Technologies
DELIVERING KEY TECHNOLOGIES LIGHTER ● STRONGER ● SMARTER • THERMOPLASTIC COMPOSITES • CARBON FIBRE • SYNTACTIC FOAM • COATINGS TECHNOLOGY 9
Slide 10: Technology Development as a Service
TECHNOLOGY DEVELOPMENT AS A SERVICE DELIVERING SOLUTIONS WHERE TRADITIONAL MATERIALS CAN’T REDUCING OPEX | MINIMISING DOWNTIME | CONTROLLING CORROSION 10
Slide 11: Advanced Manufacturing and Capacity
ADVANCED MANUFACTURING AND CAPACITY LARGEST DEDICATED SYNTACTIC FOAM PRODUCTION FACILITY IN THE WORLD • Highly Automated Advanced manufacturing plant to deliver materials solutions. • Produces superior qualify composite products at scale within shorter time frames than traditionally possible. • $130
Slide 12: Continuing to Deliver in Traditional Markets
CONTINUING TO DELIVER IN TRADITIONAL MARKETS Deepwater drilling Subsea & SURF Well Construction 12
Slide 13: Oil & Gas Market Recovery
OIL & GAS MARKET RECOVERY POSITIVE INDICATORS • Forecast activity in the subsea and SURF markets is trending upwards in certain geographies, emanating from the oil price rebound during 2H FY20. • Significant improvement in medium term Subsea forecast contract awards following historical lows. • Visi
Slide 14: Oil & Gas Market Recovery
OIL & GAS MARKET RECOVERY POSITIVE INDICATORS • Offshore oil and gas Engineering, Procurement, Construction and Installation (EPCI) investment gaining momentum. • Global offshore spend expected to reach US$63.1bn in 2021, on the back of stronger second half project awards (assuming average Brent pri
Slide 15: Set to Capitalise on Oil & Gas Recovery
SET TO CAPITALISE ON OIL & GAS RECOVERY • Increased capability in the SURF and subsea market has expanded the company’s accessible global market in the Subsea sector and maintained the businesses leading position in the recovering deepwater drilling sector. • Recently secured two new drilling riser
Slide 16: Long Track Record of Product Development
LONG TRACK RECORD OF PRODUCT DEVELOPMENT PROBLEM SOLUTION MATRIX SALES: A$1bn 1999 2005 2008 2011 Inconsistency Matrix Drilling Riser Development API 16F Expansion of Henderson • World’s largest syntactic foam and durability Buoyancy Modules plant pathway Malaga facility facility opened established
Slide 17: Building Sustainable Revenue
BUILDING SUSTAINABLE REVENUE Composite technologies to reduce plant Corrosion control technologies Through life asset support operating expenditure Engineered solutions of products to Light weighting of structures and steel Specialised testing services reduce operational downtime replacement 17
Slide 18: Executing Strategic Pivot
EXECUTING STRATEGIC PIVOT • Continuing to execute shift of revenue stream from Greenfields CAPEX to Brownfields OPEX with Australian focus. • Established foothold in target sectors: LNG, iron ore, battery minerals, gold, other resources. ✓ Anti-corrosion coatings, application equipment and technical
Slide 19: Summary
SUMMARY • Executing to strategy, building a sustainable revenue base from local LNG & Resources brownfields market. • Key agreements in energy and resources sectors building momentum in diversification strategy. • Offshore Oil & Gas Capex is rebounding strongly, expected to reach $US61bn in 2021, fo
Slide 20: Contact
CONTACT Aaron Begley Chief Executive Officer T +61 8 9412 1200 E: aaron.begley@matrixengineered.com Brendan Cocks Chief Financial Officer T +61 8 9412 1200 E: brendan.cocks@matrixengineered.com MATRIXENGINEERED.COM