Magellan Aerospace Corporation · TSX:MAL
Magellan Aerospace — Shareholder Meeting (2023)
28 slides from Magellan Aerospace's shareholder meeting presentation, May 14, 2023
Slide 1: Magellan 2023 AGM
MAGELLAN 2023 AGM =, MAGELLAN"
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain information and statements contained in this presentation contain forward‐looking information or statements (“forward–looking statements”) within the meaning of applicable securities laws. All forward looking statements such as efficiencies, rationalizations and in
Slide 3: Chairman's Welcome and Meeting Agenda
N. MURRAY EDWARDS CHAIRMAN OF THE BOARD OF DIRECTORS » Welcome and Remarks » Receipt of Financial Statements for 2022 » Election of Directors » Appointment of Auditors » Other Business Annual General Meeting 2023 3
Slide 4: Highlights for 2022
PHILLIP C. UNDERWOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER HIGHLIGHTS FOR 2022 » Financial Summary » Business Highlights » Strategic Summary Annual General Meeting 2023 4
Slide 5: Financial Summary
FINANCIAL SUMMARY » Revenue » Gross Profit » EBITDA » Debt and Interest Expense » Capital Expenditure » Shareholder Return Annual General Meeting 2023 5
Slide 6: Financial Summary: Revenue
FINANCIAL SUMMARY REVENUE $1,200 Millions $1,000 $800 $600 $400 $200 $- 2018 2019 2020 2021 2022 Annual General Meeting 2023 6
Slide 7: Financial Summary: Gross Profit
FINANCIAL SUMMARY GROSS PROFIT $180 18.0% Gross Profit as a % of Sales Millions 16.0% $150 14.0% $120 12.0% 10.0% $90 8.0% $60 6.0% 4.0% $30 2.0% $- 0.0% 2018 2019 2020 2021 2022 Annual General Meeting 2023 7
Slide 8: Financial Summary: EBITDA
FINANCIAL SUMMARY EBITDA $180 20.00% EBITDA as a % of Sales Millions 18.00% $150 16.00% 14.00% $120 12.00% $90 10.00% 8.00% $60 6.00% 4.00% $30 2.00% $- 0.00% 2018 2019 2020 2021 2022 Annual General Meeting 2023 8
Slide 9: Financial Summary: Debt
FINANCIAL SUMMARY DEBT Debt Millions $60 $45 $30 $15 $- 2018 2019 2020 2021 2022 Debt includes AR securitization, property mortgage and other loans Annual General Meeting 2023 9
Slide 10: Financial Summary: Capital Expenditures
FINANCIAL SUMMARY CAPITAL EXPENDITURES Millions $70 $60 $50 $40 $30 $20 $10 $- 2018 2019 2020 2021 2022 Annual General Meeting 2023 10
Slide 11: Business Overview
BUSINESS OVERVIEW » Global Presence » Industry Update » Key Contract Announcements » 2022 Revenues by Customer and Segment Annual General Meeting 2023 11
Slide 12: Business Overview: Global Presence
BUSINESS OVERVIEW GLOBAL PRESENCE Canada U.S. Europe India Headquarters: Number of Operating Magellan Mississauga, Canada Divisions: Employees: TSX: MAL 19 3,500 Annual General Meeting 2023 12
Slide 13: Industry Update
2023 Industry Update Annual General Meeting 2023 13
Slide 14: Industry Update: Market Overview - Commercial
INDUSTRY UPDATE MARKET OVERVIEW - COMMERCIAL Commercial air travel Domestic air travel Single aisle market recovery continued in reached 79.6% of pre- remains the primary 2022. pandemic levels. driver of commercial aircraft market growth. IATA reported that International air travel global travel rea
Slide 15: Industry Update: Market Overview - Defence
INDUSTRY UPDATE MARKET OVERVIEW - DEFENCE Global defence spending is Lockheed delivered 141 F-35 expected to increase from 3% to 5% fighters in 2022 with 153 planned for annually over the next 5 years. 2023. Experts consider Russia an acute Canada officially announced it would threat, and China a pa
Slide 16: Key Contracts Announcements
2022 Key Contracts Announcements 16
Slide 17: Key Contracts Announcements 2022
KEY CONTRACTS ANNOUNCEMENTS 2022 Magellan announced strategic contracts/MOUs in key sectors including: Lockheed Martin 17
Slide 18: 2022 Revenues by Customer and Segment
BUSINESS OVERVIEW 2022 REVENUES BY CUSTOMER AND SEGMENT Aerostructures Aeroengines and Repair and Overhaul Casting Specialty Products and Other Commercial Defense Annual General Meeting 2023 18
Slide 19: Strategic Summary
STRATEGIC SUMMARY » Challenges & Opportunities » Strategic Goals Annual General Meeting 2023 19
Slide 20: Strategy: Challenges and Opportunities
MAGELLAN AEROSPACE STRATEGY CHALLENGES AND OPPORTUNITIES CHALLENGES IMPACT RESULTS & OPPORTUNITIES Unacceptable level of arrears to Recovered majority of customer RECRUITMENT & customers programs - Recruited 1000 in 2022 RETENTION Stabilized Workforce - Attrition - 20% Majority of positions no
Slide 21: Strategy 2022-2025: Challenges and Opportunities
MAGELLAN AEROSPACE STRATEGY 2022 -2025 CHALLENGES AND OPPORTUNITIES CHALLENGES IMPACT RESULTS & OPPORTUNITIES - Higher Single Aisle deliveries with lower Long Range aircraft reflected L/R programs now picking up PRODUCT MIX in lower margins (787 / 777X / 787 back in production A350) Address le
Slide 22: 2021-2025 Strategic Goals
MAGELLAN AEROSPACE 2020 2021 – 2025 STRATEGIC GOALS STRATEGY Grow Magellan as the supplier of choice to the global Vision METHODOLOGY aerospace industry & Mission Enhance overall financial performance Strategic Goals Solid Balance Sheet o2 Functional Enablers Zero Defects & 100% On Time Division Act
Slide 23: ESG Framework
ENVIRONMENTAL SOCIAL GOVERNANCE ESG FRAMEWORK Magellan has adopted an ESG framework in line with global disclosure standards. Our focus is on: Annual General Meeting 2023 23
Slide 24: ESG Framework
ENVIRONMENTAL SOCIAL GOVERNANCE ESG FRAMEWORK • Code of Ethics & Business Conduct embedded in Magellan culture • Corporate ESG Task Force to lead sustainability efforts • ESG oversight by Board of Directors and Committees of the Board Annual General Meeting 2023 24
Slide 25: ESG Framework Commitments
ENVIRONMENTAL SOCIAL GOVERNANCE ESG FRAMEWORK • Code of Ethics & Our Commitments include: Business Conduct • 25% reduction in accident embedded in Magellan rate across all sites culture • Compliance to ISO 45001 • Corporate ESG Task by year end Force to lead • Promotion of diversity & sustainability
Slide 26: ESG Framework: ISO Certification and Targets
ENVIRONMENTAL SOCIAL GOVERNANCE ESG FRAMEWORK • ISO 14001 certification in place, remaining sites will be registered in 2023 • Monitoring recognized ESG disclosure standards and global reporting frameworks • Corporate targets for GHG reduction, water conservation and waste reduction Annual General M
Slide 27: Summary: 2022 Achievements and Key Priorities
MAGELLAN AEROSPACE 2022 SUMMARY 2022 ACHIEVEMENTS and KEY PRIORITIES Balance Sheet remains strong Progressed our zero defects programs. Secured significant contract renewals. Met targets for improved environmental performance and will foster our ESG commitment Focus on earnings and working
Slide 28: Thank-you
MAGELLAN Thank-you Annual General Meeting 2023