Mattr Corp · TSX:MATR
Mattr — Investor Day (December 2023)
74 slides from Mattr's investor day presentation, Dec 11, 2023
Slide 1: Investor Day
December 2023 Investor Day December 11, 2023
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: Agenda
Agenda Topic Speaker Mattr Vision Mike Reeves, Mattr, President & CEO Connection Technologies Frank Cistrone, Mattr, Group President, Connection Technologies Bruce Power Mike Rencheck, Bruce Power, President & CEO Composite Technologies Martin Perez, Mattr, Group President, Composite Technologies Qu
Slide 4: Vision
Vision Mike Reeves PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 5: Mattr Vision
Mattr Vision Investing to create a technology driven, high-growth, high-margin infrastructure products business that consistently returns capital to shareholders. Engineering a better future. INVESTOR DAY PRESENTATION 5
Slide 6: Engineering a Better Future
Engineering a Better Future To enable a world where: o Critical infrastructure is reliable and carbon efficient We Engage o Electrification is everywhere We Innovate o Nuclear is a significant energy source We Create o Liquid fuel storage is safe and long-lasting o Water quality and availability is
Slide 7: Fundamentally Transformed
Fundamentally Transformed Revenue and Adj. EBITDA $1,000 $941 30% $900 $862 25% $800 $700 $626 $644 $611 20% $600 18.5% 15.8% 16.5% $500 12.9% 15% $400 11.1% 10% $300 $174 $200 $142 $99 5% $100 $68 $83 $0 0% 2019 2020 2021 2022 Q3-2023 TTM Revenue Adj. EBITDA Adj. EBITDA Margin 2021-23 Revenue CAGR
Slide 8: A Materials Technology Company Enabling Renewal & Expansion of Critical Infrastructure
A Materials Technology Company Enabling Renewal & Expansion of Critical Infrastructure Composite Technologies Connection Technologies Manufacturer of flexible and environmentally-friendly Supporting global electrification by providing composite solutions for severe environments and specialty wire, c
Slide 9: 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 10: An Opportunity Rich Landscape
An Opportunity Rich Landscape At ~$200 billion, construction spending in the US has THE WATER CHALLENGE IN Biden administration committed NUMBERS: increased 2.5x since early 2020 US $2 trillion as near-shoring continues Total Construction Spending: 2 billion people lack access to safely managed drin
Slide 11: Why Our Solutions Matter
Why Our Solutions Matter Extreme capability & reliability in harsh environments Continuous Technology Expanding & Protecting Evolution Proprietary Knowledge Confidence where the cost of failure is highest A small fraction of total project costs Delivering a low-friction customer experience Designing
Slide 12: Moving Beyond Transformation
Moving Beyond Transformation >10% Annual Revenue Growth Organic Performance Ambitions: >20% EBITDA Margins Further Enhanced by M&A >70% FCF Conversion 2021 TRANSFORMATION 2023 EXPANSION 2025 ELEVATION 2030 Generated Deploying 2023-2030 Revenue >$400M >$150M Doubling in proceeds through of Growth Cap
Slide 13: Catalysts to Achieve Organic Performance Ambitions
Catalysts to Achieve Organic Performance Ambitions Flexpipe large-diameter & DSG-Canusa industrial international market market penetration penetration Organic Performance Ambitions Adding Capacity >10% Annual Revenue Growth Adding Capacity in both in both businesses >20% EBITDA Margins businesses >7
Slide 14: Strong Growth Momentum & Powerful Balance Sheet
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% 20193.2x Ticker Company EV/EBITDA Multiple* Q3-23 TTM 0.5x TTM NTM AIN-USQ Albany International 13.1
Slide 15: 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 Q3 2023 TTM $941M 18.5 % 2019 … with clear opportunity to $626M 15.8 % accelerate ambition achievement through targeted M&A INVESTOR DAY PRESENTATION 15
Slide 16: Connection Technologies
Connection Technologies Frank Cistrone GROUP PRESIDENT, CONNECTION TECHNOLOGIES
Slide 17: Connection Technologies
Connection Technologies Revenue and Adj. EBITDA $400 40% $342 $350 35% $315 $300 30% $263 $250 25% $211 $198 $200 20.0% 20.2% 20% 17.9% 17.5% 17.3% $150 15% $100 10% $63 $69 Engineered Wire, Premium Heat Shrink, $50 $38 $35 $45 5% Cable and Cable Cold Applied and Assemblies Application Equipment $-
Slide 18: What We Do
What We Do Extreme Capability & Confidence Where Reliability in Harsh the Cost of Failure Environments is Highest INVESTOR DAY PRESENTATION 18
Slide 19: Shawflex Differentiators
Shawflex Differentiators Shawflex Applications 60 YEARS 167 BILLION Industry leader of high Cable design and quality and customer manufacturing service possibilities Power Technology capabilities Flexible generating Manufacturing Control ADD Shawflex optimizes product >10% new design configurations
Slide 20: DSG-Canusa Differentiators
DSG-Canusa Differentiators DSG-Canusa Applications 50 YEARS 3 Continents Seal Proven application A global R&D, Protect and product manufacturing and engineering capability distribution expertise Technology capabilities Fully generating Integrated 20+ new design and build of ADD Shawflex customer app
Slide 21: Differentiated Products Levering Our Core Competence in Materials Technology
Differentiated Products Levering Our Core Competence in Materials Technology & Complex Manufacturing 170% Increase in R&D spending expected from 2021 to 2025 Investments in material, process and equipment development 125% Proprietary knowledge serves as our cornerstone, Increase in New Product allow
Slide 22: Market Outlook and Drivers
Market Outlook and Drivers Infrastructure Industrial Transportation Changing climate patterns, aging Geopolitics, near shoring and climate Electrification and population growth & Outlook infrastructure, electrical transition, change driving demand for more and movement driving demand for connected c
Slide 23: Serving Diverse Critical Markets that Connect Our World
Serving Diverse Critical Markets that Connect Our World & Civil Hydro Aerospace Communication EV Charging Automotive Mining Natural Gas Nuclear Marine Outer Space Solar >$10 Billion Connection Technologies SAM* Space Wastewater Transit Utility Wind *SAM = Serviceable Available Market INVESTOR DAY PR
Slide 24: Built to Operate in Extreme Environments with Uncompromising Reliability
Built to Operate in Extreme Environments with Uncompromising Reliability Excellent Low High Temperature Flexibility Characteristics COMMUNICATION AEROSPACE ELECTRIC VEHICLES . High Flame Temperature Retardant Tolerance SPACE NUCLEAR Low Smoke, Zero High Radiation TRANSIT Tolerance Halogen Options .
Slide 25: Diverse Global End Users and Customer Base
Diverse Global End Users and Customer Base Infrastructure Industrial Transportation INVESTOR DAY PRESENTATION 25
Slide 26: The Road to 2030: Growth Drivers
The Road to 2030: Growth Drivers Shawflex US Geographic Expansion Global Nuclear Power Electrification Mega Renaissance Trend Acquisitions Organic Investment Focused on Global Automotive to Elevate Capacity Enhancing Existing Scale, Mix and Material and Enhance Capabilities Technology Efficiency INV
Slide 27: Electrification Mega Trend, A Strong and Overarching Tailwind
Electrification Mega Trend, A Strong and Overarching Tailwind Projected Electricity Capacity Requirements in Canada, Globally, electrical 2019 - 2050 capacity must Installed capacity multiple relative to 2020 4 In Canada alone, DOUBLE 3.4x by 2050 to 3 Highest >$400 Billion Projection of investment
Slide 28: A Global Nuclear Power Renaissance is Underway
A Global Nuclear Power Renaissance is Underway 1 Canada 3 2 1 3 EU 15 11 4 United States 4 2 1 3 43 Africa COP28: 22 nations 1 35 pledge to triple 3 nuclear power by APAC Latin America 2050 Number of Reactors by status: 2 412 Global Refurbishment (scheduled to start by 2030) New Under Construction N
Slide 29: Investing to Become the World Leader in Nuclear Interconnect Technologies
Investing to Become the World Leader in Nuclear Interconnect Technologies Today’s Position Opportunities for Technology and Geographic Expansion Large-Scale Heavy Water Reactor Large-Scale Light Water Reactor Small Modular Reactor Micro Reactor 300 - 1000+ MW 300 - 1000+ MW 20 - 300 MW 1 – 20 MW >40
Slide 30: Global Automotive Production – Leveraging Opportunities for Scale, Mix & Material Technology
Global Automotive Production – Leveraging Opportunities for Scale, Mix & Material Technology DSG-Canusa Products Global Automotive Production Units Per Vehicle EV requires Average of LMC and IHS Forecast – Oct 2023 60-100 pcs ~40% less 95 40-70 pcs DSG-Canusa product vs ICE, 80 however more M Units
Slide 31: Substantial Organic Investment to Elevate Capacity and Enhance Efficiency
Substantial Organic Investment to Elevate Capacity and Enhance Efficiency >25% Incremental capacity by 2026* Germany With opportunity to reach >100% incremental capacity by 2030* China 10%+ Margin improvement* From modernization, optimization, and efficiency Relocation to Vaughan, ON, Canada Wire &
Slide 32: Shawflex US Geographic Expansion Opportunity
Shawflex US Geographic Expansion Opportunity US addressable >70% market is of US Electrical Utility Canada Grid is >25 years old SAM approximately North American Wire Canada and Cable Market 9 times the Canada size of the Canadian >25% TAM addressable market increase in US electrical consumption pro
Slide 33: Acquisitions Focused on Enhancing Existing Capabilities
Acquisitions Focused on Enhancing Existing Capabilities Acquisition o Purchased at <4x forward 12-month Adjusted EBITDA Success Story o Leveraged cross-selling and international opportunities o Integration & synergies executed as planned Focused on attractive end markets, strategic value, and strong
Slide 34: Connection Technologies Key Takeaways
Connection Technologies Key Takeaways The Road to 2030 Electrification mega Proven Track Record trend, large addressable 24% EBITDA CAGR since markets and defined 2020, on-budget & on-time growth drivers to double execution of organic plans revenue and enhance and successful acquisition EBITDA margi
Slide 35: Bruce Power
Bruce Power Mike Rencheck PRESIDENT & CHIEF EXECUTIVE OFFICER, BRUCE POWER
Slide 36: Composite Technologies
Composite Technologies Martin Perez GROUP PRESIDENT, COMPOSITE TECHNOLOGIES
Slide 37: Composite Technologies
Composite Technologies Revenue and Adj. EBITDA (C$ mm) $600 $563 30.0% $529 $500 25.0% $417 Flexpipe 21.5% 21.2% Xerxes image $400 $375 20.0% image $321 17.4% 18.5% $300 14.5% 15.0% $200 10.0% $121 $90 $93 Market Leading Composite Premium Spoolable $100 5.0% $56 $54 Underground Storage Tanks Composi
Slide 38: Composite Technologies' Verticals
Composite Technologies’ Verticals >$4 Billion* We excel in the design and delivery of composite Composite Technologies SAM based products which replace higher cost, higher risk, higher-carbon concrete and steel solutions in SAM = Serviceable Available Market – the segment of the TAM targeted by the
Slide 39: Composite Technologies Outlook and Market Drivers
Composite Technologies Outlook and Market Drivers Energy Liquid Fuels Water Demand from aggressive Strong outlook for our business Tightening regulations, changing Outlook convenience store expansion and driven by new technology climate patterns, aging tank replacement requirements introductions and
Slide 40: Flexpipe Product Applications
Flexpipe Product Applications Energy New Fuels Water Decarbonization o Diesel & Refined Chemicals o High-Pressure Gas Injection o Produced Water Disposal o Steel Pipeline Remediation o Natural Gas Distribution o Helium Gathering o Frac Water Management o 100% CO2 Transportation o Enhanced Oil Recove
Slide 41: Line Pipe has Evolved
Line Pipe has Evolved 35% INSTALLATION cost reduction 20% QUICKER TIME to first oil “The efficiency we gained by using Flexpipe was immense, and we were able to bring on production earlier than expected. The product and service that I received from the Flexpipe team is Significantly second to none i
Slide 42: Benefits of Flexpipe
Benefits of Flexpipe Estimated annual cost of corrosion in Oil and Gas production and transportation: US$13 Billion* Lower Corrosion Quick and Lifecycle and Abrasion in the US Alone! Easy Costs Resistance Installation Reliability and Engineering Lower Traceability Field Support Environment al Impact
Slide 43: Flexpipe Primary Market Volatility Has Reduced
Flexpipe Primary Market Volatility Has Reduced…. Investment decisions leading to increased $USD Drilling Activity (US) Against WTI Price oil and natural gas production activity & $100 Forecast 5500 driving demand for Flexpipe are governed $95 4,852 Values 4,569 4,499 5000 $90 4,419 4,362 by several
Slide 44: Flexpipe Technology Advancement Dramatically Expands Addressable Market
…But Flexpipe Technology Advancement Dramatically Expands Addressable Market EMEA Canada United States APAC o Larger diameter (up to 6”) products released since 2021 have DOUBLED LAM 2-4” TAM Flexpipe addressable market* and have 6” TAM demonstrated excellent market adoption 8” TAM o New products to
Slide 45: International Adoption of Non-Metallics Presents Incremental Flexpipe Growth Opportunity
International Adoption of Non-Metallics Presents Incremental Flexpipe Growth Opportunity Non-metallics are quickly being adopted over legacy materials, particularly in the Middle East. For example, TWI, Saudi Aramco, and ADNOC have partnered to create the Non-Metallic Innovation Center (NIC) with th
Slide 46: With over 50,000 KM of Flexpipe installed in over 20 Countries
With over 50,000 KM of Flexpipe installed in over 20 Countries Flexpipe has more installed product than any other provider 20+ Years of Experience 15+ Patents INVESTOR DAY PRESENTATION 46
Slide 47: Xerxes
Xerxes The North American leader in premium fiberglass underground liquid storage tanks Specialize in systems for: o Fuel storage o Water, wastewater and stormwater storage Systems offer many key benefits: o Corrosion-resistance o Lower carbon footprint than steel o Longer warranty period o Lightwei
Slide 48: North American Fuel Tank Market
North American Fuel Tank Market Xerxes fuel tanks are backed by: Retail Sites: USA 91% / CAN 9% Fiberglass 60% / Steel 40% o History of 40+ years of fiberglass tank manufacturing Male Subscribers o Industry-leading innovations ~50% Estimated to be 20+ years old Today: 589,000 tanks (all brands) in o
Slide 49: Fuel Tank Demand Drivers
Fuel Tank Demand Drivers o Long-cycle C-store network expansion/renewal under-way o Quantity, size and complexity of tanks continues to rise for new sites o Existing tank population rapidly aging – many will require replacement o EV adoption will take many years to impact fueling network Xerxes lead
Slide 50: Fuel Tank Customers
Fuel Tank Customers MAJOR CUSTOMERS Large and small Grocery and Commercial and hypermarkets convenience-store government chains applications Distributors and Truck stop chains’ contractors INVESTOR DAY PRESENTATION 50
Slide 51: Fuel Tank Demand is Nationwide
Fuel Tank Demand is Nationwide….. Eastern Seaboard is largest single liquid fuel tank demand region Source: Company Estimates …as are other markets for premium tanks & related products INVESTOR DAY PRESENTATION 51
Slide 52: Stormwater Management
Stormwater Management Increased regulations are driving demand in the North American stormwater sector. Several factors contributed to the mandated regulations: 10 trillion 55% of gallons of untreated precipitation stormwater enter U.S. waterways each year becomes runoff in urban areas 750+ U.S. 30%
Slide 53: Xerxes Stormwater Management Systems
Xerxes Stormwater Management Systems Capture and Conveyance In 2021, Xerxes expanded from discrete tank offering to complete storm water management solution o Site-specific designs with highly engineered products that provide end-to-end stormwater Pre-Treatment management o Lower life-cycle costs wi
Slide 54: Also Accelerating Expansion into Other Water Applications
Also Accelerating Expansion into Other Water Applications WASTEWATER STORAGE o Onsite septic o Industrial and municipal wastewater o Wastewater reuse WATER STORAGE o Fire protection water o Potable water o Rainwater harvesting o Stormwater collection PLUMBING ENGINEER SOLUTIONS o Grease interceptors
Slide 55: Water Product End Users
Water Product End Users Convenience stores, Food processing grocery stores, retail facilities, vineyards, Hospital, clinics malls and restaurants agricultural sites, and medical greenhouses centers Moving from a discrete product Airports, transportation Sports stadiums, supplier to being a leader in
Slide 56: Why We Win
Why We Win 1 First Class Front-End Engineering 2 Nimble and Responsive Customer Service 3 Superior Water Quality Products INVESTOR DAY PRESENTATION 56
Slide 57: Substantial Organic Investment to Elevate Capacity and Enhance Efficiency
Substantial Organic Investment to Elevate Capacity and Enhance Efficiency Blythewood, SC, USA Fuel & Water Tanks Manufacturing >10%+ Expected Start-up: Mid ’24 Margin improvement At 156,000 sq. ft., will be the largest site in From modernization and Xerxes manufacturing network efficiency 20%+ After
Slide 58: Composite Technologies Key Takeaways
Composite Technologies Key Takeaways Road to 2030 Proven Track Record Continued growth of the water business to rival 50% EBITDA CAGR since fuel and triple new 2021, maintained market revenue with even leading positions in fuel larger diameters of pipe tanks and successfully introduced larger diamet
Slide 59: QuikTrip
QuikTrip Keith Spiker HEAD OF FUELS SYSTEMS
Slide 60: ESG & Investor Landscape
ESG & Investor Landscape Meghan MacEachern DIRECTOR, EXTERNAL COMMUNICATIONS & ENVIRONMENTAL, SOCIAL, GOVERNANCE
Slide 61: ESG
ESG ESG Performance to Date Scope 1&2 GHG Emissions Governance 39% 100,000 o Strategic business planning 80,000 2030 reduction 50% tonnes CO2e o Stakeholder engagement 60,000 in 2022 vs. o Business ethics and 40,000 2019 Scope 1 & 2 baseline GHG emissions compliance 20,000 reduction o Data protectio
Slide 62: Enabling Efficiencies For Our Customers
Enabling Efficiencies For Our Customers SUSTAINABLE LINE PIPE STORMWATER MANAGEMENT HEAT-SHRINK PRODUCTS IN ACTION Spooled composite line pipe requires smaller Xerxes' HydroChain™ composite stormwater Our Shuttle 2.0, a highly efficient shrink-fit machine for crews and less equipment, and the instal
Slide 63: Optimizing our Footprint
Optimizing our Footprint Solar Array Installation and LED Retrofit at Calgary Flexpipe Facility ~$290k ~5% Annual savings Reduction in Mattr’s on electricity Scope 1&2 GHG costs Emissions* >90% Project costs covered by grants and landlord funding *based on reported emissions in 2022 INVESTOR DAY PRE
Slide 64: Investor Landscape
Investor Landscape Portfolio Shift 2020: 11 businesses, largely related to oilfield services 2023: 4 core businesses, broadly serving critical infrastructure markets Shift in Analyst Coverage from Energy to Industrials Shift in Firm Investor Style from Value to Growth Covering Analyst Focus Value (2
Slide 65: Financial Vision
Financial Vision Tom Holloway SENIOR VICE PRESIDENT, FINANCE AND CHIEF FINANCIAL OFFICER
Slide 66: Moving Beyond Transformation
Moving Beyond Transformation >10% Annual Revenue Growth Organic Performance Ambitions: >20% EBITDA Margins Further Enhanced by M&A >70% FCF Conversion 2021 TRANSFORMATION 2023 EXPANSION 2025 ELEVATION 2030 Generated Deploying 2023-2030 >$400M >$150M Revenue in proceeds through of Growth Capital to D
Slide 67: Value Created from Transformation
Value Created from Transformation Maintaining disciplined capital allocation approach with “all of the above” strategy $225M Gross Proceeds from Pipe Coating Business Sale Net-debt-to Organic adjusted Investment - EBITDA <1.5x ALL OF Neutral Net Working Capital Estimate THE ABOVE Inorganic Returning
Slide 68: Debt Journey
Debt Journey Net Debt $500 $421 $410 $400 $291 $307 $300 $281 $266 $246 $222 $207 $200 $163 $152 $119 $87 $100 $8 $0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 Includes leases of $76 million as of Q3 2023 Achieved goal of net debt below 1.5x and now view that as ceiling Debt redu
Slide 69: Multi-Year, High-Return, Low-Risk Capital Growth Plan
Multi-Year, High-Return, Low-Risk Capital Supporting high return organic growth Growth Plan opportunities with appropriate CAPEX and working capital $100 Composite and Connection Technologies’ Segments o Annual maintenance CAPEX need is $10-15M o Remaining spend is growth CAPEX o Hurdle Rate IRR > 2
Slide 70: Returning Capital to Shareholders
Returning Capital to Shareholders Normal Course Issuer Bid (NCIB) Date Purchase Shares Purchased Shares Avg Price Net Amount Cancelled Q3 2022 246,100 8.0781 1,990,482 - Q4 2022 268,200 11.8333 3,176,372 514,300 FYR 2022 514,300 10.0364 5,166,855 514,300 Q1 2023 626,000 12.3117 7,713,407 571,600 Q2
Slide 71: Expected EBITDA Growth Plus Potential Multiple Expansion Provides Opportunity
Expected EBITDA Growth Plus Potential Multiple Expansion Provides Opportunity Our Peers are Premium Industrial Net Debt/Adj. EBITDA Product Manufacturers 2021-23 Adj EBITDA CAGR 45% 20193.2x Ticker Company EV/EBITDA Multiple* Q3-23 TTM 0.5x TTM NTM AIN-USQ Albany International 13.1 11.1 2023-30 Aspi
Slide 72: Philosophy around M&A
Philosophy around M&A Appetite for Scale Expanded with Narrowly Focused Targets Enhanced Balance Sheet Capacity • Most current targets ‘bolt-on’ in nature • ~$10-$15 million FY Adjusted EBITDA Ready to act on more substantial opportunities which accelerate high-return growth in target domains M&A pr
Slide 73: 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 Q3 2023 TTM $941M 18.5 % 2019 … with clear opportunity to $626M 15.8 % accelerate ambition achievement through targeted M&A INVESTOR DAY PRESENTATION 73
Slide 74: Q&A
Q&A Mike Reeves Frank Cistrone Martin Perez President & CEO Group President, Group President, Connection Technologies Composite Technologies Tom Holloway Aaron Klejman Mike Pejs SVP, Finance & CFO VP & GM, VP, Shawflex Flexpipe Meghan MacEachern Thomas Schmidt Tom Tietjen Director, External VP & GM,