Mattr Corp · TSX:MATR
Mattr — Shawcor — Investor Day (2020)
52 slides from Mattr's investor day presentation, 2020
Slide 1: Investor Day 2020
+ SOLUTIONS MATTER 2020 INVESTOR DAY Assets protected with RFID data-enabled end caps
Slide 2: Disclosure Statement
DISCLOSURE STATEMENT This presentation includes certain statements that reflect management’s expectations and objectives for the Company’s future performance, opportunities and growth, which statements constitute "forward looking information" and "forward looking statements" (collectively "forward
Slide 3: Investor Day - Agenda and Presenters
INVESTOR DAY - AGENDA AND PRESENTERS Our Company Shawcor Foundations Paul Pierroz Cindy SVP, Ron Dunn Grolleman, Steve Orr Corporate & SVP, R&D and VP, Shawcor President & Investor Operations Management CEO Relations System Rexdale Location Tour Joe Tabak Kevin Reizer Shawn Doyle Trina Vitolianos
Slide 4: Shawcor Heritage of Customer Focus and Innovation
SHAWCOR HERITAGE OF CUSTOMER FOCUS AND INNOVATION 1969 2019 Early development of Advanced manufacturing of protective coatings composite products We have anticipated, adapted and changed to the dynamic business environment for over 50 years.
Slide 5: The Shawcor Values Based Culture
THE SHAWCOR VALUES BASED CULTURE INTEGRITY TECHNOLOGY EXECUTION The core of our business is The heart of our business is our The advantage of our business environmental protection. depth in materials science. is execution and continuous We strive to do the right thing in We have unique c
Slide 6: Sustainability Is Fully Integrated in Shawcor
SUSTAINABILITY IS FULLY INTEGRATED IN SHAWCOR OUR PURPOSE OUR SOLUTIONS OUR OPERATING PRACTICES The purpose of our business is We relentlessly pursue Our operating and leadership environmental protection, asset technologies that reflect our practices fully embrace integrity and sustainabilit
Slide 7: Our Business Profile Today
OUR BUSINESS PROFILE TODAY DESIGN BUILD PROTECT MANAGE ENERGY & INFRASTRUCTURE TECHNOLOGY We deliver engineering We manufacture We apply advanced We provide complete and consulting services products, equipment materials and inspection, integrity and to develop innovative, and systems to meet formu
Slide 8: Historic Business Model – 2009 to 2015
→ HISTORIC BUSINESS MODEL – 2009 TO 2015 Revenue Cash from Operations FINANCIAL DYNAMICS 2,000 600 Accumulated Cash From Pipe 1,800 Cash from Operations (CAD$ Millions) Coating Projects and Survived 500 1,600 On Reserves Revenue (CAD$ Millions) 1,400 400 1,200 MODEL WORKED 1,000 300 800 Controllin
Slide 9: Shawcor Markets and Drivers - Diversification
SHAWCOR MARKETS AND DRIVERS - DIVERSIFICATION INTERNATIONAL & NORTH AMERICAN NORTH AMERICAN NON-OIL & GAS LARGE PROJECTS OFFSHORE MIDSTREAM UPSTREAM Global Automotive Pipeline Capacity Pipeline Capacity US and Canada US and Canada and Industrial and Infrastructure and Infrastructure Dril
Slide 10: Shawcor Business Segments
~ SHAWCOR BUSINESS SEGMENTS Business Description Leading Brands Products & Services Energy & Infrastructure Markets = vue vue vvuvVvvVvve PIPELINE & PIPE SERVICES Provider of pipeline protection and inspection solutions as well as facilities and engineering services Bredero Shaw Socotherm Canusa-CPS
Slide 11: Compelling Fundamentals Driving Long Term Value
→ COMPELLING FUNDAMENTALS DRIVING LONG TERM VALUE SHAWCOR ❷ ❶ Business Segments SUPPLY/ DEMAND IMPORTANCE OF IMBALANCES ASSET OWNERSHIP • Significant imbalances in Water, • Ownership for full lifecycle and Oil, Gas and Electricity long- range performance • Investments required to match COMPOSITE SYS
Slide 12: Investor Day
+ SOLUTIONS MATTER 2020 INVESTOR DAY Assets protected with RFID data-enabled end caps
Slide 13: Key Foundational Elements
KEY FOUNDATIONAL ELEMENTS TECHNOLOGY DIGITAL ENABLEMENT DOMAIN PARTNERSHIP EXPERTISE HEALTH, SAFETY & SHAWCOR TALENT ENVIRONMENT MANAGEMENT SYSTEM & CULTURE INTEGRITY TECHNOLOGY EXECUTION
Slide 14: Health, Safety & Environment (HSE)
HEALTH, SAFETY & ENVIRONMENT (HSE) Ensuring the Health and Safety of Stakeholders and Protecting the Environment ► Incident & Injury Free ► Environmental Stewardship ► HSE & Metrics Reporting ► Driver Safety SHAREHOLDERS Reducing Risk & Liability CUSTOMERS Protecting Customers, Suppliers & Visitor
Slide 15: The Shawcor Management System (SMS)
THE SHAWCOR MANAGEMENT SYSTEM (SMS) An Industry-Leading Productivity and Continuous Improvement Program ► Lean Tools ► Operational Excellence ► Six-Sigma ► Culture, Leadership and Process SHAREHOLDERS Improved Returns CUSTOMERS Flawless Execution & Superior Quality LAUNCH OF SMS AT ZCL COMPOSITES
Slide 16: Shawcor Talent and Culture
SHAWCOR TALENT AND CULTURE An Agile Organization with Deep Industry Experience and Bench Strength ► Talent Management ► International Diversity ► Functional Depth ►Leadership Development SHAREHOLDERS SUR DE TEXAS Strong Leadership TUXPAN PROJECT CUSTOMERS Rapid Deployment of Global Expertise EMPLO
Slide 17: Technology Partnership
TECHNOLOGY PARTNERSHIP Consistently Developing New Offerings to Match Market Opportunities ► Polymers ► Adhesives ► Composites ► Flow Assurance ► Inspection, Testing & Monitoring SHAREHOLDERS Sustained Profitable Growth CUSTOMERS Partnering to Develop Better Solutions EMPLOYEES SIMULATED SUBSEA VE
Slide 18: Digital Enablement
DIGITAL ENABLEMENT Leveraging Data to Improve Customer Value and Experience ► Customer Portals ► Shawcor Apps ► Real-time Data Collection ► Business Analytics SHAREHOLDERS Improved Financial Performance CUSTOMERS Making Better Business Decisions EMPOWERING CUSTOMERS THROUGH SYSTEM EMPLOYEES INTEGR
Slide 19: Domain Expertise
DOMAIN EXPERTISE A Leading Authority on Knowing What We Develop ► Consulting Services ► Planning and Design ► Project Oversight ► Solutions Development SHAREHOLDERS Supports Portfolio Management CUSTOMERS Partnering to Develop Better Solutions EMPLOYEES INTEGRITY MANAGEMENT FIELD SUPPORT Leading I
Slide 20: An Engine for Sustainable Growth
AN ENGINE FOR SUSTAINABLE GROWTH SHAREHOLDERS CUSTOMERS EMPLOYEES COMMUNITY TECHNOLOGY DIGITAL ENABLEMENT DOMAIN PARTNERSHIP EXPERTISE HEALTH, SAFETY & SHAWCOR TALENT ENVIRONMENT MANAGEMENT SYSTEM & CULTURE INTEGRITY TECHNOLOGY EXECUTION
Slide 21: Investor Day
+ SOLUTIONS MATTER 2020 INVESTOR DAY Assets protected with RFID data-enabled end caps
Slide 22: Pipeline & Pipe Services
PIPELINE & PIPE SERVICES
Slide 23: Pipeline Performance
PIPELINE PERFORMANCE MARKET DRIVERS ENERGY TRANSITION FROM COAL TO GAS LARGE PIPELINES FEEDING LNG LOWER COST OFFSHORE DEVELOPMENT SUBSEA TIEBACKS AND GREENFIELD DEVELOPMENTS GROWING EPCI DEVELOPMENT MODEL PARTNERSHIPS WITH EPC CONTRACTORS CHALLENGING DEEP WATER FIELDS REQUIRES TECHNOLOGY AGING INFR
Slide 24: Pipeline Performance
PIPELINE PERFORMANCE PRODUCT/SERVICE OFFERING FLOW ASSURANCE PROTECTIVE & FIELD JOINT PROTECTION & ENHANCED LOGISTIC WEIGHT COATINGS COATINGS PRESERVATION PRODUCTS SOLUTIONS DIFFERENTIATION CUSTOMER TECHNOLOGY GLOBAL PROVEN TRACK DIGITAL RELATIONSHIPS & INNOVATION FOOTPRINT RECORD CAPABILITIES KEY C
Slide 25: Integrity Management
INTEGRITY MANAGEMENT MARKET DRIVERS AGING INFRASTRUCTURE PIPELINE REHABILITATION REGULATORY ENVIRONMENT INTEGRITY SERVICES US PIPELINE CAPACITY CONSTRAINTS PIPELINE CONSTRUCTION PROJECTS US LAND – SHALE INFRASTRUCTURE BUILDOUT UK DEFENSE & INDUSTRIAL SPENDING EXPANSION BEYOND OIL & GAS MARKET OPPORT
Slide 26: Integrity Management
INTEGRITY MANAGEMENT PRODUCT/SERVICE OFFERING CONVENTIONAL ADVANCED NDT COMPUTED iLINE – WELD CUSTOMIZED NDT SERVICES SERVICES RADIOGRAPHY ADVISOR SYSTEMS (AUT & RTR) DIFFERENTIATION CUSTOMER TECHNOLOGY INDUSTRY SERVICE DIGITAL RELATIONSHIPS & INNOVATION EXPERTS EXCELLENCE SOLUTIONS KEY CUSTOMERS OW
Slide 27: Management & Engineering Services
MANAGEMENT & ENGINEERING SERVICES MARKET DRIVERS AGING WORKFORCE EMBEDDED EMPLOYEES AGING INFRASTRUCTURE REHABILITATION AND REPLACEMENT REGULATORY REQUIREMENTS COMPLIANCE SERVICES STRICTER EMISSION STANDARDS DESIGN SERVICES MARKET OPPORTUNITIES ASSET NEW INTEGRITY CLEAN NON-PIPELINE OWNERSHIP INFRAS
Slide 28: Management & Engineering Services
MANAGEMENT & ENGINEERING SERVICES SERVICE OFFERING CATHODIC ASSET INTEGRITY ENGINEERING INSPECTION EMBEDDED PROTECTION MANAGEMENT SERVICES SERVICES TECHNICAL EXPERTISE DIFFERENTIATION CUSTOMER TECHNICAL PROVEN TRACK PROJECT DIGITAL RELATIONSHIPS EXPERTISE RECORD MANAGEMENT CAPABILITIES KEY CUSTOMERS
Slide 29: Composite Systems
COMPOSITE SYSTEMS
Slide 30: Composite Pipes & Tanks
COMPOSITE PIPES & TANKS MARKET DRIVERS ADOPTION OF COMPOSITE TECHNOLOGIES CONVERSION OF CONCRETE/STEEL AGING PIPE AND TANK INFRASTRUCTURE ASSET REPLACEMENT AND REFURBISHMENT INCREASING OIL & GAS PRODUCTION COMPLEXITY EXPANDING THE OPERATING ENVELOPE NA ECONOMIC AND CONSTRUCTION ACTIVITY GROWTH IN WA
Slide 31: Composite Pipes & Tanks
COMPOSITE PIPES & TANKS PRODUCT & SERVICE OFFERING COMPOSITE COMPOSITE PIPE POLYETHYLENE INSTALLATION & DIGITAL TANKS PIPE INTEGRITY SERVICES ENABLEMENT DIFFERENTIATION CUSTOMER TECHNOLOGY APPLICATIONS STRONG VALUE DIGITAL RELATIONSHIPS & INNOVATION ENGINEERING PROPOSITION CAPABILITIES KEY CUSTOMERS
Slide 32: Oilfield Asset Management
OILFIELD ASSET MANAGEMENT MARKET DRIVERS MARKET ACCESS (PIPELINE CAPACITY/LNG TERMINALS) INCREASED DRILLING/COMPLETIONS INCREASED/ENHANCED RECOVERY TECHNIQUES PRODUCT DIVERSIFICATION WELL ABANDONMENT PROGRAMS OCTG PIPE REFURBISHMENT CUSTOMER INVESTMENT IN DIFFERENTIATED TECHNOLOGY ASSET MANAGEMENT C
Slide 33: Oilfield Asset Management
OILFIELD ASSET MANAGEMENT PRODUCT/SERVICE OFFERING COMPOSITE SUCKER ROD TUBULAR PROPRIETARY ASSET LINED TUBING INSPECTION & INSPECTION & THREADING / MANAGEMENT REPAIR REPAIR MACHINING DIGITAL SERVICES DIFFERENTIATION CUSTOMER TECHNOLOGY REGIONAL PRODUCT DIGITAL RELATIONSHIPS & INNOVATION FOOTPRINT P
Slide 34: Automotive & Industrial
AUTOMOTIVE & INDUSTRIAL
Slide 35: Shawflex
SHAWFLEX MARKET DRIVERS NON-RESIDENTIAL INDUSTRIAL CONSTRUCTION BROAD CATALOGUE AGING INFRASTRUCTURE SUBSTATION CONTROL CABLES NA INFRASTRUCTURE PROJECTS TRANSIT AND SPECIALTY CONTROL CABLES CANDU NUCLEAR REFURBISHMENT PLANS ENGINEERED TO ORDER CUSTOMIZED CABLES RENEWABLE ENERGY POWER CABLES REGULAT
Slide 36: Shawflex
SHAWFLEX PRODUCT/SERVICE OFFERING INSTRUMENTATION CONTROL CABLE POWER CABLE CUSTOM ENGINEERED CABLE WIRE AND CABLE DIFFERENTIATION CUSTOMER INDUSTRY TECHNOLOGY TRACK SERVICE RELATIONSHIPS EXPERTISE & INNOVATION RECORD EXCELLENCE KEY CUSTOMERS MAIN COMPETITORS AUTOMOTIVE & INDUSTRIAL
Slide 37: DSG-Canusa
DSG-CANUSA MARKET DRIVERS GLOBAL AUTOMOTIVE PRODUCTION GLOBAL SUPPLY CHAIN ELECTRONIC CONTENT GROWTH CUSTOMIZED PRODUCT SOLUTIONS ELECTRIC VEHICLE ADOPTION RATE NEW PLATFORMS AND PROGRAMS AEROSPACE AND DEFENSE INVESTMENTS INDUSTRIAL DIVERSIFICATION CLEAN & SMART ENERGY PROJECTS INVESTMENT IN ELECTRI
Slide 38: DSG-Canusa
DSG-CANUSA PRODUCT/SERVICE OFFERING HEAT SHRINK COLD SHRINK APPLICATION AFTERMARKET TECHNOLOGY TECHNOLOGY EQUIPMENT SALES & SERVICE DIFFERENTIATION CUSTOMER APPLICATION INNOVATIVE INTEGRATED GLOBAL BASE ENGINEERING TECHNOLOGY SYSTEMS FOOTPRINT EXPERTISE KEY CUSTOMERS MAIN COMPETITORS AUTOMOTIVE & IN
Slide 39: Investor Day
+ SOLUTIONS MATTER 2020 INVESTOR DAY Assets protected with RFID data-enabled end caps
Slide 40: Disclosure Statement
DISCLOSURE STATEMENT This presentation includes certain statements that reflect management’s expectations and objectives for the Company’s future performance, opportunities and growth, which statements constitute "forward looking information" and "forward looking statements" (collectively "forward
Slide 41: An Engine for Sustained Growth
→ AN ENGINE FOR SUSTAINED GROWTH BUSINESS FINANCIAL INHERENT VALUE → Pipeline & Pipe Services → Management → Sum of the Parts → Composite Systems → Commitment to Shareholders → Automotive & Industrial → Performance
Slide 42: Business Outlook: Pipeline & Pipe Services
→ BUSINESS OUTLOOK PIPELINE & PIPE SERVICES International and offshore projects will drive Pipeline Protection & improved profitability and cash generation in Products 2020 and beyond Work secured will result in step-up in H2 2020 performance Additional awards will build backlog and be supportiv
Slide 43: Business Outlook: Composite Systems
→ BUSINESS OUTLOOK COMPOSITE SYSTEMS Growing acceptance and established base business will drive high growth Composite Pipe Market share supports forward performance Addressable market expansion provides a hedge for near term results Conversion to Composites is just starting and will support f
Slide 44: Business Outlook: Automotive & Industrial
→ BUSINESS OUTLOOK AUTOMOTIVE & INDUSTRIAL Stable outlook with growth prospects in core Automotive & Industrial markets Heat Shrink Tied to stable core markets of automotive and industrial Near term upside with nuclear refurbishment Continued base growth underpinned by electric vehicle product
Slide 45: Financial Strengths: Capital & Expense Discipline (CAPEX)
→ FINANCIAL STRENGTHS CAPITAL & EXPENSE DISCIPLINE Preserve global, large project operating advantage through disciplined financial management Global footprint and mobile assets remain an advantage $1.2 billion in capital assets require less than $50 million to maintain Ongoing review of Pipel
Slide 46: Financial Strengths: Capital & Expense Discipline (SG&A)
→ FINANCIAL STRENGTHS CAPITAL & EXPENSE DISCIPLINE Ensure SG&A expenses are appropriate to our scope and operating dynamics All encompassing view of SG&A Disciplined SG&A management practices – 2019 declined as % of revenue Management incentive programs linked to real business metrics 2,000 30
Slide 47: Commitment to Dividend
→ FINANCIAL STRENGTHS COMMITMENT TO DIVIDEND Sustaining our track record of paying dividends through economic cycles is a priority $238 million paid in the last 6 years Maintained the dividend during the downturn Committed to returning cash to shareholders from sustainable earnings 300 243 250
Slide 48: Company & Segment EBITDA Profile
→ FINANCIAL STRENGTHS COMPANY & SEGMENT EBITDA PROFILE SHAWCOR’s EBITDA potential is significant with all three Segments contributing Adjusted EBITDA % (1) Pre-Downturn 2018 Actual (2) 2019 Actual Average (2) (3) Future Scenarios SHAWCOR TOTAL 11% 9% 18% 11% 13% 16% 18% PIPELINE & PIPE SERVICES 6% 2
Slide 49: Capital Allocation
→ FINANCIAL STRENGTHS CAPITAL ALLOCATION SHAWCOR has clear priorities for use of future cash generated Maintain 60¢ / share Dividends to Shareholders 1 PRIMARY $40-50 million / year Maintenance CAPEX Strengthened Balance Sheet Visibility of Net Debt Leverage < 1.5x Non-Oil & Gas M&A Select
Slide 50: Diversification
→ INHERENT VALUE DIVERSIFICATION SHAWCOR’s diversification imperative has created inherent value not yet recognized. Comparison of Trading Multiples - (EV/EBITDA) 2020 Consensus (1) PIPELINE & PIPE SERVICES Oceaneering 8.7 Dril-Quip 10.6 Offshore 4 – 10x Transocean 10.2 Services Technip FMC
Slide 51: Shawcor Investment Highlights
→ SHAWCOR INVESTMENT HIGHLIGHTS 1 Supportive Market Fundamentals Financial Discipline & 2 Organizational Capability 3 Strong Competitive Positioning 4 Positive Outlook 5 Attractive Entry Point
Slide 52: Elements of Shawcor Success
→ ELEMENTS OF SHAWCOR SUCCESS Deliver Positive Leverage and Build On Generate Sustainable Returns On Core Strengths Profitable Growth Resources Invested For The Future Shareholders Employees Tomorrow Continual transition from where we • Growth • Purpose • Select are to where we need to be . . . • Yi