Mattr Corp · TSX:MATR
Mattr — Shawcor — Investor Presentation (March 2023)
29 slides from Mattr's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
Investor Presentation MARCH 2023
Slide 2: Statement Regarding Forward-Looking Information
Statement Regarding Forward-Looking Information This presentation contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify
Slide 3: Shawcor is a Growth-Oriented Materials Technology Company
Shawcor is a Growth-Oriented Materials Technology Company Enabling Renewal & Expansion of Critical Infrastructure Shawcor is a growth-oriented, global material sciences company serving the Infrastructure, Energy $1.3B 2022 ANNUAL REVENUE 4,000+ EMPLOYEES WORLDWIDE Transportation and Water markets. Q
Slide 4: Our Commitment to ESG
Our Commitment to ESG Shawcor’s operating and leadership practices fully embrace ESG ideals and principles OUR SUPPORTING OUR CUSTOMERS PERFORMANCE TO DATE “ The beauty of the tank is that it’s a complete storage system that just needs to be set in place. It was delivered on a semi, within two hours
Slide 5: Pursuing Long-Term Share Valuation Increase by Creating a Simplified Portfolio
Pursuing Long-Term Share Valuation Increase by Creating a Simplified, Less Volatile, Higher Value Portfolio Infrastructure & Industrial FY 2019 REVENUE FY 2022 REVENUE Revenue 73% Strategic 63% Review 46% 24% 2019 2022 Divested or Divested Current Portfolio Pro-forma Portfolio Discontinued Xerxes1 F
Slide 6: High-Value Materials Technology Based Offerings
High-Value Materials Technology Based Offerings COMPOSITE SYSTEMS AUTOMOTIVE AND INDUSTRIAL PIPELINE AND PIPE SERVICES Primary Offerings Primary Offerings Primary Offerings COMPOSITE SYSTEMS AUTOMOTIVE & INDUSTRIAL SHAWFLEX PREMIUM SPOOLABLE COMPOSITE PIPE ENGINEERED WIRE & CABLE DIFFERENTIATED PROT
Slide 7: Positioned to Address Long-Term Growth Macro Trends
Positioned to Address Long-Term Growth Macro Trends 1. AGING 2. POPULATION INFRASTRUCTURE MOVEMENT New infrastructure needed Replacements needed for to support population infrastructure at end of life growth and movement Tank Replacements Communication Network Utility Upgrades Buildout Pipel
Slide 8: Prioritizing Higher Growth with Higher EBITDA Margins
Prioritizing Higher Growth with Higher EBITDA Margins (C$ mm) Revenue and Adj. EBITDA Adj. EBITDA Margin $2,000 25% $1,489 $1,500 $1,255 $1,178 $1,143 20% $1,000 $500 $136 $74 $106 $130 15% $0 2019 2020 2021 2022 10.4% Revenue Adj. EBITDA 9.2% 9.2% 10% 6.3% 5% • Focused growth of highest margin busi
Slide 9: Robust Backlog, Bid & Budgetary
Robust Backlog, Bid & Budgetary Q4 2022 Q3 2022 12-month Backlog rose 22% as offshore pipeline $220 construction projects are captured and industrial and infrastructure $465 demand remains strong. The majority of the backlog is attributed to the Pipeline and Pipe Services segment. Bid strength conti
Slide 10: Investing in Technology – The Heart of Our Competitive Advantage
Investing in Technology – The Heart of Our Competitive Advantage Shawcor’s technology advantage is based on industry-leading material science that draws on deep partnerships with researchers, universities and customers. As at year end 2022: HydrochainTM Large Diameter $9M Record quarterly revenue in
Slide 11: Simple Capital Structure & Growth Oriented Capital Allocation
Simple Capital Structure & Growth Oriented Capital Allocation Maintain Net-debt-to-Adjusted EBITDA to below 1.5x Prioritize high return organic growth opportunities with appropriate CAPEX and working capital (C$ mm) 3.92x $180 3.13x (C$ mm) 2.10x Will continue to 1.5x lower Net Debt over $525 $506 t
Slide 12: Strong Operational Performance and Improved Balance Sheet
Strong Operational Performance and Improved Balance Sheet Capital Allocation – Debt Reduction FY 2022 vs 2021 Elevating Cash from Operations KEY FINANCIAL TAKEWAYS (C$ mm) $211 +$112M in Revenue Elevated cash balance due in part to Southeast Gateway Pipeline $54 $65 (SGP) milestone payments which +$
Slide 13: Multi Year, High Return, Low Risk, Growth Capital Plan
Multi Year, High Return, Low Risk, Growth Capital Plan Capital Allocation - Capital Expenditures Pipeline and Pipe Services Supporting high return organic growth opportunities Annual maintenance CAPEX need is $15-20M with appropriate CAPEX and working capital Remaining spend is growth CAPEX, (C$
Slide 14: Recent Acquisitions Bring Strategic Value & Accelerate Growth
Recent Acquisitions Bring Strategic Value & Accelerate Growth Capital Allocation – Mergers & Acquisitions Criteria for Potential Targets Include: Tight alignment with existing areas of strategic focus Clear operational, customer or path-to-market synergies Cultivate high-value tuck-in acquisitio
Slide 15: Remaining Active on Normal Course Issuer Bid
Remaining Active on Normal Course Issuer Bid Capital Allocation – Return Capital to Shareholders The Company filed a Normal Course Issuer Bid (NCIB) on September 21, 2022. Financing Structure The Company’s high yield note currently limits its ability to buy back shares or As at Dec. 31, 2022 initiat
Slide 16: Cumulative Value of Strategic Actions
Cumulative Value of Strategic Actions Actions taken since the beginning of 2020 resulted in the following, as at December 31, 2022: 9 Pipe Coating Facility Exits Increase in Long-term Debt Scope 1 & 2 Estimated Fixed Infrastructure and Business 8 Divestitures/Closures Removed $222M Emissions Reduced
Slide 17: A Global Materials Technology Company Positioned for Growth
A Global Materials Technology Company Positioned for Growth Transitioning to a new Company name: Mattr™ in Q2 2023 Mattr embodies our core competencies in materials science, and reflects the significance of our products and solutions. What we do matters – to our employees, our customers, our communi
Slide 18: Business Segments
Business Segments INVESTOR PRESENTATION MARCH 2023 — 18 ENGINEERING A BETTER FUTURE
Slide 19: Composite Systems
Composite Systems FY-2022 Q4-2022 Revenue by Market Revenue +41% $529.2 M FY-2021 Revenue $374.9 M Oil & Gas, Infrastructure 47% & Industrial, 17.6% 53% 14.5% +310bps Margin Margin Adj. EBITDA Adj. EBITDA $93.2 M +71% $54.5 M INVESTOR PRESENTATION MARCH 2023 — 19 ENGINEERING A BETTER FUTURE
Slide 20: Composite Systems – Xerxes
Sample Customers Composite Systems Xerxes Shawcor manufactures composite underground storage tanks which serve liquid fuel and water and wastewater end markets Sample Competitors INDUSTRY TRENDS 77% of fuel marketers expect liquid fuel sales volumes to rise over the coming 10 years –CSP Daily News
Slide 21: Composite Systems – Liquid Fuels Opportunity
Wawa CEO quoted in the April 15, 2022 Business Murphy CEO quoted in Feb 2023 re: Journal - Charting its “most aggressive growth” in intent to add 500 new c-stores over the the company’s history, going from 965 stores to Composite Systems next decade while proceeding with 1800 stores by 2030, expandi
Slide 22: Xerxes and Hydrochain – Water Management
Composite Systems Xerxes and Hydrochain™ – Water Management Hydrochain™ Stormwater Management Systems include all the components needed for comprehensive water-quality systems. Growth Observed in Water Management Revenue The systems combine Xerxes’ corrosion-resistant fiberglass tanks with treatment
Slide 23: Composite Systems – FlexPipe
Sample Customers Composite Systems FlexPipe Shawcor offers a variety of flexible, spoolable composite pipe solutions, predominantly for North American onshore oil & gas Sample Competitors gathering lines INDUSTRY TRENDS US FY 2022 well counts increased roughly +21% YoY; Canada +38% YoY – Baker Hug
Slide 24: Automotive & Industrial
Automotive & Industrial Q4-2022 Revenue by Market FY-2022 FY-2021 Revenue +19% $313.1 M Revenue $263.5 M Automotive 28% 18.9% Industrial & 17.2% +170bps Margin Other Margin Infrastructure 72% Adj. EBITDA Adj. EBITDA $45.2 M +31% $59.3 M INVESTOR PRESENTATION MARCH 2023 — 24 ENGINEERING A BETTER FUTU
Slide 25: Automotive & Industrial – ShawFlex
Sample Customers & End Users Automotive & Industrial ShawFlex Sample Competitors Shawcor excels as a niche specification-based supplier through developing and manufacturing innovative custom wire and cable products under the ShawFlex brand. INDUSTRY TRENDS Ontario is investing $25 billion over 201
Slide 26: Automotive & Industrial – DSG-Canusa
Sample Customers & End Users Automotive & Industrial DSG-Canusa Shawcor offers a full range of high-quality heat & cold shrink cable Sample Competitors accessories for Automotive, ADM, Communications, Electrical Utility, Electronic and Oil and Gas markets. DSG-Canusa’s automotive INDUSTRY TRENDS
Slide 27: Pipeline & Pipe Services
Pipeline & Pipe Services Q4-2022 FY-2021 Revenue by Market Revenue $507.5 M FY-2022 Revenue -18% North America $415.5 M Midstream International & 8% Offshore 71% 4.1% 0.7% -340bps Margin Margin North America Upstream Adj. EBITDA Adj. EBITDA -87% 12% $20.9 M $2.7 M INVESTOR PRESENTATION MARCH 2023 —
Slide 28: Pipeline & Pipe Services – Pipeline Performance Group
Sample Customers Pipeline & Pipe Services Pipeline Performance Group Shawcor provides highly technical interior and exterior pipe coating solutions, predominantly for offshore pipeline installations Sample Competitors INDUSTRY TRENDS Multi-year up-cycle in offshore pipeline construction evolving (
Slide 29: Southeast Gateway Pipeline
Southeast Gateway Pipeline Shawcor will coat approximately 706 km of 36-inch diameter pipe Expected Revenue >$500M Coating will be executed from two mobile plants in Altamira Mexico (similar set-up was used to execute the Sur de Texas project) Project margin profile will elevate full segment perform