Magellan Aerospace Corporation · TSX:MAL
Magellan Aerospace — Shareholder Meeting (2025)
25 slides from Magellan Aerospace's shareholder meeting presentation, 2025
Slide 1: Magellan 2025 AGM
MAGELLAN 2025 AGM
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: Welcome and Remarks
N. MURRAY EDWARDS CHAIRMAN OF THE BOARD OF DIRECTORS » Welcome and Remarks » Receipt of Financial Statements for 2024 » Election of Directors » Appointment of Auditors » Other Business Annual General Meeting 2025 3
Slide 4: CEO: Business Highlights, Financial Summary, Strategic Highlights
PHILLIP C. UNDERWOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER » Business Highlights » Financial Summary » Strategic Highlights Annual General Meeting 2025 4
Slide 5: CEO: Global Presence, Industry Update, Key Contracts
PHILLIP C. UNDERWOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER » Global Presence » Industry Update » Key Contract Announcements » 2024 Revenues by Customer and Segment Annual General Meeting 2025 5
Slide 6: Global Business Units
GLOBAL BUSINESS UNITS 3,815 Global Population NORTH AMERICA EUROPE INDIA Winnipeg, MB Wrexham, UK Bangalore (Magellan) Kitchener, ON Greyabbey, UK Tumkur (Magellan) Mississauga, ON Blackpool, UK Belgaum (JV - API) Haley, ON Kelbrook, UK Headquarters: New York, NY (x3) Mielec, Poland Mississauga, ON
Slide 7: Industry Update
2025 Industry Update Annual General Meeting 2025 7
Slide 8: Industry Update: Market Overview - Commercial
INDUSTRY UPDATE MARKET OVERVIEW - COMMERCIAL Industry-wide travel International travel Strong order backlogs increased by 8.6% grew by 10.6% YoY recorded in 2024. YoY. IATA forecasts 2025 Airbus – 8,658 aircraft Domestic travel grew annual growth to be Boeing - 6,245 aircraft by 5.5% YoY. around 8%.
Slide 9: Industry Update: Market Overview - Defence
INDUSTRY UPDATE MARKET OVERVIEW - DEFENCE Uncertainty caused by U.S. F-35 represents 40% of total fighter deglobalization and pull back of production and deliveries. international defence support is driving allies strategy changes. With 110 aircraft delivered in 2024, the global fleet now exceeds 1,
Slide 10: Industry Update: Impact of Tariffs on Magellan
INDUSTRY UPDATE IMPACT OF TARIFFS ON MAGELLAN • Based on our current business, approximately 75% of Magellan’s revenues are unaffected by tariffs. • Of the remaining 25%, virtually all is export from Canada into the U.S., which is currently exempt from tariffs under the CUSMA free trade agreement. •
Slide 11: Contracts, Customers, Segments
2024 Contracts, Customers, Segments 11
Slide 12: Key Contracts Announcements
KEY CONTRACTS ANNOUNCEMENTS 2024 Magellan announced strategic contracts in key sectors including: 12
Slide 13: Business Overview: 2024 Revenues by Customer and Segment
BUSINESS OVERVIEW 2024 REVENUES BY CUSTOMER AND SEGMENT 7% 12% Aerostructures Aeroengines and Repair and Overhaul Casting 56% 25% Specialty Products and Other Commercial Defense Annual General Meeting 2025 13
Slide 14: CFO: Revenue, Gross Profit, EBITDA, Capital Expenditure
ELENA MILANTONI CHIEF FINANCIAL OFFICER » Revenue » Gross Profit » EBITDA » Capital Expenditure Annual General Meeting 2025 14
Slide 15: Financial Summary: Key Financial Metrics
FINANCIAL SUMMARY KEY FINANCIAL METRICS Revenue Gross Profit Millions Millions $1,000 $180 Gross Profit as a % of Revenues 14.0% $150 $800 12.0% $120 10.0% $600 8.0% $90 $400 6.0% $60 4.0% $200 $30 2.0% $- $- 0.0% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Capital Spend 5.0% Millions EBITDA 1
Slide 16: Financial Summary: Key Financial Metrics
FINANCIAL SUMMARY KEY FINANCIAL METRICS Inventory Contract Assets Millions Millions $300 $85 $250 $70 16 $200 $55 $150 $40 $100 $25 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Combined Inventory and Contract Assets Millions $400 $350 $300 $250 $200 $150 Annual General Meeting 2025 2020 2021 20
Slide 17: CEO: Challenges, Opportunities & Goals
PHILLIP C. UNDERWOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER » Challenges, Opportunities & Goals Annual General Meeting 2025 17
Slide 18: Magellan Aerospace Strategy: Growth Opportunities
MAGELLAN AEROSPACE STRATEGY GROWTH OPPORTUNITIES DRIVERS IMPACT RESULTS & OPPORTUNITIES Build rates are increasing - Boeing and Airbus are ramping up Revenue growth NEW BUSINESS production Improved utilization leads to efficiency CAPTURE gains and positive operating leverage Win new work with ex
Slide 19: Magellan Aerospace Strategy: Margin Improving Opportunities
MAGELLAN AEROSPACE STRATEGY MARGIN IMPROVING OPPORTUNITIES DRIVERS IMPACT RESULTS & OPPORTUNITIES Magellan has been operating in India for Commoditized parts are offshored to low 18+ years LOW COST cost countries Investment to expand facility SOURCING - Mitigate rising labour & production costs
Slide 20: Magellan Aerospace Strategy: Strategic Goals
MAGELLAN AEROSPACE STRATEGY STRATEGIC GOALS Grow Magellan as the supplier of choice STRATEGY to the global aerospace industry Strategic Goals Strategic Enablers Business growth in selected markets Vision Grow a balanced portfolio with customers • Year on year revenue and profit growth Nurture an own
Slide 21: Environmental Social Governance: Our Commitment
ENVIRONMENTAL SOCIAL GOVERNANCE OUR COMMITMENT Annual General Meeting 2025 21
Slide 22: Environmental Social Governance: Our Commitment
ENVIRONMENTAL SOCIAL GOVERNANCE OUR COMMITMENT Annual General Meeting 2025 22
Slide 23: Environmental Social Governance: Our Commitment
ENVIRONMENTAL SOCIAL GOVERNANCE OUR COMMITMENT Annual General Meeting 2025 23
Slide 24: Summary: 2024 Achievements and Key Areas of Focus
MAGELLAN AEROSPACE SUMMARY 2024 ACHIEVEMENTS AND KEY AREAS OF FOCUS 2024 Achievements Key Areas of Focus • Significant revenue and profit growth • Continued focus on profitable growth • Balance Sheet remains strong • Prioritize working capital improvements • Inventory and contract assets • Progresse
Slide 25: Thank You
MAGELLAN THANK-YOU AEROS PACE