Matrix Composites & Engineering Ltd · ASX:MCE
Matrix Composites & Engineering — Shareholder Meeting (November 2017)
25 slides from Matrix Composites & Engineering's shareholder meeting presentation, Nov 8, 2017
Slide 1: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING Matrix Composites & Engineering Ltd 8 November 2017
Slide 2: Disclaimer
Disclaimer Reliance on third party information The information and views expressed in this presentation were prepared by Matrix Composites & Engineering Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified. No r
Slide 3: Agenda
Agenda • Introduction • Quorum • Board Members • Voting Instructions • Notice of Meeting • Previous Minutes • Meeting Procedure • Chairperson’s Address • Resolutions • CEO Presentation 3
Slide 4: Chairman's Address Mr Peter Hood
Chairman’s Address Mr Peter Hood Chair 4
Slide 5: Financial Statements
Financial Statements • To receive and consider the Financial Statements of the Company for the year ended 30 June 2017, consisting of the Income Statements, Statement of Financial Position, Statements of Changes in Equity, Statements of Cash Flows, the Directors’ Report, the Directors’ Declaration a
Slide 6: Resolution 1
Resolution 1 As an ordinary resolution • That Mr Steven Cole, being a Director of the Company, retiring by rotation in accordance with clause 19.3 of the Company’s constitution, and being eligible, is re- elected as a Director of the Company. For Against Open Abstain 55,143,965 73,354 511,725 1,209
Slide 7: Resolution 2
Resolution 2 As an ordinary resolution • “That, for the purposes of ASX Listing Rule 7.2 (Exception 9) and for all other purposes, shareholders approve the Matrix Rights Plan and the grant of Performance Rights and Share appreciation Rights and the issue of Shares under such Rights Plan, a summary o
Slide 8: Resolution 3
Resolution 3 As an ordinary resolution • “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, the grant to the Managing Director and Chief Executive Officer Aaron Begley of 1,486,641 Share Appreciation Rights under the Matrix Rights Plan, on the terms described in the Explan
Slide 9: Resolution 4
Resolution 4 As an ordinary resolution • That the Remuneration Report, as set out in the Company’s 2017 Annual Report, is adopted. For Against Open Abstain 54,169,089 960,371 511,725 89,068 - The vote on this resolution is advisory only and does not bind the Directors’ or the Company - Votes cast by
Slide 10: Closure
Closure • Any other business which may be brought forward in accordance with the Company’s Constitution and the Corporations Act 2001 • Close of meeting – Mr Peter Hood, Chairperson 10
Slide 11: CEO Presentation Mr Aaron Begley
CEO Presentation Mr Aaron Begley Chief Executive Officer and Managing Director 11
Slide 12: Matrix today
Matrix today A materials technology company and recognised leader in syntactic foam technology, polymers, and advanced composites. • Engineered products We produce • Functional additives • Advanced materials • New business structure targeting growth in these markets: For these markets o Energy & Mar
Slide 13: Delivered against strategic priorities
Delivered against strategic priorities FY17 priority Status Restructured business to better align costs with Review cost base and output to align the business demand profile. with market demand. Moved to project-based production. Diversify the business by expanding into: Developed business structure
Slide 14: FY2017 Financial Results
FY2017 Financial Results 14
Slide 15: Key financial metrics
Key financial metrics FY17 FY16 • Revenue and earnings impacted by Revenue $m 33.1 95.7 subdued oil and gas prices throughout EBITDA $m (15.6) 6.4 the year, affecting demand for riser buoyancy products. Underlying EBITDA1 $m (4.4) 11.3 • NPAT also affected by non-recurring Net profit/(loss) after ta
Slide 16: Debt and banking
Debt and banking • Continued trend of transition from net debt to net $m FY17 FY16 cash. Cash 16.6 8.4 • Have reduced use of trade finance facility due to Progress claims and deposits (1.0) (1.9) high cash levels. Term debt - - Trade finance debt (1.5) (2.9) • Providing balance sheet strength to pur
Slide 17: Growth strategy and outlook
Growth strategy and outlook 17
Slide 18: New business structure, with range of products and services targeting growth
New business structure, with range of products and services targeting growth Civil & Historic business Energy Resources Defence Infrastructure Traditional Products ► Riser Buoyancy • ► SURF • • • ► MaxRTM • Growth Products ► Matrix LGSTM • • ► ParagonTM • • • • ► KineticaTM • • • • ► BallisticTM • ►
Slide 19: Traditional products
Traditional products Product: Riser buoyancy Markets: Energy • US$17m orders to be produced between now and FY20. • US$170m in active tenders outstanding but opportunities may be delayed due to capex restrictions. • Projects not limited to new build rigs, with Matrix LGS providing retrofit opportuni
Slide 20: Traditional products
Traditional products Product: Centralisers Markets: Energy • Strong demand for well construction products, particularly in North America where we have increased our presence and range. • Promising growth in Asia with potential opportunities in the Middle East. • Current six-monthly revenue rate of a
Slide 21: Growth products and services
Growth products and services Product: LGSTM Markets: Energy, Defence • Recent award of c.$3m contract (initial phase) for a shallow water pipeline application, outside of early target markets. • Second system deployed and electronically monitored in the Gulf of Mexico (see picture), to deliver test
Slide 22: Growth products and services
Growth products and services Product: KineticaTM Markets: Energy, Resources, Civil & Infrastructure, Defence • Delivered +100m3 of various Kinetica forms, including energy absorbing grades for crash barriers, shock absorbing grades for underground mining and tailored strength structural stock shapes
Slide 23: Growth products and services
Growth products and services Product: Ballistic Markets: Energy • Range of cost effective cementing and casing equipment and tools. • Particularly suited for on-shore oil & gas drilling projects. • Targets the +$400m North American cementing and ancillaries market. Product: Other R&D products Market
Slide 24: Strategic priorities and outlook for FY18
Strategic priorities and outlook for FY18 • Delivering on stated strategy to expand into new products and markets, away from the cyclical nature of oil & gas growth capex products, by utilising existing expertise and capacity. • Reduced reliance on riser buoyancy order book, as seen with $5m in cont
Slide 25: Contact details
Contact details AARON BEGLEY Chief Executive Officer T: +61 8 9412 1200 E: aaron.begley@matrixengineered.com 25
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