Matrix Composites & Engineering Ltd · ASX:MCE
Matrix Composites & Engineering — Investor Presentation (November 2021)
21 slides from Matrix Composites & Engineering's investor presentation, Nov 29, 2021
Slide 1: Capital Raise Investor Presentation
CAPITAL RAISE INVESTOR PRESENTATION AARON BEGLEY – CEO BRENDAN COCKS – CFO November 2021 MATRIXENGINEERED.COM
Slide 2: Disclaimer
DISCLAIMER Important information: The following notice and disclaimer applies to this investor presentation issued by Matrix Composites & Engineering Ltd (the Company). You are advised to read these disclaimers carefully before reading or making any other use of this presentation or information cont
Slide 3: Equity Raise Overview
COMPOSITES & ENGINEERING EQUITY RAISE OVERVIEW
Slide 4: Equity Raising Overview
EQUITY RAISING OVERVIEW Two Tranche Placement to raise approximately $7.0 million (before costs) through the issue of approximately 43.8 million fully paid ordinary shares in the Company (“New Shares”), comprising: • Approximately 15.4 million New Shares under Tranche 1 to raise approximately $2.5 m
Slide 5: Equity Raising Overview
EQUITY RAISING OVERVIEW Use of Funds Raised Event Date Working Capital support for significant subsea Announcement of Placement Monday, 29 November 2021 $4.5m buoyancy project opportunities Working Capital support - coating sales and Settlement of Tranche One Placement Monday, 6 December 2021 $1.5m
Slide 6: Company Overview
COMPANY OVERVIEW Share Price Performance (Last 12 Months) Pro-Forma Capital Structure (following completion of two-tranche placement)2 $0.30 10.0m Volume Share Price ASX Ticker MCE $0.25 Share Price (24 Nov 21) $0.18 8.0m Shares on Issue2 146.1m $0.20 6.0m Market Capitalisation2 $26.3m $0.15 Cash1,2
Slide 7: Matrix Company Update
COMPOSITES & ENGINEERING MATRIX COMPANY UPDATE
Slide 8: Positioned to Grow
POSITIONED TO GROW FINANCIAL OPERATING OUTLOOK • FY 21 Covid impacted revenue • Strategic pivot to brownfields opex • Offshore oil & gas markets $17.6m (FY20: $27.4m) and expansion into local resources recovering strongly with oil price sector +US$80/bbl2 and strongest capex • Flow on impact of weak
Slide 9: Revenue Exposure to Rebounding Oil Price
REVENUE EXPOSURE TO REBOUNDING OIL PRICE Oil Price Revenue (US$/bbl)1 (A$m) US$140bbl FY 11 Revenue = $174.6m MCE FY Reported Revenue Oil Price $200m FY 11 EBITDA = $47.8m $180m US$120bbl $160m US$100bbl $140m $120m US$80bbl $100m US$60bbl $80m $60m US$40bbl $40m US$20bbl $20m US$0bbl $0m Jul-10 Jan
Slide 10: Three Business Pillars
STRATEGY THREE BUSINESS PILLARS Leveraging oil & gas capability and expertise in materials science and CORROSION ADVANCED SUBSEA BUOYANCY advanced manufacturing to TECHNOLOGIES MATERIALS build sustainable revenue in energy and resources Traditional oil & gas market Growing anti-corrosion coating, Em
Slide 11: Subsea Buoyancy: Macro Trends
SUBSEA BUOYANCY MACRO TRENDS • Engineering, Procurement, Construction and Installation (EPCI) Investment • Strongest since 2013 • Expected to reach US$63.1b in 2021 • New discoveries remain essential in near to mid-term • Offshore spend gaining momentum • Clean Energy Transition • Net-zero by 2050 •
Slide 12: Subsea Buoyancy: Drilling Rig Count
SUBSEA BUOYANCY DRILLING RIG COUNT • Substantial increase in rig count • Back to 2018 levels & growing to 130+ rigs, level not seen since 2016 GLOBAL SUBSEA SPEND STEPPING UP LEGEND: Under contract Firm demand Possible demand Options Source: Westwood Analysis – SubseaLogix Demand forecast Total supp
Slide 13: Subsea Buoyancy: Our Products
SUBSEA BUOYANCY BUOYANCY OUR PRODUCTS LEVERAGING CLIENT BASE • World’s largest drilling riser Insert message • buoyancy manufacturer • Manufacturer of Matrix LGS VIV and drag reduction buoyancy system • SURF buoyancy used in subsea production risers and flowlines • Increasing market share in the SUR
Slide 14: Subsea Key Clients
SUBSEA KEY CLIENTS BUOYANCY OUR CLIENT BASE • Over 20 years experience • More than $1b of oil & gas goods and services delivered across the world in the last 12 years LIGHTER|STRONGER|CORROSION FREE Note: None of the Company’s key clients illustrated above have endorsed or made any statement in this
Slide 15: Subsea Buoyancy: Our Capacity
SUBSEA BUOYANCY OUR CAPACITY • $130m investment • 85,000 m2 (22,000 m2 covered) in Australian Marine Complex, Henderson WA • World’s largest syntactic foam plant in the world • Nameplate capacity – 18,000 buoyancy “parts” per year (plant historically produced up to $180m in a year) • Full capacity r
Slide 16: Subsea Buoyancy: Targeted Projects
SUBSEA BUOYANCY TARGETED PROJECTS OUR SURF PIPELINE (TOTAL = $176M) • Regional projects: ✓ Scarborough ✓ Barossa ✓ Dorado • Global projects: Petrobras deep water developments; Exxon South America; West Africa Deepwater developments 29/11/2021 Matrix PowerPoint Template | Version 000 16 16
Slide 17: Corrosion Technologies
CORROSION TECHNOLOGIES Total Maintenance Spend in Growing anti-corrosion coating, application equipment and technical services Australia by Sector (A$B) 14 LOCAL RESOURCES SECTOR 12 Strong outlook in Oil & Gas • LNG 10 • Brownfield developments • Operational maintenance 8 6 STRONG PERFORMANCE 4 • Fr
Slide 18: Advanced Materials
ADVANCED MATERIALS Emerging high tech composite material solutions LOCAL RESOURCES SECTOR • Iron ore • Gold • Battery minerals • LNG KEY CLIENTS • Woodside Energy Technologies • Newcrest Mining • Active discussions with other major resource companies LIGHTER|STRONGER|CORROSION FREE 18 18
Slide 19: Advanced Materials: Key Technologies
ADVANCED MATERIALS KEY TECHNOLOGIES • Carbon fibre • Thermoplastic composites • Syntactic foam LIGHTER|STRONGER|CORROSION FREE • Steel replacement in mining: ore handling, extraction and processing • Entry to exciting market opportunity 19
Slide 20: Long Track Record of Product Development
LONG TRACK RECORD OF PRODUCT DEVELOPMENT PROBLEM SOLUTION MATRIX SALES: A$1bn 1999 2005 2008 2011 Inconsistency Matrix Drilling Riser • World’s largest syntactic foam and durability Development API 16F Expansion of Henderson Buoyancy Modules pathway Malaga facility facility opened plant established
Slide 21: Summary
SUMMARY ❖ Offshore Oil & Gas Capex is rebounding strongly ❖ Increased reach into the growing subsea production sector whilst maintaining deep water drilling capability ❖ Sustainable revenue base via LNG & resources sector ❖ Key agreements in energy and resources sectors building momentum in diversif
Matrix Composites & Engineering — Investor Presentation (November 2021) on 6ix