Matrix Composites & Engineering Ltd · ASX:MCE

Matrix Composites & Engineering — FY2023 Earnings Presentation

18 slides from Matrix Composites & Engineering's earnings presentation, Aug 31, 2023

  1. Slide 1: 2023 Full Year Results Presentation

    2023 FULL YEAR RESULTS PRESENTATION Aaron Begley - CEO Brendan Cocks - CFO 31 August 2023 WWW.MATRIXENGINEERED.COM

  2. 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

  3. Slide 3: Matrix's Growth Proposition

    THE POWER OF ADVANCED MATERIALS MATRIX’S GROWTH PROPOSITION Strong revenue expansion Recurrent accretive revenue delivered; future growth via Corrosion Technologies secured sustainment work Strengthening subsea market, Rising level of renewable, capitalising on oil & gas clean energy work with recov

  4. Slide 4: Strong Growth Momentum

    STRONG GROWTH MOMENTUM FINANCIAL OPERATIONAL OUTLOOK GROWTH • Revenue $47.2m up 65% on FY22. • Subsea buoyancy revenue more • Growth trajectory to continue in FY24. than double FY22. • Secured revenue for FY24 from Subsea • Strong 2H23 around 3x 1H23 revenue, busiest the plant has been since 2016. •

  5. Slide 5: FY23 Financial Results

    FY23 FINANCIAL RESULTS CFO – BRENDAN COCKS 5

  6. Slide 6: Key Financial Metrics

    KEY FINANCIAL METRICS FY23 FY22 Revenue $m 47.2 28.6 • Strong revenue growth up 65% on FY22. Underlying EBITDA1 $m 0.2 (2.3) • Increased activity in traditional oil & gas market gaining traction. EBITDA $m 14.3 (0.1) • Return to profit with underlying EBITDA of $2.5m in 2H FY23. Net profit/(loss) af

  7. Slide 7: Strong Revenue Growth

    STRONG REVENUE GROWTH Revenue $47.2m • Revenue growth momentum underpinned by strengthening oil & gas market. $28.6m $17.4m • Significant recent uplift with second half FY23 up100% on full year FY21 and up 23% on full year FY22. FY21 FY22 FY 23 • Subsea buoyancy more than double to $36.4m in FY23, w

  8. Slide 8: Balance Sheet

    BALANCE SHEET $m 30 Jun 23 30 Jun 22 Cash and Term Deposits 20.0 7.6 • Significantly strengthened balance sheet supporting ramp up Trade and other receivables 21.7 3.5 in activity and opportunity pipeline. Inventory 5.9 6.5 • Increased cash balance, including successful $20.2m equity Other assets 0.

  9. Slide 9: Cash Flow from Operations

    CASH FLOW FROM OPERATIONS $m FY23 FY22 Underlying EBITDA /(Loss) 0.2 (2.3) • Operating cash outflow largely second half driven from higher working capital to support increased order book Receivables (18.2) 1.8 into FY24. Trade Payables 1.6 (0.6) • Key impact of spike in trade debtors and timing of I

  10. Slide 10: Matrix Outlook Growth

    MATRIX OUTLOOK GROWTH CEO – AARON BEGLEY 10

  11. Slide 11: Three Business Pillars

    THREE BUSINESS PILLARS CORE TRADITIONAL EMERGING SUBSEA CORROSION ADVANCED TECHNOLOGIES MATERIALS SURF, deep water drilling and Growing anti-corrosion Advanced composite well construction. Energy coating, application material solutions for transition opportunity with equipment and technical Renewabl

  12. Slide 12: Subsea: Momentum Building Our Growing Quotation Pipeline

    APPLICATIONS ACROSS OIL & GAS AND RENEWABLES SUBSEA FOCUS – MOMENTUM BUILDING OUR GROWING QUOTATION PIPELINE • Buoyancy (syntactic foam) for: • Deepwater drilling • Subsea umbilicals, risers and flowlines (SURF) OPPORTUNITY • Offshore floating wind turbines and infrastructure IDENTIFICATION +$250m •

  13. Slide 13: Subsea: Momentum Building

    APPLICATIONS ACROSS OIL & GAS AND RENEWABLES SUBSEA FOCUS – MOMENTUM BUILDING • Strong industry forecast out to 2027. With 1 to 2 year lag between Primary contract award and Matrix buoyancy scope production, expectation is SURF buoyancy market will be strong for the rest of the decade. • Matrix has

  14. Slide 14: Floating Offshore Wind

    SYNTACTIC FOAM: SUPPORTING ENERGY TRANSITION FLOATING OFFSHORE WIND • 26.1 GW of new floating wind capacity to be added between 2022 and 2032 • Global GW CAGR of +78% forecast to 2027, then +47% to 2032 • Growth anticipated to begin in 2024 • Growth in regional markets Data courtesy GWEC Market Inte

  15. Slide 15: Corrosion Technologies

    STRONGER ● LIGHTER ● SMARTER CORROSION TECHNOLOGIES TECHNOLOGY SOLUTIONS • Humidur® coatings • Composite repairs • Equipment • Rotolining: Thermoplastic lining LOCAL RESOURCES SECTOR • LNG • Brownfield developments • Operational maintenance KEY CLIENTS • Woodside, Impex, Rio Tinto, Alcoa 15

  16. Slide 16: Advanced Materials

    STRONGER ● LIGHTER ● SMARTER ADVANCED MATERIALS TECHNOLOGY SOLUTIONS • Syntactic foam for Unmanned Underwater Vehicles • Steel replaced and advanced composites applications • Development and supply of manufactured components for electrolyser production AUSTRALIAN INDUSTRY SECTORS • Defence • Resourc

  17. Slide 17: FY24 Growth Outlook

    FY24 GROWTH OUTLOOK • Strong base of ~$55m secured revenue for FY24 already in place from Subsea business alone. • Expected recurring revenue from Corrosion Technologies and Advanced Materials of +$10m p.a. with opportunity to grow. • High activity in Subsea markets and active quotation pipeline. Ne

  18. Slide 18: Contact

    CONTACT Aaron Begley Chief Executive Officer T +61 8 9412 1200 E: aaron.begley@matrixengineered.com Brendan Cocks Chief Financial Officer T +61 8 9412 1200 E: brendan.cocks@matrixengineered.com WWW.MATRIXENGINEERED.COM

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