Matrix Composites & Engineering Ltd · ASX:MCE
Matrix Composites & Engineering — H1 FY20 Earnings Presentation
16 slides from Matrix Composites & Engineering's earnings presentation, Feb 25, 2020
Slide 1: 2020 Half Year Results Presentation
2020 Half Year Results Presentation MATRIX COMPOSITES & ENGINEERING LTD Aaron Begley – Chief Executive Officer Brendan Cocks – Chief Financial Officer 25 February 2020
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: Overview
Overview Financial Operating Outlook • H1 FY20 revenue $22.6m, up 99.7% • Revenue growth driven by secured • Matrix targeting near term $50m on prior corresponding period. orders, largely for the oil and gas pipeline of competitive orders, • H1 FY20 underlying EBITDA of market. anticipated to be awa
Slide 4: Delivering on initiatives during H1 FY20
Delivering on initiatives during H1 FY20 Expectations for FY20 Progress Doubled revenue, compared to the prior corresponding period, from $11.3 Forecast revenue growth for H1 FY20 and maintain million to $22.6 million. This rise was driven by oil and gas activity, primarily core business. orders for
Slide 5: H1 FY20 Financial Results
H1 FY20 Financial Results CFO – BRENDAN COCKS
Slide 6: Key financial metrics
Key financial metrics 1H FY20 1H FY19 • 12 month revenue is now $49.5m (CY19) compared with $18.3m in the prior period Revenue $m 22.6 11.3 (CY18). Underlying EBITDA1 $m 1.2 (2.2) • Positive Underlying EBITDA of $1.2m, EBITDA $m (0.2) (1.9) representing first 12-month period of positive Net profit/(
Slide 7: Balance sheet
Balance sheet $m 31 Dec 19 30 Jun 19 • Expansion in trade receivables reflects Cash 20.1 9.4 increase in work delivered during the period. Trade and other receivables 13.7 8.3 Two projects were delivered late in the half Inventory 8.7 9.8 with approx $6m of progress payments to be received during th
Slide 8: Debt and banking
Debt and banking • Completed sale and leaseback deal for Henderson facility, in line $m 31 Dec 19 30 Jun 19 with original strategy. Cash 20.1 9.4 Term debt - - • Improved net cash position enables Matrix to take advantage of opportunities for future orders in re-emerging oil and gas Trade finance de
Slide 9: Cash flow
Cash flow $m 1H FY20 1H FY19 • Negative cash from operations of ($4.6m) EBITDA /(Loss) (0.2) (1.9) impacted by the completion of 2 projects in Receivables (5.4) (2.5) December with $6m to be received in the Trade Payables (0.6) - March 20 quarter for these completed projects. Inventory 1.4 (1.1) • S
Slide 10: Growth strategy and outlook
Growth strategy and outlook CEO – AARON BEGLEY
Slide 11: Our business
Our business CIVIL & OIL & GAS RESOURCES TRANSPORTATION DEFENCE INFRASTRUCTURE WORKING WITH OUR CUSTOMERS, MATRIX PROVIDES INNOVATIVE ENGINEERING SOLUTIONS USING ADVANCED MATERIALS AND COMPOSITES TO INDUSTRIES WHERE SAFETY AND RELIABILITY ARE CRITICAL. 11
Slide 12: Oil and gas market indicators remain positive
Oil and gas market indicators remain positive GLOBAL OFFSHORE SPENDING SET FOR STRONG GROWTH OFFSHORE COMMITMENTS INCREASING IN SOUTHEAST ASIA 400 14 300 Billion US$ 12 200 Indonesia 100 10 Malaysia Vietnam Billion USD 0 8 Brunei 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 13: Oil and gas operations
Oil and gas operations RISER BUOYANCY WELL CONSTRUCTION • Historically Matrix’s primary product – used in • A consumable item used in shale oil and gas deepwater drilling operations and had been production. impacted market downturn. • Shipped first orders for MaxR™ into the Middle • During the perio
Slide 14: Diversified operations
Diversified operations DEFENCE RESOURCES • Applying expertise in advanced materials and • Marketing significant capability to support the technology to develop products for new build Western Australian resources sector in LNG and sustainment programs (e.g. anechoic and mining operations. coatings, b
Slide 15: Outlook
Outlook • Substantial global and regional pipeline of offshore projects that have reached FID or are likely to reach FID in near term, despite some project slippages. SURF pipeline remains strong. • Matrix ideally positioned to take advantage of several major Australian projects in the LNG sector. •
Slide 16: Contact details
Contact details AARON BEGLEY BRENDAN COCKS Chief Executive Officer Chief Financial Officer T +61 8 9412 1200 T +61 8 9412 1200 E aaron.begley@matrixengineered.com E brendan.cocks@matrixengineered.com 16
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