Magellan Aerospace Corporation · TSX:MAL
Magellan Aerospace — Shareholder Meeting (2021)
25 slides from Magellan Aerospace's shareholder meeting presentation, 2021
Slide 1: 2021 AGM
2021 AGM 1
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's Welcome and Remarks
N. MURRAY EDWARDS CHAIRMAN OF THE BOARD OF DIRECTORS » Welcome and Remarks » Receipt of Financial Statements for 2020 » Election of Directors » Appointment of Auditors » Other Business Annual General Meeting 2021 3
Slide 4: Highlights for 2020
PHILLIP C. UNDERWOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER HIGHLIGHTS FOR 2020 » Financial Summary » Business Highlights » Strategic Summary Annual General Meeting 2021 4
Slide 5: Our response to COVID-19
MAGELLAN AEROSPCE 2020 COVID-19 Our response to COVID-19 » Prioritized the health and safety of our employees » Support our employees and communities » Mitigated costs, restructured and adapted our operations » Maintained liquidity and strengthened our balance sheet The Magellan business model remai
Slide 6: Financial Summary
FINANCIAL SUMMARY » Revenue » Gross Profit » EBITDA » Debt and Interest Expense » Capital Expenditure » Shareholder Return Annual General Meeting 2021 6
Slide 7: Financial Summary: Revenue
FINANCIAL SUMMARY REVENUE $1,200 Millions $1,000 $800 $600 $400 $200 $- 2016 2017 2018 2019 2020 Annual General Meeting 2021 7
Slide 8: Financial Summary: Gross Profit
FINANCIAL SUMMARY GROSS PROFIT $180 20.0% Gross Profit as a % of Sales Millions 18.0% $150 16.0% 14.0% $120 12.0% $90 10.0% 8.0% $60 6.0% 4.0% $30 2.0% $- 0.0% 2016 2017 2018 2019 2020 Annual General Meeting 2021 8
Slide 9: Financial Summary: EBITDA
FINANCIAL SUMMARY EBITDA $180 21.0% EBITDA as a % of Sales Millions 18.0% $150 15.0% $120 12.0% $90 9.0% $60 6.0% $30 3.0% $- 0.0% 2016 2017 2018 2019 2020 2020 Adjusted Annual General Meeting 2021 9
Slide 10: Financial Summary: Debt and Interest Expense
FINANCIAL SUMMARY DEBT AND INTEREST EXPENSE Debt Interest Expense $150 $8 Millions Millions $120 $6 $90 $4 $60 $2 $30 $- $- 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 Annual General Meeting 2021 10
Slide 11: Financial Summary: Capital Expenditure
FINANCIAL SUMMARY CAPITAL EXPENDITURE Millions $70 $60 $50 $40 $30 $20 $10 $- 2016 2017 2018 2019 2020 Annual General Meeting 2021 11
Slide 12: Financial Summary: Shareholder Return
FINANCIAL SUMMARY SHAREHOLDER RETURN 0.45 Annual Dividend per share 0.40 0.35 0.30 0.25 0.20 2016 2017 2018 2019 2020 Annual General Meeting 2021 12
Slide 13: Business Overview
BUSINESS OVERVIEW » Global Presence » Industry Update » Key Contract Announcements » 2020 Revenues by Customer and Segment Annual General Meeting 2021 13
Slide 14: Business Overview: Global Presence
BUSINESS OVERVIEW GLOBAL PRESENCE Canada U.S. Europe India Headquarters: Number of Operating Magellan Mississauga, Canada Divisions: Employees: TSX: MAL 19 3,400 Annual General Meeting 2021 14
Slide 15: Industry Update
2020 Industry U oe WE AEROSPACE
Slide 16: Market Overview - Commercial
INDUSTRY UPDATE MARKET OVERVIEW - COMMERCIAL Global daily flights dropped below Airline losses worldwide totaled US Aircraft and engine build rates in 20% of 2019 levels in Q2-2020 due $118 billion in 2020 (IATA). 2020 were down by an average of to COVID-19. 35%. Global flights returned to 63.5% vs
Slide 17: Market Overview - Defence
INDUSTRY UPDATE MARKET OVERVIEW - DEFENCE Despite the contraction in the world economy during 2020 Global defense spending is expected to rise by 2.7 due to COVID-19, the defence market continues to grow. percent in 2021 and by an average of 2.4% annually through 2025. Experts expect slower growth i
Slide 18: Key Contracts Announcements
2020 Key Contracts Announcements 18
Slide 19: Key Contracts Announcements 2020
KEY CONTRACTS ANNOUNCEMENTS 2020 Magellan announced strategic contracts/MOUs in key sectors including: Boeing Ge AVIATION CANADA AVIO S.P.a RAYTHEON 19
Slide 20: 2020 Revenues by Customer and Segment
BUSINESS OVERVIEW 2020 REVENUES BY CUSTOMER AND SEGMENT Aerostructures Aeroengines and Repair and Overhaul Casting Specialty Products and Other Commercial 46% Defense 54% Annual General Meeting 2021 20
Slide 21: Strategic Summary
STRATEGIC SUMMARY » Strategic Objectives » Strategic Goals Annual General Meeting 2021 21
Slide 22: 2021-2025 Objectives
MAGELLAN AEROSPACE 2020 2021 – 2025 OBJECTIVES STRATEGY Immediate action to protect our Right size and reduce operational Re-evaluation of Magellan business costs strategic plan Protect Restructure Strategize » COVID workplace risk assessment & » Reduction of roles across the » Ensure global facilit
Slide 23: 2021-2025 Strategic Goals
MAGELLAN AEROSPACE 2020 2021 – 2025 STRATEGIC GOALS STRATEGY Grow Magellan as the supplier of choice to the global Vision aerospace industry & METHODOLOGY Mission Enhance overall financial performance Strategic Goals Solid Balance Sheet o2 Functional Enablers Zero Defects & 100% On Time Division Act
Slide 24: 2020 Achievements and Key Priorities
MAGELLAN AEROSPACE 2020 SUMMARY 2020 ACHIEVEMENTS and KEY PRIORITIES Established health and safety protocols for keeping our employees safe Balance Sheet remains strong, allowing us to weather the COVID-19 crisis Progressed our zero defects and 100% on-time delivery programs. Secured signifi
Slide 25: Thank-you
MAGELLAN Thank-you Annual General Meeting 2021