Magellan Aerospace Corporation · TSX:MAL
Magellan Aerospace — Shareholder Meeting (June 2022)
26 slides from Magellan Aerospace's shareholder meeting presentation, June 2022
Slide 1: 2022 AGM
2022 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 Meeting Agenda
N. MURRAY EDWARDS CHAIRMAN OF THE BOARD OF DIRECTORS » Welcome and Remarks » Receipt of Financial Statements for 2021 » Election of Directors » Appointment of Auditors » Other Business Annual General Meeting 2022 3
Slide 4: Highlights for 2021
PHILLIP C. UNDERWOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER HIGHLIGHTS FOR 2021 » Financial Summary » Business Highlights » Strategic Summary Annual General Meeting 2022 4
Slide 5: Financial Summary
FINANCIAL SUMMARY » Revenue » Gross Profit » EBITDA » Debt and Interest Expense » Capital Expenditure » Shareholder Return Annual General Meeting 2022 5
Slide 6: Financial Summary: Revenue
FINANCIAL SUMMARY REVENUE $1,200 Millions $1,000 $800 $600 $400 $200 $- 2017 2018 2019 2020 2021 Annual General Meeting 2022 6
Slide 7: 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% 2017 2018 2019 2020 2021 Annual General Meeting 2022 7
Slide 8: Financial Summary: EBITDA
FINANCIAL SUMMARY EBITDA $180 20.00% EBITDA as a % of Sales Millions 18.00% $150 16.00% 14.00% $120 12.00% $90 10.00% 8.00% $60 6.00% 4.00% $30 2.00% $- 0.00% 2017 2018 2019 2020 2021 Annual General Meeting 2022 8
Slide 9: Financial Summary: Debt
FINANCIAL SUMMARY DEBT Debt Millions $60 $45 $30 $15 $- 2017 2018 2019 2020 2021 Debt includes AR securitization, property mortgage and other loans Annual General Meeting 2022 9
Slide 10: Financial Summary: Capital Expenditures
FINANCIAL SUMMARY CAPITAL EXPENDITURES Millions $70 $60 $50 $40 $30 $20 $10 $- 2017 2018 2019 2020 2021 Annual General Meeting 2022 10
Slide 11: Shareholder Returns - Dividends
FINANCIAL SUMMARY SHAREHOLDER RETURNS - DIVIDENDS 0.45 Annual Dividend per share 0.40 0.35 0.30 0.25 0.20 2017 2018 2019 2020 2021 Annual General Meeting 2022 11
Slide 12: Business Overview
BUSINESS OVERVIEW » Global Presence » Industry Update » Key Contract Announcements » 2021 Revenues by Customer and Segment Annual General Meeting 2022 12
Slide 13: 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 2022 13
Slide 14: Industry Update
2022 Industry Update Annual General Meeting 2022 14
Slide 15: Market Overview - Commercial
INDUSTRY UPDATE MARKET OVERVIEW - COMMERCIAL The global air travel Commercial air travel Single-aisle aircraft industry has volumes improved in production rates are experienced 2021 over 2020. increasing. unprecedented volatility over the last two years Global domestic travel A320 build rate to due
Slide 16: Market Overview - Defence
INDUSTRY UPDATE MARKET OVERVIEW - DEFENCE The Russian invasion of Ukraine is The U.S. is maintaining its strategy prompting countries to increase to modernize the air force and army, defence spending despite pandemic which includes next generation related deficits. aircraft and engine technologies.
Slide 17: Key Contracts Announcements
2021 Key Contracts Announcements 17
Slide 18: Key Contracts Announcements 2021
KEY CONTRACTS ANNOUNCEMENTS 2021 Magellan announced strategic contracts/MOUs in key sectors including: RAYTHEON Boeing AIRBUS SAFRAN GE AVIO S.P.a 18
Slide 19: 2021 Revenues by Customer and Segment
BUSINESS OVERVIEW 2021 REVENUES BY CUSTOMER AND SEGMENT Aerostructures Aeroengines and Repair and Overhaul Casting Specialty Products and Other 48% 31% Commercial Defense 52% 69% Annual General Meeting 2022 19
Slide 20: Strategic Summary
STRATEGIC SUMMARY » Strategic Objectives » Strategic Goals Annual General Meeting 2022 20
Slide 21: 2021-2025 Objectives Strategy
MAGELLAN AEROSPACE 2020 2021 – 2025 OBJECTIVES STRATEGY Immediate action to Right size and reduce Re-evaluation of Magellan strategic plan protect our business operational costs Protect Restructure Strategize and Execute » COVID workplace risk » Reduction of roles across the » Grow Magellan as the s
Slide 22: 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 23: ESG Framework
ENVIRONMENT, SOCIAL, GOVERNANCE ESG FRAMEWORK Sustainability ESG Strategy Commitment Social Environment Governance Risk Business Management Integration Annual General Meeting 2022 23
Slide 24: GHG Reduction and Water Conservation
ENVIRONMENT, SOCIAL, GOVERNANCE GHG REDUCTION and WATER CONSERVATION Magellan GHG Commitment Magellan Water Conservation Commitment » 55% GHG reduction by 2030 against a 2008 baseline » 10% consumption reduction as a % of sales by 2025 » Scope 1 and 2 emissions against a 2015 baseline » In line with
Slide 25: 2021 Achievements and Key Priorities
MAGELLAN AEROSPACE 2021 SUMMARY 2021 ACHIEVEMENTS and KEY PRIORITIES Continued health and safety protocols for keeping our employees safe Balance Sheet remains strong Progressed our zero defects programs. Secured significant contract renewals. Continue to restructure in line with our strat
Slide 26: Thank-you
MAGELLAN Thank-you Annual General Meeting 2022