17 slides from Matrix Composites & Engineering's investor presentation, Aug 23, 2018
Slide 1: 2018 Full Year Results Presentation
2018 Full Year Results Presentation MATRIX COMPOSITES & ENGINEERING Aaron Begley – Chief Executive Officer Brendan Cocks – Chief Financial Officer 23 August 2018
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 • Results in line with FY18 update on 6 August 2018. Financial • Revenue $19.5m and EBITDA loss $7.0m. • Revenue and earnings impacted by deferrals in the award of new oil and gas contracts, and revenue from civil and infrastructure projects moving into FY19. • Ended FY18 with gross cash po
Slide 4: Delivering against strategic priorities
Delivering against strategic priorities FY18 priority Status Expand into new products and markets away from FY18 oil and gas project revenue was largely from the cyclical oil & gas growth capex products. production, maintenance, and rectification projects. Continue commercialisation of LGSTM in the
Slide 5: FY2018 Financial Results
FY2018 Financial Results CFO – BRENDAN COCKS
Slide 6: Key financial metrics
Key financial metrics FY18 FY17 • Revenue and earnings impacted by Revenue $m 19.5 33.1 deferrals in the award of new oil and gas contracts. EBITDA $m (7.0) (15.6) • Also revenue from civil and Net profit/(loss) after tax $m (15.4) (19.5) infrastructure projects expected in H2 moved into FY19. Earni
Slide 7: Balance sheet
Balance sheet $m 30 Jun 18 31 Dec 17 30 Jun 17 • Maintained solid cash at bank Cash 10.6 11.6 16.6 position, with reduction Trade and other receivables 5.4 10.1 6.4 reflecting operating loss and Inventory 7.8 7.9 8.7 investment in growth initiatives. Property, plant & equipment 69.8 71.4 73.7 • Trad
Slide 8: Cash flow from operations
Cash flow from operations • Funded $1.5m Roto Molding Machine installation (commissioning planned for Sept 18) • Trade finance facility used to fund project related expenses during period 8
Slide 9: Growth strategy and outlook
Growth strategy and outlook CEO – AARON BEGLEY
Slide 10: Business structure targeting growth
Business structure targeting growth • Matrix business structure targets growth opportunities in five key areas: OIL & GAS TRANSPORTATION CIVIL & INFRASTRUCTURE RESOURCES DEFENCE • These key areas utilise Matrix’s existing core capabilities and assets in: o Advanced materials and technologies o Intel
Slide 11: Oil & Gas
Oil & Gas RISER BUOYANCY • Historically Matrix’s primary product – used in deepwater drilling operations and impacted by a sustained period of low capex, with low rig utilisation given subdued oil and gas prices. • Rig utilisation has increased. Aftermarket showing signs of increased activity in enq
Slide 12: Oil & Gas
Oil & Gas SURF (Subsea Umbilicals, Risers, and Flowlines) • Delivered several SURF packages during the year including a distributed ballast system for the Greater Enfield Project. • Quotations for SURF products have increased, underpinned by rise in industry activity. Several Australian projects hav
Slide 13: Oil & Gas
Oil & Gas LGS (Longitudinal Groove System) • System that reduces vortex induced vibration and drag in offshore projects, enhancing productivity. • Delivered $4m MarineShield LGS® project at a shallow water pipeline during FY18, outside of early target markets. • Successfully completed trial of LGS®
Slide 14: Transport & Civil and Infrastructure
Transport & Civil and Infrastructure TRANSPORT • Awarded $2.4m contract August 2018 to develop and manufacture four prototype advanced composite material bulk transport systems. • Potential second stage to manufacture 110 systems. • Leverages Matrix’s expertise in advanced technologies to deliver li
Slide 15: Resources and Defence
Resources and Defence RESOURCES • Leverage transport opportunities in large composite structures and capability, and apply to the resource sector. DEFENCE • Signed MoU with BAE Systems to be its composites partner on defence projects. • Follows the recent award to BAE Systems of a $35 billion contra
Slide 16: Outlook
Outlook • Improving outlook for the oil & gas sector so far in CY18 driving a rise in quotations for oil and gas production, maintenance and rectification jobs following new orders in Q4 FY18. • Sustained activity in unconventional onshore completions expected to drive volume for Matrix’s MaxR® rang
Slide 17: 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 17