Mattr Corp · TSX:MATR
Mattr — Shawcor — Investor Presentation (March 2021)
26 slides from Mattr's investor presentation, March 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION SHAWCOR
Slide 2: Statement Regarding Forward-Looking Information
Statement Regarding Forward-Looking Information This presentation contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify
Slide 3: Agenda
Corporate Today’s Overview 2020 In Review Positioning Takeaways CORPORATE OVERVIEW ▪ At a Glance ▪ Our Segments ▪ Our Diversified Portfolio 2020 IN REVIEW ▪ 2020 Company Response TODAY’S POSITIONING ▪ Revenue Mix ▪ Sum of the Parts ▪ Swinging to the Positive TAKEAWAYS ▪ Our Fundamentals ▪ Key Takeaw
Slide 4: At a Glance
Corporate At a Glance Overview Shawcor is a growth-oriented, global material sciences company with its three segments of Pipeline and Pipe Services, Composite Systems and Automotive and Industrial, serving the sectors of the Infrastructure, Energy $1.2B 3 18+ and Transportation markets. The Company
Slide 5: Our Segments
Corporate Our Segments Overview LEVERAGING OUR MATERIAL THROUGH OUR TRUSTED TO MAINTAIN OUR LEADING MARKET SCIENCE EXPERTISE TO: BRANDS: POSITION: ▪ Bredero Shaw Provide pipeline protection and inspection solutions as ▪ Lake Superior Consulting #1 Offshore Pipe Coating ▪ Shaw Pipeline Services well
Slide 6: Our Diversified Portfolio
Corporate Our Diversified Portfolio Overview LEGEND INFRASTRUCTURE TRANSPORTATION ENERGY Canada North America Global Power Electrical Water Automotive Fuel Transit Upstream Midstream Generation Utilities Composite Pipe Composite Tanks Heat Shrink & Cold Applied Products Engineered Wire & Cable Oilfi
Slide 7: 2020 in Review
Corporate 2020 in 2020 in Review Overview Review Substantial pullback in activity in 2020. SCL Performance vs. Global Economic Activity The dual impact of COVID-19 and oil price $450 110% declines resulted in: $412 $394 ▪ Automotive OEM shutdowns $400 100% ▪ Drilling and completions halted $350 $350
Slide 8: 2020 Company Response
Corporate 2020 in 2020 Company Response Overview Review Employee Delivering for Our Cost Capital Safety Customers Reductions Management → Implemented strict measures at facilities to prevent the spread of >4,250 >3,500km 22% 6 $24M $27M Tanks Sold Pipe Coated Salaried Controlled in Limited Reduction
Slide 9: Revenue Mix
Corporate 2020 in Today’s Revenue Mix Overview Review Positioning 2013 2020 9% 33% 30% 35% 18% 15% 17% 16% 26% 1% 9
Slide 10: Sum of the Parts: Segment EBITDA Profile
Corporate 2020 in Today’s Sum of the Parts Overview Review Positioning Segment EBITDA Profile Adjusted EBITDA %(1) Q4 2020 Pre-Downturn 2018 Actual (2) 2019 Actual 2020 Actual Actual Average (2) (3) Future Scenarios (4) SHAWCOR TOTAL 11% 9% 6% 14% 18% 9% 12% 15% PIPELINE & 6% 2% -1% 10% 22% 5% 10% 1
Slide 11: Sum of the Parts: Comparison of Trading Multiples
Corporate 2020 in Today’s Sum of the Parts Overview Review Positioning Segment EBITDA Profile Comparison of Trading Multiples - (EV/EBITDA) 2021(1) Consensus PIPELINE & PIPE SERVICES ▪ Oceaneering 8.6 ▪ Subsea 7 6.0 5 - 12x Offshore ▪ Transocean 10.6 Services ▪ Technip FMC 4.8 ▪ Oil States 12.3 COMP
Slide 12: Swinging to the Positive
Corporate 2020 in Today’s Swinging to the Positive Overview Review Positioning Strengthening Base Business Forward Movement in Large Strength in Work Secured Capital Projects Backlog, Bid and Budgetary as of Q4 2020 → Resilient demand for retail fuel → Infrastructure stimulus $ 1,489 M investments →
Slide 13: Our Fundamentals
Corporate 2020 in Today’s Our Fundamentals Overview Review Positioning Takeaways The Need: The Need: The Need: The Need: To move energy and water To manage and optimize To improve energy security, To protect the physical over distances to match assets across the entire reliable supply, and environme
Slide 14: Key Takeaways
Corporate 2020 in Today’s Key Takeaways Overview Review Positioning Takeaways Lean Organization with Leading Market Position Diversified Portfolio Resilient Base Business with Substantial Torque Potential Long term Fundamentals Ability to Execute 14
Slide 15: Shawcor
INVESTOR PRESENTATION SHAWCOR
Slide 16: Supplementary Information
SUPPLEMENTARY INFORMATION 16
Slide 17: Our Brand
Our Brand Incident and Injury Free (IIF) Depth in materials science Proven track record in all health and safety protocols regions Over 155 patents, 86 patents Product and service quality to pending, 51 proprietary International skilled workforce exceed expectations formulations Projec
Slide 18: Our Commitment to ESG
Our Commitment to ESG Shawcor's operating and leadership practices fully embrace ESG (Environmental, Social and Governance) ideals and principles. Shawcor continues to evolve as an organization to better reflect our enduring values of Integrity, Technology and Execution and to ensure we are position
Slide 19: Segment Deep Dive
Segment Deep Dive ae PIPELINE & PIPE COMPOSITE AUTOMOTIVE & SERVICES SYSTEMS INDUSTRIAL 19
Slide 20: Pipeline and Pipe Services Offering
Pipeline and Pipe Services Offering PROTECTIVE COATINGS FLOW ASSURANCE INTEGRITY MANAGEMENT ENGINEERING SERVICES 20
Slide 21: Pipeline and Pipe Services Overview
Pipeline and Pipe Services Overview International and offshore projects and footprint optimization expected to drive improved profitability Energy transition from coal to gas Lower cost offshore development 2020 FINANCIAL PERFORMANCE Aging infrastructure replacement 2020 2020 SCL Revenue SCL A
Slide 22: Composite Systems Offering
Composite Systems Offering COMPOSITE TANKS COMPOSITE PIPE POLYETHYLENE PIPE OILFIELD ASSET MANAGEMENT 22
Slide 23: Composite Systems Overview
Composite Systems Overview Growing acceptance and established base business will drive high growth Continued conversion to composites 2020 FINANCIAL PERFORMANCE Aging infrastructure replacement Oil and gas development 2020 2020 SCL Revenue SCL Adj. EBITDA $1,178M $74M Global environmental re
Slide 24: Automotive and Industrial Offering
Automotive and Industrial Offering ENGINEERED WIRE & CABLE COLD SHRINK TECHNOLOGY HEAT SHRINK TECHNOLOGY APPLICATION EQUIPMENT 24
Slide 25: Automotive and Industrial Overview
Automotive and Industrial Overview Stable outlook with growth prospects in core markets Global automotive production 2020 FINANCIAL PEFORMANCE Electronic content growth Aerospace and defense investments 2020 2020 SCL Revenue SCL Adj. EBITDA $1,178M $74M Non-residential industrial constructio
Slide 26: 2020 Sale of Products Business
2020 Sale of Products Business On December 23, 2020, Shawcor announced the sale of its Pipeline Performance Products business (the “Products business”) to Seal For Life Industries for USD $91.5 million Obtained full value (13.0x multiple on 2019 EBITDA) Removed complexity The sale of the bus