Magellan Aerospace Corporation · TSX:MAL
Magellan Aerospace — Shareholder Meeting (2024)
22 slides from Magellan Aerospace's shareholder meeting presentation, 2024
Slide 1: Magellan Aerospace 2024 AGM
MAGELLAN 2024 AGM CH aAEROSPACE
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 of the Board: Welcome and Remarks
N. MURRAY EDWARDS CHAIRMAN OF THE BOARD OF DIRECTORS » Welcome and Remarks » Receipt of Financial Statements for 2023 » Election of Directors » Appointment of Auditors » Other Business Annual General Meeting 2024 3
Slide 4: President and CEO: Financial Summary, Business Highlights, Strategic Summary
PHILLIP C. UNDERWOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER » Financial Summary » Business Highlights » Strategic Summary Annual General Meeting 2024 4
Slide 5: Financial Summary: Revenue, Gross Profit, EBITDA, Capital Expenditure
» Revenue » Gross Profit » EBITDA » Capital Expenditure Annual General Meeting 2024 5
Slide 6: Financial Summary: Key Financial Metrics
FINANCIAL SUMMARY KEY FINANCIAL METRICS Revenue Gross Profit Millions Millions $1,200 $180 21.0% Gross Profit as a % of Revenues $1,000 $150 18.0% $800 $120 15.0% 12.0% $600 $90 9.0% $400 $60 6.0% $200 $30 3.0% $- $- 0.0% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 EBITDA Capital Spend 6.0% Mi
Slide 7: Financial Summary: Key Financial Metrics (Inventory, Contract Assets)
FINANCIAL SUMMARY KEY FINANCIAL METRICS Inventory Contract Assets Millions Millions $80 $250 $200 $60 $150 $40 $100 $20 $50 $- $- 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Annual General Meeting 2024 7
Slide 8: Global Presence, Industry Update, Key Contract Announcements
» Global Presence » Industry Update » Key Contract Announcements » 2023 Revenues by Customer and Segment Annual General Meeting 2024 8
Slide 9: Global Business Units
GLOBAL BUSINESS UNITS 3,850 Global Population NORTH AMERICA EUROPE INDIA Winnipeg, MB Wrexham, UK Bangalore (Magellan) Kitchener, ON Greyabbey, UK Tumkur (Magellan) Mississauga, ON Blackpool, UK Belgaum (API) Haley, ON Kelbrook, UK Headquarters: New York, NY (x3) Mielec, Poland Mississauga, ON Haver
Slide 10: Industry Update
2024 Industry Update Annual General Meeting 2024 10
Slide 11: Industry Update: Market Overview - Commercial
INDUSTRY UPDATE MARKET OVERVIEW - COMMERCIAL Commercial air travel Domestic air travel Strong demand driving recovery continued in 6.7% above pre- record order backlogs 2023 pandemic levels in 2023: IATA reported International air travel Airbus - 8,598 aircraft industry-wide travel 94.5% of pre- Boe
Slide 12: Industry Update: Market Overview - Defence
INDUSTRY UPDATE MARKET OVERVIEW - DEFENCE Robust demand due to rising US FY 2024 defence budget is 3.2% geopolitical tensions higher than FY 2023, and 13.4% higher than 2022 Defence readiness and fleet modernization brought to forefront US $43.6 billion allotted to aircraft procurement Europe has se
Slide 13: Key Contracts Announcements
2023 Key Contracts Announcements 13
Slide 14: Key Contracts Announcements 2023: Airbus
KEY CONTRACTS ANNOUNCEMENTS 2023 Magellan announced strategic contracts in key sectors including: AIRBUS 14
Slide 15: Business Overview: 2023 Revenues by Customer and Segment
BUSINESS OVERVIEW 2023 REVENUES BY CUSTOMER AND SEGMENT 8% 2% 3% 3% Aerostructures 3% 13% 6% 25% Aeroengines and Repair and Overhaul Casting 8% 55% 24% Specialty Products and Other 10% 18% 10% 11% Commercial 37% Airbus Others Boeing Raytheon Technologies Defense General Electric BAE 63% Canadian For
Slide 16: Challenges & Opportunities, Strategic Goals
» Challenges & Opportunities » Strategic Goals Annual General Meeting 2024 16
Slide 17: Strategy: Challenges and Opportunities
MAGELLAN AEROSPACE STRATEGY CHALLENGES AND OPPORTUNITIES CHALLENGES IMPACT RESULTS & OPPORTUNITIES Utility costs significantly increased Rehabilitating customer contracts HYPERINFLATION - CPI at record levels Realistic labour agreements - Workforce expectations Pre-pandemic revenue – ($137m, 13%
Slide 18: Strategy: Challenges and Opportunities (Supply Chain, Workforce)
MAGELLAN AEROSPACE STRATEGY CHALLENGES AND OPPORTUNITIES CHALLENGES IMPACT RESULTS & OPPORTUNITIES - Shortfalls in forgings / raw materials - Failing suppliers impacting our quality and Numerous products now dual sourced SUPPLY CHAIN delivery Strategic suppliers DISRUPTION - Dual sourcing to pro
Slide 19: Strategy: Strategic Goals
MAGELLAN AEROSPACE STRATEGY STRATEGIC GOALS Grow Magellan as the supplier of choice STRATEGY to the global aerospace industry Strategic Goals Strategic Enablers Business growth in selected markets Vision Grow a balanced portfolio with customers • Year on year revenue and profit growth Nurture an own
Slide 20: Environmental Social Governance: Our Commitment
ENVIRONMENTAL SOCIAL GOVERNANCE OUR COMMITMENT • GHG reduction, water conservation and waste reduction targets well established • Corporate Sustainability Policy launched, posted on Magellan website • In 2023, all sites certified to ISO 14001 environmental standard • On track for Health & Safety ISO
Slide 21: Summary: 2023 Achievements and Key Areas of Focus
MAGELLAN AEROSPACE SUMMARY 2023 ACHIEVEMENTS AND KEY AREAS OF FOCUS 2023 Achievements Key Areas of Focus • Significant revenue and profit growth • Continued focus on profitable growth • Balance Sheet remains strong • Prioritize working capital improvements • Progressed our zero defects programs • Fo
Slide 22: Thank You
AEROSPACE MAGELLAN THANK-YOU