Mattr Corp · TSX:MATR
Mattr — Shawcor — Investor Presentation (November 2022)
27 slides from Mattr's investor presentation, November 2022
Slide 1: Investor Presentation November 2022
Investor Presentation November 2022
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", "w ill", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identif
Slide 3: Shawcor Delivers the Infrastructure Technology Our World Needs
Shawcor Delivers the Infrastructure Technology Our World Needs Shawcor is a growth-oriented, global material sciences company serving the Infrastructure, Energy $1.2B 2022 Q3 LTM ANNUAL REVENUE 4,200+ EMPLOYEES WORLDWIDE Transportation and Water markets. QUALITY The Company operates through a global
Slide 4: Our Commitment to ESG
Our Commitment to ESG Shawcor’s operating and leadership practices fully embrace ESG ideals and principles OUR SUPPORTING OUR CUSTOMERS PERFORMANCE TO DATE “ CCUS Project The beauty of the tank is that it’s a Water Tank Installation complete storage system that just SCOPE 1&2 GHG EMISSIONS 2030 50%
Slide 5: Shawcor Offerings
Shawcor Offerings COMPOSITE SYSTEMS AUTOMOTIVE & INDUSTRIAL PIPELINE & PIPE SERVICES Primary Offerings Primary Offerings Primary Offerings FlexPipe PREMIUM ShawFlex Bredero Shaw SPOOLABLE ENGINEERED COMPOSITE PIPE WIRE & CABLE DIFFERENTIATED PROTECTIVE & FLOW ASSURANCE Xerxes Bredero Shaw COATINGS F
Slide 6: Pipeline and Pipe Services Sale – Why and Why Now?
Pipeline and Pipe Services Sale – Why and Why Now? (C$ mm) 2,000 25.0% 1,800 1,600 20.0% Fundamentals underpinning a sale now: 1,400 Adj. EBITDA Revenue 1,200 15.0% 1,000 800 10.0% ✓ Substantial cost reductions lowered 600 400 5.0% breakeven point in historically low market 200 conditions 0 0.0% 201
Slide 7: Positioned to Address Critical Macro Trends
Positioned to Address Critical Macro Trends 1. AGING 2. POPULATION INFRASTRUCTURE MOVEMENT New infrastructure needed Replacements needed for to support population infrastructure at end of life growth and movement ▪ Tank Replacements ▪ Communication Network ▪ Utility Upgrades Buildout ▪ Pipeline Refu
Slide 8: Why the Right Infrastructure and Industrial Solutions Matter
Why the Right Infrastructure and Industrial Solutions Matter S ha w c o r ha s d i f f e r e nt i a t e d , t e c hni c a l s o l ut i o ns t o s up p o r t i nd us t r y t r e nd s a s : 50 % 2.6 T WHER E IT HUR TS MO S T $ T e l e c o mmuni c a t i o ns OF T OT A L V E HIC LE C OST IS E X PE C T E
Slide 9: Creating a Simplified, Less Volatile Higher Value Portfolio
Creating a Simplified, Less Volatile Higher Value Portfolio The A&I and Composite businesses have grown at a combined 7.0% CAGR since 2019, despite the FY 2019 REVENUE 2022 Q3 YTD REVENUE economic challenges of COVID-19 Strategic Review Infrastructure & Industrial Revenue 80% 78% 73% 63% Divested or
Slide 10: Prioritizing Higher Growth with Higher EBITDA Margins
Prioritizing Higher Growth with Higher EBITDA Margins (C$ mm) Adj. EBITDA Margin Revenue and Adj. EBITDA 30% $2,000 20% $1,489 9.5% $1,500 9.2% 9.2% $1,178 $1,143 $1,176 10% 6.3% $1,000 0% $500 2019 2020 2021 Q3 2022 $136 $74 $106 $112 -10% LTM $0 2019 2020 2021 Q3 2022 LTM Composite Automotive Pipe
Slide 11: Cumulative Value of Strategic Actions
Cumulative Value of Strategic Actions Actions taken since the beginning of 2020 resulted in the following, as at September 30, 2022: 9 Pipe Coating Facility Exits Increase in Long-term Debt Scope 1 & 2 Estimated Fixed Infrastructure and 7 Divestitures/Closures Removed $203M Emissions Reduced ~30k to
Slide 12: Capital Structure & Allocation
Capital Structure & Allocation Reduced Net-debt-to-Adjusted EBITDA to below 1.5x Supporting high return organic growth opportunities with appropriate CAPEX and working capital (C$ mm) 3.9x (C$ mm) $55-$65* 3.1x Will continue to 2.1x lower Net Debt over $45 1.5x $525 $506 time $426 $24 $25 $347 $26 $
Slide 13: Robust Backlog, Bid & Budgetary
Robust Backlog, Bid & Budgetary Q3 2022 Q2 2022 Total Backlog rose 72% to highest level since $465 $80 2014 as industrial and infrastructure demand remains strong and offshore pipeline construction projects are captured < 12 months < 12 months Bid & Budgetary strength continues to support $1,010 $77
Slide 14: Shawcor Technology – The Heart of Our Competitive Advantage
Shawcor Technology – The Heart of Our Competitive Advantage Shawcor’s technology advantage is based on industry-leading material science that draws on deep partnerships with researchers, universities and customers. As at year end 2021: HydroChainTM Large Diameter $8M Record quarterly revenue in Q3-2
Slide 15: Business Segments
Business Segments INVESTOR PRESENTATION NOVEMBER 2022 — 15 ENGINEERING A BETTER FUTURE
Slide 16: Composite Systems
Composite Systems Q3-2022 LTM Q3-2022 Revenue by Market Revenue $493.4 M Infrastructure Oil & Gas, & Industrial, 48% 16.8% 52% Margin Adj. EBITDA $83.1 M INVESTOR PRESENTATION NOVEMBER 2022 — 16 ENGINEERING A BETTER FUTURE
Slide 17: Composite Systems – Xerxes
Sample Customers Composite Systems Xerxes Shawcor manufactures composite underground storage tanks which serve liquid fuel and water and wastewater end markets Sample Competitors INDUSTRY TRENDS ▪ 77% of fuel marketers expect liquid fuel sales volumes to rise over the coming 10 years ▪ Reuters sugge
Slide 18: Xerxes - Liquid Fuels Opportunity – Two Distinct Segments
Wawa CEO quoted in the April 15, 2022 Business Journal - Charting its “most aggressive growth” in the company’s history, going from 965 stores to Composite Systems 1800 stores by 2030, expanding into new markets Xerxes - Liquid Fuels Opportunity – Two Distinct Segments TANKS FOR "NEW TO INDUSTRY" ST
Slide 19: Xerxes and HydroChain – Water Management
Composite Systems Xerxes and Hydrochain™ – Water Management U.S. Non-Residential Construction Put In Place Growth Observed in Water Management Revenue 1,000,000 800,000 CAGR 54% 600,000 400,000 200,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source : US Census 2022 U.S. New Housing Starts 2021
Slide 20: Composite Systems – FlexPipe
Sample Customers Composite Systems FlexPipe Shawcor offers a variety of flexible, spoolable composite pipe solutions, predominantly for North American onshore oil & gas Sample Competitors gathering lines INDUSTRY TRENDS ▪ US FY 2022 expected well count roughly +13% YoY; Canada +32% YoY DIFFERENTIATO
Slide 21: Automotive & Industrial
Automotive & Industrial Q3-2022 LTM Q3-2022 Revenue Revenue by Market $300.3 M Automotive 27% 18.7% Industrial & Margin Other Infrastructure 73% Adj. EBITDA $56.2 M INVESTOR PRESENTATION NOVEMBER 2022 — 21 ENGINEERING A BETTER FUTURE
Slide 22: Automotive & Industrial – ShawFlex
Sample Customers & End Users Automotive & Industrial ShawFlex Sample Competitors Shawcor excels as a niche specification-based supplier through developing and manufacturing innovative custom wire and cable products under the ShawFlex brand INDUSTRY TRENDS ▪ Ontario is investing $25 billion over 2016
Slide 23: Automotive & Industrial – DSG-Canusa
Sample Customers & End Users Automotive & Industrial DSG-Canusa Shawcor offers a full range of high-quality heat & cold shrink cable Sample Competitors accessories for Automotive, ADM, Communications, Electrical Utility, Electronic and Oil and Gas markets INDUSTRY TRENDS ➢ DSG-Canusa’s automotive ▪
Slide 24: Pipeline & Pipe Services
Pipeline & Pipe Services Q3-2022 LTM Q3-2022 Revenue by Market Revenue $386.9 M North America Midstream 28% International & Offshore 61% North America -3.3% Margin Upstream 11% Adj. EBITDA $(12.9) M INVESTOR PRESENTATION NOVEMBER 2022 — 24 ENGINEERING A BETTER FUTURE
Slide 25: Pipeline & Pipe Services – Pipeline Performance Group
Sample Customers Pipeline & Pipe Services Pipeline Performance Group Shawcor provides highly technical interior and exterior pipe coating solutions, predominantly for offshore pipeline installations Sample Competitors INDUSTRY TRENDS ▪ Multi-year up-cycle in offshore pipeline construction evolving (
Slide 26: Southeast Gateway Pipeline
Southeast Gateway Pipeline Shawcor will coat approximately 706 km of 36-inch diameter pipe Coating will be executed from two mobile plants in Altamira Mexico (similar set-up was used to execute the Sur de Texas project) Time horizon for Southeast Gateway Pipeline looks similar to time horizon for Su
Slide 27: A Global Materials Technology Company Positioned for Growth
A Global Materials Technology Company Positioned for Growth Transitioning to a new Company name: Mattr™ in H1 2023 Mattr embodies our core competencies in materials science, and reflects the significance of our products and solutions. What we do matters – to our employees, our customers, our communi