Matrix Composites & Engineering Ltd · ASX:MCE
Matrix Composites & Engineering — H1 FY2019 Earnings Presentation
16 slides from Matrix Composites & Engineering's earnings presentation, Feb 22, 2019
Slide 1: 2019 Half Year Results Presentation
2019 Half Year Results Presentation MATRIX COMPOSITES & ENGINEERING LTD Aaron Begley – Chief Executive Officer Brendan Cocks – Chief Financial Officer 22 February 2019
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 Financial Operating Outlook • Revenue $11.3m, with ~75% • Order book to A$37m, • FY19 revenue guidance of of revenue during Q2 FY19. underwriting plant $35m–$40m, up from • Narrowed EBITDA loss production to end of CY19. $19.5m in FY18, $1.9m, with breakeven • Secured biggest riser underpin
Slide 4: Driving growth in FY19
Driving growth in FY19 Expectations for FY19 Status Awarded $15.3m contract to replace ultra deep Improving outlook for oil & gas sector driving rise in water modules, as well as total of $5m in smaller quotations riser buoyancy related orders for delivery in FY19 Sustained activity in unconventiona
Slide 5: 1H FY2019 Financial Results
1H FY2019 Financial Results CFO – BRENDAN COCKS
Slide 6: Key financial metrics
Key financial metrics 1H FY19 2H FY18 1H FY18 • Revenue roughly in line with pcp, but up Revenue $m 11.3 7.6 11.9 on 2H FY18. EBITDA $m (1.9) (4.7) (2.3) • Circa 75% of 1H FY19 revenue in Underlying EBITDA1 $m (2.2) (5.4) (2.6) December quarter, demonstrating momentum into 2H FY19. Net profit/(loss)
Slide 7: Balance sheet
Balance sheet $m 31 Dec 18 30 Jun 18 31 Dec 17 • Increased cash at bank position Cash 14.5 10.6 11.6 to support production growth Trade and other receivables 7.6 5.4 10.1 and provide capacity to secure Inventory 8.9 7.8 7.9 and deliver on future orders. Property, plant & equipment 67.1 69.8 71.4 • E
Slide 8: Debt and banking
Debt and banking $m 31 Dec 2018 30 Jun 2018 • Growth in progress claims, reflecting increase in larger Cash 14.5 10.6 orders. Term debt - - Trade finance debt (7.8) (4.0) • Utilised trade finance facility to support ramp up in Net cash / debt 6.7 6.6 manufacturing of secured work. Adjustments: • Ret
Slide 9: Cash flow from operations
Cash flow from operations • Funds used for production ramp late into the half and into H2. Increase in inventory and receivables offset by increase in customer deposits and progress billing • Net capital raising proceeds of $2.9m received in Dec 18 9
Slide 10: Growth strategy and outlook
Growth strategy and outlook CEO – AARON BEGLEY
Slide 11: Business structure targeting growth
Business structure targeting growth • Matrix business structure targets growth opportunities in five key areas: OIL & GAS TRANSPORTATION CIVIL & INFRASTRUCTURE DEFENCE RESOURCES • These key areas utilise Matrix’s existing core capabilities and assets in: o Advanced materials and technologies o Intel
Slide 12: Oil & Gas – positive market indicators
Oil & Gas – positive market indicators • Major producers have continued to increase spending TOTAL FLOATER DEMAND 300 on exploration. • Expected that total floater demand has reached 250 the bottom at 149 rigs in 2018, and is set to improve Offshore rigs in 2019 and again in 2020. 200 • 717 potentia
Slide 13: Oil & Gas operations
Oil & Gas operations RISER BUOYANCY WELL CONSTRUCTION • Historically Matrix’s primary product – used in • Range of consumables used in shale and deepwater drilling operations and had been horizontal well production. impacted by a sustained period of low capex. • Demand driven by sustained activity i
Slide 14: Diversified operations
Diversified operations TRANSPORTATION CIVIL & INFRASTRUCTURE • Progressed $2.4m contract to develop and • 5-year manufacturing partnership agreement manufacture four prototype advanced for the unique Tunnelwell® arch stormwater composite material bulk transport systems, with system, with initial min
Slide 15: Outlook
Outlook • Oil & Gas sector recovering after years of global downturn and underinvestment, with sustained increase in offshore project activity providing growth opportunities. • Many subsea projects across the globe have now reached FID – expect this to generate a backlog of equipment demand over the
Slide 16: 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 16
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