Slide 1: Q4 2022 Earnings Release Presentation
Q4 2022 Earnings Release Presentation
Slide 2: Forward-Looking Information
Q4 2022 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 forward-loo
Slide 3: FY 2022 Highlights – A Transformative Year
Q4 FY 2022 Highlights – A Transformative Year FY Revenue 10% higher than 2021 at $1,255M, despite multiple business divestitures Positive Financial FY Adjusted EBITDA 23% higher than 2021 at $130M, including impacts of share based Momentum compensation costs and foreign exchange gains Reached total
Slide 4: Q4 Highlights
Q4 2022 Highlights LESS VOLATILE INFRASTRUCTURE & INDUSTRIAL Q4 Adjusted EBITDA at $38M, includes impacts of share based REVENUE EXPANDING compensation costs and foreign exchange losses Revenue contribution from businesses serving infrastructure & Revenue industrial end markets represented 43% in Q4
Slide 5: Composite Systems
Q4 2022 Composite Systems 34% increase in revenue vs. Q4-2021 to $140 million Strong order growth for large diameter FlexPipe Water business again delivered strongest revenue quarter in history Continued robust tank demand with resin supply resolved Completed the sale of the OAM business Subsequent
Slide 6: Automotive and Industrial
Q4 2022 Automotive and Industrial Revenue of $74 million marks a 21% increase vs. Q4-2021 Strong deliveries into utilities and nuclear end markets, with acquisition of Kanata enhancing nuclear market position going forward 72% of revenue from industrial sources, with the remaining 28% coming from au
Slide 7: Pipeline and Pipe Services
Q4 2022 Pipeline and Pipe Services The segment delivered $131 million of revenue, a 28% increase vs. Q4-2021, as several offshore coating projects commenced Segment EBITDA approached 10% during fourth quarter as multi- year offshore pipeline construction up-cycle commences Multiple project commitmen
Slide 8: Backlog, Bid & Budgetary
Q4 2022 Backlog, Bid & Budgetary Q4 2022 Q3 2022 12-month Backlog rose 22% as offshore pipeline $220 construction projects are captured and industrial and infrastructure $465 demand remains strong. The majority of the backlog is attributed to the Pipeline and Pipe Services segment. Bid strength cont
Slide 9: Q4 Financial Results
Q4 2022 Financial Results Composite Systems QUARTER OVER PRIOR-YEAR QUARTER HIGHLIGHTS In millions Q4 2022 Q4 2021 Change Revenue 139.6 103.8 34% • Consolidated Revenue of $345M and consolidated Adj. EBITDA of $38.4M Adj. EBITDA 24.6 14.5 70% • Composite Systems Adjusted EBITDA rises 70%, reflecting
Slide 10: Cashflow and Debt
Q4 2022 Cashflow and Debt Consolidated Cash & Debt Net Debt $500 $437 $421 $410 $400 $291 $307 $281 $300 $266 $246 $222 $207 $200 $163 $100 $8 -98% $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 • Reduced Working Capital by $125.1 million, mainly driven by the timing of the SGP project collec
Slide 11: CAPEX
Q4 2022 CAPEX • Capital spend of of $11 million in Q4, of which $6 million directed to growth capital in Automotive and CAPEX ($CAD MM) Industrial and Composite Systems $100 $89 • Capital spending for full year 2023 expected to $90 be $160-$180 million, dominated $80 $76 by growth investments: $32 $
Slide 12: FY 2022 Financial Results
Q4 FY 2022 Financial Results Composite Systems YEAR OVER YEAR HIGHLIGHTS In millions FY 2022 FY 2021 Change Revenue 529.2 374.9 41% • Consolidated Revenue of $1,255M and consolidated Adj. EBITDA of $130.0M Adj. EBITDA 93.2 54.5 71% • Composite Systems Adjusted EBITDA rises 71%, reflecting Adj. EBITD
Slide 13: FY 2022 Cashflow and Takeaways
Q4 FY 2022 Cashflow and Takeaways KEY FINANCIAL TAKEWAYS +$112M in Revenue +$24M in Adj. EBITDA +$140M in Cash +$22M in Growth CAPEX +$79M in Debt Reductions +$641M in Secured Backlog Q4'22 EARNINGS RELEASE PRESENTATION — 13
Slide 14: Cumulative Value of Strategic Actions
Q4 2022 Cumulative Value of Strategic Actions Actions taken since the beginning of 2020 resulted in the following, as at December 31, 2022: 9 Pipe Coating Facility Exits Increase in Long-term Debt Scope 1 & 2 Estimated Fixed Infrastructure and 8 Divestitures/Closures Removed $222M Emissions Reduced
Slide 15: 2023 Outlook
2023 Outlook MACRO-ECONOMIC OPERATIONAL • Continuing expansion of global • Expect Q1-23 and Q2-23 performance similar investment in communications, to Q4-22 transportation, low emissions • Anticipate very substantial step-up in H2-23 energy and water management • $160-$180M planned capital investmen
Slide 16: 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