Mattr Corp · TSX:MATR
Mattr — Shawcor — Investor Presentation (June 2022)
24 slides from Mattr's investor presentation, June 2022
Slide 1: Investor Presentation June 2022
Investor Presentation June 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", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify
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 $1.1B 2022 Q1 LTM ANNUAL REVENUE 3,800+ 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: 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 ▪ Tank Replacements ▪ Communication Network ▪ Utility Upgrades Buildout ▪ Pipeline Refurbishments ▪
Slide 7: Why the Right Infrastructure and Industrial Solutions Matter
Why the Right Infrastructure and Industrial Solutions Matter Shawcor has differentiated, technical solutions to support industry trends as: 50 % 2.6 T WHERE IT HURTS MOST $ Telecommunications OF TOTAL VEHICLE COST IS EXPECTED TO COME FROM AUTOMOTIVE USD Electrical Power Systems Gas and Oil Storage E
Slide 8: Creating a Simplified, Less Volatile Higher Value Portfolio
Creating a Simplified, Less Volatile Higher Value Portfolio FY 2019 REVENUE Q1 2022 REVENUE Infrastructure & Industrial Revenue Growth Divested or 49% 41% Discontinued 33% 24% Xerxes1 Pipeline Performance Group DSG-Canusa FlexPipe Lake Superior Consulting 2019 2020 2021 Q1-2022 ShawFlex Guardian Can
Slide 9: Prioritizing Growth with Higher EBITDA Margins
Prioritizing Growth with Higher EBITDA Margins (C$ mm) Revenue and Adj. EBITDA $2,000 $1,489 $1,500 $1,178 $1,143 $1,131 Adj. EBITDA Margin $1,000 25% $500 $136 $74 $106 $107 20% $0 2019 2020 2021 Q1 2022 LTM 15% Revenue Adj. EBITDA 9.2% 9.2% 9.5% 10% 6.3% 5% • Targeted revenue growth in higher marg
Slide 10: Creating a Simplified, Less Volatile & Higher Value Portfolio
Creating a Simplified, Less Volatile & Higher Value Portfolio Shawcor is focused 9 Pipe coating facilities exited since March 2020 on delivering infrastructure technology our 5 Divestitures/closures contributing to smaller footprint world needs through an extremely efficient 1 Impending relocation t
Slide 11: Driving Cost Reduction & Maximizing Cash Conversion
Driving Cost Reduction & Maximizing Cash Conversion (C$ mm) SG&A $300 $234 $202 $205 -32% • Substantial cost removed from business • Annualized SG&A reduction in excess of $100M • Expected SG&A run rate of $50M 2019 2020 2021 Q1 2022 LTM per quarter going forward • Focus on cash generation • Operati
Slide 12: Capital Structure & Allocation
Capital Structure & Allocation (C$ mm) 3.9x 3.1x 2.1x 1.5x Continued focus on $525 $506 $426 the repayment of Reducing Net-debt-to-Adjusted EBITDA to 1.5x $291 $347 outstanding Credit $222 Facility to reduce overall net debt (C$ mm) $40-$50 Q4 2019 Q4 2020 Q4 2021 Target $45 Total Debt Net Debt Net-
Slide 13: Robust Backlog, Bid & Budgetary
Robust Backlog, Bid & Budgetary Q1 2022 Q4 2021 $102 Bid & Budgetary rising as multi-year offshore $154 pipeline construction project up-cycle evolves Total Backlog rising as all segments demonstrate $702 < 12 months > 12 months $589 < 12 months > 12 months meaningful new business capture (in millio
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 A complete system of composite based
Slide 15: Business Segments
Business Segments INVESTOR PRESENTATION JUNE 2022 — 15 ENGINEERING A BETTER FUTURE
Slide 16: Composite Systems
Composite Systems Q1-2022 LTM Q1-2022 Revenue by Market Revenue $410.2 M Infrastructure & Industrial Oil & Gas 14.8% Margin Adj. EBITDA $60.6 M INVESTOR PRESENTATION JUNE 2022 — 16 ENGINEERING A BETTER FUTURE
Slide 17: Composite Systems – Xerxes
Sample Customers Composite Systems Xerxes Shawcor manufactures composite underground storage tanks Sample Competitors which serve retail fuel and water and wastewater end markets INDUSTRY TRENDS ▪ Top fuel customer quoted “most aggressive growth” in the Company’s history, going from 965 stores to 18
Slide 18: 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 19: Automotive & Industrial
Automotive & Industrial Q1-2022 LTM Q1-2022 Revenue Revenue by Market $277.9 M Automotive 17.5% Industrial & Margin Other Infrastructure Adj. EBITDA $48.7 M INVESTOR PRESENTATION JUNE 2022 — 19 ENGINEERING A BETTER FUTURE
Slide 20: 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 21: 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 ▪ Light vehicle production
Slide 22: Pipeline & Pipe Services
Pipeline & Pipe Services Q1-2022 LTM Q1-2022 Revenue by Market Revenue Large Project $447.0 M Offshore Midstream 2.1% Margin Upstream Adj. EBITDA $9.4 M INVESTOR PRESENTATION JUNE 2022 — 22 ENGINEERING A BETTER FUTURE
Slide 23: 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 24: A Global Materials Technology Company Positioned For Growth
A Global Materials Technology Company Positioned For Growth Global material sciences Portfolio simplification & Solid backlog and company with leading evolution prioritizing established customer base market positions across infrastructure and industrial comprised of investment all operating segments