19 slides from Matrix Composites & Engineering's investor presentation, Aug 31, 2020
Slide 1: 2020 Full Year Results Presentation
2020 FULL YEAR Image courtesy of Naval Group RESULTS PRESENTATION AARON BEGLEY – CEO BRENDAN COCKS – CFO 31 August 2020 MATRIXENGINEERED.COM
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 of $27.4m (FY19: $38.2m). • LGS system used at an offshore drill rig • Pivoting to work in brownfields project on the East Africa coast (suspended maintenance and sustainment for • Reduction reflecting the weak oil price and COVID-19 global impacts on t
Slide 4: Positioned to Capture Opportunities
POSITIONED TO CAPTURE OPPORTUNITIES World-class, modern and highly Actively pivoting towards Solid financial position to withstand automated manufacturing plant through life support challenging oil & gas conditions and target strategic growth Recognised global market Ability to apply expertise and W
Slide 5: FY20 Financial Results
FY20 FINANCIAL RESULTS CFO – BRENDAN COCKS 5 2 June 2020
Slide 6: Key Financial Metrics
KEY FINANCIAL METRICS • Reduced capital expenditure in the oil and gas market FY20 FY19 due to a weak oil price and COVID-19 global impacts drove a material slowdown in revenue and orders in Q4 Revenue $m 27.4 38.2 FY20. Underlying EBITDA1 $m (3.7) (0.9) • Achieved 19% reduction in overheads in past
Slide 7: Balance Sheet
BALANCE SHEET $m 30 Jun 20 30 Jun 19 • Successful completion of Henderson sale and leaseback facility resulted in increase in cash, Cash 14.7 9.4 recognition of right of use asset, and increase in lease Trade and other receivables 5.4 8.3 liabilities. Inventory 7.6 9.8 • PP&E and deferred tax asset
Slide 8: Prudent Capital Management
PRUDENT CAPITAL MANAGEMENT • Delivered on initiative to sell and leaseback Henderson facility in FY20, enhancing cash position. $m 30 Jun 20 30 Jun 19 Cash 14.7 9.4 • Eliminated financial debt – only lease liabilities held on Matrix’s balance sheet. Term debt - - Trade finance debt - (7.3) • Strong
Slide 9: Cash Flow from Operations
CASH FLOW FROM OPERATIONS $m FY20 FY19 • Negative cash from operations of $5.6. H1 was Underlying EBITDA /(Loss) (3.7) (0.9) negative cashflow of $4.6m resulting in $1.0m in H2. Better result impacted by reduced activity in Receivables 2.9 (2.9) H2. Trade Payables (4.2) 2.3 • Successful completion o
Slide 10: Strategy and Outlook
STRATEGY AND OUTLOOK CEO – AARON BEGLEY 10 2 June 2020
Slide 11: Our Capabilities
OUR CAPABILITIES Advanced materials Advanced manufacturing Technology development 11 2 June 2020
Slide 12: Continued Performance in Traditional Markets
CONTINUED PERFORMANCE IN TRADITIONAL MARKETS Deepwater drilling Subsea & SURF Well Construction 12 2 June 2020
Slide 13: Traditional Oil & Gas Sectors
TRADITIONAL OIL & GAS SECTORS Riser Buoyancy • The greenfields oil & gas capex / exploration market impacted by the economic effects of COVID-19. • Several major projects have been cancelled / deferred, shifting many local and international projects to the right by at least 12 months. • Deepwater Dr
Slide 14: Leverage Capability and Local and Existing Customers to Build Sustainable Revenue
LEVERAGE CAPABILITY AND LOCAL AND EXISTING CUSTOMERS TO BUILD SUSTAINABLE REVENUE Composite technologies to reduce Corrosion control technologies Through life asset support plant operating expenditure Engineering solutions of products to Light weighting of structures and steel Specialised testing se
Slide 15: Pivot to Brownfield Opex in Australia
PIVOT TO BROWNFIELD OPEX IN AUSTRALIA • Since 2018, Matrix has been identifying and securing opportunities to utilise its capabilities in targeting work for the Australian LNG and Resources sector. • Focus is on supplying core capabilities in advanced materials and technologies to reduce the operati
Slide 16: Execution of Strategy: Matrix Coating Technologies
EXECUTION OF STRATEGY: MATRIX COATING TECHNOLOGIES 16 2 June 2020
Slide 17: Strategic Review Underway
STRATEGIC REVIEW UNDERWAY • In response to depressed oil and gas conditions that reflects the low oil price and COVID-19 impacts, Matrix initiated a strategic review in Q4 FY20 to consider options to protect and optimise shareholder value. • All options on the table – includes corporate, strategic a
Slide 18: Summary
SUMMARY • Weakness in global oil and gas capex experienced during Q4 FY20 has continued into H1 FY21. • Continuing to progress proactive measures taken to ensure the business is responsive to market conditions and capitalises on existing opportunities. • Strategic pivot towards brownfields project m
Slide 19: 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 19 2 June 2020