Matrix Composites & Engineering Ltd · ASX:MCE
Matrix Composites & Engineering — H1 FY21 Earnings Presentation
18 slides from Matrix Composites & Engineering's earnings presentation, Feb 26, 2021
Slide 1: 2021 Half Year Results Presentation
Image courtesy of Naval Group 2021 HALF YEAR RESULTS PRESENTATION AARON BEGLEY – CEO BRENDAN COCKS – CFO 26 February 2021 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 $8.1m for the half (2H FY20: • Strategic pivot to brownfields OPEX to • Targeting more stable and assured $4.8m,1H FY20: $22.6m) as Matrix begins underpin long-term revenue growth. revenue streams outside cyclical recovery from weak oil price and oil &
Slide 4: H1 FY21 Financial Results
H1 FY21 FINANCIAL RESULTS CFO – Brendan Cocks
Slide 5: H1 FY21 Financial Overview
H1 FY21 FINANCIAL OVERVIEW H1 FY21 H2 FY20 H1 FY20 Revenue $m 8.1 4.8 22.6 • Reduced capex in oil & gas market due to a weak oil price Underlying EBITDA1 $m (2.2) (4.9) 1.2 and COVID-19 global impacts abruptly emerged in Q3 FY20, EBITDA $m (3.7) (43.6) (0.2) impacting revenue. Net profit/(loss) afte
Slide 6: Balance Sheet
BALANCE SHEET $m 31 Dec 20 30 Jun 20 Cash 11.5 14.7 Trade and other receivables 4.9 5.4 • Balance sheet remains stable, with sound Inventory 7.0 7.6 cash position maintained following Humidur Coatings acquisition and broader strategic Property, plant & equipment 18.3 17.4 repositioning of the busine
Slide 7: Continued Prudent Capital Management
CONTINUED PRUDENT CAPITAL MANAGEMENT $m 31 Dec 20 30 Jun 20 • Maintained sound net cash position, including strategic Cash 11.5 14.7 Humidur Coatings acquisition. Term debt - - • Continue to hold no trade or term debt – only lease Trade finance debt - - liabilities held on Matrix’s balance sheet. Ne
Slide 8: Cash Flow from Operations
CASH FLOW FROM OPERATIONS $m H1 FY21 H1 FY20 Underlying EBITDA /(Loss) (2.2) (0.2) • Operating cash outflow slightly less than EBITDA loss due to Receivables 0.5 (5.4) positive movements in working Trade Payables 1.7 (0.6) capital balances. Inventory 0.6 1.4 • Capital expenditure included $1.25m as
Slide 9: Strategy and Outlook
STRATEGY AND OUTLOOK CEO – Aaron Begley
Slide 10: Delivering Key Technologies
DELIVERING KEY TECHNOLOGIES LIGHTER ● STRONGER ● SMARTER • THERMOPLASTIC COMPOSITES • CARBON FIBRE • SYNTACTIC FOAM • HUMIDUR COATINGS
Slide 11: Technology Development as a Service
TECHNOLOGY DEVELOPMENT AS A SERVICE DELIVERING SOLUTIONS WHERE TRADITIONAL MATERIALS CAN’T REDUCING OPEX | MINIMISING DOWNTIME | CONTROLLING CORROSION 11
Slide 12: Building Sustainable Revenue
BUILDING SUSTAINABLE REVENUE Composite technologies to reduce plant Corrosion control technologies Through life asset support operating expenditure Engineered solutions of products to Light weighting of structures and steel Specialised testing services reduce operational downtime replacement 12
Slide 13: Maintaining Capacity to Deliver in Traditional Markets
MAINTAINING CAPACITY TO DELIVER IN TRADITIONAL MARKETS DEEPWATER DRILLING • Deepwater rig demand at a 40 year low. • Market projected to see some improvement in demand in 2022/23. SUBSEA & SURF • Significant investment from South American projects, representing 70% of global market demand. • Some lo
Slide 14: Long Track Record of Product Development
LONG TRACK RECORD OF PRODUCT DEVELOPMENT PROBLEM SOLUTION MATRIX SALES: A$1bn 1999 2005 2008 2011 Inconsistency Matrix Drilling Riser • World’s largest syntactic foam and durability Development API 16F Expansion of Henderson Buoyancy Modules pathway Malaga facility facility opened plant established
Slide 15: Progressing Strategic Pivot
PROGRESSING STRATEGIC PIVOT • Australian focussed • Market size: access the $10B Australian maintenance market1 • Established foothold in target sectors: LNG, iron ore, battery minerals, gold, other resources ✓ Anti-corrosion coatings, application equipment and technical services ✓ High tech composi
Slide 16: Strategic Pivot – Developments in Detail
STRATEGIC PIVOT – DEVELOPMENTS IN DETAIL • Humidur Coatings (corrosion protection) acquired June 2020 • 1H FY21 revenue of $1.7m (storage, distribution and equipment hire). • Further orders and new work expected during 2H FY21. • Stable income stream → underpinning Matrix’s long-term growth. • Newcr
Slide 17: Summary
SUMMARY • Proactively progressed strategic pivot to build sustainable revenue from brownfields OPEX, following strategic review. • Matrix beginning recovery from weak oil price and COVID-19 global impacts on the oil and gas industry. • Secured new agreements and contracts in both the energy and reso
Slide 18: Contact
CONTACT Aaron Begley Chief Executive Officer T +61 8 9412 1200 E: aaron.begley@matrixengineered.com Brendan Cocks Chief Financial Officer T +61 8 9412 1200 E: brendan.cocks@matrixengineered.com MATRIXENGINEERED.COM
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