Matrix Composites & Engineering Ltd · ASX:MCE
Matrix Composites & Engineering — Investor Presentation (November 2020)
29 slides from Matrix Composites & Engineering's investor presentation, Nov 18, 2020
Slide 1: AGM Addresses
18 November 2020 ASX Release Matrix Composites and Engineering Ltd (Matrix) (ASX: MCE) AGM Addresses The following addresses will be delivered today at the 2020 Annual General Meeting: • Chairperson’s Address – Mr Peter Hood AO • CEO’s Presentation – Mr Aaron Begley Authorized for release by Julie J
Slide 2: Chairman's Statement
ASX ANNOUNCEMENT 18 November 2020 Chairman’s Statement 2020 Annual General Meeting Ladies and Gentlemen, before commencing the formal business of today’s meeting I would like to give you an overview of Matrix’s performance and developments over the past 12 months and outline our strategy for the yea
Slide 3: Chairperson's Address
In addition to these initiatives, in July 2020 the Board also initiated an independent strategic review to consider options to drive future shareholder value in light of continued depressed oil and gas market conditions. Azure Capital Pty Ltd was appointed as Matrix’s independent corporate adviser t
Slide 4: About Matrix Composites & Engineering
Media Adrian Watson FTI Consulting Ph: +61 8 9321 8533 Email: adrian.watson@fticonsulting.com About Matrix Composites & Engineering Matrix Composites & Engineering specialises in the design, engineering and manufacture of composite and advanced material technology solutions for the oil and gas, civi
Slide 5: 2020 Annual General Meeting
2020 ANNUAL GENERAL MEETING MATRIX COMPOSITES & ENGINEERING 18 November 2020 MATRIXENGINEERED.COM Matrix AGM Presentation 2020 17/11/2020 1
Slide 6: Agenda
AGENDA • Introduction • Quorum • Board Members & Attendees • Proxies • Notice of Meeting • Previous Minutes • Online Shareholder Participation • Chair’s Address • Financial Statements • Resolutions • CEO Presentation 17/11/2020 Matrix AGM Presentation 2020 2
Slide 7: Chairperson's Address
CHAIRPERSON’S ADDRESS Mr Peter Hood Chair 3 17/11/2020 Matrix AGM Presentation 2020
Slide 8: Financial Statements
FINANCIAL STATEMENTS To receive and consider the Financial Report of the Company for the year ended 30 June 2020, consisting of the Income Statements, Statement of Financial Position, Statements of Changes in Equity, Statements of Cash Flows, the Directors’ Report, the Directors’ Declaration and the
Slide 9: Resolution 1
RESOLUTION 1 As an ordinary resolution: “That Mr Steven Cole, being a Director of the Company, retiring by rotation in accordance with article 19.3 of the Company’s Constitution, and being eligible, is re-elected as a Director of the Company.” For Against Open Abstain 33,832,098 23,985,411 1,526,405
Slide 10: Resolution 2
RESOLUTION 2 As an ordinary resolution: “That, the purposes of ASX Listing Rule 7.2 and for all other purposes that the Equity Incentive Plan, on the terms described in the Explanatory Statement which forms part of the Notice of Meeting, be approved”. For Against Open Abstain 35,368,302 15,884,827 1
Slide 11: Resolution 3
RESOLUTION 3 As an ordinary resolution: “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, the grant to the Managing Director and Chief Executive Officer Mr Aaron Begley of 2,514,793 Options and 846,614 Performance Rights under the Equity Incentive Plan, on the terms descr
Slide 12: Resolution 4
RESOLUTION 4 As an ordinary resolution “That for the purposes of section 250R(2), and for all other purposes, the Remuneration Report, as set out in the Company’s 2020 Annual Report, is adopted”. For Against No Abstain 27,224,270 24,049,643 1,431,905 82,275 51.65% 45.63% 2.72% N/A • The vote on this
Slide 13: 2020 Annual General Meeting - CEO
Image courtesy of Naval Group 2020 ANNUAL GENERAL MEETING AARON BEGLEY CHIEF EXECUTIVE OFFICER 18 November 2020 MATRIXENGINEERED.COM
Slide 14: Our Capabilities
OUR CAPABILITIES Advanced materials Advanced manufacturing Technology development 10
Slide 15: Our Markets
OUR MARKETS Civil & Resources Oil & Gas Transportation Defence Infrastructure 11
Slide 16: Our Customers and Partners
OUR CUSTOMERS AND PARTNERS 12
Slide 17: FY20 Financial Overview
FY20 FINANCIAL OVERVIEW FY20 FY19 • Reduced capital expenditure in the oil and gas market due to a weak oil price and COVID-19 global Revenue $m 27.4 38.2 impacts drove a material slowdown in revenue and orders in Q4 FY20 Underlying EBITDA1 $m (3.7) (0.9) • Impacted by one-off, non-cash adjustments
Slide 18: Strategy Outlook
STRATEGY OUTLOOK CEO – Aaron Begley
Slide 19: Positioned to Capture Opportunities
POSITIONED TO CAPTURE OPPORTUNITIES World-class, modern and highly Actively pivoting towards Strong cash position and capital automated manufacturing plant Brownfields OPEX via Humidur and management focus underpins capability to packaging of technology offerings navigate challenging oil & gas condi
Slide 20: Ongoing Products and Services to Traditional Markets
ONGOING PRODUCTS AND SERVICES TO TRADITIONAL MARKETS Deepwater drilling Subsea & SURF Well Construction 16
Slide 21: Traditional Market Update
TRADITIONAL MARKET UPDATE RISER BUOYANCY SURF WELL CONSTRUCTION (MAXR®) • Downward trend continues • Local project FIDs • Significant decline (~ 50%) in • Higher spend forecasted for (Scarborough and Barossa) North American 2022, subject to oil price pushed out 12 – 18 months unconventional market •
Slide 22: Leveraging Capability, Local and Existing Customer Base
LEVERAGING CAPABILITY, LOCAL AND EXISTING CUSTOMER BASE TO BUILD SUSTAINABLE REVENUE Composite technologies to reduce plant Corrosion control technologies Through life asset support operating expenditure Engineering solutions of products to Light weighting of structures and steel Specialised testing
Slide 23: Materials Science & Advanced Manufacturing Working Together
MATERIALS SCIENCE & ADVANCED MANUFACTURING WORKING TOGETHER TO DELIVER WHERE TRADITIONAL MATERIALS CAN’T REDUCING OPEX | MINIMISING DOWNTIME | CONTROLLING CORROSION 19
Slide 24: Building Sustainable Revenue
BUILDING SUSTAINABLE REVENUE • COVID-19 accelerated Matrix’s strategy to shift revenue stream from Greenfields CAPEX to Brownfields OPEX with a refocus on locally based opportunities • Newly formed Technology Group providing significant growth opportunities • Pipeline of $3 million over the next 6 m
Slide 25: Strategic Review - Overview
STRATEGIC REVIEW - OVERVIEW • In response to depressed oil & gas conditions, due to the impacts of low oil prices and COVID-19, Matrix’s Board initiated a strategic review in July 2020 to consider options available to protect and optimise shareholder value. • Azure Capital was appointed as an indepe
Slide 26: Strategic Review – Next Steps
STRATEGIC REVIEW – NEXT STEPS • Azure has recommended that Matrix should retain its focus on existing products/services and also selectively add new products/markets – key takeaways include: 1. New products/markets to only be added in areas where customer demand has been validated 2. Addition of new
Slide 27: 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 28: Closure
CLOSURE Any other business which may be brought forward in accordance with the Company’s Constitution and the Corporations Act 2001 Close of meeting – Mr Peter Hood, Chairperson 17/11/2020 Matrix AGM Presentation 2020 24
Slide 29: Contact Details
CONTACT DETAILS THANK YOU FOR YOUR ATTENTION Aaron Begley Chief Executive Officer T +61 8 9412 1200 E: aaron.begley@matrixengineered.com MATRIXENGINEERED.COM
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