Matrix Composites & Engineering Ltd · ASX:MCE
Matrix Composites & Engineering — H1 FY2024 Earnings Presentation
18 slides from Matrix Composites & Engineering's earnings presentation, Feb 23, 2024
Slide 1: 2024 Half Year Results Presentation
2024 HALF YEAR RESULTS PRESENTATION AARON BEGLEY – CEO BRENDAN COCKS – CFO 23 February 2024 MATRIXENGINEERED.COM WWW.MATRIXENGINEERED.COM
Slide 2: Disclaimer
DISCLAIMER Important information: The following notice and disclaimer applies to this investor presentation issued by Matrix Composites & Engineering Ltd (the Company). You are advised to read these disclaimers carefully before reading or making any other use of this presentation or information cont
Slide 3: Our Business
THE POWER OF ADVANCED MATERIALS OUR BUSINESS Matrix designs, engineers and manufactures engineered products from composite and advanced materials to: • Deliver subsea buoyancy solutions to the world. • Support growth of renewable energy sector. • Protect key infrastructure with corrosion resistant c
Slide 4: Strong Growth Momentum
STRONG GROWTH MOMENTUM ~$85m+ RETURN TO GROWTH WITH POSITIVE OUTLOOK Revenue Growth • Increasingly active offshore oil & gas market driving improved Subsea buoyancy demand. • 1H FY24 revenue $26.7m (1H FY23: $11.8m). $47.2m • Expected full year revenue of ~$85m, underpinned by at least $70m of subse
Slide 5: 1H FY24 Financial Results
1H FY24 FINANCIAL RESULTS CFO – BRENDAN COCKS 5
Slide 6: Key Financial Metrics
KEY FINANCIAL METRICS 1H FY24 1H FY23 • Revenue continuing to build, with secured Subsea contracts to drive strong revenue uplift in 2H over 1H FY24. Revenue $m 26.7 11.8 At least $70m Underlying EBITDA1 $m 0.6 (2.3) Revenue secured 1H 2H 75 EBITDA $m (0.6) 12.4 60 45 $m Net profit/(loss) after tax
Slide 7: Balance Sheet
BALANCE SHEET $m 31 Dec 23 30 Jun 23 Cash and Term Deposits 23.3 20.0 • Increased cash balance with stable, robust balance Trade and other receivables 8.6 21.7 sheet supporting higher activity. Inventory 10.4 5.9 Other assets 2.3 0.8 • Lower trade receivables with some key contract Current Assets 44
Slide 8: Cash Flow from Operations
CASH FLOW FROM OPERATIONS $m 31 Dec 23 30 Jun 23 Underlying EBITDA /(Loss) 0.6 (2.3) • Significant increase to operating cash flow with Receivables 13.0 (3.5) finalisation of key project during the half. Trade Payables 3.8 2.4 • Contract timing and working capital movement impacts: Inventory (4.5) (
Slide 9: Matrix Outlook Growth
MATRIX OUTLOOK GROWTH CEO – AARON BEGLEY 9
Slide 10: Three Business Pillars
THREE BUSINESS PILLARS CORE TRADITIONAL EMERGING CORROSION ADVANCED SUBSEA TECHNOLOGIES MATERIALS Advanced composite material solutions for Renewables / Defence / Resources Growing anti-corrosion coating, application equipment and technical services SURF, deep water drilling and well construction. E
Slide 11: Subsea: Proven and Established
PROVEN AND ESTABLISHED SUBSEA APPLICATIONS ACROSS OIL & GAS AND RENEWABLES • Buoyancy (syntactic foam) for: • Deepwater drilling • Subsea umbilicals, risers and flowlines (SURF) • Offshore floating wind turbines and infrastructure • Matrix LGS VIV and drag reduction buoyancy $123M OF CONTRACT AWARDS
Slide 12: Subsea Production (SURF): Momentum Building
MOMENTUM BUILDING SUBSEA PRODUCTION (SURF) STRONG SURF MARKET PENETRATION UNDERPINNED BY SUSTAINED INDUSTRY ACTIVITY • FY23 turning point for Matrix presence in SURF Market. • +$90m secured across 3 projects in last 18 months. • Further projects of similar scale being pursued for FY24 and FY25 produ
Slide 13: Drilling Market: Industry Recovery Is Building
INDUSTRY RECOVERY IS BUILDING DRILLING MARKET INDUSTRY LEADER • +$1B of syntactic foam buoyancy delivered by Matrix to the drilling sector in last 15 years. • Global fleet of ~200 Rigs and Drill ships, with ~$2B of Buoyancy. • Significantly improved market conditions for drillers should lead to dema
Slide 14: Other Subsea Buoyancy: Product Growth Opportunities
PRODUCT GROWTH OPPORTUNITIES OTHER SUBSEA BUOYANCY DEEP SEA MINING EQUIPMENT OFFSHORE FLOATING WIND • Currently producing riser buoyancy system using syntactic foam • 26.5 GW of new floating wind capacity to be added by 2030. technology for a deep-sea research vessel. • Rapid escalation of floating
Slide 15: Corrosion Technologies
EXTENDING INTO ENERGY AND RESOURCES MARKETS CORROSION TECHNOLOGIES TECHNOLOGY SOLUTIONS • Humidur® Coatings • Composite repairs • Equipment hire • Rotolining: Thermoplastic lining LOCAL RESOURCES SECTOR • LNG Matrix Composites & Engineering • Brownfield developments • Operational maintenance PROGRES
Slide 16: Advanced Materials: Emerging Market Space
EMERGING MARKET SPACE ADVANCED MATERIALS TECHNOLOGY SOLUTIONS DEMONSTRATED PROGRESS • Syntactic foam for Unmanned Underwater • Aramco qualification and initial Vehicles ~$1.0m order in 1H FY24 • Steel replaced and advanced composites • Supplied Buoyancy to multiple applications prototype UUVs • Deve
Slide 17: Matrix's Growth Proposition
THE POWER OF ADVANCED MATERIALS MATRIX’S GROWTH PROPOSITION Strong revenue expansion Recurrent accretive revenue via delivered; future growth secured Corrosion Technologies sustainment work Strengthening subsea market, Rising level of renewable, clean energy capitalising on oil & gas recovery work w
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 WWW.MATRIXENGINEERED.COM
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