Half Year Result 2015 MATRIX COMPOSITES & ENGINEERING 19 February 2015
Agenda Overview Financial Results Operational Review Strategies & Outlook 2
Overview 1H FY15 3
Overview Lower global oil prices WEAKER MACRO INDICATORS Significant fall in global oil prices Reduced floater day rates GLOBAL INDUSTRY REACTION Accelerating the retirement/ cold stacking of older floaters 30 years to rebalance…
Overview Lower global oil prices IMPACT ON MATRIX Continuing to secure available contracts for buoyancy products Maintaining output at optimal rates until clarity over future floater building activity Reviewing overhead and…
Overview Order book & pipeline US90m+ orders announced in 1H Order Book & Pending Orders (USm) as at 31 Dec 2014 FY15 350 300 Order backlog notionally supports 250 production until Q1 FY16 US (m) 200 Order conversions…
Overview Operations PRODUCTION Production flexed down until clarity of future floater building activity Continued focus on production and materials efficiencies OHS/ QUALITY 1.4 Group LTIFR (as of 31 December 2014) LTI free…
Overview Capital Management DIVIDEND PAYMENT Dividend Payment of 2.0 cents per share Supported by earnings outlook, strong liquidity and stable balance sheet metrics ON-MARKET SHARE BUYBACK Open on 6 March 2015 Board believes…
1H FY15 Financial Results CFO PETER TAZEWELL
Key Financial Metrics 1H FY15 FY2014 1H FY14 HoH Var Revenue m 78.5 158.6 65.1 20.6% EBITDAF m 12.3 20.0 8.4 46.5% EBITDA m 13.6 18.6 7.7 76.7% Net profit/(loss) after tax m 3.9 3.0 0.7 n/a Earnings per share c 4.1 3.2 0.7 n/a…
Financial Overview REVENUE ANALYSIS MARGIN IMPROVEMENT Adverse impact from lower Raw material efficiency buoyancy production Declining AUD Significant revenue upside from USD unit pricing stabilised declining AUD 11
Balance Sheet m 1H FY15 FY2014 1H FY14 Cash 29.1 23.2 21.9 Strong working Trade receivables 13.2 20.0 17.4 capital metrics Other receivables 9.7 9.8 12.1 (debtors + other Inventory 17.0 18.8 20.4 receivables) Property, plant &…
Debt & Banking New flexible 3 year debt facility negotiated in November 2014 Simplified convenant structure Undrawn available facilities of US40 million significant available liquidity Gross debt reduced to 10 million Net cash…
Cash Flow from Operations 14
Operational Review CEO AARON BEGLEY
Offshore Capital Drilling Equipment US90m+ contracts awarded 1H FY15 35% over 1H FY14 Large backlog of newbuilds to be completed in the next 2-3 years means order conversion will continue, although market slowing Competitive…
SURF & Subsea Solutions Continued revenue growth in SURF product line Delivered one of the worlds largest installation buoyancy structures (150MT) to Heerema Marine Contractors Showcases product scale and complexity Advanced the…
Well Construction Products Centralizer sales continued growing in 1H FY15 Significant reduction in the North American (NA) rig count Horizontal completions market (target market) less affected than market for vertically drilled…
Offshore Services Established a riser service centre in Karratha, WA to access the large domestic riser aftermarket Secured a number of contracts with international drilling contractors 19
Outlook - CDE NEWBUILD MARKET Backlog of committed newbuilds to 2018 (Graph 2) Marketed utilisation rates predicted to have fallen sharply in 2015/ 2016 before rising slowly in 2017 (Graph 1) REPAIRS/ REPLACEMENTS 64% of the…
Outlook SURF & Subsea Solutions Large forecast deployment of 115 subsea flowlines and umbilicals in 2015, followed by a minimum of 100 subsea flowlines and umbilicals until 2018 (Graph 4) Large number of committed projects Some…
Graph 1 International Floater Supply Demand Graph 2 World No. Confirmed Newbuilds Infield, February 2015 Company Data, February 2015 Graph 3 Age of MODU fleet Graph 4 - Pipe Installations by Year 24 Infield, February 2015
Outlook Well Construction Significant fall in NA rig count with oil price Total horizontal wells and footage drilled in the US expected to fall from their peak in 2014 to more sustainable levels in 2015 (similar to levels in 2011).…
Graph 5 US Drilling & Production Outlook Total & Graph 6 World Drilling & Production Outlook Horizontal Wells Drilled Land & Offshore Baker Hughes, Spears & Associates, January 2015 26
Summary EBITDA 13.6 million ( 76.7%) at 17.4 per cent EBITDA margin Revenue of 78.5 million ( 20.6%) on increased production Dividends resumed at 2.0 cents per share and on-market buyback initiated Balance sheet metrics stable…
Contact details AARON BEGLEY PETER TAZEWELL CEO Chief Financial Officer T +61 8 9412 1200 T +61 8 9412 1200 E aaron.begleymatrixengineered.com E peter.tazewellmatrixengineered.com 29
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