FULL YEAR RESULT 2012 Matrix Composites & Engineering Ltd 16 August 2012
OVERVIEW Overview Financial Results Strategy & Outlook 3
OVERVIEW HIGHLIGHTS FY2012 Ramp-up to target production rates 72 per cent of target production output achieved in Q4 FY12 Target production output achieved in August 2012 Development of a strong safety culture Recapitalisation of…
OVERVIEW CHALLENGES FY2012 Internal - Addressed Commissioning of the syntactic foam plant Lower than anticipated production Major capital expenditure completed Development of financial and commercial processes External Adverse…
OVERVIEW - PRODUCTION New safety initiatives lowest LTIFR (1.1) ever achieved across the Group (as of 1/8/12) lower than the average recorded by PACIAs chemical and plastic industry members (3.6 and 15.2 respectively) Final…
OVERVIEW TARGET PLANT CAPACITY Henderson Plant Target Capacity: July 2011 11 August 2012 Target 90 per cent of target production achieved in first six weeks of Q1FY13 7
OVERVIEW - SALES USD757 million pipeline and quote book Current USD98 million order book (as at 1/8/12) New contracts, new clients, new regions 8
OVERVIEW ORDER BOOK & PIPELINE Order Book & Pipeline (USD) as at 1/8/12 PIPELINE & QUOTE BOOK4 QUOTE CURRENT PENDING BOOK3 FY2014+ ORDER BOOK1 ORDER BOOK2 FY2014 0-6 months 6-18 months 98m 169m 518m 757m Pipeline &…
OVERVIEW ORDER BOOK & PIPELINE KEY 1 Current order book the value of contracted work (where a purchase order (PO) has been received) that has not been produced/ delivered to client 2 Pending order book the value of contracts under…
FY 2012 FINANCIAL RESULTS
FINANCIAL PERFORMANCE OVERVIEW FY2012 May guidance FY2011 Revenue m 144.8 140 to 150 174.6 EBIT (reported) m (23.2) - 43.5 Non-recurring m 20.9 - - Adjusted EBIT m (2.3) - 43.5 OPBT (excl forex/int rate) m (22.5) (20) to (23) 1…
FINANCIAL PERFORMANCE OVERVIEW Group result consistent with May guidance MOSE generated strong earnings Buoyancy revenue impacted by: Lower than anticipated production High AUD exchange rate Competitive pricing pressure Buoyancy…
PRODUCTION V FIXED COSTS Jul Aug Sept Oct Nov Dec Jan Feb March April May June FY13 ACT Breakeven FY12 ACT FY13 BGT (average) FY12 operated below cash breakeven for much of the year FY13 targeting production well above breakeven…
BANKING FACILITIES Matrix breached its Operating Leverage covenant at 30 June 2012. Breach caused by: Cumulative losses in FY2012 Non-cash adjustments to balance sheet Debt temporarily reclassified as current due to technical…
BALANCE SHEET m June 12 June 11 June 10 Balance sheet Total Assets 210.4 206.3 134.1 Negative net debt TWC 25.6 37.1 26.3 Reduced gearing Total Equity 136.7 121.9 58.4 Net Debt/(Cash) (3.2) 8.6 (5.5) Strong TWC position Interest…
FINANCE PRIORITIES Process Improvement ERP Review Improve finance processes Identified requirement for systems upgrade Identify process improvements Process mapping project - integration of finance with operations (Phase 1)…
STRATEGY AND OUTLOOK 21
GROUP STRATEGY Optimise plant revenue Focus on high value syntactic foam products Continue to achieve target production rates Cost control Closely manage working capital Develop a high performing organisational structure…
IMPROVING REVENUE DIVERSIFICATION Increasing revenue diversification reflects aggressive market penetration in new product groups FY2012 SURF Ancillary FY2013 SURF Ancillary Other 4% 1% 1% Well MOSE MOSE Well Construction 18%…
HENDERSON BENEFITS REALISATION Status Increased production capacity over Malaga by 75 per cent Ability to meet tighter client deadlines Improved turnaround times Operational efficiencies Lower direct labour costs at target…
HENDERSON BENEFITS REALISATION Status Safer production processes lowest LTIFR (1.1) ever achieved across the , Ongoing Group (as of 1/8/12) Ability to produce a diverse range of product lines , Ongoing Improved product quality and…
SHORT TERM OBJECTIVES Continuous process improvement to achieve increased target production rates and productivity Generate target revenue from global network Increase tooling capacity to support growth in well construction product…
OUTLOOK Macro outlook for oil and gas sector remains strong Drilling/ SURF ancillary products structural shift to deepwater drilling and production underpins demand Drilling products global capex for subsea well and trees to…
OUTLOOK Drilling Products Subsea Wells & Trees Global Capex World Floater Supply Units/km by Component 450 450 Number of Rigs Working 400 400 Subsea Wells & Trees Existing Fleet 350 350 Ordered plus Options 300 300…
OUTLOOK Drilling Products No. Newbuilds by Delivery Year 30 Options Ordered 25 Under Construction Built 20 No. Newbuilds 15 10 5 0 Source: Morgan Stanley, Matrix Composites & Engineering 29
OUTLOOK Well Construction Products Total footage drilled worldwide increasing, especially in the US drives demand for new low friction centralisers World Drilling & Production Outlook US Drilling & Production Outlook Land &…
OUTLOOK SURF Ancillary Products Global Capex Units/km by Component Deployment of subsea flowlines, risers and umbilicals forecast to increase significantly Drives demand for SURF ancillary products Source:…
OUTLOOK MOSE backlog of mining equipment related work likely to soften in the medium term. This will be offset by the growing offshore and maintenance services market. 32
SUMMARY 2012 a year of transition 90 per cent of target production output achieved in first six weeks of Q1 FY13. Target production output achieved in August 2012 Completion of heavy capex programme Strong quote book and growing…
CONTACT DETAILS AARON BEGLEY CEO aaron.begleymatrixengineered.com PETER TAZEWELL CFO/ Company Secretary peter.tazewellmatrixengineered.com E: investormatrixengineered.com W: www.matrixengineered.com 34
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