HALF YEAR RESULT 2012 Matrix Composites & Engineering Ltd 24 February 2012
PRESENTATION OVERVIEW CEO Overview Financial Results HY2012 Operational Review Strategy & Outlook 3
CEO OVERVIEW 4
HIGHLIGHTS HY2012 Transition to Henderson completed Record US700 million quote book Current US120 million order book New Contracts US46.5 million Development and release of new product lines New manufacturing capability…
CHALLENGES Complete commissioning of syntactic foam plant Nameplate capacity by June 2012 Continuing strong AUD against USD Adverse impact on revenue and margin Increased plant throughput will permit scale advantages Development…
HENDERSON PLANT CAPACITY Nameplate capacity April uplift in production arises from: Full capacity availability Tool availability 7
FINANCIAL PERFORMANCE OVERVIEW 1H 2012 1H 2011 Change (%) Revenue m 83.5 87.6 (4.7) Reported EBIT m (6.4) 25.1 (125.5) Non-recurring m 17.1 - - Normalised EBIT m 10.7 25.1 (57.4) NPAT (reported) m (2.4) 17.5 (113.8) Normalised NPAT m…
FINANCIAL PERFORMANCE OVERVIEW Revenue and Margins adversely impacted by: High AUD exchange rate Reduced output during commissioning Non-recurring costs associated with commissioning and closure/decommissioning of Malaga…
QUOTE AND ORDER BOOK Major Contract Awards 1H 2012 Co-operation agreement to supply riser buoyancy to a leading European oil services company up to US50 million revenue pa for a maximum of 5 years LOI received for US20 million (Feb…
OUTLOOK Market Conditions Timing of projects impacts order conversions Strong capital investment and macro outlook Rapidly growing quote book Outlook (short term) Focus on getting plant running at nameplate capacity Re-structuring…
HY 2012 FINANCIAL RESULTS 12
FINANCIAL PERFORMANCE OVERVIEW 1H 2012 1H 2011 Change (%) Revenue m 83.5 87.6 (4.7) Reported EBIT m (6.4) 25.1 (125.5) Non-recurring m 17.1 - - Normalised EBIT m 10.7 25.1 (57.4) NPAT (reported) m (2.4) 17.5 (113.8) Normalised NPAT m…
RESTATEMENT OF 2011 RESULTS Financial results for FY 2011 and 1H 2011 have been restated to reflect correct accounting treatment of revenue recognition 000s FY 2011 1H 2011 Reported NPAT 33,608.4 19,251.1 Lease costs capitalised…
BALANCE SHEET Dec 11 June 11 Dec 10 Balance sheet Total Assets 200.2 206.3 161.0 Low net debt levels Total Equity 114.8 121.9 126.8 Net Debt 19.5 8.5 26.9 Comfortable gearing levels Interest Cover 18.3 49.9 73.7 All bank…
FINANCE PRIORITIES Process Improvement ERP Review Improve finance processes Identified requirement for systems Identify Improvements (ERP Review) upgrade Review purchasing processes for Initiated process mapping project working…
OPERATIONAL REVIEW PERFORMANCE & OUTLOOK 20
DRILLING PRODUCTS Performance Record level of quoting activity US700 million Major cooperation agreement up to US50 million revenue pa for a maximum of five years New major contracts - US46.5 million Three x 12,000 ft strings on…
WELL CONSTRUCTION PRODUCTS Performance Approximately US3 million YTD worth of orders (FY2012) Released new products Expanded range of composite drilling and completions centralisers Patents pending in 108 countries New service…
SURF ANCILLARY EQUIPMENT Performance Increased bidding activity Many products quoted in CY 2011 will be awarded in CY 2012 On approved vendor list for several major SURF contractors - bend restrictors/ other SURF products Outlook…
CRYOGENIC INSULATION SYSTEMS Performance First order - Origin Energy (Beharra Gas Treatment Plant) for the reinstallation of piping at the low temperature separation unit Received 2nd order to supply product for use on a multi…
OFFSHORE & SITE SERVICES (MOSE) Performance Structural change from manufacturing base to a maintenance and labour service provider Consolidation of operating sites 3 major contracts won totalling 8.6 million Outlook Strong demand…
STRATEGY AND OUTLOOK 26
GROUP STRATEGY Strategy Strengthen position as global leader in subsea buoyancy systems Diversify and expand product range (Appendix B) Expand the scope and location of maintenance and speciality engineering services (MOSE) Expand…
IMPROVING REVENUE DIVERSIFICATION Product diversification reflects aggressive market penetration in new product groups Current 2013 16% 16% 7% MOSE 5% WC 13% SURF DRBM 57% 72% 12% DCI KEY MOSE (Matrix Offshore Services…
OUTLOOK Short Term Move to nameplate capacity - 2012 results will reflect only 1Q of DRBM operations at nameplate capacity Revenue impacted by project timing but mitigated by: Long term health demonstrated by large quote and order…
OUTLOOK Longer Term Fully load the Henderson facility Continue geographic expansion Continued R&D and product development 2013 outlook very positive Reduction of risk factors Plant operating at full capacity for entire year…
SUMMARY Nameplate capacity by June 2012 Margins to improve, continued impact of high AUD 2012 is a transition year Continued strong capital expenditure in oil & gas sector Strong quote book and growing order book Heavy capex…
CONTACT DETAILS AARON BEGLEY PETER TAZEWELL CEO CFO/ Company Secretary Ph: +61 8 9412 1200 Ph: +61 8 9412 1200 aaron.begleymatrixap.com.au peter.tazewellmatrixap.com.au 32
APPENDIX A MATRIX ORGANIZATIONAL STRUCTURE Aaron Begley CEO Executive Assistant GM, Sales & Chief Financial Group OH&S Group HR Communications GM, MCE GM, MOSE Marketing Officer Manager Manager Manager 33
APPENDIX B SAFETY PERFORMANCE Significant improvement over 1H FY2011 0 LTIs in 1H FY2012 Safety is a key focus for Matrix 1H FY 12/11 Change (%) Lost Time Injuries (LTIs) 100% 100% Lost Time Injury Frequency Rate (LTIFR)…
APPENDIX B MATRIX PRODUCTS AND SERVICES Products Services Riser Buoyancy Modules Riser Clamps Drilling Products Riser Protection Centralisers Float Equipment Well Guide Shoes Annulus protection Construction Reamer Shoes…
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