Matrix Composites & Engineering : Investor Presentation Dec 21 Half Year Results

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2022 HALF YEAR RESULTS PRESENTATION

AARON BEGLEY - CEO

BRENDAN COCKS - CFO

25 February 2022

M A T R I X E N G I N E E R E D . C O M

DISCLAIMER

onlyImportant 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 contained in this presentation. By attending or otherwise accessing this presentation, you represent and warrant that you are entitled to receive this Presentation in accordance with its terms and the restrictions set out herein and agree to the limitations contained within.

Reliance on third party information: The information and views expressed in this presentation were prepared by the Company and may contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of any public, third party

r market information.

Presentation is a summary only: This presentation is information in a summary form only and does not purport to be complete. It should be read in conjunction with the Company's 2022 Half Year Accounts and all other periodic and continuous disclosure lodged by the Company with the ASX, which is available at www.asx.com.au. Any information or opinions expressed in this presentation are subject to change without notice. Reliance should not be placed on information or opinions contained in this presentation and, subject only to any legal obligation to do so, the Company will not update or keep current the information contained within this presentation.

useNo offer of securities: Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell Company securities in any jurisdiction. In particular this presentation does not include an offer to, and is not for publication or distribution in, the United States of America and its territories or possessions, including to any US person within the meaning of Regulation S of the United States Securities Act of 1933.

Not investment advice: This presentation is not intended and should not be considered to be the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. The information provided in this presentation has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs. Each party to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary.

Forward looking statements: This presentation may include forward-looking statements. Although the Company believes the expectations expressed in such forward-lookingersonalstatements are based on reasonable assumptions, these statements are not guarantees or predictions of future performance, and involve both known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control. As a result, actual results or developments may differ materially from those expressed in the statements contained in this presentation. Investors are cautioned that statements contained in the presentation are not guarantees or projections of future performance and actual results or

developments may differ materially from those projected in forward-looking statements.

Investment risk: An investment in Matrix shares is subject to known risks, and also unknown risks, any of which are beyond the control of the Company. These risks include, among others, counterparty contractual compliance, currency fluctuations, economic and financial market conditions in various territories and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. The Company does not guarantee any particular rate of return or performance of the Company.

No liability: To the maximum extent permitted by law, neither the Company nor its related bodies corporate, directors, employees or agents, nor any other person, accepts any liability, including without limitation any liability arising from fault or negligence, for any direct, indirect or consequential loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

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1H FY22 GROWTH MOMENTUM

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FINANCIAL

• Revenue $13.7m (1H FY21: $8.1m) as recovery in oil & gas market gains momentum
• Growth over preceding 2H FY21 with revenue up from $9.5m.
• Diversification in revenue across traditional oil & gas, corrosion technologies, advanced materials
• EBITDA loss $1.0m, down from $3.7m in 1H FY21 on increased activity
• Focused financial management
• • Current cash balance $10.5m
  • 31 Dec - $7.7m cash1 bolstered by $4.5m on completion of capital raising in Jan 22
  • No trade or term debt

1. As at 31 Dec 2021 - $3.3m restricted cash (security over Henderson facility)

OPERATING

• Drilling riser buoyancy, SURF and well construction orders over 60% of 1H FY22 revenue
• Production capability readily available for traditional oil & gas market
• Local market expansion resulting in strong growth in Corrosion Technology business up to 30% of first half revenue
• Advanced materials business gaining traction - announced contracts with Woodside, Newcrest and FFI.

OUTLOOK

• Increasing activity in offshore oil & gas markets, recovering strongly with oil price at highest point since 2014 and strong capex pipeline
• New drilling riser buoyancy and LGS contracts - recent ~$14m LOI expected to convert to contract in current quarter
• Tender pipeline strengthening in subsea and SURF markets
• Continued growth in Corrosion Technology business
• Increasing exposure to stable and recurring revenue streams

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H1 FY21 FINANCIAL RESULTS

CFO - Brendan Cocks

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KEY FINANCIAL METRICS

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		H1 FY22	H2 FY21	H1 FY21
		Revenue	$m	13.7	9.5	8.1
		Underlying EBITDA1	$m	(1.3)	(2.2)	(2.2)
use	EBITDA	$m	(1.0)	(17.5)	(3.7)
Net profit/(loss) after tax	$m	(3.9)	(21.0)	(7.0)
		Operating cash flow	$m	(0.8)	(3.2)	(0.7)
				31 Dec 21	30 Jun 21	31 Dec 20
ersonal	Gross cash	$m	7.7	7.2	11.5
Net cash/(debt)	$m	7.7	7.2	11.5
Employees		102	65	72

Note: figures may not add up due to rounding.

1 Underlying EBITDA FY22 excludes foreign exchange (FX) losses ($0.3m). Prior periods for FY21 exclude FX losses ($1.3m), non-cash asset impairment costs ($15.0m) and discontinued project write-off prior period ($0.4m).

• Revenue building coming out of lingering impact of weak oil price and COVID-19.
• Revenue up 69% on 1H FY21 and 44% on 2H FY21, including coatings and advanced materials.

Revenue

	15.0
$m	10.0
5.0
	0.0

1H FY21

2H FY21

1H FY22

• Increased activity in traditional oil & gas markets, and Corrosion Technology business revenue growing to $4.1m, up over 250% from $1.6m in 1H FY21.
• Narrowing EBITDA loss poised for return to profit, while remaining focused on cost base.
• Positive net cash position, enhanced after period end on completion of capital raising in Jan 22 to support emerging opportunities.

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