Matrix Composites & Engineering : June 22 Results Investor Presentation

MATRIX COMPOSITES & ENGINEERING

2022 FULL YEAR RESULTS PRESENTATION

Aaron Begley - CEO

Brendan Cocks - CFO

31 August 2022

WWW.MATRIXENGINEERED.COM

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 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 or 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 Full 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.

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.

No 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.

Forward looking statements: This presentation may include forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements 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

2

FY22 GROWTH TRAJECTORY

FINANCIAL

OPERATING

• Revenue $28.6m (FY21:			• Subsea buoyancy revenue up 51%
$17.6m)
			on FY21

• Continued growth half on half

through FY21 and FY22	• Corrosion Technology business
	expanding with 81% revenue growth

OUTLOOK

•	Emerging from challenging COVID-19
	induced period with strong growth
	prospects
•	Increasing activity in offshore oil & gas

• Diversification across rebounding oil & gas market, growing corrosion technologies and advanced materials
• Underlying EBITDA loss $2.3m, down from $4.4m in FY21
• Focused financial management with cash on hand $7.6m (FY21: $7.2m) and no trade or term debt

• Advanced materials solutions continues traction into resources sector, and into renewables
• Establishing first deep water hyperbaric test chamber in the southern hemisphere suitable for the oil & gas industry - fully funded via WA Govt and SICA
• Key environmental accreditation with ISO 14001 certification

	markets, ~$30m in recent drilling riser
	buoyancy, SURF contracts
•	Corrosion Technology business
	increasing Matrix's exposure to stable,
	recurring revenue streams
•	Advanced materials business
	broadening into clean energy
• Offshore floating wind on radar ~$50m
	of new quotes
• New orders of $30m plus recurring

revenue from coatings and well
construction will lead to significant	3
revenue growth in FY23

DELIVERING ON INITIATIVES IN FY22

SUBSEA

• Capitalising on oil & gas recovery
• Increased presence in SURF and subsea market
• New deep water drilling riser buoyancy contracts
• Opportunities appearing in Offshore Wind

CORROSION TECHNOLOGIES

• Fully integrated business into
  Matrix's operations
• Anti-corrosioncoating, equipment, technical services expanded in local energy and resources sectors
• Building sustainable revenue

ADVANCED MATERIALS

• Further exposure to resources sector
• New opportunities opened up, particularly renewables
• Momentum in Matrix's diversification strategy

4

FY22 FINANCIAL RESULTS

CFO - BRENDAN COCKS