Mattr (MATR) 2024 Southwest IDEAS Conference summary

Business transformation and strategic focus

• Transitioned from pipeline services to focus on four core businesses aligned with infrastructure, energy, and water needs.

• Divested all pipeline-exposed businesses, emphasizing complex manufacturing and material conversion.

• Core segments: Composite Technology (spoolable composite pipe, Xerxes tanks) and Connection Technology (engineered wire/cable, heat shrink tubing).

• Products target high-risk, high-value applications in industrial, oil/gas, and automotive sectors.

• Emphasis on North American manufacturing footprint and supply chain decoupling from China.

Growth strategy and financial targets

• Set long-term goals: 10%+ annual revenue growth, 20%+ EBITDA margin, 70%+ free cash flow conversion.

• Major organic investment in new North American production facilities to be completed by mid-2025.

• Share buybacks remain active, with 10% of shares repurchased and ongoing NCIB participation.

• Capital allocation balanced between organic growth, share repurchases, and strategic acquisitions.

• Trading below 5x EBITDA, with significant upside compared to industrial peers.

Recent acquisition and integration plans

• Announced acquisition of AmerCable, a U.S.-based engineered wire and cable manufacturer, for CAD 400 million.

• Transaction expected to close around year-end, with integration and commercial synergies targeted for late 2025 and 2026.

• AmerCable expands U.S. manufacturing footprint, enabling access to Buy American Act projects and medium voltage cable markets.

• Acquisition is over 40% accretive per share on day one and aligns with growth and margin targets.

• Modest capital deployment expected to drive substantial growth in AmerCable.