Cematrix Corporation · TSX:CEMX
Cematrix — Investor Presentation (December 2019)
36 slides from Cematrix's investor presentation, December 2019
Slide 1: December 2019
December 2019 TSX.V: CVX | OTCQB: CTXXF
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that may be deemed "forward-looking statements". All statements in this document, other than statements of historical fact, that address events or developments that CEMATRIX (“the Company”) expects to occur, are forward looking
Slide 3: Who We Are
Who We Are CEMATRIX is a leading North American supplier and installer of a proprietary, high quality, lightweight cellular concrete Cellular concrete is a technologically advanced specialized premium construction material It is primarily used in lightweight construction in below-ground applications
Slide 4: Key Investor Considerations
Key Investor Considerations Fastest growing industry leader across North America • Both organic and through strategic M&A • Revenues have grown from CDN $7.6M in 2017 to anticipated $25-$27.5M in 2019 • Current Backlog, which includes 2019 forecasted sales ~ $78M of contracted/verbally awarded (main
Slide 5: Our History
Our History May 2018 – Completed the acquisition of MixOnSite, 2009 – began developing the one of the four leading suppliers of cellular concrete infrastructure market across Canada, in the U.S. > Total consideration of $2.0M USD in obtaining provincial approvals, getting cash, $0.75M in vendor take
Slide 6: Our Current Corporate Structure
Our Current Corporate Structure CEMATRIX Corporation Pacific International Grout MixOnSite CEMATRIX Canada Bellingham (PIGCO) Chicago (MOS) Calgary H.O. (CEM) Strong presence in North America Strong presence in NE & Central US Serving Canada coast to coast Proven profitability Proven profitability P
Slide 7: What Is Cellular Concrete - It is not Concrete
What Is Cellular Concrete - It is not Concrete A construction material consisting of Portland cement, water, Portland cement based specialized pre-formed foaming agent and compressed air “No Aggregates” It is highly flowable and can be pumped into place over large distances (up to 1,000 m) through f
Slide 8: How Is It Made?
How Is It Made? Can satisfy small or large project CEMATRIX cellular concrete is requirements and will produce made using Mobile Batch Plants from 20 to 200 m3 CCC per hour • 10 dry plants used for high volume projects – replacement cost $15 million – 30+ year life if maintained regularly; Unit mobi
Slide 9: Proprietary Technology
Proprietary Technology Advanced material mix design - optimizes strengths, densities and other characteristics Advanced foaming agents - higher strengths at lower densities than the competition Only CC tunnel grout supplier in North America that has 3 Dry mix units and support equipment, including t
Slide 10: Who are our Customers
Who are our Customers Customers include Engineering Companies, Commercial Contractors, Public-Private Partnerships (P3) Who design materials into projects Kiewit, Stantec, Jacobs Engineering, Chicago Bridge and Iron, SAK, McNally, Barnard, KBR, Turner Construction, Whiting-Turner Contracting, Lafarg
Slide 11: Strategic Partnership
Strategic Partnership Joint Marketing and Regional Expansion Agreement Lafarge is part of LafargeHolcim, the leading global building materials and solutions company CEMATRIX - a leading North American customer Raw material cost reduction to CEMATRIX • Creates most competitive pricing in the industry
Slide 12: Three Business Verticals
Three Business Verticals Infrastructure Industrial Commercial Including Tunnels & Mining & Seismic • Road and Runways • Service Roads • Buildings • MSE Panel Backfill • MSE/Retaining Walls • Parking structures • Bridge Abutment Backfill • Facility Under-slab • Roof Decks • Tunnel Grouting • Pipe-rac
Slide 13: Cellular Concrete Replaces Other Products
Cellular Concrete Replaces Other Products CEMATRIX is a clear North American leader because it can produce CC Use of substitute typically driven by: lighter, stronger and at a lower cost • Cost • Structural requirements than any competitor in the industry • Specification requirements • Better soluti
Slide 14: Competitive Advantages
Competitive Advantages CEMATRIX saves time and money for its customers and provides a better overall long-term solution to the legacy products it replaces in any construction application, while also being environmentally friendly CEMATRIX cellular concrete is considered best in class within the indu
Slide 15: Revenue Model
Revenue Model $5,000 - $500,000 $500,000 - $15,000,000 Project Type State, Provincial and Municipal Large Highway, Airport, Typical larger contracts Industrial and Tunnels Including P3 Type projects will range between $1M EPS Blocks Typical Sales Cycle 1 week - 6 months 3 Months to 5 Years or More t
Slide 16: Growth Strategy
Growth Strategy Lobbying/educating the Engineering & Construction Industry 1 about benefits & advantages of cellular concrete 2 Successful execution of projects – referrals & reputation 3 M&A of other CC suppliers & complementary companies 4 Strategic alliances Expansion into international markets f
Slide 17: Financials
CEMATRIX Cellular Concrete Solutions
Slide 18: Combined Sales Growth (CDN $'s)
Combined Sales Growth (CDN $’s) Revenue EBITDA 40-45 MM 45.0 40.0 35.0 Current bid pipeline is approximately $275M CAGR ~ 81.45% YoY combines Organic and M&A 30.0 25-27.5 MM 25.0 20.0 17.3 MM 15.0 10.0 7.6 MM 6-7 MM 5.0 3-4 MM 1.7 MM 0.0 2017 2018 2019 (f) 2020 (f) * * Projected with PIGCO CVX: TSX.
Slide 19: Capital Market Profile
Capital Market Profile Exchange and Ticker Info: TSX-V: CVX | OTC: CVXXF Corporate Headquarters: Calgary, Canada Shares Fully Diluted: 93,043,880 52 Week High / Low: $0.33/$0.16 Market Capitalization: 11 November 2019 ~$17.0 million Inside Ownership: > 10% Cash and Cash Equivalents: ~$1.4M Debt: ~$8
Slide 20: Management
Management Jeff Kendrick the CEO and one of the founders of CEMATRIX is a Chartered Accountant with 20 years experience in Cellular Concrete including project management, operating equipment, quality control and general labour Pat Stephens the founder of Pacific International Grout has over 40 years
Slide 21: Investment Summary
Investment Summary North American Leader State of the art equipment, Significant growth in in Cellular Concrete market, foaming agent and other the lucrative infrastructure tunnel grouting, technologies, proprietary technologies markets that exceed billions quality control and safety Current bid pip
Slide 22: Project
CEMATRIX Cellular Concrete Solutions 22
Slide 23: Airport Runways – Reagan International, Washington DC
Airport Runways – Reagan International - Washington DC Floating slab over weak and unstable base to expand runway aprons. Airport is built along a river. All soils along or near waterways, marshes, wetlands or over glacial silts etc. are extremely weak. You can either remove all the bad soils and re
Slide 24: Industrial – Diesel Refinery – Fort Saskatchewan
Industrial – Diesel Refinery – Fort Saskatchewan Insulating subbase for significant portion of the NWR Diesel Refinery protecting all manor of water lines, sewer lines, conduits, etc. underneath, while providing a subbase for the concrete slabs and facility infrastructure Cellular concrete was selec
Slide 25: Tunnel Grouting – Brightwater, Seattle
Tunnel Grouting Brightwater - Seattle Tunnel Backfill with multiple carrier pipes inside tunnel Cellular concrete was selected over heavy grouts because it was the only viable solution in an extremely risky gout project due to the number of Pipes in the tunnel CEMATRIX (MixOnSite) was selected becau
Slide 26: Road Base & IADOT Bridge – Iowa
Road Base & IADOT Bridge 8 - IOWA Lightweight road base over weak and unstable soils Cellular concrete was selected over EPS Block and other lightweight aggregates because of cost and time savings CEMATRIX (MixOnSite) was selected because it was the better solution at the right price and one of the
Slide 27: MSE Backfill – Expo Light Rail, California
MSE Backfill Expo Light Rail - California Cellular concrete was selected to reduce the vertical and horizontal loads on the underlying soils and MSE walls to mitigate future movement and/or subsidence. The alternatives would have been granular fill which would create issues noted above, EPS Block wh
Slide 28: Tunnel Heavy Grout – California
Tunnel Heavy Grout - California Tunnel Backfill – Arrowhead Tunnels, San Bernardino CA Cellular concrete was selected over heavy grouts by the project team for its superior qualities and cost savings CEMATRIX (Pacific International Grout) was selected because PIGCO are the premier suppliers of cellu
Slide 29: Cellular Concrete vs EPS Blocks – Wisconsin
Cellular Concrete vs EPS Blocks Geotechnical - Wisconsin Marquette Interchange, Milwaukee Cellular concrete was selected over EPS Block, and/or other lightweight aggregates or gravel because of its superior qualities and cost savings CEMATRIX (Pacific International Grout) was selected because Cellul
Slide 30: Industrial – SAGD Process Facility, Lloydminster
Industrial – SAGD Process Facility - Lloydminster Insulating subbase for all of the Paradise Hills SAGD facility Cellular concrete was collected because of the better overall solution it provided, in a significantly reduced time period, at a significantly reduced cost. In the past for all oilsands g
Slide 31: Commercial – Montreign Casino, New York
Commercial – Montreign Casino - New York Load Reducing Fill Cellular concrete was selected to replace heavy soil backfill to reduce the load on the underground perimeter wall because of the better overall solution it provided, in a significantly reduced time period, at a significantly reduced cost C
Slide 32: MSE Backfill – Kenaston Overpass, Winnipeg
MSE Backfill Kenaston Overpass - Winnipeg Backfill for Bridge Abutments and MSE Panels Cellular concrete was selected over granular fills and dirt because of the better overall solution it provided over weak and unstable soils, in a significantly reduced time period. The alternatives would have been
Slide 33: Road Base – Holland Marsh, Ontario
Road Base Holland Marsh - Ontario Holland Marsh – provided a floating base over weak and unstable soils (peat moss) to support highway structure Cellular concrete was selected over all other materials because the CC solution eliminated the need to dig out over 7 metres of week and unstable soils and
Slide 34: Tunnel Grouting – North Saskatchewan River, Edmonton
Tunnel Grouting North Saskatchewan River - Edmonton Tunnel Grout Cellular concrete was selected over traditional heavy grouts because the air bubbles within the CC act as frictionless ball bearings enabling the CC to be pumped long distances under low pressure. A traditional grout was scheduled to t
Slide 35: Tunnel Heavy Grout – Washington
Tunnel Heavy Grout - Washington Tunnel Backfill – Brightwater Conveyance Tunnel Cellular concrete was selected over traditional heavy grouts because cellular can be pumped long distances under low pressure in significantly less time at a lower material cost CEMATRIX (Pacific International Grout) was
Slide 36: Thank you
Thank you CEMATRIX Bristol IR Corporate Head Office Investor Relations Contact 5440 – 53rd Street SE Calgary, AB Glen Akselrod 403.219.0484 905 326 1888 www.CEMATRIX.com www.bristolir.com [email protected] [email protected]