Matrix Service : Q2 FY24 Presentation

COMPANY OVERVIEW

WHO WE ARE

Matrix is a top tier North American energy and industrial engineering and construction

contractor committed to delivering the highest

quality work - safely, on time, and on budget.

LEADER IN ENERGY & INDUSTRIAL INFRASTRUCTURE SOLUTIONS

INFRASTRUCTURE MEGATRENDS PROVIDE LONG RUNWAY AND

MULTI-BILLION DOLLAR PROJECT OPPORTUNITY PIPELINE

OUR PURPOSE

We build a brighter future, improve quality of life, and create long-term value for our people,

business partners, shareholders, and communities.

OUR VISION

To be the company of choice for engineering, constructing, and maintaining the energy and industrial infrastructure that people rely on

around the world.

Headquarters: Tulsa, Oklahoma with offices throughout the United States and Canada, as well as in Sydney, Australia, Seoul, South Korea, and Dubai, UAE

NASDAQ Stock Symbol: MTRX

Primary Operations: North America and select international countries

Earnings: Driven by work in both traditional and emerging energy markets and industrial facilities

Balance Sheet: Consistently strong with minimal to no debt

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• STORAGE TANKS AND TERMINALS
• • SPECIALTY VESSELS INCLUDING COMPLEX CRYOGENIC INFRASTRUCTURE
  • ATMOSPHERIC STORAGE TANKS (FLAT BOTTOM TANKS)
  • MAINTENANCE AND UPGRADES
• SPECIALTY TANK PRODUCTS

• STORM REPAIRS

EXTERNAL MARKET FACTORS

GLOBAL PANDEMIC:

• ENERGY DEMAND DESTRUCTION
• CLIENTS PAUSE CONSTRUCTION PROJECTS, DEFER MAINTENANCE

• MINIMAL PROJECT OPPORTUNITIES IN HIGHLY COMPETITIVE MARKET RESULTING IN:

• LOW MARGIN OPPORTUNITIES
• LOW REVENUE VOLUME
• SIGNIFICANT UNDER-RECOVERY OF CONSTRUCTION OVERHEAD COSTS

INCREASING GLOBAL FOCUS ON ENERGY TRANSITION

INTERNAL COMPANY ACTIONS

REDUCED COSTS, REORGANIZED, AND STREAMLINED THE BUSINESS

FOCUSED EFFORTS ON CORE TRADITIONAL AND EMERGING MARKETS SUPPORTED BY OUR EXPERTISE

DISPOSED OF UNDERPERFORMING ASSETS

LAUNCHED ROBUST QUALITY PROGRAM

REBUILT BACKLOG TO COMPANY RECORD OF $1.45

RESTORED HISTORIC DOUBLE-DIGIT GROSS MARGINS

FOUNDATIONAL PRINCIPLES EMBEDDED IN OUR CULTURE AND CORE VALUES

CONSERVATIVE BALANCE SHEET MANAGEMENT | PROTECTING AND DEVELOPING OUR PEOPLE | BUILDING LONG-TERM CLIENT RELATIONSHIPS

NEAR-TERM OUTLOOK

Strong revenue growth beginning in second half of FY2024

Improved consolidated direct margins

Full recovery of construction overhead

SG&A leverage

Improved overall operating results and EBITDA

Achievement of long-term financial targets

FOR ONGOING GROWTH

• Backlog has tripled since FY2021 with significant increases in multi-year project awards, especially in late FY2023 and early FY2024
• Projects allow for historic double-digit margins and full recovery of construction overhead costs

GLOBAL ENERGY SECURITY

• Crude oil
• Refined products
• Natural Gas and Gas Liquids

DOMESTIC ENERGY SUPPLY ASSURANCE

• LNG Storage and Peak Shaving
• Aging and Secure Electrical Infrastructure

CLEAN ENERGY TRANSITION

• Hydrogen, Ammonia
• Natural Gas
• Carbon Capture
• Electrification of Everything

DEMAND FOR OTHER COMMODITIES

• Metals, Mining and Minerals Investment
• Batteries, infrastructure, etc.

FEDERAL INFRASTRUCTURE INVESTMENT

• The Inflation Reduction Act (IRA) Energy and Climate provision provides $391 Billion, although analysts are forecasting the IRA to cost around $1.2 Trillion
• Investment is expected to be a spring-board for an additional $2 Trillion in private infrastructure investments by 2032 and $11 Trillion by 2050
• Resilient, clean, 21st century electric grid
• Supporting the clean energy transition such as: Hydrogen, renewables, EV's, Bio-fuels, Carbon Capture
• Airports including fueling and sustainable aviation fuel investments
• Infrastructure repair, replacement, and electrification which impact Copper, Lithium and other mineral commodities
• Wastewater treatment will require digesters and aluminum covers