FORWARD-LOOKING STATEMENTS
Certain information and statements contained in this presentation contain forward‐looking information or statements (“forward–looking statements”) within the meaning of applicable
securities laws. All forward looking statements such as efficiencies, rationalizations and investments forward‐herein that are not clearly historical in nature constitute forward‐looking
statements, and the words “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “propose”, “predict”, “potential”, “continue”, or the negative of these
terms or other comparable terminology are generally intended to identify forward‐looking statements. These statements involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. The projections, estimates and beliefs contained in such forward-
looking statements are based on management’s assumptions relating to the production performance of Magellan’s assets and competition throughout the aerospace industry and
continuation of the current regulatory and tax regimes in the jurisdictions in which the Corporation operates, and necessarily involve known and unknown risks and uncertainties which may
cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking
statements.
Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. In particular, the Corporation has not adjusted or revised any
forward-looking statements in this report to account for the potential disruption to its business from the novel coronavirus outbreak, the impact from which is not immediately known or
quantifiable. These risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available
under the Corporation’s profile at www.sedar.com.
Past performance of the Corporation referred to in this presentation is shown for illustrative purposes only, does not guarantee future results of the Corporation and is not meant to forecast,
imply or guarantee the future performance of the Corporation, which will vary.
Throughout this discussion, reference is made to EBITDA (defined as net income before interest, income taxes, depreciation and amortization) and Adjusted EBITDA (earnings before
interest expense, income taxes, depreciation and amortization, goodwill impairment and restructuring), which the Corporation considers to be an indicative measure of operating
performance and a metric to evaluate profitability. EBITDA and Adjusted EBITDA are not generally accepted earnings measures and should not be considered as alternatives to net income
(loss) or cash flows as determined in accordance with IFRS. As there is no standardized method of calculating this measure, the Corporation’s EBITDA and Adjusted EBITDA may not be
directly comparable with similarly titled measures used by other companies.
Readers are cautioned that the foregoing list of factors affecting forward‐looking statements is not exhaustive. Furthermore, the forward‐looking information and statements are made as of
the date of this presentation, and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward‐looking information or statements, whether as
a result of new information, future events or otherwise, expect as required by applicable law. The forward‐looking statements contained in this presentation are expressly qualified by this
cautionary statement.
Annual General Meeting 2024 2
N. MURRAY EDWARDS
CHAIRMAN OF THE BOARD OF DIRECTORS
» Welcome and Remarks
» Receipt of Financial Statements for 2023
» Election of Directors
» Appointment of Auditors
» Other Business
Annual General Meeting 2024 3
PHILLIP C. UNDERWOOD
PRESIDENT AND CHIEF EXECUTIVE OFFICER
» Financial Summary
» Business Highlights
» Strategic Summary
Annual General Meeting 2024 4
» Revenue
» Gross Profit
» EBITDA
» Capital Expenditure
Annual General Meeting 2024 5
FINANCIAL SUMMARY
KEY FINANCIAL METRICS
Revenue Gross Profit
Millions
Millions
$1,200 $180
21.0%
Gross Profit as a % of Revenues
$1,000 $150 18.0%
$800 $120 15.0%
12.0%
$600 $90
9.0%
$400 $60
6.0%
$200 $30
3.0%
$- $- 0.0%
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
EBITDA Capital Spend
Millions
Millions
$180 15.00% $60 6.0%
Capital Spend as a % of Revenues
EBITDA as a % of Revenues
$150 $50 5.0%
12.00%
$120 $40 4.0%
9.00%
$90 $30 3.0%
6.00%
$60 $20 2.0%
3.00%
$30 $10 1.0%
$- 0.00% $- 0.0%
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Annual General Meeting 2024 6
FINANCIAL SUMMARY
KEY FINANCIAL METRICS
Inventory Contract Assets
Millions
Millions
$80
$250
$200 $60
$150
$40
$100
$20
$50
$- $-
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Annual General Meeting 2024 7
» Global Presence
» Industry Update
» Key Contract Announcements
» 2023 Revenues by Customer and Segment
Annual General Meeting 2024 8
GLOBAL BUSINESS UNITS
3,850 Global
Population
NORTH AMERICA EUROPE INDIA
Winnipeg, MB Wrexham, UK Bangalore (Magellan)
Kitchener, ON Greyabbey, UK Tumkur (Magellan)
Mississauga, ON Blackpool, UK Belgaum (API)
Haley, ON Kelbrook, UK
Headquarters: New York, NY (x3) Mielec, Poland
Mississauga, ON Haverhill, MA Marignane, France
TSX: MAL Middletown, OH
Phoenix, AZ (Glendale)
Phoenix, AZ (ENA)
Annual General Meeting 2024
2024
Industry Update
Annual General Meeting 2024 10
INDUSTRY UPDATE
MARKET OVERVIEW - COMMERCIAL
Commercial air travel Domestic air travel Strong demand driving
recovery continued in 6.7% above pre- record order backlogs
2023 pandemic levels in 2023:
IATA reported International air travel Airbus - 8,598 aircraft
industry-wide travel 94.5% of pre- Boeing - 6,216 aircraft
was within 1% of 2019 pandemic levels
levels by November Build rates increasing
2023
Boeing issues causing 737 rates currently A350 rates expected to
significant concerns capped by FAA at hit 7/month in 2024,
within supply base 38/month. Revised while A330 moves to
over build rates rates TBD 4/month
Engine and raw 777 is at 3/month A320 build expected to
material supply issues reach 62/month late
also constraining 787 is expected to 2024 and 75/month in
growth in certain areas reach 5/month in 2024 2026
Annual General Meeting 2024 11
INDUSTRY UPDATE
MARKET OVERVIEW - DEFENCE
Robust demand due to rising US FY 2024 defence budget is 3.2%
geopolitical tensions higher than FY 2023, and 13.4%
higher than 2022
Defence readiness and fleet
modernization brought to forefront US $43.6 billion allotted to aircraft
procurement
Europe has seen the steepest year-
on-year increase in military Manufacturers forecasted to build
expenditures in 30 years over 3,431 fighters between 2024
and 2032
Lockheed delivered 98 F-35 fighters New US Navy orders for F/A-18E/F
in 2023 compared to 153 planned extend production end into 2027
To be replaced from 2025.
US DOD paused their deliveries
pending TR-3 configuration approval Legacy helicopter programs (AH-64
Apache, H-60 Blackhawk and V-22
Build rate has not been reduced Tiltrotor) remain consistently strong
Annual General Meeting 2024 12
2023
Key Contracts Announcements
13
KEY CONTRACTS ANNOUNCEMENTS
2023
Magellan announced strategic contracts in key sectors including:
AIRBUS
14
BUSINESS OVERVIEW
2023 REVENUES BY CUSTOMER AND SEGMENT
8%
2%
3% 3% Aerostructures
3% 13%
6% 25% Aeroengines and
Repair and Overhaul
Casting
8% 55%
24%
Specialty Products
and Other
10%
18%
10%
11%
Commercial
37%
Airbus Others
Boeing Raytheon Technologies Defense
General Electric BAE
63%
Canadian Forces (Military) MDA
Rolls Royce GKN
Honeywell
Annual General Meeting 2024 15
» Challenges & Opportunities
» Strategic Goals
Annual General Meeting 2024 16
MAGELLAN AEROSPACE STRATEGY
CHALLENGES AND OPPORTUNITIES
CHALLENGES IMPACT RESULTS & OPPORTUNITIES
Utility costs significantly increased
Rehabilitating customer contracts
HYPERINFLATION - CPI at record levels
Realistic labour agreements
- Workforce expectations
Pre-pandemic revenue – ($137m, 13%) Continued restructuring of factories and
- High level of under absorption product
UNDERUTILIZATION - Idle plant & equipment Move work to underutilized facilities
Move product to lower cost facilities
- Higher Single Aisle deliveries with
Long Range programs now picking up
lower Long Range aircraft impacted
787 back in production
PRODUCT MIX margins (787 / 777X / A350)
Address legacy Single Aisle pricing
- Limited new platforms
Target programs to diversify product mix
- 737 MAX issues
17
Annual General Meeting 2024
MAGELLAN AEROSPACE STRATEGY
CHALLENGES AND OPPORTUNITIES
CHALLENGES IMPACT RESULTS & OPPORTUNITIES
- Shortfalls in forgings / raw materials
- Failing suppliers impacting our quality and Numerous products now dual sourced
SUPPLY CHAIN delivery Strategic suppliers
DISRUPTION - Dual sourcing to protect customers Reduced claims from customers
- Unrealistic buffer demand from customers Agility in our supply chain management
- L.D. claims from customers
Survey in 2024
WORKFORCE - Significant investment in training
Launched global leadership
ENGAGEMENT - Union expectations
development program
Implemented action plans to improve
engagement
Annual General Meeting 2024 18
MAGELLAN AEROSPACE STRATEGY
STRATEGIC GOALS
Grow Magellan as the supplier of choice
STRATEGY
to the global aerospace industry
Strategic Goals Strategic Enablers
Business growth in selected markets Vision Grow a balanced portfolio with customers
• Year on year revenue and profit growth Nurture an ownership mentality
& Mission
Solid balance sheet Manage inventory and supply chain
• Cash generative Strategic Goals Generate returns on invested capital
Operational excellence Focus on quality & deliver on commitments
• Zero defects and 100% on-time Apply MOSTM consistently
Strategic Enablers
Engaged workforce Lead and respect for people
• Safe and great place to work Develop teams and future leaders
Division Action Plans
Environmental, Social, and Governance Environmental and social sustainability
• Path to sustainability Live with purpose
Annual General Meeting 2024 19
ENVIRONMENTAL SOCIAL GOVERNANCE
OUR COMMITMENT
• GHG reduction, water conservation and waste reduction targets well
established
• Corporate Sustainability Policy launched, posted on Magellan website
• In 2023, all sites certified to ISO 14001 environmental standard
• On track for Health & Safety ISO 145001 alignment across all sites
• Closely monitoring evolving disclosure standards and global reporting
frameworks
• Focus on operational excellence aligned with ESG principles:
• Environmental – Improve operational efficiency to decrease
demands on energy and water, to generate less waste, and to lower
carbon footprint
• Social – Engage, trained employees in a safe workplace to lower
employee turnover and consistently deliver quality product on time.
• Governance – Operate with integrity, accountability and
transparency consistent with high standards of corporate
governance.
Annual General Meeting 2024 20
MAGELLAN AEROSPACE
SUMMARY
2023 ACHIEVEMENTS AND KEY AREAS OF FOCUS
2023 Achievements Key Areas of Focus
• Significant revenue and profit growth • Continued focus on profitable growth
• Balance Sheet remains strong • Prioritize working capital improvements
• Progressed our zero defects programs • Focus on quality and delivery
• Rehabilitated a significant number of customer • Continue to rehabilitate underperforming contracts
contracts • Be well positioned to meet our customers needs
• Workplace engagement program launched • Further develop our workplace engagement program
• ESG framework established and all sites now • Monitor evolving ESG disclosure standards and
ISO 14001 certified global reporting frameworks
Annual General Meeting 2024 21
Annual General Meeting 2024
