Summary of Mattercorp (MTTR.F) FY Conference Call - August 27, 2025 Company Overview - Mattercorp is a materials technology organization focused on converting basic materials into designed products for critical infrastructure end markets [2][3] - The company has undergone significant transformation over the past four years, including a name change, divestiture of eight businesses, and acquisition of three [2] Business Segments - Mattercorp operates in two segments: 1. **Connection Technologies**: Focuses on electrification-related products, including wire and cable solutions [4][5] 2. **Composite Technologies**: Concentrates on liquid management products, replacing legacy materials with composites [2][6] Market Position and Growth Drivers - Approximately 90% of revenue is derived from North America, with a strong focus on U.S. and Canadian markets [3] - The company anticipates benefiting from long-term investments in capital infrastructure driven by population growth, electrification, and digitization [3] - Demand exceeds supply across all product lines, indicating strong growth potential [12][13] Financial Performance and Projections - The company has seen substantial revenue growth and modest EBITDA margin improvement despite undergoing transformation [21] - Projected capital spending for 2026 is expected to normalize between $40 million to $50 million, significantly lower than previous years [19] - Maintenance CapEx is approximately $15 million annually, indicating low capital intensity [19] Operational Efficiency and Manufacturing - Focus on improving operational execution and manufacturing efficiency without requiring additional capital investments [14] - Investment of approximately $200 million in North American manufacturing facilities over the past two years, including four new facilities [16][17] - The company aims for a consistent 10% growth year-over-year, over 20% EBITDA margin, and over 70% free cash flow conversion rate [23] Debt Management and Shareholder Returns - The company has moved from a net cash position in 2024 to taking on modest debt for acquisitions, with plans for consistent deleveraging [24][25] - Share buybacks have been a priority, with approximately 14% of outstanding shares repurchased over the last 2.5 years [26] Challenges and Risks - The company faces tariff-related challenges, particularly with copper tariffs affecting supply chain costs [30][32] - Uncertainty in the marketplace may lead to delayed customer purchases and projects, impacting near-term demand [33] Conclusion - Mattercorp has completed its portfolio transformation and is positioned to focus on operational execution, revenue growth, and margin expansion moving forward [27][29]

Core Insights - IHS Markit is a global leader in critical information, analytics, and solutions for major industries and markets that drive economies worldwide [1] - The company serves over 50,000 key business and government customers, including 80% of the Fortune Global 500 and leading financial institutions [1] - IHS Markit is headquartered in London and is committed to sustainable, profitable growth [1] Company Overview - IHS Markit provides next-generation information, analytics, and solutions aimed at improving operational efficiency for its customers in business, finance, and government [1] - The company focuses on delivering deep insights that enable well-informed and confident decision-making [1]

Financial Performance - The company's revenue for the first half of FY2025 was HK$1.27 billion, a decrease compared to HK$1.32 billion in the same period of FY2024[34] - Gross profit decreased from HK$618.82 million in 1H FY2024 to HK$596.68 million in 1H FY2025[34] - Profit attributable to owners of the company decreased from HK$50.76 million in 1H FY2024 to HK$32.96 million in 1H FY2025[34] - The interim dividend decreased from HK 5.6 cents/share to HK 4 cents/share[26, 34] - The company's cash and bank balance was HK$308 million[26] - The gross margin increased slightly from 46.8% to 47.0%[26, 34] - Operation profit margin decreased from 5.1% to 3.7%[34] - Net profit margin decreased from 3.7% to 2.4%[34] Store Network - The company has a physical store retail network of 314 stores in Hong Kong and 62 overseas stores[28] - The number of stores in Singapore increased by 1, from 47 to 48[29, 30] - As of October 2024, the company operated 314 stores in Hong Kong, 48 in Singapore, and 9 in Macau[28, 29, 30, 44, 46, 67] Market Performance - Revenue from Hong Kong was HK$1.10 billion[44] and accounted for 86.6% of the total revenue[42] - Singapore contributed 11.6% to the group's revenue, with revenue of HK$147.99 million[42, 46] - Macau's revenue contribution was 1.8% of the total revenue[42] Strategies and Outlook - The company will focus on Hong Kong, Singapore, and Macau markets[50] - The company plans to expand its store network with a net increase of 1 store in Hong Kong in 2H FY2025 and 3 in FY2026[67] - The company plans to expand its store network with a net increase of 1 store in Singapore in FY2026[67] - The company plans to expand its store network with a net increase of 1 store in Macau in FY2026[67]

Group 1 - Panasonic plans to cut 10,000 jobs, representing about 4% of its workforce of nearly 230,000, with 5,000 roles in Japan and 5,000 overseas [1][2] - The company aims to enhance operational efficiency by reviewing sales and indirect departments, and optimizing personnel globally [2] - The job cuts are expected to incur costs of nearly $900 million and will be implemented within the current financial year ending in March 2026 [2] Group 2 - Panasonic shares increased by 2% in Tokyo following the announcement [3] - The company is looking to reduce its dependence on China for electric vehicle batteries, with plans to minimize Chinese supply in the future [3] - In 2022, Panasonic adopted a four-day workweek in Japan to improve employee well-being and reduce overwork-related health issues [3][4]

Financial Performance - In Q1 2025, the company reported an 8% decline in revenue and a 67% reduction in adjusted EBITDA compared to Q1 2024, which was below expectations [6][10] - The financial foundation remains solid with liquidity of $272 million and a net secured debt reduction to $624 million, resulting in a net secured leverage ratio of 2.9 times covenant EBITDA [10][16] Business Segment Performance - In the Cellular Specialty segment, quarterly net sales decreased by $5 million to $201 million, with operating income down $7 million to $31 million due to higher input costs and operational challenges [11][12] - The cellulose commodities segment saw net sales decline by $19 million to $75 million, with operating results improving by $6 million year-over-year to a loss of $13 million [12][13] - The new biomaterials segment maintained steady net sales at $7 million, with operating income flat at $2 million [13] - Paperboard segment net sales decreased by $4 million to $49 million, resulting in an operating loss of $2 million, down $10 million [14] - High yield pulp segment net sales declined by $3 million to $31 million, with operating losses increasing to $7 million due to lower market pricing and reduced volumes [15][29] Market Dynamics - The company faces significant challenges from tariffs, particularly a 25% tariff imposed by China on US-sourced cellulose commodities, affecting approximately $85 million of annual revenue [9][10] - The company is actively mitigating tariff risks through customer advocacy, market diversification, and operational adjustments [18][21] Strategic Direction - The company plans to focus on tariff mitigation actions, increase production of non-fluff commodities, and pursue high-return, low-risk strategic investments [19][30] - The biomaterials growth strategy remains intact, with key projects expected to advance and final investment decisions anticipated in the second half of the year [20][30] Management Commentary - Management acknowledged the challenging start to the year and ongoing uncertainties in the global market but expressed confidence in the resilience of the core business [81][82] - The company has lowered its full-year guidance for adjusted EBITDA to a range of $175 million to $185 million, reflecting the impact of tariffs and production issues [10][22] Other Important Information - The company expects unfavorable foreign exchange adjustments of $5 million due to a weakened US dollar against the Canadian dollar and euro [23] - Maintenance capital expenditure remains at $85 million, primarily driven by extended planned maintenance outages [24] Q&A Session Question: Conditions in the fluff pulp market with China's retaliatory tariffs - Management indicated that some Chinese customers continue to place orders but do not expect this to last long due to tariff costs, leading to a pivot towards non-tariff markets like India and Africa [35][36] Question: Evolution of volumes following Liberation Day - Management noted that volumes were lower than expected due to pre-orders and concerns about tariffs, with a significant drop in orders during April, but a resumption of orders was expected in May [40][44] Question: Evolution of paperboard guidance for 2025 - Management confirmed that the risk of tariffs on paperboard did not materialize, and pricing is expected to decrease by approximately 5% due to increased supply from new capacity [47][50]