Tear Sheet: Mattamy Group Corp.

The strength of the company's margins, supported by its pricing, has continued to more than offset its weak ongoing (sales) activity levels and we expect EBITDA of close to C$1.0 billion a year in 2023 and 2024. With its borrowings (net of cash) likely remaining at or below recent levels (C$1.75 billion as of Aug. 30, 2022) over this span, we anticipate its overall leverage will likely stay near this improved level. Broader economic headwinds will likely further limit Mattamy's closing volumes to an estimated 7,200 homes in 2023 (ends May 2023), which is down from an average of about 8,000 over the past two years but still close to its pre-COVID levels. We expect most of the decline will

...We expect Mattamy's debt to EBITDA will remain at or below 2x for the third straight year in 2023. The strength of the company's margins, supported by its pricing, has continued to more than offset its weak ongoing (sales) activity levels and we expect EBITDA of close to C$1.0 billion a year in 2023 and 2024. With its borrowings (net of cash) likely remaining at or below recent levels (C$1.75 billion as of Aug. 30, 2022) over this span, we anticipate its overall leverage will likely stay near this improved level. Slower industry-wide sales volumes pose a risk. Broader economic headwinds will likely further limit Mattamy's closing volumes to an estimated 7,200 homes in 2023 (ends May 2023), which is down from an average of about 8,000 over the past two years but still close to its pre-COVID levels. We expect most of the decline will occur in its more-competitive U.S. markets. Mattamy's key Toronto homebuilding operations appear to be on solid footing. This single market accounts for one-third...

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