Slide 1: The Capital Network Investor Presentation
THE CAPITAL NETWORK INVESTOR PRESENTATION For personal use only 24 November 2022 ASX:MSV
Slide 2: Disclaimer
2 DISCLAIMER For personal use only This investor presentation has been prepared by Mitchell Services Limited (“the Company”). The information contained in this presentation does not take into account the investment Information in this presentation is of a general nature only and should be read in co
Slide 3: Agenda
3 AGENDA For personal use only 1. Market profile 2. History 3. FY22 Business Summary 4. Revenue and earnings growth into FY23 5. Overview 6. Strong cash generation in FY23 7. MSV is returning funds to shareholders 8. Why invest in Mitchell Services The Capital Network Investor Presentation 9. FY23 Q
Slide 4: Market Profile
4 MARKET PROFILE For personal use only ASX INFORMATION BOARD OF DIRECTORS ASX Stock Symbol MSV Nathan Mitchell Executive Chairman Shares on Issue (at 14/11/22) 222,394,033 Scott Tumbridge Executive Director Share Price (at 14/11/22) A$0.395 Peter Miller Non-Executive Director Market Capitalisation A
Slide 5: History of Mitchell Services
5 HISTORY OF MITCHELL SERVICES For personal use only 1969 2008 2013 2014/15 2018/19 2021/22 2023/24 The Mitchell family and its management Mitchell Drilling Multiple earnings Focus on team re-enter the begins drilling in accretive Shareholder Australian market Queensland acquisitions returns as part
Slide 6: FY22 Business Summary
6 FY22 BUSINESS SUMMARY For personal use only 44,086 SHIFTS IN FY22 SAFETY PERFORMANCE EXPERIENCED EMPLOYEES 3.4% 750 INDUSTRY LEADING + DRIVEN BY CRITICAL RISK CONTROL VERIFICATION FROM FY21 PROGRAM Currently over 800 employees RIGS FY22 REVENUE EBITDA OF $32.2M IN FY22 The Capital Network Investor
Slide 7: Revenue and Earnings Growth into FY23
7 REVENUE AND EARNINGS GROWTH INTO FY23 For personal use only FY23 FY22 FY21 FY23 Expect material FY22 increase $213.4M in revenue $191.4M FY21 Average Average June 2022 operating rig operating rig operating rig Expect The Capital Network Investor Presentation count count count was material 71.6 74.
Slide 8: Overview
8 OVERVIEW For personal use only ▪ High commodity prices driving increasing demand for drilling services from explorers through to multi-nation resource companies. ▪ Supply constraints on rigs is supporting increased utilisation, pricing and contract terms ▪ Company’s organic growth strategy of pre-
Slide 9: Strong Cash Generation in FY23
9 STRONG CASH GENERATION For personal use only IN FY23 A portion of free cashflows will be used to reduce leverage and the company has no present intention to raise equity to reduce leverage or for any other reason REVENUE EBITDA FY23 FY23 FUNDS FOR RETURNS TO The Capital Network Investor Presentati
Slide 10: MSV Is Returning Funds to Shareholders
10 MSV IS RETURNING FUNDS TO SHAREHOLDERS For personal use only A disciplined approach to capital management. Over the next two years MSV will significantly reduce the company’s debt profile while paying strong dividends and buying back shares BUY-BACK DIVIDENDS Where appropriate, funds from rig sal
Slide 11: Why Invest in Mitchell Services?
11 WHY INVEST IN MITCHELL For personal use only SERVICES? ▪ World class rig fleet ▪ Strong client base ▪ Revenue and earnings will grow materially year on year into FY23 ▪ Focused capital management strategy over the next 2 years delivering: o Significant reduction in net debt to $15m by the end of
Slide 12: FY23 Q1 Update
12 FY23 Q1 UPDATE For personal use only RECORD REVENUE $61.1m 81 AVERAGE OPERATING RIGS EBITDA $10.1m 16%FROM FY22Q1 17% FROM FY22Q1 24% FROM FY22Q1 CAPITAL INVETSMENT PROGRAM GROSS DEBT $38.8m CAPEX $3.6m The Capital Network Investor Presentation COMPLETE WITH ALL 12 LF160 RIGS OPERATING FOR GLOBAL
Slide 13: Summary
13 SUMMARY For personal use only ▪ Mitchell Services generated FY22 revenue and EBITDA of $213.4m and $32.2m respectively ▪ FY23 is expected to drive a material year on year increase in earnings ▪ Quality brand with long history and high quality revenue streams ▪ Strong cash flow generation ▪ Target