Slide 1: Half-Year Results Presentation
For personal use only HALF-YEAR RESULTS PRESENTATION December 2016 1 www.mitchellservices.com.au
Slide 2: Disclaimer
DISCLAIMER For personal use only This investor presentation has been prepared by Mitchell Services Limited (“the Company”). Information in this presentation is of a general nature only and should be read in conjunction with the Company’s other periodic and continuous disclosure announcements to the
Slide 3: Safety Update
SAFETY UPDATE For personal use only • Finishing each day without harm is a core Mitchell Services value • Key initiatives implemented to strengthen safety culture and performance have primarily focused on key risks and field leadership • Five recordable injuries occurred across the organisation duri
Slide 4: 1st Half FY17 Business Overview
1ST HALF FY17 BUSINESS OVERVIEW For personal use only Total revenue of $20.8m Revenue from underground Cash flow from operations operations increased by ↑ 13% $2.4m 168% from 1st Half FY16 ↑ 915% from 1st Half FY16 from 1st Half FY16 2015 SHIFTS 2016 SHIFTS OPERATING SHIFTS 1000 EBITDA $2.6m 800 ↑ 1
Slide 5: Results Overview
RESULTS OVERVIEW For personal use only Profit & Loss Revenue ($000's) 1st Half 1st Half 1st Half Change 40,000 FY17 FY16 FY15 $000's $000's $000's % 30,000 2nd Half Revenue 20,843 18,472 9,808 13% 20,000 EBITDA 2,559 131 (1,113) 1857% 2nd Half EBIT (114) (2,467) (2,607) 95% 10,000 1st Half 1st Half
Slide 6: Operating Revenue by Client Type
OPERATING REVENUE BY CLIENT TYPE For personal use only Other Operating Income Mitchell Services will continue to build a baseload of Tier 1 clients Tier 1 Operating Income $20.70m TIER 1 CLIENTS Other Operating Income $18.29m • Large / multinational mining and energy companies • Very high safety and
Slide 7: Operating Revenue by Commodity
OPERATING REVENUE BY COMMODITY For personal use only 1st Half FY15 $9.63m 1st Half FY16 $18.29m 1st Half FY17 $20.70m 4.1% 3.3% 0.6% 9.5% 15.3% 21.1% 12.9% 23.5% 26.7% 2.6% 24.8% 13.2% 21.2% 44.4% 18.5% 5.6% 6.2% 54.6% 51.1% 40.5% Gold Copper Coal Lead/Zinc/Silver Other Management remains mindful of
Slide 8: Operating Revenue by Drilling Type
OPERATING REVENUE BY DRILLING TYPE For personal use only 1st Half FY15 $9.63m 1st Half FY16 $18.29m 1st Half FY17 $20.70m 4.9% 1.3% 0.6% 5.9% 12.8% 30.3% 89.2% 85.9% 69.0% Surface Underground Non-Drilling Management remains mindful of the importance of diversification in revenue streams including di
Slide 9: Market Outlook
MARKET OUTLOOK For personal use only • Competitive Profile of the market has continued to improve, however, pricing remains competitive • Pipeline of identified opportunities remains strong within Tier 1 clients • Clients are more active across greenfield and brownfield sectors • Ability to leverage
Slide 10: Summary
SUMMARY For personal use only • Mitchell Services’ vision is to be Australia’s leading provider of drilling services to the global exploration, mining and energy industries • Tender pipeline provides opportunity for further revenue growth • Previous acquisitions of surface assets early in the cycle