Slide 1: Full Year Results Presentation Financial Year 2015
For personal use only FULL YEAR RESULTS PRESENTATION Financial Year 2015 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 • Even though rig utilisation has increased the incidence and severity of safety incidents has continued to decrease. • The company has retained ISO-14001, ISO- 9001, OHSAS-18001 and AS/NZS 4801 safety, environment and quality certifications • Numerous initiatives
Slide 4: 2015 Business Overview
2015 BUSINESS OVERVIEW For personal use only Average rig utilisation Tier 1 client revenue Total revenue 7.8 vs 13 ↑ 195% ↑ 68% 2014 vs 2015 20 OPERATING RIG COUNT 15 Tom Brown acquisition and 10 integration completed on time and under budget 5 - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 4 www
Slide 5: Subdued General Market Conditions Continue
SUBDUED GENERAL MARKET CONDITIONS CONTINUE Commodity Price Trends* For personal use only • General market conditions remain challenging with the prices of major revenue generating commodities reducing throughout FY15 • Demand for drilling services in the greenfield exploration sector remain subdued
Slide 6: Business Optimisation Strategy
BUSINESS OPTIMISATION STRATEGY For personal use only Phase 1: Business Ready Phase 2: Ramp Up Phase 3: Refinement • ISO certification and • Implement initiatives to improve • Take advantage of strong position implementation of electronic safety culture and performance in key markets safety, training
Slide 7: Results Overview
RESULTS OVERVIEW For personal use only Statutory Profit & Loss Revenue ($000's) 20,000 2015 2014 Change 15,000 $000's $000's % 10,000 5,000 Revenue 25,291 15,015 68% - EBITDA (4,322) (3,070) (41%) 1H14 2H14 1H15 2H15 EBIT (12,648)* (5,669) (123%) Statutory EBITDA ($000's) NPBT (13,174) (6,286) (110%
Slide 8: Operating Revenue by Client Type
OPERATING REVENUE BY CLIENT TYPE For personal use only Tier 1 operating income* $24.69m Other operating income VALUE OF TIER 1 16.26 • Multinational mining and $14.07m energy companies • Very high safety and 5.52 business system requirements • Generally brownfield work for existing mining operators
Slide 9: Operating Revenue Split
OPERATING REVENUE SPLIT For personal use only FY2014 $14.07m FY2015 $24.69m 12.6% 6.9% 12.3% 2.1% 21.0% Gold 10.3% 20.4% Copper Coal 15.8% Lead/Zinc Other 48.8% 49.7% Management mindful of managing risk by commodity mix 9 www.mitchellservices.com.au
Slide 10: Adjusted EBITDA
ADJUSTED EBITDA (218) For personal use only ADJUSTED NITRO EBITDA INTEGRATION COSTS ANGLO RAMP UP COSTS (4,322) OTHER RAMP UP TOM BROWNE COSTS INTEGRATION COSTS CAPITAL RAISE COSTS RESTRUCTURE COSTS REPORTED EBITDA Please note ADJUSTED EBITDA represents non-IFRS information that has not been subject
Slide 11: Balance Sheet
BALANCE SHEET For personal use only 30 Jun 15 06 Jul 15* Change Actual $ Pro-forma $ % Current assets 26,103 8,864 (66%) Property, plant and equipment 21,262 37,387 76% Other non-current assets 21 21 0% Total assets 47,386 46,272 (2%) Current liabilities 28,378 11,010 (61%) Non-current liabilities 3
Slide 12: Debt Commitments
DEBT COMMITMENTS For personal use only 2 YEAR FACILITY REPAYMENT SCHEDULE 300 250 200 Payment 150 Principle 100 Interest 50 0 Reduced commitment over Christmas wet season period 30 Jun 15 30 Jun 14 Change $ $ % Equipment leases/loans 1,708 1,924 (11.2%) Debt to equity ratio Working capital/insurance
Slide 13: Nitro Integration Update
NITRO INTEGRATION UPDATE For personal use only • Asset integration complete with full service history loaded into our business systems • Inventory integration scheduled to be complete by 30 September 2015 • Strategic plan in place to sell surplus over time and reduce debt accordingly • Nitro integra