Mitchell Services Limited · ASX:MSV
Mitchell Services — Shareholder Meeting (November 2019)
16 slides from Mitchell Services's shareholder meeting presentation, Nov 27, 2019
Slide 1: Annual General Meeting 27 November 2019
For personal use only ANNUAL GENERAL MEETING 27 NOVEMBER 2019 Chief Executive Officer 1 www.mitchellservices.com.au
Slide 2: Disclaimer
DISCLAIMER For personal use only This 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 ASX, whic
Slide 3: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only ASX Information Major Shareholders ASX Stock Symbol MSV Mitchell Group 20.4% Shares Issued 1,742,382,681 Washington H Soul Pattinson 7.39% Share Price (at 25/11/2019) A$0.061 CVC Limited 6.1% Market Capitalisation A$106.2m Board of Directors Sen
Slide 4: FY19 Business Overview
FY19 BUSINESS OVERVIEW For personal use only Revenue of $120.2m EBITDA of $24.1m Net Debt of $8.2m ↑ 65% from FY18 ↑ 286% from FY18 54% reduction from June 2018 Zero Lost Special Strong balance sheet Time Injuries dividend provides flexibility in FY19 with 400+ employees declared in FY19 4 www.mitch
Slide 5: Impact of Increased Utilisation on Revenue
IMPACT OF INCREASED UTILISATION ON REVENUE For personal use only Annual Average Operating Rig Count vs Revenue • Average operating $120.21m revenue per rig continued to increase due to improved productivity, pricing and drilling mix $72.70m • Mitchell Services anticipates further Average increases i
Slide 6: High Quality Revenue Streams
HIGH QUALITY REVENUE STREAMS For personal use only Revenue by Client Type • Tier 1 Clients are large / multinational mining & energy companies • A significant majority of Mitchell Services revenue comes from Tier 1 Clients operating on long life, low cost mine sites 93.4% 89.7% 91.8% • Approximately
Slide 7: FY20 Q1 Overview
FY20 Q1 OVERVIEW For personal use only Strong FY20 Q1 performance Rig Count 70 60 Revenue EBITDA 50 $33.5m $6.2m 40 30 20 10 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Year to 30 Sep 2018 Year to 30 Sep 2019 EBITDA to operating Operating Cash Flow cash conversion rate $5.7m 92% 2500 Shifts Work
Slide 8: Deepcore Acquisition Summary
DEEPCORE ACQUISITION SUMMARY For personal use only The acquisition of Deepcore Holdings Pty Ltd (“Deepcore Drilling”) will make Mitchell Services Deepcore Drilling is Limited (“MSV”) one of the largest and most diversified pure play drilling services companies in Australia a compelling acquisition
Slide 9: Deepcore Acquisition Summary
DEEPCORE ACQUISITION SUMMARY For personal use only Pro forma financials demonstrate strong financial position post-acquisition Pro forma Revenue Pro forma EBITDA Per Pro forma Net Profit Share $190m $14.2m 1.84c $120m 1.38c $9.0m MSV FY19 Post-Acquisition MSV MSV FY19 Post-Acquisition MSV MSV FY19 P
Slide 10: Acquisition Strategic Rationale
ACQUISITION STRATEGIC RATIONALE For personal use only MSV FY19 Actual Revenue by Pro forma Revenue by Commodity: $120m Commodity: $190m 4.4% 2.8% 5.7% 5.5% 14.3% Deepcore Drilling FY20 Forecast Revenue: $70m 37.5% 13.6% 39.5% 62.0% 14.8% Gold Copper Coking Coal Lead/Zinc/Silver Other Gold Copper Cok
Slide 11: Acquisition Strategic Rationale
ACQUISITION STRATEGIC RATIONALE For personal use only MSV FY19 Actual Revenue by Pro forma Revenue by Drilling Type: $120m Drilling Type: $190m 1.2% 0.8% Deepcore Drilling FY20 Forecast Revenue: $70m 43.7% 48.6% 55.1% 50.7% Surface Underground Non-Drilling Surface Underground Non-Drilling Maintains
Slide 12: Acquisition Strategic Rationale
ACQUISITION STRATEGIC RATIONALE For personal use only Increase in revenue diversity by geography MSV FY19 Actual Revenue by Pro forma Revenue by Geography: $120m Geography: $190m 2.4% 1.5% 7.8% 8.6% Deepcore Drilling FY20 Forecast Revenue: $70m 9.2% 14.5% 54.0% 26.6% 75.3% QLD VIC SA WA NSW QLD VIC
Slide 13: Acquisition Strategic Rationale
ACQUISITION STRATEGIC RATIONALE For personal use only Tier 1 client base increase in size and diversity MSV FY19 Actual Revenue by Pro forma Revenue by Client Type: $120m Client Type: $190m 8.2% 13.5% Deepcore Drilling FY20 Forecast Revenue: $70m 91.8% 86.5% Tier 1 Clients Other Clients Tier 1 Clien
Slide 14: Acquisition Strategic Rationale
ACQUISITION STRATEGIC RATIONALE For personal use only Current brands Future brand strategy Mitchell Services Mitchell Services Radco Technologies Radco Technologies Deepcore Drilling Leverage of brands to maintain strong nimble relationships with customers and employees while taking advantage of con
Slide 15: 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 • The acquisition of Deepcore Drilling will further diversify revenue by drilling type, commodity and geography • Mitchell Serv
Slide 16: Conclusion
CONCLUSION For personal use only Questions? 16 www.mitchellservices.com.au
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