15 slides from Mitchell Services's shareholder meeting presentation, Oct 23, 2024
Slide 1: Annual General Meeting 2024
ANNUAL GENERAL MEETING 2024 23 October 2024 For personal use only ASX:MSV
Slide 2: CEO Presentation
2 For personal use only CEO PRESENTATION Andrew Elf Chief Executive Officer Annual General Meeting 2024
Slide 3: Disclaimer
3 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 4: Agenda
4 AGENDA For personal use only 1. MARKET PROFILE 2. FY24 BUSINESS SUMMARY 3. OVERVIEW 4. OPERATIONAL UPDATE 5. CAPITAL MANAGEMENT UPDATE 6. FY25 STRATEGY 7. FY25 Q1 UPDATE 8. SUMMARY Annual General Meeting 2024
Slide 5: Market Profile
5 MARKET PROFILE For personal use only ASX INFORMATION BOARD OF DIRECTORS ASX Stock Symbol MSV Nathan Mitchell Executive Chairman Shares on Issue (at 21/10/2024) 213,437,297 Scott Tumbridge Non- Executive Director Share Price (at 21/10/2024) A$0.392 Peter Miller Non-Executive Director Market Capital
Slide 6: FY24 Business Summary
6 FY24 BUSINESS SUMMARY For personal use only REVENUE $236.8m EBITDA $40.4m PROFIT AFTER TAX $9.2m 3% 2% 21% FROM $243.1m in FY23 FROM $41.2m in FY23 FROM $7.6m in FY23 OPERATING CASHFLOW $43.1m SAFETY PERFORMANCE RETURN ON INVESTED CAPITAL 16.5% 21% WINNER OF PRESTIGIOUS 34% Annual General Meeting
Slide 7: Overview
7 OVERVIEW For personal use only ▪ Continued demand for drilling services with all FY24 expiring key contracts re-won ▪ Inflationary pressures have eased ▪ The global demand for production related drilling services remains strong compared to the weakening exploration services market ▪ No exposure to
Slide 8: Operational Update
8 OPERATIONAL UPDATE For personal use only ▪ The Company’s customer base remains strong with relevant key contracts re-won in FY24 albeit with fewer operating rigs. ▪ Whilst the Company has been awarded new contracts in other areas, utilisation is expected to soften in response to a variety of facto
Slide 9: Loop: An Unparalleled Partnership
: AN UNPARALLED PARTNERSHIP FROM INDUSTRY FOR INDUSTRY For personal use only • 50/50 JV between MSV and Talisman • Forging over 50 years of drilling specialists experience with contemporary operational expertise • Our aim is to reduce emissions from fugitive gases, and to recycle waste by reusing co
Slide 10: The Loop Full-Service Offering
THE LOOP FULL-SERVICE OFFERING From concept through to execution, our unique capabilities We integrate all aspects of the decarbonisation solution, allow us to manage the decarbonisation solution from end- including health, management systems, safety and For personal use only to-end. environmental r
Slide 11: Decarbonisation: An Opportunity in Disguise
Corporate Strategy Global corporates are aligning decarbonisation DECARBONISATION:AN strategies to net zero by 2050 with interim For personal use only targets by 2030. OPPORTUNITY IN DISGUISE WHAT’S DRIVING CHANGE? Safeguard Mechanism The Safeguard Mechanism has commenced, The transition toward a cl
Slide 12: Capital Management Update
13 CAPITAL MANAGEMENT UPDATE For personal use only Prioritise leverage reduction Sensible Capex allocation Dividends Share buy-backs NET DEBT $1.9m CAPEX $17.0m FY24 DIVIDENDS OF 4.0cps BUYBACK PAYMENTS 89% 35% 91% $2.2m FROM FY23 FROM FY23 FROM FY23 RETURNED TO SHAREHOLDERS Annual General Meeting 2
Slide 13: FY25 Strategy
14 FY25 STRATEGY For personal use only ▪ The overall strategy of the Company is to optimise the long-term growth of the business and returns to shareholders by: ▪ Maintaining and, where possible, improving the profitability of the existing business ▪ Identifying opportunities in the domestic mining
Slide 14: FY25 Q1 Update
15 FY25 Q1 UPDATE For personal use only ▪ Quarterly revenue of $52.7m ▪ Quarterly EBITDA of $7.0m ▪ Strong balance sheet with net debt at $4.8m Foster a culture of Never openly criticise respect, support, trust any team member. ▪ Temporary reduction in utilisation driven by: and recognition. Blame i
Slide 15: Summary
16 SUMMARY For personal use only ▪ FY24 NPAT and ROIC were materially greater than FY23 levels. ▪ Net debt has decreased by 89% since 30 June 2023 with closing net debt at $1.9m ▪ Since the inception of its capital management strategy in early FY23, MSV has reduced net debt by approx. $38m and deliv