Slide 1: Full Year Results Presentation Financial Year 2017
For personal use only FULL YEAR RESULTS PRESENTATION Financial Year 2017 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: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only ASX Information Board of Directors ASX Stock Symbol: MSV Executive Chairman – Nathan Mitchell Shares Issued: 1,476,414,072 Non-Executive Director – Peter Miller Share Price (at 29/8/2017): A$0.037 Non-Executive Director – Robert Douglas Market C
Slide 4: 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 • 7.8% improvement in Total Recordable Injury Frequency rate yea
Slide 5: 2017 Business Overview
2017 BUSINESS OVERVIEW For personal use only 8,357 shifts in FY2017 Total recordable injury 200+ frequency rate improved by ↑ 28% from FY2016 7.8% experienced employees from FY2016 Total revenue of $40.30m 330% increase 22% Major project wins increase geographical diversity and in EBITDA to ↑ materi
Slide 6: Results Overview
RESULTS OVERVIEW Profit & Loss For personal use only Revenue ($000's) FY17 FY16 FY15 Change 50,000 $000's $000's $000's % 40,000 Revenue 40,303 32,970 25,233 22% 30,000 2nd Half 2nd Half EBITDA 2,238 522 (4,322) 328% 20,000 2nd Half EBIT (3,197) (4,795) (12,648) (33%) 10,000 1st Half 1st Half NPBT (
Slide 7: Group Debt Profile
GROUP DEBT PROFILE For personal use only Balance sheet reflective of growth organisation in an improving market Principal Debt Maturity Shareholder Loans 10 • Originated in 2015 as a funding mechanism Millions 8 for the Nitro asset acquisition 6 • Interest at 10% pa. 4 • Matures July 2020 2 • Secure
Slide 8: Capital Expenditure
CAPITAL EXPENDITURE For personal use only 6.00 Millions • Growth capital expenditure is primarily made up of new rigs and ancillary 5.00 equipment to support growth in the underground and large diameter 4.00 markets 3.00 • Maintenance capital expenditure 2.00 includes all capital expenditure on exis
Slide 9: Operating Revenue by Client Type
OPERATING REVENUE BY CLIENT TYPE For personal use only Strong year on year revenue growth Tier 1 Revenue $40.30m Other Revenue VALUE OF TIER 1 $32.97m • Large / multinational mining and energy companies $25.17m • Very high safety and 92.5% business system 87.5% requirements $15.02m 64.6% 36.7% •
Slide 10: Impact of Increased Utilisation on Revenue
IMPACT OF INCREASED UTILISATION ON REVENUE For personal use only $40.30m • Mitchell Services was EBITDA positive $32.97m at less than 35% annual rig utilisation in current pricing $25.17m environment in FY17 Average Operating Rig Count • We expect to be at Average Operating Rig Count 21.6 60%+ rig u
Slide 11: Operating Revenue by Commodity
OPERATING REVENUE BY COMMODITY For personal use only FY15 $25.17m FY16 $32.97m FY17 $40.30m 1.3% 3.1% 5.3% 6.8% 12.6% 14.0% 18.7% 28.6% 20.4% 32.8% 2.6% 13.2% 21.2% 44.4% 18.5% 4.8% 46.0% 50.9% 48.7% 5.5% Gold Copper Coal Lead/Zinc/Silver Other Management remains mindful of the importance of diversi
Slide 12: Operating Revenue by Drilling Type
OPERATING REVENUE BY DRILLING TYPE For personal use only FY15 $25.17m FY16 $32.97m FY17 $40.30m 4.6% 2.0% 1.3% 3.8% 22.6 % 33.9 % 64.8 75.4 % 91.7 % % Surface Underground Non-Drilling Increase in underground revenue strengthens overall revenue diversity Management remains mindful of the importance o
Slide 13: Leverage in an Improving Market
LEVERAGE IN AN IMPROVING MARKET For personal use only • STAGE 1: UTILISATION INCREASES • More rigs start working (This is happening) • STAGE 2: PRODUCTIVITY IMPROVES AS UTILISED RIGS WORK MORE SHIFTS • Seasonality impact reduces as rigs work through the wet season (This is starting to happen in limi
Slide 14: Market Outlook
MARKET OUTLOOK For personal use only • Competitive Profile of the market has improved but has now stabilised. • New entrants are still faced with barriers to entry such as high capital cost and inability to secure financing. • Copper and zinc are strengthening in Queensland. • Gold in Western Austra
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 • Significant increase in rig utilisation to circa 40 rigs in the near future. • Successful geographical expansion to date and e