Mitchell Services Limited · ASX:MSV
Mitchell Services — Noosa Mining and Investment Conference 2022
12 slides from Mitchell Services's conference presentation, Jul 21, 2022
Slide 1: Noosa Mining and Investment Conference
NOOSA MINING AND INVESTMENT CONFERENCE JULY 2022 ASX:MSV
Slide 2: Disclaimer
2 DISCLAIMER 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 conjunction with objecti
Slide 3: Agenda
3 AGENDA 1. Market profile 2. Fast facts 3. Overview 4. Revenue and earnings growth into FY23 NOOSA MINING AND INVESTMENT CONFERENCE 5. MSV is returning funds to shareholders 6. Debt profile 7. Strong cash generation in FY23 8. Why invest in Mitchell services? 9. Summary
Slide 4: Market Profile
4 MARKET PROFILE ASX INFORMATION BOARD OF DIRECTORS ASX Stock Symbol MSV Nathan Mitchell Executive Chairman Shares Issued 225,401,769 Scott Tumbridge Executive Director Share Price (at 12/07/2022) A$0.375 Peter Miller Non-Executive Director Market Capitalisation A$84.53m Robert Douglas Non-Executive
Slide 5: Fast Facts – Business Update
5 FAST FACTS – BUSINESS UPDATE RIGS EXPERIENCED EMPLOYEES 50+ YEARS BRAND HISTORY 100 750 + NOOSA MINING AND INVESTMENT CONFERENCE FY22 REVENUE GUIDANCE $200M-$220M INDUSTRY LEADING CIRCA 90% OF REVENUE IS FROM SAFETY PERFORMANCE FY22 EBITDA GUIDANCE AND CULTURE GLOBAL MINING $31-$35M MAJOR CLIENTS
Slide 6: Overview
6 OVERVIEW ▪ High commodity prices driving increasing demand for drilling services from explorers through to multi-nation resource companies. ▪ Supply constraints on rigs is supporting increased utilisation, pricing and contract terms ▪ Company’ organic growth strategy of pre-ordering new drilling r
Slide 7: Revenue and Earnings Growth into FY23
7 REVENUE AND EARNINGS GROWTH INTO FY23 FY21 FY22 FY23 Expect material NOOSA MINING AND INVESTMENT CONFERENCE $200m – increase in $220m revenue and $191.4m earnings $25.9m $31m-$35m Revenue EBITDA
Slide 8: MSV is Returning Funds to Shareholders
8 MSV IS RETURNING FUNDS TO SHAREHOLDERS A disciplined approach to capital management. Over the next two years MSV will significantly reduce the company’s debt profile while paying strong dividends and buying back shares BUY-BACK DIVIDENDS Where appropriate, funds from rig sales (if any) will be Div
Slide 9: Debt Profile
9 DEBT PROFILE ▪ Capital expenditure in FY23 to be limited where it makes sense to do so and will be cash funded Balance Estimated Balance Average cost Fixed or variable ▪ Gross debt will reduce materially in FY23 to 30/06/22 30/06/23 of debt interest rate approximately $27m (a reduction of ~36% yea
Slide 10: Strong Cash Generation in FY23
10 STRONG CASH GENERATION IN FY23 A portion of free cashflows will be used to reduce leverage and the company has no present intention to raise equity to reduce leverage or for any other reason REVENUE EBITDA FY23 FY23 NOOSA MINING AND INVESTMENT CONFERENCE FUNDS FOR RETURNS TO SHAREHOLDERS FY23 CAP
Slide 11: Why Invest in Mitchell Services?
11 WHY INVEST IN MITCHELL SERVICES? ▪ World class rig fleet ▪ Strong client base ▪ Revenue and earnings will grow materially year on year into FY23 ▪ Focused capital management strategy over the next 2 years delivering: o Significant reduction in net debt to $15m by the end of FY24 NOOSA MINING AND
Slide 12: Summary
12 SUMMARY ▪ Mitchell Services expects to generate full year FY22 revenue and EBITDA of $200m-$220m and $31m-$35m respectively ▪ FY23 is expected to drive a material year on year increase in earnings ▪ Quality brand with long history and high quality revenue streams ▪ Strong cash flow generation ▪ T
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