Slide 1: Half-Year Results Presentation
For personal use only HALF-YEAR RESULTS PRESENTATION December 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 frequency and severity of safety incidents has continued to decrease. • Mitchell Services has had no lost time injuries since November 2014. • Numerous initiatives implemented to further strengthen safety culture and
Slide 4: 1H16 Business Overview
1H16 BUSINESS OVERVIEW For personal use only Average rig utilisation Tier 1 client revenue Total revenue 12 vs 20 ↑ 178% ↑ 88% HY2015 vs HY2016 25 2014 2015 OPERATING RIG COUNT 20 Nitro acquisition and 15 integration completed 10 on time and on budget 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 5: Business Optimisation Strategy
BUSINESS OPTIMISATION STRATEGY For personal use only Phase 1: Business Ready Phase 2: Ramp Up Phase 3: Refinement COMPLETE COMPLETE CONTINUING • ISO certification and • Implement initiatives to improve • Take advantage of strong position implementation of electronic safety culture and performance in
Slide 6: Business Refinement
BUSINESS REFINEMENT For personal use only Rigs in MSV Fleet Nitro Drilling Tom Browne Acquisition Rationalisation Acquisition Drill Torque Rigs 28 28 28 29 29 29 29 29 29 29 52 52 52 52 52 52 52 52 77 73 73 65 52 52 Mar14 Aug14 Sep14 Nov14 Dec14 Mar15 Aug15 Sep15 Nov15 Dec15 Feb14 Feb15 May14 May15
Slide 7: Business Refinement: Use of Asset Sale Funds
BUSINESS REFINEMENT For personal use only Use of Asset Sale Funds • Strategic sales of non-core 18% Debt Repayments assets completed for $6.32 44% Capital Expenditure million. Evolution Ramp Up 38% • Reduction in commercial debt facilities. • Optimisation of fleet mix to Asset Sales Commercial Debt
Slide 8: Results Overview
RESULTS OVERVIEW For personal use only Statutory Profit & Loss Revenue ($000's) 30,000 1H16 1H15 Change 20,000 2H $000's $000's % 10,000 2H 1H 1H 1H Revenue 18,472 9,808 88% - FY14 FY15 FY16 EBITDA 131 (1,113) 112% EBIT (2,467) (2,607) 5% Statutory EBITDA ($000's) NPBT (3,116) (2,917) (7%) FY14 FY15
Slide 9: Revenue by Client Type
REVENUE BY CLIENT TYPE For personal use only Tier 1 operating income* $18.29m Other operating income VALUE OF TIER 1 • Large / multinational mining $9.63m $15.45m and energy companies • Very high safety and business system $5.57m requirements $4.13m • Generally brownfield work $0.65m for existing mi
Slide 10: Operating Revenue by Commodity
OPERATING REVENUE BY COMMODITY For personal use only HY2014 $4.13m HY2015 $9.63m HY2016 $18.29m 13.2% 4.1% 9.5% 3.3% 2.6% 12.9% 23.5% 21.1% 2.6% 21.2% 13.2% 44.4% 24.8% 21.2% 44.4% 18.5% 5.6% 18.5% 40.5% 54.6% Gold Copper Coal Lead/Zinc/Silver Other Strategic focus on diversifying commodity mix 10 w
Slide 11: Operating Revenue by Drilling Type
OPERATING REVENUE BY DRILLING TYPE For personal use only HY2014 $4.13m HY2015 $9.63m HY2016 $18.29m 1.6% 4.9% 1.3% 10.5% 5.9% 12.8% 87.9% 89.2% 85.9% Surface Underground Other Underground has grown by 314% from HY2015 to HY2016 11 www.mitchellservices.com.au
Slide 12: Adjusted EBITDA
ADJUSTED EBITDA For personal use only ADJUSTED EBITDA ($000’s) EVOLUTION RAMP UP COSTS 2,009 NITRO ACQUISITION RESTRUCTURE & INTEGRATION COSTS COSTS 131 REPORTED EBITDA ($000’s) Please note ADJUSTED EBITDA represents non-IFRS information that has not been subject to an audit or review at 31 December
Slide 13: Balance Sheet
BALANCE SHEET For personal use only 31 Dec 15 30 Jun 15 Change $000’s $000’s % Cash and cash equivalents 3,295 516 539% • Overall improved Trade and other receivables 5,514 7,149 (23%) liquidity. Other current assets 2,277 18,438 (88%) Total current assets 11,086 26,103 (58%) Property, plant and equ
Slide 14: Second Half Outlook
SECOND HALF OUTLOOK For personal use only • Continue to pursue strong pipeline of Tier 1 contracts. • Focus on Tier 1 and brownfield / production drilling. • Continue to increase rig utilisation. • Purchase 4 additional rigs to service Tier 1 contracts post 31 December 2015 funded through a combinat
Slide 15: Market Outlook
MARKET OUTLOOK For personal use only • Competitive Profile of this market segment has continued to improve. • New entrants are faced with barriers to entry such as high capital cost and inability to secure financing. • Pipeline of identified opportunities continues to grow. • Greenfield exploration