16 slides from Mitchell Services's shareholder meeting presentation, Oct 26, 2016
Slide 1: Annual General Meeting - CEO Presentation
For personal use only ANNUAL GENERAL MEETING 26 OCTOBER 2016 Chief Executive Officer Presentation 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 Vision
MITCHELL SERVICES VISION For personal use only To be Australia’s leading provider of drilling services to the global exploration, mining and energy industries Be Sure. Be Safe Our people are your success Management Safety Leading Systems Operational Value Find a better way Team Technology Capability
Slide 4: 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 • Numerous initiatives implemented to further strengthen safety culture and performance • Mitchell Services has had no lost time injuries since Nov
Slide 5: 2016 Business Overview
2016 BUSINESS OVERVIEW For personal use only Total revenue of $32.97m 600+ days lost time injury free POSITIVE EBITDA on less than 30% utilisation ↑ 31% from FY2015 FY15 SHIFTS FY16 SHIFTS OPERATING SHIFTS 800 700 600 Nitro acquisition and 500 integration completed 400 on time and on budget 300 200
Slide 6: Business Optimisation Strategy
BUSINESS OPTIMISATION STRATEGY For personal use only Phase 1: Business Ready Phase 2: Ramp Up Phase 3: Refinement COMPLETE COMPLETE COMPLETE & ONGOING • ISO certification and • Implement initiatives to improve • Take advantage of strong position implementation of electronic safety culture and perfor
Slide 7: Results Overview
RESULTS OVERVIEW For personal use only Statutory Profit & Loss Revenue ($000's) 40,000 FY16 FY15 Change 30,000 2H $000's $000's % 20,000 2H 10,000 2H 1H Revenue 32,970 25,233 31% - 1H 1H EBITDA 522 (4,322) 112% FY14 FY15 FY16 EBIT (4,795) (12,648) 62% Statutory EBITDA ($000's) NPBT (6,049) (16,999)
Slide 8: Operating Revenue by Client Type
OPERATING REVENUE BY CLIENT TYPE For personal use only Tier 1 operating income* $32.63m Other operating income $24.69m VALUE OF TIER 1 • Large / multinational mining and energy companies $28.85m • Very high safety and business $16.26m system requirements $14.07m • Generally brownfield work for exist
Slide 9: Operating Revenue by Commodity
OPERATING REVENUE BY COMMODITY For personal use only FY2014 $14.07m FY2015 $24.69m FY2016 $32.63m 12.3% 3.5% 6.9% 2.2% 2.1% 21.0% 12.7% 19.1% 20.8% 33.2% 2.6% 13.2% 21.2% 44.4% 18.5% 15.8% 5.5% 48.8% 46.4% 49.7% Gold Copper Coal Lead/Zinc/Silver Other Management remains mindful of the importance of
Slide 10: Operating Revenue by Drilling Type
OPERATING REVENUE BY DRILLING TYPE For personal use only FY2014 $14.07m FY2015 $24.69m FY2016 $32.63m 1.2% 2.7% 1.0% 6.6% 3.9% 22.8% 76.2% 92.2% 93.4% Surface Underground Non-Drilling Management remains mindful of the importance of diversification in revenue streams including diversity in the mix be
Slide 11: Adjusted EBITDA
ADJUSTED EBITDA For personal use only ADJUSTED EBITDA ($000’s) UP FRONT RAMP UP COSTS FOR 2 YEAR EVOLUTION CONTRACT 2,535 NITRO ACQUISITION RESTRUCTURE & INTEGRATION COSTS COSTS 522 REPORTED EBITDA ($000’s) Please note ADJUSTED EBITDA represents non-IFRS information that has not been subject to an a
Slide 12: Is the Bottom Behind Us?
IS THE BOTTOM BEHIND US? AUS Steam Coal Avg FOB Nwcstle (AU$/tonne)2 For personal use only Mineral Exploration Meters Drilled (000’s)1 100 90 80 70 60 2013 2014 2015 2016 30 LBMA-Silver Price (AU$/oz)2 25 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Slide 13: Business Development
BUSINESS DEVELOPMENT For personal use only Annual revenue from existing Tier one contracts Circa $30million based on current workloads • Highly focused on lead generation • Strong tender pipeline across Tier 1 and other clients requires equipment that MSV already owns • Increase in revenue growth de
Slide 14: Market Outlook
MARKET OUTLOOK For personal use only • Competitive Profile of the market 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 sector showi
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 • Tender pipeline provides opportunity for further revenue growth • Mitchell Services can utilise acquired assets and generate
Slide 16: Conclusion - Questions?
CONCLUSION For personal use only Questions? 16 www.mitchellservices.com.au