Slide 1: Full Year Results Financial Year 2024
FULL YEAR RESULTS FINANCIAL YEAR 2024 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 1. MARKET PROFILE AGENDA 2. FY24 BUSINESS SUMMARY 3. OVERVIEW 4. OPERATIONAL UPDATE 5. PROFIT AND LOSS 6. RETURN ON INVESTED CAPITAL 7. BALANCE SHEET 8. CASH FLOW 9. DEBT PROFILE 10. CAPITAL EXPENDITURE 11. CAPITAL MANAGEMENT UPDATE 2024 FULL YEAR RESULTS 12. FY25 STRATEGY 13. SUMMARY 14. DEFINITI
Slide 4: Market Profile
4 MARKET PROFILE ASX INFORMATION BOARD OF DIRECTORS ASX Stock Symbol MSV Nathan Mitchell Executive Chairman Shares on Issue (at 21/08/2024) 213,923,502 Scott Tumbridge Non- Executive Director Share Price (at 21/08/2024) A$0.385 Peter Miller Non-Executive Director Market Capitalisation A$82.4m Robert
Slide 5: FY24 Business Summary
5 FY24 BUSINESS SUMMARY 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% 2024 FULL YEAR RESULTS NATIONAL SAFETY AWARD
Slide 6: Overview
6 OVERVIEW ▪ Continued demand for drilling services with all FY24 expiring key contracts re-won ▪ Inflationary pressures have eased ▪ The drilling services market for global mining majors and existing producers is stronger than exploration which remains soft. ▪ No exposure to Lithium or Nickel ▪ Hig
Slide 7: Operational Update
7 OPERATIONAL UPDATE ▪ 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 factors including: ▪ The re
Slide 8: Loop: An Unparalleled Partnership from Industry for Industry
: AN UNPARALLED PARTNERSHIP FROM INDUSTRY FOR INDUSTRY • 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 coal mine methane • Firs
Slide 9: 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 to-end. environmental risk. Our extensive ope
Slide 10: Decarbonisation: An Opportunity in Disguise
Corporate Strategy Global corporates are aligning decarbonisation DECARBONISATION:AN strategies to net zero by 2050 with interim targets by 2030. OPPORTUNITY IN DISGUISE WHAT’S DRIVING CHANGE? Safeguard Mechanism The Safeguard Mechanism has commenced, The transition toward a clean energy future is h
Slide 11: Safeguard Mechanism: Big Polluters on Notice
AUSTRALIA’S EMISSIONS-INTENSIVE MINES FACE UNFORESEEN FUTURE UNDER NEW SAFEGUARD MECHANISM SCHEME REFORMS 07 July 2023 SAFEGUARD MECHANISM: BIG POLLUTERS ON NOTICE AS AUSTRALIA’S ERA OF CLIMATE GRIDLOCK ENDS 27 Mar 2023
Slide 12: Profit and Loss
12 PROFIT AND LOSS Material increase in post tax earnings $50m $40m $30m $41.2m $40.4m $20m $10m $10.3m $13.3m $7.6m $9.2m $0m FY23 FY24 2024 FULL YEAR RESULTS EBITDA EBT NPAT ▪ Relatively similar EBITDA generation to FY23 on reduced rig utilisation with the second half of the previous year having b
Slide 13: Return on Invested Capital
13 RETURN ON INVESTED CAPITAL $100m 20.0% $80m 16.0% $60m $76.4m 12.0% $68.5m $40m 8.0% $20m $26.7m 4.0% $20.2m $12.6m $14.8m $0m 0.0% FY23 FY24 2024 FULL YEAR RESULTS PPE & Intangibles Working capital EBIT ROIC ▪ ROIC increased substantially from 12.3% in FY23 to 16.5% in FY24. This was in line wit
Slide 14: Balance Sheet
14 BALANCE SHEET BALANCE SHEET REMAINS STRONG HEADING INTO FY25 30-Jun-24 30-Jun-23 Change $000's $000's % Balance Sheet Summary • Overall reduction in net asset position due Current assets 57,466 56,782 1.2 to the FY24 dividends and share buy-back Non-current assets 69,941 77,823 (10.1) payments To
Slide 15: Cash Flow
15 CASH FLOW EXCEPTIONAL CASHFLOW PERFORMANCE OPERATING CASH FLOW SUMMARY ▪ Strong EBITDA and working capital FY24 FY23 Change performance have driven an exceptionally strong FY24 cashflow performance. $000's $000's % ▪ Operating cashflows of $43.1m (at a CCR of Receipts from customers 266,503 266,8
Slide 16: Debt Profile
16 DEBT PROFILE SIGNIFICANT REDUCTION IN DEBT AND LEVERAGE FACILITY ▪ FY24 performance delivered a 89% reduction in net debt with closing net debt just $1.9m 30-Jun-24 30-Jun-23 Movement ▪ Current blended average cost of debt is approximately $000's $000's $000's 5.68% p.a with all interest rates fi
Slide 17: Capital Expenditure
17 CAPITAL EXPENDITURE DISCIPLINED ALLOCATION OF CAPITAL YEAR ON YEAR CAPITAL EXPENDITURE $50m ▪ Total capital expenditure for FY24 was $17.0m, largely in line with expectations and increased 34.9% when compared to the $40m $12.6m spend in FY23. $18.0m ▪ The Company remains committed to a capital $3
Slide 18: Capital Management Update
18 CAPITAL MANAGEMENT UPDATE 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 2024 FULL YEAR RESULTS • A key aspect of FY24’
Slide 19: FY25 Strategy
19 FY25 STRATEGY ▪ 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 sector to provide new
Slide 20: Summary
20 SUMMARY ▪ 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 delivered returns to shareh
Slide 21: Definitions
21 DEFINITIONS Capex Capital expenditure Cash Conversion The ratio of A to B; where A is the reported cash flows from operating activities (excluding interest and income tax paid) and B is the reported EBITDA Ratio Earnings before interest, tax, depreciation and amortisation; calculated as NPAT plus
Slide 22: Contact
CONTACT Andrew Elf Chief Executive Officer 112 Bluestone Circuit Seventeen Mile Rocks Qld 4073 PO Box 3250 Darra Qld 4076 P: 07 3722 7222 M: 0413 608 018 E: a.elf@mitchellservices.com.au