Mitchell Services Limited · ASX:MSV
Mitchell Services — Shareholder Meeting (October 2015)
15 slides from Mitchell Services's shareholder meeting presentation, Oct 20, 2015
Slide 1: Annual General Meeting - Chief Executive Officer Presentation
For personal use only ANNUAL GENERAL MEETING 20 OCTOBER 2015 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 incidence and severity of safety incidents has continued to decrease. • The company has retained ISO-14001, ISO- 9001, OHSAS-18001 and AS/NZS 4801 safety, environment and quality certifications • Numerous initiatives
Slide 5: Business Optimisation Strategy
BUSINESS OPTIMISATION STRATEGY For personal use only Phase 1 : Business Ready (FY14) Phase 2: Ramp Up (FY15) Phase 3: Refinement (FY16) • ISO certification and • Implement initiatives to improve • Take advantage of strong position implementation of electronic safety culture and performance in key ma
Slide 6: Adjusted EBITDA
ADJUSTED EBITDA (218) For personal use only ADJUSTED NITRO EBITDA INTEGRATION COSTS ANGLO RAMP UP COSTS (4,322) OTHER RAMP UP TOM BROWNE COSTS INTEGRATION COSTS CAPITAL RAISE COSTS RESTRUCTURE COSTS REPORTED EBITDA Please note ADJUSTED EBITDA represents non-IFRS information that has not been subject
Slide 7: 2015 Business Overview
2015 BUSINESS OVERVIEW For personal use only Average rig utilisation Tier 1 client revenue Total revenue 7.8 vs 13 ↑ 195% ↑ 68% 2014 vs 2015 20 OPERATING RIG COUNT 15 Tom Brown acquisition and 10 integration completed on time and under budget 5 - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 7 www
Slide 8: Operating Revenue by Client Type
OPERATING REVENUE BY CLIENT TYPE For personal use only Tier 1 operating income* $24.69m Other operating income VALUE OF TIER 1 16.26 • Large/multinational mining $14.07m and energy companies • Very high safety and 5.52 business system requirements • Generally brownfield work for existing mining oper
Slide 9: Operating Revenue Split
OPERATING REVENUE SPLIT For personal use only FY2014 $14.07m FY2015 $24.69m 12.6% 6.9% 12.3% 2.1% 21.0% Gold 10.3% 20.4% Copper Coal 15.8% Lead/Zinc Other 48.8% 49.7% Management mindful of managing risk by commodity mix 9 www.mitchellservices.com.au
Slide 10: Major Contract Win
MAJOR CONTRACT WIN For personal use only • Australian Tier 1 gold miner, Evolution Mining Ltd • Cracow and Pajingo mines in Queensland • Two year, six rig contract worth approximately $27million in revenue over contract term • Provision of both surface and underground drilling services • Further str
Slide 11: Nitro Integration Update
NITRO INTEGRATION UPDATE For personal use only • Successful Nitro asset acquisition completed in July 2015 • Asset integration complete with full service history loaded into our business systems • Strategic plan in place to sell surplus assets over time and reduce debt accordingly • Nitro integratio
Slide 12: Subdued General Market Conditions Continue
SUBDUED GENERAL MARKET CONDITIONS CONTINUE Commodity Price Trends* For personal use only • General market conditions remain challenging with the prices of major revenue generating commodities reducing throughout FY15 • Demand for drilling services in the greenfield exploration sector remain subdued
Slide 13: Where Are We in the Cycle?
WHERE ARE WE IN THE CYCLE? Listed Drilling Company – Share Price Movements (Average is a non weighted average of daily close prices) For personal use only GROWTH DECLINE GROWTH DECLINE -> Boart Longyear Major Drilling Foraco Orbit Garant AusDrill Capital Drilling Layne Christiansen Geo Drill Indexed
Slide 14: Market Outlook
MARKET OUTLOOK For personal use only Numerous competitors have exited the market • Competitive Profile of market has improved • New entrants are faced with barriers to entry • Pipeline of identified opportunities continues to grow • Rig utilisation continues to grow • Greenfield exploration sector r
Slide 15: Conclusion
CONCLUSION For personal use only Enhanced Improved Increased safety statistics rig utilisation Tier 1 client base Growing opportunity pipeline Questions? 15 www.mitchellservices.com.au
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