Slide 1: Full Year Results Presentation Financial Year 2016
For personal use only FULL YEAR RESULTS PRESENTATION Financial Year 2016 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 • Numerous initiatives implemented to further strengthen safety culture and performance • Mitchell Services has had no lost time injuries since Nov
Slide 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: Balance Sheet
BALANCE SHEET For personal use only 30 Jun 16 30 Jun 15 Change $000’s $000’s % Current assets^ 8,375 26,103 (68%) Property, plant and equipment* 30,251 21,262 42% Other non-current assets 18 21 (13%) Total assets 38,644 47,386 (18%) Current liabilities^ 8,276 28,378 (71%) Non-current liabilities* 12
Slide 12: 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 13: 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