Mitchell Services Limited · ASX:MSV
Mitchell Services — Shareholder Meeting (November 2022)
14 slides from Mitchell Services's shareholder meeting presentation, Nov 16, 2022
Slide 1: Annual General Meeting 2022
ANNUAL GENERAL MEETING 2022 16 November 2022 ASX:MSV
Slide 2: CEO Presentation
2 CEO PRESENTATION Andrew Elf Chief Executive Officer Annual General Meeting 2022
Slide 3: Disclaimer
3 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 4: Agenda
4 AGENDA 1. Market profile 2. FY22 Business Summary 3. Revenue and earnings growth into FY23 4. Overview 5. Strong cash generation in FY23 6. MSV is returning funds to shareholders 7. Why invest in Mitchell Services 8. FY23 Q1 update 9. Summary Annual General Meeting 2022
Slide 5: Market Profile
5 MARKET PROFILE ASX INFORMATION BOARD OF DIRECTORS ASX Stock Symbol MSV Nathan Mitchell Executive Chairman Shares on Issue (at 14/11/22) 222,394,033 Scott Tumbridge Executive Director Share Price (at 14/11/22) A$0.395 Peter Miller Non-Executive Director Market Capitalisation A$87.85m Robert Douglas
Slide 6: FY22 Business Summary
6 FY22 BUSINESS SUMMARY 44,086 SHIFTS IN FY22 SAFETY PERFORMANCE EXPERIENCED EMPLOYEES 3.4% 750 INDUSTRY LEADING + DRIVEN BY CRITICAL RISK CONTROL VERIFICATION FROM FY21 PROGRAM Currently over 800 employees RIGS FY22 REVENUE EBITDA OF $32.2M IN FY22 100 $213.4M 24% Annual General Meeting 2022 90% FR
Slide 7: Revenue and Earnings Growth into FY23
7 REVENUE AND EARNINGS GROWTH INTO FY23 FY23 FY22 FY21 FY23 Expect material FY22 increase $213.4M in revenue $191.4M FY21 Average Average June 2022 operating rig operating rig operating rig Expect count count count was material 71.6 74.8 84 increase in $32.2M earnings $25.9M Annual General Meeting 2
Slide 8: Overview
8 OVERVIEW High commodity prices driving increasing demand for drilling services from explorers through to multi-nation resource companies. Supply constraints on rigs is supporting increased utilisation, pricing and contract terms Company’s organic growth strategy of pre-ordering new drilling
Slide 9: Strong Cash Generation in FY23
9 STRONG CASH GENERATION IN FY23 A portion of free cashflows will be used to reduce leverage and the company has no present intention to raise equity to reduce leverage or for any other reason REVENUE EBITDA FY23 FY23 FUNDS FOR RETURNS TO SHAREHOLDERS FY23 Annual General Meeting 2022 CAPEX DEBT FY23
Slide 10: MSV is Returning Funds to Shareholders
10 MSV IS RETURNING FUNDS TO SHAREHOLDERS A disciplined approach to capital management. Over the next two years MSV will significantly reduce the company’s debt profile while paying strong dividends and buying back shares BUY-BACK DIVIDENDS Where appropriate, funds from rig sales (if any) will be Di
Slide 11: Why Invest in Mitchell Services?
11 WHY INVEST IN MITCHELL SERVICES? World class rig fleet Strong client base Revenue and earnings will grow materially year on year into FY23 Focused capital management strategy over the next 2 years delivering: o Significant reduction in net debt to $15m by the end of FY24 o Expected cash f
Slide 12: FY23 Q1 Update
12 FY23 Q1 UPDATE RECORD REVENUE $61.1m 81 AVERAGE OPERATING RIGS EBITDA $10.1m 16%FROM FY22Q1 17% FROM FY22Q1 24% FROM FY22Q1 CAPITAL INVETSMENT PROGRAM GROSS DEBT $38.8m CAPEX $3.6m COMPLETE WITH ALL 12 LF160 RIGS 10.6% 47% Annual General Meeting 2022 OPERATING FOR GLOBAL MAJOR MINERS FROM 30 JUNE
Slide 13: Summary
13 SUMMARY Mitchell Services generated FY22 revenue and EBITDA of $213.4m and $32.2m respectively FY23 is expected to drive a material year on year increase in earnings Quality brand with long history and high quality revenue streams Strong cash flow generation Targeting material sharehold
Slide 14: Thank You
Annual General Meeting 2022 14 THANK YOU
Mitchell Services — Shareholder Meeting (November 2022) on 6ix