Mitchell Services Limited · ASX:MSV
Mitchell Services — Morgans Emerging Companies Conference 2014
17 slides from Mitchell Services's conference presentation, Nov 12, 2014
Slide 1: Morgans Emerging Companies Conference Corporate Presentation
For personal use only MORGANS EMERGING COMPANIES CONFERENCE Corporate Presentation 12 November 2014 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: Executive Summary
EXECUTIVE SUMMARY For personal use only • Mitchell Services Limited (“Mitchell Services”) has settled an underwritten capital raising of $20.2m • Mitchell Services has acquired the assets of Tom Browne Drilling Services (“TBDS”) for $9.5m (plus GST) • The integration of the TBDS acquisition is progr
Slide 4: History
HISTORY For personal use only MITCHELL SERVICES HISTORY DRILL TORQUE HISTORY 1969 Mitchell Drilling commenced 1992 operations 2000 Drill Torque Queensland Mitchell Drilling was at founded with a single rig the forefront of the CSG 2007 2008 Well Drilled industry in QLD Mitchell Drilling established
Slide 5: Cyclical Market Presents Opportunity
CYCLICAL MARKET PRESENTS OPPORTUNITY For personal use only Board and management have a strong understanding of the cyclical nature of the industry which drives investment decisions Mitchell Drilling Contractors sells to AJ Lucas for $150m Mitchell Equipment Hire makes Mitchell Group acquires rigs
Slide 6: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only Senior Management Team Major Shareholders ASX Stock Symbol: MSV Shares Issued: 867,000,222 Executive Chairman – Nathan Mitchell 1 Mitchell Group 20% Performance Options: 98,700,000 CEO - Andrew Elf 2 Acorn Capital 10% Share Price (at 7/11/14): A
Slide 7: 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 Find a better way Management Safety Leading Systems Operational Value Team Technology Capability Proposition 7 www.mitchellservices.com.au
Slide 8: Achievements Following Acquisition and Restructure
ACHIEVEMENTS FOLLOWING ACQUISITION AND RESTRUCTURE For personal use only • Won approximately $30m worth of contracts by revenue since acquisition of Mitchell Services including three Tier 1 clients • Rig utilisation increased from four to fifteen rigs • Review and implementation of Industrial Relati
Slide 9: Tom Browne Drilling Services Acquisition
TOM BROWNE DRILLING SERVICES ACQUISITION For personal use only • Receivers appointed to Tom Browne Drilling Services (TBDS) in April 2014 • Mitchell acquired - - Significant asset base of 29 rigs and ancillary equipment - 18 month contract with Tier 1 global mining company - All business records inc
Slide 10: Why Did We Acquire TBDS Assets
WHY DID WE ACQUIRE TBDS ASSETS For personal use only • The current Tier 1 rig fleet is operating at near full • Strengthen market share position and increase utilisation geographical footprint from predominantly Queensland operations • With the strong tender pipeline Mitchell Services has developed
Slide 11: Material Increase in Capability Post Acquisition
MATERIAL INCREASE IN CAPABILITY POST ACQUISITION For personal use only Significant Fleet in Eastern Australia Mitchell Services Competitor 1 Competitor 2 Competitor 3 Competitor 4 Tom Browne Mitchell Competitor 5 Competitor 6 Competitor 7 Post Acquisition Pre Acquisition 58 rigs 29 rigs 29 rigs 23 T
Slide 12: The Future
THE FUTURE For personal use only Top priorities in the year ahead • Continue to improve the standards in the health and • Integrate the Tom Browne Drilling Services assets and safety of our people inventory • Meet and exceed the high standard of service that our • Increase rig utilisation with a vie
Slide 13: TBDS Acquisition Update
TBDS ACQUISITION UPDATE For personal use only Ahead of time and ahead of budget • Contract with global “Tier 1” mining company has been assigned • High level of safety performance continues with no crew turnover • Profitability of this contract has exceeded budget • Establishment of new operational
Slide 14: Business Development
BUSINESS DEVELOPMENT For personal use only Won approximately $30m worth of contracts since the acquisition • Highly focused on lead generation. General Manager Business Development appointed to further increase lead generation across Central and Eastern Australia markets • Brand recognition of “Mitc
Slide 15: Business Development (Cont.)
BUSINESS DEVELOPMENT (CONT.) For personal use only • Operational excellence is recognised across a wide range of commodities and drilling market sectors Future Business Opportunities • Coal Seam Gas Drilling – Find a better way • In 2008 Mitchell Group was a pioneer and previous industry leader in t
Slide 16: FY14 Highlights & Q1 FY2015 Revenue
FY14 HIGHLIGHTS & Q1 FY2015 REVENUE For personal use only Audited financials as at reporting date 30 June 2014 FY15 Outlook Revenue $15.01m Baseline revenue forecast of circa $24m revenue at break even EBITDA ($2.90m) operating cash flow basis NPAT ($4.60m) Significant upside potential in forecast r
Slide 17: Summary
SUMMARY For personal use only • Major one off expenses incurred to rebuild and position the business to work for Tier 1 clients are behind us • Competitive landscape is improving rapidly and barriers to entry for new competitors have increased • Best pricing for assets that Board and Management have
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