Capital Drilling Limited Corporate Presentation November 2015
Disclaimer
IMPORTANT NOTICE
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Capital Drilling Ltd. (the“Company”), nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute arecommendation regarding the securities of the Company.
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Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projectionsabout future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from thoseexpressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events describedherein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in thefuture. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should notplace undue reliance on forward-looking statements, which speak only as of the date of this document.
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Trading Update
Challenging trading conditions …
4
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
2,000
4,000
6,000
8,000
10,000
12,000
Gol
d -U
S$/o
z
Copper -US$/tonne
Copper Spot Gold Spot
GOLD AND COPPER SPOT RATES1
REVENUE vs UTILISATION
MACRO PRESSURES REMAIN
Industrial metals continue to test mutli-year lows
Golds relative resilience under threat from rising US interest rates
Sector access to capital remains challenging, albeit 2015 showing
improvement on prior years
Clients remain focused on stringent cost management and
constrained CAPEX
Industry utilisation rates remain at historic lows of 30 to 35%
» Drilling rates continue to be under pressure
SIGNS OF STABILISATION, DESPITE THE HEADWINDS
Utilisation rates at historical lows, with exploration & delineation
drilling the weakest segments
Capital Drilling’s strategic focus on production drilling provides a
solid base to Group revenue, representing c70% of total revenue
Production contracts range between 2 and 5 years in duration
Quarterly revenue increases in 2015 driven by recent exploration
contract wins
1. Source: Bloomberg (as at 11 November 2015)
40.9238.91 38.34
34.35
21.73 21.85
26.1227.68
23.6321.41
19.12 19.83 20.85
80%76%
66%62%
46% 46% 44% 45% 44%38%
33% 34% 34%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
5
10
15
20
25
30
35
40
45
Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15
Utilisation
Reve
nue
-US$
mill
ion
… but Capital Drilling performing well
5
US$m
GROSS PROFIT AND MARGINS
41.1%
32.6%
32.6%38.6% 36.3%
33.3%35.2%
31.4%
28.1%
23.3%
34.5%32.0%
34.5%
0%
10%
20%
30%
40%
50%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14 H2 14 H1 15GP (USDm) GP (%) Avg Margin
OPERATING CASH FLOW / FREE CASH FLOW
(20)
(15)
(10)
(5)
0
5
10
15
20
Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15Cash Generated from Operations Free Cash Flow
-6%
-4%
-2%
0%
2%
4%
6%
-$6
-$4
-$2
$0
$2
$4
$6
Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15
Mill
ions
Net Cash (Net Debt) Net Cash (Net Debt) %
NET CASH (NET DEBT)
Early decisive actions taken in 2012/2013 to manage the cost base
Operating margins back to 7 year trend levels despite the fall inrevenue
Further savings being achieved in 2015 through head office, supplychain and travel
Enhanced operational “ownership” through training, accountabilityand monitoring at the project level
Entered the downturn with a well capitalized business, including over90 rigs and $23 million in inventory
Stringent discipline around cost management and capital spendingreflected in positive Group cash flow
Record cash generation for the Group, despite the poor demandenvironment
Margins and CAPEX discipline driving significant improvement in thebalance sheet
Net cash of $3.6 million at September 30, 2015» Repaid $8 million of the Company’s debt facility in the September
quarter» Paid a maiden dividend in May 2015 of US1.9cps (US$2.5 million)» Paid a H1 2015 dividend in October 2015 of US1.1cps (US$1.5
million)
Our goal for 2015 … Rebuild Utilisation
IMPROVE THE BUSINESS
Managing Costs- Continued cost control,
margins maintained
Improve Operating Performance- Increased ARPOR
STRENGTHEN THE BALANCE SHEET
Capex Discipline- Substantial reduction in
H1
Release Working Capital- Receivables & inventory
management
DELIVER GROWTH
New Management Team- Transition to new CEO &
CFO
Continuous Improvement- Ongoing focus
REBUILDUTILISATION
Solid balance sheet with cash reserves
Maintenance of existing fleet, ready for deployment
Inventory available for work
Competitive pricing
6
7
Rebuilding utilisation: Lean Operating Model
Lean Mobile Operating Units» Streamlined site personnel to operations only, with support
functions engineered out» High standard “fit for purpose” equipment» Mobilise sufficient capability to sustain campaign» Enhanced capability at site – Financial, Safety and Inventory
Process & Planning» Key stakeholders engaged in the tendering process» Detailed planning prior to mobilisation
Execution» Project managed approach across mobilisation, start up &
on going operations» Specialists deployed at start up where required & extracted
when operating at “steady state”
Continuous Improvement» Client agreed KPI’s & Senior Management Performance
reviews» “Lessons Learnt” at completion of campaign
8
Case Study: Khoemacau Copper, Botswana
Lean Mobile Operating Units» High performance rigs, support equipment and full contingency
of inventory mobilised from neighbouring Zambia» Capital Drilling trained Zambian crews accompanied rig
Process & Planning» New country start up & registration» Detailed start up planning» Project Managed execution of mobilisation and drilling
Execution» Support Specialist in country for first 4 weeks of start up» 5 weeks duration from contract sign up to commencement of
drilling» Exceeded incumbent drillers performance in first month» Replaced Zambians crews with local crews when steady state
achieved
Continuous Improvement» Ongoing Management Performance reviews held quarterly
represented by Senior Management» Ongoing continued improvement of drilling performance
Outcome» Displaced 3 incumbent drilling contractors» Initial 3 month contract turned into 2 years
SUBSEQUENT CONTRACT WINS:
» IMX Resources
» Magnis Resources
» BHP Billiton Peru
» Liontown Resources
9
Focused on a performance driven culture
Participants include senior representatives of the client and CapitalDrilling, along with Capital’s senior management team
Tracking performance against mutually agreed KPI’s, such as:» Rig availabilities» Mechanical availabilities» Drilling performance» HSE performance» Down time
Continuous improvement process for HSE & Operationalperformance
Enhanced Contract Management at all levels
Quarterly Performance Reviews on major projects Mechanical Availability
Toolbox/Safety meeting 21%
Weather2%
Waiting for equipment/consumables
5%
Waiting for fuel/refueling
1%
Waiting for water/refilling
13%
Decision/Drill Pads/Areas/Mark
Up/Access 5%
Travel / Waiting for people 38%
Down Hole Issues 15%
Utilisation Standby Hours
100% 99% 99% 98%96% 97%
100% 99% 99% 99% 98% 98%
60%
80%
100%
Rig 96 Rig 97 Total Rig 96 Rig 97 Total Rig 96 Rig 97 Total Rig 96 Rig 97 Total
Apr-15 May-15 Jun-15 Q2
KPI
83%87%
85%
96% 95% 95%
90% 92% 91% 91%92% 91%
60%
80%
100%
Rig 96 Rig 97 Total Rig 96 Rig 97 Total Rig 96 Rig 97 Total Rig 96 Rig 97 Total
Apr-15 May-15 Jun-15 Q2
KPI
Multi-year contracts underpin the revenue …
TANZANIA
» Commenced operations in 2006
» Blast hole, grade control, exploration,
delineation and underground drilling
» Contract renewed in 2015 and runs to
2020
MAURITANIA
» Commenced operations in 2010
» Exploration & delineation drilling
» Contract renewed in 2015 and
runs to December 2016
BOTSWANA
» Commenced operations in 2015
» Exploration & delineation drilling
» Contract renewed in 2015 and runs
to December 2016
EGYPT
» Commenced operations in 2005
» Blast hole, grade control & delineation
drilling
» Contract renewed in 2015 and runs to
2020
11
Geographic focus on:» Africa» Strategic clients in other emerging economies
Core long term contracts to underpin the revenue base» Focus on multi-year blast hole and grade contracts and
projects with expansion opportunities
Utilise base operations to target smaller exploration &delineation opportunities, through the lean model approach
“Drilling Solutions” provider, not just a drilling company
Industry leaders on equipment, safety standards, training &development
Maintain a conservative approach to gearing & focus oncash generation
Provide shareholder returns through long term growth anddividends
… Providing the platform of the Group strategy
First Half 2015 Financial Performance
13
Financial Overview
Revenue KPIs H1 2015Reported
H1 2015Underlying H1 2014 Change % FY 2014
Average Fleet Size 97 97 95 2.1 96
Fleet Utilisation (%) 34 34 45 (24.4) 43
ARPOR ($) 189,000 189,000 193,000 (2.1) 188,000
Reported Earning H1 2015Reported
H1 2015Underlying H1 2014 Change % FY 2014
Revenue ($m) 39.0 39.0 53.8 (27.5) 98.8
EBITDA ($m) 7.9 8.8 12.5 (36.8) 20.4
EBIT ($m) 0.6 1.5 4.0 (85.0) 3.9
NPAT ($m) (3.2) (0.6) 1.8 (277.8) (0.6)
Basic EPS (cents) (2.4) (0.4) 1.3 284.6 (0.4)
Diluted EPS (cents) (2.4) (0.4) 1.3 284.6 (0.4)
Gross Profit (%) 34.5 34.5 34.5 0.0 33.4
EBITDA (%) 20.3 22.5 23.3 (12.9) 20.7
EBIT (%) 1.5 3.8 7.5 (80.0) 4.0
NPAT (%) (8.2) (1.5) 3.3 (384.5) (0.6)
Revenue down 27.5% to $39.0m (H1 2014: $53.8m)
» Soft utilisation driven by continued weak sector demand
» Robust ARPOR reflecting continued operational improvements
Reported EBITDA down 36.8% to $7.9m (H1 2014: $12.5m)
» Underlying EBITDA down 29.6% to $8.8m
EBIT down 85% to $0.6m (H1 2014: $4.0m)
» Underlying EBIT down 62.5% to $1.5m
Diluted EPS down to (2.4 cps) (H1 2014: 1.3 cps)
» Underlying diluted EPS down to (0.4 cps)
Reported earnings impacted by tax provisions in Mauritania
($1.3m) and Zambia ($1.2m): totalling $2.5m
14
Utilisation rates continue to trend at the lowest levels in CapitalDrilling’s history
Utilisation rates fell after exiting the Pacific Islands & contractconclusion in Zambia; have since remained flat over 2015
Utilisation (%)
ARPOR remains at solid levels, improving into Q2 after the Q1seasonal impact
Operational improvements continuing to drive the solidperformance
ARPOR (US$’000 per month)
‘000
Current fleet of 97 rigs
Acquired 1 new blast hole rig for deployment at the Geita Mine(AngloGold Ashanti, Tanzania)
Fleet Growth
Revenue (US$m)
H1 2015 revenues reduced by 13.5% compared to H2 2014
Revenue weakness driven by low utilisation in exploration &delineation drilling
Revenue Metrics
1119
25
49
60
74
8593 95 96
0102030405060708090
100
Jan'06 Jan'07 Jan'08 Jan'09 Jan'10 Jan'11 Jan'12 Jan'13 Jan'14 Jan'15
29.7 29.4 28.7
46.3
59.5
71.079.1 79.8
72.7
43.6
53.845.0
39.0
0
10
20
30
40
50
60
70
80
1H 09 2H 09 1H 10 2H 10 1H 11 2H 11 1H 12 2H 12 1H 13 2H 13 1H 14 2H 14 1H 15
186
209
188184
198
186
165 163
187
198
179
189 191 189 192
150
160
170
180
190
200
210
220
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15
74% 80% 76%
66%62%
46% 45%38%
33%34%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15
US$m
US$m
GROSS PROFIT AND MARGINS
EBITDA AND MARGINS
Early movers on costs, margins maintained
Continued to maintain operating margins at 5 year trend levels despitelower revenue» Reflects continued focus on cost management
H1 2015 GP margin of 34.5% (H1 2014: 34.5%)
H1 2015 EBITDA margin of 20.3% (H1 2014: 23.3%)» H1 2015 underlying EBITDA margin of 22.5%
Lean cost structure positions the Group well to benefit from a recovery indemand
15
41.1%
32.6%
32.6%
38.6%36.3%
33.3%
35.2%31.4%
28.1%
23.3%
34.5%32.0%
34.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14 H2 14 H1 15GP (USDm) GP (%) Avg Margin
28.2%
18.8%
25.0%
27.3% 27.5%
24.9%
26.5%
20.2%18.5%
8.1%
23.3%
17.2%
20.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0.0
5.0
10.0
15.0
20.0
25.0
H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14 H2 14 H1 15EBITDA (USDm) EBITDA (%) Avg Margin
Reduction in Management and Administrative costs to $5.5m in H1 ($6.5m H2 2014)
Savings from Singapore corporate office move to Mauritius, full impact in H2 2015
Strategic supply agreement; locked in pricing & supply agreements around key stock items
Stringent ordering & approval process maintained
Travel consolidated under one global provider
COST MANAGEMENT
Cash Flow 1H 2015$m
1H 2014$m
EBITDA 7.9 12.5
Non-cash expenses 0.2 0.2
Operating profit before working capital changes 8.1 12.6
Working capital changes 2.2 (0.6)
Cash generated from operations 10.3 12.0
Finance charges and tax payments (0.7) (1.2)
Net cash generated from operating activities 9.6 10.8
Investing Activities
Net cash used in investing activities (4.3) (10.7)
Financing Activities
Decrease in Loans (2.0) (1.1)
Dividend paid (2.6) -
Net Cash generated from financing activities (4.6) (1.1)
Net increase (decrease) in cash 0.7 (0.9)
Closing cash balance 15.2 11.4
Outstanding cash generation
Strong cash generation from operations, despite weaker revenue
Operating cash flow margin of 26.5%, compared to 22.4% for thecomparable period, an improvement of 18%
Working capital inflow driven by receivables management &inventory reduction
Cash generation allowed for maiden dividend, continued debtreduction & interim dividend
Higher closing cash balance in line with improved operationalcash generation & working capital release
16
OPERATING CASH FLOW / FREE CASH FLOW
(20)
(15)
(10)
(5)
0
5
10
15
20
Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15Cash Generated from Operations Free Cash Flow
H1 2015 NET DEBT MOVEMENTS
(0.36)
2.18
(2.0)
-
2.0
4.0
6.0
8.0
10.0
12.0
Opening netdebt
EBITDA Working capital Capex Dividends paid Others Closing net cash
Capital Expenditure: Focus on sustaining
CAPITAL EXPENDITURE
US$m
Reduced capital spend, purchasing one additional blast holerig for the Geita Mine in Tanznaia (AngloGold Ashanti)
Shift in focus to rig refurbishments, with 4 rigs completedover H1 2015
Total of 9 planned refurbishments in 2015
Indicative sustaining CAPEX of $5 to $7m
17
1.0 6.2
12.4 15.9
2.6
10.7
3.4
7.4
12.7
14.3
14.1
1.7
2.9
-
5.0
10.0
15.0
20.0
25.0
30.0
FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 H1 2015H1 Capex H2 Capex
Rig 70
RIG REBUILDS
Rig 67
Before After
Before After
Balance Sheet1H 2015 1H 2014 Change
$m $m % Cash and cash equivalents 15.2 11.4 33.3
Investment 0.9 0 -
Receivables 14.5 27.4 (47.1)
Inventory 21.8 23.2 (6.0)
Property, plant and equipment 52.7 62.1 (15.1)
Taxation 1.4 2.0 (30.0)
Total Assets 106.5 126.1 (15.5)
Payables 6.3 12.2 (48.4)
Borrowings 13.1 20.3 (35.5)
Taxation 2.0 0.3 566.7
Total Liabilities 21.4 32.8 (34.8)
Shareholder Equity 85.1 93.3 (8.8)
Net Asset Value per share (cents) 63.2 69.3 (8.8)
Net Cash (Debt) ($m) 2.2 (8.9) (124.7)
Gearing (Net Debt to Equity in %) 0.0 9.5 (100.0)
Return on Total Assets (%) 0.4 (0.7) (157.1)
Return on Invested Capital (%) (1.1) (0.9) 22.2
Our balance sheet is strong
GROSS DEBT vs NET DEBT/CASH TO EQUITY (%)
Continued deleveraging strategy:» Net Debt to Equity decreased from 9.5% in June 2014 to net
cash to equity of 2.6%» Net cash at June 30 2015 of $2.1mn
Returns continue to be impacted by record low levels of rig utilisation» H1 2015 rig utilisation 34% (H1 2014: 45%)
Refinanced banking facility in February 2015, reducing the facility size($47m to $30m) & extending the tenure to January 2018
The company will continue to maintain a conservative approach togearing with continued debt repayments in H2
18
-10%
0%
10%
20%
30%
40%
50%
-10
0
10
20
30
40
50
H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14 H2 14 H1 15
Total Debt Net debt/cash to Equity (%)
Interim dividend declared
Strongbalance sheet
Investment
Return excess toShareholders
through dividends
19
Declared a maiden interim dividend of US 1.1cps
Board Approved Policy» When determining the amount to be paid the Board will take into
consideration the underlying profitability of the Company … and aim toapprove an annual dividend within the range of 25-50% of the Company’sfree cash flow (being operating cash flow less capital expenditure)”
Strong balance sheet and continued solid cash generation driving thedividend.
We will continue our disciplined approach to capital management – weremain committed to a strong balance sheet
DIVIDEND TIMETABLE
August 25, 2015 H1 2015 Results release & dividend declaration
September 3, 2015 Ex-dividend date
September 4, 2015 Record date
October 9, 2015 Payment date
» Company Overview» Market» Corporate» Glossary
Appendices
21
Safety Performance
Strong Speak Up Culture
» Improved Environment reporting» Improved Hazard ID reporting
Leadership Lead Initiatives:
» Introduced Safety Risk Leadership Walks supportingemployees to identify job hazards that can lead tosignificant injury or illness
» Revised Golden Rules ,TAKE 5, HAZARD ID and VehiclePre-start programs rolled out
» Introduction of safety Icon to improve engagement onsafety and make it fun – Mr and Mrs Competent Drill.
Committed to ZERO Harm
Significant safety achievements including:
» Tanzania (Geita Project) achieved 8 years LTI free» Mauritania (Tasiast Project) achieved 4 years LTI free
Renewed focus driving reduced incidents from H1 2014
» Property damage: Down from 50 to 28
» MTI reduced from 3 to 1
KPI Milestone Improvements
Quality Partners & Projects
QUALITY CLIENTS
DEVELOPMENT & PRODUCTION FOCUS
QUALITY ASSETS
» Exposure to major and mid tier mining houses with strong balance sheets, qualityassets and positive cash flows
» Majors contributed 50% of H1 2015 revenue
» Targeting low cost producers , long life assets and expansion opportunities
» Working on top tier gold and copper assets including Tasiast (Kinross), Sukari(Centamin), Geita (AngloGold Ashanti), North Mara (Acacia)
» History of increasing service offering as mines develop (development, gradecontrol, blast hole, underground)
» Continued high exposure to development (brownfield) and production drilling,contributing 95% of H1 2015 revenue
» Provides higher relative stability and visibility to revenues as drilling activitiessupported by producing asset cash flows
22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013 2014 H1 2015
52% 53%
33%
63%73%
58% 57%50%
35% 41%
53%
30%23%
39% 41%40%
13%6%
14%7% 4% 3% 2%
10%
Majors Mid-Tiers Juniors
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013 2014 H1 2015
6%
33% 33%22% 23%
39%
57%
76%70%
54% 51%66% 64%
56%
38%
19%24%13% 14% 7% 7%
3% 5% 5%2% 5% 6% 2%
Production Brownfields Greenfields Energy
SERBIA» Dundee
MOZAMBIQUE» Boabab» Riversdale» Rio
ERITREA» Andiamo» Chalice Gold» Sunridge
DRC» Anvil» Tiger
ETHIOPIA» BHP» Ethiopia Potash
PAKISTAN» Antofagasta» Barrick Gold
ARMENIA» Lydian
MAURITANIA
» Redblack» Knight Piesold
EGYPT
» Gippsland» Thani Dubai
(AngloGold Ashanti)
Current Operations H1 2015
Regional Offices
Previous Registered Offices & Operations
Capital Drilling’s Clients
BOTSWANA
PERU
GHANA» Kinross
PNG & SOLOMONS» Allied Gold» Barrick Gold» Oil Search» St Barbara
ZAMBIA» Albidon» Barrick Gold» Equinox» First Quantum» MMG» Omega
CHILE» Antofasgasta» BHP» CMP» Glencore» MMG» Polar Star
TANZANIA
» Barrick Gold» Cradle» Glencore» Mantra» MMG» Rift Valley
Macro drivers remain highly challenging
*Source – Dealogic
1. Source: Bloomberg (as at 11 November 2015)
GOLD1 COPPER1
US$bn
Key Demand Drivers
24
1.34.2
8.2 9.513.9 15.3
28.7
47.944.0
52.8
47.242.1
20.416.9 17.9
15.1
0.0
10.0
20.0
30.0
40.0
50.0
60.0
FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 H1 15
0
400
800
1,200
1,600
2,000
2002
2003
2004
2005
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Gold Spot 12-Month Trailing
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Copper Spot 12-Month Trailing
GLOBAL MINING EQUITY CAPITAL MARKETS
Extensive industry experience, solid complement of skills
» 25 years experience in the mining industry in Africa and Australia
» Co-founder of Capital Drilling
» Previous experience includes 6 years as operations/general manager for Stanley Mining Services Tanzania (Layne Christensen)
Brian RuddBusiness Development
» Over 40 years experience in the natural resources sector
» Ex President/CEO of Adastra
» Ex Merrill Lynch Global Co-head of Mining Investment Banking
» NED for several AIM/ASX/TSX mineral companies
Tim ReadSenior NEDAudit Chair
» 30 years experience in mining
» 16 years at Barrick Gold; Executive VP of Exploration and Corporate Development
» Ex NED for Highland Gold, now Namakwa Diamonds & NED of Yamana Gold
Alex Davidson NEDHSE Chair
» 15 years experience co-founding numerous development companies, with a focus on the resources, oil and gas, mining services and agribusiness sectors
» Previously Executive Chairman and co-founder of Mirabela Nickel Ltd (ASX 200)
Craig BurtonNEDREMCO Chair
EXECUTIVE DIRECTOR
NON-EXECUTIVE DIRECTORS
CHIEF EXECUTIVE OFFICER
» Over 35 years experience in Mining and the oil & gas industry
» Previous executive positions in BHPB, ImdexLimited and Halliburton Energy Services.
» Extensive international experience
Mark ParsonsCEO
Management & Board
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» Over 15 years experience in finance industry
» Co-founder of Capital Drilling
» Previously Executive Director and Head of Asian Equity Syndication and Corporate Broking at Macquarie Bank (HK) and prior to which he was a director at ABN AMRO (HK)
Jamie BoytonChairman
CHAIRMAN
Corporate Snapshot
CAPITAL STRUCTUREFully paid ordinary shares 134,603,681
Share price (as at 30 June 2015) USD0.45
Market capitalisation (undiluted) ^ USD 60.31m
Cash (as at 30 June 2015) USD 15.20m
Debt (as at 30 June 2015) *includes bank borrowings & O/D USD 13.07m
Enterprise Value USD 58.18m
Founding Shareholders
70%
Free float30%
^ Share options and unvested share grants issued 5.47m
SHAREHOLDING BLOCKS
DIRECTORS AND SENIOR MANAGEMENT
Jamie Boyton Chairman
Mark Parsons Chief Executive Officer
Brian Rudd Executive Director
Alex Davidson Non-Executive Director
Craig Burton Non-Executive Director
Tim Read Non-Executive Director
David Payne Chief Operating Officer
Jaco Brümmer Chief Financial Officer
Tony Woolfe Group Asset Manager
Graham Almond Group Manager, HR & Risk
Jodie North Group Manager, Production Drilling
NET ASSET VALUE PER SHARE vs SHARE PRICE
26
0.55 0.52 0.520.59
0.66 0.69 0.71 0.68 0.69 0.67 0.63
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14 H2 14 H1 15
NAV per share Share Price in USD
ARPOR Average Revenue Per Operating Rig
Capital Expenditure
Cash used on acquisition of property plant and equipment less proceeds on disposals of property plant and equipment
EBIT Earnings Before Interest and Taxes/Profit from operations
EBITDA Earnings Before Interest, Taxes, Depreciation/Profit from operations plus depreciation
EPS Earnings Per Share
Enterprise value Market capitalisation + Debt - Cash
Free Cash Flow Operating cash flow (as defined above) less capital expenditure
Group, Company Capital drilling and its subsidiaries
KPI Key Performance Indicator
HSE Health, Safety & Environmental
LTI Loss Time Injury
LTM Last Twelve Months
Operating Cash flow Profit or loss after tax adjusted for non-cash items +/- the net change in working capital
Operating Cash flow Margin Cash generated from operations / Sales
MTI Medical Treatment Injury
Net Debt Short Term and Long Term Debt including Bank Overdraft less Cash and Cash Equivalents
NPAT Net Profit After Tax/Profit for the period
(Headline) Revenue Average fleet size x Utilisation x ARPOR
Return on capital employed (ROCE)
LTM EBIT / (Average total assets – Average current liabilities)
Return on Invested Capital (ROIC) LTM NOPAT / Average invested capital
Return on Total Assets (ROTA) LTM EBIT / Average total assets
Total assets Current assets plus non-current assets
The following words used in the presentation have the following meaning:
Glossary
27
CAPITAL DRILLING LIMITED
Jamie [email protected]
Mark ParsonsChief Executive [email protected]
Mauritius9th Floor, The COREÉbène CyberCityMauritiusTelephone: +230-464 3250www.capdrill.com
UK BROKER DETAILS
GMP Securities Europe LLPStratton House5 Stratton Street, London W1J 8LATelephone: +44 (0) 207 647 2800 Richard [email protected]
UK PUBLIC RELATIONSBuchanan107 Cheapside, London EC2V 6DNTelephone: + 44 (0) 20 7466 5000 Bobby Morse [email protected]
Company Contact Details
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