Capital : FY 2021 Results Presentation

Capital Limited

2021 Full Year Results

10 March 2022

Disclaimer

IMPORTANT NOTICE

This document and any accompanying oral presentation (together the "Presentation") 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 Limited (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 a recommendation regarding the securities of the Company.

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The Presentation is only addressed to and directed at (A) persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(E) of the EU Prospectus Regulation (Regulation (EU) 2017/1129), as amended ("Qualified Investors") and (B) in the United Kingdom, "qualified investors" within the meaning of Article 2(E) of the UK version of the EU Prospectus Regulation (which is part of English law by virtue of the European Union (Withdrawal) Act 2018, as amended and who are also person who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) are persons falling within Article 49(2)(a) to (d) of the Order, or (iii) it may otherwise lawfully be communicated to (all such persons together being referred to as "relevant persons"). This document must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors. Any investment or investment activity to which this document relates is available only to (i) in the United Kingdom, relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors, and will be engaged in only with such persons.

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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 projections about 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 those expressed 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 described herein. 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 the future. 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 not place undue reliance on forward-looking statements, which speak only as of the date of this document.

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2021 Financial Highlights

F I N A N C I A L

R E S U L T S

B A L A N C E S H E E T &

D I V I D E N D S

Revenue		EBITDA		Adjusted NPAT ¹
$226.8 million		$73.3 million		$36.6 million
Up 68% on FY 20		Up 116.9% on FY 20		Up 226.6% on FY 20
($135.0 million)		($33.8 million)		($11.2 million)

Continued strong		Adjusted Net cash		Shareholder equity
returns		(incl. investments) 3		$219.2 million
		$28.3 million
(Adjusted) ROCE² 22.7%,		down 12.2% from FY 20		Up 49.4% on FY 20
vs FY 20 (22.2%)		($32.2 million)		($146.7million)

F Y 2 2 R E V E N U E G U I D A N C E $ 2 7 0 - $ 2 8 0 M I L L I O N

21% increase YoY at the mid point

Anticipated growth across all business areas

Equity investment

gains

$33.7 million

Investment portfolio grown to

$60.2 million

Increased dividend

Total dividend of

3.6 cents per share (cps), up 64% on FY 2020 (2.2cps)

Note 1: Adjusted NPAT is pre investment gains

Note 2: Adjusted ROCE is calculated utilising 12 months EBIT and excludes investments at fair value from assets

Note 3: Net debt before including investments was $31.9 million at YE 2021

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Four Pillars Creating Strong Foundation

D R I L L I N GM I N I N GL A B O R A T O R YI N V E S T M E N T S

E X P A N D I N G S E R V I C E S

C R E A T E S N E W R E V E N U E

O P P O R T U N I T I E S

• End-to-enddrilling services for exploration and production
• Diversified fleet of 109 rigs
• Largest fleet in Africa
• Established in 2005
• Operating across three core regions
• Focus on mine-site based drilling contracts

• Load and haul and ancillary services for mining operations
• Fleet of 35 Heavy Mining Equipment (HME)
• New business stream, since 2019
• Team of highly experienced industry professionals
• Commenced transformational Sukari mining services contract in 2021

• Full range of geochemical	•	Investments in exploration
	analysis services across all		and mining companies
	metals		throughout Africa
•	Langley, BC, Canada
	headquarters	•	Developed as complementary
•	Acquired in 2017		funding option in conjunction
•	Undergoing significant		with existing services
	expansion, particularly in
	Africa

• Strategic partnership to deploy revolutionary Chrysos PhotonAssay technology

300				Total Revenue		% Non Drilling			25%
250
								20%
200
								15%
150
								10%
100
								5%
50
0										0%
2017	2018	2019	2020	2021		Guidence
								2022

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Maintaining Industry Leading Safety Standards

					T R I F R	T R E N D
					2020 TRIFR	2021 TRIFR
2.50	2.29
2.00
1.50		1.25						0.99			1.09	0.98
					1.06		0.93	1.03	0.91
			0.83		0.86
1.00			0.64
0.50									0.26	0.24		0.77
0.00	0.00	0.00	0.00	0.00	0.50	0.41	0.34	0.30			0.64
Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
-0.50
	T R I F R C O M P A R I S O N T O C O M P E T I T O R S 2 0 2 1
					Drilling Peers	Mining Peers
					14.40
				9.00
							6.70		6.04
												4.70
		1.31								3.20
	0.98
	Capital	Peer 1		Peer 2	Peer 3	Peer 4	Peer 5	Peer 6		Peer 7

C O M M E N T A R Y

• Total Recordable Incident Frequency Rate (TRIFR) of 0.98 (well below industry peers)
• Achievement of 11 LTI free milestones during 2021:
• • Six LTI free milestones in excess of three years
  • Seven LTI free milestones at long-term contract sites
• COVID-19Protocols - Site specific COVID-19 management plans enacted in conjunction with our clients and medical consultant (ISOS)

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