Capital : H1 2021 Results Presentation

Capital Limited

H1 2021

Results Presentation

19 August 2021

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 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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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.

By attending the presentation to which this document relates or by accepting this document you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii) you have read and agree to comply with the contents of this notice; and (iii) you will use the information in this document solely for evaluating your possible interest in the Company and for no other purpose.

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Capital Limited Snapshot

We provide full-service mining, drilling, maintenance and geochemical solutions to customers within the minerals industry, focusing on the African markets

Y E A R S O F E X P E R I E N C E I N A F R I C A

15+

O P E R A T I N G I N

11 A f r i c a n A n d M i d d l e E a s t e r n C o u n t r i e s

A S S E T F L E E T

106 R i g s *

35 H e a v y M i n i n g E q u i p m e n t

2021 operations

Previous operations Long-term contracts

E M P L O Y S

1,889 P e o p l e *

R E V E N U E B Y C U S T O M E R

93% T i e r 1 & M i d - t i e r C l i e n t s

M A J O R C L I E N T S

* As at 30 June 2021

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H1 2021 Financial Highlights

F I N A N C I A L		Revenue		EBITDA		Adjusted NPAT ¹		Equity investment
	$98.7 million		$28.4 million		$12.7 million		gains
R E S U L T S
							$5.7 million
		Up 51.6% on H1 20		Up 84.4% on H1 20		Up 239% on H1 20
					Investment portfolio grown to
		($65.1 million)		($15.4 million)		($3.8 million)
					$31.0 million

B A L A N C E S H E E T & D I V I D E N D S

Continued strong	Shareholder equity	Net Debt	Increased
returns	$164.8 million	$32.8 million	dividend

(Adjusted) ROCE² 17.9%,	Up 64.6% on H1 20	Up vs H1 20	Interim dividend of
1.2 cents per share (cps),
vs H1 20 (23.1%)	($100.1 million)	($0.1 million)
up 33% on H1 2020 (0.9 cps)

S T R O N G O U T L O O K D R I V I N G G U I D A N C E U P L I F T

FY21 guidance: A strong half and ongoing demand underpins recent revenue guidance uplift

FY21 Revenue outlook $200-210 million

up from $185-195 million at the FY20 results

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

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H1 2021 Operational Highlights

S T R E N G T H E N I N G D R I L L I N G B U S I N E S S

• Increased rig fleet utilisation to 73% (H1 2020: 57%)
• Successful expansion into West Africa, region contributing 38% to Group revenue (H1 2020: 31%)
• Focus on mine site contracts (88% of group revenue), multiple contract wins with existing and new customers
• Strong customer base with a portfolio of 10 long-term mine site based operations
• Expanded rig fleet to support key contracts

I N C R E A S E D S E R V I C E S D E L I V E R I N G A N

E N D - T O - E N D E X P L O R A T I O N T O M I N I N G

S E R V I C E S S O L U T I O N

• Transformational waste mining contract with Sukari progressing ahead of contracted schedule with all assets fully commissioned in H1 2021
• MSALABS continues to expand across Africa, further contract wins leveraging the Capital network
• Contract win for fledgling business, MSM:
  ₋ Awarded two-year complete hose services contract with Resolute at Syama (Mali)

	250										10%
								9%
	200										8%
										7%
E X P A N D I N G	150										6%
									5%
S E R V I C E S O P E N S	100										4%
N E W R E V E N U E										3%
50										2%
O P P O R T U N I T I E S
									1%
	0										0%
	2016	2017	2018	2019	2020	2021
								Guidance
				Total Revenue		% Non Drilling

L O C A T I O N		A C T I V I T Y ( H 1 2 0 2 1 )
12%				17%
			3%		30%
			7%
					10%
	88%			33%
			PRODUCTION	UNDERGROUND	DELINEATION
MINE SITE	NON MINE SITE		EXPLORATION	WELLFORCE	NON-DRILLING

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