Capital Drilling Limited Corporate Presentation July 2012 - - PowerPoint PPT Presentation

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Capital Drilling Limited Corporate Presentation July 2012 - - PowerPoint PPT Presentation

Capital Drilling Limited Corporate Presentation July 2012 Disclaimer IMPORTANT NOTICE This document, which is personal to the recipient and has been issued by Capital Drilling Limited (the Company), comprises written materials/slides


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SLIDE 1

Capital Drilling Limited

Corporate Presentation July 2012

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SLIDE 2

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Disclaimer

IMPORTANT NOTICE

  • This document, which is personal to the recipient and has been issued by Capital Drilling Limited (the “Company”), comprises written materials/slides for a presentation in connection with the proposed placing and

application for admission to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's Main Market for listed securities, of all the ordinary shares (the “Shares”) in the capital of the Company (together, “Admission” or the “Placing”). This document is an advertisement and not a prospectus and investors should not subscribe for or purchase any Shares referred to in this document except on the basis of information in the prospectus to be published by the Company in due course in connection with the Placing and Admission (the “Prospectus”). Copies of the Prospectus will be available, following publication, from the Company’s registered office and from the offices of Nabarro LLP, Lacon House, 84 Theobald’s Road, London WC1X 8RW.

  • 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 Shares, nor shall any part of it nor the fact of its distribution form part
  • f 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.
  • This document is being supplied to you solely for your information. The information in the presentation has been provided by the Company or obtained from publicly available sources. Some of the information in this

document is still in draft form and has not been legally verified and will only be finalised at the time of Admission.

  • No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the

Company, Liberum Capital Limited or any of such persons’ directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company, Liberum Capital Limited or any of such persons’ members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use

  • f such information or opinions or otherwise arising in connection therewith.
  • This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. This document and the

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  • nly with such persons.
  • Liberum Capital Limited is acting for the Company in connection with the Placing and no one else and will not be responsible to anyone other than the Company for providing the protections afforded to the clients of

Liberum Capital Limited or for providing advice in relation to the Placing or any transaction or arrangement referred to in this document.

  • Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or
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  • The securities mentioned herein have not been, and will not be, registered under the US Securities Act of 1933 (the “Securities Act”), or under the applicable securities laws of Canada, Australia or Japan, and may not be
  • ffered or sold in the United States (as such term is defined in Regulation S under the Securities Act) unless they are registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to,

the registration requirements of the Securities Act and, subject to certain exceptions, may not be offered or sold within Canada, Australia, Japan or the Republic of South Africa or to any national, resident or citizen of Canada, Australia, Japan or the Republic of South Africa. No public offer of securities in the Company is being made in the United States, Canada, Australia, Japan or the Republic of South Africa.

  • Certain statements, beliefs and opinions in this document, including those related to the Placing, 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 other wise. 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; (iii) you will use the information in this document solely for evaluating your possible interest in the Placing and for no other purpose; and (iv) you will not at any time have any discussion, correspondence or contact concerning the information in this document or the Placing with any of the directors or employees of the Company, or their respective subsidiaries nor with any of their suppliers, customers, sub contractors or any governmental or regulatory body without the prior written consent of the Company.

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3

Business Overview

  • High growth drilling company providing services to mining,

exploration & energy companies.

  • Focus on emerging & developing markets.
  • Currently own 90 drilling rigs.

Who We Are

  • Exploration, development, production & underground drilling in Africa,

Asia, and Latin America, the fastest growing drilling markets.

  • High quality, long standing customer base includes AngloGold,

Barrick, BHP Billiton, Centamin Egypt, First Quantum & Kinross.

What We Do

  • Robust demand environment driving record revenues.
  • Continued expansion opportunities with existing & new clients.
  • Increasing management depth & specialization to drive further

improvements.

Where We Are Headed Well positioned for growth in a strong market

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Management & Board

Experienced management and highly respected Board

Geoff Fardell CEO

  • Over 25 years experience with large companies

in different industries and countries

  • 6 years as CFO of ASX listed Coates Hire,

Australia’s largest equipment rental company. Part of exec team to successfully building Coates to $1.6B prior to sale to private equity.

  • Consulted over last 4 years to a diverse range of

companies in roles such as acting CEO

  • 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 Boyton Executive Chairman

  • 25 years experience in the mining industry in

Africa and Australia

  • Co-founder of Capital Drilling
  • Previous experience includes 6 years as
  • perations/general manager for Stanley Mining

Services Tanzania (Layne Christensen) Brian Rudd Executive Director

Executive

  • 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 Read Senior NED

  • 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
  • f Mirabela Nickel Ltd (ASX 200)

Craig Burton NED

Non-Executive

  • 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 NED

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SLIDE 5

5

Strategy & Strengths

  • Focus on delivering industry competitive margin performance and ROIC
  • Strong financial disciplines

Leveraging our strengths for expansion

  • Continuous improvement to maintain and improve our reputation
  • Quality young fleet for quality customers, average age of less than five years

Focus on quality and solid reputation

  • Experience and presence on the ground in developing countries
  • Expertise in drilling in remote locations
  • Africa & Latin America focus

Focus on emerging and developing markets

  • Experienced operational managers and support staff
  • Skill in new country entry and start up
  • Focus on quality sustainable financial returns

Creating sustainable businesses

  • Solid Health & Safety record
  • Strong HSE culture

Continued focus on HSE

  • Expansion into production, energy and underground drilling
  • Growing additional businesses aligned with our services

Expand range of services

Strategy Competitive Strengths

  • Well capitalised customers with quality assets
  • Longer term clients

High quality customers and high quality assets Strong EBIT Margins and ROIC

  • Ensuring continued conservative gearing profile

Maintain Strong Balance Sheet

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SLIDE 6

6

Rig Locations

Recently added capacity in Chile & Zambia

Current Operations Support Offices

Mauritania Since 2010 7 rigs PNG / Solomons Since 2008 3 Rigs Chile Since 2010 8 rigs Zambia Since 2005 23 Rigs Mozambique Since 2009 3 Rigs Egypt Since 2005 23 Rigs Ethiopia Since 2011 1 Rig Tanzania Since 2005 19 Rigs Ghana Since 2011 3 rigs

* June 2012

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SLIDE 7

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Quality, Long Term Clients

Well Capitalised Clients

Provides greater stability and visibility on earnings

  • 1. Source: Bloomberg, 30 June 2012. * Pre-Takeover

E – Exploration D – Development P – Production U – Underground

Client Market Caps1 Location Commodity Active Since Type of Drilling US$2.5bn Tanzania Gold December 2008 E, D, P US$13.2bn Tanzania Gold April 2007 E, D, P US$16.8bn Chile Copper July 2012 E,D US$37.6bn Zambia Copper July 2006* E, D, P US$164.9bn Ethiopia Potash May 2011 E US$1.2bn Egypt Gold June 2005 E, D, P, U US$5.5bn Chile Iron Ore May 2012 E,D US$8.4bn Zambia Copper July 2010 E, D US$9.3bn Mauritania / Ghana Gold October 2010 E, D, U

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Fleet Profile

Quality equipment for remote locations

Multi-purpose 10 Reverse Circulation 10 Production 16 Diamond 46 Deep Hole Diamond 8 * as at 30 June 2012

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1H 2012 Revenue Compositions

  • Significant exposure to development (brownfield) & production drilling,

contributing 89% of 1H 2012 revenue (1H 2011: 84%).

  • Provides higher relative stability and visibility to revenues as drilling activities

supported by producing asset cash flows.

  • Lower contribution from higher risk exploration at 6% (1H 2011: 9%)
  • Maintained strong exposure to gold at 56% of revenue (1H 2011: 58%)
  • Commodity exposure generally consistent with global industry spend (78% on

gold & base metals: Metals Economics Group)

  • Increasing contribution from energy division at 5% (1H 2011: 3%)

REGIONAL DRILLING TYPES COMMODITIES CLIENT TYPE

  • Continued dominant exposure to Africa, representing 88% of 1H 2012 revenue

(1H 2011: 88%)

  • Increased contribution from Latin America, representing 10% of 1H 2012 revenue

(1H 2011: 6%)

  • Exposure to major and mid tier mining houses with producing assets and

positive operating cash flows.

  • Majors contributed 75% of 1H 2012 earnings, up from 63% in 2011.
  • Contribution from majors has increased from mid 30% range in 2009.

Junior 3% Mid Tier 22% Major 75% Energy 5% Exploration 6% Production 19% Development 70% Latam 10% Asia 2% Africa 88% Other 11% Copper 33% Gold 56%

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Returns and Balance Sheet

Half year Returns (%)

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 ROIC (%) ROTA (%)

Net Debt/ Equity (%)

  • 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11

  • Strong returns profile, with 2011 returns:

 Return on Invested Capital: 24%  Return on Total Assets: 21%

  • Solid returns driving growth in shareholder equity which

increased 28% in 2011.

  • Brief history demonstrates resilience of returns, even

during poor market conditions of 2009.

  • Conservative gearing profile implemented post the IPO in

June 2010.

  • Net debt of $14.6 million as at December 31, 2011

representing gearing of 19%.

  • Refinanced and increased debt facilities in January 2012

with a $17 million term loan and a $30 million revolver.

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11

  • 1H 2012 continues the long term trend of fleet growth:

6 new rigs in 1H 2012, started the year with 85 rigs.

1 rigs decommissioned & sold as part of on going asset management program .

A further 5 rigs scheduled for 2H 2012.

Opportunities to expand with existing customers and new tenders.

  • Historical growth rate (adding on average 1 rig per month since inception) maintained.
  • Low fleet age maintained, increasing efficiency & reducing “down time”.

Fleet – average for the quarter Fleet – growth per annum

Fleet Growth

11 19 25 49 60 74 85 10 20 30 40 50 60 70 80 90 Jan'06 Jan'07 Jan'08 Jan'09 Jan'10 Jan'11 Jan'12 50 57 58 59 62 63 64 71 75 78 78 83 85 88 10 20 30 40 50 60 70 80 90 100 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12

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SLIDE 12

Utilisation & ARPOR

12

Utilisation ARPOR

‘000

  • ARPOR = Average Revenue Per Operating rig (measuring
  • utput when active)
  • ARPOR profile continued to improve in 1H 2012, driven by

contract mix & operational improvements on key sites.

  • Slightly softer utilisation rates in Q1 2012 due to rig

mobilisations from Mozambique to Tanzania & Zambia.

  • Despite this maintained elevated levels of rig utilisation,

noting annual seasonal influences.

  • Expectation of improving utilisation in Q3 2012 as recent

contract wins commence.

189 211 150 156 137 119 138 148 164 186 50 100 150 200 250 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 80% 93% 85% 57% 64% 59% 84% 79% 83% 74% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12

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Pre-Close Highlights

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  • Enlarged fleet, solid utilisation and improving ARPOR all

contribute to record revenue for 1H 2012.

  • Expected revenue of $77mn for 1H 2012, representing 29%

growth on 1H 2011.

  • Contract wins, expansions & extensions:

 Antofagasta, Chile  Barrick Gold, Zambia  Centamin, Egypt  CMP, Chile  Continental Nickel, Tanzania  Kinross Gold, Ghana

  • Secured the Group’s 1st underground drilling contract
  • Appointed a new CFO, Uno Makotsvana, effective April 16,
  • 2012. Extensive corporate experience with Australian mining

services companies, both listed and unlisted.

US$m *As per trading update issued Jun 29

Revenues

14.3 21.7 28.9 45.8 29.7 29.3 28.7 46.3 59.5 70.5 77.0 10 20 30 40 50 60 70 80

1H'07 2H'07 1H'08 2H'08 1H'09 2H'09 1H'10 2H'10 1H'11 2H'11 1H'12

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SLIDE 14

Outlook

14

  • Continued elevated levels for commodity prices.
  • Softer capital markets activity, however sector

balance sheets remain strong.

  • Moderation of demand from elevated levels, however

levels of tendering activity in both Africa and Latin America remain solid.

  • Robust balance sheet with refinanced debt facilities
  • ffering greater capacity and flexibility for growth.
  • Enhanced management team adding greater depth

and skills for future growth.

  • Earnings growth underpinned by existing clients and
  • perations.
  • Capital Drilling is well placed for continued growth in

2012.

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SLIDE 15

Appendices

  • Market
  • Financial
  • Corporate
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SLIDE 16

Worldwide (non-ferrous) exploration market = $18.2bn

Market – large and growing, especially in emerging countries

20111 20111

1. Source: Metals Economics Group, December 2011

Drilling generally accounts for 40% or $7.2bn Represents a 50% increase

  • n 2010 spend

Fast growth markets in 2011: Latin America (47%) Africa (69%) Latin America Largest “regional” exploration market in 2011

Worldwide Exploration Budgets by Region 20111

Size of the Market

“West” Africa Represents 40% of African spend Gold 48% of spend “East/Southern” Africa Represents 45% of African spend

Latin America 25% Canada 18% Rest of World 15% Africa 15% Australia 13% United States 8% Pacific/SE Asia 6%

16

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Key Demand Drivers

Recent activity subdued, however balance sheets remain strong

*Source – Dealogic

Gold1 Copper1

1. Source: Bloomberg (as at June 2012)

Gold

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 US$/oz Gold Spot Trading

Copper

2,000 4,000 6,000 8,000 10,000 12,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 US$/tonne Copper Spot Trading

1.3 4.2 8.2 9.5 13.9 15.3 28.7 47.9 44.0 52.8 47.2 42.1 5.7 0.0 10.0 20.0 30.0 40.0 50.0 60.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

More than US$250 billion in equity raisings by mining companies since 2006

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Mineral Drilling Services Industry

Exploration Development Production Exploration

Greenfield – Discovery

  • f

mineral deposits

Brownfield – Assess size and quality of deposits

Drilling is an integral part of mineral discovery and extraction

Key Activities Requiring Drilling Services Development

Assess feasibility of development

Accurate definition

  • f

geological conditions Production

Blast hole – Extraction of minerals

Grade control – Mine planning Riskiness of Operations Value of Mineral Project High Low Resources Reserves Discovery Desk top study Feasibility study Pre-feasibility study Project commissioning

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2011 - Financial Result

  • Revenue up 74% to $130.5 million (2010: $75.1 million)

 Solid contributions from larger fleet & higher average annual utilisation  20% increase in full year ARPOR, full year impact of higher contract rates negotiated in 2010

  • EBITDA up 72% to $34.0 million (2010 $19.8 million)
  • EBIT up 62% to $22.8 million (2010 $14.1 million)
  • Net Profit After Tax up 58% to $17.6 million (2010:

$11.1million)  Noting an ETR of 19.1% in 2011, up from 13.0% in 2010

  • Diluted EPS up 45% to 13.0 cents per share (2010: 9.0

cents per share)

Revenue KPIs FY 2011 FY 2010 Change % Average Fleet Size 78 65 21 Fleet Utilisation (%) 82 72 14 ARPOR ($) 158,000 132,000 20 Underlying Earnings* FY 2011 $m FY 2010 $m Change % Revenue 130.5 75.1 74 EBITDA 34.0 19.8 72 EBIT 22.8 14.1 62 NPAT 17.6 11.1 58 Basic EPS (cents) 13.1 9.4 39 Diluted EPS (cents) 13.0 9.0 45 Gross Profit % 34.7 36.3

  • 5

EBITDA % 26.1 26.4

  • 1

EBIT % 17.5 18.8

  • 7

NPAT % 13.5 14.8

  • 9

* Underlying earnings, refer Glossary

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2011 - Balance Sheet

  • Improving returns supported by strong operating

performance  Return on total assets 21% (2010 : 18%)  Return on invested capital 24% (2010 : 23%)

  • Solid growth in shareholder equity, increasing 29% on

2010

  • Increased debt while maintaining conservative gearing

profile  Net debt of $14.6 million as at December 31, 2011 (19%)  Net debt / EBITDA: 0.43x

  • Refinanced and increased debt facilities in January

2012, providing greater balance sheet flexibility  $17 million term loan & $30 million revolver  Substantial debt headroom available  Conservative approach to gearing to remain

Balance Sheet FY 2011 FY 2010 Change $m $m % Cash and cash equivalents 7.7 18.2

  • 58

Receivables 28.1 15.0 88 Inventory 20.4 14.9 37 Property, plant and equipment 61.5 48.1 28 Taxation 0.4 0.3 25 Total Assets 118.2 96.6 22 Payables 14.5 16.2

  • 10

Borrowings 22.4 18.0 24 Taxation 2.2 1.0 118 Total Liabilities 39.1 35.2 11 Shareholder Equity 79.1 61.4 29 Net Debt 14.6 (0.2) NM Net Debt to Equity % 18.5 NM Return on Total Assets % 21.3 18.4 16 Return on Capital Employed % 28.2 24.7 14

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SLIDE 21

2011 - Cash Flow

21

  • Reduced operating cash flows due to substantial

investment in working capital  Increase in receivables & inventory, consistent with sales growth  Small reduction in payables

  • Continued investment in capital expenditure to cater

for increased demand  Increased fleet to 85 rigs (21% YoY increase in average fleet)

  • Financial activities: Small increase in debt,

investments funded by operating activities and cash reserves

  • Closing cash balance: Lower closing cash balance

due to investment in working capital to fund growth

* Net of bank overdraft

Cash Flow FY 2011 $m FY 2010 $m Operating profit before working capital changes 34.5 20.0 Working capital changes

  • 20.3
  • 4.8

Finance charges and tax payments

  • 4.1
  • 2.6

Net cash generated from operating activities 10.1 12.6 Investing Activities Net cash used in investing activities

  • 24.9
  • 18.3

Financing Activities Changes in Shares and Premium

  • 20.0

Increase (Decrease) - Loans 0.6 2.8 Net Cash generated from financing activities 0.6 22.8 Net increase/decrease in cash

  • 14.2

17.1 Closing cash balance* 4.0 18.2

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22

Margins and Returns Metrics 1

Note: 1. Underlying profit (operating profit or net profit) or underlying costs are calculated by adding back IPO expenses, forex gains/loss on shareholder loans and IDS acquisition, IFRS 2 share based payment and gains from the disposal of Sahar Minerals to the operating profit, net profit after tax or total costs, as applicable. The IFRS 2 share based payment expenses arose out of the vesting

  • f the Incentive Options Plan.

Revenues EBITDA1 and Margins

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2 4 6 8 10 12 14 16 18 20 1H'07 2H'07 1H'08 2H'08 1H'09 2H'09 1H'10 2H'10 1H'11 US$m Margin %

NPAT1 and Margins Gross Profit(1) and Margins

0% 10% 20% 30% 40% 50% 60% 5 10 15 20 25 1H'07 2H'07 1H'08 2H'08 1H'09 2H'09 1H'10 2H'10 1H'11 US$m Margin % 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 1 2 3 4 5 6 7 8 9 10 1H'07 2H'07 1H'08 2H'08 1H'09 2H'09 1H'10 2H'10 1H'11 Margin % US$m US$m

*As per trading update issued Jan 27

14.3 21.7 28.9 45.8 29.7 29.3 28.7 71.0 59.5 71.0 77.0

  • 10

20 30 40 50 60 70 80 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12

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SLIDE 23

23

Health & Safety

  • Proactive safety culture with focus and

commitment to zero harm. Supported by training and development programs driven across Group

  • Culture and commitment allowed the company

to recapture our focus after sustaining the impact of 4 LTI’s in 2011

  • We are proud of many of our current projects

achieving significant milestones in 2011/2012, 5 of which achieved over 1,000 days LTI Free including:  Egypt – Shalaten  Tanzania – Geita, Mwanza, North Mara  Zambia – Lumwana

0.85 0.45 0.24 0.33 0.18 0.1 0.29 0.28 2005 2006 2007 2008 2009 2010 2011 2012

Frequency rate of injuries per 200,000 hours worked

Annual Progressive Loss Time Injury Frequency Rate

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SLIDE 24

24

Corporate Snapshot

Capital Structure

Fully paid ordinary shares 134,592,800 Share price (as at 30 June 2012) USD 0.96 Market capitalisation (undiluted) * USD 129.2m Cash (as at 31 December 2011) USD 7.7m Debt (as at 31 December 2011) *includes bank borrowings & O/D USD 22.4m Enterprise Value USD 143.9m Founding Shareholders 70% Free float 30%

Shareholding Blocks Share Price – July 2011 to June 2012 DIRECTORS AND SENIOR MANAGEMENT

Jamie Boyton Chairman Geoff Fardell 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 Commercial Officer Uno Makotsvana Chief Financial Officer Jamie Armitage Group Maintenance Advisor Tony Woolfe Group Asset Manager Jon Beer General Manager Operations, Africa

Source - Bloomberg * Share options issued 5.6m

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SLIDE 25

Glossary

25

The following words used in the presentation have the following meaning: ARPOR Average revenue per operating rig CAGR Compounded average growth rate Group, Company Capital drilling and its subsidiaries Return on capital employed (ROCE) EBIT/ (Total assets-Current liabilities) Return on total assets (ROTA) EBIT/ Total assets Total assets Current assets plus non-current assets Underlying earnings Earnings calculated by adjusting for non recurring one-off expenses, which are detailed in the Group’s Full Year Results Announcement dated 19 March 2012. The underlying earnings are different from reported earnings for 2010 only.

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SLIDE 26

26

Company Contact Details

Capital Drilling Limited

Jamie Boyton

Executive Chairman jamie.boyton@capdrill.com

Geoff Fardell

CEO geoff.fardell@capdrill.com

Uno Makotsvana

CFO uno.makotsvana@capdrill.com

Singapore

23 Amoy Street Singapore 069858 +65-6227-9050 www.capdrill.com

UK Broker Details

Liberum Capital Limited

Ropemaker Place, Level 12, 25 Ropemaker Street, London, EC2Y 9LY Telephone: +44 (0) 20 3100 2000 Clayton Bush Email: clayton.bush@liberumcapital.com

Canaccord Genuity Limited

Cardinal Place, 7th Floor, 80 Victoria Street, London SW1E 5JL Tel: + 44 (0) 20 7050 6500 Andrew Chubb Email: achubb@canaccordgenuity.com

UK Public Relations

Buchanan

107 Cheapside, London EC2V 6DN Telephone: + 44 (0) 20 7466 5000 Bobby Morse Email: bobbym@buchanan.uk.com