Boart Longyear — FY2020 Earnings Presentation
25 slides from Boart Longyear's earnings presentation, February 2021
Slide 1: Full Year 2020 Results
TruScan™ Operations Full Year 2020 Results February 2021 Jeff Olsen – Chief Executive Officer
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer • This presentation has been prepared by Boart Longyear Limited, ABN 49 123 052 728 (Boart Longyear or the Company). It contains general information about the Company’s activities as at the date of the presentation. It is information given in summary form and does not
Slide 3: Boart Longyear is the world's leading provider of drilling services
Boart Longyear is The world’s leading provider of drilling services An expert in providing valuable orebody knowledge A pioneer in drilling equipment and performance tooling FY 2020 Results – See page 25 for footnote descriptions 3
Slide 4: Full Year 2020 Highlights
FULL YEAR 2020 HIGHLIGHTS - Material impact of COVID-19 on operating performance (US $M) FINANCIAL KEY SAFETY PERFORMANCE ACHIEVEMENTS REVENUE COVID-19 PANDEMIC (11%) Business continuity plan LTIR After eliminating impacts of FX implemented preserving value 0.10 NET PROFIT AFTER TAX 4 (2019 – 0.02)
Slide 5: Global Drilling Services – 2020 Operations
Global Drilling Services – 2020 Operations - Material impact of COVID-19 on operating levels but growth shoots witnessed in fourth quarter Key Financials (US $M): FY 2020 FY 2019 Change Revenue by Commodity Fav / (Unfav) Revenue 456 516 (12%) COGS 408 432 6% SG&A 19 21 10% EBITDA 50 90 (44%) EBITDA
Slide 6: Global Products – 2020 Operations
Global Products – 2020 Operations - Material impact of COVID-19 on operating levels but increasing backlog to support 2021 Change Key Financials (US $M): FY 2020 FY 2019 Fav / (Unfav) Revenue by Product Category Revenue 201 229 (12%) COGS 155 176 12% SG&A 29 31 5% EBITDA 25 31 (20%) EBITDA as % of R
Slide 7: Full Year 2020 Results – Chief Financial Officer
Image captured Pre-COVID-19 Full Year 2020 Results February 2021 Miguel Desdin– Chief Financial Officer
Slide 8: Financial Metrics – Full Year 2020
Financial Metrics – Full Year 2020 - Material impact of COVID-19 on operating levels but has been well managed OPERATING REVENUE PROFITABILITY LIQUIDITY CASH FLOW Adjusted EBITDA2 $657M $60M $49M $41M (2019 – $35M) (2019 - $35M) (2019 – $87M) After eliminating impacts of FX Net Profit After Tax4 Con
Slide 9: Consolidated Revenue Summary: Full Year 2020
Consolidated Revenue Summary: Full Year 2020 - Volumes directly effected by COVID-19 (US $M) Consolidated Revenue Bridge $6 $95 5% $4 $9 15% 20% $745 10% $645 $657 30% FULL YEAR FX COVID-19 FY 2019 Price Volume FULL YEAR 2019 Disruptions Comparable / Mix 2020 COVID-19 Impact through 2nd/3rd quarter
Slide 10: Consolidated Earnings Summary: Full Year 2020
Consolidated Earnings Summary: Full Year 2020 - Positive EBITDA despite combating impacts of COVID-19 (US $M) Consolidated Adjusted EBITDA2 Bridge $21 ($44) ($3) ($7) $20 ($14) ($6) $2 $4 $67 $60 $40 $34 FULL YEAR FX Inflation Restructure COVID-19 FY 2019 Price Volume/Mix COVID-19 FY Asset Restructu
Slide 11: Balance Sheet - Capital structure inhibiting growth
Balance Sheet - Capital structure inhibiting growth - Strategic review of capital structure underway (US $M) Net Debt Bridge Management actions implemented to reduce COVID-19 Impact ▪ Applicable Premium negotiated into Senior Secured Note as part of the 2017 Debt Restructure and payable at maturity
Slide 12: Balance Sheet – Cash Flow Discipline
Balance Sheet – Cash Flow Discipline - Liquidity management through COVID-19 pause supporting improved year-end liquidity (US $M) Liquidity Management Management actions implemented to reduce COVID-19 Impact ▪ Senior Secured Notes – 99.75% approval from Lenders to convert cash interest to PIK intere
Slide 13: Business Overview
MDRTM500 Underground Coring Rig Full Year 2020 Results February 2021 Jeff Olsen – Business Overview
Slide 14: Global Exploration Market - Poised for investment
Global Exploration Market - Poised for investment - Critical need for further investment in new reserves Gold Reserves Steadily Declining Gold miners reporting strong results and balance sheets, but need to replace reserves ▪ Gold pricing holding at historic highs of $1,800 an ounce GOLD ▪ Gold expl
Slide 15: Global Exploration – Fundamentals attracting investment
Global Exploration – Fundamentals attracting investment - January posted 8th consecutive month of raisings greater than $1 Billion Raisings reach an 8-year high Equity raisings reach an 8-year high in 2020 ▪ Gold capital raisings continue to grow Equity Raisings ▪ Junior & Intermediate financings st
Slide 16: Geological Data Services
Geological Data Services - A step change in the way we do business Problem Solution Mineral exploration uses inefficient systems for We develop digital sensor technologies deployed at the drill the collection of data to obtain orebody knowledge rig along with data analytics and machine learning to e
Slide 17: Strategic Review – Capital Structure inhibiting growth
Strategic Review – Capital Structure inhibiting growth - Underlying earnings strong and entering mining and metals growth cycle • Continue to work with advisor and lenders to improve capital structure • Process is ongoing but the outcome is uncertain at this time • Primary objectives include reducin
Slide 18: Summary
Delivering on Strategic Objectives maintains clear industry leadership - We build our customers’ orebody knowledge Drilling activities are improving and market fundamentals support growth in 2021 ▪ Decisive actions taken early to combat impacts of COVID-19; cost structure ready for future growth Sum
Slide 19: Questions?
Questions? 19 19
Slide 20: Appendix
LFTM160 and FreedomTM Loader Full Year 2020 Results February 2021 Appendix
Slide 21: Environment, Health and Safety
Environment, Health and Safety Leading safety performance focused on continuous improvement Leading safety performance KPI’s • LTIR – 0.10 • TCIR – 1.61 Key initiatives: Lost Time Incidents COVID-19 Business Continuity Plans implemented 2020 – 5 ▪ Global Directive documents have set a framework for
Slide 22: Year-Over-Year Comparison
Year-Over-Year Comparison Weathered the short-term impacts of COVID-19 on business FY 2020 Results – See page 25 for footnote descriptions 22
Slide 23: Key Performance Indicators by Quarter
Key Performance Indicators by Quarter Quarters ended 2020 Quarters ended 2019 Quarters ended 2018 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total Com pany Revenue (US$ millions) 175.8 172.3 138.3 170.9 166.0 191.1 198.0 189.9 180.1 196.4 206.4 187.8 EBITDA (US$ millions) 7.4 19.5 5.6 7.8 (13.5) 26.3 34.2
Slide 24: Diversified End-Market Exposure
Diversified End-Market Exposure Revenue by Type – Products & Services Revenue by Region – Products & Services Drilling Services Revenue by Stage FY 2020 Results – See page 25 for footnote descriptions 24
Slide 25: Footnote Disclosures
Footnote Disclosures • Footnote 1: Per 200,000 work hours. • Footnote 2: EBITDA is 'Earnings before interest, tax, depreciation and amortisation'. Adjusted EBITDA is 'Earnings before interest, tax, depreciation and amortisation and before major restructuring initiatives, impairments of assets, and o