Boart Longyear — FY2021 Earnings Presentation
28 slides from Boart Longyear's earnings presentation, Feb 25, 2022
Slide 1: ASX Announcement: Full-Year 2021 Results Presentation
Boart Longyear Group Ltd. Incorporated under the laws of Ontario, Canada Ontario Corporation No. 002854330 ARBN 652 848 103 ASX ANNOUNCEMENT (ASX:BLY) 25 February 2022 ASX Markets Announcement Officer Exchange Centre 20 Bridge Street Sydney NSW 2000 FULL-YEAR 2021 RESULTS PRESENTATION Please find at
Slide 2: ASX Announcement Investor Relations and Media Contacts
Page 2 of 2 ASX ANNOUNCEMENT (ASX:BLY) Investor Relations: Media: Tony Shaffer Michael Weir Head of Investor Relations Citadel-MAGNUS Australia +61 8 8375 8300 Australia: +61 8 6160 4903 USA +1 801 243 5216 Mobile: +61 402 347 032 ir@boartlongyear.com mweir@citadelmagnus.com
Slide 3: Full-Year 2021 Results
Full-Year 2021 Results February 25, 2022 Jeff Olsen – Chief Executive Officer Miguel Desdin – Chief Financial Officer LF™ 160
Slide 4: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Boart Longyear Group, ARBN 652 848 103 (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 purpo
Slide 5: Full Year Highlights and Operational Overview
TruScan™ Operation Image captured pre-COVID-19 Full Year Highlights and Operational Overview Jeff Olsen
Slide 6: Unique Industry Leader, Diverse Revenue Mix, Revolutionary Technology Platform
Boart Longyear: Unique Industry Leader, Diverse Revenue Mix, Revolutionary Technology Platform Unique integrated provider of best-in-class drilling services, products, and technology offerings with a global footprint and strong balance sheet Diverse revenue mix providing exposure to most-attractive
Slide 7: Three Business Units Driving Long-Term Growth
Three Business Units Driving Long-Term Growth Drilling Services Global Products Geological Data Services Industry-leading provider of drilling Offers the most advanced technology Redefining the future of mineral services and largest, global, tooling and drill rigs, specifically exploration through i
Slide 8: Exploration Investment Expanding to Meet Surging Demand
Exploration Investment Expanding to Meet Surging Demand Exploration Price Index, Pipeline Activity Index and Aggregate Project drilling activity by commodity, Dec 2019 – Jan 2022 Market Capitalization, Dec 2019 – Jan 2022 Source: S&P Global Market Intelligence as of January 31, 2022 Source: S&P Glob
Slide 9: Strong Operational and Financial Performance During 2021
Strong Operational and Financial Performance During 2021 40% 40% 87% LTIR1 REVENUE ADJ. EBITDA2 FY’21 0.06 vs. FY’20 0.10 FY’21 $921M vs. FY’20 $657M FY’21 $112M vs. FY’20 $60M Critical Risk Management and refocusing Volume and price growth across all regions Volume and price growth as well as on EH
Slide 10: Creating a Sustainable Future for Our Stakeholders
Creating a Sustainable Future for Our Stakeholders 5,314 55,000 15x25 485 Global employees in Individual safety In 2021, the Company Number of employees 26 countries around training courses established a diversity who participated during the world completed by our goal of 15% female 2021 in BLY Acad
Slide 11: Global Drilling Services – Robust Growth for 2021
Global Drilling Services – Robust Growth for 2021 Non-Mining Key Financials ($ in millions) FY 2021 FY 2020 % Change Exploration 5% (Greenfield) 15% Revenue 615 456 35% Drilling COGS 533 408 31% Services 2021 53% Development SG&A 22 19 16% Revenue By Stage 27% EBITDA 94 50 88% Production EBITDA as %
Slide 12: Global Products – Vigorous Market Demand and Healthy Backlog
Global Products – Vigorous Market Demand and Healthy Backlog Key Financials ($ in millions) FY 2021 FY 2020 % Change E&I Tooling Revenue 307 201 53% 10% COGS 215 155 39% Capital Spares 14% Exploration 36% SG&A 37 29 28% Tooling Revenue by EBITDA 62 25 148% Product Category EBITDA as % of Revenue 20%
Slide 13: GDS Revolutionising Industry with Disruptive Technology
GDS Revolutionising Industry with Disruptive Technology GDS unlocks more value from Giving Boart Longyear competitive every dollar spent on drilling strengths ▪ Cost savings ▪ Leader in digitised drilling ▪ Improved accuracy ▪ Platform for long-term growth ▪ Faster results ▪ Continuous revenue strea
Slide 14: Financial Performance
Longyear Diamond Exploration Drill Bits Financial Performance Miguel Desdin
Slide 15: Building Financial Momentum During 2021
Building Financial Momentum During 2021 $921M $112M $164M REVENUE ADJ. EBITDA NET DEBT + 40% vs. FY’20 $657M + 87% vs. FY’20 $60M (81%) vs. FY’20 $855M Volume and price growth across all regions Volume and price growth as well as Impact of right-sized balance sheet [from operational efficiencies rec
Slide 16: Robust Revenue Growth Expected to Continue
Robust Revenue Growth Expected to Continue Consolidated Revenue ($ in millions) Revenue driven by higher DS and Products market demand and price increases to offset material and wage inflation 14 | See page 26 for footnote descriptions
Slide 17: Expanding Adjusted EBITDA
Expanding Adjusted EBITDA Consolidated Adjusted2 EBITDA ($ in millions) $17 ($19) $25 ($17) $53 ($9) $4 ($39) ($3) $11 ($1) $14 $112 $6 $84 $60 $40 FY Restructure Fixed FY Volume COGS/ SG&A COVID Price Inflation/ FX Other FY Restructure Asset Other FY 2020 Costs Asset 2020 Efficiencies Disruptions M
Slide 18: Cash Flow Discipline
Cash Flow Discipline Liquidity Management ($ in millions) ▪ Net working capital impacted by inventory investment to continue meeting customer commitments ▪ Taxes driven primarily by timing of prior year deferrals and increased profitability ▪ Capital investment of $58M increased 81% over 2020 ▪ Fina
Slide 19: Market Overview and 2022 Opportunities
Market Overview and 2022 Opportunities Jeff Olsen
Slide 20: Growth Opportunities for 2022
Growth Opportunities for 2022 Growth Opportunities Revenue ▪ Volume expansion ▪ Competitive pricing Global mining sector Expect strong growth ▪ Dynamic GDS adoption expected to continue from increased EBITDA surging investment in customer demand for ▪ Volume growth exploration drilling, equipment, ▪
Slide 21: Future Targets
Future Targets Explore dual listing in North America Accelerate growth of GDS Broaden ESG programme Margin expansion Conservative balance sheet Opportunistic geographic growth 19 | See page 26 for footnote descriptions
Slide 22: Q&A
Q&A LF™ 160 with FREEDOM Loader™
Slide 23: Appendix
LM 110 Underground Diamond Coring Drill Appendix
Slide 24: Leading Safety Performance Focused on Continuous Improvement
Leading Safety Performance Focused on Continuous Improvement Total Incident Rates 2.5 2.33 2.23 1.90 2 1.78 1.56 1.62 1.62 1.61 1.35 1.41 1.39 1.5 1.29 1.31 1 0.5 0.12 0.13 0.19 0.18 0.22 Leading safety performance KPIs 0.08 0.10 0.11 0.11 0.10 0.10 0.06 0.02 0 2021 LTIR: 0.06 FY'09 FY'10 FY'11 FY'1
Slide 25: Year-over-Year Comparison
Year-over-Year Comparison Statutory Adjusted ($ in millions, except EPS) FY 2021 FY 2020 % Change ($ in millions, except EPS) FY 2021 FY 2020 % Change Revenue 921 657 40% Revenue 921 657 40% Gross Margin 174 98 78% Adjusted EBITDA2 112 60 87% Gross Margin as % of Revenue 19% 15% Adj. EBITDA as % of
Slide 26: Key Performance Indicators by Quarter
Key Performance Indicators by Quarter ($ in millions) Q4'21 Q3'21 Q2'21 Q1'21 Q4'20 Q3'20 Q2'20 Q1'20 Q4'19 Q3'19 Q2'19 Q1'19 Total Company Revenue 238.4 236.0 238.0 209.0 175.8 172.3 138.3 170.9 166.0 191.1 198.0 189.9 Statutory EBITDA (4.8) 38.6 27.2 23.2 7.4 19.5 5.6 7.8 (13.5) 26.3 34.2 19.5 Adj
Slide 27: Diversified Revenue Mix
Diversified Revenue Mix 2% - Nickel LAM 1% - Other Energy Other Metals 11% 3% US 5% 24% Non-Mining Water 6% Company EMEA 20% Revenue by Revenue for 2021 Commodity by Region for 2021 Products and Copper 22% Services Drilling 61% Gold Services 23% APAC 21% Canada Production Drilling Other Drilling Equ
Slide 28: 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 amortization and before major restructuring initiatives, impairments of assets, and othe