Boart Longyear — Shareholder Meeting (May 2019)
17 slides from Boart Longyear's shareholder meeting presentation, May 2019
Slide 1: TruScan Technology Annual General Meeting May 2019
TruScanTM Technology Annual General Meeting May 2019 Company Confidential – Unauthorized use or distribution prohibited. © 2019 Boart Longyear. All rights reserved. Melbourne
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: Chairman's Address
LSTM250 Sonic Rig Chairman’s Address Marcus Randolph Company Confidential – Unauthorized use or distribution prohibited. © 2019 Boart Longyear. All rights reserved.
Slide 4: World's leading provider of drilling services, equipment, tooling
World’s leading provider… of drilling services, equipment, tooling and resource knowledge ▪ Building our customers’ orebody knowledge Our Focus ▪ Innovative drilling products and data management ▪ Safe, reliable, cost-efficient performance Commodity Revenue Regional Revenue Company Confidential – Un
Slide 5: Leading innovation in the industry
Leading innovation in the industry - Improving drill productivity and data collection Drilling Rigs with FREEDOM™ Geological Data Services Loader Hands-Free Rod Handling (TruCore™, TruShot™, TruScan™) • Accurate, low cost assay, • Demand for hands-free rod survey & orientation management increasing
Slide 6: Total Company – 2018
Total Company – 2018 - Revenue up US$31 Million (4%), Adjusted EBITDA up $38 Million (87%) FINANCIAL OPERATING SAFETY PERFORMANCE PERFORMANCE VOLUMES 3 RIG OPTIMISATION +12.5% >9% LTIR additional shifts worked 0.10 PRICE PRODUCTIVITY (2017 – 0.22) 1 >2.0% +2% Labour as % of Revenue PROFITABILITY 2 T
Slide 7: CEO's Address
Title Page for intro to CFO Section CEO’s Address Jeff Olsen Company Confidential – Unauthorized use or distribution prohibited. © 2019 Boart Longyear. All rights reserved.
Slide 8: FY18 – Financial Metrics
FY18 – FINANCIAL METRICS - Significant improvement in all financial performance metrics VOLUMES PROFITABILITY OPERATING CASH FLOW NET WORKING CAPITAL +12.5% US$ 81M US$ 4M 30.9% (2017 – US$43M) Adjusted EBITDA2 (2017 – Neg $54M) of SALES After eliminating impacts of First reported positive net cash
Slide 9: Consolidated Results Summary: 2018
Consolidated Results Summary: 2018 Continued operational improvements Adjusted EBITDA2 up $38M (88%) driven by: • Flow through from increased volumes and price improvements • Improvements from ongoing productivity initiatives • Further reduction in SG&A Company Confidential – Unauthorized use or dis
Slide 10: First Quarter 2019
First Quarter 2019 Met objectives to improve Liquidity (US $M) Total Company 3 Months % Change • Revenue - Increased $2M (1%). After eliminating impacts of FX, discontinued Ended Fav/(Unfav) operations and slow moving inventory business activity grew 8% 31-Mar-19 31-Mar-18 Revenue 190 188 1% ▪ Statu
Slide 11: Majors' Gold Reserves Depleting
Majors’ Gold Reserves Depleting - 25% reduction in average years of reserves since 2008 40 Au 35 30 Years of Reserves Remaining 25 Ave down 5 years 20 15 10 5 0 2008 years remaining 2017 years remaining Company Confidential – Unauthorized use or distribution prohibited. © 2019 Boart Longyear. All ri
Slide 12: Exploration Spend Trending Upward
Exploration Spend Trending Upward - S&P reported 19% increase in exploration spend through 2018 1,600 25 Au 1,400 Global Exploration Spend ($B USD) 20 1,200 BLY Revenues ($m USD) 1,000 15 800 10 600 400 5 200 - - 2002 2006 2010 2014 2018 DS Revenue $m Expl.Spend $b (Actual) Company Confidential – Un
Slide 13: Chairman's Conclusions
LongyearTM Diamond Coring Bits Chairman’s Conclusions Marcus Randolph Company Confidential – Unauthorized use or distribution prohibited. © 2019 Boart Longyear. All rights reserved.
Slide 14: Conclusion
Expect further delivery on Strategic Objectives We build our customers’ orebody knowledge Conclusion Boart Longyear is running well ▪ Adjusted EBITDA up 87% on 4% increased revenue over 2017 ▪ Adjusted EBITDA up US$81 Million on 5% revenue increase over 4 years ago Our markets are improving ▪ Shorta
Slide 15: Board and Management team
CHAIRMAN RETIRING Leaves the business in a strong position to capitalize on future market opportunities Board and Management team Company performing well thank Marcus Good, Stable CEO and Management Team 5th Anniversary approaching – renewal is necessary Search for a replacement is well advanced Com
Slide 16: Questions?
Questions? 16 Company Confidential – Unauthorized use or distribution prohibited. © 2019 Boart Longyear. All rights reserved. 16
Slide 17: Footnote Disclosures
Footnote Disclosures • Footnote 1: Per 200,000 work hours. • Footnote 2: Loss from Trading Activities, Adjusted Gross Margin, Adjusted Operating Loss, Adjusted SG&A, Adjusted EBITDA and are non-IFRS measures and are used internally by management to assess the underlying performance of the business a