Boart Longyear — Shareholder Meeting (May 2018)
19 slides from Boart Longyear's shareholder meeting presentation, May 23, 2018
Slide 1: Annual General Meeting May 2018 – Melbourne
LRTM 350e Drill Rig and FL262 Freedom™ Loader Annual General Meeting May 2018 – 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
Chairman’s Address Marcus Randolph
Slide 4: Our Focus
World’s leading provider… of drilling services, equipment and tooling Tough, deep drill holes under difficult circumstances Our Focus Innovative drilling products and data management Safe, reliable, cost-efficient performance 4
Slide 5: Global Drilling Services
Global Drilling Services - Active Across all Mining Stages Stage Boart Longyear Service Offering FY 2017 Drilling Services Revenue by Stage Surface coring Explore Reverse Circulation ("RC") to get through overburden quickly Rotary for water exploration Surface coring Evaluate Reverse Circu
Slide 6: Advancing Drilling Equipment
Advancing Drilling Equipment - Continuing to deliver a safer and more productive drill rig LF™160 Rig and MDR700 Mobile LF™350e Rig and FREEDOM™ Loader Drill Rig FREEDOM™ Loader (Surface Coring) (Underground Coring) (Surface Coring and Deep Hole exploration) 100% hands-free for safe and Only mob
Slide 7: Leading innovation in the industry
Leading innovation in the industry - Continued focus on R&D through the cycle LongyearTM Bits XQTM Rods TruScanTM TruShotTM (Diamond Coring) (Deep-hole Drilling) (On-site Assay) (Down-hole Survey) Patented new diamond New patented thread Proprietary onsite Launching in 2018 bonding technolog
Slide 8: FY 2017 Highlights
FY 2017 Highlights - Improvement in operating performance and market outlook Continued Industry-leading Safety Performance LTIR – 0.22 (2016 – 0.11) 1 Safety TCIR – 1.62 (2016 - 1.41) 1 FOCUS: Clear, simple systems and processes Delivered productivity improvements across the organisation Perfo
Slide 9: CEO's Address
CEO’s Address 5 Jeff Olsen G LONGYEAR’ BOART
Slide 10: Safety & Environment
Safety & Environment - Leading safety performance focused on continuous improvement Total Incident Rates1 2.23 2.33 2.50 2.15 2.00 1.78 1.56 1.62 1.62 1.35 1.41 1.50 1.24 1.00 0.50 0.14 0.12 0.13 0.19 0.11 0.18 0.11 0.22 0.08 0.10 - Leading safety performance KPI’s FY 2008 FY 2009 FY 2010 FY 2011 FY
Slide 11: Consolidated Results Summary: FY 2017
Consolidated Results Summary: FY 2017 - Volume increasing along with continued operational improvements (US $M) Consolidated Revenue Bridge Revenue increased $97M (15%), driven by volume increases across both Drilling Services and Products Consecutive half on half increases in revenue since H120
Slide 12: Completed Recapitalisation
Completed Recapitalisation - Met objectives to reduce debt, improve liquidity and extend maturity (US $M) Reduced Debt Significant reduction in debt and future PIK rates Converted $196M into Equity, Further $88M reduced to 1.5% PIK Reduced Term Loan PIK rate to 8% (from 2019 onwards) Expan
Slide 13: First Quarter 2018
First Quarter 2018 - Market improvement continues & well placed to capture our share (US $M) Total Company Revenue - Increased $24M (15%), driven by volume 31-Mar-18 31-Mar-17 % Change increases across both Drilling Services and Products Revenue 188 164 15% Statutory EBITDA – Increased $17M from
Slide 14: Stronger Leading Indicators
Stronger Leading Indicators - Significant improvement in key customer metrics and outlook Mining industry debt ratings are improving Debt Ratios Improved industry balance sheets will result in increased drilling activity for reserve / resource replenishment Improvement of 99% in MSCI index sin
Slide 15: FY 2018 Strategic Objectives
FY 2018 Strategic Objectives - Build on the operational improvements delivered in 2017 Continue to be an industry leader Safety Simplify safety systems and standards Implement soft start hazard risk program Expand onboarding program to include detailed technical training Remain focused on main
Slide 16: Chairman's Conclusions
TruScan™ Innovative Core Scanning Technology Chairman’s Conclusions Marcus Randolph
Slide 17: Outlook for 2018 and Beyond
Outlook for 2018 and Beyond Forecast for global growth is >3% Resource stock prices up 65% and junior equity raisings up 49% over the last 2 years. Demand for our drilling products and services increased in 2017 for the first time since 2011. Our revenue growth has benefitted from increased
Slide 18: Questions?
Questions? @ BOART LONGYEAR
Slide 19: 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 Adjusted NPAT Loss are non-IFRS measures and are used internally by management to assess the underlying performanc