Slide 1: Results H1 2022
The Driller’s Choice RESULTS H1 2022 1
Slide 2: Summary H1 2022
SUMMARY H1 2022 Strong organic growth in the period backed by BUILDING FURTHER ON a solid performance from recent acquisitions and currency tailwinds. PROGRESS ACHIEVED Construction revenue growth of 55% with H1 2022 H1 2021 Change the return of large projects in North America. €'000 €'000 €'000 % R
Slide 3: Sustainability in Our DNA
SUSTAINABILITY IN OUR DNA Social Impact €2.5 Million+ Green Energy We are engineers. Our global CSR Our investment in Adopting and investing Efficiency comes naturally to us. programme for giving back technologies that reduce in sustainable energy to communities. emissions, since 2018. supplies. We
Slide 4: Business Review H1 2022
BUSINESS REVIEW H1 2022 4
Slide 5: Industry Sales Analysis
INDUSTRY SALES ANALYSIS 37% 30% Construction Construction 48% H1 52% H1 Mining 2022 Mining 2021 18% 15% Waterwell / Waterwell / Geothermal Geothermal 5
Slide 6: Industry Sales Analysis
INDUSTRY SALES ANALYSIS Mining +18% Construction +55% WE HAVE BUILT ON OUR REVENUE Substantial revenue growth in Our revenue into the GROWTH FROM the period for the Group of construction industry grew 2021 WITH 18%, with the vast majority by 55% in the period through OVERALL being organic growth. st
Slide 7: Mining
MINING Strong growth in the mining industry with increased revenue of 18% during the period. High demand for mining commodities is supporting growth within the industry. 6% 36% Our direct sales approach in North America accounts for a significant percentage of market share won in the period. We grew
Slide 8: Construction
CONSTRUCTION We built on our growth into the construction industry, with a 55% increase in revenue in H1 2022. 18% Large construction projects in the USA, with a solid performance from acquisitions led to significant growth in the construction industry in the Americas. We experienced encouraging gro
Slide 9: Waterwell / Geothermal
WATERWELL / GEOTHERMAL Our waterwell/geothermal revenue increased 8% in the period. A significant increase in revenue in the Americas due to recovery within the industry and acquisition growth. 79% % Northern Europe is the area where we invoice most of our waterwell/geothermal revenue and that incre
Slide 10: H1 2022 Financial Performance
H1 2022 FINANCIAL PERFORMANCE 10
Slide 11: Income Statement
INCOME STATEMENT Actual Prior Year Variance Strong revenue growth of 27% has lifted the €'000 €'000 €'000 % Sales Mincon products 70,906 57,390 13,516 24% performance of the Group, however this has been Sales bought in products 14,262 9,610 4,652 48% offset by margin pressure due to an inflationary
Slide 12: Income Statement
INCOME STATEMENT Monthly manufacturing cost increases, and our valued customer relationships, gives way for a delay in passing through cost increases to customers, as price increases must be agreed with customers and rolled out in an effective manner. Average employee costs increased across all regi
Slide 13: Balance Sheet
BALANCE SHEET H1 2022 2021 Change Balance Sheet €'000 €'000 % Intangible assets & Goodwill 41,423 40,157 We built on our balance sheet during the period: Property plant & equipment 51,167 50,660 • To meet demand in the period and future periods Deferred tax assets 1,089 1,075 Total Non-Current Asset
Slide 14: Cash Flow
CASH FLOW H1 2022 H1 2021 Variance Cashflow €'000 €'000 €'000 The investment in our factories in 2021 has given Profit 6,530 6,357 us the capacity to increase output, we then used Depreciation & amortisation 3,890 3,586 cash to increase our working capital to meet the Other non cash movements 2,544
Slide 15: Product Development
PRODUCT DEVELOPMENT 15
Slide 16: Greenhammer
GREENHAMMER We are in advanced discussions with a major mining contractor in Western Australia on commercialising the system. Planning to mobilise our test rig onsite to be be operated by Mincon personnel on a cost per metre drilled basis. There is a shortage of drilling rigs as well as operators in
Slide 17: Large Hammers & Bits
LARGE HAMMERS & BITS Our large hammer system has been successfully run with a customer in Malaysia. We followed this up with a site visit once covid restrictions were lifted, to inspect the drill and were very happy with what we found. The customer is waiting to inform us of the next project to use
Slide 18: Subsea Micropile Project
SUBSEA MICROPILE PROJECT We have successfully developed our small-scale prototype water powered hammer and bit for our subsea project. The full-size prototype system is being manufactured and should be ready to run on our test rig in a local quarry. A design for the subsea rig has been finalised and
Slide 19: Outlook H2 2022
OUTLOOK H2 2022 19
Slide 20: Outlook H2 2022
OUTLOOK H2 2022 We will be commissioning new plant We have made progress to While global conditions remain in H2 2022 and 2023 to bring in new catch up with our strong order challenging, we expect to deliver manufacturing practices to reduce book in H1 2022 while further revenue growth and to our ca
Slide 21: H1 2022 Q&A
H1 2022 Q&A 21
Slide 22: Appendix
APPENDIX 22
Slide 23: Mincon Milestones
MINCON MILESTONES 1977 1980 1990 1992 2003 Mincon is established in Mincon innovation starts Mincon starts Mincon establishes Mincon acquires a DTH Shannon, Ireland by with the development of its manufacturing in USA sales office in bit manufacturer in Paddy and Mary Purcell own drilling tools Perth
Slide 24: Mincon Milestones
MINCON MILESTONES 2013 2014 2015 2017 2018 Mincon successfully lists on Mincon acquires Rotacan, Mincon's Australian businesses Mincon acquires PPV Oy, Mincon acquires Driconeq the Irish and London stock a rotary drill bit are consolidated as Mincon a Finnish engineering Group, a Swedish drill pipe
Slide 25: Design Manufacturing Service
DESIGN MANUFACTURING SERVICE Mincon is building a business for To ensure consistent quality, Mincon’s comprehensive range of the future by investing in the next Mincon’s products are drilling solutions is backed by an generation of engineers to deliver manufactured at Mincon-owned unparalleled servi
Slide 26: The Mincon Customer
THE MINCON CUSTOMER Mincon has a comprehensive range of innovative rock drilling solutions and products that are used in a wide range of applications. MINING CONSTRUCTION WATERWELL / Open-pit mines for Casing systems, GEOTHERMAL extraction of minerals geotechnical solutions, Waterwell, geothermal an