Boart Longyear — FY2022 Earnings Presentation
25 slides from Boart Longyear's earnings presentation, Feb 24, 2023
Slide 1: Full Year 2022 Results
Full Year 2022 Results February 24, 2023
Slide 2: 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 3: Three Divisions Driving Long-Term Growth
Three Divisions Driving Long-Term Growth Drilling Services Global Products Veracio Industry-leading provider of drilling Offers the most advanced technology Leveraging artificial intelligence and services and largest, global, tooling and drill rigs, specifically advanced analytics to accelerate spec
Slide 4: Strong 2022 Results in Dynamic Environment
Strong 2022 Results in Dynamic Environment Financial Mining Sector Performance Drilling Services Global Products Veracio Long-term mining sector Revenue exceeded $1 Outstanding top- and Delivered revenue growth Introduced division fundamentals remain billion – first since 2013; bottom-line performan
Slide 5: Surging Metals Demand Driving Mining Sector Investment
Surging Metals Demand Driving Mining Sector Investment Pipeline Activity Index, Nov 2020 – Dec 2022 Project Drilling Activity by Commodity, Nov 2020 – Dec 2022 Source: S&P Global Market Intelligence as of 15 January 2023 Source: S&P Global Market Intelligence as of 6 January 2023. PGM = platinum gro
Slide 6: Dynamic Financial and Operating Performance
Dynamic Financial and Operating Performance +13% +7% REVENUE ADJUSTED EBITDA1 FY’22 $1,039M vs. FY’21 $921M FY’22 $124M vs. FY’21 $116M2 Robust Drilling Services and Global Impacted by Drilling Services price Products growth and volume gains +83% +3% +121% LTIR3 CAPITAL DEPLOYED NET PROFIT AFTER TAX
Slide 7: FY'22 Divisional Performance
FY’22 Divisional Performance The information presented is before inter-segment eliminations in order to reflect each business unit’s revenue and EBITDA assuming all inter-segment sales were made to third parties instead. This financial information is provided so that investors can better understand
Slide 8: Bigger vision. Smarter data. Smaller footprint.
Bigger vision. Smarter data. Smaller footprint. By fusing science and technology, Veracio will help ▪ Sensing, automation and AI technologies miners leverage their opportunities while mitigating the ▪ Accelerating exploration and orebody confidence social and environmental impact of their decisions.
Slide 9: ESG Achievements for 2022
ESG Achievements for 2022 Employee Training Diversity Emissions Management Safety Achievement Completed 63,000 Achieved 11% women Finalised Scope 1 & 2 Received ‘Safe Day training modules during in global workforce emissions baseline Everyday Gold Award’ 2022 against 15x25 goal project across global
Slide 10: Financial Performance
Financial Performance HM60 Production Tools
Slide 11: Driving Revenue Growth
Driving Revenue Growth Consolidated Revenue ($ in millions) ▪ Driven by robust price and volume gains in Drilling Services and Global Products ▪ FX impacted mainly from Canada and Australia 11 | See page 25 for footnote descriptions
Slide 12: Solid Adjusted EBITDA Growth in Inflationary Environment
Solid Adjusted EBITDA Growth in Inflationary Environment Consolidated Adjusted EBITDA1,2 ($ in millions) $(10) ▪ Benefitted from pricing gains within Drilling Services and Global Products and Drilling Services’ volume growth ▪ Negatively impacted by inflation, mainly consumables, raw materials, labo
Slide 13: Cash Flow Discipline through Working Capital Management
Cash Flow Discipline through Working Capital Management Liquidity Management ($ in millions) Net Cash from Operating Activities $17 $28 $81 $54 $21 $2 $5 $5 $47 $40 $35 $26 Liquidity YE'21 Undrawn Cash YE'21 Cash from NWC Movement Taxes & Interest Net Investing Cash from FX Impacts Cash YE'22 Undraw
Slide 14: Corporate Summary
Corporate Summary HM60 Production Tools
Slide 15: Driving Growth in 2023
Driving Growth in 2023 Drilling Services Global Products Veracio Reinvest strategically Grow strategically Innovate, build and scale 15 | See page 25 for footnote descriptions
Slide 16: Investment Highlights
Investment Highlights Vertically Integrated Industry Leader with Differentiated Offerings Providing 1 Competitive Advantages Unique Integrated Provider of Best-in-Class Drilling Services, Products and 2 Technology Offerings Diverse Revenue Mix Providing Exposure to Most-Attractive Geographies and 3
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Safety Performance Focused on Continuous Improvement
Safety Performance Focused on Continuous Improvement Total Incident Rates3 2.5 2.33 2.23 1.90 2 1.78 1.56 1.62 1.62 1.61 1.41 1.39 1.45 1.5 1.35 1.29 1.31 1 0.5 0.19 0.18 0.22 0.08 0.12 0.13 0.10 0.11 0.11 0.10 0.10 0.11 0.02 0.06 0 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 F
Slide 20: Year-Over-Year Comparison
Year-Over-Year Comparison Statutory Adjusted ($ in millions, except EPS) FY 2022 FY 2021 % Change ($ in millions, except EPS) FY 2022 FY 2021 % Change Revenue 1,039 921 13% Revenue 1,039 921 13% Gross Margin 177 174 2% Adjusted EBITDA2 124 116 7% Gross Margin as % of Revenue 17% 19% Adj. EBITDA as %
Slide 21: Key Performance Indicators by Quarter
Key Performance Indicators by Quarter ($ in millions) Q4'22 Q3'22 Q2'22 Q1'22 Q4'21 Q3'21 Q2'21 Q1'21 Q4'20 Q3'20 Q2'20 Q1'20 Total Company Revenue 245.9 265.4 266.2 261.4 238.4 236.0 238.0 209.0 175.8 172.3 138.3 170.9 EBITDA 12.2 17.2 17.9 34.5 (4.8) 38.6 27.2 23.2 7.4 19.5 5.6 7.8 Adjusted EBITDA
Slide 22: Consolidated and Products Performance Metrics
Consolidated and Products Performance Metrics Consolidated – Revenue by Region 28% US 24% 19% APAC 23% Products – Revenue by Product Category 19% Canada 21% 48% Exploration Tooling 36% 19% EMEA 20% 22% Production Tooling 25% 15% LAM 12% 11% Drilling Equipment 14% Consolidated – Revenue by Products a
Slide 23: Drilling Services Performance Metrics
Drilling Services Performance Metrics Drilling Services – Revenue by Commodity 56% Gold 61% 29% Copper 22% 5% Non-Mining Water 6% 3% Drilling Services – Revenue by Drilling Type Energy 3% 40% 1% Surface Coring Other 37% 1% 4% Other Metals 5% 26% RC/Rotary 26% 1% Iron Ore 0% 1% 24% Nickel Underground
Slide 24: Summary of Inter-Segment Eliminations
Summary of Inter-Segment Eliminations Summary of Inter-Segment Eliminations (1) 1. Transactions between segments are carried out at arm’s length and are eliminated on consolidation. 2020 2021 2022 Drilling Services (DS) 2. Represents inter-segment profits from Drilling Services / Costs of Drilling S
Slide 25: Footnote Disclosures
Footnote Disclosures Footnote 1: 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 other significant and non- recurring tra