Boart Longyear — Shareholder Meeting (May 2015)
20 slides from Boart Longyear's shareholder meeting presentation, May 26, 2015
Slide 1: Annual General Meeting
Drilling Services – California, USA Annual General Meeting 26 May 2015 - Melbourne 1
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
UMXTM 10 Diamond Bit Chairman’s Address 3
Slide 4: Who we are
Who we are RESULTS GLOBAL PEOPLE HISTORY INTEGRITY DRILLING TECHNOLOGY PRODUCTS Boart Longyear is a leading provider of drilling services, drilling equipment, and tooling for mining and drilling companies globally. Customers rely on our unique ability to develop, field test and deliver any combinati
Slide 5: 125 Years of Mineral Drilling Expertise
125 Years of Mineral Drilling Expertise 1890 1950’s 1980’s 2007 2014 Longyear is founded Develops the Develops Boart Longyear debuts Introduced and drills its first hole wireline core impregnated bit on the Australian TruCore™ Core drilling system technology Stock Exchange Orientation tool 1890 1930
Slide 6: Global Drilling Services
Global Drilling Services Active across the mining stages Stage Boart Longyear Service Offering Drilling Services Revenue by Stage – FY2014 • Surface coring Greenfield Explore • Reverse Circulation ("RC") to get through overburden quickly 12% • Rotary for water exploration to build hydrology intellig
Slide 7: Global Products
Global Products Technology innovator Environmental & Key Minerals & Energy Rock Drill & Blast Infrastructure Innovations • UMX™ Diamond Bits Drilling Tools - Higher penetration/longer life • RQ™ Drill Rods - Most reliable deep hole rod • Q™ Wireline System - Most trusted wireline system • Roller Lat
Slide 8: Global presence
Global presence Serving our customers in major mining markets Europe, Middle East and Africa North America 146 Rigs Asia Pacific 434 Rigs 17% Revenue 222 Rigs 44% Revenue 26% Revenue Latin America 140 Rigs 13% Revenue Countries where Boart Longyear Products or Services are sold Distribution Centers
Slide 9: Multiple entry points into mining life cycle
Multiple entry points into mining life cycle Vertically integrated business Exploration Production Development Key Activities • Discovery of mineral deposits • Surface and underground extraction • Assessment of development Requiring Drilling • Integrity of core samples is crucial of minerals feasibi
Slide 10: Successful Recapitalisation supports ongoing efforts to improve performance
Successful Recapitalisation supports ongoing efforts to improve performance… Comprehensive recapitalisation Transaction New equity of $127m plus new debt of $225m extends debt maturity Highlights Company is better positioned to sustain operations through to market recovery Pre-Recapitalisation 10% S
Slide 11: Experienced Board of Directors and Management executing on strategy
…with experienced Board of Directors and Management executing on strategy Board and Management team have significant industry and financial expertise Board of Directors • Appointed February 2015 • Appointed February 2007 Marcus Randolph • Most recently chief executive of BHP Bruce Brook • Former fin
Slide 12: CEO's Address
LSTM250 MiniSonic™ Rig CEO’s Address 12
Slide 13: Safety & Environment
Safety & Environment Our goal is adding value with zero harm – leading our industry with our employees returning home safely each day and performing our work with minimal impact to our neighbours or the environment. • Safety Performance – Challenging start to 2015 with several hand and leg injuries,
Slide 14: Our business remained challenged in 2014, but some signs of stabilisation appeared
Our business remained challenged in 2014, but some signs of stabilisation appeared… (US$M) Revenue • Activity levels stabilised beginning in the 2nd half of 2014, 1,500 but remain at historically low levels 1,223 • Pricing pressure continues, particularly in the Drilling 1,000 867 Services division
Slide 15: Positive activity levels in North America and traction with cost efforts in Q1 2015
…with positive activity levels in North America and traction with cost efforts evident in Q1 2015… First Quarter Fourth Quarter (Mi l l i ons ) 3 Ended Ended 2015 2014 2013 2014 Total Company Revenue 187.2 197.4 370.2 205.8 Statutory EBITDA (14.2) (1.9) 34.6 (61.9) • Higher volumes in Drilling Servi
Slide 16: Increase in year-over-year operating rigs and steady backlog
…including an increase in year-over-year operating rigs and steady backlog Year over Year % Change in Drilling Services’ Operating Rigs 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% Flat -50% Products’ Order Backlog 350% Indexed to Jan-09 300% 250% 200% 150% 100% 50% 0%
Slide 17: Key mining performance indicators declined during 2014 and uncertainty persists
Key mining performance indicators declined during 2014 and uncertainty persists Mining Performance Key Commodity Trends3 SNL MEG3 Gold ($/oz.) - Exploration Spend (US$ Billions) 1,750 2012 Avg 21.5 SNL reported 2014 exploration budgets 1,500 2013 Avg 18.2 down ~25% from 2013 15.2 1,250 14.4 2014 Avg
Slide 18: Views for 2015 unchanged; no near-term catalysts to support a recovery
The Company’s views for 2015 are unchanged as we do not see near-term catalysts to support a recovery Overview of current market environment Commodities prices have shown signs of recent stabilization, albeit Positives of still below recent historic averages Current Production levels of commodities
Slide 19: 125 Years Strong – remain committed to deliver upon objectives
125 Years Strong – remain committed to deliver upon the Company’s objectives • Make safety personal Safety • Product innovation to enhance safety on site • Continuous improvement initiatives • Remain focused on maintaining and growing relationships Customer • Focus product development efforts around
Slide 20: Questions?
QUESTIONS? re ESTABLISHED 1890 @ BOART LONGYEAR 20