Slide 1: The Driller's Choice: 2022 Full Year Results
The Driller’s Choice 2022 FULL YEAR RESULTS
Slide 2: 2022 Summary
2022 SUMMARY ORGANIC GROWTH, MANAGING INFLATION & CONTINUING R&D INVESTMENT Strong organic revenue growth in the year with some assistance from price increases and currency tailwinds Financial Highlights 2022 2021 Change Construction revenue growth of 45% with the return of large project revenue in
Slide 3: Sustainability in Our DNA
SUSTAINABILITY IN OUR DNA SOCIAL IMPACT Our global CSR programme €2.5 MILLION+ Our investment in technologies for giving back that reduce emissions, to communities. since 2018. We meaningfully contribute to the environment and to the communities in where we operate. GREEN ENERGY GLOBAL SAFETY POLICY
Slide 4: 2022 Business Review
y 2022 BUSINESS REVIEW
Slide 5: Industry Sales Analysis
INDUSTRY Revenue by Segment SALES 36% ANALYSIS Construction €61.8 million 48% 2022 Mining €81.4 million 30% Construction €42.6 million 16% 53% 2021 Waterwell / Mining Geothermal €76.8 million €26.7 million 17% Waterwell / Geothermal €24.9 million Mincon – The Driller’s Choice 5
Slide 6: We Have Built on Our 2021 Revenue
WE HAVE BUILT ON OUR 2021 REVENUE OVERALL REVENUE GROWTH OF 18% FOR 2022 Revenue grew across our three industries, with construction in North America being the standout performer. The vast majority of our revenue growth was organic, with our 2022 acquisition in the USA contributing 0.5% for the year
Slide 7: Mining Sector
MINING SECTOR 6% REVENUE GROWTH IN 2022 Mining Revenue Growth by Region Direct sales approach in North America accounts for a significant percentage of market share won in 2022. Our decision to suspend all trading with our Russian customers in Q1 2022 held back the Group’s mining 44% revenue growth
Slide 8: Construction Sector
CONSTRUCTION SECTOR 45% REVENUE GROWTH IN 2022 Construction Revenue Growth by Region Our direct to market approach for mid-to-large construction projects had a significant impact on our construction revenue in the Americas. We experienced encouraging growth in Europe as 22% we rolled out improved pr
Slide 9: Waterwell/Geothermal Sector
WATERWELL/GEOTHERMAL SECTOR 7% REVENUE GROWTH IN 2022 Waterwell / Geothermal Revenue Growth by Region Our 2022 growth in waterwell / geothermal consumable supply was in North America, with the vast majority of waterwell drilling supply into smaller communities. We have gained market share through a
Slide 10: 2022 Financial Performance
2022 FINANCIAL PERFORMANCE
Slide 11: Income Statement
INCOME STATEMENT ORGANIC REVENUE GROWTH, MARGIN MANAGEMENT AND R&D INVESTMENT 2022 2021 Change Our revenue increased by 18% in 2022 (14% on a constant €'000 €'000 % currency basis), with the vast majority being organic Sales – Mincon products 141,830 118,802 19% revenue growth. Sales – bought-in pro
Slide 12: Balance Sheet
BALANCE SHEET PP&E INVESTMENT AND INVENTORY MANAGEMENT 2022 2021 Change Balance Sheet €'000 €'000 % Intangible assets & Goodwill 40,109 40,157 We have developed new manufacturing techniques Property plant & equipment 53,004 50,660 with key plant partners to reduce our energy Deferred tax assets 1,99
Slide 13: Cash Flow
CASH FLOW WORKING CAPITAL INVESTMENT TO MEET MARKET CHALLENGES 2022 2021 Change Cash from operations used to fund working capital €'000 €'000 €'000 Profit 14,704 14,600 requirements arising from challenging raw materials Depreciation & amortisation 8,093 7,210 and freight conditions in 2022. Other n
Slide 14: Product Development
PRODUCT | DEVELOPMENT = , 7 —
Slide 15: Greenhammer
GREENHAMMER System commenced running in September 2022 on our Mincon-owned test rig on a commercial contract in Western Australia. Productivity rates are at expected levels, but we have been experiencing reliability issues relating to the rig (unrelated to the Greenhammer) which has resulted in sig
Slide 16: Large Hammers and Bits
LARGE HAMMERS AND BITS Our large hammer system has been successfully operating on a construction contract in Malaysia and is still drilling. We had a team onsite to see the operation and are planning another trip to inspect the internal components when the next break in drilling happens. There r
Slide 17: Subsea Micropile Project
SUBSEA MICROPILE PROJECT We have successfully run the full-size water powered hammer prototype drilling system at a local quarry. This was run on an excavator mounted drilling mast which is one of three that have been manufactured and will be assembled to form the subsea drilling rig. The Subsea
Slide 18: 2023 Outlook
2023 OUTLOOK
Slide 19: Outlook 2023
OUTLOOK 2023 Our order books are strong, and supply chain conditions have improved, and this will allow us to focus on our working capital in 2023. Our goal is to diversify the business further into new industries through our advantage in engineering and our manufacturing capability. This will inclu
Slide 20: foe)
| ey co foe) N =) N
Slide 21: Appendix
APPENDIX
Slide 22: Mincon Milestones
MINCON MILESTONES 1977 - 1999 2000-2010 2011-2022 1977 2003 2011 2017 2020 Mincon is established in Mincon acquires a DTH bit Mincon establishes a sales Mincon acquires PPV Oy, a Mincon acquires Lehti Group Oy, the Shannon, Ireland by Paddy manufacturer in Benton, office to service the West Finnish
Slide 23: Design Manufacturing Service
DESIGN MANUFACTURING SERVICE Mincon’s comprehensive range of Mincon is building a business for the To ensure consistent quality, Mincon’s drilling solutions is backed by an future by investing in the next products are manufactured at Mincon- unparalleled service offering across its generation of eng
Slide 24: 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