Slide 1: Results H1 2021
The Driller’s Choice RESULTS H1 2021 1
Slide 2: Summary H1 2021
SUMMARY H1 2021 We have built further on the good progress achieved in 2020, with revenue growth of 4%. BUILDING FURTHER ON PROGRESS ACHIEVED Market share won in some regions offset by pandemic impacts in two regions. Further growth into the construction industry with an increase of 10%, without inv
Slide 3: Mincon's History
MINCON’S HISTORY 1977 - 1999 2000-2010 2011-2021 1977 2003 2011 2015 2018 Mincon is established in Mincon acquires a DTH bit Mincon establishes a sales Mincon's Australian Mincon acquires Driconeq Group, a Shannon, Ireland by Paddy manufacturer in Benton, office to service the West businesses are co
Slide 4: Design
DESIGN Mincon is building a business for the future by investing in the next generation of engineers to deliver on its goal of designing innovative products that use less energy per metre drilled. More efficient drilling solutions will lower the total drilling cost, which also results in reduced ope
Slide 5: Manufacturing
MANUFACTURING To ensure consistent quality, Mincon’s products are manufactured at Mincon-owned factories. Where Mincon has control and oversight of all aspects of production – including proprietary heat-treatment processes. Mincon’s eight manufacturing facilities are strategically located around the
Slide 6: Service
SERVICE Mincon’s comprehensive range of drilling solutions is backed by an unparalleled service offering across its four global regions. Dedicated and experienced service teams work with customers to develop the best solutions. Feedback from the field is provided to product engineers, feeding a cycl
Slide 7: 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
Slide 8: Business Review H1 2021
BUSINESS REVIEW H1 2021 8
Slide 9: Sector Sales Analysis
SECTOR SALES ANALYSIS H1 H1 2021 2020 Mining 34,644 33,878 Construction 20,253 18,493 Waterwell / Geothermal 12,103 12,284 67,000 64,654 30% 29% Construction Construction 52% H1 52% H1 Mining 2021 Mining 2020 18% 19% Waterwell / Waterwell / Geothermal Geothermal 9
Slide 10: Sector Sales Analysis
SECTOR SALES ANALYSIS We have won market share in the mining Revenue into the construction industry industry where Covid-19 vaccinations increased by 10% in the period. are widespread, and restrictions are not interrupting normal business. Revenue grew through winning smaller projects in regions whe
Slide 11: Mining
MINING Our revenue into the mining industry grew by 2% during the period. The sustained high commodity prices are driving growth in the industry. 61% 9% Our main growth was in the EME region, more notably in the Middle East, and also in North America. 11% Mine access restrictions and temporary closu
Slide 12: Construction
CONSTRUCTION We built on our growth into the construction industry, with a 10% increase in revenue in H1 2021. 50% This growth was achieved through winning smaller projects, particularly in Europe. The decrease in construction revenue in the 26% Americas is due to not invoicing any large constructio
Slide 13: Waterwell / Geothermal
WATERWELL / GEOTHERMAL Our waterwell/geothermal revenue declined 1% in H1 2021. In Europe, the region where the majority of our waterwell/geothermal business, the industry is recovering from the pandemic, though our revenue declined there by 7%. 22% 7% Some of our customers ceased trading in Europe
Slide 14: Other Operational Activity
OTHER OPERATIONAL ACTIVITY NEW SOCIAL MINIMISING OUR REGIONAL INDUSTRIES RESPONSIBILITIES CARBON FOOTPRINT STRUCTURE We received a grant approval in It is clear that we are Our engineering focus continues Our regional management Ireland for the design and embedded in a wide range of to be on efficie
Slide 15: H1 2021 Financial Performance
H1 2021 FINANCIAL PERFORMANCE 15
Slide 16: Income Statement
INCOME STATEMENT Prior Actual Year Variance Revenue growth of 4%, with some regions €'000 €'000 €'000 % gaining market share and other regions growth Sales Mincon products 57,390 55,565 1,824 3% Sales bought in products 9,610 9,089 522 6% curtailed by the pandemic. Revenue 67,000 64,654 2,346 4% In
Slide 17: Income Statement
INCOME STATEMENT Congestion at seaports has disrupted sea freight and increased costs, this added additional pressure to our gross margin. Air freight was extensively used during the period, when we were most affected by the pandemic, to ensure on time delivery to our customers. The pandemic severel
Slide 18: Balance Sheet
BALANCE SHEET H1 2021 2020 Change Balance Sheet €'000 €'000 % Intangible assets & Goodwill 40,293 36,987 We built on our balance sheet during the period: Property plant & equipment 47,492 45,820 • To support business growth Deferred tax assets 615 1,093 Total Non-Current Assets 88,400 83,900 5% • To
Slide 19: Cash Flow
CASH FLOW Cashflow H1 2021 H1 2020 Variance €'000 €'000 €'000 Profit 6,357 6,358 We have invested the cash generated within Depreciation & amortisation 3,586 3,149 the business to improve our manufacturing Other non cash movements 1,057 1,434 efficiencies, through modernisation of our Cash from Oper
Slide 20: Cash Invested
CASH INVESTED Increase Decrease Total 20
Slide 21: Product Development
PRODUCT DEVELOPMENT 21
Slide 22: Greenhammer
GREENHAMMER The 10” Greenhammer system on our Mincon-owned rig is ready to drill, but site access is still restricted due to Covid-19 safety measures. As soon as these restrictions are lifted, we are ready to get onsite. We are progressing well on converting the 2 rigs that we sourced to run the lar
Slide 23: Large Hammers & Bits
LARGE HAMMERS & BITS Hammer has been assembled in Finland and has been functionally tested. Results have been an excellent match for the design simulations. Hammer and bit have been shipped to Malaysia, and is ready to commence drilling. Covid 19 restrictions has meant we could not get personnel ons
Slide 24: Subsea Micropile Project
SUBSEA MICROPILE PROJECT Working with Subsea Micropiles, an offshore foundations Company based in Dublin. Experienced team, many years of subsea project work with strong IP. Strong industry engagement and interest in the solution being proposed as well as an extensive portfolio of projects on succes
Slide 25: Outlook H2 2021
OUTLOOK H2 2021 25
Slide 26: Outlook H2 2021
OUTLOOK H2 2021 We have a positive viewpoint for the business in the coming months and beyond, with new products for current and new industries. However, the global pandemic has the possibility to deliver new challenges in the near term. We have ordered new machinery to modernise our existing manufa
Slide 27: H1 2021 Q&A
H1 2021 Q&A 27
Slide 28: Forward-looking statements
Any forward-looking statements made in this document represent the Board’s best judgment as to what may occur in the future. However, the Group’s actual results for the current and future financial periods and corporate developments will depend on a number of economic, competitive and other factors,