Boart Longyear — H1 2022 Earnings Presentation
26 slides from Boart Longyear's earnings presentation, Aug 24, 2022
Slide 1: Half-Year 2022 Results
Half-Year 2022 Results August 24, 2022 Jeff Olsen, Chief Executive Officer Miguel Desdin, Chief Financial Officer Preparing TruCore for shipment
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 Business Units Driving Long-Term Growth
Three Business Units Driving Long-Term Growth Drilling Services Global Products Geological Data Services Industry-leading provider of drilling Offers the most advanced technology Redefining the future of mineral services and largest, global, tooling and drill rigs, specifically exploration through i
Slide 4: Strongest First Half Performance since 2013
Strongest First Half Performance since 2013 ▪ Healthy macroeconomic environment driven by electrification and green economy – industry facing long-term supply challenges, not demand concerns ▪ Robust 1H’22 revenue growth driven by substantial demand for Company’s products and services ▪ Adjusted EBI
Slide 5: Exploration Investment Expanding to Meet Surging Demand
Exploration Investment Expanding to Meet Surging Demand Pipeline Activity Index, January 2020 – June 2022 Project Drilling Activity by Commodity, May 2020 – June 2022 Source: S&P Global Market Intelligence as of July 11, 2022 Source: S&P Global Market Intelligence as of 5 July 2022. PGM = platinum g
Slide 6: Dynamic Financial and Operational Performance in 1H'22
Dynamic Financial and Operational Performance in 1H’22 129% 18% 14% LTIR3 REVENUE ADJ. EBITDA1,2 1H’22 0.16 vs. 1H’21 0.07 1H’22 $528M vs. 1H’21 $447M 1H’22 $69 vs. 1H’21 $61M Refocusing on Critical Risk Management Volume and price growth across Drilling Volume and price growth and operational effic
Slide 7: H1'22 Business Unit Performance
H1’22 Business Unit Performance The information presented is before inter-segment eliminations in order to reflect each business unit’s revenue and EBITDA assuming all inter-segment sales were made to third parties instead. This financial information is provided so that investors can better understa
Slide 8: TruGyro – GDS' Newest Digital Instrument
TruGyro – GDS’ Newest Digital Instrument ▪ Most compact and integrated north- seeking gyro tool in exploration drilling ▪ Industry-leading gyrocompass accuracy in as little as 30 seconds ▪ Finds true north without being impacted by magnetic interference ▪ Packaged in two boxes vs. five boxes for com
Slide 9: Creating a Sustainable Future for Our Stakeholders
Creating a Sustainable Future for Our Stakeholders ESG Highlights for 1H’22 Distributed >1,000 mosquito nets to Baselining Scope 1 & local African Published inaugural Scope 2 emissions in Finalised three-year communities for ESG report manufacturing plants ESG strategy World Malaria Day Eliminating
Slide 10: Financial Performance
Financial Performance Miguel Desdin Chief Financial Officer HM60 Production Tools
Slide 11: Managing Inflation and Supply Chain Headwinds
Managing Inflation and Supply Chain Headwinds Input Cost Inflation ▪ Expanded capacity by introducing a rod line manufactured in Germany to leverage lower cost steel within the European market ▪ Heavily impacted by rising energy costs, and tightening metals and freight markets ▪ Investing capital in
Slide 12: Revenue Growth and Momentum
Revenue Growth and Momentum Consolidated Revenue Bridge ($ in millions) ▪ FX impacted mainly from Canada and Australia ▪ Price and volume driven primarily by Drilling Services’ performance with Products contributing in both categories 12 | See page 26 for footnote descriptions
Slide 13: Strongest Adjusted EBITDA since 1H'13
Strongest Adjusted EBITDA since 1H’13 Consolidated Adjusted EBITDA1,2 Bridge ($ in millions) $(0.4) $(0.1) ▪ Benefitted from price and volume growth as well as Drilling Services’ 2021 productivity improvements ▪ Negatively impacted by increased manufacturing costs and input price inflation ▪ Costs o
Slide 14: Cash Flow Discipline
Cash Flow Discipline Liquidity Management ($ in millions) Net Cash from Operating Activities: $21M $54 $20 $13 $21 $26 $6 $20 $3 $47 $44 $38 $26 Liquidity FY'21 Undrawn Cash FY'21 Cash from NWC Movement Taxes & Interest Net Investing Cash from FX Impacts Cash HY 2022 Undrawn Liquidity HY ABL Operati
Slide 15: Corporate Summary
Corporate Summary Jeff Olsen Chief Executive Officer HM60 Production Tools
Slide 16: Improved Cost Structure Delivering Adj. EBITDA Margin Momentum
Improved Cost Structure Delivering Adj. EBITDA Margin Momentum 20.0% '11 ▪ Diligently working to improve cost '12 structure for several years 15.0% ▪ Made significant progress during 2021 with results showing via an increased adj. EBITDA1,2 margin Adj. EBITDA Margin '21 '19 10.0% '18 ▪ Margins for 1
Slide 17: Investment Highlights
Investment Highlights Vertically Integrated Industry Leader with Differentiated Offerings Providing 1 Competitive Advantages Unique Integrated Provider of Best-in-Class Drilling Services, Products and 2 Technology Offerings Diverse Revenue Mix Providing Exposure to Most-Attractive Geographies and 3
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix 19 | Strictly Confidential
Slide 20: Safety Performance Focused on Continuous Improvement
Safety Performance Focused on Continuous Improvement Total Incident Rates3 2.5 2.33 2.23 1.99 1.90 1.89 2 1.78 1.62 1.62 1.61 1.56 1.41 1.39 1.42 1.5 1.35 1.31 1.29 1.22 1.22 1 0.5 Leading Safety Performance KPIs 0.19 0.18 0.22 0.16 0.08 0.12 0.13 0.10 0.11 0.11 0.15 0.10 0.00 0.02 0.09 0.10 0.07 0.
Slide 21: Year-Over-Year Comparison
Year-Over-Year Comparison Statutory Adjusted ($ in millions, except EPS) 1H'22 1H'21 % Change ($ in millions, except EPS) 1H'22 1H'21 % Change Revenue 528 447 18% Revenue 528 447 18% Gross Margin 101 90 12% Adjusted EBITDA1,2 69 61 14% Gross Margin as % of Revenue 19% 20% Adj. EBITDA as % of Revenue
Slide 22: Key Performance Indicators by Quarter
Key Performance Indicators by Quarter ($ in millions) Q2'22 Q1'22 Q4'21 Q3'21 Q2'21 Q1'21 Q4'20 Q3'20 Q2'20 Q1'20 Q4'19 Q3'19 Q2'19 Q1'19 Total Company Revenue 266.2 261.4 238.4 236.0 238.0 209.0 175.8 172.3 138.3 170.9 166.0 191.1 198.0 189.9 EBITDA 17.9 34.5 (4.8) 38.6 27.2 23.2 7.4 19.5 5.6 7.8 (
Slide 23: Consolidated and Products Performance Metrics
Consolidated and Products Performance Metrics Consolidated – Revenue by Region 28% US 24% 20% APAC 23% Canada 20% Products – Revenue by Product Category 21% 48% Exploration Tooling 18% 36% EMEA 20% 22% Production Tooling 14% 25% LAM 12% 13% Drilling Equipment 1H'22 FY'21 14% Consolidated – Revenue b
Slide 24: Drilling Services Performance Metrics
Drilling Services Performance Metrics Drilling Services – Revenue by Commodity 55% Gold 61% 27% Copper 22% 6% Non-Mining Water 6% 5% Energy 3% Drilling Services – Revenue by Drilling Type 3% Other 1% 40% Surface Coring 2% 37% Other Metals 5% 1% Iron Ore 26% 0% RC/Rotary 26% 1% Nickel 2% 24% Undergro
Slide 25: 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 1H'20 1H'21 1H'22 eliminated on consolidation Drilling Services (DS) 2. Represents inter-segment profits from Drilling Services / Costs of Drilling
Slide 26: 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