Slide 1: Interim Results
The Driller’s Choice INTERIM RESULTS
Slide 2: Summary H1 2023
SUMMARY H1 2023 H1 2023 H1 2022 Change H1 revenue growth impacted by contraction in mining revenue compounded by currency €'000 €'000 €'000 % headwinds. Gross margin maintained at 31.8% Mincon product 67,190 70,906 (3,716) (5%) Construction revenue flat on the back of strong Non-Mincon product 13,39
Slide 3: Business Review
BUSINESS REVIEW
Slide 4: Industry Sales Analysis
INDUSTRY SALES ANALYSIS REVENUE BY SEGMENT 39% 37% Construction Construction 43% H1 48% H1 Mining 2023 Mining 2022 15% 18% Waterwell / Waterwell / Geothermal Geothermal Mincon – The Driller’s Choice 4
Slide 5: Industry Sales Analysis
INDUSTRY SALES ANALYSIS OUR OVERALL MARKET SHARE HAS INCREASED MARGINALLY IN THE PERIOD WATERWELL / GEOTHERMAL MINING CONSTRUCTION • Construction revenue • Gains in waterwell / • Mining industry overall the same as prior year geothermal industry in contracted. despite FX headwinds. Europe / Middle E
Slide 6: Mining Sector
MINING SECTOR Revenue from the mining industry contracted by Mining Revenue Growth by Region 15% during the period; FX represented 5% of the reduction In the EME region, we received fewer orders from a large customer in this region due to their strategy to reduce inventory, unwinding their consumabl
Slide 7: Construction Sector
CONSTRUCTION SECTOR Revenue in the construction industry was flat Construction Revenue Growth by Region during the period, however this follows high double digit growth year-on-year since 2019 We had positive growth in our Europe & Middle East region due to our expanded footprint in Northern Europe.
Slide 8: Waterwell/Geothermal Sector
WATERWELL/GEOTHERMAL SECTOR Waterwell / Geothermal Revenue Growth by Region Waterwell / Geothermal revenue increased 10% in the period Due to higher energy costs, the geothermal industry has expanded in central and northern Europe. 6% 14% We have also won market share in the waterwell industry in th
Slide 9: Financial Performance
FINANCIAL PERFORMANCE
Slide 10: Income Statement
INCOME STATEMENT H1 2023 H1 2022 Change Our earnings have been impacted due to €'000 €'000 €'000 % reduced revenue in the period, though our Sales Mincon products 67,190 70,906 (3,716) (5%) gross margin percentage is consistent with H1 2022 Sales bought in products 13,395 14,262 (867) (6%) Revenue 8
Slide 11: Balance Sheet
BALANCE SHEET H1 2023 FY 2022 Change €'000 €'000 % We continue to build for future success, and Intangible assets & Goodwill 39,503 40,109 in the period, we commissioned €4.3 million Property plant & equipment 52,777 53,004 of property plant and equipment Deferred tax assets 2,446 2,050 Total Non-Cu
Slide 12: Cash Flow
CASH FLOW H1 2023 H1 2022 Variance €'000 €'000 €'000 Profit 4,899 6,530 We have implemented a Group wide Depreciation & amortisation 4,324 3,982 inventory reduction program, with a goal to Other non cash movements 2,901 2,452 reducing our overall inventory in terms of Cash From Operating Activities
Slide 13: Product Development
PRODUCT DEVELOPMENT
Slide 14: Greenhammer
GREENHAMMER The system has been running on the gold mine in Western Australia but we continued to experience issues with the output of the rig in H1 • These issues are due to a lack of reliable rig power output and are unrelated to the Greenhammer system. We are still working on this and will have a
Slide 15: Large Hammers and Bits
LARGE HAMMERS AND BITS Our large hammer system has been successfully run with a customer in Malaysia • We have been on the ground with the customer to analyse the performance and inspect the internals of the hammer. • The learnings from this have been incorporated in improvements to the design and t
Slide 16: Subsea Micropile Project
SUBSEA MICROPILE PROJECT Progress update and demonstration at our AGM in May was very well received • Hammer testing has progressed well at the local quarry and the learnings from this have been incorporated in a refined design for further testing. • We have experienced delays in delivery of externa
Slide 17: Outlook
OUTLOOK
Slide 18: Outlook H2 2023
OUTLOOK H2 2023 POSITIONING FOR GROWTH We have commissioned new We have now positioned While inflation and high interest and more efficient machinery in ourselves to reduce inventory rates have led to a slight H1 2023. This enables us to and release cash back into contraction in the mining manufactu
Slide 19: Q&A
Q&A
Slide 20: Appendix
APPENDIX
Slide 21: Sustainability in Our DNA
SUSTAINABILITY Social Impact €2.5 Million + IN OUR DNA Our global CSR programme for giving back Our investment in technologies that reduce to communities. emissions, since 2018. We are engineers. Efficiency comes naturally to us. Green Energy Global Safety Policy Adopting and investing Prioritising
Slide 22: Mincon Milestones
MINCON MILESTONES 1977 1980 1990 1992 2003 Mincon is established in Mincon innovation starts Mincon starts Mincon establishes Mincon acquires a DTH Shannon, Ireland by with the development of its manufacturing in USA sales office in bit manufacturer in Paddy and Mary Purcell own drilling tools Perth
Slide 23: Mincon Milestones
MINCON MILESTONES 2013 2014 2015 2017 2018 Mincon successfully lists on Mincon acquires Rotacan, Mincon's Australian businesses Mincon acquires PPV Oy, Mincon acquires Driconeq the Irish and London stock a rotary drill bit are consolidated as Mincon a Finnish engineering Group, a Swedish drill pipe
Slide 24: Design Manufacturing Service
DESIGN MANUFACTURING SERVICE Mincon is building a business for To ensure consistent quality, Mincon’s comprehensive range of the future by investing in the next Mincon’s products are drilling solutions is backed by an generation of engineers to deliver manufactured at Mincon-owned unparalleled servi
Slide 25: 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. WATERWELL / GEOTHERMAL Waterwell, geothermal energy wells 01 02 MINING CONSTRUCTION Open-pit mines for extraction Casing systems, geotechnical 03 of