Boart Longyear — H1 2021 Earnings Presentation
24 slides from Boart Longyear's earnings presentation, August 2021
Slide 1: Half Year 2021 Results
LFTM160 and FreedomTM Loader Half Year 2021 Results August 2021 Jeff Olsen – Chief Executive Officer
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: Boart Longyear is
Boart Longyear is The world’s leading provider of drilling services An expert in providing valuable orebody knowledge A pioneer in drilling equipment and performance tooling 3
Slide 4: Half Year 2021 Highlights
HALF YEAR 2021 HIGHLIGHTS - Recapitalisation initiatives driving record financial improvements (US $M) FINANCIAL KEY 800 75 SAFETY PERFORMANCE ACHIEVEMENTS 700 62 REVENUE RECAPITALISATION 58 Reached agreement with LTIR 600 45% overwhelming majority of lenders 0.07 for proposed substantial 500 50 NET
Slide 5: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) - Delivering on a commitment to our Core Values Safety is our highest priority, As the industry leader, our Vision is to help the and our advanced safety system world discover its Resource Potential in safety, includes Stop Work Authority, drilling innovati
Slide 6: Sharing our Story
Sharing our Story……….. S E S Competency Training Program roll-out in Supporting sustainable energy Mali (CTP) sources and growing electric 20 years free of lost time incidence in Jakarta vehicle demand G Laos Phukham site is named Group Winner E of Air Pollution Ideas in celebration of World Environ
Slide 7: People & Talent Building A Safe and Innovative Future
People & Talent Building A Safe and Innovative Future Business and Operationally Focused World-class People WORKFORCE PRESENCE DIVERSITY TALENT MANAGEMENT 5172 26 Diversity is our People Employees Safely Delivering Countries Across Strength Development is World-Class Services through our 3 Critical
Slide 8: Half Year 2021 Results – Chief Financial Officer
Half Year 2021 Results August 2021 Miguel Desdin – Chief Financial Officer
Slide 9: Financial Metrics – Half Year 2021
Financial Metrics – Half Year 2021 - Operating environment the best we have seen in many years OPERATING REVENUE PROFITABILITY LIQUIDITY CASH FLOW Net Profit After Tax4 $447M $25M $110M (2020 – $309M) Neg $38M (2020 – $30M) (2020 - $38) (2020 – Neg $61M) Strongest first half since Positive cash gene
Slide 10: Consolidated Revenue Summary: Half Year 2021
Consolidated Revenue Summary: Half Year 2021 - Resurgence in greenfield exploration investment driving growth (US $M) Consolidated Revenue Bridge 50% 44% 44% 54% 37% HY 2021 Results – See page 24 for footnote descriptions 10
Slide 11: Consolidated Earnings Summary: Half Year 2021
Consolidated Earnings Summary: Half Year 2021 - Our teams responded quickly and safely to meet rising activity levels (US $M) Consolidated Adjusted EBITDA2 Bridge Strongest first half earnings since 2013 $19 ($12) ▪ Price sprint implemented to cover rising costs and improving market fundamentals. Be
Slide 12: Balance Sheet: Continuing to Reflect Transition
Balance Sheet: Continuing to Reflect Transition - Initiatives toward sustainable capital structure under way (US $M) Net Debt Bridge 30 (27) 53 911 Management actions implemented to reduce COVID-19 855 impact ▪ Senior Secured Notes – Received consent from 99.86% of SSN holders to take interest by wa
Slide 13: Balance Sheet – Cash Flow Discipline
Balance Sheet – Cash Flow Discipline - Liquidity at levels that will support anticipated growth (US $M) Liquidity Management Interim financing and SSN consent to convert cash interest to Cash from $57 debt supported improvement in financial performance Operations $25M ▪ Bank provided relief on ABL c
Slide 14: Business Overview
LongyearTM Diamond Bits Half Year 2021 Results August 2021 Jeff Olsen – Business Overview
Slide 15: Update on Initiatives Toward a New Boart Longyear
Update on Initiatives Toward a New Boart Longyear - Substantial progress toward a sustainable capital structure • Proposed recapitalisation of the Company announced to the ASX on 13 May 2021 • Extraordinary General Meeting to be held at 10:00 am (Sydney time) on Wednesday, 8 September 2021, with not
Slide 16: Global Exploration Market - Poised for investment
Global Exploration Market - Poised for investment - Critical need for further investment in new reserves Pipeline Activity Strong, But Struggling to Keep Up Project Pipeline Activity Exploration struggling to meet demand ▪ Gold, copper, nickel, iron ore prices all remain at elevated levels ▪ High pr
Slide 17: Summary
Delivering on Strategic Objectives maintains clear industry leadership - Improving corporate structure will provide strong opportunities Drilling activities now at 2013 levels - and further growth expected over near term Summary ▪ Our teams responded quickly and safely to rising activity levels ▪ GD
Slide 18: Questions?
Questions? 18 18
Slide 19: Appendix
Half Year 2021 Results August 2021 Appendix
Slide 20: Environment, Health and Safety
Environment, Health and Safety Leading safety performance focused on continuous improvement Total Incident Rates1 2.50 2.33 2.23 1.99 1.90 2.00 1.78 1.62 1.62 1.56 1.52 1.41 1.37 1.42 1.50 1.35 1.24 1.22 1.22 1.00 0.50 0.19 0.18 0.22 0.12 0.13 0.10 0.11 0.11 0.15 0.10 0.09 0.10 0.08 0.07 - - 0.02 Le
Slide 21: Year-Over-Year Comparison
Year-Over-Year Comparison Weathered the short-term impacts of COVID-19 on business Statutory Adjusted2 Change Change (US $M except EPS) HY 2021 HY 2020 (US $M) HY 2021 HY 2020 Fav / (Unfav) Fav / (Unfav) Revenue 447 309 45% Revenue 447 309 45% Gross Margin 90 45 100% Adjusted Gross Margin 90 46 96%
Slide 22: Key Performance Indicators by Quarter
Key Performance Indicators by Quarter Quarters ended 2021 Quarters ended 2020 Quarters ended 2019 Quarters ended 2018 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total Com pany Revenue (US$ millions) 238.0 209.0 175.8 172.3 138.3 170.9 166.0 191.1 198.0 189.9 180.1 196.4 206.4 187.8 EBITDA (US$ millio
Slide 23: Diversified End-Market Exposure
Diversified End-Market Exposure Revenue by Type – Products & Services Revenue by Region – Products & Services Production Drilling Other 1% 4% LAM 11% USA 22% Rotary/RC 17% Surface Coring 28% APAC 24% Underground Coring 18% Canada 21% Drilling Equipment Performance 7% Tooling 25% EMEA 22% Drilling Se
Slide 24: Footnote Disclosures
Footnote Disclosures • Footnote 1: Per 200,000 work hours. • Footnote 2: EBITDA is 'Earnings before interest, tax, depreciation and amortisation'. Adjusted EBITDA is 'Earnings before interest, tax, depreciation and amortisation and before major restructuring initiatives, impairments of assets, and o