Boart Longyear — Shareholder Meeting (May 2014)
14 slides from Boart Longyear's shareholder meeting presentation, May 19, 2014
Slide 1: Boart Longyear 2014 CEO Presentation
Boart Longyear 2014 CEO Presentation
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: Who we are
Who we are… Legacy of over 120 years of drilling expertise Leading provider of drilling services, drilling equipment, and performance tooling Industry leading product innovation Drilling Services offered in over 35 countries Drilling Products offered in over 100 countries 2014 Boart Longye
Slide 4: Safety & Environment
Safety & Environment Our goal is adding value with zero harm – leading our industry by returning our employees home safely each day and performing our work with minimal impact to our neighbors or the environment. Total Case Incident Rate Lost Time Incident Rate 3.26 0.34 2.23 2.33 2.15 1.78 0.19 1.5
Slide 5: 2013 was a challenging year
2013 was a challenging year… Mining Performance Key Commodity Trends SNL MEG Gold ($/oz.) - Exploration Spend (US$ Billions) 1,750 2012 Avg 21.5 1,500 2013 Avg 18.2 1,250 15.2 14.4 12.1 to 13.7 12.1 1,000 11.4 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 8.4 Copper ($/lb.) 4.00 3.75 2012 Avg 3.50 2013
Slide 6: 2013 key operating metrics reaching trough levels
…which resulted in 2013 key operating metrics reaching trough levels Drilling Services’ Historical Operating Rig Percentage 70% In late 2013, operating rig utilisation 60% fell below the low point experienced in April 2009 50% A surplus of global rig capacity is 40% 2009 Low % Operating Rigs lea
Slide 7: FY 2013 Financial Performance
FY 2013 Financial Performance (US $M) Year over Year Monthly Revenue Year over Year Financial Trends $2,012 Monthly Revenue Index 39% $1,223 3% 32% 58% $512 $526 $254 $298 $202 $107 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 Revenue Adj. EBITDA SG&A Net Debt 2012 2013 FY 2012 FY 2013 Despite
Slide 8: Material reductions in the overall cost structure
Material reductions in the overall cost structure (US $M) Total expenditure reduction of $890 million 13 To be realised Realised in 2013 $(460) in 2014 $188 $2,081 $160 $(232) $(55) $(60) $1,274 $(30) $(28) $(25) $1,191 Realised over $800m of expenditure reductions in FY2013 FY 2012 Variable Cost Ca
Slide 9: Recent actions taken to create a lean and scalable cost model
Recent actions taken to create a lean and scalable cost model The Business Then…June 30, 2012 The Business Now…Dec 31, 2013 25 Vice Presidents 13 Vice Presidents Executive Management Regional Management Structure Global Structure 4 Regional VP’s Elimination of 3 Regional VP’s Disaggreg
Slide 10: YTD 2014 Business Highlights
YTD 2014 Business Highlights Drought relief services Energy & Ramping up at new site geothermal drilling Recent contract renewals Recent contract win New gold mining contract Recent contract win Sonic drilling program Ramping up at new site New production tooling contract 2014 Boart Longyear AGM 10
Slide 11: Pioneering innovation & new product development
Pioneering innovation & new product development… Launched in 2H 2013 Launched in 1H 2014 M3 Rock Drill LM110 Rig DTH Hammers To be launched in 2H 2014 Mini Sonic Rig LF90D Rod LF350 Deep New Instrumentation Category Presenter Hole Rig 11 2014 Boart Longyear AGM
Slide 12: 2014 Business Outlook
2014 Business Outlook Forecasting & Guidance: The volatility and cyclicality of the industry make forecasting very challenging The Company will not provide Revenue and EBITDA guidance The Company will provide quarterly metrics & KPI’s, similar to what was provided for Q1 2014 on May 8, 2014. C
Slide 13: Key Performance Indicators
Key Performance Indicators Fourth First Quarter Quarter 2014 2013 2012 2013 Avg. Rig Count ~950 ~1,045 ~980 ~1,030 Avg. Operating Rig Utilisation ~30% ~40% ~60% ~30% Avg. Product Backlog ~$15M ~$43M ~$80M ~$20M Headcount ~5,600 ~8,300 ~11,100 ~5,700 Net Debt(1) $544M $571M $328M $526M Compliance Deb
Slide 14: Boart Longyear's 2014 Business Objectives
Boart Longyear’s 2014 Business Objectives Safety First Empower Focus on People Increase Margin Customers De-Lever Balance Sheet Reduce Generate Cost Cash Improve Create Liquidity Efficiencies 2014 Boart Longyear AGM 14