Slide 1: Mincon Results 2021
The Driller’s Choice MINCON RESULTS 2021
Slide 2: Summary 2021
SUMMARY 2021 We addressed major operational 5 Year Revenue Growth hurdles to deliver 11% revenue growth (in € millions) Broadened our approach in the construction € 144 industry to capture growth with smaller projects € 130 € 118 € 121 Organic Revenue growth into the mining € 97 industry of 16% 2017
Slide 3: Industry Sales Analysis
INDUSTRY SALES ANALYSIS 2021 SALES MIX 2020 SALES MIX Construction Construction 30% 31% Mining Mining 53% 51% Waterwell / Waterwell / Geothermal Geothermal 17% 18% 2021 2020 Construction 42,620 39,821 Water/Geothermal 24,909 23,825 Mining 76,834 66,257 144,362 129,904 The Driller’s Choice
Slide 4: Environmental Impact
ENVIRONMENTAL IMPACT MINIMISING OUR CARBON FOOTPRINT We are investing in new plant and equipment in our We received a grant approval in Ireland for the factories to reduce our environmental impact by design and development of mooring systems for lowering our manufacturing carbon emissions offshore w
Slide 5: Social Responsibilities
SOCIAL RESPONSIBILTIES Some of the projects we are involved in today and during the coming year: EQUALITY We are removing social obstacles for young girls to attend school in developing communities WATER We will be providing essential needs for schools such as clean water We are embedded in a wide r
Slide 6: Our Industries
OUR INDUSTRIES The Driller’s Choice
Slide 7: Mining
MINING Our revenue expansion in the mining industry was particularly strong, with organic growth of MINING REVENUE GROWTH 16% Developed our mining business further with the direct sales approach in our EME and North America regions 20% 97% Much of our growth was experienced in the second half of 202
Slide 8: Construction
CONSTRUCTION CONSTRUCTION REVENUE GROWTH We achieved 7% growth in construction revenue in 2021 Our revenue growth in the industry was achieved through winning smaller projects and further global reach -12% The Americas region decrease in construction 23% revenue was due to fewer large construction p
Slide 9: Waterwell / Geothermal
WATERWELL / GEOTHERMAL WATERWELL/GEOTHERMAL REVENUE GROWTH Our waterwell/geothermal revenue increased across the Group by 5% in 2021 The majority of our waterwell/geothermal revenue is earned in Northern Europe through -1% the sale of our products for geothermal drilling and casing 41% The industry
Slide 10: 2021 Financial Performance
2021 FINANCIAL PERFORMANCE
Slide 11: Income Statement
INCOME STATEMENT 2021 2020 Change Continuing operations €'000 €'000 % Sales Minon product 118,802 108,556 9% Sales non-Mincon product 25,560 21,347 20% We achieved further revenue growth while Revenue 144,362 129,903 11% also addressing major operational hurdles Gross margin 48,763 45,717 7% Revenue
Slide 12: Income Statement
INCOME STATEMENT The pandemic severely impacted our manufacturing in Q1 2021, which had an impact on our gross margin for that period We did recover during Q2 2021 and that is evident in our increased revenue achieved in H2 2021 Transportation of our product was a major operational challenge during
Slide 13: Balance Sheet
BALANCE SHEET Balance Sheet Intangible assets, Goodwill & other 2021 €'000 2020 €'000 Change % 41,232 38,080 Property plant & equipment 50,660 45,820 We increased our holding of finished Non-Current Assets 91,892 83,900 10% products to ensure on time supply to Inventory 63,050 53,017 our customers T
Slide 14: Cashflow
CASHFLOW 2021 2020 Change Cashflow €'000 €'000 % We invested a net €6.8 million in capital Profit for the year 14,600 14,386 equipment into the business in 2021 with: Adjustments 10,537 11,079 Cash from operating activities 25,137 25,465 (1%) Further improvements in equipment to increase Changes in
Slide 15: Cash Invested
CASH INVESTED The Driller’s Choice
Slide 16: Product Development
PRODUCT DEVELOPMENT | =
Slide 17: Greenhammer
GREENHAMMER We finally got site access and successfully ran our 10” system on our own Mincon test rig Positive performance figures with good reliability and penetration rates up to 2 times faster than existing system Continued Covid restrictions has meant we have not yet made the expected step to co
Slide 18: Large Diameter / Low Pressure Hammer
LARGE DIAMETER / LOW PRESSURE HAMMER The system was run by the customer with Mincon supporting them remotely System was successfully run, and performance figures were several times faster than existing technology Once travel restrictions are lifted, we plan to get onsite to supervise first-hand any
Slide 19: Subsea Micropiles Project
SUBSEA MICROPILES PROJECT Positive progress on this exciting project Disruptive Technology Innovation Fund award to a Mincon-led consortium involved in developing a certified anchor foundation solution for the offshore wind industry Onsite testing has been carried out in Shannon of the water powered
Slide 20: Outlook 2022
OUTLOOK 2022
Slide 21: Outlook 2022
OUTLOOK 2022 In January 2022 we completed the acquisition of Spartan Drill Tools, based in Fruita Colorado, which produces high quality drill pipes and related products. An important aspect of this deal is that we can integrate certain aspects of drill pipe manufacturing with available capacity and
Slide 22: Mincon Results 2021 Q&A
The Driller’s Choice MINCON RESULTS 2021 Q&A
Slide 23: Appendix
APPENDIX The Driller’s Choice
Slide 24: Direct Sales Approach
DIRECT SALES APPROACH We completed a Our direct sales We maintained our 77/33 As manufacturing costs We continue to serve strategic acquisition in approach grew by 11% split of direct/distribution increase, a direct sales markets through Attakroc in Canada, and accounted for 73% sales, though we had
Slide 25: Mincon Milestones
MINCON MILESTONES 1977 - 1999 2000 - 2010 1977 2003 Mincon is established in Shannon, Mincon acquires a DTH bit Ireland by Paddy and Mary Purcell manufacturer in Benton, Illinois 1980 2005 Mincon innovation starts with the Mincon acquires a South African development of its own drilling tools distrib
Slide 26: Mincon Milestones
MINCON MILESTONES 2011 to present 2011 2015 2018 2021 2022 Mincon establishes a sales Mincon's Australian Mincon acquires Driconeq Hammer Drilling Rigs joins Mincon acquires Spartan office to service the West businesses are consolidated Group, a Swedish drill pipe the Mincon Group, bringing Drill To
Slide 27: Design, Manufacturing, Service
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 28: 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 / Geothermal Quarries, exploration Casing systems, Waterwell, geothermal drilling, open-pit mines geotechnical solutions