Boart Longyear — Investor Presentation (June 2022)
35 slides from Boart Longyear's investor presentation, June 2022
Slide 1: Boart Longyear June 2022
Boart Longyear Helping Our Customers Safely Uncover Reserves and Build Extensive Orebody Knowledge June 2022
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer IMPORTANT NOTICES & DISCLAIMER This investor presentation (Presentation) has been prepared by Boart Longyear Group Ltd. (ARBN 652 848 103) (Boart Longyear or the Company). This Presentation contains summary information about Boart Longyear, its subsidiaries and t
Slide 3: Important Information and Disclaimer
Important Information and Disclaimer - Past performance Prospective investors should note that past performance metrics and figures (including past share price performance of Boart Longyear) in this Presentation are given for illustrative purposes only and cannot be relied upon as an indicator of (a
Slide 4: Table of Contents
Table of Contents 01 Company Overview 02 Key Investment Highlights 03 Industry Backdrop 04 Financial Overview 05 Appendix 4
Slide 5: Company Overview
1 Company Overview = BOART 8 LONGYE,), FARO a IAI
Slide 6: Re-Positioning Boart Longyear to Better Serve Customers' Needs
Re-Positioning Boart Longyear to Better Serve Customers’ Needs Across The Mining Services Value Chain Established in 1890, Boart Longyear is in its 132nd year as the world’s leading provider of drilling services, orebody-data-collection technology, and innovative, safe and productivity- driven drill
Slide 7: Provider at the Foundation of the Green Energy Transition
Boart Longyear is a Leading Service, Products and Technology Provider at the Foundation of the Green Energy Transition What Boart Longyear Provides… Why This Matters… Metals are Critical to the Future… 1 Copper Demand from 'Energy Transition' 8,000 (mt) 20% Boart Longyear is at the Forefront of the
Slide 8: Creating a Sustainable Future for Our Stakeholders
Creating a Sustainable Future for Our Stakeholders Committed to Employeee Safety Industry-leading safety metrics from and Compliance Training 1.31 continuous improvement; in 2021, continued exceptional safety performance with lowest FY21 Statistics Total Case Incident Rate (TCIR) in 2021A TCIR in si
Slide 9: Drilling Services is the Partner of Choice
Drilling Services is the Partner of Choice with Breadth of Offering and Geographic Diversity Segment Description Total Rigs1 Select Customers 647 ◼ Industry-leading provider of drilling services and largest, global, specialised and 600 diversified driller ◼ Drilling methods include diamond coring ex
Slide 10: Drilling Products Benefits from a Vertically Integrated Business Model
Drilling Products Benefits from a Vertically Integrated Business Model that Fuels Innovation and Quality Improvements Segment Description Revenue Breakdown1 (FY21) Select Customers ◼ Advanced tooling technology and drill rigs, boasting world-class safety features Capital Equipment $82mm ◼ Innovative
Slide 11: Geological Data Services (GDS) Offers a Superior Alternative
Geological Data Services (GDS) Offers a Superior Alternative to Legacy Orebody Data Gathering Technologies GDS Overview Exploration Market Size1 ◼ Resource defining, geological digital technology ecosystem $ 0.3 enabling faster, cheaper, and more accurate assaying, logging, and data collection, incl
Slide 12: Growth Underpinned by Structural Improvements
Growth is Underpinned by Structural Improvements with Further Upside as Boart Longyear Executes Strategy $34 mm ($56)mm $91 mm $112 mm $43 mm Adj EBITDA 2017 Volume / Price Mix Productivity Inflation & Other Adj EBITDA 2021 EBITDA Bridge Drivers Volume / Price Mix Productivity Inflation & Other ◼ In
Slide 13: Key Growth Initiatives to Drive Above Market Growth
Key Growth Initiatives to Drive Substantial Above Market Top and Bottom- Line Growth TruScan and Significant TruTools GDS penetration commercialisation Future leads to greater EBITDA Automation and utilisation Growth supply chain Unquantified Selected optimisation Inorganic Increased service price O
Slide 14: Investment Highlights
2 Investment Highlights Ss) aay o cation |
Slide 15: Investment Highlights
Investment Highlights Vertically Integrated Industry Leader with Differentiated Offerings Providing Best-in-Class 1 Drilling Services, Products and Technology 2 Diverse Revenue Mix Providing Exposure to Tier 1 Geographies and Commodities Disruptive Proprietary GDS Technology to Upend Traditional Log
Slide 16: Vertically Integrated Industry Leader with Differentiated Offerings
Vertically Integrated Industry Leader with Differentiated Offerings Providing 1 World-Leading Drilling Services, Products and Technology Boart Longyear’s key competitive advantages including diverse product offering, proprietary designs and brand reputation allow them to stand out against peers Dril
Slide 17: World-Leading Drilling Services, Products and Technology (Cont'd)
Vertically Integrated Industry Leader with Differentiated Offerings Providing 1 World-Leading Drilling Services, Products and Technology (Cont’d) Boart Longyear can craft superior customer solutions as a result of its vertical integration of services and technology Drilling Services Drilling Product
Slide 18: Diverse Revenue Mix Provides Exposure To Tier 1 Geographies and Commodities
Diverse Revenue Mix Provides Exposure To Tier 1 Geographies 2 and Commodities Revenue by Geography 2021A Drilling Services Revenue (%) ◼ Provides services across a range of dynamic operating environments ◼ 2021A EBITDA = $82mm Gold Copper Other Elements ◼ 2021A EBITDA Margin = 13.3% 61% 22% 17% 2021
Slide 19: Disruptive GDS Technology to Upend Traditional Logging and Assaying
Disruptive GDS Technology to Upend Traditional Logging and 3 Assaying For Miners GDS unlocks more value from every dollar spent on drilling giving BLY competitive strengths Reduced Processing Significant Costs Limits Human Error Low Carbon Time Reductions Emissions ◼ TruScan reduces ◼ On-site sampli
Slide 20: Disruptive GDS Technology (Cont'd)
Disruptive GDS Technology to Upend Traditional Logging and 3 Assaying For Miners (Cont’d) GDS allows miners to reduce costs and increase exploration efficiency with shorter lead times, less personnel on site and shorter man hours on site Mining Projects Come with Significant Financial Risks Estimate
Slide 21: Robust Growth Profile
4 Robust Growth Profile The information presented is before inter-segment eliminations in order to reflect each business unit’s revenue and EBITDA assuming all inter-segment sales were made to third parties instead. This presentation of the financial information is provided so that investors can bet
Slide 22: Robust Growth Profile (Cont'd)
4 Robust Growth Profile (Cont’d) Boart Longyear has strong visibility into continued growth based on the increasing strength of its under contract revenue and backlog Next Twelve Months (NTM) Drilling Services Revenue Already Under Contract as of Year End ($mm)1 Drilling Products Backlog ($mm)2 As o
Slide 23: Strong Balance Sheet
5 Strong Balance Sheet Balance Sheet Capitalisation Table Recapitalisation 31-Dec-21 x2021 Adj. ◼ Recapitalisation in 2021 Instrument Balance ($mm) Coupon Maturity EBITDA resulted in 81% debt reduction ABL $39 L + 325 12-May-2025 ◼ Renewed balance sheet Capital Leases & Equipment Financing 39 NA NA
Slide 24: Transformed Business and Leadership to Drive Next Leg of Profitable Growth
Transformed Business and Leadership to Drive Next Leg of 6 Profitable Growth Boart Longyear (2006 - 2016) Boart Longyear (2017 and Beyond) Mining Supercycle: Deep Mining Downturn: Stabilisation & Rebuilding: Acceleration of Growth: 2006-2012 2013-2016 2017-2020 2021 and Beyond ◼ Significant growth i
Slide 25: Best-in-Class Management Team with Decades of Experience
7 Best-in-Class Management Team with Decades of Experience Jeff Olsen Miguel Desdin Denis Despres Chief Executive Officer Chief Financial Officer Chief Operating Officer Joined: 2014 Joined: 2019 Joined: 2016 26 years in industry 10 years in industry 41 years in industry Giovanna Moscoso Mike Ravell
Slide 26: Industry Backdrop
3 Industry Backdrop 26
Slide 27: Green Energy Transition Continues to Drive Strong Mineral Demand
Green Energy Transition Continues to Drive Strong Mineral Demand The deployment of clean energy technologies is far more dependent on base minerals than traditional power sources Minerals Used in Selected Clean Energy Technologies Transport (kg/vehicle) Power Generation (kg/MW) 206.1 15,379.2 10,211
Slide 28: Mining Sector Has Underinvested for Over a Decade
Mining Sector Has Underinvested for Over a Decade as Demand and Production Continues to Grow, Driving a Massive Supply / Demand Imbalance Mining Sector has Underinvested for Over a Decade While Increasing Production to Meet Growing Demand… Exploration Spend ($ in bn) Production1 $17 $21 20 4.0 Coppe
Slide 29: Imbalanced Supply / Demand Has Created Renewed Exploration Urgency
Increasingly Imbalanced Supply / Demand Picture Has Created Renewed Exploration and Development Urgency in Mining Sector Development Capex Trends at Global Mining Houses1 “A sustained [mining] upcycle is likely... Expanding GDP and the green Aggregate of projected transition support ongoing mineral
Slide 30: Financial Overview
A Financial Overview ttl f ay || ici
Slide 31: Disciplined Financial Practices to Support Value Creation
Disciplined Financial Practices to Support Value Creation ◼ In September 2021, Boart Longyear completed a significant recapitalisation, resulting in: Capital Structure — Reducing debt to less than $200mm (converting approximately ~$800mm to common Management stock) — Lowering interest expense ◼ $47m
Slide 32: Historical Financial Results (Consolidated Information)
Historical Financial Results (Consolidated Information) Revenue Adjusted EBITDA $921 $745 $112 $657 $87 $60 2019A 2020A 2021A 2019A 2020A 2021A Adjusted EBITDA – Capex Adjusted EBITDA Margin (%)1 11.7% 12.1% 9.1% $54 $36 $28 2019A 2020A 2021A 2019A 2020A 2021A 32 Source: Company filings | 1 Adjusted
Slide 33: 2021 Performance Highlights
2021 Performance Highlights 40% 40% 87% LTIR1 Revenue Adj. EBITDA 2021A vs. 2020A 2021A vs. 2020A 2021A vs. 2020A 0.06 vs. 0.10 $921mm vs. $657mm $112mm vs. $60mm Critical Risk Management and Volume and price growth across all Volume and price growth as well as refocusing on EHS fundamentals regions
Slide 34: Appendix
5 Appendix 34
Slide 35: Summary of Inter-Segment Eliminations
Summary of Inter-Segment Eliminations Summary of Inter-Segment Eliminations(1) Segment Reconciliation to Total Results, Revenue and Adj. EBITDA 2019 2020 2021 2019 2020 2021 DS Segment Revenue $516 $456 $615 Drilling Services DP Segment Revenue 224 196 297 DS Revenue Prior to InterCo Eliminations $5