Boart Longyear — H1 2023 Earnings Presentation
25 slides from Boart Longyear's earnings presentation, Aug 25, 2023
Slide 1: Half Year 2023 Results
Half Year 2023 Results August 25, 2023
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Boart Longyear Group, ARBN 652 848 103 (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 purpo
Slide 3: Three Divisions Driving Long-Term Growth
Three Divisions Driving Long-Term Growth Drilling Services Global Products Veracio Industry-leading provider of drilling Offers the most advanced technology Leveraging artificial intelligence and services and largest, global, tooling and drill rigs, specifically advanced analytics to accelerate spec
Slide 4: Delivered Strong First Half Performance
Delivered Strong First Half Performance Consolidated Drilling Services Global Products Veracio Revenue: $545.7M Revenue: $382.7M Revenue: $159.3M Continued positioning +3.4% vs. HY’22 +4.7% vs. HY’22 +0.6% vs. HY’22 for growth Best first half since HY’2013 Best first half since HY’2013 Best first ha
Slide 5: Electrification Driving Long-Term Demand for Green Metals
Electrification Driving Long-Term Demand for Green Metals Pipeline Activity Index, May 2021 – Jun 2023 Project Drilling Activity by Commodity, May 2021 – Jun 2023 Source: S&P Global Market Intelligence as of 15 July 2023. Source: S&P Global Market Intelligence as of 4 July 2023. PGM = platinum group
Slide 6: HY'23 Divisional Performance
HY’23 Divisional Performance 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 financial information is provided so that investors can better understand
Slide 7: Bigger vision. Smarter data. Smaller footprint.
Bigger vision. Smarter data. Smaller footprint. By fusing science and technology, Veracio helps miners ▪ Sensing, automation and AI technologies leverage their opportunities while mitigating the social ▪ Accelerating exploration and orebody confidence and environmental impact of their decisions. ▪ W
Slide 8: ESG Achievements for HY'23
ESG Achievements for HY’23 Sustainability Reporting Safety Achievement Diversity Community Engagement Published our second Commemorated a four- Celebrated diversity Planted over 100 trees annual ESG report year injury free across our global in collaboration between highlighting our milestone at our
Slide 9: Financial Performance
Financial Performance LS 600 (right) and SV 600 (left)
Slide 10: Financial Process Improvement – Focal Areas
Financial Process Improvement – Focal Areas Capital Allocation Evaluating investment opportunities based on risks and returns, particularly for Veracio’s growth Cash Flow Management Continue optimising receivables, payables and inventory Risk Management Managing political, geopolitical and commodity
Slide 11: Driving Revenue Expansion
Driving Revenue Expansion Consolidated Revenue ($ in millions) ▪ Driven by price and volume gains in Drilling Services and Global Products ▪ FX impacted mainly from Canada and Australia 11 | See page 25 for footnote descriptions
Slide 12: Adjusted EBITDA Expansion in Inflationary Environment
Adjusted EBITDA Expansion in Inflationary Environment 1 Consolidated Adjusted EBITDA ($ in millions) $(5.8) ▪ Benefitted from improved profitability within Global Products and Drilling Services ▪ Negatively impacted by inflation, mainly labour, freight, consumables, and raw materials ▪ FX impacted m
Slide 13: Cash Flow Discipline through Working Capital Management
Cash Flow Discipline through Working Capital Management Liquidity Management ($ in millions) Net Cash from Operating Activities $60.5 $22.5 $15.6 $19.2 $5.6 $1.5 $0 $5.3 $45.2 $45.2 $40.1 $34.8 Liquidity YE'22 Undrawn Cash YE'22 Cash from NWC Movement Taxes & Interest Net Investing Cash from FX Impa
Slide 14: Corporate Summary
Corporate Summary HM60 Production Tools
Slide 15: Driving Growth in 2023
Driving Growth in 2023 Drilling Services Global Products Veracio Reinvest strategically Grow strategically Innovate, build and scale 15 | See page 25 for footnote descriptions
Slide 16: Investment Highlights
Investment Highlights Vertically Integrated Industry Leader with Differentiated Offerings Providing 1 Competitive Advantages Unique Integrated Provider of Best-in-Class Drilling Services, Products and 2 Technology Offerings Diverse Revenue Mix Providing Exposure to Most-Attractive Geographies and 3
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Safety Performance Focused on Continuous Improvement
Safety Performance Focused on Continuous Improvement 2 Total Incident Rate 2.5 2.33 2.23 1.99 1.90 1.89 2 1.78 1.56 1.62 1.62 1.61 1.41 1.39 1.42 1.45 1.5 1.35 1.29 1.31 1.22 1.22 1.16 1 0.5 0.19 0.18 0.22 0.16 0.12 0.13 0.10 0.11 0.11 0.15 0.10 0.09 0.10 0.11 0.08 0.02 0.07 0.06 0.03 0.00 0 FY'09 F
Slide 20: Year-Over-Year Comparison
Year-Over-Year Comparison Statutory Adjusted ($ in millions, except EPS) HY'23 HY'22 % Change ($ in millions, except EPS) HY'23 HY'22 % Change Revenue 545.7 527.6 3.4% Revenue 545.7 527.6 3.4% Gross Margin 106.1 101.0 5.0% Adjusted EBITDA1 70.7 69.2 2.2% Gross Margin as % of Revenue 19.4% 19.1% Adj.
Slide 21: Key Performance Indicators by Quarter
Key Performance Indicators by Quarter ($ in millions) Q2'23 Q1'23 Q4'22 Q3'22 Q2'22 Q1'22 Q4'21 Q3'21 Q2'21 Q1'21 Total Company Revenue 275.6 270.1 245.9 265.4 266.2 261.4 238.4 236.0 238.0 209.0 EBITDA 40.0 32.9 12.2 17.2 17.9 34.5 (4.8) 38.6 27.2 23.2 Adjusted EBITDA 1 36.4 34.3 22.4 32.6 32.1 37.
Slide 22: Consolidated and Products Performance Metrics
Consolidated and Products Performance Metrics Consolidated – Revenue by Region 30% US and Mexico 28% 20% EMEA 19% Products – Revenue by Product Category 19% Latin America 15% 43% Exploration Tooling 48% 17% Canada 19% 21% Production Tooling 22% 15% APAC 19% 17% Drilling Equipment 11% Consolidated –
Slide 23: Drilling Services Performance Metrics
Drilling Services Performance Metrics Drilling Services – Revenue by Commodity Gold 52% 56% Copper 34% 29% Non-Mining Water 4% 5% Energy 5% Drilling Services – Revenue by Drilling Type 3% 4% 41% Other Metals Surface Coring 4% 40% Iron Ore 1% 1% 26% RC/Rotary 0% 26% Nickel 1% Other 0% 21% 1% Undergro
Slide 24: Summary of Inter-Segment Eliminations
Summary of Inter-Segment Eliminations (1) Summary of Inter-Segment Eliminations HY'23 HY'22 HY'21 1. Transactions between segments are carried out at arm’s length and are eliminated on Drilling Services (DS) consolidation. DS Revenue Prior to InterCo Elimination $ 383 $ 365 $ 301 (-) DS InterCo Reve
Slide 25: Footnote Disclosures
Footnote Disclosures Footnote 1: 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 other significant and non- recurring tra