TruScanTM Technology

2018 Results

February 2019

Jeff Olsen - Chief Executive Officer

Company Confidential - Unauthorized use or distribution prohibited. © 2019 Boart Longyear. All rights reserved.

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  • • 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 purport to be complete.The distribution of this presentation in jurisdictions outside Australia may be restricted by law, and you should observe any such restrictions.

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- Revenue up US$31 Million (4%), Adjusted EBITDA up $38 Million (87%)

Total Company - 2018

PERFORMANCE

VOLUMES 3

+12.5%

PRICE >2.0%

PROFITABILITY 2

US$ 38M

(2018 - US$81M)

OPERATING CASH FLOW

US$ 58M

(2018 - $4M)

FINANCIAL

RIG OPTIMISATION >9% additional shifts worked

PRODUCTIVITY +2%

Labour as % of Revenue

FACILITY FOOTPRINT 30% reduction

INVENTORY >5% reduction

OPERATING PERFORMANCE

Leading innovation in the industry

- Improving drill productivity and data collection

Geological Data ServicesLongyear™ Bits

  • • Launched full range Longyear™ Bits

  • • Yellow Bit achieved 938m (3,078ft)

    (TruCore™, TruShot™, TruScan™)

    • • TruShot™ global rollout in 2018

    • • Doubled GDS revenues

    • • TruScan™ now at multiple customer sites

  • • 70% increase in sales

Drilling Rigs with FREEDOM™ Loader Hands-Free Rod Handling

  • • Demand for hands-free rod management increasing

  • • Doubled LF™160 production

  • • LF ™160 now available in Africa

XQ™ Coring Rods

  • • XQ ™ Coring Rods launched

  • • Successful drill depth of >3,000m

  • • Industry standard for "Tough" Holes

Drilling Services: 2018 Operations

Key Financials (US $M):

FY 2018

FY 2017

Change Fav / (Unfav)

Revenue

534

501

7%

COGS

448

429

-4%

SG&A

26

30

15%

EBITDA

83

69

20%

EBITDA as % of Revenue

16%

14%

2018 Financial Highlights

  • VOLUMES - 9% Increase after eliminating FX and discontinued operations.

  • PRICING - Up >2% over 2017

  • EBITDA - Up 20% via volume and productivity increases

Revenue by Commodity

2018 Operating Highlights

  • SAFETY - Fewest Lost Time Injuries (4) and lost working days (127) since listing on ASX

  • OPERATING SHIFTS - Total shifts worked increased by >7%

  • PRODUCTIVITY - 2% Labour reduction as a % of Revenue

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Boart Longyear Limited published this content on 26 February 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 February 2019 23:47:02 UTC