31 July 2020 Boart Longyear Annual General Meeting - CEO’s Presentation Please find attached for release to the market, the President and CEO’s Presentation Slides to be presented this morning to the Company’s Annual General Meeting. Authorised for lodgement by: Robert Closner, Company Secretary About Boart Longyear Established in 1890, Boart Longyear is in its 130th year as the world’s leading provider of drilling services, orebody-data-collection technology, and innovative, safe and productivity-driven drilling equipment. With its main focus in mining and exploration activities spanning a wide range of commodities, including copper, gold, nickel, zinc, uranium, and other metals and minerals, the company also holds a substantial presence in the energy, oil sands exploration, and environmental sectors. The Global Drilling Services division operates for a diverse mining customer base with drilling methods including diamond coring exploration, reverse circulation, large diameter rotary, mine dewatering, water supply drilling, pump services, production, and sonic drilling services. The Geological Data Services division utilizes innovative scanning technology and down-hole instrumentation tools to capture detailed geological data from drilled core and chip samples. This valuable orebody knowledge gives mining companies the ability to make timely decisions for more efficient exploration activities. The Global Products division offers sophisticated research and development and holds hundreds of patented designs to manufacture, market, and service reliable drill rigs, innovative drill string products, rugged performance tooling, durable drilling consumables, and quality parts for customers worldwide. Boart Longyear is headquartered in Salt Lake City, Utah, USA, and listed on the Australian Securities Exchange in Sydney, Australia (ASX:BLY). More information about Boart Longyear can be found at www.boartlongyear.com. To get Boart Longyear news direct, follow us on Twitter, LinkedIn and Facebook. Investor Relations: Matthew Broomfield Director, Investor Relations Australia +61 8 8375 8300 USA +1 801 952 8343 [email protected]Media: Michael Weir Citadel-MAGNUS Australia: +61 8 6160 4903 Mobile: +61 402 347 032 [email protected]Page 1 of 13
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31 July 2020
Boart Longyear Annual General Meeting - CEO’s Presentation Please find attached for release to the market, the President and CEO’s Presentation Slides to be presented this morning to the Company’s Annual General Meeting. Authorised for lodgement by: Robert Closner, Company Secretary About Boart Longyear Established in 1890, Boart Longyear is in its 130th year as the world’s leading provider of drilling services, orebody-data-collection technology, and innovative, safe and productivity-driven drilling equipment. With its main focus in mining and exploration activities spanning a wide range of commodities, including copper, gold, nickel, zinc, uranium, and other metals and minerals, the company also holds a substantial presence in the energy, oil sands exploration, and environmental sectors. The Global Drilling Services division operates for a diverse mining customer base with drilling methods including diamond coring exploration, reverse circulation, large diameter rotary, mine dewatering, water supply drilling, pump services, production, and sonic drilling services. The Geological Data Services division utilizes innovative scanning technology and down-hole instrumentation tools to capture detailed geological data from drilled core and chip samples. This valuable orebody knowledge gives mining companies the ability to make timely decisions for more efficient exploration activities. The Global Products division offers sophisticated research and development and holds hundreds of patented designs to manufacture, market, and service reliable drill rigs, innovative drill string products, rugged performance tooling, durable drilling consumables, and quality parts for customers worldwide. Boart Longyear is headquartered in Salt Lake City, Utah, USA, and listed on the Australian Securities Exchange in Sydney, Australia (ASX:BLY). More information about Boart Longyear can be found at www.boartlongyear.com. To get Boart Longyear news direct, follow us on Twitter, LinkedIn and Facebook. Investor Relations: Matthew Broomfield Director, Investor Relations Australia +61 8 8375 8300 USA +1 801 952 8343 [email protected]
• This presentation has been prepared by Boart Longyear Limited, ABN 49 123 052 728 (Boart Longyear or the Company). It contains generalinformation about the Company’s activities as at the date of the presentation. It is information given in summary form and does not purport to becomplete. The distribution of this presentation in jurisdictions outside Australia may be restricted by law, and you should observe any suchrestrictions.
• This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of securities, or an offer,invitation or recommendation to sell, or a solicitation of an offer to buy, securities in any jurisdiction. Neither this document nor anything in it shallform the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors or potential investors anddoes not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors inconsultation with a professional advisor of their choosing when deciding if an investment is appropriate.
• The Company has prepared this presentation based on information available to it, including information derived from public sources that have notbeen independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness,completeness or reliability of the information, opinions or conclusions expressed herein.
• This presentation includes forward-looking statements within the meaning of securities laws. Any forward-looking statements involve known andunknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forward-looking statements mayalso be based on estimates and assumptions with respect to future business decisions, which are subject to change. Any statements,assumptions, opinions or conclusions as to future matters may prove to be incorrect, and actual results, performance or achievement may varymaterially from any projections and forward-looking statements.
• Due care and attention should be undertaken when considering and analysing the financial performance of the Company.
• All references to dollars are to United States currency unless otherwise stated, and financial results presented are not audited.Page 3 of 13
Geological Data Services - Digital technologies unlocking Orebody Knowledge
$2.9B2
Mining explorationTotal addressable market, 2019
Market Opportunity
Current Key Clients“[…] this technology provides data vital for our geologists to make more accurate and timely decisions, through faster and smarter targeting. [...] this is transforming how we explore.”
Newcrest Mining Limited2019 Annual Report
Significant Growth OpportunitiesSubstantial whitespace with existing customers, including many global accounts
New product introductions will significantly increase current offerings to customers
Growth opportunities in production mining and mineral processing
New customer opportunities with major and junior mining houses
Delivering on Strategic ObjectivesWe build our customers’ orebody knowledge
Demonstrating strong improvement Achieved over 14 million hours Lost Time Injury Free Adjusted EBITDA up 8% on comparable revenue over 2019 Reinvesting in business to capitalise on market growth, adding 35 technology advanced rigs in 2019
Progressing with strong upside potential Gold prices strengthening (>$1800/oz) which supports business with ~65% revenue from sector Prolonged underinvestment in new capital and new projects to meet increasing demand Market conditions favourable for solid organic growth
Stabilising Net Debt to EBITDA; next Debt maturity 2022 Continuing to invest in technology, growth & productivity Secured additional liquidity through refinancing of Senior Secured Notes
Advancing towards a healthier business Building track record of operating and financial performance and discipline Meaningful growth in Data Tools and Services (GDS) expected COVID-19 outbreak has had adverse impact on the business through the second quarter
• Footnote 2: Loss from Trading Activities, Adjusted Gross Margin, Adjusted Operating Loss, Adjusted SG&A, Adjusted EBITDA and are non-IFRS measures andare used internally by management to assess the underlying performance of the business and have been derived from the Company’s financial results by addingback significant items (i.e., charges relating to recapitalization, impairments, restructuring, and employee and related costs). In the case of Pro Forma AdjustedEBITDA, additional adjustments are made to account for one-time items. In the case of Loss from Trading Activities, adjustments are made to Adjusted OperatingLoss to remove other expense/income.
• Footnote 3: Volume has been calculated on a comparable basis and eliminates impacts of FX
• Footnote 4: Transactions between segments are carried out at arm’s length and are eliminated on consolidation.
• Footnote 5: Source: S&P Global Market Intelligence.