#11H 2013 Results August 2013 Sonic Tasmania, Australia BOART LONGYEAR TM#2Important Notice and Disclaimer 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. 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 shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation 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 not been 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 and unknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forward-looking statements may also 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 vary materially 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. BOART LONGYEAR 1H 2013 Earnings Presentation 2#31H 2013 - Consolidated Results Summary (US $M) 1,500 1,000 500 1,099 Revenue 719 0 1H 2012 1H 2013 EBITDA 300 208 200 100 0 (100) (200) (300) 1H 2012 98 100 0 (100) (200) (300) (400) 1H 2012 • Sector-wide decline driven by reduced customer spend • Stable demand for underground applications and products Drill rig utilisation down ~25% year over year (235) 80 00 1H 2013 (Statutory) 1H 2013 (Adjusted)' Net Profit • Further cost reductions announced and underway with $90M of annual "run-rate" reductions to be realised in 2014 Approximately $297M of the $315M restructuring and impairment adjustments were non-cash • No interim dividend to be paid (60) (329) 1H 2013 (Statutory) 1H 2013 (Adjusted)1 BOART LONGYEAR 1 The income statement is presented on both a statutory and an adjusted basis. The adjusted measure excludes the impact of $315M ($269M net of tax) of restructuring and related impairment charges, of which US$297 million were non-cash. See appendix for reconciliation. 1H 2013 Earnings Presentation 3#4Aggregate Market Capitalization (US$ bil) 350 300 250 200 Industry indicators continue to decline... Mining Performance SNL MEG* - Pipeline Activity Index- Pipeline Activity Index (PAI) I Mining Industry Market Cap $2,500 $2,000 $1,500 $1,000 $500 $0 150 Jan-13 SNL MEG Indexed Metals Price JFMAMJJASONDJFMAMJ JASOND JFMAMJ JASONDJFMAMJJASOND JFMAMJ JASONDJFMAMJ 2008 Feb-13 2009 2010 2011 Bloomberg Mining Index** - Price Performance- Mar-13 2012 L 2013 Apr-13 May-13 Jun-13 Jul-13 Source: SNL Metals Economics Group **Source: Bloomberg BOART LONGYEAR 160 130 100 70 40 10 SNL MEG Pipeline Activity Index and Indexed Metals Price Gold (zo/$) Copper ($/lb) Iron Ore ($/mt) Nickel (91/$) Key Commodity Trends Jan 2009 Dec 2012 Apr 2013 Jul 2013 Jan 2009 Dec 2012 Apr 2013 Jul 2013 500 1,000 1,500 2,000 1.0 2.0 3.0 4.0 Jan 2009 Dec 2012 Apr 2013 Jul 2013 Jan 2009 Dec 2012 Apr 2013 Jul 2013 50 50 100 150 200 2.0 4.0 6.0 8.0 Source: Bloomberg & BLY Analysis *Percentage change is from Dec 2012 to July 2013 30%* 15%* 14%* 24%* 1H 2013 Earnings Presentation 4#5...driving key events in the mining industry... 100% 90% 80% PDAC: SNL Metals Economics Group Expects 2013 exploration spend to decline after a 3 year rally 70% 60% 50% 40% Jan-13 Feb-13 Barcelona Mining Conference Miners focused on cost reductions & reduced capex Gold Selloff Largest in 33 years China's GDP The International Monetary Fund cut its growth outlook for China from 8% to 7.75% Mining & Energy Project Cancelation Announcement that $147B projects in Australia were delayed or canceled over the past year Rio Tinto Targeted $5B of cost out over the next two years Newcrest Warns on profit and estimates a $6B asset write-down Barrick Newmont Asset write- down of $2B ~ BHP Billiton Announced run- rate cost savings of $3B with ~ more to come BHP Billiton Announced a $4B reduction of capex in FY14 Announced the delay of its Pascua Lama project in Chile Mar-13 Apr-13 May-13 Jun-13 Spot Gold Barrick Asset write- down of $9B Jul-13 BOART LONGYEAR (Indexed to Jan-13) Bloomberg Mining Index (Indexed to Jan-13) 1H 2013 Earnings Presentation LO#6120% 100% 80% 60% 40% 20% 0% 40% 50% 60% Dec-08 Feb-09 Apr-09 70% ...which continue to impact demand for our services and products. 80% Drilling Services Historical Utilisation Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 BOART LONGYEAR Aug-10 2009 Utilisation Rates Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 • • % Utilised Products Historical Order Backlog (Indexed to Jan-08) Declining global utilisation rates resulting in reduced demand for products Inventory in place to fill existing customer demand 2009 Order Backlog Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 1 1H 2013 Earnings Presentation 6 Decrease in utilisation driven by market conditions Excess capacity likely to create 2H pricing headwinds#7Key Focus Areas gg of ng d inles epilepsy An infection on ing from al length second principal the point where converge. Also fo Foch (fosh), Ferdi Azed cus; focus. to a sm a'tion n. istance ens or a dis of France; comman Allied Armies on th War I. fo'c's'le (fök'sǝl) n. fo-cus (fo'kǝs) n. pl. a The point to wh converges after other optical arran 1-19 pa yste thr t, c A 1. Continue to reduce costs. 2. Improve organisational efficiencies. 3. Generate cash to reduce debt 4. Explore refinancing alternatives. BOART LONGYEAR 1H 2013 Earnings Presentation 7#8Clear Results and Ongoing Focus on Reducing Costs 5,000 $ Increasing our Operating Margin to that of our Peers Creates Substantial Value 2012 Proforma EBITDA $600 $500 Potential EBITDA Increase: $173M 124 322 $400 $300 $200 $100 254 +/- relating to Macro Economics Commodity prices Production levels Mining capex & exploration spend Global GDP (China) Capital markets $5,000 S FY2012 Reported 2012 Restructuring FY2012 Adusted Improvement to Peer Low Incremental to Peer High $200 $150 $100 Potential Cost Out Opportunity $50 Status Quo (no action) 22 Cost Ruction Actions Additional Opportunity Total Margin pportunity 173 FY2012 Potential Source. Thomson Reuters "Includes impact of $70M "annualized" cost out actions announced in Nov 2012 . Focus Areas Define consistent global processes Streamline organizational structure Improve Products and Drilling Services synergies We are taking tangible steps to close this gap BOART LONGYEAR Year-to-date SG&A of $110M is down $45M from 1H 2012. We remain on track to realise at least the $70M announced last year BOART LONGYEAR 21 May 2018 May 2013 AGM Presentation We recently announced actions to further reduce costs by ~$90M 1H 2013 Earnings Presentation 8#9Improve Operating Margins Drive Costs Out of the Business Cost Out Opportunity $ in Millions $200 $150 $100 $50 $- 30 70 173 60 13 160 2012 Cost Reduction Actions 1H2013 Cost Reduction Actions 2H2013 Cost Reduction Actions Total Margin Opportunity Streamline organisational structure - - Focus Areas Consolidated Drilling Services operations: 23 zones to 11 territories Consolidating facilities around the world. Improve Products and Drilling Services synergies - Consolidated maintenance groups: reducing costs through process efficiency. Consolidated supply chain groups: reducing inventory and stocking locations Improve processes and efficiencies across the globe Steps to improve margins continue BOART LONGYEAR 1H 2013 Earnings Presentation 9#10115 % 110 % 105% 10000 7500 5000 1000 111 Newe 500 2002 mio) 2003 2004 200 Trend ungebrochen Financial Overview Jay Clement - Acting CFO BOART LONGYEAR TM#111H 2013 Consolidated Overview (US $M) Revenue ADJUSTED¹ 1H 2012 1H 2013 % Change 1,099 719 -35% Revenue STATUTORY 1H 2012 1H 2013 % Change 1,099 719 -35% Gross Margin 312 134 -57% Gross Margin 312 134 -57% Gross Margin as a % of Revenue 28% 19% Gross Margin as a % of Revenue 28% 19% EBIT / Op Profit 149 8 -95% EBIT/Op Profit 148 (307) NMF EBIT/Op Profit % of Revenue 14% 1% EBIT/Op Profit % of Revenue 13% -43% EBITDA 209 80 -62% EBITDA 208 (235) NMF EBITDA as a % of Revenue 19% 11% EBITDA as a % of Revenue 19% -33% NPAT 98 (60) NMF NPAT 98 (329) NMF NPAT as a % of Revenue 9% -8% NPAT as a % of Revenue 9% -46% EPS (cents) 21.6 (13.3) NMF EPS (cents) 21.5 (72.5) NMF Cash from Operations 2 62 34 -45% Cash from Operations 2 61 16 -74% Net Debt ³ 3 373 564 51% Net Debt³ 373 564 51% Headcount 11,440 7,147 -38% Headcount 11,440 7,147 -38% Significant restructuring and impairment charges impact statutory results 1 The income statement is presented on both a statutory and an adjusted basis. The adjusted measure excludes the impact of $315M ($269M net of tax) of restructuring and related impairment charges, of which US$297 million were non-cash. See appendix for reconciliation. 2 Before interest and tax payments 3 Excludes contingent liabilities relevant to determining bank covenant compliance. See footnotes #1 and #15 in the financial statements. BOART LONGYEAR 1H 2013 Earnings Presentation 11#12Reconciliation: Statutory to Adjusted EBITDA and NPAT (US $M) EBITDA 26 14 80 57 80 (235) 53 166 June 2013 Statutory EBITDA (329) Goodwill Equipment Inventory Impairment Impairment Impairment Intangibles/ Other Severance NPAT June 2013 Adjusted EBITDA (60) 19 10 40 37 163 June 2013 Statutory Goodwill Impairment Equipment Impairment Inventory Impairment Intangibles/ Severance Other June 2013 Adjusted NPAT NPAT BOART LONGYEAR 1 The income statement is presented on both a statutory and an adjusted basis. The adjusted measure excludes the impact of $315M ($269M net of tax) of restructuring and related impairment charges, of which US$297 million were non-cash. See appendix for reconciliation. 1H 2013 Earnings Presentation 12#131H 2013: Debt Bridge (US $M) 1,000 900 800 700 602 600 500 400 300 200 100 Operations 329 (307) Working Capital Investing/Financing I 90 (40) (71) 22 5 22 22 1 (55) 598 Gross Debt Net Loss Dec 2012 Impairments/ Depreciation/ Taxes/ Other Non- Amortization Interest Cash AR AP Inventory CAPEX Dividends/ Other Change in Cash I ■ Impairment & Restructuring: • Goodwill: $166M . Equipment: $53M • Inventory: $57M • Other: $39M I Accounts Payable: I . No seasonal uplift • I Capex: Minimal purchasing levels 1 due to sales being fulfilled I Full year 2013 forecast remains $50M I with existing stock I I I Inventory: 1. Continue to focus on inventory release cash generation through BOART LONGYEAR Gross Debt June 2013 1 Excludes contingent liabilities relevant to determining bank covenant compliance. See footnote #1 and #15 in financial statements. 1H 2013 Earnings Presentation 13#14Debt (US $M) Debt Maturity Bank Loan Facility $400 $500 Bank Loan1 $350 Senior Notes $400 $300 145 Undrawn $250 $300 T $200 $150 $100 350 $200 300 $100 T 305 Drawn $50 50 50 $0 2013 2014 2015 2016 $0 2021 30 June 2013 1 Scheduled reductions in commitments under bank loan facility (per amendment dated 29 June 2013): 2014 2015 Commitment Reduction 15-Jun 15-Aug $25M $25M 15-Jun $25M 15-Aug $25M Proactively exploring debt alternate financing arrangements in debt capital markets to ensure capital availability through industry cycle BOART LONGYEAR 1H 2013 Earnings Presentation 14#15Bank Debt Covenant Compliance Gross Debt/ EBITDA 4.0x 3.5x 3.0x 2.8x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x Leverage1 Compliant (as of 30 June 2013) 9.0x 4.0x Max. 7.7x 8.0x Leverage Ratio (per amendment dated 29 June 2013): EBITDA / Interest 7.0x 6.0x Reporting Period Maximum Leverage Ratio 30-Jun 31-Dec 5.0x 2013 4.00x 4.75x 4.0x 2014 4.75x 4.00x 3.0x 3.0x Min. 2015 4.00x 3.50x 2.0x 2016 3.50x 1.0x 0.0x Interest Cover Exploring alternative funding options to provide enhanced covenant flexibility ➤ Focused on ensuring the Company has adequate liquidity to manage the business in the ordinary course. despite market uncertainty ➤ Also focused on ensuring ongoing covenant compliance Engaged with bank lending group to finalize refinancing alternatives and will update the market at the appropriate time BOART LONGYEAR 1 At 30 June includes $14.8M of contingent liabilities. An additional - $24M of contingent liabilities was posted in August 2013 1H 2013 Earnings Presentation 15#16Tax Significant assessments received from Canada Revenue Agency (CRA) related to: • Transfer pricing for goods produced in Canada • Royalties paid to US affiliate for company intellectual property • Management fees paid to US affiliate for services provided to Canada Audit Period 2005-2006 2007-2009 Assessed Company Action C$69M Appealing since assessment is disproportionate to global income for period Impact Security of ~50% of assessment (~C$37M) posted to appeal assessment Audits nearing completion and assessments expected by end of 2013 • Assessments includes taxes, penalties and interest • "Competent authority" process expected to require 2+ years • Settlement among taxing jurisdictions Protects against double taxation Security is considered debt under bank agreement and may impact liquidity. BOART LONGYEAR 1H 2013 Earnings Presentation 16#17Business Overview Alan Sides Sr. Vice President - Drilling Services Northern Canada BOART LONGYEAR TM#18Operations (US $M) Drilling Services 1H 2012 1H 2013 % Change Revenue 817 538 -34% EBITDA 177 84 -53% 22% 16% EBITDA as a % of Revenue Products Revenue IEBITDA¹ EBITDA as a % of Revenue 1H 2012 1H 2013 % Change Cost: Global actions flowing through P&L Utilisation: At early 2009 levels Markets: Recent key wins - Chile, Saudi Arabia, Democratic Republic of Congo Price: Expect increasing pressure in 2H through 2014 Categories: Exploration slow, underground strong, water well flat Global Utilisation: Continues to decrease • Price: 1H stable, down less than 1% 282 181 -36% • • 68 22 -68% 24% 12% 1 Does not include restructuring and impairment charges BOART LONGYEAR Categories: Surface exploration slow, underground steady Backlog: Slightly above 2009 record low levels New products: Selective R&D investment continues including underground drill control interface and quiet rock drill 1H 2013 Earnings Presentation 18#19Driving Cost and Efficiencies Drilling Services Zone Restructure - Before 23 Zones Globally BOART LONGYEAR Marked locations are zone offices. Operations remain in 40+ countries. 1H 2013 Earnings Presentation 19#20Driving Cost and Efficiencies Drilling Services Zone Restructure - After 11 Territories Globally Marked locations are territory offices. Operations remain in 40+ countries. BOART LONGYEAR 1H 2013 Earnings Presentation 20#21Driving Cost and Efficiencies Improve Synergies: Products & Drilling Services BOART LONGYEAR Consolidate Maintenance Groups • • • • Over 40% reduction in employees New costing process Implementing models to reduce downtime & increase productivity Global coverage Elimination of duplicate sites Consolidate Supply Chain Groups • • • • Over 30% reduction in employees Consistent controls on inventory Reduction in inventory Over 30% of stocking locations will be consolidated 1H 2013 Earnings Presentation 21#22ત્ય Richard O'Brien President & CEO UT LF230 Coring Rig - Canada BOART LONGYEAR TM#23Key Performance Indicators 2013 2012 2009 Mid-Aug Mid-May Mid-Feb June June Rig Count ~1,035 ~1,040 1,065 ~1,200 -1,200 Rig Utilisation -50% -60% 58% -70% -50% Product ~$20M ~$35M $51M ~$62M ~$18M Backlog Headcount -6,300 ~8,000 8,680 -11,400 -6,100 Net Debt¹ -$545M ~$585M $554M -$373M -$750M Positive • • • • Underground business remains stable. Selective R&D investment continues Key Drilling Services project wins Opportunities to take cost out remains. Weaknesses • • • • • Commodity prices volatile. Miners continue to cut costs and pull back on jobs Global rig utilisation continues to decline 2H pricing pressure Additional inventory obsolescence non- cash expense in 2H Focus on reducing cost and paying down debt BOART LONGYEAR 1 Excludes contingent liabilities relevant to determining bank covenant compliance. See footnote #1 and #15 in financial statements. 1H 2013 Earnings Presentation 23#24Analyst Consensus Appears to be Lagging Current Market Conditions (US $M) 2013 Analysts' EBITDA Forecast • . 350 High: $307 High: = = Consensus 300 $293 High: $271 $256 $256 250 High: $233 High: Low: $218 $211 $235 200 $197 $194 Low: High: High: Low: $199 $193 Low: Low: $159 $159 150 $178 $176 $151 $146 Low: $140 Low: 100 $116 50 50 Nov-12 Feb-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Company expects the 2H 2013 results to be lower than the 1H 2013 Analyst expectations may not adequately reflect the risk of price erosion in the 2H and may assume larger benefit of cost savings initiative Low end of estimates are consistent with the Company's current view. Further industry volatility could impact results. BOART LONGYEAR 1H 2013 Earnings Presentation 24#25Shareholder Value Roadmap to Improve Performance Underperformed expectations Initiated actions to remove $70M of run rate cost New leadership Launched operational business review Reduced overhead & infrastructure Consolidated manufacturing & maintenance Reduced capex Initiated actions to remove $90M of run rate costs Position business to perform better "Through- the-Cycle" Increase capital structure flexibility Improve cash flow and reduce debt levels Increase operational and functional efficiencies and reduce costs Greater focus on returns Evaluate Strategic Options 2H12 BOART LONGYEAR Improve the Balance Sheet FIX the Core - Improve Margins & Returns 1H13 2H13 2014+ 1H 2013 Earnings Presentation 25#26VERSIT HEAD ASSEMBLY QUESTIONS? SURFACE CORING HESPORSABLE 目 5254 PRODUCTION STOPENE PRODUCTION SURFACE CORING 00 UNDERGROUND CORING DRILL CONTROL INTERFACE DRILLING SERVICES wwwcome to praying these spec ONE SOURCE DRILLING SERVICES DRILLING EQUIPMENT PERFORMANCE TOOLING for Mining and Drilling Companies Globally ERGON ROTARY MINE WATER SERVICES URAD ROTARY GREN BONIC NEAP LADH P ROTARY HORIZONTAL DRILLING MULTIPURPOSE 四 MULTIPURPOSE SAFETY WEEING AFTERMAET SERVICES LICATION DE ROTARY MULTIPURPOSE VC WINDS DRILLING EQUIPMENT Buat Langyard w PERFORMANCE TOOLING Dog by our plan, we proe te gat odance ng products in the indo AFTERMARKET PARTS AND SERVICES We of scores ence and noce ingr BOART LONGYEAR TM 1H 2013 Earnings Presentation 26#27Appendix BOART LONGYEAR TM#28Diversified End Market Exposure 1H 2013 Total BLY Revenue - Products & Services Other, 2% Production Rotary/RC, 20% Drilling, 5% Over 25% of total revenue comes from non-exploration Undergroun d Coring, 15% Performance Drilling Equipment, 6% Tooling, 20% Surface Coring, 32% 1H 2013 Total BLY Revenue by Region - Products & Services APAC, 26% LAM, 13% USA, 22% Global revenue base Canada, 18% EMEA, 21% 1H 2013 Drilling Services Revenue by Stage Non-Mining, 4% 1H 2013 Drilling Services Revenue by Commodity Water Services, 11% Diversified Environ- mental, 5% Other, 9% Energy, 6% Greenfield, 30% exploration revenue from all mining stages Other Metals, 7% Production (in-Pit), 40% Development (Near Mine/ Brownfield), 15% BOART LONGYEAR Nickel, 7% Gold, 42% Iron, 5% Copper, 20% Gold, Copper, Iron, and Nickel: ~75% of revenue 1H 2013 Earnings Presentation 28#291H 2013 Consolidated Overview (US $M) 1,099 (21) 1H-12 Price Revenue Bridge (351) Volume/Mix Adjusted EBITDA Bridge 208 (21) (136) 1H-12 Price Volume/Mix BOART LONGYEAR (9) 719 FX 1H-13 43 (1) 80 (14) Material/Labor Inflation SG&A/Other FX 1H-13 1 The income statement is presented on both a statutory and an adjusted basis. The adjusted measure excludes the impact of $315M ($269M net of tax) of restructuring and related impairment charges, of which $18M was paid in cash in 2013. See appendix for reconciliation. 1H 2013 Earnings Presentation 29#30EBITDA Operating Divisions (US $M) 177 (20) Drilling Services EBITDA 1 Bridge (78) (15) 20 (1) 84 1H-12 Price Volume/Mix Material/Labor Inflation SG&A FX 1H-13 Products EBITDA 1 Bridge 60 68 (1) (58) 12 (0) 22 1 1H-12 Price/Productivity Volume/Mix Material/Labor Inflation SG&A FX 1H-13 BOART LONGYEAR 1 Does not include restructuring and impairment charges 1H 2013 Earnings Presentation 30#31Reconciliation: Statutory to EBITDA (US $M) $ in Millions Revenue EBIT Cash from Operations² EBITDA NPAT Statutory 1H 2012 Restructuring Charges Adjusted Statutory Restructuring Adjusted 1H 2012 1H 2013 Charges 1H 2013 1,099 1,099 719 719 148 1 149 (307) 315 8 61 1 62 16 18 34 208 1 209 (235) 315 80 98 1 98 (329) 269 (60) 1 The income statement is presented on both a statutory and an adjusted basis. The adjusted measure excludes the impact of $315M ($269M net of tax) of restructuring and related impairment charges, of which $18M was paid in cash in 2013. 2 Before interest and tax payments BOART LONGYEAR 1H 2013 Earnings Presentation 31#32Inventory (US $M) 600 500 400 300 200 100 Inventory Balance 534 (40) Inventory Dec 2012 (57) (26) 411 Volume Impairment/ FX Driven Reduction Obsolescence BOART LONGYEAR Inventory Jun 2013 Peaked at $570M in October 2012 • Progress being made: ~$66M reduction through 1H 2013 • Additional $10M - $15M of non-cash expense expected in 2H 2013 related to this policy. 1H 2013 Earnings Presentation 32#33Income Statement Continuing operations Revenue Cost of goods sold Gross margin Other income General and administrative expenses Selling and marketing expenses Other expenses Operating (loss) profit Interest income Finance costs (Loss) Profit before taxation Income tax expense (Loss) Profit for the period attributable to equity holders of the parent (Loss) Earnings per share Basic (loss) earnings per share Diluted (loss) earnings per share Other comprehensive (loss) income Half-year ended 30 June 2013 US$'000 Half-year ended 30 June 2012 US$'000 718,863 (584,463) 134,400 1,098,795 (786,738) 312,057 327 440 (85,538) (122,762) (24,611) (31,958) (331,135) (9,729) (306,557) 148,048 924 (16,671) (322,304) 1,741 (14,039) 135,750 (7,090) (38,019) (329,394) 97,731 (72.5) cents 21.5 cents (72.5) cents 21.3 cents (Loss) profit for the period attributable to equity holders of the parent (329,394) 97,731 Exchange differences arising on translation of foreign operations Other comprehensive loss for the period, net of tax (83,070) (12,073) (83,070) (12,073) Total comprehensive (loss) income for the period attributable to equity holders of the parent (412,464) 85,658 BOART LONGYEAR 1H 2013 Earnings Presentation 33#34Balance Sheet 30 June 2013 US$'000 31 December 2012 US$'000 Current assets Cash and cash equivalents 34,181 89,628 Trade and other receivables Inventories 250,524 260,502 410,571 533,690 Current tax receivable 44,343 39,331 Prepaid expenses and other assets 27,171 42,021 766,790 965,172 Asset classified as held for sale 25,897 33,997 792,687 999,169 Total current assets Non-current assets Property, plant and equipment Goodwill Other intangible assets Deferred tax assets Other assets 505,083 628,691 104,356 290,786 103,595 128,158 217,079 192,352 10,798 11,582 Total non-current assets 940,911 1,251,569 Total assets 1,733,598 2,250,738 Current liabilities Trade and other payables 195,907 284,251 Provisions 27,677 36,271 Current tax payable 104,330 97,486 Loans and borrow ings. 175 189 Total current liabilities 328,089 418,197 Non-current liabilities Loans and borrowings Deferred tax liabilities Provisions. Total non-current liabilities Total liabilities Net assets Equity Issued capital Reserves Other equity Accumulated (loss) profit 597,779 601,733 6,262 84,126 7,757 87,634 688,167 697,124 1,016,256 717,342 1,115,321 1,135,417 1,128,043 (19,009) (137,182) 1,122,189 70,914 (137,182) (254,510) 717,342 79,496 1,135,417 BOART LONGYEAR Total equity 1H 2013 Earnings Presentation 34#35Cash Flow Statement (1 of 2) Cash flows from operating activities (Loss) Profit for the year Adjustments provided by operating activities: Income tax expense recognised in profit Finance costs recognised in profit Investment revenue recognised in profit (Gain) loss on disposal of non-current assets Impairment of current and non-current assets Depreciation and amortisation Foreign exchange loss (gain) on intercompany balances Share-based compensation Long-term compensation - cash rights Changes in net assets and liabilities, net of effects from acquisition and disposal of businesses: (Increase) Decrease in assets: Trade and other receivables Inventories Other assets (Decrease) Increase in liabilities: Trade and other payables Provisions Half-year ended 30 June 2013 US$'000 Half-year ended 30 June 2012 US$'000 (329,394) 97,731 7,090 38,019 16,671 14,039 (924) (1,741) (327) 270 299,400 205 71,467 59,658 3,593 (620) (999) 3,249 (16) 2,118 (4,760) (137,354) 39,568 (93,294) 14,370 (21,099) (90,430) 97,476 (9,108) 1,995 16,201 60,652 (16,089) 924 (24,945) 23,857 (13,591) 1,741 Cash generated from operations Interest paid Interest received Income taxes paid (29,780) Net cash flows (used in) provided by operating activities (28,744) BOART LONGYEAR 1H 2013 Earnings Presentation 35#36Cash Flow Statement (2 of 2) Half-year ended 30 June 2013 US$'000 Half-year ended 30 June 2012 US$'000 Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Intangible costs paid Net cash flow s used in investing activities Cash flows from financing activities Purchase shares for LTIP Proceeds from borrowings Repayment of borrowings Payments for debt issuance costs. Dividends paid Net cash flows (used in) provided by financing activities Net (decrease) increase in cash and cash equivalents (17,498) (114,322) 12,200 605 (4,403) (16,814) (9,701) (130,531) (9,039) 103,006 219,461 (106,056) (75,761) (1,473) (4,612) (25,825) (9,135) 108,836 (47,580) 2,162 Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on the balance of cash held in foreign currencies 89,628 82,286 (7,867) Cash and cash equivalents at the end of the period 34,181 (698) 83,750 BOART LONGYEAR 1H 2013 Earnings Presentation 36