For personal use only

Boart Longyear 2014

CEO Presentation
For personal use only Important 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.

2014 Boart Longyear AGM 2

For personal use only Who we are…

 Legacy of over 120 years

of drilling expertise

 Leading provider of
drilling services, drilling
equipment, and
performance tooling

 Industry leading product

innovation

 Drilling Services offered

in over 35 countries

 Drilling Products offered

in over 100 countries

2014 Boart Longyear AGM 3

 Safety & Environment
Our goal is adding value with zero harm – leading our industry by returning our employees home safely each
day and performing our work with minimal impact to our neighbors or the environment.
For personal use only

Total Case Incident Rate Lost Time Incident Rate

3.26 0.34

2.23 2.33
2.15
1.78 0.19
1.56 1.62
0.14 0.13
0.12
0.10
0.75 0.08
0.06

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 YTD Apr FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 YTD Apr
2014 2014

• Safety Performance
Tragic loss of Andy Buttram: one of our own. Involved in a motor
vehicle accident while driving in hazardous conditions
• Make it Personal
Program roll out features each employee’s family as a reminder of
what is important – Getting home safely!
• THINK
Field level risk assessment applied for all new tasks and any time
things change.
• Sustainability
Minimising impacts to air quality, implementing steps to conserve
energy and water, and reducing waste generation and the use of
hazardous material.
2014 Boart Longyear AGM 4
For personal use only 2013 was a challenging year…

Mining Performance Key Commodity Trends

SNL MEG Gold ($/oz.)
- Exploration Spend (US$ Billions) 1,750 2012 Avg
21.5
1,500 2013 Avg
18.2
1,250
15.2
14.4
12.1 to 13.7
12.1 1,000
11.4
Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13
8.4
Copper ($/lb.)
4.00
3.75 2012 Avg
3.50
2013 Avg
2007 2008 2009 2010 2011 2012 2013 2014(F) 3.25
Source: SNL Metals Economics Group
3.00
Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13
BLY Performance
- Historical Revenue Trends (US$ Millions) Iron Ore ($/MT)
2,020 2,012 160
1,839
1,579 1,476 150 2013 Avg
1,223 140
978 130
120 2012 Avg
110
Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13
2007 2008 2009 2010 2011 2012 2013 Source: Bloomberg & BLY Analysis

2014 Boart Longyear AGM 5

 …which resulted in 2013 key operating
metrics reaching trough levels
For personal use only

Drilling Services’ Historical Operating Rig Percentage

70%
 In late 2013, operating rig utilisation
60% fell below the low point experienced
in April 2009
50%
 A surplus of global rig capacity is
40% 2009 Low % Operating Rigs leading to a very competitive
environment
30%

20%

Drilling Products’ Historical Order Backlog (Indexed to Jan-09)

350%
 Declining global utilisation rates
300%
resulting in reduced demand for
250% products
200%
150%  Inventory in place to fill existing
100% customer demand
2009 Low Backlog
50%
0%

2014 Boart Longyear AGM 6

For personal use only FY 2013 Financial Performance

(US $M)

Year over Year Monthly Revenue Year over Year Financial Trends
$2,012
Monthly Revenue Index

39%

$1,223
3%
32%
58% $512 $526

$254 $298
$202
$107

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1
Revenue Adj. EBITDA SG&A Net Debt
2012 2013 FY 2012 FY 2013

Despite challenging operating conditions, net debt held nearly flat

1 See Footnote 1 of page 4 for definition of adjusted EBITDA

2014 Boart Longyear AGM 7

 Material reductions in the overall cost
structure
(US $M)
For personal use only

Total expenditure reduction of $890 million

13
To be realised
Realised in 2013
$(460)
in 2014
$188
$2,081
$160
$(232)
$(55) $(60) $1,274 $(30) $(28) $(25) $1,191
Realised over $800m of expenditure reductions in FY2013

FY 2012 Variable Cost Capex Dec 2012 Aug 2013 FY 2013 Aug 2013 Jan 2014 2014 Capex FY 2013
Expenditure Initiative 2 Initiative Expenditure Initiative Initiative Plan Pro Forma
Profile 1 Profile1 Expenditure
Profile 1

The Jan 2014 initiative includes:

 Wage freezes and the suspension of profit sharing in certain jurisdictions
 Bonus plan aligned to the company’s ability to generate cash
 Ongoing consolidation of corporate and regional functions and facilities

Ongoing cost action in response to prevailing market conditions

1 Expenditure profile defined as operating costs plus capital expenditures
2 Realised an additional $15M of savings in FY2012

2014 Boart Longyear AGM 8

 Recent actions taken to create a lean and
scalable cost model
For personal use only

The Business Then…June 30, 2012 The Business Now…Dec 31, 2013
 25 Vice Presidents  13 Vice Presidents
Executive Management  Regional Management Structure  Global Structure
 4 Regional VP’s  Elimination of 3 Regional VP’s

 Disaggregated Supply Chains  Consolidated Supply Chain

 Supply Chain functions existed in both Drilling  Centralised planning, warehousing and
Services & Drilling Products procurement
Supply Chain  Separate inventory for each division  Shared inventory for both divisions
 57 rooftops  35 Targeted Rooftops
 16 Closed
 8 Pending Closure

DS Organisational  23 Zones with their own support structure  Consolidated the 23 Zones into 10
Structure Territories
 None  2 Targeted Shared Service Centers
Shared Services  Back office support and transactions occurring at  Poland – Functioning
4 regional offices  Future location – Pending (late 2014)

Products Aftermarket &  Distinct shops for both divisions even if operating in  Centralised maintenance function
DS Fleet close proximity  Expanded aftermarket footprint due to DS
locations

SG&A Run Rate  $ 315 million  ~$ 165 million

Then… June 30, 2012 Now… Dec 31, 2013

Headcount  COGS Labor 8,162  COGS Labor 3,842
 Overhead 1,611  Overhead 907
 SG&A 1,790  SG&A 932
 Total 11,563  Total 5,681
2014 Boart Longyear AGM 9
For personal use only YTD 2014 Business Highlights

Drought relief services

Energy & Ramping up at new site

geothermal drilling

Recent contract renewals

Recent contract win

New gold mining contract

Recent contract win
Sonic drilling program
Ramping up at new site
New production
tooling contract

2014 Boart Longyear AGM 10

 Pioneering innovation & new product
development…
For personal use only

Launched in 2H 2013 Launched in 1H 2014

M3 Rock Drill LM110 Rig DTH Hammers

To be launched in 2H 2014

Mini Sonic Rig LF90D Rod LF350 Deep New Instrumentation Category
Presenter Hole Rig
11
2014 Boart Longyear AGM
For personal use only 2014 Business Outlook

Forecasting & Guidance:

 The volatility and cyclicality of the industry make forecasting very challenging
 The Company will not provide Revenue and EBITDA guidance
 The Company will provide quarterly metrics & KPI’s, similar to what was provided for
Q1 2014 on May 8, 2014.

Current Industry Conditions:

 Mineral exploration and mining capital expenditures may remain at current levels and
could compress even further in 2014
 Excess global rig capacity could put further downward pressure on price in the Drilling
Services business while we expect pricing to remain flat to slightly down in the
Products business
 Mining companies continue to deplete their existing reserve bases and will need to
eventually replenish their reserves which should trigger a future recovery in mineral
exploration spend

The Company is not providing Revenue & EBITDA guidance

2014 Boart Longyear AGM 12

For personal use only Key Performance Indicators

Fourth
First Quarter
Quarter
2014 2013 2012 2013

Avg. Rig Count ~950 ~1,045 ~980 ~1,030

Avg. Operating Rig Utilisation ~30% ~40% ~60% ~30%

Avg. Product Backlog ~$15M ~$43M ~$80M ~$20M

Headcount ~5,600 ~8,300 ~11,100 ~5,700

Net Debt(1) $544M $571M $328M $526M

Compliance Debt(2) $640M N/A N/A N/A

Compliance EBITDA(3) $97M N/A N/A $138M

Note: Figures shown above are at period ends unless otherwise noted
Positive Weaknesses
• Underground and large rotary businesses • Mineral exploration levels still low relative
remain stable to recent historic levels
• Targeted R&D investment continues • Global rig utilisation at historic lows
• Ability to fulfill customer orders with existing
stock

Focus on safety, customer satisfaction, cost reduction, and deleveraging

1 Excludes contingent liabilities relevant to determining bank covenant compliance under maximum total indebtedness covenant. See footnote 31 in the 2013 Annual Report
2 Gross maximum indebtedness covenant, inclusive of relevant contingent liabilities used in determining bank covenant compliance. See footnote 31 in the 2013 Annual Report
3 For the trailing 12 month periods, quarterly bank compliance EBITDA was: 1Q2014 - $2.5M, 4Q2013 - $5.3M, 3Q2013 - $39.0M, 2Q2013 - $50.1M, 1Q2013 - $43.1M

2014 Boart Longyear AGM 13

For personal use only Boart Longyear’s 2014 Business Objectives

Safety First

Empower Focus on
Increase Customers
People Margin

De-Lever
Balance
Sheet
Reduce Generate
Cost Cash

Improve Create
Liquidity Efficiencies

2014 Boart Longyear AGM 14