1. DTH presentation
Patricio Lagarini

2. Agenda Market Overview Chilean Market Analysis Market Value
Territory Management
MS & CS
Market Strategy
Market Presentation

3. Chile Market Overview Business Development
Decreasing grades (More Tons to move….)
In 2002 the Cost of producing 1 lb of copper was 0.4 USD, with a selling price of 0.7 USD/lb.
Currently, the average cost is 1.95 USD/lb with a selling price of 3 USD/lb.
Still margins are good for Major Mining Groups. Last year average selling price was USD/lb, so margin was better than a decade ago
Productivity must increase and industry has been focused on producing more, because that is where higher profitability was.
Secondary enrichment and leaching material diminished (focus in primary ore)
Significant capital to sustain production levels or stay in business
Higher plant capacities
Fleet size
Infrastructure: energy, water
Increasing requirements to operate
Higher focus in H&S
Lack of skilled personnel: Eng & technicians by 2017
In Chile, since 2000 onwards the average salary of workers has increased 82% while productivity only improved 36%.
Labor cost in Chile increased 53% from 2007 to date, while in AUS, US, Canada has increased 27%.
Business Development

4. Chile Drilling Tools Chilean Market Annual Sales : Musd 80
Product Mix : Top Hammer 27%
Pp : DTH 16%
E : Raise Boring 1%
O : Rotary 56%
Total DTH & Rotary market: Musd 58
(*) RC is not included
Business Development

5. Chile
DTH Market Share
Business Development

6. Chile
Rotary Market Share
Business Development

7. TERRITORY MANAGEMENT
Business Development

8. Potential Market by Region
I Region
Market Potential :MUSD 5,2
Product Mix : DTH = 4%
Rotary = 96%
Region Weight : 10%
Business Development

9. Potential Market by Region
Key Customers
Collahuasi
NIS MUSD 3,3
Customer Share 0%
Cerro Colorado
NIS MUSD 1,2
Quebrada Blanca
NIS MUSD 0,3
Salinas Punta de Lobos
NIS MUSD 0,4
Business Development

10. Potential Market by Region
II Region Antofagasta
Market Potential : MUSD 11
Product Mix : DTH = 22%
Rotary = 78%
Branch Weight : 17%
Business Development

11. Potential Market by Region
Key Customers
Escondida
NIS MUSD 4,9
Customer Share 0 %
Lomas Bayas
NIS MUSD 1
Mantos Blancos
NIS MUSD 0,32
Customer Share 100 %
Michilla
NIS MUSD 0,15
Zaldivar
NIS MUSD 0,7
Mantos de la Luna
NIS MUSD 0,96
Business Development

12. Potential Market by Region
II Region Calama
Market Potential : MUSD 13
Product Mix : DTH = 20%
Rotary = 80%
Branch Weight : 21%
Business Development

13. Potential Market by Region
Key Customers
Codelco Chuquicamata
NIS MUSD 2,4
Customer Share 0 %
Codelco Radomiro Tomic
NIS MUSD 1,97
Codelco Mina Sur
NIS MUSD 0,25
El Abra
NIS MUSD 1,7
El Tesoro
NIS MUSD 0,45
Spence
NIS MUSD 1
Jaime Navarrete
NIS MUSD 0,15
Business Development

14. Potential Market by Region
III Region
Market Potential : MUSD 10,2
Product Mix : DTH = 22%
Rotary = 78%
Branch weight : 16%
Business Development

15. Potential Market by Region
Key Customers
Candelaria
NIS MUSD 2
Customer Share 0 %
Codelco Salvador
NIS MUSD 1,3
Customer Share 0 %
Rocmin Candelaria
NIS MUSD 0,24
Maricunga
NIS MUSD 0,7
Mantos de Oro
NIS MUSD 0,4
Manto Verde
NIS MUSD 1
Business Development

16. Potential Market by Region
Branch Serena
Market Potential : MUSD 7,3
Product Mix : DTH = 31%
Rotary = 69%
Branch Weight : 12%
Business Development

17. Potential Market by Region
Key Customers
Carmen de Andacollo
NIS MUSD 0,4
Customer Share 0 %
Los Pelambres
NIS MUSD 1,7
Customer Share 80 %
Pascua Lama
Customer Share 0 %
Los Colorados
NIS MUSD 1,16
Perfochile
NIS MUSD 0,9
Customer Share 0%
Business Development

18. Potential Market by Region
Branch Quinta Región
Market Potential : MUSD 6,4
Product Mix: DTH = 47%
Rotary = 53%
Branch Weight : 10%
Business Dvelopment

19. Potential Market by Region
Key Customers
El Soldado
NIS MUSD 2,4
Customer Share 0 %
Codelco Andina
NIS MUSD 1
Customer Share %
Codelco El Teniente
NIS MUSD 0,13
Major Drilling
NIS MUSD 1,7
Business Dvelopment

20. Potential Market by Region
Branch Santiago
Market Potential : MUSD 5,7
Product Mix : DTH = 17%
Rotary = 83%
Branch Weight : 9%
Business Development

21. Potential Market by Region
Key Customers
Los Bronces
NIS MUSD 2,2
Customer Share 0 %
ICV
NIS MUSD 1
Tricomin Los Bronces
NIS MUSD 0,36
Customer Share 100 %
Epsa
NIS MUSD 0,4
Contractors
NIS MUSD 1,7
Customer Share 0 %
Business Development

22. Market Strategy
Big Investment on new sales organization and facilities to increase the market coverage.
Customer Oriented
Focus on Market and Customer Share
Establish long term relationship through “Consignment Stock” or different kind of agreements.
Identify opportunities
Mining: Pre-Splitting, Sampling, etc
Quarries: Cement, Aggregates, etc
New projects…
Focus on applications where our product portfolio can be applied
Select Key Customers to become them as an active reference in the market
Organize tests in order to prove the benefits of our products
Business Development

23. INNOVATING FOR PERFORMANCE