ANNUAL REPORT 2022

DRIVING INNOVATION AND PERFORMANCE

MINCON CONTENTS

BUSINESS AND STRATEGY

Corporate Profile Chairman's Statement

Chief Executive Officer's Review Strategy of the Group - Business Model and Strategy Strategy of the Group -

2 6 10

14

Principal Risks and Uncertainties Chief Financial Officer's Review

16 20

GOVERNANCE

Board of Directors 32

Key Management 35

Directors' Report 36

Directors' Statement on Corporate Governance 42

Audit Committee Report 48

Nominations Committee Report 51

Remuneration Committee Report 54

Environment & Sustainability Report 57

Statement of Directors' Responsibilities 58

Corporate Responsibility 60

FINANCIAL STATEMENTS

Independent Auditor's Report 66

Consolidated Income Statement 75

Consolidated Statement of Comprehensive Income 76

Consolidated Statement of Financial Position 77

Consolidated Statement of Cash Flows 78

Consolidated Statement of Changes in Equity 79

Notes to the Consolidated Financial Statements 80

SEPARATE FINANCIAL STATEMENTS OF THE COMPANY

Company Statement of Financial Position 116

Company Statement of Changes in Equity 117

Notes to the Company Financial Statements 118

Mincon Group Plc ("the Company" or "the Group") is an Irish engineering Group with its shares trading on the AIM market of the London Stock Exchange and the Euronext Growth Market.

Directors:

Hugh McCullough - Non Executive Chairman (Irish)

John Doris - Senior Independent Non-Executive Director (Irish)

Pirita Mikkanen - Independent Non-Executive Director (Finnish)

Patrick Purcell - Non Executive Director (Irish)

Paul Lynch - Non Executive Director (Irish)

Joseph Purcell - Chief Executive Officer (Irish)

Thomas Purcell - (Regional Executive - Americas) (USA)

Company Secretary:

Barry Vaughan (Irish)

Registered Office:

Smithstown Industrial Estate, Shannon, Co. Clare, Ireland

Nominated Adviser, Euronext Growth

Adviser and Broker:

Davy, 49 Dawson Street, Dublin 2, Ireland

The Company specialises in the design, manufacture, sale and servicing of rock drilling tools and associated products. The Company's strategy is to increase its share of the global rock-drilling consumables market through organic growth and acquisitions. Its manufacturing facilities are located in Ireland, the UK, Finland, the USA, South Africa, Canada, Sweden and Australia. The Company also maintains a network of sales and distribution companies in a number of international markets to provide after sales support and service to customers.

Joint Broker:

Shore Capital, Cassini House, 57 St James's Street, London SW1A 1LD, United Kingdom

Legal advisers to the Company:

William Fry, 2 Grand Canal Square, Dublin 2, Ireland

Auditor:

Grant Thornton Chartered Accountants & Statutory Audit Firm, 13-18, City Quay Dublin Docklands, Dublin, Ireland

Registrar:

Computershare Investor Services (Ireland) Limited Heron House, Corrig Road, Sandyford Industrial Estate, Dublin 18, Ireland

Principal Bank:

Allied Irish Banks plc, Shannon, Co. Clare, Ireland

Company Website:

www.mincon.com

Ticker Symbols:

Euronext Growth: MIO.IR AIM: MCON.L

MINCON CORPORATE PROFILEMINCON GROUP FOUR GLOBAL REGIONS

Americas Region

Europe and Middle East Region Africa Region

Australia Pacific Region

These regions are being led by regional VPs - proven leaders with Mincon, each with a history of working effectively and collaborating within the Group.

EME EUROPE & MIDDLE EAST REGION

CHAIRMAN'S STATEMENT

I am pleased to present this report to our shareholders, reflecting on another year of growth and development. It has been a particularly turbulent period, reflecting the gradual emergence from Covid lockdowns, extraordinary increases in the cost of raw materials and energy, continuing supply chain disruptions, and negative commercial impacts arising from the war in Ukraine. I believe that the strength of Mincon's technical offering, together with the professional competence of our service team in the field, has allowed us to continue to grow in adverse circumstances.

Notwithstanding the difficult conditions, we increased our revenue by 18% to €170 million in 2022. Our EBITDA increased by 10% to €27.5 million and our profit after tax by 1% to €14.7 million. Whilst these results may be creditable in the context of the prevailing market conditions, we are conscious of the need to achieve a greater delivery to the bottom line in the form of improved earnings per share and return on capital employed, and we will concentrate on improving those metrics during 2023.

Despite the current global commercial and financial uncertainties, exceptional companies will continue to thrive and grow, and I believe that Mincon is one of those companies. The Mincon Group is established as The Driller's Choice because of our superior technical and innovative technology, coupled with our unsurpassed after sales service. We have experienced the difficulties arising from the major delays in sea freight schedules and the increased costs of freight. Some of the issues have abated somewhat, but material, energy and labour costs are still significantly higher than they were twelve months ago. Notwithstanding these headwinds, we have continued to grow our revenues and to expand our global footprint. In particular, our future expansion will be in our higher margin, technically innovative products, such as the Greenhammer system, large diameter piling solutions and our novel system for anchoring offshore wind turbines to the seabed. These are the products that will set us apart from our competitors.

Despite the difficult conditions prevailing in the global markets right now, we don't expect any significant changes in the mining sector. There will always be a need for the materials currently being mined, although the focus may change somewhat from time to time. Our drilling tools operate effectively and efficiently in virtually any mining environment and we will continue to provide the after sales service in the field that assists in the continuous improvement of our products.

One of the biggest areas of opportunity arising today is the development of technology to facilitate the switch from fossil fuels to sustainable energy sources. To avail of the opportunities presented by the transition we are currently working on the development of a patented anchoring system for offshore wind turbines. We are developing this system in conjunction with our partners in Subsea Micropiles Limited.

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Mincon Group plc published this content on 22 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2023 07:27:05 UTC.