SOLVING MINING S TOUGHEST CHALLENGES THROUGH WORLD-CLASS PRODUCTS & DIRECT SERVICE SM Every customer is a reference SM
Joy Global Who We Are The leading supplier of advanced equipment, systems and direct services for the global mining industry. Vision To be a world-class service company delivering the most reliable and productive products, systems and solutions that solve mining s toughest challenges Mission To partner directly with customers to enable them to achieve zero harm, the highest production and the lowest lifecycle cost for their mining operations, while making every customer a reference Values Integrity Respect Diversity Teamwork Reliability Performance World-class People Service Uncompromising Quality Operating Beliefs Socially & Environmentally Responsible Products Financials Processes SM Zero Harm Mentality Maximizing Operating Leverage Focus on Customers Leading Innovation
Our Story Fiscal 2014 was another year of strong execution by our company in the most challenging mining market in over a decade. We faced these challenges and were able to deliver on our financial commitments to our shareholders and our service commitments to our customers. Our JBS Operational Excellence initiatives have allowed us to streamline processes and exceed our cost savings targets in 2014. The strong operational performance enabled us to continue our strong cash generation in a down cycle. We used this cash to repurchase 4.7 million shares, invest internally in new products and services, and increase our dividend for the first time in five years. We also acquired Mining Technologies International (MTI), a Canadian company specializing in underground hard rock mining machinery. This new addition to our product portfolio represents the next step in our growth strategy of expanding into the nickel, palladium, platinum, gold, and copper markets, among others. In 2014, we anticipated difficult global economic and market Ted Doheny, President and CEO conditions as years of mining investment led to supplydemand imbalances and declining commodity prices. In response, we continued to focus on lowering our cost base through operational efficiencies while still investing in our people, products and processes as we drive to worldclass performance that will create a stronger future for our company. We have and will continue to carefully manage our balance sheet in this challenging market while still providing world-class service levels to our customers. In 2015, we will once again be tasked with solving mining s toughest challenges in a difficult market. As we strive for continual improvement, social and environmental responsibility will remain at the core of who we are. Our people are passionate about delivering world-class service and products with the goal of making every customer a reference. Providing world-class products and processes, delivered through our direct service network, will continue to drive profitable growth.
Direct Service Leader Every Customer is a Reference At the core of our commitment to our customers is providing world-class service through our direct service network. This allows us to collaborate with our customers to develop innovative product systems that lower their total cost of ownership while safely maximizing production. Our goal is to make every customer a reference by providing them with world-class equipment enabled with JoySmart SM Services. SM Consistent global world-class components, processes, methods and metrics throughout the global network with the ability to rapidly customize locally 2
JoySmart SM S e r v i c e s Smartly Connected Mines Joy Global products and people are becoming more smartly connected at the mine site and across the globe. JoySmart SM Service Centers use advanced technology and prognostics to anticipate service needs, optimize machine productivity and improve mine performance. During the year, we continued to invest in our global network of service centers opening new and expanded facilities in Australia and Chile, with additional facilities in Russia and Peru set to open in 2015. Performance Life Cycle Management Prognostics & Health Management Life Cycle Management JBS Operational Excellence Products/Process/People Flawless from the Start JoySmart SM Services Hunter Valley Service Center, Australia 3
JBS Operational Excellence Taking us to the Next Level Delivering world-class service and striving to make every customer a reference is built upon world-class processes and metrics. In 2014, we continued to expand our Joy Global Eliminate Waste Simplify the Process SM Business Systems (JBS) to create competitive advantage throughout the company by implementing programs beyond our factories and service facilities to all company functions. We are on a continuous journey to move the needle and drive our performance to world-class levels in safety, velocity, productivity, quality and customer references. Automate We are also taking our JBS Operational Excellence SM Remove People from Harm's Way SM processes and principles to the mines to help our customers eliminate waste, simplify their processes, drive to automation and remove people from harm s way. Zero harm remains one of Joy Global s core operating beliefs. As we help customers remove people from harm s way, it is imperative that we lead by example within our facilities throughout the world. Superior Products Smart Products Monitor Alert Respond Analyze 4
Creating Growth Innovations That Move the Needle Despite a challenging near-term market, the longer-term fundamentals of mining remain strong. As depleting reserves, lower ore grades and difficult mining conditions persist, mining companies will increasingly recognize that only the Reduce Cost best products and systems will be capable of helping them efficiently produce the metals, minerals and energy that our world needs. Our company has always been on the leading edge of innovation and, with the strategic investments made over the last several years, we will remain the industry leader working with our customers to solve their toughest challenges. Increase Production Achieve Zero Harm Providing smart, innovative products and systems that enable significant cost savings and remove people from harm s way will allow us to move the needle in mining productivity. Our fully automated low-seam longwall, new heavy continuous miner linked with our exclusive flexible conveyor train, new hybrid wheel loader for underground hard rock applications and our new hybrid shovel are all examples of innovative solutions to reduce cost, increase production and achieve zero harm. We have also identified a growth opportunity in consumables that will help us better serve our customers. Joy rock cutting technologies, filters, fluids, hoses and drums are only a few of the many products that we will be targeting as we continuously look to provide our customers with critical products and services that improve their mine performance. Smartly Connected Diverse Experts World-class Performance Lowest Cost Per Ton Data Information Direction Results 5
Expanding Opportunities High Growth Markets & Other Minerals In 2015, we will continue to implement our domestic China strategy to deliver customized full-systems solutions in a market that is rapidly consolidating and seeking to move lower on the global cost curve. Investing in our domestic China product systems and capabilities will also allow us to provide a full range Baotou, China Novokuznetsk, Russia La Joya, Peru of mining solutions for our customers globally. The continued expansion in emerging market economies requires that we continually optimize our global manufacturing and distribution footprint. Being able to rapidly customize locally to our customers needs will help us continue to develop references around the world. La Negra, Chile The acquisition of MTI s hard rock mining machinery is an important milestone in executing our strategy of expanding into non-coal markets. Bringing these products to market under the Joy TM brand, will both broaden our core customer base and better serve existing customers in hard rock mining. Hunter Valley, Australia 6
Delivering Profitable Growth Long-term Shareholder Value Despite challenging market conditions in 2014, we delivered the operational results that our customers and shareholders have come to expect by: Diamonds Oil Sands Gold Trona Phosphates Bringing world-class products and direct service to our customers Driving JBS Operational Excellence SM, both throughout our organization and to the mines Creating growth through innovative products and services, including consumables Nickel Coal Palladium Expanding in underground hard rock Expanding in high growth markets Gypsum In 2015, we will create long-term shareholder value by building upon these strategies. While the past year has been challenging, it has also created opportunities that will allow Joy Global to continue to solve mining s toughest challenges and to grow faster than the markets we serve. Platinum Potash Salt Iron Ore Copper Ted Doheny President and Chief Executive Officer Joy Global Inc. 7
Corporate Information Fast Facts Global Headquarters in Milwaukee, WI USA 15,400 Employees Worldwide $3.8 Billion Annual Sales (2014) NYSE: JOY 130 Locations 20 Countries www.joyglobal.com Every customer is a reference SM Commodities We Serve Global Leader in: (2014 Revenue) Life Cycle Management Geographies We Service Potash Gold Others Consumables Eurasia Oil Sands Iron Ore Equipment Australasia Americas North Copper China Coal Africa Tunneling Service Latin America SM
JOY GLOBAL INC. 100 EAST WISCONSIN AVENUE SUITE 2780 MILWAUKEE, WI 53202 Joy Global, Joy, P&H, JBS Operational Excellence, JoySmart, Every customer is a reference, Solving Mining's Toughest Challenges through World-class Products & Direct Service and related logos are trademarks of Joy Global Inc. or one of its affiliates. 2015 Joy Global Inc. or one of its affiliates. All rights reserved.