Imdex Ltd · ASX:IMD
Imdex — Shareholder Meeting (October 2021)
53 slides from Imdex's shareholder meeting presentation, Oct 7, 2021
Slide 1: 2021 Annual General Meeting Chairman and CEO's Presentations
7 October 2021 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam 2021 ANNUAL GENERAL MEETING CHAIRMAN AND CEO’S PRESENTATIONS Please find attached a copy of the Chairman and CEO’s presentations to be given at the 2021 Annual General Meeting of I
Slide 2: 2021 AGM Chairman's Address
2021 AGM Chairman’s Address 2021 ANNUAL GENERAL MEETING, 7 OCTOBER 2021 Welcome Good morning ladies and gentlemen – thank you for joining us today and welcome to IMDEX’s Annual General Meeting for the 2021 financial year. I advise that in accordance with the Company’s Constitution a quorum is presen
Slide 3: Financial highlights of FY21
Moving now to the financial highlights of FY21: • The Company achieved record revenue of $264.4m, which was up 11.2% on FY20, or up 18% on a constant currency basis; • EBITDA of $75.5m was up 38.8% on FY20, or 50% on a constant currency basis; • The strength of the Company’s balance sheet was mainta
Slide 4: Strong corporate governance and enhancing ESG disclosure
• Strong corporate governance and enhancing IMDEX’s ESG disclosure; and • Disciplined cost management while execeuting its growth strategy and achieving its performance milestones. Ladies and gentlemen, I would now like to review the Financial Statements and Reports followed by the consideration of
Slide 5: IMDEX Annual General Meeting 2021 Financial Year
IMDEX Annual General Meeting 2021 Financial Year 7 OCT 2021 ANTHONY WOOLES – CHAIRMAN PAUL HOUSE – CEO CONFIDENTIAL PROPERTY OF © IMDEX LIMITED
Slide 6: Forward Looking Statements
FORWARD LOOKING STATEMENTS THIS PRESENTATION MAY CONTAIN CERTAIN ‘FORWARD-LOOKING STATEMENTS’ AND PROJECTIONS PROVIDED BY OR ON BEHALF OF IMDEX LIMITED (IMDEX). FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF FORWARD LOOKING WORDS SUCH AS, ‘EXPECT’, ‘ANTICIPATE’, ‘LIKELY’, ‘INTE
Slide 7: Welcome — Introducing Our Board of Directors
Welcome — Introducing Our Board of Directors COMMITTED TO DRIVING SUSTAINABLE GROWTH Ms Sally-Anne Layman Mr Kevin Dundo Mr Anthony Wooles Mr Ivan Gustavino Ms Trace Arlaud Non-Executive Director Non-Executive Director Non-Executive Chairman Non-Executive Director Non-Executive Director Appointed Fe
Slide 8: Chairman's Address Anthony Wooles
CHAIRMAN'S ADDRESS ANTHONY WOOLES
Slide 9: FY21 AGM Agenda
FY21 AGM AGENDA CHAIRMAN’S RESOLUTIONS POLLING CEO CLOSE OF ADDRESS & VOTING ADDRESS ANNUAL GENERAL MEETING REFRESHMENTS
Slide 10: FY21 Financial Highlights
11% 39% 45% FY21 FINANCIAL HIGHLIGHTS REVENUE EBITDA NPAT Up 18% on a constant currency basis Up 50% on a constant currency basis Tax rate 30.9% Strong demand in all regions Gross margins maintained Effective tax rate 28.9% Revenue near to or exceeding Strong fixed cost leverage (FY21 $31.7m v FY20
Slide 11: FY21 Operational Highlights
FY21 OPERATIONAL HIGHLIGHTS 53% LTIFR 52% RECORD SENSORS 30% IMDEXHUB™ +3 NEW JDAs ON RENT CONNECTED REVENUE A strong focus on employee Sensors on rent up 35% Delivering greater value Recommenced client trials wellbeing, diversity and on pre-COVID-19 peak for clients with IMDEX BLASTDOG™ workplace f
Slide 12: FY22 Board Priorities
FY22 BOARD PRIORITIES SAFETY PERFORMANCE UNDERLYING BUSINESS PERFORMANCE AND GROWTH DISCIPLINED COST MANAGEMENT GOVERNANCE AND ENHANCING ESG DISCLOSURE RIGOROUS STRATEGY DEVELOPMENT, EXECUTION AND ACHIEVING PERFORMANCE MILESTONES
Slide 13: Resolutions & Voting
RESOLUTIONS & VOTING
Slide 14: Adjournment of Annual General Meeting for Polling
ADJOURNMENT OF ANNUAL GENERAL MEETING FOR POLLING
Slide 15: CEO Address Paul House
CEO ADDRESS Lu ” => fo) <= —_l = <= a.
Slide 16: IMDEX is a leading global Mining-Tech company
IMDEX IS A LEADING GLOBAL MINING-TECH COMPANY. WE ENABLE CLIENTS TO FIND, DEFINE AND MINE OREBODIES WITH PRECISION AND AT SPEED.
Slide 17: A Mining-Tech Company
A MINING-TECH COMPANY TECHNICAL LEADERSHIP TRULY GLOBAL DEVELOPING INTEGRATED SOLUTIONS CONSISTENT CAPITAL LIGHT BUILDING A HIGH- INVESTMENT IN PEOPLE LIGHT QUALITY REVENUE R&D TO DESIGN BASE WITH INCREASING PATENTED EBITDA MARGINS TECHNOLOGIES LIMITED CONTRACT RISK LIMITED COMMODITY RISK LIMITED GE
Slide 18: Our Integrated Solutions
Our Integrated Solutions • Drilling Fluids Our Drilling Optimisation suite • Solids Removal Units Drilling of products enhance drilling • Remote Fluid Testing SALES AND Optimisation productivity while improving Technologies RENTAL Products safety and reducing the • Rig Alignment Technologies REVENUE
Slide 19: Why Real-time Rock Knowledge is Important
Why Real-time Rock Knowledge is Important Rock knowledge is an We enable the timely delivery MANY $BN MINING understanding of location, of quality data, giving clarity INVESTMENT DECISIONS ARE texture, grade and mineralogy. on the nature of the rock to MADE HAVING SAMPLED ONLY It answers the questio
Slide 20: A Stronger Revenue Profile
A Stronger Revenue Profile SENSORS & SOFTWARE PRODUCTION EXPOSURE AMERICAS BROAD COMMODITY EXPOSURE 10 % 10 % 7% 20 % 27 % 25 % 8% 15 % 44 % 57 % 35 % 31 % 30 % 34 % 90 % 80 % 56 % 50 % 43 % 44 % 45 % 39 % FY17 FY21 FY17 FY21 FY17 FY21 FY17 FY21 SALES EXPLORATION & DEVELOPMENT AMERICAS EUROPE/ GOLD
Slide 21: FY21 Financial Summary
FY21 Financial Summary REVENUE EBITDA EBITDA MARGIN % 13% 5 YEAR CAGR (Comparable S&P CAGR 8.3%**) 23.5%++ 5 YEAR CAGR 264.4 75.5*^ 243.7 237.7 28.5 218.5 52.3+ 54.4* 48.0+ 23.9++ 176.2 ++ 22.9 42.4+ 22.2 21.3++ 31.5+ AFRICA/ EUROPE AMERICAS ASIA PAC FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Slide 22: Strong Core Business in All Market Conditions
Strong Core Business in All Market Conditions A STRONG OUTPERFORMING ABILITY TO ESTABLISHED FINANCIAL INDUSTRY ACCELERATE GLOBAL CLIENT PLATFORM GROWTH ORGANIC GROWTH NETWORK MARKET WORLD-CLASS R&D EXPERIENCED OPPORTUNITIES LEADING AND GEOSCIENCE AND DIVERSE TO ENHANCE TECHNOLOGIES CAPABILITIES LEAD
Slide 23: Growth Opportunities
GROWTH OPPORTUNITIES
Slide 24: Four Compelling Growth Drivers
Four Compelling Growth Drivers 1 TECHNOLOGY LEADERSHIP Targeted R&D to win market share 2 EXTENSION INTO MINING PRODUCTION NEW PRODUCTS, NEW PRODUCTS, NEW SENSORS AND SENSORS AND Leverage into adjacent market where it is SOFTWARE SOFTWARE PRODUCTS / TECHNOLOGIES the same ore body and the same client
Slide 25: DataCloud Technology Acquisition - Overview
DataCloud Technology Acquisition - Overview ACQUISITION OVERVIEW MINEPORTAL • Asset purchase agreement to acquire the • A new-generation native cloud application that MinePortal software from Californian- enables geological data modelling and real-time based DataCloud International announced 8 3D vi
Slide 26: DataCloud Technology Acquisition – Strategic Fit
DataCloud Technology Acquisition – Strategic Fit TECHNOLOGY LEADERSHIP Targeted R&D to win market share EXTENSION INTO MINING PRODUCTION NEW PRODUCTS, NEW PRODUCTS, NEW SENSORS AND SENSORS AND Leverage into adjacent market where it is SOFTWARE SOFTWARE PRODUCTS / TECHNOLOGIES the same ore body and t
Slide 27: MinePortal Orebody Knowledge Ecosystem
MinePortal Orebody Knowledge Ecosystem FROM THE KEY MINEPORTAL MINE SITE ABILITIES CUSTOMER GEO + GEOLOGIC MODEL OPERATIONS DATA Geomet data and grade OPERATIONAL BLASTING Data Advanced control, geo models, RC Integration Analytics + ORE LOSS / DILUTION data, core and Reporting downstream 3D-Data MA
Slide 28: Sample MinePortal Models
Sample MinePortal Models HIGH SPATIAL FIDELITY IN THE CLOUD MWD* VISUALISATION IN MINEPORTAL MWD* VISUALISATION IN MINEPORTAL OVERLAID WITH AUTO BUILT BLOCK-MODEL * Measure While Drilling (MWD)
Slide 29: Accelerating IMDEX BLASTDOG
Accelerating IMDEX BLASTDOG™ IOG ANALYTICS & 3D OPTIMISED DRILLING MEASUREMENT VISUALISATION BLASTING DOWNSTREAM Safer autonomous operations IMDEX BHS™ IMDEX BLASTDOG™ IMDEXHUB-IQ™ Use the Rock Mitigate risk and negative Enhance productivity for Drill once, stabilising Holes are logged & MINEPORTAL
Slide 30: Industry & Market Update
INDUSTRY & MARKET UPDATE
Slide 31: Our Market and the Impact of COVID-19
Our Market and the Impact of COVID-19 EVOLUTION OF COVID-19 GOVERNMENT MANDATED RESTRICTIONS ON IMDEX MINING REGIONS KEY OPPORTUNITIES Asia Pacific 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 • Acceleration of positive industry Australia - WA structural change Australia - QLD New Zealand • New efficient ways of w
Slide 32: Strong Industry Fundamentals
Strong Industry Fundamentals • Clients are embracing innovation and new digital ways of PROJECT DRILLING ACTIVITY BY COMMODITY working JULY 2019- AUGUST 2021 • Strong commodity prices driven by the positive outlook for a global recovery and increasing demand due to diminishing reserves • Iron ore pr
Slide 33: Short-term Industry Constraints
Short-term Industry Constraints • Rig utilisation in key markets is The financial health of the exploration sector continues to grow from strength to strength, especially now that healthy at near-capacity cash positions have translated to money being invested in • Delivery times for new rigs the gro
Slide 34: FY22 Focus Areas and Outlook
FY22 FOCUS AREAS AND OUTLOOK
Slide 35: An Encouraging Start to FY22
An Encouraging Start to FY22 1Q22 REVENUE 41% 13% 86.8 ON 1Q21 ON 4Q21 42% at Constant Currency 9% at Constant Currency 67.3 67.6 61.4 STRONG INDUSTRY FUNDAMENTALS TEMPERED BY 54.6 61.1* SHORT-TERM CONSTRAINTS RECORD QUARTERLY REVENUE INCREASED INVESTMENT IN R&D DEVELOPMENT AND INTEGRATION OF MINEPO
Slide 36: FY22 Key Focus Areas and Operational Initiatives
FY22 Key Focus Areas and Operational Initiatives PROTECTING OUR JDAs* TO JOINTLY ENGAGE INCREASED R&D FOR CONNECTED PEOPLE RESOURCE COMPANIES SENSORS AND SOFTWARE AND DRILLING CLIENTS SOLUTIONS TO ACCELERATE GROWTH AND BUILD SCALE ENSURING CONTINUITY KEY ACCOUNT MANAGEMENT DIGITAL TRANSFORMATION 2.0
Slide 37: Positive Outlook
Positive Outlook THE LONG-TERM WE REMAIN WATCHFUL WE ARE POSITIONED CLIENTS ARE WELL OUTLOOK FOR MINING- AND READY TO TO BENEFIT FROM FUNDED AND FOCUSED TECH IS STRONG RESPOND TO RISKS INCREASING DEMAND ON SUSTAINING AND AND OPPORTUNITIES FOR REAL-TIME INCREASING ACTIVITY PRESENTED BY COVID-19 ORE B
Slide 38: My Sincere Thanks to a Great Team
My Sincere Thanks to a Great Team FY21 was truly challenging, and ultimately a rewarding year... This would not be so, if it were not for the multitude of talented people around me. Their innovation, commitment, Paul Evans Shaun Southwell Mathew Regan Michelle Carey and intricate knowledge of CFO &
Slide 39: Thank you
Thank you We believe mining IMDEX has a strong core business that consistently outperforms industry growth. is essential to every Our investment in R&D ensures we have the best suite of products to maintain technical leadership and increase market share. aspect of modern life. Our global presence is
Slide 40: Resolution Voting Results
Resolution Voting Results IMDE/
Slide 41: Exploration & Development / Mining Production
EXPLORATION & DEVELOPMENT MINING PRODUCTION DRILLING OPTIMISATION PRODUCTS ROCK KNOWLEDGE SENSORS REAL-TIME DATA & ANALYTICS Classification | Highly Restricted
Slide 42: Appendices
APPENDICES IMDEX
Slide 43: Key Metrics
Key Metrics $m (unless indicated otherwise) FY21 FY20 VAR% REVENUE Revenue 264.4 237.7 11.2 127.7 140.1 125.0 124.3 118.7 EBITDA1 75.5 54.4 38.8 110.0 EBITDA1 Margin % 28.5 22.9 24.5 NPBT 44.5 29.1 52.9 NPAT 31.7 21.8 45.5 EPS (cents) 8.01 5.64 42.0 1H19 2H19 1H20 2H20 1H21 2H21 Operating Cash Flow
Slide 44: FY21 Strong Cash Generation
FY21 Strong Cash Generation EBITDA 75% RECONCILIATION 75.5^ (8.8) (1.4) (7.1) CONVERSION RATE (1.3) 56.9 CASHFLOW CONVERSION CONTINUED TO BE STRONG AND RETURNED TO PRE-COVID LEVELS WORKING CAPITAL INVESTMENT RATIO RETURNED TO HISTORICAL LEVELS AT 33 CENTS FOR EVERY DOLLAR OF INCREMENTAL REVENUE EBIT
Slide 45: Commitment to R&D and Technology Leadership
Commitment to R&D and Technology Leadership RESEARCH & DEVELOPMENT R&D SPEND ($m) 20 19.1 17.5 18 16.5 INVESTMENT IN R&D IN ALL 16 MARKET CONDITIONS 14 12.7 ABILITY TO TARGET R&D SPEND IN LINE R&D Spend ($m) 12 WITH DEMAND 10 DISCIPLINED STAGE GATE PRODUCT 8 DEVELOPMENT PROCESS 6 6.8% 7.3% 7.2% INCR
Slide 46: Balance Sheet
Balance Sheet $m 30 JUNE 2021 30 JUNE 2020 Cash 58.5 38.3 INTERIM FULLY-FRANKED Receivables 58.2 43.5 DIVIDEND OF 1.0 CPS Inventory 41.5 41.2 FINAL FULLY-FRANKED DIVIDEND OF 1.4 CPS Fixed assets 1 78.6 79.6 IN LINE WITH HISTORICAL Intangibles 2 92.9 83.6 30% PAYOUT RATIO Other assets / deferred tax
Slide 47: MinePortal Transaction Overview
MinePortal Transaction Overview • IMDEX acquired the assets and intellectual property relating to DISCIPLINED MinePortal and associated software TRANSACTION • The circa $20m transaction includes an initial cash payment of $8m STRUCTURE • The balance of the transaction is payable by the issue of IMDE
Slide 48: 2021 AGM CEO Business Update
2021 AGM CEO Business Update CEO Business Update IMDEX IS A LEADING GLOBAL MINING-TECH COMPANY Many thanks Anthony. Good morning everyone and thank you for attending our 2021 AGM. Anthony has covered the highlights, so I will principally focus on four areas: • Firstly, our evolution as a Mining-Tech
Slide 49: 2021 AGM CEO Business Update
2021 AGM CEO Business Update WHY REAL-TIME ROCK KNOWLEDGE IS IMPORTANT So why is real-time rock knowledge and quality data important to our clients? Typically, we see billion-dollar capital investment decisions based on 1% of 1% of the ore body being sampled. The key limitation is quality data in re
Slide 50: 2021 AGM CEO Business Update
2021 AGM CEO Business Update FOUR COMPELLING GROWTH DRIVERS Although our business and the industry have been impacted by COVID, our underlying strategy remains unchanged. Prioritising our technology leadership and embedding value for clients is key. Leveraging our core competencies within the explor
Slide 51: 2021 AGM CEO Business Update
2021 AGM CEO Business Update data. Its deep analytical capability provides answer products that inform critical decisions in the mining process. On the left of the slide, some of the large data sets that can be ingested by MinePortal are identified, including data from IMDEX technologies and other t
Slide 52: 2021 AGM CEO Business Update
2021 AGM CEO Business Update STRONG INDUSTRY FUNDAMENTALS Despite COVID, the fundamentals driving industry growth remain strong. Strong commodity prices are leading to significant budget increases for exploration programs. The iron ore price decreased sharply, yet it remains higher than it has been
Slide 53: 2021 AGM CEO Business Update
2021 AGM CEO Business Update FY22 KEY FOCUS AREAS AND OPERATIONAL INITIATIVES In addition to the points we have already discussed, our focus for the balance of FY22 will be on the continued protection of our people as we emerge from COVID restrictions around the world. Protecting our business from s