Slide 1: IMDEX FY22 Half Year Results Presentation
IMDEX FY22 Half Year Results Presentation 7 FEB 2022 PAUL HOUSE – CEO PAUL EVANS – CFO CONFIDENTIAL PROPERTY OF © IMDEX LIMITED
Slide 2: 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 3: 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. 3
Slide 4: Presentation Overview
PRESENTATION OVERVIEW 1H22 FINANCIAL INDUSTRY BUSINESS FY22 FOCUS FINANCIAL & PERFORMANCE & MARKET OVERVIEW AREAS & OPERATIONAL UPDATE & GROWTH OUTLOOK HIGHLIGHTS 4
Slide 5: 1H22 Financial Highlights
Move () 35% 55% 81% 1H22 FINANCIAL HIGHLIGHTS RECORD REVENUE RECORD EBITDA RECORD NPAT Up 35.3% on a constant currency basis Up 54.8% on a constant currency basis Underlying effective tax rate 31.7% Strong demand and growth in all regions (1H22 $51.5m v 1H21 $33.2m) Statutory tax rate 30.1% (1H22 $1
Slide 6: 1H22 Operational Highlights
1H22 OPERATIONAL HIGHLIGHTS 1.71 LTIFR 0.26 EMPLOYEE ENGAGEMENT 35% ROCK KNOWLEDGE 41% IMPROVEMENT GALLUP POLL IMPROVEMENT SENSORS ON HIRE (1H22 1.71 v 1H21 2.88) A strong focus on employee recognition, aiSIRIS spectra analysed up 45% Zero lost time injuries during 1H22 training and development Stro
Slide 7: 1H22 Financial Performance
1H22 FINANCIAL PERFORMANCE 7
Slide 8: Key Metrics
Key Metrics REVENUE $m (unless indicated otherwise) 1H22 1H21 VAR% 167.8 Revenue 167.8 124.3 34.9 127.7 124.3 140.1 EBITDA1 51.5 33.2 55.1 110.0 EBITDA1 Margin % 30.7 26.7 15.1 NPBT 34.9 18.9 84.5 NPAT 24.4 13.5 80.8 EPS (cents) 6.15 3.42 79.8 $m Operating Cash Flow 33.1 33.2 -0.3 1H20 2H20 1H21 2H2
Slide 9: A Strong Financial Platform
A Strong Financial Platform REVENUE EBITDA EBITDA 15% 5 YEAR CAGR ** 24% 5 YEAR CAGR ++ MARGIN % 167.8 51.5*^ 30.7 26.7 125.0 127.7 124.3 24.5 104.7 33.2 * 22.6 ++ 31.3* 22.1 ++ ++ 20.2 81.8 25.2 + 28.1 + + 20.1 ++ 13.5 ++ AFRICA/ EUROPE AMERICAS ASIA PAC 1H17 1H18 1H19 1H20 1H21 1H22 1H17 1H18 1H19
Slide 10: Strong Cash Conversion
Strong Cash Conversion EBITDA 75% RECONCILIATION 51.5 (11.5) (1.2) PRE TAX CONVERSION RATE (5.4) CASHFLOW CONVERSION CONTINUED TO BE (0.3) 33.1 STRONG WHILE SUPPORTING GROWTH WORKING CAPITAL INVESTMENT RATIO AT 40 CENTS FOR EVERY DOLLAR OF INCREMENTAL REVENUE OVER THE PCP EXCLUDING TAX, CASH FROM OP
Slide 11: Balance Sheet
Balance Sheet 19.4% $m 31 DEC 2021 30 JUNE 2021 Cash1 41.5 58.5 Receivables 56.2 58.2 Inventory 2 56.3 41.5 RETURN ON EQUITY Fixed assets 86.9 78.6 23.3% Intangibles 3 108.3 92.9 Investment in an associate 5.6 0 Other assets / deferred tax 40.6 36.4 TOTAL ASSETS 395.4 366.1 RETURN ON CAPITAL EMPLOYE
Slide 12: Industry & Market Update
INDUSTRY & MARKET UPDATE 12
Slide 13: Strong Industry Fundamentals
Strong Industry Fundamentals FINANCINGS • Strong commodity prices driven by a faster than expected global recovery and increasing demand due to diminishing reserves • Increasing capital raisings and strong demand across all commodities • Demand for critical metals is expected to increase Data as of
Slide 14: Increasing Demand for Mining-Tech
Increasing Demand for Mining-Tech BHP Head of “We still as an industry firefight a lot of challenges downstream in the value chain, realising we didn’t have the information we Geoscience needed upfront. And so, front-end loading that knowledge in terms of being able to quantify earlier, better, what
Slide 15: Our Market and the Impact of COVID-19
Our Market and the Impact of COVID-19 KEY CHALLENGES Supply chain – longer freight and delivery times, including new rigs Skilled labour – impacted by availability, mobility restrictions and attrition Limited access to mine sites for trials of new products, including the Flexidrill technologies unde
Slide 16: Short-term Industry Constraints
Short-term Industry Constraints “For the core drilling business, “Our second quarter of fiscal “Rig utilization ... reached “Our continuing focus on we also enter 2022 with the 2022 was very encouraging an average of 60% this people and on operational highest rig count in the group’s as activity lev
Slide 17: Business Overview & Growth
BUSINESS OVERVIEW & GROWTH 17
Slide 18: 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 ENHANCING LEADING AND GEOSCIENCE AND DIVERSE SUSTAINABLE TECHNOLOGIES CAPABILITIES LEADERS
Slide 19: Our Integrated Solutions
Our Integrated Solutions • Drilling Fluids Our Drilling Optimisation suite • Solids Removal Units Drilling of products enhance drilling • Remote Fluid Testing productivity while improving SALES AND Optimisation Technologies RENTAL safety and the impact on the • Rig Alignment Technologies Products en
Slide 20: A Stronger Revenue Profile
A Stronger Revenue Profile SENSORS & SOFTWARE PRODUCTION EXPOSURE AMERICAS BROAD COMMODITY EXPOSURE 10 % 10 % 7% 20 % 27 % 23 % 8% 15 % 44 % 59 % 35 % 30 % 30 % 34 % 90 % 80 % 56 % 50 % 41 % 39 % 47 % 45 % 1H17 1H22 1H17 1H22 1H17 1H22 1H17 1H22 SALES EXPLORATION & DEVELOPMENT AMERICAS EUROPE/ GOLD
Slide 21: Four Compelling Growth Drivers
Four Compelling Growth Drivers 1 TECHNOLOGY LEADERSHIP Targeted R&D to win market share 2 EXTENSION INTO MINING PRODUCTION Leverage into adjacent market where it is NEW PRODUCTS, NEW PRODUCTS, NEW SENSORS AND SENSORS AND often the same ore body and the same client SOFTWARE SOFTWARE PRODUCTS / TECHNO
Slide 22: On Track with Growth Strategy
On Track with Growth Strategy Acquired MinePortal software Spectra analysed with aiSIRIS up 45% Expanded client trial sites with IMDEX NEW PRODUCTS, Released fully-automated aiSIRIS software BLAST DOG™ including integration with NEW NEW PRODUCTS SENSORS AND Pursuing JDAs to increase client trials fo
Slide 23: FY22 Focus Areas and Outlook
FY22 FOCUS AREAS AND OUTLOOK 23
Slide 24: 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 2.0 TRANSFORMATION
Slide 25: Outlook
Outlook POSTIVE INDUSTRY FUNDAMENTALS Strong fundamentals – pace of growth tempered by short-term constraints Strong resumption of activity in January – sensors on hire were up 22.4% on pcp STRONG IMDEX CORE BUSINESS In a stronger position to respond to supply chain pressures Well positioned to bene
Slide 26: 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 aspect of modern life. technical leadership and increase market share. "Our global presence
Slide 27: Appendices
APPENDICES IMDEX
Slide 28: A Mining-Tech Company
A Mining-Tech Company TECHNICAL LEADERSHIP TRULY CAPITAL LIGHT DEVELOPING INTEGRATED IS CENTRAL TO GROWTH GLOBAL PEOPLE LIGHT SOLUTIONS STRATEGY CONSISTENT INVESTMENT LIMITED CONTRACT RISK BUILDING A IN R&D TO DESIGN AND LIMITED COMMODITY RISK HIGH-QUALITY REVENUE DELIVER PATENTED LIMITED GEOGRAPHY
Slide 29: Positioned to Deliver Attractive Returns
Positioned to Deliver Attractive Returns STRONG CORE A GROWTH POSITIVE INDUSTRY BUSINESS COMPANY DRIVERS • Outperforming market growth • Strong development pipeline of • Resource companies are well funded • Strong financial platform technologies and software with increasing budgets • Sustainable div
Slide 30: 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 30
Slide 31: Executive Leadership Committee
Executive Leadership Committee Paul House Paul Evans Shaun Southwell Mathew Regan Michelle Carey Chief Executive Chief Financial Chief Operating Chief of Corporate Chief of Product Officer Officer Officer Shared Services Management and Marketing John Hickey Dave Lawie Michael Tomasz Kiah Grafton Chi
Slide 32: Company Overview
Company Overview CORPORATE INFORMATION LARGEST SHAREHOLDERS AT 31 DEC 2021 % AT 31 DEC 2021 L1 Capital Pty Ltd. 6.9 ASX Code IMD FIL Investment Management (Aust.) Limited 4.3 Share Price $2.95 Yarra Capital Management 4.3 Issued Shares 396.5m Market Capitalisation $1.17bn SHARE PRICE SHARES BY % SHA
Slide 33: Our Established Global Business
Our Established Global Business OPERATING IN ALL KEY MINING REGIONS OF Smithers - Canada East Sussex - UK Rastede - Germany THE WORLD Vancouver - Canada Timmins - Canada Amsterdam - Netherlands Salt Lake City - USA SALES IN 100+ San Luis Obispo - USA Phoenix - USA Torreón - Mexico Coahuila - Mexico
Slide 34: Our Integrated Rock Knowledge Engine
Our Integrated Rock Knowledge Engine Our Integrated Rock IMDEXHUB-IQ™ CLOUD PLATFORM QA/QC, SECURE REAL-TIME DATA IMDEX IMDEX IMDEX ROCK KNOWLEDGE REAL-TIME DATA ANSWER SENSORS & ANALYTICS PRODUCTS Knowledge Geoscience analytics, AI and Answer products MINERALS Originating data computer visualisatio
Slide 35: Commitment to R&D and Technology Leadership
Commitment to R&D and Technology Leadership RESEARCH & DEVELOPMENT R&D SPEND ($m) 12.1 12 11 INVESTMENT IN R&D IN ALL 10 9.3 8.8 MARKET CONDITIONS 9 8.0 8 ABILITY TO TARGET R&D SPEND IN LINE R&D Spend ($m) 7 WITH DEMAND 6 5 DISCIPLINED STAGE GATE PRODUCT 4 DEVELOPMENT PROCESS 7.5% 7.2% 3 6.6% 6.8% I
Slide 36: Exploration & Development, Mining Production
EXPLORATION & DEVELOPMENT MINING PRODUCTION DRILLING OPTIMISATION PRODUCTS ROCK KNOWLEDGE SENSORS REAL-TIME DATA & ANALYTICS