Imdex Ltd · ASX:IMD
Imdex — Shareholder Meeting (October 2022)
51 slides from Imdex's shareholder meeting presentation, Oct 6, 2022
Slide 1: 2022 AGM Chairman and CEO's Presentations cover letter
IMDEX LIMITED | ABN 78 008 947 813 216 Balcatta Rd, Balcatta WA 6021 Australia PO Box 1262, Osborne Park WA 6916 Australia +61 8 9445 4010 imdexlimited.com 6 October 2022 For personal use only Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir / Madam,
Slide 2: 2022 AGM Chairman's Address
2022 AGM Chairman’s Address 2022 ANNUAL GENERAL MEETING, 6 OCTOBER 2022 Welcome For personal use only Good morning ladies and gentlemen – thank you for joining us today and welcome to IMDEX’s Annual General Meeting for the 2022 financial year. I advise that in accordance with the Company’s Constitut
Slide 3: FY22 financial and operational highlights
Moving now to the financial highlights of FY22: I am pleased to report that IMDEX continued to demonstrate the strength of its core business and growth strategy: • The Company achieved record revenue of $341.8m, which was up 29.3% on FY21. • Record EBITDA of $104.9m was up 38.9%. • Pleasingly, the E
Slide 4: FY23 Board priorities
As a Board our priorities for FY23 include: • Our people, their wellbeing, including their mental health, their professional development, and creating opportunities for all people through our diversity program; • Our disciplined investment in the strength of our underlying business and protecting ou
Slide 5: Financial statements and resolutions
To receive the Financial Statements and Reports The first item of ordinary business deals with the 2022 Annual Report. The 2022 Annual Report has been distributed to all shareholders and is also available for download from the Company’s website. There is no need to hold a vote however I invite Share
Slide 6: Voting and polling procedure
Please ensure you print your name where indicated and sign the voting paper. When you have finished filling in your voting paper, please lodge it in a ballot box to ensure your votes are counted. If you require any assistance, please raise your hand. [Pause whilst voting papers are completed] Would
Slide 7: 2022 Annual General Meeting
For personal use only 2022 Annual General Meeting ANTHONY WOOLES, CHAIRMAN PAUL HOUSE,CEO Classification | Restricted
Slide 8: Forward Looking Statements
Forward Looking Statements For personal use only THIS PRESENTATION MAY CONTAIN CERTAIN ‘FORWARD-LOOKING STATEMENTS’ AND RESULTS OR TRENDS TO DIFFER MATERIALLY, INCLUDING BUT NOT LIMITED TO PROJECTIONS PROVIDED BY OR ON BEHALF OF IMDEX LIMITED (IMDEX). FORWARD RETENTION OF KEY BUSINESS RELATIONSHIPS,
Slide 9: Our Board of Directors
Our Board of Directors COMMITTED TO DRIVING SUSTAINABLE GROWTH For personal use only Mr Anthony Wooles Ms Sally-Anne Layman Mr Ivan Gustavino Ms Trace Arlaud Mr Kevin Dundo Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director 3
Slide 10: FY22 AGM Agenda
For personal use only FY22 AGM CHAIRMANS ADDRESS AGENDA RESOLUTIONS & VOTING POLLING CEO ADDRESS CLOSE OF ANNUAL GENERGAL MEETING REFRESHMENTS 4
Slide 11: Chairman's Address
For personal use only Chairmans Address Photo by David Flores, IMDEX Country Manager – Argentina 5 Los Andes Mountains , Argentina, 4500m above sea level
Slide 12: FY22 Financial Highlights
FY22 Financial Highlights For personal use only 29% RECORD REVENUE 39% RECORD EBITDA 41% NPAT Up 26.5% on a constant currency basis Up 33.8% on a constant currency basis Effective tax rate 28.5% Strong demand in all regions Strong fixed cost leverage of our global network (FY22 $44.7m v FY21 $31.7m)
Slide 13: FY22 Operational Highlights
FY22 Operational Highlights For personal use only 0.77 LTIFR 15%* IMPROVED EMPLOYEE 11.9 SUSTAINALYTICS LOW 27% ROCK KNOWLEDGE IMPROVED FROM 1.85 ENGAGEMENT RISK ESG RATING SENSORS ON HIRE Improved safety engagement as a leading Enhanced employee Released first Sustainability Report IMDEX HUB-IQTM c
Slide 14: FY23 Board Priorities
FY23 Board Priorities For personal use only PROTECT OUR GROW OUR STRATEGY PEOPLE CORE BUSINESS EXECUTION Safety engagement and performance Support strategy to invest in its core Achieving strategic milestones business product portfolio Mental health and total wellbeing Protect intellectual property
Slide 15: ESG Inside and Outside of IMDEX
ESG Inside and Outside of IMDEX WE FOCUS ON ESG THROUGH TWO DISTINCT LENSES For personal use only Inside IMDEX Outside IMDEX The practices that we can Leverage our research and control to ensure we are setting development capabilities to the right targets and enhance the sustainability of continuous
Slide 16: Resolutions and Voting
For personal use only Resolutions and Voting Photo by David Flores 10 IMDEX Country Manager – Argentina
Slide 17: Adjournment of Annual General Meeting for Polling
For personal use only ADJOURNMENT OF ANNUAL GENERAL MEETING FOR POLLING 11
Slide 18: CEO Address
For personal use only CEO Address Paul House 12
Slide 19: IMDEX is a leading global mining-tech company
For personal use only IMDEX is a leading global mining-tech company. We are uniquely positioned to enable clients to find, define and mine orebodies with precision, confidence and at speed. 13
Slide 20: Our Integrated Solutions
Our Integrated Solutions For personal use only • Drilling Fluids Our Drilling Optimisation DRILLING suite of products enhance • Solids Removal Units OPTIMISATION SALES AND drilling productivity while • Remote Fluid Testing Technologies PERFORMANCE PRODUCTS improving safety and the • Rig Alignment Te
Slide 21: Our Strong Financial Platform
Our Strong Financial Platform For personal use only REVENUE EBITDA EBITDA MARGIN% 14% 27%++ 5 YEAR 5 YEAR CAGR** CAGR (Comparable S&P CAGR 9%**) 218.5 243.7 237.7 264.4 341.8 42.4+ 52.3+ 54.4* 75.5*^ 104.9*^ 22.2++ 23.9++ 22.9 28.5 30.7 $m $m % FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18
Slide 22: Our Stronger Revenue Profile
Our Stronger Revenue Profile For personal use only SENSORS & AMERICAS BROAD COMMODITY SOFTWARE EXPOSURE ^ 10% 7% 42% 27% 24% 8% 15% 56% 34% 29% 30% 35% 58% 39% 47% 45% 50% 32% 44% 8% FY17 FY22 FY17 FY22 FY17 FY22 SALES IMDEX HUB-IQ™ CONNECTED AMERICAS EUROPE/ GOLD IRON ORE SENSORS & SOFTWARE AFRICA
Slide 23: Our Strong Balance Sheet
Our Strong Balance Sheet For personal use only $m (unless indicated otherwise) Cash 30 JUNE 2022 36.4 30 JUNE 2021 58.5 16.2% Receivables 73.3 58.2 RETURN ON EQUITY Inventory 57.1 41.5 19.3% Fixed Assets1 83.7 78.6 Intangibles2 97.8 92.9 Investment in an associate3 5.0 0 RETURN ON CAPITAL EMPLOYED O
Slide 24: Our Strong Core Business Model
Our Strong Core Business Model For personal use only A STRONG FINANCIAL OUTPERFORMING ABILITY TO ESTABLISHED PLATFORM INDUSTRY GROWTH ACCELERATE GLOBAL CLIENT ORGANIC GROWTH NETWORK EBITDA margin expansion YOY 5-year revenue CAGR 14% Maintain technology leadership An unparalleled global footprint, p
Slide 25: Growth Opportunities
For personal use only Growth Opportunities 19
Slide 26: Drivers to Deliver Our Strategy
Drivers to Deliver Our Strategy For personal use only 1. TECHNOLOGY LEADERSHIP NEW PRO DUCT S, NEW PRO DUCT S, NEW SENSO RS AND SENSO RS AND Targeted R&D to win market share SO FT W AR E SO FT W AR E PRODUCTS / TECHNOLOGIES 2. EXTENSION INTO MINING PRODUCTION Leverage into this adjacent market where
Slide 27: Extension into Mining Production
2. Extension into Mining Production For personal use only DRILLING OPTIMISATION PRODUCTS • BHS is a higher margin fluid product to stabilise blast holes • Further BHS trials are underway with underground commercial prototypes in Africa, Asia and Australia • First significant commercial contract sign
Slide 28: IMDEX Mining Technologies – Customer Value Offering
IMDEX Mining Technologies – Customer Value Offering EXAMPLE DOWNSTREAM BENEFITS FOR IMPROVED RESOURCE STEWARDSHIP For personal use only Drilling Planning Blasting Mining Stock Piling and Blending Processing INDUSTRY • Drill hole stability • Imprecise geology • Sub-optimal blasting • Fully capturing
Slide 29: Precision Mining and Our MINEPORTAL Software
Precision Mining and Our MINEPORTALTM Software For personal use only GRANULAR DATA TO SUPPORT MWD VISUALISATION IN MINEPORTAL PRECISION MINING OVERLAID WITH AUTO BUILT BLOCK-MODEL 23
Slide 30: The Size of the Opportunity
The Size of the Opportunity BLAST DOG™ – A UNIQUE ROBOTIC LOGGING SERVICE For personal use only BLAST DOG TM BUSINESS GROWTH PHASE 1 WHY ENTER THE MINING PRODUCTION MARKET? • Substantially larger than the exploration and development market and 1200 less subject to cyclical impact TAM • Embedded into
Slide 31: An Update on our Key Industry Drivers
For personal use only An Update on our Key Industry Drivers Photo by David Flores – IMDEX Country Manager – Argentina 25
Slide 32: Industry Driver: Supply and Demand
Industry Driver: Supply and Demand For personal use only DISCOVERY OF MAJOR COPPER DEPOSITS LACKING RESOURCE COMPANIES NEED TO INCREASE EXPLORATION TO SUSTAIN PRODUCTION AND ADDRESS DIMINISHING RESERVES STRONG DEMAND FOR ALL COMMODITIES HEIGHTENED DEMAND FOR CRITICAL METALS DRIVEN BY DECARBONISATION
Slide 33: Industry Driver: Commodity Prices
Industry Driver: Commodity Prices For personal use only PRICES REMAIN AT HISTORICALLY HIGH LEVELS. THESE LEVELS ARE SUPPORTIVE OF CONTINUED INCREASED EXPLORATION EXPENDITURE Data as of 22 September, 2022 Source: S&P Global Market Intelligence 27
Slide 34: Industry Driver: Global Exploration Budgets
Industry Driver: Global Exploration Budgets For personal use only WORLD EXPLORATION TRENDS GLOBAL NONFERROUS EXPLORATION BUDGETS REMAIN 45% LOWER THAN THE PEAK LARGE AND MID-CAP RESOURCE COMPANIES CONTINUE TO INCREASE EXPLORATION BUDGETS, INCLUDING CY23 COMMITMENTS JUNIORS REPRESENT A SMALLER PORTIO
Slide 35: Industry Driver: Exploration Funding
Industry Driver: Exploration Funding For personal use only JUNIOR AND INTERMEDIATE FINANCINGS, JULY 2020-AUGUST 2022 LARGE AND MID-CAP RESOURCE COMPANIES ALL REMAIN WELL- FUNDED TO MEET THEIR COMMITTED PROGRAMS JUNIORS REMAIN WELL- FUNDED DESPITE SOME RECENT CONTRACTION IN CAPITAL RAISINGS Data as o
Slide 36: FY23 Focus Areas & Outlook
For personal use only FY23 Focus Areas & Outlook 30
Slide 37: FY23 Focus Areas
FY23 Focus Areas For personal use only PROTECT INCREASED INVESTMENT OUR PEOPLE IN IMDEX MINING AND DEVELOPING TECHNOLOGIES AND OUR TEAM SOFTWARE INVESTMENT IN OUR CORE BUSINESS MODEL INVEST IN DIGITAL 2.0 TO AND MAINTAIN OUR OPTIMISE COST BASE, DISCIPLINED APPROACH BUILD SCALE AND TO PRODUCT FURTHER
Slide 38: Positive Start to FY23
Positive Start to FY23 RECORD QUARTERLY For personal use only REVENUE 1Q REVENUE AVERAGE SENSORS ON 105.9* HIRE UP 13% ON 1Q22 AND 86.8 9% on 4Q22 67.3 67.6 22%* 1Q23 ARPU INCREASED 1Q23 REVENUE ON 1Q22 54.6 61.4 (19% at constant currency) 3% OVER 2H22 SENSOR & SaaS 12%* REPRESENT 59% OF 1Q23 1Q23 R
Slide 39: An Update Around Our Regions
An Update Around Our Regions 1Q23 REVENUE GROWTH BY REGION (unaudited) NORTH AMERICA For personal use only Increased drilling programs planned for CY23 in USA – focus on near mine operations. High demand for skilled labour contributing to rig fleet upgrade and renewal. Activity in Canada consistent
Slide 40: Client Activity
Client Activity DRILLING CLIENTS REPORT STEADY DEMAND For personal use only “The slowdown in junior financing is offset by a desire from senior customers to continue growing their reserves, both in “The underlying demand in the market continues to be precious and base metals. With the prices of meta
Slide 41: Positive Outlook
Positive Outlook For personal use only A STRONG START LONG-TERM GROWTH TO FY23 DRIVERS ARE STRONG Record quarterly revenue, up 22% on 1Q22 Diminishing reserves Average sensors on rent up 13% on 1Q22 Demand heightened by decarbonisation targets Strong demand for IMDEX product portfolio Prices remain
Slide 42: My Sincere Thanks to A Talented Team
My Sincere Thanks to A Talented Team For personal use only “The value I place in our team’s work effort, intelligence, and ability to challenge each other makes for the most rewarding work Mr Paul Evans Mr Shaun Southwell Ms Michelle Carey environment I have CFO COO Chief of Product Management and M
Slide 43: Thank you
Thank you. For personal use only For further information, please contact Kym Clements Investor Relations Officer kym.clements@imdexlimited.com
Slide 44: Results of FY22 Annual General Meeting
Results of FY22 Annual General Meeting For personal use only Resolution Details Instructions Given to Validly Appointed Number of Votes Cast on Resolution Proxies the Poll (where applicable) Result Resolution Resolution For Against Proxy’s Abstain For Against Abstain* Carried / Not Type Discretion C
Slide 45: 2022 AGM CEO Address – CEO Business Update
2022 AGM CEO Address CEO Business Update For personal use only IMDEX IS A LEADING GLOBAL MINING-TECH COMPANY Many thanks Anthony. Good morning, everyone and thank you for attending our 2022 AGM. Today I will principally focus on three areas: • Firstly, how IMDEX is positioned as a growth company and
Slide 46: CEO address: financial platform and revenue profile
o We signed our first commercial contract for BLAST DOGTM with Ironbridge Operations in the Pilbara; and finally, o We integrated our MINEPORTALTM automated 3D visualisation software into our BLAST DOGTM solution. For personal use only OUR STRONG FINANCIAL PLATFORM Anthony has covered the headline n
Slide 47: Drivers to Deliver Our Strategy
DRIVERS TO DELIVER OUR STRATEGY While the industry is actively navigating evolving market conditions, our underlying strategy remains unchanged. Principally: • Grow our core business in exploration and development; and For personal use only • Leverage our core competencies to accelerate our move int
Slide 48: BLAST DOG data and size of the opportunity
software provides. In the image supplied, you can clearly see the richness of data that can be unlocked compared to other modelling currently available today. How rich is the data set that BLAST DOGTM can capture? Today BLAST DOGTM can capture 1 million spatial data points per day, compared to 50k s
Slide 49: Industry Driver: Commodity Prices
INDUSTRY DRIVER: COMMODITY PRICES Looking now at commodity prices. While some prices have come off recently, they still remain relatively strong and, in many cases, at a five-year high. Importantly, pricing is well above what is required to support ongoing exploration. For personal use only INDUSTRY
Slide 50: Regional update and common themes
The Americas were up 17%, Africa and Europe were up 29% and Asia Pacific was up 27%. Our global presence gives us excellent insights. Common themes across our regions include: • Resource companies are maintaining or increasing their exploration budgets, particularly for near-mine operations. Activit
Slide 51: Thank you
Finally, I would like to thank our business partners and shareholders. IMDEX is a strong and resilient business with substantial opportunities for long-term growth. I am happy to talk more about our business and answer any questions over refreshments. Thank you For personal use only THANK YOU