Imdex Ltd · ASX:IMD
Imdex — H1 2022 Earnings Presentation
37 slides from Imdex's earnings presentation, Feb 7, 2022
Slide 1: Amended IMDEX 1H22 Results Presentation cover letter
For personal use only 7 February 2022 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir / Madam, Amended IMDEX 1H22 Results Presentation Please find attached an amended Half Year Results Presentation to replace that released to the ASX earlier today.
Slide 2: IMDEX FY22 Half Year Results Presentation
IMDEX FY22 For personal use only Half Year Results Presentation 7 FEB 2022 PAUL HOUSE – CEO PAUL EVANS – CFO CONFIDENTIAL PROPERTY OF © IMDEX LIMITED
Slide 3: 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 4: IMDEX is a leading global mining-tech company
IMDEX IS A LEADING GLOBAL MINING-TECH COMPANY. For personal use only WE ENABLE CLIENTS TO FIND, DEFINE AND MINE OREBODIES WITH PRECISION AND AT SPEED. 3
Slide 5: Presentation Overview
PRESENTATION OVERVIEW For personal use only 1H22 FINANCIAL INDUSTRY BUSINESS FY22 FOCUS FINANCIAL & PERFORMANCE & MARKET OVERVIEW AREAS & OPERATIONAL UPDATE & GROWTH OUTLOOK HIGHLIGHTS 4
Slide 6: 1H22 Financial Highlights
35% 55% 81% 1H22 For personal use only FINANCIAL HIGHLIGHTS RECORD REVENUE RECORD EBITDA RECORD NPAT (1H22 $167.8m v 1H21 $124.3m) (1H22 $51.5m v 1H21 $33.2m) (1H22 $24.4m v 1H21 $13.5m) Up 35.3% on a constant currency basis Up 54.8% on a constant currency basis Underlying effective tax rate Strong
Slide 7: 1H22 Operational Highlights
1H22 1.71 0.26 35% For personal use only OPERATIONAL HIGHLIGHTS LTIFR EMPLOYEE ENGAGEMENT 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 trainin
Slide 8: 1H22 Financial Performance
For personal use only 1H22 FINANCIAL PERFORMANCE 7
Slide 9: Key Metrics
Key Metrics REVENUE $m (unless indicated otherwise) 1H22 1H21 VAR% For personal use only 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 -
Slide 10: A Strong Financial Platform
A Strong Financial Platform REVENUE EBITDA EBITDA For personal use only 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 1H
Slide 11: Strong Cash Conversion
Strong Cash Conversion EBITDA 75% For personal use only 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 EXCLU
Slide 12: Balance Sheet
Balance Sheet 19.4% $m 31 DEC 2021 30 JUNE 2021 For personal use only 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 RET
Slide 13: Industry & Market Update
For personal use only INDUSTRY & MARKET UPDATE 12
Slide 14: Strong Industry Fundamentals
Strong Industry Fundamentals FINANCINGS For personal use only • 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 t
Slide 15: Increasing Demand for Mining-Tech
Increasing Demand for Mining-Tech For personal use only 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
Slide 16: Our Market and the Impact of COVID-19
Our Market and the Impact of COVID-19 For personal use only 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 Flexid
Slide 17: Short-term Industry Constraints
Short-term Industry Constraints For personal use only “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 g
Slide 18: Business Overview & Growth
For personal use only BUSINESS OVERVIEW & GROWTH 17
Slide 19: Strong Core Business in All Market Conditions
Strong Core Business in All Market Conditions For personal use only 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 TECHNOLOGIE
Slide 20: Our Integrated Solutions
Our Integrated Solutions • Drilling Fluids For personal use only 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 Te
Slide 21: A Stronger Revenue Profile
A Stronger Revenue Profile SENSORS & SOFTWARE PRODUCTION EXPOSURE AMERICAS BROAD COMMODITY EXPOSURE For personal use only 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
Slide 22: Four Compelling Growth Drivers
Four Compelling Growth Drivers For personal use only 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 SOFT
Slide 23: On Track with Growth Strategy
On Track with Growth Strategy For personal use only 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 inc
Slide 24: FY22 Focus Areas and Outlook
For personal use only FY22 FOCUS AREAS AND OUTLOOK 23
Slide 25: FY22 Key Focus Areas and Operational Initiatives
FY22 Key Focus Areas and Operational Initiatives For personal use only 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 DIGI
Slide 26: Outlook
Outlook POSTIVE INDUSTRY FUNDAMENTALS For personal use only 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 W
Slide 27: Thank you
Thank you For personal use only 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
Slide 28: Appendices
For personal use only APPENDICES
Slide 29: A Mining-Tech Company
A Mining-Tech Company For personal use only 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 PATEN
Slide 30: Positioned to Deliver Attractive Returns
Positioned to Deliver Attractive Returns For personal use only 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 bud
Slide 31: Introducing Our Board of Directors
Welcome — Introducing Our Board of Directors COMMITTED TO DRIVING For personal use only 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
Slide 32: Executive Leadership Committee
Executive Leadership Committee For personal use only 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 T
Slide 33: Company Overview
Company Overview CORPORATE INFORMATION LARGEST SHAREHOLDERS AT 31 DEC 2021 % For personal use only 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 $1.17bn SHARE
Slide 34: Our Established Global Business
Our Established Global Business For personal use only OPERATING IN ALL KEY MINING REGIONS OF Smithers - Canada East Sussex - UK Rastede - Germany THE WORLD Vancouver - Canada Timmins - Canada Amsterdam - Netherlands Salt Lake City - USA SALES IN 100+ San Luis Obispo - USA Phoenix - USA Torreón - Mex
Slide 35: Our Integrated Rock Knowledge Engine
Our Integrated Rock Knowledge Engine Our Integrated For personal use only Rock IMDEXHUB-IQ™ CLOUD PLATFORM QA/QC, SECURE REAL-TIME DATA IMDEX IMDEX IMDEX ROCK KNOWLEDGE REAL-TIME DATA ANSWER SENSORS & ANALYTICS PRODUCTS Knowledge Geoscience analytics, AI and Answer products MINERALS Originating data
Slide 36: Commitment to R&D and Technology Leadership
Commitment to R&D and Technology Leadership For personal use only RESEARCH & DEVELOPMENT R&D SPEND ($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
Slide 37: For personal use only
For personal use only EXPLORATION & DEVELOPMENT MINING PRODUCTION DRILLING OPTIMISATION PRODUCTS ROCK KNOWLEDGE SENSORS REAL-TIME DATA & ANALYTICS