Intelligent Monitoring Group Limited · ASX:IMB
Intelligent Monitoring — Coffee Microcaps (March 2024)
20 slides from Intelligent Monitoring's conference presentation, Mar 28, 2024
Slide 1: Coffee Microcaps Presentation – Growth platform
Sydney For personal use only Coffee Microcaps Presentation – Growth platform March 2024 August 2021 ASX:IMB
Slide 2: Disclaimer
DISCLAIMER This investor presentation has been prepared by Intelligent Monitoring Group Limited (ACN 060 774 227) (IMG or the Company). It contains general information about the Company and its subsidiaries (Group) and the Group’s business as at the date of this presentation, the recent acquisition
Slide 3: What is the opportunity?
WHAT IS THE OPPORTUNITY? For personal use only 9.1% of Australian Households experienced some form of household crime in 2021-2022. This is over 900,000 houses. But only 5% of houses have a monitored security solution. In the US 23% of houses are professionally monitored… this is going to change…. 3
Slide 4: What is IMG?
WHAT IS IMG? Consolidated business is largest player in security monitoring services in Australasia For personal use only >180,000 >$6.5m >64% One of Australia’s largest security Combined recurring Revenue is subscription based with diversified “sticky” monitoring providers focused on both monthly r
Slide 5: 1H 2024 Results Overview
1H 2024 RESULTS OVERVIEW First 5 months of ADT business, and business improvement program First period with ADT ownership For personal use only • With ADT for 5 months – IMG delivered an EBITDA of $14.2m – on track to meet or beat its EBITDA guidance for FY24. • Balance sheet now reset, acquisition
Slide 6: P&L Overview
P&L OVERVIEW Significant change in financial P&L Summary scale for IMG 1H23 1H24 Forecast (5 mths Change Pre ADT FY24 ADT) For personal use only ▪ EBITDA rises due to the inclusion of 5 months of ADT trading. Revenue (5 Months ADT) $m 11.6 55.7 44.1 147.6 ▪ ADT contributed $11.7m EBITDA for 5 Gross
Slide 7: Balance Sheet
BALANCE SHEET Reset and stable balance sheet Balance Sheet Summary IMG IMG (June 2023) (Dec 2023) ▪ Cash position $8.9m. Gross Debt: $75.8. For personal use only Net Debt $66.9m Cash $m 5.3 8.9 ▪ Net Debt : EBITDA 2.4x (on actual 1H Receivables $m 3.8 19.0 annualised) or 2.2x on FY24 EBITDA guidance
Slide 8: Cashflow Overview
CASHFLOW OVERVIEW Pick up in free cashflow masked by the ADT Cashflow Summary deal and restructuring costs and short-term working capital impacts IMG IMG For personal use only 1H23 1H24 Underlying EBITDA (ADT 5 $m 1.7 14.2 months) ▪ The business generates strong operating cashflow Nonrecurring costs
Slide 9: What is the opportunity?
WHAT IS THE OPPORTUNITY? For personal use only The platform is now created: The valuable IMG platform is now in place to deliver a growth strategy Growth and consolidation are now the focus: Three key growth segments for the business to pursue organically, and potentially with selective acquisitions
Slide 10: IMG has identified three significant growth areas
IMG HAS IDENTIFIED THREE SIGNIFICANT GROWTH AREAS For personal use only ADT Today ~$145m Revenue Key Assumptions ADT Care DIY potential $350m annual DIY penetration is revenue potential 40% of Foxtel subscriber base, with ADT attracting ADT DIY 50% of the market ADT Commercial $120m annual Prior pea
Slide 11: Prime market: strong outlook for security services
PRIME MARKET: STRONG OUTLOOK FOR SECURITY SERVICES In 2022 – household crime rates increased, for the first time in a decade. For personal use only > 194,100 had a 9.1% (903,700) of break in plus The chances of households Another > being broken into experienced 193,300 increase after the household c
Slide 12: Significant growth area #1 – Residential: Do it yourself
SIGNIFICANT GROWTH AREA #1 – RESIDENTIAL: DO IT YOURSELF Professionally Monitored Security Penetration of Homes and Businesses (North America versus Australasia) ➢ Australian penetration of monitored For personal use only alarms has essentially grown at the rate of physical housing formation ➢ The U
Slide 13: Do-it-yourself security has arrived
DO-IT-YOURSELF SECURITY HAS ARRIVED For personal use only FROM THIS TO THIS RRP = $2,729 RRP = $1,499 • Faster • Better platform Install time = up to 2 months Signup to Shipping = 3 to 4 days • Nearly 100% Kit includes Security Panel, 1 Kit includes Security Panel, 2 Motion better value Motion senso
Slide 14: Addressable market opportunity is large
ADDRESSABLE MARKET OPPORTUNITY IS LARGE For personal use only Australian Households ➢ Household crime in Australia has begun = 10,400,000 to trend up since the end of COVID with 9.1% of households experiencing crime, from 8.8% in 2021. ➢ Only 520,000 houses in Australia have “back to base” monitored
Slide 15: Significant growth opportunity #2 – Commercial: Bringing ADT back
SIGNIFICANT GROWTH OPPORTUNITY #2 – COMMERCIAL: BRINGING ADT BACK For personal use only • IMG has rebooted the commercial installation and service business of ADT which is expected to contribute significantly to monitoring and group revenue from FY24 onwards. • ADT on acquisition had c. 4,000 large
Slide 16: Significant growth opportunity #3 – ADT Care
SIGNIFICANT GROWTH OPPORTUNITY #3 – ADT CARE (NEW GROWTH AREA) For personal use only • IMG has created a standalone division inside 191,000 ADT Australia – “ADT Care” 176,000 Australians using Australians in Residential Home Care • It will run separately from the ADT security Care monitoring centre
Slide 17: Investment thesis
INVESTMENT THESIS: Industry leader with strong balance sheet and focused deleveraging strategy For personal use only Drive equity value and Deleverage Strong cashflow multiple balance sheet (+17.9m* in expansion (2.2x to <1.5x in FY24) (Target 10x 18 months) multiple business) * Expected free cashfl
Slide 18: Summary: Company transformed during 2023
SUMMARY: COMPANY TRANSFORMED DURING 2023 Largest security monitoring company in Australasia For personal use only Customers EBITDA Market Cap Net Debt ND:EBITDA EV:EBITDA 1H 2023 (Pre ADT) ~70,000 $5.3m Proforma $16.6m (SP = $28.9m (1–year >5.0x 8.6x annualised $0.127cps) left) ~180,000 Target $29.8
Slide 19: Contact us
CONTACT US For personal use only Rod North Bourse Communications Pty Ltd Investor Relations Service Mobile: 0408 670 706 Email: rod@boursecommunications.com.au Dennison Hambling Email: dhambling@theimg.com.au 19
Slide 20: For personal use only
For personal use only INTELLIGENT & MONITORING 6 20
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