Slide 1: FY19 Results Presentation
IMDEX For personal use only FY19 Results Presentation 19 AUGUST 2019 CONFIDENTIAL – PROPERTY OF © IMDEX LIMITED BERNIE RIDGEWAY – MANAGING DIRECTOR PAUL EVANS – CHIEF FINANCIAL OFFICER & COMPANY SECRETARY PAUL HOUSE – CHIEF OPERATING OFFICER
Slide 2: A leading global Mining-Tech company
A leading global Mining-Tech company. For personal use only Enabling successful and cost-effective operations, from exploration to production. 2
Slide 3: IMDEX at a Glance
IMDEX at a Glance A leading global Mining-Tech company For personal use only REVENUE CAGR FY19 EBITDA MARGIN BALANCE SHEET – Outperforming 19% 21% STRONG NET CASH market growth POSITION EBITDA CAGR $23.2m Exciting pipeline of new technologies 37% AS AT 30 JUNE 2019 FY17 – FY19 Compelling opportuniti
Slide 4: What Our Technologies Do: Secure real-time decision making
What Our Technologies Do Secure real-time decision making For personal use only Helping clients hit targets and make critical decisions 4
Slide 5: What Our Technologies Do: Enable successful cost-effective operations
What Our Technologies Do Enable successful cost-effective operations For personal use only We develop cloud-connected devices and drilling optimisation “ It’s about drilling faster and smarter and knowing your rocks in real-time.” products to improve the process of DR MICHELLE CAREY GENERAL MANAGER
Slide 6: Technology Portfolio & Data Ecosystem
Technology Portfolio & Data Ecosystem Applicable across the whole mining value chain For personal use only Drilling Accurate Faster & Smarter Subsurface Data Receiving Real-Time Information Exploration Discovery Definition Planning Fragmentation Extraction GRAPHIC SOURCE: CRC ORE EXPLORATION & DEVEL
Slide 7: FY19 Highlights
FY19 Highlights Strong performance and a positive outlook For personal use only Record revenue – up 12% and On track to commercialise new EBITDA – up 23% drilling productivity and mining technologies in 2H20 Fully-franked final dividend COREVIBE™ units on rent in 1Q20 of 1.4 cents per share Ongoing
Slide 8: FY19 Financial Review
FY19 FINANCIAL REVIEW For personal use only PAUL EVANS IMDEX CFO & COMPANY SECRETARY 8
Slide 9: Key Metrics
Key Metrics A strong financial platform For personal use only FY19 FY18 VAR $m $m $m FY19 FINANCIAL PERFORMANCE Revenue 243.7 218.5 25.2 (V FY18) 125.0 EBITDA 52.3 42.4 9.9 12% 23% 31% EBITDA margin % 21% 19% 25.2 2% NPAT 27.6 21.1 13.5 6.5 REVENUE EBITDA NPAT EPS (cents) 7.4 5.7 1.7 3.6 OPERATING C
Slide 10: Revenue by Region
Revenue by Region Record group result For personal use only 19% CAGR 243.7 218.5 FY19 REVENUE UP 176.2 12% 142.3 143.3 ON PCP • Increase in revenue across all regions • Benefiting from global presence • Strong 1Q19 and 4Q19 • Revenue growth outpacing tool fleet growth • A greater proportion of newer
Slide 11: EBITDA & EBITDA Margin %
EBITDA & EBITDA Margin % Driving operating leverage For personal use only 37% CAGR 52.3 FY19 42.4 EBITDA UP 23% ON PCP 31.5 20.3 • Improving gross margins 15.6 • Focus on streamlining operations and internal digital 7.4 transformation 4% 12% 14% 18% 19% 21% • Improvement in cost base FY14 FY15 FY16
Slide 12: Reconciliation of EBITDA
Reconciliation of EBITDA Strong cash conversion For personal use only 52.3 CASH FROM (7.9) OPERATIONS UP (2.1) (6.4) 35.2 121% (0.7) ON PCP • Working capital investment ratio of 34c for every incremental dollar of revenue for FY19 • In line with expectations, similar ratio expected in FY20 EBITDA Wo
Slide 13: Balance Sheet
Balance Sheet Strong net cash position For personal use only $m 30 JUN 19 30 JUN 18 Cash 29.5 13.9 Receivables 54.7 49.3 Inventory 37.1 33.6 NET CASH Fixed assets 39.4 36.5 UP Intangibles 59.5 59.5 194% ON PCP Other assets / deferred tax 39.0 33.3 TOTAL ASSETS 259.2 226.1 Payables 25.3 26.4 • Improv
Slide 14: Update on Growth
UPDATE ON GROWTH For personal use only PAUL HOUSE IMDEX COO 14
Slide 15: Growth Strategy
Growth Strategy Compelling opportunities for sustainable growth For personal use only Grow core business by: enhancing technical leadership; technical DRILLING PRODUCTIVITY integration; and increasing share TECHNOLOGIES IMDEX MINING TECHNOLOGIES NEW of client spend (INC COREVIBE™, (INC BLAST DOG™) M
Slide 16: Ongoing R&D Core Business
Ongoing R&D Core Business Connecting our traditional technologies For personal use only 43% 49% CONNECTED CLIENTS GENERATE 60% OF APPLICABLE OF TOP 100 CLIENTS INSTRUMENTS ARE ARE CONNECTED TO CLOUD-ENABLED IMDEXHUB-IQ™ MORE REVENUE THAN NON-CONNECTED UP 25% ON FY18 CLIENTS IMDEXHUB-IQ™ DATA THROUGH
Slide 17: Protecting our Future
Protecting our Future IP strategy to support this For personal use only TRADEMARKS PATENTS BREADTH OF IMDEX • IP Strategy considers the PATENT FAMILIES 120 82 technical advantage, the commercial benefit and legal systems to protect IMDEX 40 our revenue REGISTERED REGISTERED 46 88 • Patent filing str
Slide 18: Drilling Productivity Technologies
Drilling Productivity Technologies Strong industry demand For personal use only “I personally believe this technology to be the most significant change to drilling method in a long time.” CLIENT FIELD SUPERVISOR COREVIBE™ TRIALS COREVIBE™ TRIALS ACHIEVED >33% INCREASE IN PRODUCTIVITY • Pilot product
Slide 19: On Track to Deliver: COREVIBE & MAGHAMMER
On Track to Deliver Additional revenue from 1H20 For personal use only COREVIBE™ & MAGHAMMER™ Option period - comprehensive testing Exercise secondary option and product development Option to acquire Availability of IMDEX test site in NZ - Flexidrill extended option period for 6 months Anticipate ex
Slide 20: Mining Technologies
Mining Technologies On track to increase mine to mill efficiency For personal use only • Trials in multiple commodities with global resource companies • Successful client trials – in Nevada & QLD • Additional trials 1H20 – Chile & Australia • Strong support from industry partners including Anglo Ame
Slide 21: On Track to Deliver: Blast DOG
On Track to Deliver Additional revenue in 2H20 For personal use only Blast DOG™ 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Blast DOG™ design phase Blast DOG™ prototype trials Drill & Blast with clients commenced revenue Blast DOG™ anticipated prototype build phase Additional client trials 1H2
Slide 22: Outlook & Key Points
OUTLOOK & KEY POINTS For personal use only BERNIE RIDGEWAY IMDEX MD 22
Slide 23: Positive Growth Outlook
Positive Growth Outlook A strong start to FY20 For personal use only Mining production levels and Resource companies – embracing commodity prices – support innovation and new technologies further investment in industry to lower cost, increase safety and achieve greater productivity Major and interme
Slide 24: Key Points
Key Points Positioned to deliver attractive returns to shareholders For personal use only • Strong financial platform and competitive advantages • Driving sustainable earnings growth • Positioned to benefit from increasing demand for ore body knowledge • COREVIBE™ units on rent in 1Q20 • On track to
Slide 25: Thank you
Thank you For personal use only FOR FURTHER INFORMATION PLEASE CONTACT: KYM CLEMENTS IRO & CORPORATE COMMUNICATIONS KYM.CLEMENTS@IMDEXLIMITED.COM THIS PRESENTATION HAS BEEN PREPARED BY IMDEX LIMITED (“THE COMPANY”). IT CONTAINS GENERAL BACKGROUND INFORMATION ABOUT THE COMPANY’S ACTIVITIES CURRENT AS
Slide 26: Appendices
For personal use only Appendices 26
Slide 27: COREVIBE
COREVIBE™ Significant productivity gains for clients For personal use only TRADITIONAL DRILLING COREVIBE™ HIGH FREQUENCY 67 SHIFTS 47 SHIFTS PULSE ASSISTED DRILLING FOR UP TO 33% PRODUCTIVITY WIRELINE CORING IMPROVEMENT OPERATIONS 500m Minimises hole deviation with high penetration rates 1000m Reduc
Slide 28: MAGHAMMER
MAGHAMMER™ Significant productivity & safety benefits for clients For personal use only TRADITIONAL RC DRILLING MAGHAMMER™ ON DIAMOND DRILL RIG FLUID DRIVEN AIR POWERED WATER POWERED PERCUSSIVE Significantly safer and zero dust generated Entire drill hole can be DRILLING ON A completed with one rig
Slide 29: Drilling Productivity Technologies: Investment rationale
Drilling Productivity Technologies Investment rationale For personal use only • Attractive addressable market COREVIBE™ ~ 1800 coring rigs • Attractive addressable market for MAGHAMMER™ – initially targeting high speed pre-collar drilling through cover to the coring zone • Strong industry demand for
Slide 30: Blast DOG
Blast DOG™ Enabling total ore body knowledge For personal use only • An autonomous system for total ore body knowledge including logging for material characteristics of blast holes • Allows automated spatial domaining of physical properties and fracturing • Enables optimised blasting outcomes based
Slide 31: Blast DOG: Optimised blasting and material tracking
Blast DOG™ Optimised blasting and material tracking 1 2 3 4 5 For personal use only Drilling Domaining Optimised Post-Blast Productivity & Analytics Blasting Metrics Processing Metrics PREDICTABLE FRAGMENTATION OF BLASTED GROUND CONTROLLED VIBRATION, DUST, FUMES AND HEAVE INCREASED PROCESSING INTENS
Slide 32: Mining Technologies: Investment rationale
Mining Technologies Investment rationale For personal use only • Substantial addressable market, ~6000 blasts per day • Strong demand for productivity increases • Limited technology risk – leverages existing technology and engineering expertise • Potential to provide additional sustainable rental re
Slide 33: Company Snapshot
Company Snapshot As at 30 June 2019 For personal use only SHARE REGISTER CORPORATE INFORMATION ANALYSIS OF TOP 50 SHAREHOLDERS ASX listed IMD Institutions 67.03% Share price $ 1.31 Employees, directors & company related parties 2.30% Issued shares m 378.8 Private shareholders 5.54% Market cap $m 494
Slide 34: Established Global Business
Established Global Business Extensive network For personal use only SALES WITHIN 102 COUNTRIES FY19 Smithers - Canada East Sussex - UK Rastede - Germany Vancouver - Canada Timmins - Canada Amsterdam - Netherlands Salt Lake City - USA IMDEX Facilities San Luis Obispo - USA not including Phoenix - USA
Slide 35: Clients & Industry Partners
Clients & Industry Partners Long-standing collaborative relationships For personal use only OUR CLIENTS DIRECTLY SUPPORTING LONG-STANDING 18 OF THE TOP 50 MINING DRILLING CLIENTS • Drilling contractors and resource COMPANIES GLOBALLY companies in all key mining regions • BHP Billiton • Boart Longyea
Slide 36: ESG
ESG Achievements & Areas of Focus For personal use only SAFETY SOCIAL • Improving safety performance • Implemented Supplier Code of Conduct to align with • Enhancing visible safety leadership IMDEX’s transparent, safe and ethical procurement practices • Improving systems and compliance • Enhanced an
Slide 37: IMDEX Technology USA
IMDEX Technology USA World-class facilities and capabilities For personal use only • Unique product development and manufacturing facility • Extensive industry experience • Precision instrumentation • The IMDEX ‘X’ factor 37