Imdex Ltd · ASX:IMD
Imdex — Shareholder Meeting (November 2016)
35 slides from Imdex's shareholder meeting presentation, Nov 25, 2016
Slide 1: 2016 Annual General Meeting Chairman's Address and Presentation
25 November 2016 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam 2016 ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS AND PRESENTATION Please find attached a copy of the Chairman’s Address and the Presentation to be given at the 2016 Annual General
Slide 2: IMD AGM Chairman's Address
25 NOVEMBER, 2016 IMD AGM CHAIRMAN’S ADDRESS Before reviewing the 2016 Financial Statements and Reports, I would like to provide a brief overview of Imdex’s performance during the financial year, the company’s current priorities, and its focus for the future. Let me start by saying that I’m delighte
Slide 3: Summary of FY16 Performance
Summary of FY16 Performance As announced to the market on 22 August 2016, statutory revenue from continuing operations was $143.3 million, a marginal increase on the FY15 result. Group EBITDA was a loss of $36 million, which included substantial non-recurring impairment and restructuring costs assoc
Slide 4: Capital structure and underlying cost of capital
Capital structure and underlying cost of capital of the company On the basis of improving sentiment returning to the mining services sector – together with Imdex’s strategic position – the company recently took the opportunity to raise $45 million in equity capital though a placement and accompanyin
Slide 5: Board refreshment and renewal
Board refreshment and renewal Imdex has benefitted from a strong and dedicated Board who has overseen the company for many years. Clearly, and in line with my own appointment, there has been recognition that, just as the company has sought to renew its focus on the core minerals business, the compan
Slide 6: Future Priorities
however, the company is in a position to realise value for these assets as and when oil and gas industry conditions improve. Most importantly, we have sought to re-focus the Executive Team on the underlying performance of the core minerals business. It is the view of the Board that repair to the cap
Slide 7: Executive remuneration
Executive remuneration The Board proposes to review Imdex’s Executive remuneration to ensure it delivers the requisite incentive for short and long-term performance. In light of this observation and as Chair of Imdex’s Remuneration Committee, we recently sought to benchmark the company’s Executive r
Slide 8: Technology leadership & industry collaboration
Notwithstanding the tremendous leverage available to Imdex through its equipment rental fleet, as mining sector drilling activity increases, the company looks forward to a range of exciting product releases courtesy of the R&D efforts of the company’s cutting edge engineering team. Further, industry
Slide 9: AGM Presentation
AGM Presentation 2016 Financial Year 25 November 2016 imdexlimited.com
Slide 10: Our Board
Our Board 1 imdexlimited.com
Slide 11: AGM Agenda
AGM Agenda WELCOME CHAIRMAN’S ADDRESS RESOLUTIONS & VOTING CLOSE OF MEETING MANAGING DIRECTOR’S ADDRESS GROUP TOURS OF IMDEX HEAD OFFICE FACILITIES imdexlimited.com
Slide 12: Chairman's Address
Chairman’s Address • Summary of FY16 financial performance • Statutory revenue from continuing operations $143.3m • Statutory loss of $36.3m, post impairments and one-off write downs • Normalised EBITDA from continuing operations of $20.3m • Minerals business – normalised EBITDA increased 13% • Curr
Slide 13: Close of IMD 2016 Annual General Meeting
Close of IMD 2016 Annual General Meeting imdexlimited.com
Slide 14: Managing Director's Address
Managing Director’s Address Bernie Ridgeway 5 imdexlimited.com
Slide 15: Real-time Subsurface Intelligent Solutions
Real-time Subsurface Intelligent Solutions At Imdex we are blending our trusted products with smart technologies to be the leader in real-time subsurface intelligence solutions. We deliver these leading technologies to the global minerals industry and targeted non-mining markets. Our purpose is to c
Slide 16: Refined Structure – Leading Brands
Refined Structure – Leading Brands • 100% focused on core minerals business in FY17 – competitive advantages & differentiated position • Divestment of oil and gas assets – closure and disposal costs largely limited to FY16 • Dominant within minerals industry – strong brands and market share • REFLEX
Slide 17: Imdex Solutions
Imdex Solutions • Together REFLEX and AMC provide real-time sub surface intelligence solutions • No current competitor can do this • First-mover advantage as industry leader • Sophisticated proprietary technologies • Principally drilling contractors and resource companies • Diverse commodity mix • P
Slide 18: Established Global Business
Established Global Business 9 imdexlimited.com
Slide 19: Diversified Client Base
Diversified Client Base (sample only) 10 imdexlimited.com
Slide 20: A Brief Look Backwards
A Brief Look Backwards 11 imdexlimited.com
Slide 21: Key Metrics FY16
Key Metrics FY16 A$m unless indicated otherwise FY16 FY15 VAR VAR% Statutory revenue from continuing operations1 143.3 142.3 1.0 1% EBITDA from continuing operations 15.1 27.6 -12.5 -45% Normalized EBITDA from continuing operations 20.3 15.6 4.7 30% NPAT -56.2 -22.5 -33.7 -150% EPS (cents) -23.11 -1
Slide 22: FY16 Minerals Revenue
FY16 Minerals Revenue A$m – Continuing Operations 241.7 182.7 142.3 143.3 125.4 FY12 FY13 FY14 FY15 FY16 13 imdexlimited.com
Slide 23: 1Q17 Overview
1Q17 Overview • Excellent safety results – zero lost time injuries • Revenue of $41.3 million, up 5.9% (1Q16: $39.0 million)** • EBITDA of $8.0 million, up 32.4% (1Q16: $6.0 million)* • Equity raising via a two tranche placement and SPP to raise $45 million • Proceeds (less costs) from placement and
Slide 24: 1Q17 Overview (Cont.)
1Q17 Overview (Cont.) • As more rigs return to work, more instrumentation is required • 17% increase in the average number of REFLEX rental instruments on hire in 1Q17 versus 1Q16 and a 16% increase on the previous quarter – highest in 3 years with further increases expected, subject to seasonal imp
Slide 25: Significantly Improved Capital Structure
Significantly Improved Capital Structure A$m unless indicated otherwise 31 OCT 16 30 JUN 16 VAR VAR% Cash 15.3* 13.0 2.3 18% Gross debt 16.1* 55.1 -39.0 -71% *Unaudited • Sale and closure of AMC Oil & Gas – proceeds applied to debt reduction/working capital • Negotiating new facility with a traditio
Slide 26: Market Update & Longer-Term Opportunities
Market Update & Longer-Term Opportunities 17 imdexlimited.com
Slide 27: Market Update
Market Update • Increased activity in the minerals sector – largely associated with gold • Major gold miners are generating free cash • Gold reserves replacement rate has been falling consistently over the last 10 years • Miners and exploration companies have increased budgets for the next 12 months
Slide 28: Market Update (cont.)
Market Update (cont.) • Large resource companies – continuing to focus on cost cutting initiatives and increasing efficiencies • Mining industry requires step-change productivity improvements • Mining industry is traditionally a slow adopter • New technologies are gaining momentum 19 imdexlimited.co
Slide 29: Future Trends – Industry Innovation
Future Trends – Industry Innovation • Real-time rock sample processing, geospatial information and structural knowledge • Ore body identification and characterization • Automation • Digital mines and the IoT • Big data analytics • Predictive maintenance and fleet management • Greater collaboration –
Slide 30: Ability to Leverage Future Industry Needs
Ability to Leverage Future Industry Needs • Technology leadership • Substantial R&D through the cycle • First-mover advantage with real-time connectivity • Building blocks of technologies to deliver innovation required by the industry • Established core competencies within our market • Cloud & conne
Slide 31: Positioning for Sustainable Earnings Growth
Positioning for Sustainable Earnings Growth • Protecting core markets and growing market position – maintaining technology leadership • Lessening impact of cyclical downturns – increasing exposure to production phase • Creating additional revenue streams – developing new technologies • Leveraging ch
Slide 32: Our Focus For Balance of FY17
Our Focus For Balance of FY17 • Finalise sale/closure of remaining AMC Oil & Gas businesses • Finalise new banking facility and payout Bain Capital • Continue to promote and enhance a safe work culture • Continue to develop leading technologies and Imdex solutions • Leverage first mover advantage –
Slide 33: Summary & Outlook
Summary & Outlook • Underlying minerals business performed well in FY16 • Exiting oil and gas sector – focused on minerals • Strong 1Q17 • Cost out program implemented • De-risked balance sheet – improved capital structure • Negotiating new lower cost banking facility • Exciting portfolio of technol
Slide 34: Appendices
Appendices 25 imdexlimited.com
Slide 35: Disclaimer
Disclaimer This presentation has been prepared by Imdex Limited (“the Company”). It contains general background information about the Company’s activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution of this