Slide 1: 1H21 Results Presentation
IMDEX For personal use only 1H21 Results Presentation CONFIDENTIAL PROPERTY OF 8 FEBRUARY 2021 © IMDEX LIMITED PAUL HOUSE – CEO PAUL EVANS – CFO & COMPANY SECRETARY
Slide 2: We are a leading global Mining-Tech company
We are a leading global Mining-Tech company. For personal use only We develop drilling optimisation products and cloud-connected sensors to provide real-time rock knowledge and quality data. Together our solutions enhance decision making and sustainable operations across the mining value chain – fro
Slide 3: 1H21 Financial Highlights
1H21 Financial Highlights For personal use only REVENUE EBITDA STRONG $124.3m $33.1m1 CASH DOWN 3% ON 1H20 UP 6% ON 1H20 GENERATION CASH FROM OPERATIONS UP 1.5% ON A CONSTANT UP 9% ON A CONSTANT UP 33% WITH A STRONG CURRENCY BASIS CURRENCY BASIS FOCUS ON COLLECTIONS DIVIDENDS ROBUST CAPACITY TO DECL
Slide 4: 1H21 Operational Highlights
1H21 Operational Highlights For personal use only HEALTH & Zero lost time injuries and improved LTIFR SAFETY Strong focus on employee wellbeing COVID-19 Continued recovery of operations in all regions Ongoing focus on protecting our people and supply chain INDUSTRY Signed a JDA with a tier 1 mining
Slide 5: Strong Core Business in All Market Conditions
Strong Core Business in All Market Conditions For personal use only OUTPERFORMING DRIVING GROWTH STRONG COMPETITIVE MARKET GROWTH STRATEGY POSITION 4-YEAR REVENUE CAGR ONGOING R&D IN ALL MARKET CONDITIONS AN UNPARALLELED GLOBAL FOOTPRINT, PRESENT ON 70% OF SITES 10.7% STRATEGIC TECHNOLOGY ACQUISITIO
Slide 6: 1H21 Financial Review
1H21 FINANCIAL REVIEW For personal use only PAUL EVANS IMDEX CFO & COMPANY SECRETARY 6
Slide 7: Key Metrics
Key Metrics For personal use only $m 1H21 1H20 VAR VAR % Revenue 124.3 127.7 -3.4 -3% EBITDA 1 33.1 31.3 1.8 6% EBITDA Margin % 1 26.6% 24.5% 2.1% 9% NPBT 2 18.9 23.3 -4.4 -19% NPAT 2 13.5 18.2 -4.7 -26% EPS (cents) 2 3.42 4.75 -1.33 -28% Operating Cash Flow 33.2 24.9 8.3 33% Operating Cash Flow Per
Slide 8: Revenue by Region
Revenue by Region For personal use only 4 YEAR CAGR 10.7% • Revenue down 3% on 1H20 and up 1.5% on a constant 127.7 125.0 124.3 currency basis 118.7 113.8 110.0 • Activity continued to rebound 104.7 in all mining regions following 94.4 COVID 81.8 74.5 68.8 • A stronger uplift in Canada, USA and West
Slide 9: EBITDA & EBITDA Margin %
EBITDA & EBITDA Margin % For personal use only 4-YEAR CAGR • EBITDA up 6% on 1H20 and 9% on a constant 18.2%* currency basis 33.1 31.3 • Gross margins increasing due 27.1 to a greater % of revenue from 25.2 28.0 23.1 instruments and software 22.3 • EBITDA margins benefiting 20.1 18.0 from product mi
Slide 10: Cash Generation from Operations
Cash Generation from Operations For personal use only 2.3 33.1 33.2 (1.2) (0.2) (0.8) CASH FROM OPERATIONS UP 33% ON PCP • Strong working capital management supported by disciplined collection activity • Historical ratio of 30c - 35c for every incremental dollar EBITDA 1 Working Other 2 Tax Finance
Slide 11: Balance Sheet
Balance Sheet For personal use only $m 31 DEC 2020 30 JUN 2020 Cash 59.8 38.3 Receivables 44.2 43.5 Inventory 37.5 41.2 Fixed assets 1 75.4 79.6 NET CASH Intangibles 2 91.1 83.6 $47m Other assets / deferred tax 31.5 31.9 UP 84% TOTAL ASSETS 339.5 318.1 ON PCP Payables 28.7 26.9 Borrowings 3 12.8 6.1
Slide 12: Sustainability — Key Focus Areas
Au Fe Cu Sustainability — Key Focus Areas Ag Fe Cu Ag For personal use only We are committed Supporting Economic Ensuring a safe and to enhancing Development inclusive global workplace our disclosure u Maximising shareholder value over Providing a working environment that relating to ESG the short,
Slide 13: Market & Industry Update
For personal use only MARKET & INDUSTRY UPDATE 13
Slide 14: Our Market and the Impact of COVID-19
Our Market and the Impact of COVID-19 For personal use only Evolution of COVID-19 Government Mandated Restrictions on Mining Regions Updated Key Risks Key Opportunities • Global COVID-19 cases are rising. Increasing pressure • Acceleration of positive industry structural change on industry processes
Slide 15: Strong Commodity Prices & Regional Demand
Strong Commodity Prices & Regional Demand For personal use only GOLD EXPLORATION BUDGET AND GOLD PRICE, 2006 - 2020 CANADA BUDGET BY STAGE OF DEVELOPMENT, 2011 - 2020 “ The gold industry must invest $54bn in new production by 2025 on greenfield (new) projects and mine restarts over the next five yea
Slide 16: Clients Well Funded and Increasing Budgets
Clients Well Funded and Increasing Budgets For personal use only GLOBAL MINERALS EXPLORATION SPEND (US$BN) Number of Dec-20 / Jan-21 raisings up 19% YoY and $ value of raisings up 32% YoY. May-20 to Jan-21 raising volumes and values are up ~128% and ~49% YoY respectively. BLOOMBERG JANUARY 2021 Fina
Slide 17: Positive Long-Term Outlook for Mining & Mining-Tech
Positive Long-Term Outlook for Mining & Mining-Tech For personal use only “ US$1 trillion of investment would be needed in key energy “ ...Mining is essential. We know this. I’m not talking here just about the value “ Rapid technological advances in AI, robotics and automation, analytics, transition
Slide 18: A Growth Company
For personal use only A GROWTH COMPANY 18
Slide 19: How We Provide Real-time Rock Knowledge and Quality Data
How We Provide Real-time Rock Knowledge and Quality Data For personal use only • Drilling • Downhole survey productivity and ........ 1.33 Rock sensors . rig alignment Drilling Knowledge • Core orientation technologies Optimisation Sensors and gamma logging • Automated and technologies remote drilli
Slide 20: Maturing a Stronger Business Profile
Maturing a Stronger Business Profile For personal use only AVERAGE REVENUE ESTIMATED COMMODITY DIRECTLY PROFILE EXPOSURE SUPPORTING MAJOR 20% 33% 25% 18% MINING COMPANIES AND 43% 57% 41% 7% DRILLING CONTRACTORS 80% GLOBALLY 26% 50% • Increasing recurring rental SALES EXPLORATION & AMERICAS GOLD and
Slide 21: Compelling Growth Strategy
Compelling Growth Strategy For personal use only Growing core business by enhancing technical NEW DRILLING leadership and embedding OPTIMISATION NEW ROCK value for clients KNOWLEDGE NEW TECHNOLOGIES AND ROCK KNOWLEDGE SENSORS PRODUCTS / TECHNOLOGIES SENSORS Expansion within the larger, less cyclical
Slide 22: How We Are Growing Our Core Business
How We Are Growing Our Core Business For personal use only Technology Leadership Value of IMDEXHUB-IQ™ CASE STUDIES Project 1: Resource Company in North America ONGOING R&D 58% OF TOP 100 5-Year Journey INVESTMENT IN ALL MARKET Number of rigs 24 CLIENTS USE IMDEXHUB-IQ™ CONDITIONS INCLUDING COVID-19
Slide 23: Outlook & Summary
OUTLOOK & SUMMARY For personal use only PAUL HOUSE IMDEX CEO 23
Slide 24: Positioned to Deliver Attractive Returns
Positioned to Deliver Attractive Returns For personal use only STRONG CORE A GROWTH POSITIVE INDUSTRY DRIVERS BUSINESS COMPANY • Resource companies are well funded • Outperforming market growth • Strong pipeline of new with increasing budgets Au • Strong financial platform technologies and software
Slide 25: Outlook for FY21
Outlook for FY21 For personal use only • The long-term outlook for Mining-Tech is stronger than it has ever been • We remain watchful and ready to respond to risks and opportunities presented by COVID-19 • We are positioned to benefit from increasing demand for real-time ore body knowledge • Clients
Slide 26: For personal use only
For personal use only 26
Slide 27: Thank you
Thank you For personal use only THIS PRESENTATION HAS BEEN PREPARED BY IMDEX LIMITED (“THE COMPANY”). IT CONTAINS GENERAL FOR FURTHER INFORMATION 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 PUR
Slide 28: Appendices
For personal use only Appendices
Slide 29: Company Snapshot
Company Snapshot For personal use only SHARE REGISTER CORPORATE INFORMATION AT 31 DECEMBER 2020 ANALYSIS OF TOP 50 SHAREHOLDERS AT 8 JANUARY 2021 ASX listed IMD Institutions 69.51% Share price $ 1.72 Employees, directors & company related parties 1.13% Issued shares m 396.5 Private shareholders 5.63
Slide 30: Our Board of Directors
Our Board of Directors For personal use only Committed to driving sustainable growth Ms Sally-Anne Layman Mr Kevin Dundo Mr Anthony Wooles Mr Ivan Gustavino Non-Executive Director Non-Executive Director Non-Executive Chairman Non-Executive Director
Slide 31: Executive Leadership Team
Executive Leadership Team For personal use only Paul House Paul Evans Shaun Southwell Mathew Regan Michelle Carey CEO CFO & Company Chief Operating Chief Corporate Global Manager – IMDEX Secretary Officer Shared Services Product Development Dave Lawie Tim Price Kylie Panckhurst Kiah Grafton Chief Ge
Slide 32: Established Global Business
replace with Timaru Established Global Business For personal use only STRONG MARKET PRESENCE ON Smithers - Canada East Sussex - UK Rastede - Germany 70% OF MINERAL Vancouver - Canada Timmins - Canada Amsterdam - Netherlands DRILLING PROJECTS Salt Lake City - USA San Luis Obispo - USA GLOBALLY Phoeni
Slide 33: Clients & Industry Partners
Clients & Industry Partners For personal use only OUR CLIENTS Drilling contractors and resource companies globally INDUSTRY PARTNERS / DIRECTLY SUPPORTING LONG-STANDING THOUGHT LEADERSHIP MAJOR MINING COMPANIES DRILLING CLIENTS INDUSTRY PARTNERS Top 50 mining companies globally Long-standing Drillin
Slide 34: Why Real-time Rock Knowledge is Important
Why Real-time Rock Knowledge is Important For personal use only Rock knowledge is an We enable the timely delivery MANY $BN MINING understanding of location, of quality data, giving clarity INVESTMENT DECISIONS ARE texture, grade and mineralogy. on the nature of the rock to MADE HAVING SAMPLED ONLY
Slide 35: Strategic Technology Acquisitions - AusSpec
Strategic Technology Acquisitions - AusSpec For personal use only Strengthening Rock Knowledge Offering AusSpec enhances IMDEX’s rock knowledge offering with spectral mineralogy and LOCATION: IMDEXHUB-IQ™ connected survey tools AI technologies mean geologists can see where their holes are anywhere a
Slide 36: The Optimised Drill Site
The Optimised Drill Site — Delivering clients greater economic value For personal use only 3rd party software Satellite technology REPORTING EDUCATION & TRAINING DRILLING TECHNOLOGIES Daily Drill Report Online learning COREVIBE™ XTRACTA™ STRUCTURAL IN-FIELD GEOANALYSIS aiSIRIS MAGHAMMER™ AMC BOS™ Sa
Slide 37: Case Study: Major Resource Company
Case Study: Major Resource Company IMDEX solution delivers significant savings For personal use only THE PROJECT IMDEX FLUIDS FLUIDS COMPANY ‘X’ COMPANY ‘Y’ 3 service providers assigned to drill P : 1,133 3 holes each on the AVERAGE P : 1,366 P : 1,366 same project ACROSS THREE DRILL CREWS H : 5,801
Slide 38: Collaboration Wins Queensland Mining METS Innovation Award
Collaboration Wins Queensland Mining METS Innovation Award For personal use only IMDEX and UFR combine AI, robotics, automation, analytics and the Industry Internet of Geosensing to enhance the safety and productivity of logging blast holes. “ A great innovation that shows the power of partnering. A