Intelligent Monitoring Group Limited · ASX:IMB
Intelligent Monitoring — Investor Presentation (May 2024)
26 slides from Intelligent Monitoring's investor presentation, May 28, 2024
Slide 1: Acquisition & Capital Raise Presentation
Perth Acquisition & Capital Raise Presentation May 2024 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 proposed acquisitio
Slide 3: Acquisition of Commercial Security Business and Capital Raise
ACQUISITION OF COMMERCIAL SECURITY BUSINESS AND CAPITAL RAISE IMG acquisition of ACG & AAG anticipated to increase earnings, grow the skilled workforce to provide greater capacity for growth, whilst strengthening the balance sheet ✓ Intelligent Monitoring Group (“IMG”) has agreed to acquire ACG Inte
Slide 4: Intelligent Monitoring Group (IMG) Overview
INTELLIGENT MONITORING GROUP (IMG) OVERVIEW
Slide 5: Company Overview
COMPANY OVERVIEW • IMG is a leading provider of monitored security and IoT Share price $0.345 solutions, providing security services to over 180,000 FD Shares on issue (m) 260.2 businesses, homes, and individuals across Australia and Market capitalisation (m) $89.8 New Zealand. Gross debt $82.9 • La
Slide 6: IMG Board & Businesses
IMG BOARD & BUSINESSES DENNISON HAMBLING PETER KENNAN Managing Director Non-Executive Chairman Joined Jan 2020, Joined Jan 2020, Australia Executive Director August 2021 Resi/SME/Commercia Chairman Effective July 2021 l/ADT Care Significant experience in direct Founder of Black Crane and investment
Slide 7: Experienced Executive Team
EXPERIENCED EXECUTIVE TEAM Jason Biddell Geoff Campbell-Brown Alison Kingdon Chief Financial Officer General Manager ADT General Manager ADT IMG Group Australia New Zealand 5 years in the Security Industry 24 years of experience in security solutions 20 years of sales and operations Proven competenc
Slide 8: Growth Timeline
GROWTH TIMELINE Current team have delivered a successful business turnaround and are now focused on growth 4 3 Scale 2 Move to growth ➢ Aiming to be a 1 Recovery & preeminent provider of electronic and rebase phase Business security monitoring Foundation & ➢ Acquisition / capital services growth ind
Slide 9: IMG Group Financials
IMG GROUP FINANCIALS
Slide 10: Profit & Loss Overview
PROFIT & LOSS OVERVIEW FY24 Strong performance through P&L Summary Guidance 1H24 (5 mths Forecast ADT transformation Pre ADT ADT) FY24*** Revenue $m 147.6 55.7 131.4 ➢ Sale of underperforming AIS division reduced overall revenue forecast but Gross Profit $m 26.2 60.1 added to improved EBITDA Adjuste
Slide 11: 1H24 Balance Sheet
1H24 BALANCE SHEET Reset and stable balance Balance Sheet Summary sheet IMG ➢ Working capital position elevated (Dec 2023) at Dec-23, and expected to Cash $m 8.9 unwind in 2H24, even with investment into DIY inventory Receivables $m 19.0 ➢ Cash position $7.7m. Gross Debt: Inventory $m 4.5 $82.9. Net
Slide 12: Cashflow Overview
CASHFLOW OVERVIEW Lift in operating cashflows shows the slowing of Capex utilisation Cashflow Summary ➢ The business generates strong underlying operating cashflow IMG IMG 1H24 YTD 3Q24 ➢ YTD period includes significant refinance, ADT deal and transition costs, as expected Underlying EBITDA $m 14.2
Slide 13: Capital Management & Value Creation Strategy
CAPITAL MANAGEMENT & VALUE CREATION STRATEGY Industry leader with strong balance sheet and cash flow Disciplined investment Strategy to Opportunities Strong expected to refinance remain to cashflow drive cash expensive reinvest returns* to debt in 1H organically or shareholders CY2025 via M&A at off
Slide 14: IMG Growth Opportunities
IMG GROWTH OPPORTUNITIES
Slide 15: Significant Growth Area #1 Residential: Do It Yourself
Growth Opportunity SIGNIFICANT GROWTH AREA #1 RESIDENTIAL: DO IT YOURSELF ➢Australian penetration of monitored alarms has essentially Residential - 9.1% of Australian Households grown at the rate of physical experienced some form of household crime in 2021- housing formation 2022, but only 5% of hou
Slide 16: Do-It-Yourself Security Has Arrived
DO-IT-YOURSELF SECURITY HAS ARRIVED New ADT Secure Home Connected DIY Solution in ADT Legacy System (JCI Hardware) partnership with Sybersense/Securenet DIY Journey so far: • Faster, Better platform • Faster delivery time and cost recovered upfront • Nearly 100% better value • First shipment of 50 u
Slide 17: Significant Growth Area #2 Commercial: Bringing ADT Back
Growth Opportunity SIGNIFICANT GROWTH AREA #2 COMMERCIAL: BRINGING ADT BACK ➢IMG has rebooted the commercial installation and service business of Security is in demand, unconsolidated and underpenetrated. ADT which is expected to contribute Commercial - $5b market, with no players holding greater th
Slide 18: Significant Growth Area #3 ADT Care
Growth Opportunity SIGNIFICANT GROWTH AREA #3 ADT CARE (NEW GROWTH AREA) ➢IMG has created a standalone division inside ADT Australia – “ADT ADT Care has access to a significant market opportunity, Care” involving ongoing investment in cutting-edge hardware and software solutions, as well as annual r
Slide 19: Acquisition of ACG, Alarm Asset Group and Equity Raise
ACQUISITION OF ACG, ALARM ASSET GROUP AND EQUITY RAISE 19
Slide 20: Acquisition Overview and Strategic Rationale
ACQUISITION OVERVIEW AND STRATEGIC RATIONALE Acquisition Strategy About ACG ✓ Acquisitions add in more than 35 employees to increase • ACG is a premier provider of tailored security solutions and scale, unlock capacity for continued growth in Commercial integration services for large enterprises. •
Slide 21: Acquisition Overview and Strategic Rationale
ACQUISITION OVERVIEW AND STRATEGIC RATIONALE Acquisitions and equity raise strengthen balance sheet and provide an increased capacity to unlock growth in both Commercial and Residential work. IMG has a strong platform for cash flow generation and long-term growth ✓ Acquisitions significantly increas
Slide 22: P&L Post Acquisitions
P&L POST ACQUISITIONS P&L Summary Forecast Proforma FY24 FY24*** Significant lift to NPAT Revenue $m 131.4 154.8 expected Gross Profit $m 60.1 65.8 ➢ Acquisitions add Adjusted EBITDA* $m 33.5* 39.2* significant “straight through” impact to all EBITDA margin % 25.5% 25.3% profit lines of the business
Slide 23: Equity Raising Overview
EQUITY RAISING OVERVIEW • Placement to professional and sophisticated investors (“Placement”) to raise gross proceeds of up to approximately $19.3 million (“Equity Raising”). Structure & Size • Up to approximately 60.4 million New Shares to be issued under the Equity Raising, representing 25% of the
Slide 24: Company Highlights
COMPANY HIGHLIGHTS With a strengthened balance sheet and increased capacity to unlock growth in both Commercial and Residential work, IMG has a strong platform for cash flow generation and long-term growth Defensive industry dynamics and strong brand recognition in ADT business 1 support robust ongo
Slide 25: Contact Us
CONTACT US 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 25
Slide 26: Intelligent Monitoring
INTELLIGENTS MONITORING & 26
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