Slide 1: IMDEX 2021 Full Year Results Presentation
IMDEX 2021 Full Year Results Presentation 16 AUG 2021 PAUL HOUSE – CEO PAUL EVANS – CFO & COMPANY SECRETARY CONFIDENTIAL PROPERTY OF © IMDEX LIMITED
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS THIS PRESENTATION MAY CONTAIN CERTAIN ‘FORWARD-LOOKING STATEMENTS’ AND PROJECTIONS PROVIDED BY OR ON BEHALF OF IMDEX LIMITED (IMDEX). FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF FORWARD LOOKING WORDS SUCH AS, ‘EXPECT’, ‘ANTICIPATE’, ‘LIKELY’, ‘INTE
Slide 3: Imdex is a leading global mining-tech company
IMDEX IS A LEADING GLOBAL MINING-TECH COMPANY. WE ENABLE CLIENTS TO FIND, DEFINE AND MINE OREBODIES WITH PRECISION AND AT SPEED.
Slide 4: Presentation Overview
PRESENTATION OVERVIEW FY21 FY21 INDUSTRY IMDEX GROWTH FY22 FOCUS FINANCIAL OPERATIONAL AND MARKET BUSINESS OPPORTUNITIES AREAS AND HIGHLIGHTS HIGHLIGHTS UPDATE OVERVIEW OUTLOOK APPENDICES IMDEX SUSTAINABILITY PRESENTATION 15 SEPTEMBER 2021
Slide 5: FY21 Financial Highlights
11% 39% 45% FY21 FINANCIAL HIGHLIGHTS REVENUE EBITDA NPAT Up 18% on a constant currency basis Up 50% on a constant currency basis Underlying effective tax rate 30.9% Strong demand in all regions Gross margins maintained Effective tax rate 28.9% Revenue near to or exceeding Strong fixed cost leverage
Slide 6: FY21 Operational Highlights
FY21 OPERATIONAL HIGHLIGHTS 53% LTIFR 52% RECORD SENSORS 30% IMDEXHUB™ +3 NEW JDAs ON RENT CONNECTED REVENUE A strong focus on employee Sensors on rent up 35% Delivering greater value Recommenced client trials wellbeing, diversity and on pre-COVID-19 peak for clients with IMDEX BLASTDOG™ workplace f
Slide 7: FY21 Financial Performance
FY21 FINANCIAL PERFORMANCE
Slide 8: Key Metrics
Key Metrics $m (unless indicated otherwise) FY21 FY20 VAR% REVENUE Revenue 264.4 237.7 11.2 125.0 127.7 140.1 118.7 124.3 EBITDA1 75.5 54.4 38.8 110.0 EBITDA1 Margin % 28.5 22.9 24.5 NPBT 44.5 29.1 52.9 2 NPAT 31.7 21.8 45.5 EPS (cents) 8.01 5.64 42.0 1H19 2H19 1H20 2H20 1H21 2H21 1 Operating Cash F
Slide 9: A Strong Financial Platform
A Strong Financial Platform REVENUE EBITDA EBITDA MARGIN % 13% 5 YEAR CAGR (Comparable S&P CAGR 8.3%**) 23.5%++ 5 YEAR CAGR 264.4 75.5*^ 243.7 237.7 28.5 218.5 52.3+ 54.4* 48.0 + 23.9 ++ 176.2 ++ 22.9 42.4+ ++ 22.2 21.3 31.5+ AFRICA/ EUROPE AMERICAS ASIA PAC FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 F
Slide 10: Strong Cash Generation
Strong Cash Generation 75% EBITDA RECONCILIATION 75.5^ (8.8) (1.4) (7.1) CONVERSION RATE (1.3) 56.9 CASHFLOW CONVERSION CONTINUED TO BE STRONG AND RETURNED TO PRE-COVID LEVELS WORKING CAPITAL INVESTMENT RATIO RETURNED TO HISTORICAL LEVELS AT 33 CENTS FOR EVERY DOLLAR OF INCREMENTAL REVENUE EBITDA Wo
Slide 11: Commitment to R&D and Technology Leadership
Commitment to R&D and Technology Leadership RESEARCH & DEVELOPMENT R&D SPEND ($m) 20 19.1 17.5 18 16.5 INVESTMENT IN R&D IN ALL 16 MARKET CONDITIONS 14 12.7 ABILITY TO TARGET R&D SPEND IN LINE R&D Spend ($m) 12 WITH DEMAND 10 DISCIPLINED STAGE GATE PRODUCT 8 DEVELOPMENT PROCESS 6 6.8% 7.3% 7.2% INCR
Slide 12: Balance Sheet
Balance Sheet $m 30 JUNE 2021 30 JUNE 2020 Cash 58.5 38.3 INTERIM FULLY-FRANKED DIVIDEND OF 1.0 CPS Receivables 58.2 43.5 Inventory 41.5 41.2 FINAL FULLY-FRANKED DIVIDEND OF 1.4 CPS Fixed assets 1 78.6 79.6 IN LINE WITH HISTORICAL Intangibles 2 92.9 83.6 30% PAYOUT RATIO Other assets / deferred tax
Slide 13: Industry & Market Update
Elev (Z) INDUSTRY & MARKET UPDATE
Slide 14: Our Market and the Impact of COVID-19
Our Market and the Impact of COVID-19 EVOLUTION OF COVID-19 GOVERNMENT MANDATED RESTRICTIONS ON IMDEX MINING REGIONS KEY OPPORTUNITIES Asia Pacific 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 • Acceleration of positive industry Australia - WA structural change Australia - QLD New Zealand • New efficient ways of w
Slide 15: Strong Industry Fundamentals
Strong Industry Fundamentals GLOBAL NONFERROUS EXPLORATION BUDGETS (US$BN) • Strong commodity prices driven by the positive outlook for a global recovery and increasing demand due to diminishing reserves • Demand for critical metals is expected to increase at a faster pace due to decarbonisation • C
Slide 16: Short-term Industry Constraints
Short-term Industry Constraints IMDEX ESTIMATED RIG UTILISATION % AT MARCH 2021 • Global rig utilisation has only just returned CORING (SURFACE & UNDERGROUND) AND RC RIGS to / exceeded pre-COVID-19 levels • Rig utilisation in Australia and USA is at near-capacity • Delivery times for new rigs has in
Slide 17: Business Overview
BUSINESS OVERVIEW
Slide 18: Strong Core Business in All Market Conditions
Strong Core Business in All Market Conditions A STRONG OUTPERFORMING ABILITY TO ESTABLISHED FINANCIAL INDUSTRY ACCELERATE GLOBAL CLIENT PLATFORM Au GROWTH ORGANIC GROWTH NETWORK Fe Cu Ag MARKET WORLD-CLASS R&D EXPERIENCED OPPORTUNITIES LEADING AND GEOSCIENCE AND DIVERSE TO ENHANCE TECHNOLOGIES CAPAB
Slide 19: Our Product Offering
Our Product Offering • Drilling Fluids Our Drilling Optimisation suite • Solids Removal Units Drilling of products enhance drilling • Remote Fluid Testing Optimisation productivity while improving SALES AND Technologies RENTAL ge ge Products safety and the impact on the • Rig Alignment Technologies
Slide 20: A Stronger Revenue Profile
A Stronger Revenue Profile SENSORS & SOFTWARE PRODUCTION EXPOSURE AMERICAS BROAD COMMODITY EXPOSURE 10 % 10 % 7% 20 % 27 % 25 % 8% 15 % 44 % 57 % 35 % 31 % 30 % 34 % 90 % 80 % 56 % 50 % 43 % 44 % 45 % 39 % FY17 FY21 FY17 FY21 FY17 FY21 FY17 FY21 SALES EXPLORATION & DEVELOPMENT AMERICAS EUROPE/ GOLD
Slide 21: Growth Opportunities
GROWTH OPPORTUNITIES
Slide 22: Four Compelling Growth Drivers
Four Compelling Growth Drivers 1 TECHNOLOGY LEADERSHIP Targeted R&D to win market share 2 EXTENSION INTO MINING PRODUCTION NEW PRODUCTS, NEW PRODUCTS, SENSORS AND NEW SENSORS AND Leverage into adjacent market where it is SOFTWARE SOFTWARE PRODUCTS / TECHNOLOGIES the same ore body and the same client
Slide 23: Technology Leadership
1 Technology Leadership MEASURING OUR PERFORMANCE 11% NEW TECHNOLOGIES PROVIDE GREATER VALUE TO CLIENTS AND GENERATE IMDEXHUB-IQ™ 3 - 5x MORE CONNECTED REVENUE UP 30.3% REVENUE IMDEX REVENUE 26% PER SENSOR AVERAGE RENTAL PER UNIT 61% OF TOP 100 CLIENTS ARE UP 3%* IMDEXHUB-IQ™ CONNECTED - UP FROM 58%
Slide 24: Extension into Mining Production
2 Extension into Mining Production MEASURING OUR PERFORMANCE Progressed IMDEX BLASTDOG™ testing at IMDEX trial site. Advanced robotics, autonomy and sensor development Resumed testing with JDA* partner in Queensland in late FY21 — technology in Chile mobilising to site for future trials Developed vi
Slide 25: IMDEX Integrated Solution Sales
3 IMDEX Integrated Solution Sales DELIVERING INTEGRATED IMDEX THE BREADTH OF OUR SOLUTIONS RATHER THAN INTEGRATED PRODUCT CASE STUDY: RESOURCE COMPANY INDIVIDUAL PRODUCTS OFFERING UNLOCKS VALUE IN NORTH AMERICA Optimised drilling and orebody solution increased the number of IMDEX products from 1 to
Slide 26: Complementary Acquisitions
4 Complementary Acquisitions WhatFOUR is rock knowledge? COMPONENTS ADVANCED REAL-TIME OF ROCK KNOWLEDGE OREBODY KNOWLEDGE TEXTURE DATA QUALITY DATA ANALYTICS REPRESENTIVITY DATA GRADE MINERALS VISUALISATION TIME SAVINGS DATA OPTIMISED DECISION LOCATION MODELLING MAKING UPSTREAM • Bolt on acquisitio
Slide 27: FY22 Focus Areas and Outlook
FY22 FOCUS AREAS AND OUTLOOK
Slide 28: FY22 Key Focus Areas and Operational Initiatives
FY22 Key Focus Areas and Operational Initiatives PROTECTING OUR JDAs* TO JOINTLY ENGAGE INCREASED R&D FOR CONNECTED PEOPLE RESOURCE COMPANIES SENSORS AND SOFTWARE AND DRILLING CLIENTS SOLUTIONS TO ACCELERATE GROWTH AND BUILD SCALE ENSURING CONTINUITY KEY ACCOUNT MANAGEMENT DIGITAL TRANSFORMATION 2.0
Slide 29: Positive Outlook
Positive Outlook THE LONG-TERM WE REMAIN WATCHFUL WE ARE POSITIONED CLIENTS ARE WELL OUTLOOK FOR MINING- AND READY TO TO BENEFIT FROM FUNDED AND FOCUSED TECH IS STRONG RESPOND TO RISKS INCREASING DEMAND ON SUSTAINING AND AND OPPORTUNITIES FOR REAL-TIME INCREASING ACTIVITY PRESENTED BY COVID-19 OREBO
Slide 30: Exploration & Development, Mining Production
EXPLORATION & DEVELOPMENT MINING PRODUCTION DRILLING OPTIMISATION PRODUCTS 1.33 ROCK KNOWLEDGE SENSORS ........ . REAL-TIME DATA & ANALYTICS
Slide 31: Thank you
Thank you We believe mining IMDEX has a strong core business that consistently outperforms industry growth. is essential to every Our investment in R&D ensures we have the best suite of products to maintain technical leadership and increase market share. aspect of modern life. Our global presence is
Slide 32: Appendices
APPENDICES IMDEX
Slide 33: Positioned to Deliver Attractive Returns
Positioned to Deliver Attractive Returns STRONG CORE A GROWTH POSITIVE INDUSTRY DRIVERS BUSINESS COMPANY Au • Resource companies are well funded • Outperforming market growth • Strong development pipeline of with increasing budgets Fe C • Strong financial platform technologies and software • Reserve
Slide 34: Company Overview
Company Overview CORPORATE INFORMATION LARGEST SHAREHOLDERS % AT 30 JUNE 2021 AT 30 JUNE 2021 ASX Code IMD Morgan Stanley & Co. Inc. 10.48 Share Price $2.04 L1 Capital Pty Ltd. 9.03 Issued Shares 396.5m FMR LLC 5.69 Market Capitalisation $808.8m Yarra Capital Management 4.46 SHARE PRICE SHARES BY %
Slide 35: Our Board of Directors
Our Board of Directors Committed to driving sustainable growth In February 2021 Ms Trace Arlaud was appointed Non-Executive Director Ms Arlaud has critical skills in mining engineering, geology and geophysics, together with broad international experience. Based in Colorado, USA, she will contribute
Slide 36: Executive Leadership Committee
Executive Leadership Committee Paul House Paul Evans Shaun Southwell Mathew Regan Michelle Carey CEO CFO & Company Chief Operating Chief of Corporate Chief of Product Secretary Officer Shared Services Management and Marketing Tim Price Dave Lawie Michael Tomasz Kiah Grafton Chief of Engineering Chie
Slide 37: Our Established Global Business
replace with Timaru Our Established Global Business STRONG MARKET PRESENCE ON 70% OF MINERAL RIGS GLOBALLY OPERATING IN ALL KEY MINING REGIONS OF Smithers - Canada MARKET CAP THE WORLD 494.4m East Sussex - UK Rastede - Germany Vancouver - Canada Timmins - Canada Amsterdam - Netherlands SALES IN 100+
Slide 38: Our Integrated Solutions
Our Integrated Solutions Drilling 1.33 Rock Optimisation Knowledge Products Sensors ........ . Real-time Data and Analytics Applicable across mining value chain EXPLORATION RESOURCE PRE-FEASIBILITY FRAGMENTATION MINING STOCK PILING PROCESSING DELINEATION AND BLENDING ....... UNDERGROUND OPPORTUNITY
Slide 39: The Optimised Drill Site Delivering Clients Greater Economic Value
The Optimised Drill Site Delivering Clients Greater Economic Value 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™ Sample IQ-LOGGER™ preparat
Slide 40: Our Collaborative Ecosystem
Our Collaborative Ecosystem HISTORICAL OUR BUSINESS CURRENT LINEAR MODEL IS TRIPARTITE RELATIONSHIP STRENGHTHENING RELATIONSHIP RESOURCE RESOURCE COMPANIES COMPANIES 100% of drilling 20% WE ARE BUILDING OUR REVENUE AND companies’ of our revenue currently comes EARNINGS BY ADDING revenue comes VALUE
Slide 41: Why Real-time Rock Knowledge is Important
Why Real-time Rock Knowledge is Important 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 It answers the questio
Slide 42: Our Integrated Rock Knowledge Engine
Au Our Integrated Rock Knowledge Engine Timely information for critical decision making QUALITY DATA REPRESENTIVITY TIME SAVINGS • Industry leading sensors • Cost effective methods • Actionable information allowing data to be in real-time • QA/QC at point of data collected for every • Driller operab
Slide 43: Sustainability
Sustainability Drilling Rock 1.33 INTERNALLY Optimisation EXTERNALLY Knowledge We are committed Productsto We have a wide range of solutions that enhance the Sensors increasing our ESG disclosure sustainability of client operations and meet the drive towards decarbonisation ........ . Real-time Data
Slide 44: IMDEX Employee Value Proposition
IMDEX Employee Value Proposition REMUNERATION BENEFITS WORKPLACE REFLECTING BUSINESS TANGIBLE AND INTANGIBLE AN ENVIRONMENT THAT REQUIREMENTS, STRATEGIC OFFERINGS THAT REPRESENT SUPPORTS ENGAGEMENT AND MILESTONES AND MARKET IMDEX’S BRAND AND SUPPORT PRODUCTIVITY PRACTICES WELLBEING AND DEVELOPMENT R
Slide 45: Decarbonisation Seismic Shift
Decarbonisation Seismic Shift DEFICIT SIZE OF DEFICIT SIZE OF DEFICIT AS A mix of changing consumer attitudes, ambitious EMERGES IN 2030E A % OF MARKET climate-focused regulations and technology evolution is about to change the landscape of Cobalt 2023 170kt 42% vehicle buying forever. While the aut