Slide 1: Full Year Results Presentation
2023 Full Year Results Presentation PAUL HOUSE, CEO PAUL EVANS, CFO
Slide 2: Forward Looking Statements
Forward Looking Statements THIS PRESENTATION MAY CONTAIN CERTAIN ‘FORWARD-LOOKING STATEMENTS’ AND RESULTS OR TRENDS TO DIFFER MATERIALLY, INCLUDING BUT NOT LIMITED TO PROJECTIONS PROVIDED BY OR ON BEHALF OF IMDEX LIMITED (IMDEX). FORWARD- RETENTION OF KEY BUSINESS RELATIONSHIPS, ENVIRONMENTAL IMPACT
Slide 3: Our purpose as a leading global mining-tech company
Our purpose as a leading global mining-tech company is to efficiently and sustainably unlock the earth’s value… 3
Slide 4: Uniquely positioned to enable customers to find, define and mine orebodies
We are uniquely positioned to enable customers to find, define and mine orebodies with precision, confidence and at speed. 4
Slide 5: Presentation Overview
FY23 HIGHLIGHTS FINANCIAL PERFORMANCE Presentation CORE GROWTH PERFORMANCE Overview NEW GROWTH PERFORMANCE OUTLOOK & FY24 FOCUS AREAS HOW IMDEX IS POSITIONED TO DELIVER 5
Slide 6: FY23 Highlights
FY23 Highlights Image: Devico sensor technologies connect to DeviCloud 6
Slide 7: FY23 Financial Highlights
FY23 Financial Highlights GROUP EBITDA EBITDA MARGIN NET NPAT FULL YEAR REVENUE NORMALISED 1 NORMALISED 1 DEBT 2 NORMALISED 1 DIVIDEND UP 20% UP 17% 30% $65m UP 13% 3.6cps Revenue on a constant Up 9% on a constant Normalised EBITDA Incl. Devico, Krux Normalised effective Final 2.1cps currency basis
Slide 8: FY23 Strategic Highlights
FY23 Strategic Highlights Core New Business Business TECHNOLOGY SOLUTION COMPLEMENTARY EXTENSION INTO LEADERSHIP SELLING ACQUISITIONS MINING PRODUCTION Commercial launch of Growth in the Americas, Devico acquisition 11 installed BHS™ sites and 5 aiSwyft™ (digital solutions) Africa and Asia P
Slide 9: FY23 ESG Highlights
FY23 ESG Highlights PEOPLE INNOVATION ENVIRONMENT SOCIETY GOVERNANCE HSE engagement metric up 42% Embedded sustainability Established Environmental Procurement Policy ESG Committee formalised considerations in product Policy enhanced to support for under ARCC LTIFR of 0.42 improved 45% stage gate de
Slide 10: FY23 Financial Performance
FY23 Financial Performance Image: Devico DeviGyro 10
Slide 11: Key Metrics
Key Metrics 20.1 $m (unless indicated otherwise) Revenue at $411.4m includes 4-month FY23 FY22 VAR % Revenue 411.4 341.8 20.3 Devico contribution EBITDA 100.5 102.0 (1.4) EBITDA Normalised1 122.6 104.9 16.9 Revenue up 14% on pcp excl. Devico EBITDA Margin % Normalised1 29.8% 30.7% (2.9) NPBT 54.6 62
Slide 12: Record Revenue
Record Revenue 411.4 20.6 5 YEAR REVENUE 2H23 REVENUE UPLIFT ON 2H22 INCREASING REVENUE FROM CAGR EXCLUDING DEVICO SENSORS & SOFTWARE 13%* 11% 212.6 40% 20.6 56% 218.5 243.7 237.7 264.4 341.8 390.8 124.3 140 167.8 174.0 198.8 192.0 60% 30% 44% 8% $m $m FY19 FY20 FY21 FY22 FY23 1H22 2H22 1H23 2H23 FY
Slide 13: Revenue Growth by Region
Revenue Growth by Region % of Group Growth Revenue Organic Growth 4 Months Devico 2023 12% 7% 46% Americas 19% 17% 3% Asia 29% Pacific 20% 17% 8% Europe 25% /Africa 25% 14% 6% Total Group 20% 13
Slide 14: EBITDA Performance
31.0 EBITDA Performance 5 YEAR EBITDA 2H23 EBITDA DOWN ON 2H22 EBITDA MARGIN% CAGR 122.61 EXCLUDING DEVICO 24%1 8.5 3% 1 59.81 8.5 21.5 22.9 28.8 30.7 29.81 33.1 42.4 53.4 62.81 51.31 42.4 52.3 54.4 75.5 104.9 114.11 $m $m % FY19 FY20 FY21 FY22 FY23 1H22 2H22 1H23 2H23 FY19 FY20 FY21 FY22 FY23 • Str
Slide 15: Strong Cash Generation
Strong Cash Generation EBITDA TO CASH FLOW FROM OPERATIONS 82% EBITDA to operating cashflow conversion ~$8m additional FY22 inventory build largely $m released Reported EBITDA Working Capital Tax Other1 Cashflow from Operations 1Other includes non-cash items including provisions, share of associates
Slide 16: Disciplined R&D Capital Allocation
Disciplined R&D Capital Allocation TOTAL R&D SPEND ( $m) EXPENSED V CAPITALISED R&D ( $m) 32.5 29.5 22.6 ($m) FY23 FY22 18.2 16.5 R&D Expensed 27.4 26.2 8.5% 8.6% 7.6% 7.9% R&D Capitalised (software) 5.1 3.3 6.8% Total 32.5 29.5 FY19 FY20 FY21 FY22 FY23 • IMDEX is a growth business committed to R&D
Slide 17: Balance Sheet
Balance Sheet $m (unless indicated otherwise) 30 JUN 2023 30 JUN 2022 Cash 58.1 36.4 Net debt $64.9m after funding Devico and Receivables 90.1 73.3 investments in Datarock and Krux Inventory 68.6 57.1 Fixed Assets1 90.3 83.7 Interest rate coverage ratio of 14 times4 Intangibles2 420.9 97.8 Investmen
Slide 18: Core Business Performance
Core Business Performance Image: Devico DeviDrill 18
Slide 19: Core Business Performance (excl. Devico)
Core Business Performance (excl. Devico) AVERAGE AVERAGE # ROCK # OF IMDEX TOP 250 SENSOR KNOWLEDGE HUB-IQ™ CLIENTS ARPU SENSORS ON HIRE CONNECTED WITH >3 CUSTOMERS PRODUCTS Up 7% FY23 in line with pcp 2H23 v 1H23 down 11% Up 10% 46% Up from 44% Percentages compare to FY22 Data excludes Devico S&P f
Slide 20: Core Business – Strategic Rationale for Devico Acquisition
Core Business – Strategic Rationale for Devico Acquisition Complements Leadership in Market rock knowledge directional drilling – leadership sensor stack a fast-growing market in Europe World-class Revenue synergies Cost synergies R&D facility and through cross selling of approx. $2m tea
Slide 21: Core Business – Devico Integration and Growth
Core Business – Devico Integration and Growth DEVICO INTEGRATION UPDATE SINCE DEVICO GROWTH UPDATE SINCE COMPLETION COMPLETION ON 28 FEBRUARY 2023 ON 28 FEBRUARY 2023 Zero safety incidents Retention of all key management personnel and Up 17% onboarding of all employees DeviGyro Reference Sensors
Slide 22: New Business Performance
New Business Performance Image: IMDEX BLASTDOGTM in Western Australia 22
Slide 23: IMDEX Mining Technologies Growth
IMDEX Mining Technologies Growth IMDEX IMDEX IMDEX BHS™ BOLT™ BLASTDOG™ Fluid product to stabilise Underground production Autonomous system for blast holes hole survey multi-parameter measurement CO M M ERCIAL PRO T O T Y PE CO M M ERCIAL PRO T O T Y PE of blast holes CO M M ERCIAL PRO T O T Y PE 1
Slide 24: Size of the BLASTDOG Opportunity
IMDEX Mining Technologies – Size of the BLASTDOGTM Opportunity BLASTDOG TM BUSINESS GROWTH PHASE 1 Why enter the Mining Production market? • Substantially larger than the exploration and development market and less subject to cyclical impact 1200 • Embedded into operations and supported by longer-te
Slide 25: IMDEX Digital Software and Analytics Strategy
IMDEX Digital Software and Analytics Strategy “Building upon our HUB-IQ platform we have invested in complementary software and analytics products that enhance this decision-making ecosystem for drillers and resource companies alike.” Dr Michelle Carey Chief of Strategy 25
Slide 26: IMDEX Digital Software & Analytics Growth
IMDEX Digital Software & Analytics Growth IMDEX Krux aiSwyft TM ioGAS TM Datarock Analytics Cloud-based mineral Leading exploratory Image analysis Advanced drilling interpretation AI system data analysis software software utilising AI analytics software and machine learning Processed spectra Migrati
Slide 27: Outlook and FY24 Focus Areas
Outlook and FY24 Focus Areas Image: IMDEX BLASTDOGTM 27
Slide 28: Core Business Outlook
Core Business Outlook Near Term Medium to Longer Term • Revenue synergies from integration of Devico products • Rock Knowledge Sensors on hire up 5% from 30 June 23 IMDEX • Increased revenue from sensors and software • Solution selling opportunities in North America and Africa IMDEX • Increased adop
Slide 29: FY24 Focus Areas – Investing in Growth
FY24 Focus Areas – Investing in Growth PROTECTING INVESTING IN OUR INVESTING INVESTING IN OUR AND DEVELOPING CORE BUSINESS IN DIGITAL NEW BUSINESS OUR PEOPLE GROWTH 2.0 GROWTH Capability development Devico integration Customer experience Additional installed sites and units on rent within IMT portfo
Slide 30: Why IMDEX Will Deliver
Why IMDEX Will Deliver A STRONG FINANCIAL OUTPERFORMING ABILITY TO ACCELERATE ESTABLISHED GLOBAL PLATFORM INDUSTRY GROWTH ORGANIC GROWTH CLIENT NETWORK Strong history of EBITDA margin 5-year revenue CAGR 13% Technology leadership An unparalleled global footprint, expansion present on 70% of sites 5-
Slide 31: Additional Notes & Definitions
Additional Notes & Definitions Image: DeviGyro TM 31
Slide 32: Additional Notes
Additional Notes Individually Significant Items FY23 $m Gross Tax Net Exceptional legal costs 11.1 (3.3) 7.8 Devico transaction and integration costs 10.6 (0.8) 9.8 Flexidrill settlement – residual cost 0.4 - 0.4 Total individually significant items 22.1 (4.1) 18.0 • Exceptional legal costs of $11.1
Slide 33: Appendices
Appendices Image: Caption 33
Slide 34: Corporate Calendar
Corporate Calendar KEY DATES • 28 – 1 September 2023 Virtual FY23 Roadshow • 19 October 2023 FY23 Annual General Meeting and 1Q24 Update • 2 November 2023 IMDEX Tech Deep Dive – Devico, Krux & Datarock 34
Slide 35: Company Overview at June 2023
Company Overview at 30 June 2023 Corporate Largest Shares by Shareholder Information Shareholders % Geography % Composition % ASX code IMD L1 Capital Pty Ltd 13.7 Australia 55.8 Institutional 84.6 Share Price $1.9 Fidelity Management & Research Company LLC 5.4 North America 21.6 Individual Investors
Slide 36: Strong Track Record as a Growth Company
Strong Track Record as a Growth Company S&P EXPLORATION REVENUE EBITDA NORMALISED 1 BUDGETS 411.4 122.6 ▲53% 12.4 ▲133% ▲289% 8.1 176.2 31.5 US$B $M $M CY17 CY22 FY17 FY23 FY17 FY23 • The drilling activity % uplift will be lower • Highlighting the continued investment • Highlighting the strength of
Slide 37: Our Executive Leadership
Our Executive Leadership Mr Paul House Mr Paul Evans Mr Shaun Southwell Dr Michelle Carey Mr Shane Plant Chief Executive Officer Chief Financial Officer Chief Operations Officer Chief Strategy Officer Chief Commercial Officer Mr John Hickey Mr Wayne Panther Ms Kiah Grafton Mr Michael Tomasz Dr Dave
Slide 38: Our Board of Directors
Our Board of Directors COMMITTED TO DRIVING SUSTAINABLE GROWTH Mr Anthony Wooles Ms Sally-Anne Layman Mr Ivan Gustavino Ms Trace Arlaud Mr Uwa Airhiavbere Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director 38
Slide 39: Our Values
Our Values Forever We go Together We’re curious. beyond. we thrive. global game changers. We believe in shaping the We are passionate about creating We are a global team of Our rich global experience and diverse future of mining through the positive customer experiences that diverse and talented peo
Slide 40: Disciplined Stage Gate Development Process
Disciplined Stage Gate Development Process Concept Engineering Pilot End of Life Prototype Production Concept proposal, technology Detailed design, build of Minor product changes, pilot options, draft business case functional prototypes, field production, full marketing and proof of concept for high
Slide 41: Our Mining-Tech Strategy
Our Mining-Tech Strategy CUSTOMER VALUE PROPOSITION D R I L L I N G O P T I M I S AT I O N ROCK KNOWLEDGE PRODUCTS SENSORS R E AL - T I M E D AT A AN D AN AL Y T I C S TIMELY INFORMATION FOR CRITICAL DECISION MAKING QUALITY DATA REPRESENTIVITY TIME SAVINGS • Industry leading sensors • Cost effective
Slide 42: Our Mining-Tech Strategy: Drilling Optimisation Products
Our Mining-Tech Strategy INTEGRATED SOLUTIONS DRILLING OPTIMISATION PRODUCTS CATEGORY CUSTOMER RANGE REVENUE BENEFIT MODEL SALES Our Drilling • Drilling Fluids AND PERFORMANCE • Solids Removal Units Optimisation suite BASED RENTAL • Remote Fluid Testing REVENUE of products enhance Technologies drill
Slide 43: Our Mining-Tech Strategy: Rock Knowledge Sensors
Our Mining-Tech Strategy INTEGRATED SOLUTIONS ROCK KNOWLEDGE SENSORS CATEGORY CUSTOMER RANGE REVENUE BENEFIT MODEL RECURRING Our best-in-class • Devico Reference Gyro Sensor RENTAL sensors originate • Downhole Survey Sensors REVENUE critical data on the • Core Orientation Sensors PRODUCT AS A four e
Slide 44: Our Mining-Tech Strategy: Real-Time Data & Analytics
Our Mining-Tech Strategy INTEGRATED SOLUTIONS REAL-TIME DATA & ANALYTICS CATEGORY CUSTOMER RANGE REVENUE BENEFIT MODEL LICENSING AND Our cloud platform • Devico Survey Data Management System (DeviCloud) SUBSCRIPTION and market leading • Krux Drilling Analytics Software REVENUE geoscience • Cloud-bas
Slide 45: IMDEX and Current Thematic
IMDEX and Current Thematic • Acquired Devico M&A and Growth • 40% interest in Krux Analytics 1 Opportunities • Increased interest in Datarock • Further expansion within mining production with IMT portfolio Minerals Market • Growth within exploration market expected to remain tempered during FY24 2 O