Intelligent Monitoring Group Limited · ASX:IMB
Intelligent Monitoring — Investor Presentation (September 2021)
33 slides from Intelligent Monitoring's investor presentation, Sep 24, 2021
Slide 1: Recapitalisation Presentation
Recapitalisation Presentation 24 September 2021
Slide 2: Important Notices & Disclaimer
Important Notices & Disclaimer IMPORTANT: you must read the following before continuing. This presentation (Presentation) has been prepared by Threat Protect Australia Limited (ACN 060 774 227) (Company or Threat Protect) for the purpose of providing an overview of its current prospects and proposed
Slide 3: Executive Summary
i & THREAT PROTECT sisnirorine Executive Summary
Slide 4: Introduction
Introduction ▪ Australia’s largest independent security monitoring provider with ~75,000 connections, focused on wholesale distribution ▪ 95% of revenue is subscription based with diversified “sticky” customer base across government, commercial, residential and personal emergency response with an av
Slide 5: Recapitalisation and Balance Sheet Consolidation
Recapitalisation and Balance Sheet Consolidation Equity recapitalisation and amended debt terms will strengthen the balance sheet and unlock organic growth and further operational improvements. 1 ▪ The Company is conducting a fully underwritten placement (“Placement”), and subsequent accelerated ren
Slide 6: Investment Overview
i & THREAT PROTECT sisnirorine Investment Overview
Slide 7: Investment Proposition
Investment Proposition IMG has a strong underlying business together with a clear growth strategy. The Equity Raising and Debt Restructuring will strengthen the balance sheet and enable the Company to focus on delivering its strategy. Quality Business – Defensive Cash Flows Clear Growth Strategy – T
Slide 8: Clear Strategy
Clear Strategy To become the leading wholesale device monitoring provider in Australia. Organic Growth Strategy Unlock Significant Scale through Stabilise Core Operations Target 3x 50,000 by 2025 Selective M&A ▪ P&L and Cashflow now stabilised with ▪ The Company has identified a number of ▪ The comp
Slide 9: Experienced Executive Team
Experienced Executive Team Committed Executive Management team are well credentialled and in a position to lead the Company post recapitalisation. John Hallam Chief Executive Officer ▪ Joined Feb 2020, CEO from July 2021 ▪ Deep security monitoring experience across numerous Australian monitoring com
Slide 10: Business and Strategy Overview
Business and Strategy Overview 10
Slide 11: Business Overview
Business Overview IMG is Australia’s largest wholesale provider of security monitoring services with ~74,500 connections. ▪ IMG provide Security monitoring services through the following categories: Connection Type 1) Wholesale Monitoring ‒ Customer pays third party service provider (reseller) who i
Slide 12: Growth Model
Growth Model Organic growth of Wholesale lines leads to significant future profit uplift from conversions. ▪ IMG is focused on being the premier Wholesale Monitoring business in Australia. Organic Growth Plan: Target 3 x 50,000 by 2025 ▪ Working with approx. 30% of the approximately 2,000 active res
Slide 13: Growth Model
Growth Model Balance sheet restructure will unlock the flywheel for ongoing growth. Balance sheet Attractive Incremental Economics restructure will allow the Company to ▪ Incremental Gross Margin of approx. 80% accelerate growth Attract New flywheel Wholesale ▪ Additional operating staffing required
Slide 14: Financial Overview
Financial Overview Reset of balance sheet to reduce funding costs and provide financial strength to pursue growth opportunities. P&L Summary Run-Rate FY21 FY22 Q4 FY22 ▪ Defensible, recurring revenue from “sticky” customer base Revenue $m 25.5 26.0 27.0 ▪ Reduction in funding costs significantly imp
Slide 15: FY22 Business Plan and Q4 FY22 Run-Rate Bridge
FY22 Business Plan and Q4 FY22 Run-Rate Bridge Significant uplift in Q4 FY22 run-rate EBITDA is largely driven by direct monitoring, and monitoring devices contributions. 1. 1 Site consolidation reduces overhead cost 2. 2 Increased number of direct monitored lines acquired through wholesale conversi
Slide 16: Capital Structure
Capital Structure Recapitalisation to reduce gearing and provide a stable financial position to pursue identified growth opportunities. Current Pro-Forma1 Share price $ / share 0.020 0.005 Market Capitalisation $m 4.8 33.3 $32.0 million equity raise (via rights issue) @ $0.005 per share and notes co
Slide 17: Pro-forma Balance Sheet
Pro-forma Balance Sheet Reset of balance sheet to reduce funding costs and provide financial strength to pursue growth opportunities. Jun-21 ▪ Pro-forma balance sheet shows the impact of events based at 30 Jun-21 Jun-21 Pro-Forma balances: Cash and equivalents $m 1.8 9.3 ‒ Reduction of existing debt
Slide 18: Equity Raising
i & THREAT PROTECT sisnirorine Equity Raising 18
Slide 19: Equity Raising Overview
Equity Raising Overview Fully Underwritten Equity Raising of approximately $32.0 million. ▪ Fully underwritten Equity Raising of approximately $32.0 million (“Offer”), comprising: ‒ a placement of 36,143,441 new fully paid ordinary Shares in the Company to professional, sophisticated, and institutio
Slide 20: Equity Raising Timetable
Equity Raising Timetable Event Date Entity enters trading halt Before market, Wednesday 22 September 2021 Company conducts Placement Wednesday 22 and Thursday 23 September 2021 Announcement of Placement and Entitlement Offer, Lodge Appendix 3Bs with ASX, Lodge Prospectus with ASIC and ASX Before 10a
Slide 21: Appendix A – Key Risks
i & THREAT PROTECT sisnirorine Appendix A — Key Risks 21
Slide 22: Key Risks
Key Risks Company specific Upon implementation of the Entitlement Offer and the Placement, assuming all Entitlements are accepted, the Placement is fully subscribed and no other Shares are issued prior to the Record Date, the number of Shares in the Company will increase from 240,956,278 currently o
Slide 23: Key Risks
Key Risks Company specific The Company has and may continue to enter into debt facilities and agreements such as the debt arrangements with Ares, First Samuel and Black Crane, under which it will have obligations to make payments to the investors on the relevant due dates and repay amounts advanced
Slide 24: Key Risks
Key Risks Company specific There are a number of climate-related factors that may affect the operations and proposed activities of the Company. The climate change risks particularly attributable to the Company include: i. the emergence of new or expanded regulations associated with the transitioning
Slide 25: Key Risks
Key Risks Industry specific As with most businesses, the Company runs risk from a loss of clients. The Company as is common in this industry typically enjoys long customer relationships, and it has a diverse spread of customers. However, as with other industries, technology advancements or the Compa
Slide 26: Key Risks
Key Risks General General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company’s Economic activities, as well as on its ability to fund those activities. Share market conditions may affect the value of the Company’s quot
Slide 27: Key Risks
Key Risks General The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on its senior management and its key personnel. There can be no assurance given that there will be no detrimental impact on the Company if one or more of Rel
Slide 28: Key Risks
Key Risks General The Company uses its best endeavours to ensure compliance with the relevant state security legislation and also maintains a Grading of A1 – Licence Risks Australian Standard 2201.2 There can be no guarantee that the company is always able to maintain its licenses at this or any sta
Slide 29: Appendix B – Underwriting Agreement Terms
Appendix B – Underwriting Agreement Terms 29
Slide 30: Key Terms of the Underwriting Agreement
Key Terms of the Underwriting Agreement ▪ Morgans Corporate Limited (ACN 010 669 726) has been engaged by the Company to act as lead manager, bookrunner and underwriter (Underwriter) to the Entitlement Offer and Placement on an exclusive basis (Underwriting Agreement). ▪ In the execution of the Unde
Slide 31: Appendix C – International Offer Restrictions
Appendix C – International Offer Restrictions 31
Slide 32: International Offer Restrictions
International Offer Restrictions ▪ The Entitlement Offer is being extended to all Shareholders. This includes Shareholders with a registered address in Australia, New Zealand, Canada, Germany, Hong Kong, Isle of Man, Philippines, The United Republic of Tanzania, United Arab Emirates, United Kingdom
Slide 33: Intelligent Monitoring Group
Intelligent Monitoring Group Commercial Office: Unit 16 / 105A Vanessa St Kingsgrove Sydney 2208 Phone: +61 1300 847 328 Threat Protect Australia Limited ACN: 060774227 Registered Office: Level 1, 672 Murray Street West Perth 6005 Authorised for release by the Board of Threat Protect Australia Limit
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