Slide 1: Half Year Results Presentation
2024 Half 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: unlock the earth's value
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 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
1H24 HIGHLIGHTS FINANCIAL PERFORMANCE Presentation Overview AROUND THE GROUNDS UPDATE GROWTH STRATEGY & DRIVERS OUTLOOK & FY24 FOCUS AREAS 5
Slide 6: 1H24 Highlights
1H24 Highlights Image: Devico sensor technologies connect to DeviCloud 6
Slide 7: 1H24 Financial Highlights
1H24 Financial Highlights $235 M $71 M 30% $32.8 M GROUP REVENUE EBIT DA NORM ALISED 1 EBIT DA M ARGIN NPATA2 UP 18% UP 13% NORM ALISED 1 NORM ALISED 1 Up 16% on a Up 14% on a Improving gross margins Normalised effective constant currency basis constant currency basis Strong cost management tax rate
Slide 8: 1H24 Strategic Highlights
1H24 Strategic Highlights Core New Business Business TECHNOLOGY SOLUTION DIGITAL IMT LEADERSHIP SELLING BUSINESS UNIT BUSINESS UNIT ✓ Completed Devico operational ✓ Top 250 clients with >3 products ✓ IMDEX HUB-IQ ✓ Strong trial pipeline integration 41%, up from 37% connected customers up 8%* ✓ 14 in
Slide 9: 1H24 ESG Highlights
1H24 ESG Highlights PEOPLE INNOVATION ENVIRONMENT SOCIETY GOVERNANCE LTIFR – zero Reduced weight On target to achieve Established support Welcomed TRIFR – 1.13 and length of OMNI-IQ 95% recyclable packaging framework for Community Tracey Horton AO running gear by 21% and for drilling optimisation En
Slide 10: 1H24 Financial Performance
1H24 Financial Performance Image: Devico DeviGyro 10
Slide 11: Key Metrics
Key Metrics $m (unless indicated otherwise) 1H24 1H23 VAR20.1% STRONG FINANCIAL PERFORMANCE FOR 1H24 Revenue – IMDEX 199.2 198.8 0.2% Revenue- Devico 36.15 - N/A Revenue 235.3 198.8 18.4% EBITDA Normalised1 71.0 62.8 13.1% Strong underlying financial performance benefiting from EBITDA Margin % Norma
Slide 12: Revenue Growth
Revenue Growth CONTINUING TO EXCEED INDUSTRY PERFORMANCE 1H24 REVENUE 5 YEAR 235.3 UP 18% v 1H23 Strong Devico revenue contribution, realised REVENUE CAGR 212.6 1H24 IMDEX 36.1 through cross selling benefits 3 1 REVENUE UP 13.1% 20.6 4%V 2H23 (EXC. DEVICO) Half-on-half growth in core business throug
Slide 13: Devico Revenue Performance
31.0 Devico Revenue Performance AHEAD OF EXPECTATIONS DESPITE SOFTER CANADIAN MARKET REVENUE UP 36.1 18% ON PCP A 17% increase in Directional Drilling revenue, 30.5 including expansion in USA, Africa, and Australia 19.2 A 22% increase in sensor revenue including the 16.6 benefits of cross-selling wi
Slide 14: Revenue Growth by Region
Revenue Growth by Region STRONG DEVICO PERFORMANCE IN THE USA AND EUROPE % of 1H24 % of 1H23 Growth Group Revenue Group Revenue IMDEX Contribution Devico Contribution 1H23 – 1H24 31% Consolidated Americas 50% 45% IMDEX Devico 31% 6% 25% -1% Consolidated Asia 26% 31% Pacific IMDEX Devico 9% -1% -10%
Slide 15: Revenue Growth by Product Mix
Revenue Growth by Product Mix INCREASING % OF HIGHER MARGIN RENTAL & SAAS REVENUE EX. DEVICO IMDEX GROUP Product margins expanding across 36% 40% 43% 42% 40% both fluids and sensors Increasing % of Sensors and SaaS revenue, up on 2H23, resulting in an uplift in gross margins 31%* 60% 57% 58% 34% 60%
Slide 16: EBITDA Performance
EBITDA Performance OPPORTUNITIES TO FURTHER INCREASE EBITDA MARGINS IN 2H24 5 YEAR EBIT DA CAGR 71.01 High quality business model demonstrating strong earnings growth 21.8%2 59.8 16.4 1H23 V 1H24 CORE BUSINESS MARGIN IMPACTED BY PRODUCT MIX AND FTE and resilience in all market conditions 8.5 INVESTM
Slide 17: Devico EBITDA Performance Supports Investment Rationale
31.0 Devico EBITDA Performance Supports Investment Rationale OPPORTUNITIES TO FURTHER INCREASE EBITDA MARGINS DURING 2H24 Leveraging 2H23 investment in Directional EBITDA UP 13% Drilling business – a fast-growing market 16.4 ON PCP 14.5 Leveraging transition from sensor sales to recurring rental mod
Slide 18: Strong Cash Generation
Strong Cash Generation EBITDA TO CASH FLOW FROM OPERATIONS 84% normalised EBITDA to operating cashflow conversion (97% pre-tax) Strong working capital discipline Inventory build due to COVID related supply chain challenges now reversed $m Norm alised EBITDA1 Working Capital Tax Other 2 Cashflow from
Slide 19: Robust Balance Sheet
Robust Balance Sheet $m (unless indicated otherwise) 31 DEC 2023 30 JUN 2023 ABILITY TO REINVEST IN BUSINESS AND GROWTH Cash 50.4 58.1 Receivables 83.8 90.1 Inventory 64.1 67.5 Strong free cashflow generation has enabled rapid Fixed assets 95.6 90.0 debt repayment Intangibles 419.1 425.3 Investment
Slide 20: Around the Grounds Update
Around the Grounds Update 20
Slide 21: An Update Around Our Regions Today
An Update Around OurAround Regions Our Today Regions ‘STEADY’ GROWTH NORTH • Major drillers and miners signaling expansion SOUTH • Steady activity with demand for Drilling Optimisation programs fluids and Field Services AMERICA AMERICA • Activity in Mexico impacted by political volatility • Opportun
Slide 22: Our Industry
Our Industry LONG-TERM FUNDAMENTALS REMAIN STRONG Supply gaps remain across the sector for the PROJECT DRILLING ACT IVIT Y BY COMMODIT Y NOV 21 – DEC 23 medium to long-term that will drive increased exploration activity in the future Future resources will increasingly be at depth and more complex In
Slide 23: Growth Strategy & Drivers
Growth Strategy & Drivers 23
Slide 24: Strong Track Record as a Growth Company
Strong Track Record as a Growth Company S&P EXPLORATION BUDGETS REVENUE EBITDA1 411.4 ▲56% ▲133% ▲289% 122.6 12.6 8.1 176.2 31.5 US$B $M $M CY17 CY23 FY17 FY23 FY17 FY23 • The drilling activity % uplift will be lower than 56% • Highlighting the continued investment in R&D • Highlighting the strength
Slide 25: Growth Strategy & Drivers to Deliver
Growth Strategy & Drivers to Deliver Core Business New Business TECHNOLOGY T ECHNOLOGY SOLUTION INT EGRAT ED DIGITAL COM PLEM ENTARY IMT EXT ENSION INT O LEADERSHIP LEADERSHIP SELLING SOLUT ION SELLING BUSINESS UNIT ACQUISIT IONS BUSINESS UNIT M INING Targeted R&D to maintain market Focusing on opti
Slide 26: Outlook and FY24 Focus Areas
Outlook and FY24 Focus Areas Image: IMDEX BLASTDOGTM 26
Slide 27: FY24 Focus Areas – Investing in Growth
FY24 Focus Areas – Investing in Growth PROTECTING INVESTING IN OUR INVESTING INVESTING IN OUR AND DEVELOPING CORE BUSINESS DIGITAL 2.0 NEW BUSINESS OUR PEOPLE GROWTH GROWTH Capability development Devico integration Systems that optimise Additional installed sites Safety culture Disciplined product c
Slide 28: Outlook
Outlook Near Term Medium to Longer Term Demand expected to remain steady for 2H24 Revenue synergies from integration of Devico sensors Major clients reporting ongoing or expanding exploration Increasing revenue from solution selling and directional budgets drilling S&P forecast CY24 to be in line wi
Slide 29: 1H24 Summary – Competitive advantage continues to deliver
1H24 Summary – Competitive advantage continues to deliver Record 1H revenue and EBITDA Outperforming Market leadership Resilient earnings profile market conditions Half-on-half EBITDA Unique end-to-end Ongoing investment in margin expansion Market share gains portfolio new growth business units Devi
Slide 30: Additional Notes & Definitions
Additional Notes & Definitions Image: DeviGyro TM 30
Slide 31: Additional Notes
Additional Notes 1H24 1H23 Normalised EBITDA 71.0 62.8 Gross Tax Net Gross Tax Net Impairment expense 1 (7.4) - (7.4) - - - Devico integration & organisation redesign costs 2 (6.7) 2.0 (4.7) - - - Exceptional legal costs 3 - - - (9.4) 3.0 (6.4) Total Individually Significant Items (14.1) 2.0 (12.1)
Slide 32: 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 • 5-year revenue CAGR 13.1% • Technology leadership • An unparalleled global footprint margin expansion • 5-year EBITDA C
Slide 33: Our Board of Directors
Our Board of Directors COMMITTED TO DRIVING SUSTAINABLE GROWTH Mr Anthony Wooles Ms Sally-Anne Layman Ms Tracey Horton AO Ms Trace Arlaud Mr Uwa Airhiavbere Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Expertise: Financial and Exp
Slide 34: IMDEX
IMDEX ‘CONFIDENTIAL: FOR THE CUSTOMER'S INTERNAL CONSIDERATION ONLY. THIS PRESENTATION HAS BEEN PREPARED BY IMDEX LIMITED ("THE COMPANY"). IT CONTAINS GENERAL BACKGROUND INFORMATION ABOUT THE COMPANY'S ACTIVITIES AND FORWARD-LOOKING STATEMENTS BASED ‘ON INFORMATION KNOWN TO DATE AND SUBJECT TO VARIO