Imdex Ltd · ASX:IMD
Imdex — Shareholder Meeting (October 2021)
43 slides from Imdex's shareholder meeting presentation, Oct 7, 2021
Slide 1: Annual General Meeting 2021 Financial Year
IMDEX Annual General Meeting 2021 Financial Year 7 OCT 2021 ANTHONY WOOLES – CHAIRMAN PAUL HOUSE – CEO 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: Welcome — Introducing Our Board of Directors
Welcome — Introducing Our Board of Directors COMMITTED TO DRIVING SUSTAINABLE GROWTH Ms Sally-Anne Layman Mr Kevin Dundo Mr Anthony Wooles Mr Ivan Gustavino Ms Trace Arlaud Non-Executive Director Non-Executive Director Non-Executive Chairman Non-Executive Director Non-Executive Director Appointed Fe
Slide 4: Chairman's Address
CHAIRMAN'S ADDRESS ANTHONY WOOLES
Slide 5: FY21 AGM Agenda
FY21 AGM AGENDA CHAIRMAN’S RESOLUTIONS POLLING CEO CLOSE OF ADDRESS & VOTING ADDRESS ANNUAL GENERAL MEETING REFRESHMENTS
Slide 6: 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 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 (FY21 $31.7m v FY20
Slide 7: 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 8: FY22 Board Priorities
FY22 BOARD PRIORITIES SAFETY PERFORMANCE UNDERLYING BUSINESS PERFORMANCE AND GROWTH DISCIPLINED COST MANAGEMENT GOVERNANCE AND ENHANCING ESG DISCLOSURE RIGOROUS STRATEGY DEVELOPMENT, EXECUTION AND ACHIEVING PERFORMANCE MILESTONES
Slide 9: Resolutions & Voting
RESOLUTIONS & VOTING
Slide 10: Adjournment of Annual General Meeting for Polling
ADJOURNMENT OF ANNUAL GENERAL MEETING FOR POLLING
Slide 11: CEO Address
CEO ADDRESS Lu ” => fo) <= —_l = <= a.
Slide 12: 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 13: A Mining-Tech Company
A MINING-TECH COMPANY TECHNICAL LEADERSHIP TRULY GLOBAL DEVELOPING INTEGRATED SOLUTIONS CONSISTENT CAPITAL LIGHT BUILDING A HIGH- INVESTMENT IN PEOPLE LIGHT QUALITY REVENUE R&D TO DESIGN BASE WITH INCREASING PATENTED EBITDA MARGINS TECHNOLOGIES LIMITED CONTRACT RISK LIMITED COMMODITY RISK LIMITED GE
Slide 14: Our Integrated Solutions
Our Integrated Solutions • Drilling Fluids Our Drilling Optimisation suite • Solids Removal Units Drilling of products enhance drilling • Remote Fluid Testing SALES AND Optimisation productivity while improving Technologies RENTAL Products safety and reducing the • Rig Alignment Technologies REVENUE
Slide 15: 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 16: 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 17: FY21 Financial Summary
FY21 Financial Summary 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 FY20 FY21
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 GROWTH ORGANIC GROWTH NETWORK MARKET WORLD-CLASS R&D EXPERIENCED OPPORTUNITIES LEADING AND GEOSCIENCE AND DIVERSE TO ENHANCE TECHNOLOGIES CAPABILITIES LEAD
Slide 19: Growth Opportunities
GROWTH OPPORTUNITIES
Slide 20: Four 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, NEW SENSORS AND SENSORS AND Leverage into adjacent market where it is SOFTWARE SOFTWARE PRODUCTS / TECHNOLOGIES the same ore body and the same client
Slide 21: DataCloud Technology Acquisition - Overview
DataCloud Technology Acquisition - Overview ACQUISITION OVERVIEW MINEPORTAL • Asset purchase agreement to acquire the • A new-generation native cloud application that MinePortal software from Californian- enables geological data modelling and real-time based DataCloud International announced 8 3D vi
Slide 22: DataCloud Technology Acquisition – Strategic Fit
DataCloud Technology Acquisition – Strategic Fit TECHNOLOGY LEADERSHIP Targeted R&D to win market share EXTENSION INTO MINING PRODUCTION NEW PRODUCTS, NEW PRODUCTS, NEW SENSORS AND SENSORS AND Leverage into adjacent market where it is SOFTWARE SOFTWARE PRODUCTS / TECHNOLOGIES the same ore body and t
Slide 23: MinePortal Orebody Knowledge Ecosystem
MinePortal Orebody Knowledge Ecosystem FROM THE KEY MINEPORTAL MINE SITE ABILITIES CUSTOMER GEO + GEOLOGIC MODEL OPERATIONS DATA Geomet data and grade OPERATIONAL BLASTING Data Advanced control, geo models, RC Integration Analytics + ORE LOSS / DILUTION data, core and Reporting downstream 3D-Data MA
Slide 24: Sample MinePortal Models
Sample MinePortal Models HIGH SPATIAL FIDELITY IN THE CLOUD MWD* VISUALISATION IN MINEPORTAL MWD* VISUALISATION IN MINEPORTAL OVERLAID WITH AUTO BUILT BLOCK-MODEL * Measure While Drilling (MWD)
Slide 25: Accelerating IMDEX BLASTDOG
Accelerating IMDEX BLASTDOG™ IOG ANALYTICS & 3D OPTIMISED DRILLING MEASUREMENT VISUALISATION BLASTING DOWNSTREAM Safer autonomous operations IMDEX BHS™ IMDEX BLASTDOG™ IMDEXHUB-IQ™ Use the Rock Mitigate risk and negative Enhance productivity for Drill once, stabilising Holes are logged & MINEPORTAL
Slide 26: Industry & Market Update
INDUSTRY & MARKET UPDATE
Slide 27: 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 28: Strong Industry Fundamentals
Strong Industry Fundamentals • Clients are embracing innovation and new digital ways of PROJECT DRILLING ACTIVITY BY COMMODITY working JULY 2019- AUGUST 2021 • Strong commodity prices driven by the positive outlook for a global recovery and increasing demand due to diminishing reserves • Iron ore pr
Slide 29: Short-term Industry Constraints
Short-term Industry Constraints • Rig utilisation in key markets is The financial health of the exploration sector continues to grow from strength to strength, especially now that healthy at near-capacity cash positions have translated to money being invested in • Delivery times for new rigs the gro
Slide 30: FY22 Focus Areas and Outlook
FY22 FOCUS AREAS AND OUTLOOK
Slide 31: An Encouraging Start to FY22
An Encouraging Start to FY22 1Q22 REVENUE 41% 13% 86.8 ON 1Q21 ON 4Q21 42% at Constant Currency 9% at Constant Currency 67.3 67.6 61.4 STRONG INDUSTRY FUNDAMENTALS TEMPERED BY 54.6 61.1* SHORT-TERM CONSTRAINTS RECORD QUARTERLY REVENUE INCREASED INVESTMENT IN R&D DEVELOPMENT AND INTEGRATION OF MINEPO
Slide 32: 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 33: 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 ORE B
Slide 34: My Sincere Thanks to a Great Team
My Sincere Thanks to a Great Team FY21 was truly challenging, and ultimately a rewarding year... This would not be so, if it were not for the multitude of talented people around me. Their innovation, commitment, Paul Evans Shaun Southwell Mathew Regan Michelle Carey and intricate knowledge of CFO &
Slide 35: 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 36: Resolution Voting Results
Resolution Voting Results IMDE/
Slide 37: Exploration & Development / Mining Production
EXPLORATION & DEVELOPMENT MINING PRODUCTION DRILLING OPTIMISATION PRODUCTS ROCK KNOWLEDGE SENSORS REAL-TIME DATA & ANALYTICS Classification | Highly Restricted
Slide 38: Appendices
APPENDICES IMDEX
Slide 39: Key Metrics
Key Metrics $m (unless indicated otherwise) FY21 FY20 VAR% REVENUE Revenue 264.4 237.7 11.2 127.7 140.1 125.0 124.3 118.7 EBITDA1 75.5 54.4 38.8 110.0 EBITDA1 Margin % 28.5 22.9 24.5 NPBT 44.5 29.1 52.9 NPAT 31.7 21.8 45.5 EPS (cents) 8.01 5.64 42.0 1H19 2H19 1H20 2H20 1H21 2H21 Operating Cash Flow
Slide 40: FY21 Strong Cash Generation
FY21 Strong Cash Generation EBITDA 75% RECONCILIATION 75.5^ (8.8) (1.4) (7.1) CONVERSION RATE (1.3) 56.9 CASHFLOW CONVERSION CONTINUED TO BE STRONG AND RETURNED TO PRE-COVID LEVELS WORKING CAPITAL INVESTMENT RATIO RETURNED TO HISTORICAL LEVELS AT 33 CENTS FOR EVERY DOLLAR OF INCREMENTAL REVENUE EBIT
Slide 41: Commitment to R&D and Technology Leadership
Commitment to R&D and Technology Leadership RESEARCH & DEVELOPMENT R&D SPEND ($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 42: Balance Sheet
Balance Sheet $m 30 JUNE 2021 30 JUNE 2020 Cash 58.5 38.3 INTERIM FULLY-FRANKED Receivables 58.2 43.5 DIVIDEND OF 1.0 CPS 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 43: MinePortal Transaction Overview
MinePortal Transaction Overview • IMDEX acquired the assets and intellectual property relating to DISCIPLINED MinePortal and associated software TRANSACTION • The circa $20m transaction includes an initial cash payment of $8m STRUCTURE • The balance of the transaction is payable by the issue of IMDE