Slide 1: FY23 Half Year Results Presentation
FY23 Half Year Results Presentation PAUL HOUSE, CEO PAUL EVANS, CFO 13 FEBRUARY 2023
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 IMPACTS
Slide 3: IMDEX is a leading global mining-tech company
IMDEX is a leading global mining-tech company. We are uniquely positioned to enable clients to find, define and mine orebodies with precision, confidence and at speed. 3
Slide 4: Presentation Overview
PRESENTATION 1H23 FINANCIAL & OPERATIONAL HIGHLIGHTS OVERVIEW FINANCIAL PERFORMANCE INDUSTRY & MARKET UPDATE GROWTH STRATEGY DEVICO & KRUX ANALYTICS OVERVIEW FY23 FOCUS AREAS & OUTLOOK APPENDICES 4
Slide 5: 1H23 Financial Highlights
1H23 Financial Highlights 18% RECORD REVENUE 22% NORMALISED EBITDA 1 32% NORMALISED EBITDA MARGIN 1 Up 14% on a constant currency basis Up 11% on a constant currency basis 5 consecutive years of pcp growth Strong activity with an early January start-up (1H23 $62.8m v 1H22 $51.5m) (1H23 31.6% v 1H22
Slide 6: 1H23 Operational Highlights
1H23 Operational Highlights 1.56 LTIFR 6% 11.9 SUSTAINALYTICS LOW ROCK KNOWLEDGE IMPROVED FROM 1.71 SENSORS ON HIRE RISK ESG RATING^ Improved safety engagement as a leading Increasing software and IMDEX HUB-IQTM Released FY22 Sustainability Report in indicator connected revenue, currently 32% of tot
Slide 7: Financial Performance
Financial Performance 7
Slide 8: Key Metrics
Key Metrics $m (unless indicated otherwise) 1H23 1H22 VAR% Revenue 198.8 167.8 18.4 REVENUE EBITDA 53.4 51.5 3.7 Normalised EBITDA1 62.8 51.5 21.9 Normalised EBITDA Margin %1 31.6 30.7 0.9 127.7 110 124.3 140 167.8 174 198.8 NPBT 33.5 34.9 -3.9 NPAT 22.7 24.4 -6.9 $m EPS (cents) 5.7 6.2 -8.1 1H20 2H
Slide 9: Our Strong Financial Platform
Our Strong Financial Platform REVENUE AFRICA & EUROPE EBITDA EBITDA ASIA PACIFIC MARGIN (%) 13% AMERICAS 5 YEAR 198.8 24%++ 5 YEAR CAGR** 48.4 CAGR (Comparable S&P CAGR 9%**) 61.1 81.8 104.7 125 127.7 124.3 167.8 13.5+ 20.1+ 25.2+ 31.3 33.2 51.5^ 62.8^ 20.2+ 22.1+ 22.6+ 24.5 26.7^ 30.7^ 31.6^ 89.3 $
Slide 10: Our Stronger Revenue Profile
Our Stronger Revenue Profile SENSORS & AMERICAS BROAD COMMODITY SOFTWARE EXPOSURE ^ 10% 7% 42% 28% 24% 8% 15% 56% 36% 31% 30% 35% 58% 36% 45% 45% 50% 32% 44% 8% 1H17 1H23 1H17 1H23 1H17 1H23 SALES IMDEX HUB-IQ™ CONNECTED AMERICAS EUROPE/ GOLD IRON ORE SENSORS & SOFTWARE AFRICA RENTAL & SAAS APAC CRI
Slide 11: Cash Generation
Cash Generation EBITDA TO CASH FLOW FROM OPERATIONS 62.81 (9.6) 3.0 44.0 (12.2) $m EBITDA Working Tax Other Cash Flow Capital From Operations • Working capital investment returned to historical levels • Additional investment in inventory during FY22 to mitigate supply chain pressures is expected to
Slide 12: Our Strong Balance Sheet
Our Strong Balance Sheet 19%* $m (unless indicated otherwise) 31 DEC 2022 30 JUNE 2022 Cash 44.9 36.4 Receivables 69.9 73.3 NORMALISED RETURN ON EQUITY Inventory 62.9 57.1 Fixed Assets1 81.1 83.7 Intangibles 99.1 97.8 24%* Investment in an associate2 6.2 5.0 NORMALISED RETURN ON CAPITAL EMPLOYED Oth
Slide 13: Market & Industry Update
Market & Industry Update WAVAVAVAVAVAVAVAVAN DADA VATYV/\ WAVAVAVAVAVAVAVAVAVAVAN WWAVAVAVAVAVAVAVAWAVAVAVAN WWAVAVAVAVAVAVAV AVA" AVAVAVAN WVAVAVAVAVAVAVAVAN WWAVAVAVE WVAVAVAVAVAWAVA "\VAVAVAN WAVAVAVAVAY \WAVAV/
Slide 14: An Update Around Our Regions
An Update Around Our Regions 1H23 REVENUE GROWTH BY REGION NORTH AMERICA Ongoing or increasing drilling programs planned for CY23. Inflationary pressures easing with resource companies increasingly retendering drilling contracts due to increased rig and labour availability, Activity in Canada consis
Slide 15: Strong Industry Fundamentals
Strong Industry Fundamentals JUNIOR AND INTERMEDIATE FINANCINGS NO VEMBE R 2020 – DECE MB ER 2022 • Large and mid-cap resource companies all remain well-funded and committed to current programs • Mining equity raisings were up 29% YOY in Jan 23* • Commodity prices remain above levels to support furt
Slide 16: Growth Opportunities
wee PRIVY. EN II AN ADA WA a ies Growth Opportuni IMDEX
Slide 17: Drivers to Deliver
Drivers to Deliver Our Strategy NEW PRO DUCT S, NEW PRO DUCT S, NEW 1. TECHNOLOGY LEADERSHIP SENSO RS AND SENSO RS AND Targeted R&D to win market share SOFT W AR E SOFT W AR E PRODUCTS / TECHNOLOGIES 2. EXTENSION INTO MINING PRODUCTION Leverage into this adjacent market where it is the same ore body
Slide 18: Proposed Acquisition of Devico and Equity Raising
Proposed Acquisition of Devico and Equity Raising 18
Slide 19: Devico team at HQ in Norway
Devico team at HQ in Norway “ The IMDEX Board and executive committee rigorously assessed the Proposed Acquisition and its strategic and cultural alignment. We admire the accomplishments of Devico’s founders and leadership team and have been impressed by the quality of its employees, product offerin
Slide 20: Proposed Acquisition Summary
Proposed Acquisition Summary DEVICO OVERVIEW ACQUISITION OVERVIEW • IMDEX entered into a binding agreement to acquire 100% of the issued and outstanding shares of Devico for an enterprise value of ~$324m (NOK2,200m)1(the Proposed Acquisition) • Acquisition price implies a CY22 EV/EBITDA multiple of
Slide 21: Proposed Acquisition Summary (cont.)
Proposed Acquisition Summary (cont.) DEVICO OVERVIEW SYNERGIES • Revenue synergies expected to deliver value to IMDEX shareholders, through cross- selling and accelerated R&D development • Estimated cost efficiencies of ~$2m per annum (~7% of Devico CY22 EBITDA), arising from consolidation in office
Slide 22: Devico's Complementary Product Offering
Devico’s Complementary Product Offering Sensor Technologies Directional Drilling Technologies (~46% of CY22 Revenue1) (~54% of CY22 Revenue1) #2 supplier globally2 #1 supplier globally3 Market Market growth rate: 17%4 Market growth rate: 22%4 Relatively few players, with IMDEX the only larger player
Slide 23: Devico's Complementary Global Presence
Devico’s Complementary Global Presence IMDEX is a leading global mining technology company that enables drilling contractors and resource companies to safely find, define FY22 REVENUE and mine orebodies with confidence, precision and at speed. BY REGION Devico’s products allow mining companies to re
Slide 24: Devico's Exceptional Financial Profile
Devico’s Exceptional Financial Profile CY22 KEY PROVEN GROWTH AND ATTRACTIVE MARGINS FINANCIALS 5 STRONG TRACK RECORD OF 17% 33% GROWTH 3Y REVENUE CAG R 1 3Y EBIT DA CAG R 1 A$61m REVENUE BEST IN CLASS ~80% ~60% MARGINS G RO SS CY22 M ARG IN 2 SENSING TECHNOLOGIES G RO SS M ARG IN 2 C Y 2 2 D I R E
Slide 25: Acquisition aligned with growth strategy
Acquisition aligned with growth strategy 1. TECHNOLOGY LEADERSHIP Targeted R&D to win market share NEW PRO DUCT S, NEW PRO DUCT S, NEW Devico has world class R&D facilities in Trondheim, which have SENSO RS AND SENSO RS AND developed the market leading Directional Drilling Technologies, a SOFT W AR
Slide 26: Proposed Investment KRUX Analytics
Proposed Investment KRUX Analytics 26
Slide 27: Krux Analytics Investment
Krux Analytics Investment TRANSACTION OVERVIEW KRUX OVERVIEW • IMDEX has entered into a Heads of Agreement to acquire a • Krux develops market leading drilling analytics software, 40% interest in Krux Analytics for $6.5m cash1 focussing on the collection and analysis of exploration and production dr
Slide 28: Strategic Rationale
Strategic Rationale ESTABLISHING IMDEX AS THE #1 PROVIDER IN THE DRILLING ANALYTICS MARKET GLOBALLY • Enhance IMDEX’s drilling data origination and analysis capabilities • Accelerate the delivery of the Company’s next generation IMDEX Mobile software and pathway for its Measure While Drilling offeri
Slide 29: FY23 Focus Areas & Outlook
FY23 Focus Areas & Outlook KAYA AVAVAVAVAVAVAVAN TA AVANANAVAVANAN WAVAVAVAVAVAVAVAVAN TAVANAVAVAVAVAVAVAVAVAN IVAV/ VAVAVAVAVAVAVAVAVAVA VA" AVAVAVAVAVAVAVAVAVA VIAN) SA AAV AANAN WY AAAALA DA AVAVAVANAVANE / NAV AVAVANAN
Slide 30: FY23 Focus Areas
FY23 Focus Areas PROTECTING AND COMPLETING THE DEVELOPING OUR DEVICO TRANSACTION PEOPLE AND COMMENCING INTEGRATION E n h a n c e s a f e t y m a n a g e m e n t s ys t e m s and culture COMPLETING THE KRUX On g o i n g c a p a b i l i t y d e ve l o p m e n t o f o u r TRANSACTION teams INVESTING IN
Slide 31: Positive Outlook
Positive Outlook A STRONG START LONG-TERM GROWTH TO 2H23 DRIVERS ARE STRONG Record half year revenue, up 18% on 1H22 and a Diminishing reserves strong January start-up Demand heightened by decarbonisation targets Average sensors on hire for January up 2% on pcp Commodity prices remain above levels t
Slide 32: We believe mining is essential to every aspect of modern life
“We believe mining is essential to every aspect of modern life. Our opportunity, indeed our responsibility, is to change the global minerals industry forever.” – PAUL HOUSE, IMDEX CEO 32
Slide 33: Thank you.
Thank you. For further information, please contact Kym Clements Investor Relations Officer kym.clements@imdexlimited.com
Slide 34: Appendices
Appendices IMDEX BUSINESS OVERVIEW PROPOSED DEVICO ACQUISTION ADDITIONAL INFORMATION 34
Slide 35: Our Strong Core Business Model
Our Strong Core Business Model A STRONG FINANCIAL OUTPERFORMING ABILITY TO ESTABLISHED PLATFORM INDUSTRY GROWTH ACCELERATE GLOBAL CLIENT ORGANIC GROWTH NETWORK EBITDA margin expansion YOY 5-year revenue CAGR 13% Maintain technology leadership An unparalleled global footprint, present on 70% of sites
Slide 36: 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 Uwa Airhiavbere Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director 36
Slide 37: Executive Leadership Committee
Executive Leadership Committee Mr Paul House Mr Paul Evans Mr Shaun Southwell Ms Michelle Carey Mr Wayne Panther CEO CFO COO Chief of Product Management Chief Information Officer and Marketing Mr John Hickey Ms Kiah Grafton Mr Michael Tomasz Mr Dave Lawie CTO Chief of People IMDEX General Counsel Ch
Slide 38: Our Integrated Solutions
Our Integrated Solutions • Drilling Fluids Our Drilling Optimisation DRILLING suite of products enhance • Solids Removal Units OPTIMISATION SALES AND drilling productivity while • Remote Fluid Testing Technologies PERFORMANCE PRODUCTS improving safety and the • Rig Alignment Technologies BASED RENTA
Slide 39: IMDEX Mining Technologies – Customer Value Offering
IMDEX Mining Technologies – Customer Value Offering EXAMPLE DOWNSTREAM BENEFITS FOR IMPROVED RESOURCE STEWARDSHIP Drilling Planning Blasting Mining Stock Piling and Blending Processing INDUSTRY • Drill hole stability • Imprecise geology • Sub-optimal blasting • Fully capturing bulk mining • Optimal
Slide 40: Precision Mining and Our MINEPORTAL Software
Precision Mining and Our MINEPORTALTM Software GRANULAR DATA TO SUPPORT MWD VISUALISATION IN MINEPORTAL PRECISION MINING OVERLAID WITH AUTO BUILT BLOCK-MODEL 40
Slide 41: Our Value Proposition
Our Value Proposition TIMELY INFORMATION FOR CRITICAL DECISION MAKING QUALITY DATA REPRESENTIVITY TIME SAVINGS • Industry leading sensors • Cost effective methods • Actionable information allowing data to be collected in real-time • QA/QC at point of data for every metre drilled collection • Driller
Slide 42: ESG Inside and Outside of IMDEX
ESG Inside and Outside of IMDEX WE FOCUS ON ESG THROUGH TWO DISTINCT LENSES Inside IMDEX Outside IMDEX The practices that we can Leverage our research and control to ensure we are setting development capabilities to the right targets and enhance the sustainability of continuously improving for our o
Slide 43: Our ESG Objectives and Focus Areas
Our ESG Objectives and Focus Areas OUR MATERIAL IMDEX OBJECTIVES TOPICS LEAD Drive the Sustainability of Technology Solutions, Michelle Carey the Global Minerals Innovation Thought Leadership & Chief of Product Forever curious Industry Associations Management & Marketing Ensure a Safe and Health, Sa
Slide 44: IMDEX Values
IMDEX 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 p
Slide 45: Devico Proposed Transaction Additional Information
Devico Proposed Transaction Additional Information 45
Slide 46: Extended market presence in key mining regions globally
Proposed Devico Acquisition Extended market presence in key mining regions globally GLOBAL IDENTIFIED SUPER SITES 1 COMBINED PRESENCE ON SUPER SITES 1 Americas North America South America 43 13 22 / 43 12 / 18 5 new sites 5 new sites 51% penetration 67% penetration Europe Africa EMEA 8 / 13 12 /
Slide 47: Proposed Devico Acquisition increases exposure to key industry megatrends
Proposed Devico Acquisition increases IMDEX’s exposure to key industry megatrends KEY INDUSTRY TRENDS MARKET GROWTH OUTLOOK Global mining megatrends will drive increasing use of sophisticated technologies to unlock value from orebodies globally Increasing depth of deposits is expected to drive deman
Slide 48: Compelling Strategic Rationale
Compelling Strategic Rationale STRENGTHENS IMDEX CORE MINING-TECH LEADERSHIP • Through a combination of market, client, product and cloud technology leadership EXPANSION OF MINE SITE PRESENCE GLOBALLY • Including a strong presence in Europe, and greater alignment direct with resource companies in Di