Slide 1: 1H20 Results
IMDEX presentation For personal use only 1H20 Results CONFIDENTIAL – PROPERTY OF © IMDEX LIMITED 17 FEBRUARY 2020 BERNIE RIDGEWAY – MANAGING DIRECTOR PAUL EVANS – CHIEF FINANCIAL OFFICER & COMPANY SECRETARY PAUL HOUSE – CHIEF OPERATING OFFICER
Slide 2: A leading global Mining-Tech company
A leading global Mining-Tech company. For personal use only Enabling successful and cost-effective operations, from exploration to production. 2
Slide 3: IMDEX at a Glance
IMDEX at a Glance Building solid growth For personal use only CAGR 1H17 - 1H20 1H20 UNDERLYING STRONG NET CASH Outperforming EBITDA MARGIN POSITION market growth REVENUE 16% 22% $25.5m Exciting pipeline of AS AT 31 DEC 2019 UNDERLYING EBITDA new technologies 27.5% EXCLUDING LEASE LIABILITY OF $39.7M
Slide 4: What Our Technologies Do
What Our Technologies Do Enable successful cost-effective operations For personal use only We develop cloud-connected sensors and drilling optimisation products to improve the process of identifying and extracting mineral resources globally. Drilling Drilling 1.33 Accurate Accurate faster & smarter
Slide 5: IMDEX Technologies
IMDEX Technologies Applicable across the whole mining value chain For personal use only 1.33 Drilling Accurate faster & smarter subsurface data “faster It’s about drilling and smarter ........ . and knowing your rocks in real-time.” DR MICHELLE CAREY GENERAL MANAGER Receiving real-time IMDEX PRODUCT
Slide 6: IMDEX Integrated Solutions
IMDEX Integrated Solutions Strong competitive position - high barriers to entry For personal use only ASSAY GEOCHEMISTRY SATELLITE • Leading IMAGERY technologies GEOPHYSICS • Strong IP protection • Comprehensive SURVEY DATA 01 36 range of 07 SPATIAL end-to-end DATA connected solutions • Global prese
Slide 7: 1H20 Highlights
1H20 Highlights Strong performance and a positive outlook For personal use only Best half-yearly revenue On track to commercialise and underlying EBITDA up 12% new drilling productivity and mining technologies in 2H20 1H20 interim dividend of 1cps, IMDEXHUB-IQ™ connected up 25%, with a special divid
Slide 8: 1H20 Financial Review
1H20 FINANCIAL REVIEW For personal use only PAUL EVANS IMDEX CFO & COMPANY SECRETARY 8
Slide 9: Key Metrics
Key Metrics A strong financial platform For personal use only 1H20 ($m) 1H19 ($m) 1H20 ($m) 1H20 ($m) Including Applying Excluding pcp VAR ($m) VAR % AASB16 AASB 16 AASB16 comparative Revenue 127.9 - 127.9 125.0 2.9 2% EBITDA (excluding $3.6m gain on VES sale) 31.3 (3.2) 28.1 1 25.2 2.9 12% EBITDA m
Slide 10: Revenue
Revenue Strong half year performance For personal use only REVENUE PROFILE 16% CAGR 20% 125.0 127.9 118.7 113.8 50% 50% 104.7 80% 94.4 81.8 74.5 71.3 71.0 SALES EXPLORATION & 68.8 DEVELOPMENT RENTAL MINING • Increasing recurring rental revenue • New technologies provide additional value to clients a
Slide 11: Underlying EBITDA
Underlying EBITDA Driving operating leverage For personal use only 27.5% CAGR 1H20 28.1 UNDERLYING 27.1 EBITDA 25.2 UP 12% 22.3 ON PCP 20.5 18.0 13.5 10.9 • Improving gross margins 9.4 7.7 • Focus on streamlining operations and benefits from internal digital transformation 2H15 1H16 2H16 1H17 2H17 1
Slide 12: Reconciliation of underlying EBITDA
Reconciliation of underlying EBITDA Strong cash conversion For personal use only 28.1m (0.8m) (0.7m) 21.7m1 CASH FROM (4.6m) (0.3m) OPERATIONS UP 14% ON PCP • Working capital ratio of 30c for every incremental dollar of 1H20 revenue Underlying Working Other Tax Finance Cash from • Similar ratio expe
Slide 13: Balance Sheet
Balance Sheet Strong net cash position For personal use only $m 31 DEC 19 30 JUN 19 Cash 31.7 29.5 Receivables 53.1 54.7 Inventory 36.2 37.1 NET CASH Fixed assets 78.0 39.4 $25.5M3 1 Intangibles 59.2 59.5 UP 24% ON PCP Other assets / deferred tax 44.1 39.0 TOTAL ASSETS 302.3 259.2 Payables 25.7 25.3
Slide 14: ESG & Strategy
ESG & STRATEGY For personal use only PAUL HOUSE IMDEX COO 14
Slide 15: Committed to ESG Activities and Disclosure
Committed to ESG Activities and Disclosure A step-wise approach For personal use only IMDEX ESG Committee Key Objective: established December 2019 Preparation of a Sustainability Report in accordance – endorsed by Board with the Global Reporting Initiative Standards within 3 years. YEAR 1 YEAR 2 • I
Slide 16: Consistent Strategy
Consistent Strategy Compelling opportunities for sustainable growth For personal use only • Growing our core business by enhancing technical DRILLING PRODUCTIVITY TECHNOLOGIES IMDEX MINING leadership, technical TECHNOLOGIES NEW (INC COREVIBE™, (INC BLAST DOG™) integration and increasing XTRACTA™ & P
Slide 17: Ongoing R&D Core Business
Ongoing R&D Core Business Connecting and enhancing our traditional technologies For personal use only DRILLING IMDEX 58 OF TOP 100 PRODUCTS / TECHNOLOGIES NEW PRODUCTIVITY MINING CLIENTS ARE CONNECTED TO IMDEXHUB-IQ™ TECHNOLOGIES TECHNOLOGIES UP FROM 49 AT JUNE 19 MARKET ONGOING R&D EXISTING EXTENSI
Slide 18: Optimised Drill Site
Optimised Drill Site Providing clients with economic value For personal use only 3rd party software Satellite technology REPORTING EDUCATION & TRAINING DRILLING TECHNOLOGIES Daily Drill Report Online learning COREVIBE™ XTRACTA™ STRUCTURAL IN-FIELD GEOANALYSIS MAGHAMMER™ AMC BOS™ Sample IQ-LOGGER™ pr
Slide 19: Drilling Productivity Technologies
Drilling Productivity Technologies Product Extension For personal use only Client Benefits Progress Update DRILLING IMDEX COREVIBE™ • High frequency energy pulse • Full pipeline of client trials assisted drilling for wireline coring PRODUCTS / TECHNOLOGIES NEW PRODUCTIVITY MINING TECHNOLOGIES TECHNO
Slide 20: Mining Technologies
Mining Technologies Market Extension - Blast DOG™ For personal use only Optimising blasting outcomes based on high-resolution 3D IMDEX material models and material tracking in pit DRILLING PRODUCTS / TECHNOLOGIES NEW PRODUCTIVITY MINING TECHNOLOGIES TECHNOLOGIES ONGOING R&D MARKET ONGOING R&D EXISTI
Slide 21: Outlook & Summary
OUTLOOK & SUMMARY For personal use only BERNIE RIDGEWAY IMDEX MD 21
Slide 22: Positive Growth Outlook
Positive Growth Outlook A strong start to FY20 For personal use only Best half-yearly revenue and Resource companies – embracing December result innovation and new technologies – strong January start-up to lower cost, increase safety and achieve greater productivity Major and intermediate resource c
Slide 23: Summary
Summary Positioned to deliver attractive returns For personal use only Strong financial platform Compelling opportunities for delivering recurring revenue sustainable revenue and earnings Strong cash flow from operations growth – core business and Increasing shareholder returns market extension Outp
Slide 24: For personal use only
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Slide 25: Thank you
Thank you For personal use only THIS PRESENTATION HAS BEEN PREPARED BY IMDEX LIMITED (“THE COMPANY”). IT CONTAINS GENERAL FOR FURTHER INFORMATION BACKGROUND INFORMATION ABOUT THE COMPANY’S ACTIVITIES CURRENT AS AT THE DATE OF THE PRESENTATION. IT IS INFORMATION GIVEN IN SUMMARY FORM AND DOES NOT PUR
Slide 26: Appendices
For personal use only Appendices 26
Slide 27: Company Snapshot
Company Snapshot As at 31 December 2019 For personal use only SHARE REGISTER CORPORATE INFORMATION ANALYSIS OF TOP 50 SHAREHOLDERS ASX listed IMD Institutions 67.25% Share price $ 1.47 Employees, directors & company related parties 2.44% Issued shares m 388.1 Private shareholders 7.03% Market cap $m
Slide 28: IMDEX Board
IMDEX Board Committed to driving growth strategy For personal use only Mr Bernie Ridgeway Ms Sally-Anne Layman Mr Anthony Wooles Mr Ivan Gustavino Mr Kevin Dundo Managing Director Non-Executive Director Non-Executive Chairman Non-Executive Director Non-Executive Director
Slide 29: Executive Leadership Team
Executive Leadership Team Successful track record For personal use only Bernie Ridgeway Paul Evans Paul House Mathew Regan Michelle Carey Managing Director CFO & Company Chief Operating Chief Information and Global Manager – IMDEX Secretary Officer Transformation Officer Product Development Dave Law
Slide 30: Established Global Business
Established Global Business In all the key mining regions of the world For personal use only STRONG MARKET PRESENCE ON Smithers - Canada 70% OF MINERAL East Sussex - UK Rastede - Germany Vancouver - Canada Timmins - Canada Amsterdam - Netherlands DRILLING PROJECTS Salt Lake City - USA GLOBALLY San L
Slide 31: Clients & Industry Partners
Clients & Industry Partners Long-standing collaborative relationships For personal use only OUR CLIENTS Drilling contractors and resource companies globally INDUSTRY PARTNERS / DIRECTLY SUPPORTING LONG-STANDING THOUGHT LEADERSHIP MAJOR MINING COMPANIES DRILLING CLIENTS INDUSTRY PARTNERS Top 50 minin
Slide 32: ESG Achievements & Areas of Focus
ESG Achievements & Areas of Focus For personal use only SAFETY & QUALITY GOVERNANCE & ECONOMIC • Improving safety performance • Developed Conflict of Interest Policy and process for • Enhancing visible safety leadership disclosing and managing conflicts • Improving systems and compliance • Annual em
Slide 33: COREVIBE
COREVIBE™ Significant productivity gains for clients For personal use only TRADITIONAL DRILLING COREVIBE™ HIGH FREQUENCY 67 SHIFTS 47 SHIFTS PULSE ASSISTED DRILLING FOR UP TO 33% PRODUCTIVITY WIRELINE CORING IMPROVEMENT OPERATIONS 500m Minimises hole deviation with high penetration rates 1000m Reduc
Slide 34: XTRACTA
XTRACTA™ Significant benefits for clients For personal use only ALLOWS DRILLERS TO INSPECT OR CHANGE THE BIT No need to pull the rods to change bits EACH TIME THE CORE - the hole is always cased, maintaining hole integrity IS RETRIEVED Increase Reduce Risk Reduce Hole Drill Productivity of Injury De
Slide 35: MAGHAMMER
MAGHAMMER™ Significant productivity & safety benefits for clients For personal use only TRADITIONAL RC DRILLING MAGHAMMER™ ON DIAMOND DRILL RIG FLUID DRIVEN AIR POWERED WATER POWERED PERCUSSIVE Entire drill hole can be Significantly safer and zero dust generated DRILLING ON A completed with one rig
Slide 36: Drilling Productivity Technologies: Product extension investment rationale
Drilling Productivity Technologies Product extension investment rationale For personal use only Attractive MAGHAMMER™ Strong industry Unique addressable initially targeting demand technologies coring rig market: high speed pre-collar for greater with strong IP COREVIBE™ ~1800* drilling through deep
Slide 37: Mining Technologies - Blast DOG
Mining Technologies - Blast DOG™ Optimised blasting and material tracking 1 2 3 4 5 For personal use only Drilling Domaining Optimised Post-Blast Productivity & Analytics Blasting Metrics Processing Metrics PREDICTABLE FRAGMENTATION OF BLASTED GROUND CONTROLLED VIBRATION, DUST, FUMES AND HEAVE INCRE
Slide 38: Mining Technologies: Market extension investment rationale
Mining Technologies Market extension investment rationale For personal use only Substantial Strong demand Leverages Potential addressable for productivity existing to provide market, increases technology and substantial ~700 operating engineering additional mines expertise sustainable rental revenue