Intelligent Monitoring Group Limited · ASX:IMB
Intelligent Monitoring — FY2024 Earnings Presentation
28 slides from Intelligent Monitoring's earnings presentation, Aug 30, 2024
Slide 1: Full Year Result Presentation August 2024
Sydney For personal use only Full Year Result Presentation August 2024 OUR BRANDS
Slide 2: Disclaimer
DISCLAIMER This investor presentation has been prepared by Intelligent Monitoring Group Limited (ACN 060 774 227) (IMG or the Company). It contains general information about the Company and its subsidiaries (Group) and the Group’s business as at the date of this presentation, the proposed acquisitio
Slide 3: FY24 Results Overview
FY24 RESULTS OVERVIEW • IMG delivered a normalized (ADT 12-month period) EBITDA of $34.6m. • Reported Adj EBITDA of $32.4m (versus guidance of $32-32.5m) For personal use only • Proforma 12 mth ADT result of $34.6m (versus guidance of $33.5-34m, and original guidance of $31m). • Adjusted Cash in ban
Slide 4: Agenda
AGENDA 1 About Intelligent Monitoring Group (IMG) For personal use only 2 Group Structure 3 Company Timeline 4 Group Vision 5 Group Financials 6 Group Strategy & Growth 7 FY24 Summary 8 FY25 Focus
Slide 5: About Intelligent Monitoring Group (IMG)
ABOUT INTELLIGENT MONITORING GROUP (IMG) We operate out of all major cities in Australasia - Adelaide, Brisbane, Customer base Melbourne, Sydney, Canberra, Perth, Launceston, Auckland, of over 210,000 Wellington, Hamilton, and Christchurch, with a presence in many other businesses, locations. For pe
Slide 6: Group Structure
GROUP STRUCTURE For personal use only Australia Australia New Zealand Australia Residential / SME Residential / SME / Wholesale Residential / SME /Commercial / ADT Commercial / ADT Monitoring business Care Care Australia – 81% of New Zealand Group EBITDA – 19% of Group EBITDA
Slide 7: Company Timeline
COMPANY TIMELINE Current team have delivered a successful business turnaround and are now focused on growth 4 3 Scale For personal use only 2 Move to growth ➢ Aiming to be a 1 Recovery & preeminent provider of electronic and rebase phase Business security monitoring Foundation & ➢ Acquisition / capi
Slide 8: Group Vision & Values
GROUP VISION & VALUES We will become the leader in Professional Security and Security-related services for Businesses, Homes, Families, and Individuals in Australasia. For personal use only We will do this by providing the best professional service at the best value, with the latest technology avail
Slide 9: Group Financials
For personal use only GROUP FINANCIALS
Slide 10: Profit & Loss Overview
PROFIT & LOSS OVERVIEW P&L Summary FY24 FY23 Strong and improving P&L Revenue (ADT 11 months) $m 121.8 24.3 Gross Profit (ADT 11 months) $m 56.9 10.0 ➢ Adj EBITDA is $32.4m, with 12mth For personal use only equivalent EBITDA at $34.6m. EBITDA Adjusted EBITDA* (ADT 11 months) $m 32.4* 3.6 Margin 26.7
Slide 11: EBITDA Overview
EBITDA OVERVIEW Reconciliation to Statutory accounts EBITDA Reconciliation For personal use only FY24 FY23 Reported EBITDA $m 19.7 0.1 Per Statutory accounts Impairment of receivable $m 1.9 0.3 Impairment of acquired receivable on review Impairment of assets $m 0.4 2.3 Impairment of acquired assets
Slide 12: Depreciation & Amortisation Overview
DEPRECIATION & AMORTISATION OVERVIEW Reconciliation to Statutory accounts Depreciation & Amortisation For personal use only reconciliation FY24 FY23 Depreciation & Amortisation in cost of $m 10.1 0.5 As reported services Depreciation and amortisation expense $m 7.6 6.0 As reported Total Depreciation
Slide 13: FY24 Balance Sheet
FY24 BALANCE SHEET Reset, stable balance sheet Balance Sheet Summary ready for refinancing FY24 FY23 For personal use only ➢ Finished FY24 with a strong cash position of $11.7m ($25.6m pre- Cash $m 25.6 5.3 settlement of ACG and AAG). Receivables $m 22.3 3.8 ➢ Gross Secured Debt of $80m, Adj Invento
Slide 14: Cashflow Overview
CASHFLOW OVERVIEW Continuing improvement in operating cashflows throughout FY24 and expected into FY25 Cashflow Summary For personal use only ➢ The business generates strong underlying operating FY24 FY23 cash flow - $20.8m pre-non-recurring costs (ADT 11 months) Operating $m 8.1 -3.1 Cashflows ➢ YT
Slide 15: Operating Cashflow Conversion
OPERATING CASHFLOW CONVERSION Cashflow Summary Business generates strong underlying operating FY24 FY23 cashflows Operating $m 8.1 -3.1 For personal use only Cashflows ➢ The business generates strong underlying current operating cash flow - $23.1m pre-non-recurring costs Less (ADT 11 months) Tax pai
Slide 16: Capex Overview
CAPEX OVERVIEW Capex elevated as prior contracts and 3G costs rolled through For personal use only ➢ Capex of $16.3m relating to prior committed systems, medical alarm Capex Summary products, and 3G to 4G upgrades ➢ General business capex of $2.2m as FY24 FY23 reinvestment in business (servers etc)
Slide 17: Group Strategy & Growth
For personal use only GROUP STRATEGY & GROWTH
Slide 18: Corporate Strategy
CORPORATE STRATEGY For personal use only IMPROVE GROWTH 3 TRAJECTORY 2 REDUCE DEBT IMG will implement three 1 DRIVE CASHFLOW key, capital light, growth strategies to revitalise IMG will focus cashflow ADT/IMG’s growth (and utilise its tax losses*) prospects. IMG will focus on improving to drive Net
Slide 19: Growth Areas: Commercial & Enterprise
GROWTH AREAS Commercial & Enterprise business security Goal is to return to $130m+ revenue business, from ~$40m For personal use only today. We are a technology business with a security focus. Current overview Industries we serve: Mining & Resources Banking & Finance Average monthly Retail Customer
Slide 20: Growth Areas: Residential Security
GROWTH AREAS Residential security Lower the upfront cost of security via new security systems, and For personal use only then improve monitoring value through use of video (grow market penetration from <5% currently) Current overview Reduced Since June 24, 20% installation time of New Customers from
Slide 21: Growth Areas: ADT Care
GROWTH AREAS ADT Care By using best-in-class monitoring and customer service, we can For personal use only help keep ageing Australians in their homes longer. Current overview Re-signing core partners MSD (NZ), Enhanced Invested in a PASA (SA, AU) customer service dedicated ADT and delivery, Care te
Slide 22: Growth Areas: Wholesale Monitoring
GROWTH AREAS Wholesale - Monitoring Support our wholesale customers with the latest monitoring For personal use only services and support them as they increasingly look to retire and transition from the industry. Current overview Proud to be the Streamlined our exclusive In FY24, we business focus t
Slide 23: FY24 Summary
FY24 SUMMARY ➢Corporately: June 2024 marked the end of a financial year in which IMG: For personal use only ➢Acquired ADT and separated ADT Aust & NZ ➢Transitioned our systems from JCI – introduced MYOB Advanced ➢Refinanced our debt and raised equity (twice) ➢Acquired Adeva and, with it brought back
Slide 24: In 2025 – Continue to Build
IN 2025 – CONTINUE TO BUILD In 2025 we will focus on: 1. Becoming the leading service provider in Australasia. We will do this For personal use only by focusing on our growing comparative advantages. • Growing National coverage of our people (96 technicians in Australia, 40 technicians in NZ). • Lea
Slide 25: Financial Overview
FINANCIAL OVERVIEW Significant change in financial Financials scale for IMG For personal use only 1H23 % Pro Forma Prior to ADT Change ▪ Business ends FY24 larger in all Share price $cps 0.127 ** 0.58 *** 333% material financial metrics Market Cap (fully $m 16.6 191.5 994% ▪ Proforma EBITDA of $40.2
Slide 26: Intelligent Monitoring Group
For personal use only INTELLIGENT MONITORING &
Slide 27: Appendix: Executive Team
For personal use only APPENDIX: EXECUTIVE TEAM
Slide 28: Senior Executive Team
SENIOR EXECUTIVE TEAM For personal use only Geoff Campbell-Brown Alison Kingdon Paul Jones General Manager ADT General Manager ADT General Manager Australia New Zealand IMS geoff.campbellbrown@adts alison.kingdon@adtsecurity. pjones@theimg.com.au ecurity.com.au co.nz Evan Comb General Manager Signat
Intelligent Monitoring Group — FY2024 Earnings Presentation on 6ix