Imdex Ltd · ASX:IMD
Imdex — Shareholder Meeting (October 2023)
34 slides from Imdex's shareholder meeting presentation, Oct 19, 2023
Slide 1: 2023 AGM and 1Q24 Update - Chairman and CEO Presentation
IMDEX LIMITED | ABN 78 008 947 813 216 Balcatta Rd, Balcatta WA 6021 Australia PO Box 1262, Osborne Park WA 6916 Australia +61 8 9445 4010 imdexlimited.com 19 October 2023 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir / Madam, 2023 AGM and 1Q24 Up
Slide 2: 2023 Annual General Meeting
For personal use only 2023 Annual General Meeting ANTHONY WOOLES, CHAIRMAN PAUL HOUSE, CEO
Slide 3: Forward Looking Statements
Forward Looking Statements For personal use only 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,
Slide 4: Chairman's Address
For personal use only Chairman’s Address Image: Devico sensor technologies connect to DeviCloud 3
Slide 5: Agenda
CHAIRMAN’S ADDRESS For personal use only RESOLUTION & VOTING FY23 AGM CEO ADDRESS Agenda RESULTS OF MEETING CLOSE OF ANNUAL GENERAL MEETING REFRESHMENTS 4
Slide 6: Our Board of Directors
Our Board of Directors COMMITTED TO DRIVING SUSTAINABLE GROWTH For personal use only Mr Anthony Wooles Ms Sally-Anne Layman Mr Ivan Gustavino Ms Trace Arlaud Mr Uwa Airhiavbere Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Expertis
Slide 7: FY23 Financial Highlights
FY23 Financial Highlights For personal use only GROUP EBITDA EBITDA MARGIN NET NPAT FULL YEAR REVENUE NORMALISED 1 NORMALISED 1 DEBT 2 NORMALISED 1 DIVIDEND UP 20% UP 17% 30% $65m UP 13% 3.6cps Revenue on a constant Up 9% on a constant Normalised EBITDA Incl. Devico, Krux Normalised effective Final
Slide 8: FY23 Strategic Highlights
FY23 Strategic Highlights Core New Business Business For personal use only TECHNOLOGY SOLUTION COMPLEMENTARY EXTENSION INTO LEADERSHIP SELLING ACQUISITIONS MINING PRODUCTION Commercial launch of Growth in the Americas, Devico acquisition 11 installed BHS™ sites and 5 aiSwyft™ (digital soluti
Slide 9: FY23 ESG Highlights
FY23 ESG Highlights For personal use only PEOPLE INNOVATION ENVIRONMENT SOCIETY GOVERNANCE HSE engagement metric up 42% Embedded sustainability Established Environmental Procurement Policy ESG Committee formalised considerations in product Policy enhanced to support for under ARCC LTIFR of 0.42 impr
Slide 10: Resolutions & Voting
For personal use only Resolutions & Voting Image: Devico DeviGyro 9
Slide 11: Adjournment of Annual General Meeting for Polling
For personal use only Adjournment of Annual General Meeting for Polling 12
Slide 12: CEO Address
For personal use only CEO Address Image: Devico DeviDrill 13
Slide 13: Our purpose as a leading global mining-tech company
For personal use only Our purpose as a leading global mining-tech company is to efficiently and sustainably unlock the earth’s value… 14
Slide 14: Uniquely positioned to enable customers to find, define and mine orebodies
For personal use only We are uniquely positioned to enable customers to find, define and mine orebodies with precision, confidence and at speed. 15
Slide 15: Value Proposition
Value Proposition D R I L L I N G O P T I M I S AT I O N ROCK KNOWLEDGE PRODUCTS SENSORS For personal use only R E AL - T I M E D AT A AN D AN AL Y T I C S TIMELY INFORMATION FOR CRITICAL DECISION MAKING QUALITY DATA REPRESENTIVITY TIME SAVINGS • Industry leading sensors • Cost effective methods • A
Slide 16: FY23 Performance
For personal use only FY23 Performance Image: Devico sensor technologies connect to DeviCloud 17
Slide 17: Strong Financial Platform
31.0 Strong Financial Platform 411.4 5 YEAR REVENUE 5 YEAR EBITDA EBITDA MARGIN% 20.6 CAGR CAGR 13%* 24%1 For personal use only 122.61 8.5 21.5 22.9 28.8 30.7 29.81 218.5 243.7 237.7 264.4 341.8 390.8 42.4 52.3 54.4 75.5 104.9 114.11 $m $m % FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY2
Slide 18: Disciplined R&D Capital Allocation
Disciplined R&D Capital Allocation TOTAL R&D SPEND ( $m) EXPENSED V CAPITALISED R&D ( $m) For personal use only 32.5 29.5 22.6 ($m) FY23 FY22 18.2 16.5 R&D Expensed 27.4 26.2 8.5% 8.6% 7.6% 7.9% R&D Capitalised (software) 5.1 3.3 6.8% Total 32.5 29.5 FY19 FY20 FY21 FY22 FY23 • IMDEX is a growth busi
Slide 19: Balance Sheet
Balance Sheet $m (unless indicated otherwise) 30 JUN 2023 30 JUN 2022 Cash 58.1 36.4 Net debt $64.9m after funding Devico and For personal use only Receivables 90.1 73.3 investments in Datarock and Krux Inventory 68.6 57.1 Fixed Assets1 90.3 83.7 Interest rate coverage ratio of 14 times4 Intangibles
Slide 20: 1Q24 Update
For personal use only 1Q24 Update Image: IMDEX BLASTDOGTM 21
Slide 21: Encouraging Start to FY24
Encouraging Start to FY24 1Q REVENUE For personal use only 126.1* 18.2* 19%* 1Q24 KEY STATISTICS (Ex. Devico) 105.9 1Q24 REVENUE ON 1Q23 Av. sensors on hire down 9% on pcp (15% up at constant currency) 86.8 67.3 67.6 2%* ARPU up 4% on 1Q23 driven by survey stack upgrade cycle EX. DEVICO 1Q24 ON 1Q23
Slide 22: An Update Around Our Regions
An Update Around Our Regions NORTH AMERICA • Steady growth with demand for sensors, fluids and integrated solutions 1Q24 CONSOLIDATED REVENUE GROWTH UP 19%* • Juniors remain subdued in Canada, while activity with majors is increasing SOUTH AMERICA For personal use only • Steady growth in Chile and B
Slide 23: What Our Customers Are Saying
What Our Customers Are Saying For personal use only “As we move into 2Q24, the monthly growth we “There is no doubt that while the nearer term macro experienced since the beginning of this calendar year picture presents challenges, the longer-term demand is expected to continue...The need to repleni
Slide 24: Devico Update
For personal use only Devico Update Image: Devico DeviGyro 25
Slide 25: Complementary Acquisitions – Devico Rationale
Complementary Acquisitions – Devico Rationale For personal use only Complements Leadership in Market rock knowledge directional drilling – leadership sensor stack a fast-growing market in Europe World-class Revenue synergies Cost synergies R&D facility and through cross selling of approx
Slide 26: Devico Integration
Devico Integration DEVICO INTEGRATION UPDATE SINCE COMPLETION ON 28 FEBRUARY 2023 For personal use only Zero safety incidents Transition of sensor sales to rental model largely complete Focusing on people and integration for growth in FY25 and beyond Product integration plan completed Rete
Slide 27: Devico Performance Supports Investment Thesis
31.0 Devico Performance Supports Investment Thesis 7 MONTHS REVENUE ($m) Revenue in line with expectations at time of For personal use only completion despite subdued conditions in Canada Before Completion After Completion and Australia 38.8* DeviGyro sensor rentals within IMDEX network 35.9** up 25
Slide 28: Growth Strategy & Outlook
For personal use only Growth Strategy & Outlook Image: DeviGyro TM 29
Slide 29: Growth Strategy
Growth Strategy Core New Business Business For personal use only TECHNOLOGY TECHNOLOGY INTEGRATED SOLUTION COMPLEMENTARY COMPLEMENTARY EXTENSION INTO EXTENSION INTO LEADERSHIP LEADERSHIP SOLUTION SELLING SELLING ACQUISITIONS ACQUISITIONS MINING PRODUCTION MINING PRODUCTION Targeted R&D to win global
Slide 30: FY24 Focus Areas – Investing in Growth
FY24 Focus Areas – Investing in Growth For personal use only PROTECTING INVESTING IN OUR INVESTING INVESTING IN OUR AND DEVELOPING CORE BUSINESS IN DIGITAL NEW BUSINESS OUR PEOPLE GROWTH 2.0 GROWTH Capability development Devico integration Customer experience Additional installed sites and units on
Slide 31: Outlook
Outlook Near Term Medium to Longer Term For personal use only • Average 1Q24 sensors on hire up 8% from 4Q23 and remain • Revenue synergies from integration of Devico products down 9% on 1Q23 • Increasing revenue from higher margin sensors and software IMDEX • Integrated solution selling and directi
Slide 32: Why We Continue to Deliver
Why We Continue to Deliver A STRONG FINANCIAL OUTPERFORMING ABILITY TO ACCELERATE ESTABLISHED GLOBAL PLATFORM INDUSTRY GROWTH ORGANIC GROWTH CLIENT NETWORK For personal use only Strong history of EBITDA margin FY23 5-year revenue CAGR 13% Technology leadership An unparalleled global footprint, expan
Slide 33: Thanks to a Great Team
Thanks to a Great Team For personal use only Mr Paul House Mr Paul Evans Mr Shaun Southwell Dr Michelle Carey Mr Shane Plant Chief Executive Officer Chief Financial Officer Chief Operations Officer Chief of Strategy Chief Commercial Officer Mr John Hickey Mr Wayne Panther Ms Kiah Grafton Mr Michael
Slide 34: For personal use only
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