Slide 1: IMDEX 1H18 Results Presentation
For personal use only IMDEX 1H18 Results Presentation Bernie Ridgeway – Managing Director Paul Evans – CFO & Company Secretary 19 February | 2018
Slide 2: Leading global mining equipment, technology and services company
For personal use only We are a leading global mining equipment, technology and services (METS) company. Our solutions improve the process of identifying and extracting what is below the earth’s surface for drilling contractors and resource companies – we let clients know where it is and what it is…n
Slide 3: 1H18 Overview: Financial & Operational
1H18 Overview Financial & Operational For personal use only Financial • Significant increase in revenue and earnings growth • Balance sheet and earnings positioned to drive organic and transformational growth within the mining value chain Operational • Robust activity within the global minerals indu
Slide 4: 1H18 Financial Metrics
1H18 Financial Metrics ($millions) For personal use only $MILLIONS UNLESS INDICATED OTHERWISE 1H18 1H17 VAR VAR% Revenue 104.7 81.8 22.9 28% EBITDA 20.1 13.5 6.6 49% NPAT 10.6 (9.9)1 20.5 EPS (cents) 2.89 (3.42) 6.31 Operating cash flow (excluding financing costs) 2.4 9.8 (7.4) (76%) Net assets 173.
Slide 5: Revenue by Region
Revenue by Region ($millions) For personal use only • Increasing revenue across all regions • Business benefited from global presence and regional expertise • Americas – region with highest revenue and potential for growth • Strong 2H18 anticipated based on current trend 5
Slide 6: EBITDA
EBITDA ($millions) For personal use only 20.1 18.0 13.5 10.9 9.4 7.9 7.7 6.2 1.2 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 • 1H18 EBITDA up 49% on pcp • Focused on cost discipline while driving sustainable revenue growth • EBITDA margin improvement expected in 2H18 through operational leverage •
Slide 7: Balance Sheet & Working Capital
Balance Sheet & Working Capital ($millions) For personal use only 31 DEC 17 30 JUN 17 Cash 12.7 19.4 Receivables 42.4 41.5 Inventory 36.0 29.9 Fixed assets 33.7 32.2 Intangibles 60.0 60.4 Other assets / deferred 28.9 27.5 tax TOTAL ASSETS 213.7 210.9 Payables 24.1 30.4 • Net cash of $6.8m ($12.3m: 3
Slide 8: Established Global Business
Established Global Business Operational Leverage For personal use only IMDEX presence – map does not include distributors Mining industry hot spots 8
Slide 9: Market Overview
Market Overview For personal use only • Continued broad-based recovery in the minerals sector globally • Commodity prices generally are now at the highest level in a little over three years • Major, intermediate and junior companies well-funded with increased budgets • Resource companies – continuin
Slide 10: REFLEX Instruments on Hire
REFLEX Instruments on Hire (Number of units) For personal use only May-08 May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 • As more rigs r
Slide 11: Strategy: Driving Sustainable Earnings Growth
Strategy Driving Sustainable Earnings Growth For personal use only • Growth of core business historically driven by cyclical upswing and the introduction of new technologies • Strategic positioning for sustainable earnings growth • FY18 investing in two-tiered strategy: • Organic – protect and grow
Slide 12: CoreVIBE & MagHAMMER: Option to acquire drilling productivity technologies
CoreVIBETM & MagHAMMERTM Option to acquire unique drilling productivity technologies For personal use only • Option agreement executed January 2018 • Extensive testing and due diligence conducted pre-signing – including IP protection • The transaction allows for further testing and market acceptance
Slide 13: CoreVIBE Client benefits
CoreVIBETM Client benefits For personal use only
Slide 14: MagHAMMER Client benefits
MagHAMMERTM Client benefits For personal use only
Slide 15: Summary & Outlook
Summary & Outlook For personal use only • Strong performance in 1H18 – strong 2H18 anticipated based on demand trends • Activity within major mining areas is robust – cyclical upswing continuing • Recovery initially driven by gold, now more broad-based • Major, intermediate and junior companies well
Slide 16: Appendices
For personal use only Appendices
Slide 17: Company Snapshot
Company Snapshot As at 29 December 2017 For personal use only Corporate Information Share register Analysis of top 50 shareholders at 29 December 2017 ASX listed IMD Institutions 70.37% Share price (29 December 2017) A$ 1.05 Employees, directors & company related parties 2.77% Issued shares m 367.5
Slide 18: Global Leader: Exploration & Mining
Global Leader Exploration & Mining For personal use only Substantial competitive advantage 18
Slide 19: Simple Scalable Structure
Simple Scalable Structure For personal use only • Dominant within minerals industry – strong brands and market share • REFLEX − Downhole Navigation − Structural Geology − In-field Geoanalysis − Driller Operable Geophysics • AMC − Drilling Optimisation 19
Slide 20: IMDEX Solution Sets
IMDEX Solution Sets For personal use only Our solution sets simplify the process of identifying and extracting what is below the earth’s surface for drilling contractors and resource companies. Together our technologies provide geological information in real-time supporting critical decision making
Slide 21: Leading Technologies
Leading Technologies Integrated IMDEX solutions For personal use only Our Strengths • World-class R&D facilities and internal capabilities • Connectivity IMDEXHUB-IQTM • Solutions for exploration, mining and development Client Benefits • Chain of custody • Quality data • Timeliness • Streamline proc
Slide 22: Gold & Copper Discoveries
Gold & Copper Discoveries S&P Global Market Intelligence For personal use only Despite increased expenditure, gold and copper discoveries are not keeping up with production – grades decreasing, deeper, more complex ore bodies, more difficult and longer lead times to develop Source: S&P Global Market
Slide 23: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Imdex Limited (“the Company”). It contains general 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 purport to be complete. Th