Intelligent Monitoring Group Limited · ASX:IMB
Intelligent Monitoring — Shareholder Meeting (October 2023)
39 slides from Intelligent Monitoring's shareholder meeting presentation, Oct 26, 2023
Slide 1: Annual General Meeting
Sydney For personal use only Annual General Meeting 26 October 2023 August 2021 ASX:IMB All Australasian Security Solution.
Slide 2: The IMG Board of Directors
THE IMG BOARD OF DIRECTORS For personal use only DENNISON HAMBLING PETER KENNAN ROB HILTON Jason Elks Managing Director Non-Executive Chairman Non-Executive Director Non-Executive Director Joined Jan 2020, Joined July 2022 Joined Dec 2022 Joined Jan 2020, Chairman Effective July 2021 Executive Direc
Slide 3: Formal Business
FORMAL BUSINESS 1 Financial Statements and Reports Resolution 1: Adoption of Remuneration Report For personal use only 2 3 Resolution 2: Re-election of Director – Robert Hilton 4 Resolution 3: Re-election of Director – Alexander Jason Elks 5 Resolution 4: Appointment of Auditor 6 Resolution 5: Appro
Slide 4: Financial Statements & Reports
For personal use only To receive and consider the annual financial report of the Company for the financial year ended 30 June 2023 with the declaration of the Directors, the Directors’ report, the Remuneration Report and the FINANCIAL STATEMENTS auditor’s report. & REPORTS 4 4
Slide 5: Resolution 1: Adoption of Remuneration Report
For personal use only To consider and, if thought fit, to pass the following resolution as a non-binding resolution: RESOLUTION 1 Adoption of Remuneration “That for the purposes of section 250R(2) of Report the Corporations Act and for all other purposes, approval is given for the adoption of the Re
Slide 6: Resolution 1 – Proxies Received
RESOLUTION 1 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 14,011,550 17,858 137,625,670 594,667 6
Slide 7: Resolution 2: Re-election of Director – Robert Hilton
For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: RESOLUTION 2 “That, for the purpose of clause 14.2 of the Re-election of Director – Constitution, Listing Rule 14.4 and for all other Robert Hilton purposes, Robert Hilton, a Director,
Slide 8: Resolution 2 – Proxies Received
RESOLUTION 2 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 159,832,791 72,287 0 594,667 8
Slide 9: Resolution 3: Re-election of Director – Alexander Jason Elks
For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: RESOLUTION 3 Re-election of Director – “That, for the purpose of clause 14.4 of the Alexander Jason Elks Constitution, Listing Rule 14.4 and for all other purposes, Alexander Jason Elks
Slide 10: Resolution 3 – Proxies Received
RESOLUTION 3 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 159,887,220 17,858 0 594,667 10
Slide 11: Resolution 4: Appointment of Auditor
For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: RESOLUTION 4 Appointment of Auditor “That for the purposes of section 327B(1) of the Corporations Act, and for all other purposes, BDO Audit Pty Ltd, having been nominated by a sharehol
Slide 12: Resolution 4 – Proxies Received
RESOLUTION 4 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 159,887,220 17,858 0 594,667 12
Slide 13: Resolution 5: Approval of 7.1A Mandate
To consider and, if thought fit, to pass the following resolution as a special resolution: For personal use only “That, for the purposes of Listing Rule 7.1A and for all other purposes, approval is given for the Company to issue up to that number of Equity Securities equal to RESOLUTION 5 10% of the
Slide 14: Resolution 5 – Proxies Received
RESOLUTION 5 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 159,887,220 17,858 0 594,667 14
Slide 15: Resolution 6: Approval of Financial Assistance
For personal use only To consider and, if thought fit, to pass the following resolution as a special resolution: RESOLUTION 6 “That, pursuant to and in accordance with section 260B(2) of the Corporations Act and for all other Approval of Financial purposes, approval is given for financial assistance
Slide 16: Resolution 6 – Proxies Received
RESOLUTION 6 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 159,784,720 17,858 0 697,167 16
Slide 17: Resolution 7: Performance Rights to Dennison Hambling
For personal use only To consider and, if thought fit, to pass the following as an ordinary resolution: RESOLUTION 7 “That, for the purposes of Listing Rule 10.11 and for all other purposes, approval be given for the Approval of grant of grant of 6,000,000 Performance Rights (with Performance Rights
Slide 18: Resolution 7 – Proxies Received
RESOLUTION 7 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 159,887,220 17,858 0 594,667 18
Slide 19: Resolution 8: Ratification of Warrants
For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: RESOLUTION 8 “That, for the purposes of Listing Rule 7.4 and for Ratification and approval of prior all other purposes, approval be given to ratify issue of warrants to certain the prio
Slide 20: Resolution 8 – Proxies Received
RESOLUTION 8 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 159,887,220 17,858 0 594,667 20
Slide 21: Resolution 9: Ratification of Shares to Institutional Investors
For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: RESOLUTION 9 “That, for the purposes of Listing Rule 7.4 and for Ratification and approval of prior all other purposes, approval be given to ratify issue of shares to certain the prior
Slide 22: Resolution 9 – Proxies Received
RESOLUTION 9 – PROXIES RECEIVED For Against Abstain Proxy’s Discretion For personal use only 147,822,260 17,858 0 594,667 22
Slide 23: For personal use only
For personal use only AGM Presentation 23 23
Slide 24: 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 25: IMG Timeline
IMG TIMELINE Wholesale turnaround of IMG’s performance (Jan 2020-August 2023) Jun’ 2019 Mar’ 2020 Dec’ 2020 Aug’ 2021 Jul’ 2022 For personal use only Negative Cost-Cutting Improved Improved Growth Earnings and lack Committee Performance Performance Acquisitions of integration Board appointed a Acqui
Slide 26: Company Transformed During 2023
COMPANY TRANSFORMED DURING 2023 Largest security monitoring company in Australasia For personal use only Customers EBITDA Market Cap Net Debt ND:EBITDA EV:EBITDA This time last year ~70,000 $5.9m Proforma $9.9m (SP = $23.5m (1–year >4.0x 5.7x $0.07cps) left) ~180,000 Target $29.8m (+25,000 fire FY23
Slide 27: What Is IMG?
WHAT IS IMG? Consolidated business is largest player in security monitoring services in Australasia For personal use only >180,000 >$6.5m >64% One of Australia’s largest security Combined recurring Revenue is subscription based with diversified “sticky” monitoring providers focused on both monthly r
Slide 28: IMG Businesses
IMG BUSINESSES Wholesale Guarding/Training For personal use only Direct Product 28
Slide 29: Focused Corporate Strategy
FOCUSED CORPORATE STRATEGY IMPROVE GROWTH For personal use only 3 TRAJECTORY 2 REDUCE DEBT IMG will implement two 1 DRIVE CASHFLOW key, capital light, growth IMG will focus cashflow strategies to revitalise (and utilise its tax losses*) ADT/IMG’s growth to drive Net Debt from 2.2x prospects. IMG wil
Slide 30: Clear Operating Strategy
CLEAR OPERATING STRATEGY SHIFT OF EMPHASIS FOR RE-COMMENCEMENT OF FOCUS ON COST BASE AND RESIDENTIAL COMMERCIAL SIMPLIFICATION OF For personal use only INSTALLATIONS INSTALLATIONS BUSINESS • Currently, the ADT business • In late 2020, ADT exited • Immediate cost synergies largely resells wired secur
Slide 31: Operating Strategy #1 – Residential: Do It Yourself
OPERATING STRATEGY #1 – RESIDENTIAL: DO IT YOURSELF Professionally Monitored Security Penetration of Homes and Businesses (North America versus Australasia) ➢ Australian penetration of monitored For personal use only alarms has essentially grown at the rate of physical housing formation ➢ The US exp
Slide 32: ADT Secure Home Essential DIY Solution
ADT SECURE HOME ESSENTIAL DIY SOLUTION For personal use only • ADT Secure Home Essential DIY Solution was launched on the 9th of October 2023 • Solution is available to the Residential Market in Australia DIY Package Composition Climax Panel x 1 • The DIY solution is the only alarm package that Moti
Slide 33: Operating Strategy #2 – Commercial: Bring ADT Back
OPERATING STRATEGY #2 – COMMERCIAL: BRING ADT BACK • IMG has rebooted the commercial installation and service business of ADT which is expected to For personal use only contribute significantly to monitoring and group revenue from FY24 onwards. • ADT currently has c. 4,000 large commercial customers
Slide 34: Operating Strategy #3: Simplification
OPERATING STRATEGY #3 : SIMPLIFICATION For personal use only OVERHEADS MONITORING SUPPLIER LOGISTICS AND SALES CENTERS AND CONSOLIDATION OPERATORS ▪ Monitoring centres will be ▪ Unwinding standard benchmarked across the ▪ IMG will work to harmonise corporate costs with JCI. its telco and ▪ With a ch
Slide 35: Investment Thesis
INVESTMENT THESIS: Industry leader with strong balance sheet and focused deleveraging strategy For personal use only Drive equity value and Deleverage Strong cashflow multiple balance sheet (+17.9m* in expansion (2.2x to <1.5x in FY24) (Target 10x 18 months) multiple business) * Expected free cashfl
Slide 36: Significant Progress in the First Two Months of ADT
SIGNIFICANT PROGRESS IN THE FIRST TWO MONTHS OF ADT IMG is executing in a focused fashion For personal use only Remedied First two months Acquired ~3,000 subsidized economic trading with ADT at Securely lines (NZ) model, launched DIY or ahead of budget monitoring system 36
Slide 37: Putting in Place Engine for FY24 and Beyond
PUTTING IN PLACE ENGINE FOR FY24 AND BEYOND Expanding ADT’s expertise pool quickly will lead to faster growth in FY24+ For personal use only ADT/IMG have hired and invested in several key new sales and technical staff both in Australia and NZ which is expected to set the business up for growth into
Slide 38: IMG: Industry Leader with Focused Cashflow Strategy
IMG: INDUSTRY LEADER WITH FOCUSED CASHFLOW STRATEGY For personal use only SEASONED GOOD BALANCE #1 INDEPENDENT MANAGEMENT TEAM SHEET, WITH MONITORING OPERATOR IMG team have EXCELLENT CASH significant integration GENERATION ~180,000 lines CAPABILITY experience ▪ IMG’s journey of cost out ▪ With $6.5m
Slide 39: For personal use only
Commercial Office: Unit 16 / 105A Vanessa St For personal use only Kingsgrove Sydney 2208 Phone: +61 1300 847 328 Intelligent Monitoring Group Limited ACN: 060 774 227 Registered Office: Suite 2, 1 Tully Road East Perth WA 6004 Authorised for release by the Board of Intelligent Monitoring Group Limi
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