Imdex Ltd · ASX:IMD
Imdex — Euroz Rottnest Forum 2018
27 slides from Imdex's conference presentation, Mar 15, 2018
Slide 1: Euroz Rottnest Forum Presentation ASX cover letter
For personal use only 15 March 2018 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Euroz Rottnest Forum Presentation Please find attached the Euroz Rottnest Forum Presentation to be presented later today. Yours faithfully Imdex Limited Paul E
Slide 2: IMDEX – Euroz Rottnest Conference
For personal use only IMDEX – Euroz Rottnest Conference Bernie Ridgeway – Managing Director Derek Loughlin – Global Business Development Director March| 2018
Slide 3: Leading global METS company and vision
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 4: Established Global Business
Established Global Business Operational Leverage For personal use only IMDEX presence – map does not include distributors Mining industry hot spots 3
Slide 5: Simple Scalable Structure, Leading Integrated Brands
Simple Scalable Structure Leading Integrated Brands For personal use only • Dominant within minerals industry – strong brands and market share • Rebrand to align with vision and focus on integrated IMDEX solutions • REFLEX − Downhole Navigation − Structural Geology − In-field Geoanalysis − Driller O
Slide 6: Leading Technologies
Leading Technologies IMDEX Solutions For personal use only Our Strengths • Global footprint with operational leverage • World-class R&D facilities and internal capabilities • Connectivity IMDEXHUB-IQTM • Solutions for exploration, development and mining Client Benefits • Chain of custody • Quality d
Slide 7: 1H18 Overview
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 8: 1H18 Financial Metrics
1H18 Financial Metrics ($millions) For personal use only $MILLIONS UNLESS INDICATED OTHERWISE 1H18 1H17 VAR VAR% Revenue 104.7 81.8 22.9 28% EBITDA 20.1 13.5 6.6 49% NPAT 10.6 (9.9)1 20.5 EPS (cents) 2.89 (3.42) 6.31 Operating cash flow (excluding financing costs) 2.4 9.8 (7.4) (76%) Net assets 173.
Slide 9: Revenue by Region
Revenue by Region ($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 8
Slide 10: EBITDA
EBITDA ($millions) For personal use only 20.1 18.0 13.5 10.9 9.4 7.9 7.7 6.2 1.2 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 • 1H18 EBITDA up 49% on pcp • Focused on cost discipline while driving sustainable revenue growth • EBITDA margin improvement expected in 2H18 through operational leverage •
Slide 11: Balance Sheet & Working Capital
Balance Sheet & Working Capital ($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 12: 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 13: 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 14: REFLEX Instruments on Hire
REFLEX Instruments on Hire (Number of units) For personal use only Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Jan-08 Oct-08 Jan-09 Oct-09 Jan-10 Oct-10 Jan-11 Oct-11 Jan-12 Oct-12 Jan-13 Oct-13 Jan-14 Oct-14 Jan-15 Oct-15 Jan-16 Oct-16 Jan-17 Oct-17 Jan-18 Jul-08 Jul-09 Ju
Slide 15: 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 16: The Industry Problem: Exploration
The Industry Problem Exploration For personal use only Increasing Demand for Metals Declining Discovery Rates Easy Deposits Already Found Doubles every 20-30 years Industry is making far fewer Especially in low sovereign risk More copper to be mined in major discoveries despite countries nex
Slide 17: The Industry Problem: Drilling
The Industry Problem Drilling For personal use only Fundamentally nothing has changed in drilling technology in 100s of years. Steel rods manually joined with threads. Usually all rods rotated from surface to generate cutting action at bottom of hole. Thus slow, expensive, injury-prone and inefficie
Slide 18: CoreVIBE & MagHAMMER
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 19: CoreVIBE Client benefits
CoreVIBETM Client benefits For personal use only
Slide 20: MagHAMMER Client benefits
MagHAMMERTM Client benefits For personal use only
Slide 21: 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 22: Appendices
For personal use only Appendices
Slide 23: 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 24: Board of Directors
Page Title Sub-Heading For personal use only Mr Anthony Wooles BCom, MBA (Finance) • Non-Executive Chairman • Appointed to the Board 1 July 2016 Mr Bernard Ridgeway B.Bus (ACCTG) ACA • Managing Director • Appointed to the Board 23 May 2000 Mr Kevin Dundo BCom, LLB • Non-Executive Director • Appointe
Slide 25: Global Leader
Global Leader Exploration & Mining For personal use only Substantial competitive advantage 24
Slide 26: 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 27: 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