Imdex : Chairman's Address to Shareholders

17 October 2019

Company Announcements Office

ASX Limited

Exchange Centre

20 Bridge Street

SYDNEY NSW 2001

Dear Sir/Madam

2019 ANNUAL GENERAL MEETING CHAIRMAN'S ADDRESS AND PRESENTATION

Please find attached a copy of the Chairman and Managing Director's presentations to be given at the 2019 Annual General Meeting of Imdex Limited (ASX: IMD) being held at 11.00am (WST) today.

Yours faithfully

Imdex Limited

Paul Evans

Company Secretary

CONFIDENTIAL - © Imdex Limited October 2019

2019 AGM Chairman's Address

2019 ANNUAL GENERAL MEETING, 17 OCTOBER 2019

Welcome

Good morning ladies and gentlemen - thank you for joining us today and welcome to IMDEX's Annual General Meeting for the 2019 financial year. I advise that in accordance with the company's Constitution a quorum is present and accordingly declare the meeting open.

I am Anthony Wooles and as Chairman of Imdex's Board of Directors, I will Chair today's meeting. I would like to introduce my fellow Directors, our Company Secretary and other attendees today:

• Our Managing Director Bernie Ridgeway;
• Non-ExecutiveDirectors Kevin Dundo, Sally-Anne Layman, Ivan Gustavino; and
• Paul Evans our Company Secretary.

Also present is:

• Mr Dave Andrews, signing Deloitte Audit Partner; and
• Mr Ryan White from HopgoodGanim Lawyers, the Company's solicitors.

FY19 Summary

Before reviewing the Financial Statements and Reports, I would like to thank my fellow Board members.

Our Board is a high-functioning team whose members always make themselves available and have all made significant contributions to the development, long-term growth and governance of our company. Each member has been tremendously responsive and participated strongly at all levels throughout FY19.

Similarly, I would like to commend our senior leadership team, its members have also remained very focussed on the development and execution of the strategic direction set for IMDEX with absolute commitment to delivering underlying earnings performance.

It is a pleasure working with them all and I look forward to further progress in FY20.

Moving now to the highlights of FY19 - of which there were many - together with the company's priorities for FY20.

During the year we generated a record revenue result of $243.7 million, which represents a 12% increase on FY18. EBITDA was $52.3 million - a strong uplift of 23% on the prior year.

Pleasingly, the company delivered an interim fully-franked dividend of 0.8 cents per share and a final fully-franked dividend of 1.4 cents per share.

More recently and post FY19, IMDEX announced a special fully-franked dividend of 2.0 cents per share, following the sale of the company's final remaining oil and gas asset Vaughn Energy Services, which had previously been written off. An additional $1.4 million was funded from IMDEX's existing cashflow.

The company has a robust balance sheet and as at 30 June 2019, IMDEX had a net cash position of $23.2 million - up 194% on the previous comparable period.

The increasing quality of IMDEX's technologies and rental fleet, which add considerable value to clients, contributed to the company's strong performance and its ability to outperform market conditions.

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Other notable achievements for FY19 included:

• Excellent progress with the development of IMDEX's new Drilling Productivity and Mining technologies;
• Greater operational efficiency improvement due to the internal digital transformation project and maturing of One IMDEX - the company's integrated value proposition for clients; and importantly;
• Continuing to consolidate and build on the significant safety improvements achieved in FY18.

During FY20 our Board and senior leadership team will continue to focus on delivering sustainable earnings growth for shareholders. Central elements of this strategy include: focussed organic growth of the company's core business; close attention to cost management; disciplined research and development; targeted technology acquisition; and the pursuit of growth across the mining value chain.

More specifically our priorities include:

• Growing our core business by enhancing our technical leadership through targeted R&D;
• Product extension by commercialising our new Drilling Productivity and Mining technologies;
• Further market extension into mining by commercialising BLAST DOG™;
• Consolidating the operational efficiencies, I mentioned earlier;
• Building on sustainable safety improvements to ultimately achieve zero harm; and
• Ensuring a smooth CEO transition following Bernie's retirement on 1 July 2020.

Bernie will provide further detail regarding these priorities, however, before I conclude the formal part of the meeting and invite him to speak, I would like to reiterate that IMDEX has a robust and clear growth strategy, which was collaboratively developed with the senior leadership team and endorsed by the Board.

Following Bernie's retirement this strategy will not change, and we will remain acutely focused on its execution. Similarly, the composition of the Board and the senior leadership will not change, apart from Bernie's departure.

Finally, my sincere thanks to Bernie and our talented leadership team for their strong performance during FY19.

Ladies and gentlemen, I would now like to review the Financial Statements and Reports followed by the consideration of 3 resolutions.

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IMDEX Annual General Meeting

2019 Financial Year

17 OCTOBER 2019	CONFIDENTIAL -
	PROPERTY OF
	© IMDEX LIMITED

A leading global Mining-Tech company.

Enabling successful and cost-effective operations, from exploration to production.

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