Imdex : FY19 Results Webcast Script

19 August 2019

Company Announcements Office

ASX Limited

Exchange Centre

20 Bridge Street

SYDNEY NSW 2001

Dear Sir/Madam

IMDEX 2019 FULL YEAR RESULTS CONFERENCE CALL AND SLIDE SHOW

Please find attached the script from today's FY19 Results Conference Call and Slide Show.

Yours faithfully

Imdex Limited

Paul Evans

Company Secretary

CONFIDENTIAL - © Imdex Limited August 2019

IMDEX FY19 RESULTS PRESENTATION WEBCAST SCRIPT

BERNIE RIDGEWAY

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Welcome everyone. Thank you for joining us today - it is a pleasure to present our full year results for the 2019 financial year.

Before doing so, I would like to thank our team at IMDEX for their hard work and dedication throughout the year.

Joining me on the call today are:

• Paul Evans, our CFO and Company Secretary; and
• Paul House, our Chief Operating Officer.

The presentation will take approximately 15-20 minutes, and then we will turn the call over to the operator to moderate a question and answer session.

I will begin with a brief overview of our company and technologies, however like our previous presentations, we have included some additional information in the appendices.

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Starting now on slide 2. Who is IMDEX and what do we do?

We are a leading global Mining-Tech company - and our integrated solutions enable cost-effective operations across the whole mining value chain, from exploration to production.

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On Slide 3 we have included several achievements we are proud of and would like to call out:

• We have been outpacing industry growth, where revenue and EBITDA compound annual growth rates over the last 3 years have been 19% and 37% respectively. This reflects the investment we have made in technology and value-added services to our client base;
• Our balance sheet continues to strengthen, and we have a strong net cash position;
• We are on approximately 70% of drilling rigs globally, which provides excellent leverage to up- sell and provide a wider range of integrated solutions to our clients; and

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• We always have a rich pipeline of new technologies - FY19 was no exception. It is these new technologies and end-to-end solutions, which will drive sustainable revenue and earnings growth in the coming years.

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Moving now to slide 4, which illustrates what our technologies do.

The graphic depicts how our cloud-connected devices and drilling optimisation products improve the process of identifying and extracting mineral resources globally.

We help drilling companies and resource companies. We help them move fast, hit targets and make critical decisions to increase their efficiencies.

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Slide 5 provides a more detailed description about our range of technologies and what they do, however in the words of our Global Product Development Manager - Dr Michelle Carey, 'It's about drilling faster and smarter and knowing your rocks in real-time.'

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We have included slide 6 to emphasise that our portfolio of technologies is applicable to the whole mining value chain. At all stages - from exploration to production.

I'd like to draw your attention to three points on this slide:

1. IMDEXHUB-IQ™- connectivity is a key differentiator to ensure quality, chain of custody and data can be shared, analysed and acted upon in real-time.
2. Increasingly, our breadth of solutions across the complete mining value chain means we standalone in the marketplace for our range of integrated solutions. No other competitor can offer this breadth or depth.
3. Our solutions reduce the time and cost for the driller and increase efficiency, productivity and data insights for resource clients.

Applying our existing technology portfolio, engineering and product development capabilities to this broad spectrum, is a key part of our strategy for sustainable growth.

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As we announced in our release this morning, FY19 was a positive year with particularly strong first and fourth quarters. Slide 7 summarises the highlights:

• We achieved record revenue, which was up 12% on FY18 and an EBITDA increase of 23%;
• The Directors declared a fully-franked final dividend of 1.4 cents per share;
• Cash flow from operations was up 121%;
• We continued to strengthen our rental fleet with more sophisticated technologies that are cloud-enabled;
• We remain on track to commercialise our new drilling productivity technologies and achieved our first rentals of COREVIBE™ in early August 2019;
• Our Drill & Blast technologies are on track to produce revenue in 2H20;
• We continued our disciplined spend on engineering and product development and are pleased to report 43% of our applicable instruments are now cloud-enabled - a 25% increase on FY18;
• We continued to streamline our operations and, in conjunction with our internal digital transformation, have improved our cost base; and
• Importantly, we consolidated our improving safety performance.

I will now hand over to Paul Evans to cover the financials in more detail.

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PAUL EVANS

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Thanks Bernie.

I will begin on slide 9, which shows our key metrics for FY19.

As Bernie mentioned, we achieved record revenue of $243.7 million, which is a 12% increase on the previous year:

• EBITDA was up 23% to $52.3 million;
• We recorded a net profit after tax of $27.6 million, up 31% on the pcp;
• Earnings per share were 7.4 cents, up 30% on FY18;
• Our operating cash flow was $35.2 million, a 121% increase on the prior year; and
• Net assets increased by 18% to $220 million.

Given our strong cash generation, the Directors declared a fully-franked final dividend of 1.4 cents per share. This is on top of the interim dividend and brings the total payout for FY19 to 2.2 cents per share, which equates to a dividend payout ratio of 30%.

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Moving now to slide 10.

As you can see from the graph, FY19 extended our positive trend of growth.

The largest growth area was the Americas; however, all our regions increased their revenue from the previous year.

Approximately 46% of our FY19 revenue was generated in the Americas, 30% in Asia Pacific and the balance in Africa and Europe.

It is pleasing to note that our revenue growth is outpacing our rental fleet growth. This is due to market adoption of our integrated solutions and cloud-connected technologies, which generally generate higher average rental rates. As an example, our newer generation instruments generate 3 to 5 times the revenue of older generation instruments. It is this adoption of technology by the industry that has enabled IMDEX to deliver a revenue compound annual growth rate of 19% over the past 3 years.

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