IMDEX Annual Report 2019 A LEADING GLOBAL MINING-TECH COMPANY IMDEX LIMITED ANNUAL REPORT 2019 IMDEX is a leading global Mining-Tech company, which enables successful and cost-effective operations from exploration to production. At IMDEX we develop cloud-connected devices and drilling optimisation products to improve the process of identifying and extracting mineral resources for drilling contractors and resource companies globally. Our unique end-to-end solutions for the mining value chain integrate our leading AMC and REFLEX brands. Together they enable clients to drill faster and smarter, obtain accurate subsurface data and receive critical information in real-time. Our vision is to be the leading provider of real-time subsurface intelligence solutions to the global minerals industry. 2 2 3 3 IMDEX LIMITED ANNUAL REPORT 2019 Contents 06 INVESTMENT PROPOSITION 07 2019 HIGHLIGHTS 07 KEY DATA AS AT 30 JUNE 2019 09 WHAT OUR TECHNOLOGIES DO 12 OUR INTEGRATED END-TO-END SOLUTIONS 15 ESTABLISHED GLOBAL BUSINESS 17 OPERATING ENVIRONMENT 18 FY19 FINANCIAL PERFORMANCE 20 SUMMARY OF FINANCIAL HIGHLIGHTS 21 BOARD OF DIRECTORS 22 CHAIRMAN’S REPORT 24 GOVERNANCE & RISK 27 SAFETY & QUALITY 30 MANAGING DIRECTOR’S REPORT 34 SENIOR LEADERSHIP TEAM 36 OUR PEOPLE 40 OBJECTIVE AND GROWTH STRATEGY 42 THE IMDEX WAY 43 COMPANY HISTORY ABOUT THIS REPORT This report is intended to provide IMDEX’s stakeholders with information about our company, for the financial year ended 30 June 2019. An online version will be available on our website at www.imdexlimited.com/investors. All reference to dollars within this report are Australian dollars, unless otherwise stated. Our Corporate Governance Statement, which is also available at www.imdexlimited.com/about-us/corporate-governance, discloses the extent to which IMDEX has complied with the Australian Securities Exchange Corporate Governance Council’s ‘Corporate Governance Principles & Recommendations – 3rd edition’. FY19 ANNUAL GENERAL MEETING Our Annual General Meeting will be held on 17 October 2019 at 11:00 am (AWST) at IMDEX’s Head Office. Members of our Board and senior leadership team will be available to discuss the company’s performance, operations and technologies. CORPORATE CALENDER 17 October 2019 FY19 Annual General Meeting 31 December 2019 FY20 Half Year End 17 February 2020 FY20 Half Year Results Presentation and Webcast 18-21 February 2020 FY20 Half Year Results Road Show 30 June 2020 FY20 Year End 17 August 2020 Release of FY20 Full Year Financial Results 18-21 August 2020 FY20 Full Year Results Road Show 15 October 2020 FY20 Annual General Meeting Note: If there are any changes to these dates, the Australian Securities Exchange will be notified. IMDEX LIMITED (IMDEX) ABN: 78 008 947 813 AUSTRALIAN SECURITIES EXCHANGE (ASX) LISTING DATE: 24 SEPTEMBER 1987 ASX CODE: IMD REGISTERED & HEAD OFFICE: 216 BALCATTA ROAD, BALCATTA WESTERN AUSTRALIA 6021 REGISTERED PO BOX: PO BOX 1262 OSBORNE PARK WESTERN AUSTRALIA 6916 T +61 (8) 9445 4010 IMDEX@IMDEXLIMITED.COM WWW.IMDEXLIMITED.COM 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. THE DISTRIBUTION OF THIS PRESENTATION IN JURISDICTIONS OUTSIDE AUSTRALIA MAY BE RESTRICTED BY LAW AND YOU SHOULD OBSERVE ANY SUCH RESTRICTIONS.THIS PRESENTATION IS NOT (AND NOTHING IN IT SHOULD BE CONSTRUED AS) AN OFFER, INVITATION, SOLICITATION OR RECOMMENDATION WITH RESPECT TO THE SUBSCRIPTION FOR, PURCHASE OR SALE OF ANY SECURITY IN ANY JURISDICTION, AND NEITHER THIS DOCUMENT NOR ANYTHING IN IT SHALL FORM THE BASIS OF ANY CONTRACT OR COMMITMENT. THE PRESENTATION IS NOT INTENDED TO BE RELIED UPON AS ADVICE TO INVESTORS OR POTENTIAL INVESTORS AND DOES NOT TAKE INTO ACCOUNT THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR NEEDS OF ANY PARTICULAR INVESTOR. THESE SHOULD BE CONSIDERED, WITH OR WITHOUT PROFESSIONAL ADVICE, WHEN DECIDING IF AN INVESTMENT IS APPROPRIATE.THE COMPANY HAS PREPARED THIS PRESENTATION BASED ON INFORMATION AVAILABLE TO IT, INCLUDING INFORMATION DERIVED FROM PUBLICLY AVAILABLE SOURCES THAT HAVE NOT BEEN INDEPENDENTLY VERIFIED. NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE AS TO THE FAIRNESS, ACCURACY, COMPLETENESS, CORRECTNESS OR RELIABILITY OF THE INFORMATION, OPINIONS AND CONCLUSIONS EXPRESSED.ANY STATEMENTS OR ASSUMPTIONS IN THIS PRESENTATION AS TO FUTURE MATTERS MAY PROVE TO BE INCORRECT AND DIFFERENCES MAY BE MATERIAL. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NONE OF THE COMPANY, ITS DIRECTORS, EMPLOYEES OR AGENTS, NOR ANY OTHER PERSON ACCEPTS ANY LIABILITY, INCLUDING, WITHOUT LIMITATION, ANY LIABILITY ARISING FROM FAULT OR NEGLIGENCE ON THE PART OF ANY OF THEM OR ANY OTHER PERSON, FOR ANY LOSS ARISING FROM THE USE OF THIS PRESENTATION OR ITS CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH IT. 4 5 IMDEX LIMITED ANNUAL REPORT 2019 INVESTMENT PROPOSITION • Strong financial platform – 3-year revenue and EBITDA CAGR of 19% and 37% respectively; improving recurring revenue and and cash flow from operations • Outperforming market growth – market leading patent protected technologies • World-class R&D capabilities – exciting technology development pipeline • Compelling opportunities for sustainable revenue and earnings growth – core business and market extension • Established global company – ability to leverage extensive client network and achieve economies of scale • Strong leadership team – successful track record of developing and commercialising technologies in all market conditions • Market capitalisation of $494.4m as at 30 June 2019 – included in ASX 300 2019 Highlights Record revenue of $243.7m – up 12% on FY18 ($218.5m) EBITDA of $52.3m – up 23% on FY18 ($42.4m) A fully-franked final dividend of 1.4 cents per share Strengthened quality of rental fleet Invested in ongoing core R&D – 43% of applicable instruments are cloud-enabled, up 25% on FY18 On track to commercialise new drilling productivity and Drill & Blast technologies in 2H20 – achieved first COREVIBE™ units on rent in 1Q20 Robust balance sheet with a strong net cash position – up 194% KEY DATA AS AT 30 JUNE 2019 30 JUN 19 30 JUN 18 243.7m 52.3m 21% 27.6m 7.4 35.2m 220.0m 23.2m 494.4m 378.8m 2.52 511 Bankwest 218.5m 42.4m 19% 21.1m 5.7 15.9m 186.1m 7.9m 458.4m 369.7m 2.57 529 Bankwest Hopgoodganim Hopgoodganim Deloitte Touche Tohmatsu Deloitte Touche Tohmatsu Computershare Computershare $m Revenue EBITDA EBITDA margin % NPAT EPS (cents) Operating Cash Flow Net Assets Net Cash Market Capitalisation Shares on Issue LTIFR (per million hours worked) Number of Employees Banking Institutions Legal Advisors Auditors Share Registry 6 6 7 IMDEX LIMITED ANNUAL REPORT 2019 What Our Technologies Do ENABLE SUCCESSFUL COST-EFFECTIVE OPERATIONS Our unique end-to-end solutions for the mining value chain integrate IMDEX’s leading AMC and REFLEX brands. Together they enable clients to drill faster and smarter, obtain accurate subsurface data and receive critical information in real-time. • Drilling productivity and rig alignment technologies • Automated and remote drilling fluid testing technologies • Data collection and paperless reporting software • Downhole survey sensors • Core orientation and gamma • logging technologies In-field sampling and analysis technologies Drilling Faster & Smarter Accurate Subsurface Data Receiving Real-Time Information • Secure cloud-based services • Real-time subsurface visualisation • Interpretive software – geological data 9 “We develop cloud-connected devices and drilling optimisation products to improve the process of identifying and extracting mineral resources globally. It’s about drilling faster and smarter and knowing your rocks in real-time.” DR MICHELLE CAREY GENERAL MANAGER IMDEX PRODUCT DEVELOPMENT LEADING BRANDS REFLEX technologies include downhole instrumentation, data management and analytical software for geological modelling. These market leading technologies – recognised for their ease-of-use and accuracy – are complemented by unrivalled expertise in geo-scientific data analysis and interpretation. For further information, please visit www.reflexnow.com AMC redefines the way drilling fluids, equipment, technologies and software are used to optimise drilling programs – it strives to maximise productivity while enhancing safety and sustainability. AMC is also growing its presence within the horizontal directional drilling, waterwell and civil construction sectors. For further information, please visit www.amcmud.com 8 8 IMDEX LIMITED ANNUAL REPORT 2019 OUR TECHNOLOGY PORTFOLIO & DATA ECOSYSTEM Our technology portfolio is applicable across the whole mining value chain – from exploration to production. Traditionally we have focussed on the exploration and development market, however, we are leveraging our technologies and capabilities for further market extension in the larger adjacent mining market. APPLICABLE ACROSS THE WHOLE MINING VALUE CHAIN Drilling Faster & Smarter Accurate Subsurface Data Exploration Discovery Definition Planning Fragmentation Extraction Receiving Real-Time Information GRAPHIC SOURCE: CRC ORE EXPLORATION & DEVELOPMENT MINING & PRODUCTION 10 11 11 IMDEX LIMITED ANNUAL REPORT 2019 Our Integrated End-To-End Solutions Downhole Navigation Structural Geology Drilling Optimisation In-Field Geoanalysis Driller Operable Geophysics Strengthening the quality of our rental fleet. During FY19 we continued to connect our traditional instrumentation to IMDEXHUB-IQ™ to strengthen the quality of our rental fleet and provide additional value to clients. All our new devices and technologies are IMDEXHUB-IQ™-enabled. Central to our solutions is IMDEXHUB-IQ™ – an award- winning cloud-based web portal that collects, stores and provides critical operational data in real-time. This data is protected through a validated chain of custody and secure database and can be accessed from any internet connection to smart phone, tablet or PC. IMDEXHUB-IQ™ has revolutionised the transfer and real- time accessibility of subsurface data – on site or in the office. 12 IMDEXHUB-IQ™ enabling secure real-time decision making 43% OF APPLICABLE INSTRUMENTS ARE CLOUD-ENABLED UP 25% ON FY18 49% OF TOP 100 CLIENTS ARE CONNECTED TO IMDEXHUB-IQ™ DATA THROUGHPUT IS INCREASING YOY – MOBILE FORMS UP 18% ON FY18 STRENGTHENING QUALITY OF RENTAL FLEET – FY19 AVERAGE REVENUE PER TOOL UP 13% ON FY18 REFLEX GYRO SPRINT-IQ™ The REFLEX GYRO SPRINT-IQ™ is an advanced downhole navigation device, which is used to survey boreholes. Downhole survey data collected can be seamlessly transferred to IMDEXHUB-IQ™ to be accessed anywhere and at any time, making real-time decisions a reality. The device has proven to have operating speeds up to 150 metres per minute and is three times faster and two times more accurate than traditional gyros. This advanced speed and accuracy significantly increases productivity for clients. The driller operable REFLEX GYRO SPRINT-IQ™ is designed to be easy-to-use with minimal training. This eliminates the need for third- party service providers on site. The device is also designed for all magnetic and non-magnetic ground conditions and can be used in north seeking, multi-shot or continuous modes. The REFLEX GYRO SPRINT-IQ™ represents another step-change in our long history of innovation for the minerals industry. We introduced the first digital survey tool in the late 1990s to replace analogue tools, then developed digital magnetic-based tools including the REFLEX EZ-TRAC™. CONNECTED CLIENTS GENERATE 60% MORE REVENUE THAN NON-CONNECTED CLIENTS UNIQUE INTEGRATED IMDEX SOLUTIONS PROVIDE ADDITIONAL VALUE TO CLIENTS IN THE MINING VALUE CHAIN 13 13 IMDEX LIMITED ANNUAL REPORT 2019 Our Integrated End-To-End Solutions continued... PROTECTING OUR FUTURE As a leading global Mining-Tech company, we take all appropriate measures to protect our intellectual property (IP). IP is an integral part of our product development stage gate process and our IP strategy considers the technical advantage, the commercial benefit and legal systems to protect our revenue. Our patent filing component of this strategy protects 80% of current and future revenue and ensures each of our core products is protected. In calendar 2018 we implemented global e-IP training for all our employees. As at 30 June 2019, 97% had successfully completed this training. PATENTS 82 REGISTERED 88 PENDING DESIGNS 11 REGISTERED 3 PENDING TRADEMARKS 120 REGISTERED 46 PENDING DOMAIN NAMES 33 REGISTERED 0 PENDING DATA AS AT JUNE 2019 14 14 BREADTH OF IMDEX PATENT FAMILIES IMDEX 40 COMPANY B 2 COMPANY C 8 Established Global Business and Extensive Client Network Our global presence and extensive client network allow us to: provide local support to clients; have greater access to international mineral exploration and mining markets; and efficiently introduce new technologies and solution sets to these markets. “We operate in all the key mining regions of the world. During FY19 we had sales within 102 different countries.” PAUL HOUSE IMDEX CHIEF OPERATING OFFICER IMDEX Facilities not including distributors Smithers - Canada Vancouver - Canada East Sussex - UK Rastede - Germany Timmins - Canada Amsterdam - Netherlands Salt Lake City - USA San Luis Obispo - USA Phoenix - USA Torreón - Mexico Coahuila - Mexico Accra - Ghana Parauapebas - Brazil Belo Horizonte - Brazil Itajai - Brazil Quito - Ecuador Lima - Peru Mendoza - Argentina Santiago - Chile Dubai - UAE Manila - Phillipines Jakarta - Indonesia Johannesburg South Africa Kalgoorlie - WA PERTH - WA Townsville - QLD Brisbane - QLD Adelaide - SA Melbourne - VIC Auckland - New Zealand 15 IMDEX LIMITED ANNUAL REPORT 2019 Operating Environment During FY19, concerns regarding the global macro environment had a short-term impact on capital expenditure and exploration plans. Despite those concerns: • Mining production levels and commodity prices support further investment in the industry; • The major and intermediate resource companies are increasing their expenditure to replace diminishing reserves; • The discovery of new mines requires more drilling and is likely to have longer development times; • New discoveries are likely to be under cover and at depth; and • Resource companies are embracing innovation and new technologies to lower costs, increase safety and achieve greater productivity. In relation to the juniors companies, conditions improved towards the end of FY19 due to the stronger gold price and as reported by Bloomberg, there has been a recent uplift in capital raisings globally. INDUSTRY IS PROGRESSIVELY LOOKING UNDER DEEPER COVER OVER TIME 1920 1940 1960 1980 2000 2020 1900 0 500 1000 1500 2000 2500 3000 Base Metals Gold Gold - South Africa N = 2926 DEPTH (METRES) CAPEX - LARGE CAP MINING COMPANIES STARTING TO SPEND AGAIN 180 160 Note: Size of the bubble refers to Moderate, Major and Giant discoveries Excludes satellite deposits within existing camps. Analysis excludes Nickel laterites and under-sea deposits ) n b $ S U ( N O I T A R O L P X E & X E P A C Source: MinEx Consulting © March 2017 140 120 100 80 60 40 20 0 Note: Size of the bubble refers to Moderate, Major and Giant discoveries Excludes satellite deposits within existing camps. Analysis excludes Nickel laterites and under-sea deposits Source: MinEx Consulting © March 2017 300 250 200 150 100 50 0 ) m $ S U ( T B E D T E N The recent PWC Mine 2019 report highlights that the capital expenditure budget of the top 40 miners globally is on the rise. As miners balance sheets improve, we would expect further lift in capital spend. Whilst the capex spend incorporates all facets of miners growth, increasing drilling activities (exploration, infill, resource definition & mine production) will benefit from the lift in spend. 16 16 2011 2012 2013 2014 2015 2016 2017 2018 Source: PWC MINE 2019 CAPEX NET DEBT 17 IMDEX LIMITED ANNUAL REPORT 2019 FY19 Financial Performance • Record revenue of $243.7 m, up 12% (FY18: $218.5 million) • Operating cash flow of $35.2 m (FY18: $15.9 m), up 121% • EBITDA of $52.3 m, up 23% (FY18: $42.4 m) • Net profit after tax of $27.6 m, Revenue by Region up 31% (FY18: $21.1 million) Record group result REVENUE BY REGION ($m) • Strong balance sheet – as at 30 June 2019, net assets increased by $33.9 m and net cash totalled $23.2 m 19% CAGR 243.7 218.5 176.2 142.3 143.3 “We had another positive year, building on our trend of revenue and EBITDA growth.” PAUL EVANS CHIEF FINANCIAL OFFICER & COMPANY SECRETARY Reconciliation of EBITDA Strong cash conversion CASH FROM OPERATIONS ($m) 52.3 FY19 REVENUE UP 12% ON PCP (7.9) (2.1) (6.4) (0.7) 35.2 CASH FROM OPERATIONS UP 121% ON PCP FY15 FY16 FY17 AFRICA/EUROPE EBITDA & EBITDA Margin % Driving operating leverage EBITDA ($m) & EBITDA MARGIN (%) AMERICAS ASIA PAC $m FY18 • Increase in revenue across all regions • Benefiting from global presence • Strong 1Q19 and 4Q19 • Revenue growth outpacing tool fleet growth • A greater proportion of newer instruments in the fleet – 3 to 5x the revenue of older generation instruments 10 FY19 EBITDA Working Capital Other Tax Finance Costs Cash from Operations Balance Sheet Strong net cash position BALANCE SHEET ($m) $m 37% CAGR 52.3 42.4 31.5 FY19 EBITDA UP 23% ON PCP • Improving gross margins • Focus on streamlining operations and internal digital transformation • Improvement in cost base 18% FY17 19% FY18 21% FY19 15.6 12% FY15 20.3 14% FY16 $m 7.4 4% FY14 18 $m Cash Receivables Inventory Fixed assets Intangibles Other assets / deferred tax TOTAL ASSETS Payables Borrowings Other liabilities, provisions TOTAL EQUITY 11 ROE ROCE 30 JUN 19 30 JUN 18 29.5 54.7 37.1 39.4 59.5 39.0 259.2 25.3 6.3 7.6 220.0 12% 15% 13.9 49.3 33.6 36.5 59.5 33.3 226.1 26.4 6.1 7.5 186.1 14% 17% • Working capital investment ratio of 34c for every incremental dollar of revenue for FY19 • In line with expectations, similar ratio expected in FY20 12 NET CASH UP 194% ON PCP • Improved balance sheet strength • Recommenced dividends • Net assets up 18% • Continued investment in leading technologies to drive future growth 19 19 13 IMDEX LIMITED ANNUAL REPORT 2019 Summary of Financial Highlights Revenue (excluding interest income) Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA) EBITDA margin Depreciation and impairment Amortisation For the Year Ended 30 June 2019 (Audited Results) Consolidated 2019 $’000 2018 $’000 18-19 VAR % 243,655 218,475 12 52,336 42,384 23 21.5% 19.4% (14,053) (12,513) (208) (592) 12 (65) 30 (9) 31 32 Earnings before Interest & Tax (EBIT) 38,075 29,279 Net interest expense Net profit before tax Income tax expense (623) 37,452 (9,844) (688) 28,591 (7,476) Our Board of Directors Our Board has extensive professional expertise, business experience and knowledge of the mineral exploration, mining and technology industries. It also has considerable experience within capital and financial markets. Members of the Board are well respected in these sectors and play an active role in our company’s strategic planning. Key priorities for the Board during FY19 included: • Enhancing our safety performance; • Strong corporate governance; • Maturing One IMDEX – our unique integrated value proposition for clients; • Driving our two-tiered growth strategy; and • Our internal digital transformation project. Net Profit after Tax 27,608 21,115 31 Basic earnings per share (cents) 7.37 5.73 - Net Cash provided by Operating Activities 35,188 15,900 121 Cash on hand Net Assets 29,476 13,942 111 220,012 186,126 18 Total Borrowings 6,239 6,076 Net Tangible Assets per Share (cents) 42.36 34.27 Small % variances may exist within this report due to rounding 3 24 Mr Bernie Ridgeway Managing Director Ms Sally-Anne Layman Non-Executive Director Mr Anthony Wooles Non-Executive Chairman Mr Ivan Gustavino Non-Executive Director Mr Kevin Dundo Non-Executive Director Appointed to the Board 23 May 2000 Appointed to the Board 6 February 2017 Appointed as Chairman 1 July 2016 Appointed to the Board 3 July 2015 Appointed to the Board 14 January 2004 20 21 IMDEX LIMITED ANNUAL REPORT 2019 Chairman’s Report On behalf of the IMDEX Board of Directors I’m pleased to present the company’s Annual Report for the 2019 financial year (FY19). FY19 was another positive year for IMDEX. The underlying business performed strongly, and the company progressed with its strategy to deliver sustainable earnings growth for our shareholders. Noteworthy examples of this progress included: successful client trials with the company’s drilling productivity and mining technologies; operational efficiency improvement due to the internal digital transformation project; and maturing of One IMDEX – the company’s integrated value proposition for clients. Safety performance remained a key focus. Whilst IMDEX continued to consolidate and build on the significant improvement achieved in FY18, it did not meet its the Lost Time Incident Frequency Rate (LTIFR) target of 2.18. Further information regarding IMDEX’s safety targets and initiatives can be found on pages 27 - 28 of this report. Improving IMDEX’s sustainable safety performance – and ultimately achieving zero harm – will remain a key priority during FY20. Chairman’s Report continued... Board & Senior Leadership Team The Board of IMDEX continues to enjoy an excellent working relationship with the Company’s senior leadership team – a balance between ensuring governance and accountability and providing collaborative strategic input and direction. Each of my fellow Board members have been tremendously responsive and participated strongly at all levels throughout FY19. The senior leadership team has remained very focussed on the strategic direction set for IMDEX with absolute commitment to delivering underlying earnings performance. It was a pleasure working with them all and I look forward to further progress in FY20. Our Valued Shareholders In conclusion, on behalf of IMDEX’s Board, I would like to thank our valued shareholders for their support. IMDEX is an exciting company with which to be involved. Increased Revenue and Earnings Kind regards IMDEX benefited from increasing activity within the global minerals market and improvement in the quality of the company’s rental fleet whilst focusing very closely on the underlying cost base. Revenue was $243.7 million, which represented a 12% increase on the previous year, and IMDEX improved margin performance achieving EBITDA of $52.3 million, a 23% increase on FY18. Dividends A fully-franked final dividend of 1.4 cents per share was declared, which represents a 30% FY19 NPAT payout ratio. This brings the full-year dividend to 2.2 cents per share. Dividend record and payment dates are 1 October 2019 and 15 October 2019 respectively. The Company is committed to a sustainable dividend policy, whilst continuing to invest in new technologies which have the potential to deliver substantial long-term growth. Sustainable Earnings Growth for our Shareholders IMDEX remains focused on delivering sustainable earnings growth for shareholders. Central elements of this strategy include: focused organic growth of the Company’s core business; close attention to cost management; disciplined research and development; focused technology acquisition; and the pursuit of growth across the mining value chain. Anthony Wooles IMDEX Chairman “IMDEX has a robust strategy to deliver sustainable earnings growth for shareholders, which the company is successfully executing.” 22 23 IMDEX LIMITED ANNUAL REPORT 2019 Governance & Risk Corporate Governance The Australian Securities Exchange (ASX) Corporate Governance Council sets out best practice recommendations, including corporate governance practices and suggested disclosures (ASX Recommendations). ASX Listing Rule 4.10.3 requires companies to disclose the extent to which they have complied with the ASX Recommendations and to give reasons for not following them. Unless otherwise indicated, the ASX Recommendations, including corporate governance practices and suggested disclosures, have been adopted by our company for the full year ended 30 June 2019. We also provide a Corporate Governance section on our website, which includes the relevant documentation suggested by the ASX Recommendations: www.imdexlimited.com/ about-us/corporate-governance. Risk Management The identification and proper management of risk within our company is an important priority for the Board and management. The Board has sought to minimise the business’ risks by focusing on our core business. The Board is responsible for ensuring our risk management systems are adequate and operating effectively. Risks are reviewed by senior leadership monthly and by the Audit, Risk and Compliance Committee on a regular basis. The Board believes that through the Board itself, the Audit, Risk and Compliance Committee, the Internal Audit Function and external auditors there is adequate oversight of the company’s risk management and internal controls. IMDEX Legal IMDEX Legal oversees risk, compliance and legal to optimise opportunities, reduce threats and support our business objectives. Its team members partner with all stakeholders to provide trusted advice, support regional needs and uphold global standards for ethical business practices. The team is focusing on maturing our approach to risk, compliance and legal matters, by implementing integrated frameworks and technologies that enable us to be proactive, collaborative and more efficient. Key achievements throughout FY19 included: • Development of a Conflict of Interest Procedure and implementation of a digital system for disclosing and managing conflicts; • Implementation of a Supplier Code of Conduct to align with our transparent, safe and ethical procurement practices; • Enhancements to our Anti-Bribery & Anti- Corruption Framework; and • Enhancements to our Risk Management, Compliance and Legal Framework. Our priorities and key initiatives within IMDEX Legal’s FY20 strategy are set out in the table on page 25. PRIORITIES Advisory Capacity Update Frameworks INITIATIVES • Foster partnerships – collaborative working relationships • Support for One IMDEX • Risk, crisis and regulatory compliance management systems • Further development of Anti-Bribery & Anti-Corruption and corporate governance frameworks • Update existing documentation – for example policies • Impact of external environment Employee Training • Legal and compliance – including Anti-Bribery & Anti-Corruption, data protection, intellectual property, competition and modern slavery • Conflicts of interest • Risk management • Regulatory compliance • Internal and external focus Business Templates • Update / refresh based on business model • One IMDEX focused • Risk management specific tools • Regulatory compliance specific tools Monitoring and Auditing • Appropriate oversight of enterprise risk management and regulatory Technology compliance • Action focused • Speak Up / case management • Embed ComplianceDesktop™ • Risk management • Regulatory compliance “Our Board and senior leadership team are placing greater emphasis on how we manage risk and compliance at IMDEX. As our business develops and matures, so must our approach to risk and compliance. Our aim is to transform our approach to safeguard our company and employees, enhance our decision making, avoid unnecessary costs and efficiently leverage opportunities for growth. This approach means everyone is responsible for incorporating risk and compliance into our day-to-day operations. We expect all employees in all our regions to uphold the highest global standards for ethical business practices. As with other parts of our business we are also building on our technologies – for example ComplianceDesktop™ – to help us efficiently manage risk and compliance.” SARAH STANDISH IMDEX GENERAL COUNSEL 24 25 IMDEX LIMITED ANNUAL REPORT 2019 OUR CODE OF CONDUCT At IMDEX we have a zero-tolerance approach to bribery and corruption. Upholding the highest global practices for honest, ethical and compliant business practices forms part of our Code of Conduct and is therefore the responsibility of all employees. This Code applies to all our employees globally and covers: • Anti-Bribery & Anti-Corruption • Environment, Health and Safety • Speaking-Up • Competition and Fair Dealing • Conflicts of Interest and Related-Party Transactions • Confidentiality • Diversity and Equal Opportunity • Gratuities / Gifts • Insider Trading • Intellectual Property • Privacy • Trade and Economic Sanctions • Unauthorised Public Comments Each year all employees are required to complete comprehensive anti- bribery & anti-corruption training and a conflicts of interest questionnaire via ComplianceDesktop™ – our online compliance management system to ensure transparency, consistency and a clear audit trail. Employees at Level 4+ are also required to complete an Ethics Certification annually. Safety & Quality Our HSE team partners with all stakeholders to provide trusted advice, support regional needs and uphold global standards to eliminate work-related injuries and illness. Key safety initiatives implemented throughout FY19 included: • Global implementation of iAuditor – a digital safety management tool to drive HSE engagement; and • Greater visibility of safety performance measures for all employees including our strengths and areas for improvement. As a result of iAuditor and a focus on greater safety awareness, safety alerts raised by employees increased in FY19. Our iAuditor participation score for FY19 was 52% and iAuditor safety engagement score was 2.6. Our iAuditor participation and engagement targets for FY20 are 75% and 6 respectively. An overview of our priorities and initiatives within our safety strategy for FY20 is set out below: QUALITY CERTIFICATIONS ISO 9001: 2015 standard (Quality Management System) OHSAS: 18001 (Occupational Health and Safety Management System) PRIORITIES Demonstrating visible safety leadership throughout the organisation INITIATIVES • Safety target engagement scores • Scheduled communications Embedding systematic solutions to identify, eliminate or manage risks • An Integrated Management System (IMS) that incorporates all IMDEX support functions Fostering the development of attitudes and beliefs that support safe behaviour to achieve a positive safety culture • Regional IMS compliance audits • Additional iAuditor templates to enhance the efficiency of safety compliance and reporting Developing HSE capability and competence to identify and manage hazards effectively to prevent injuries • Enhance existing HSE employee training modules • QHSE MS fundamentals course • Regional incident investigation training – incident cause analysis method • Regional lead auditors training • A global manual handling initiative Our LTIFR target for FY20 is an improvement on 2.52 and ultimately, zero harm to all employees and stakeholders through the systematic management of risk. 26 26 27 IMDEX LIMITED ANNUAL REPORT 2019 Safety & Quality continued... IMDEX LOST TIME INJURIES LOST TIME LTIFR 3.39 3.36 LTIFR IMDEX BENCHMARK 2.60 2.50 1.71 1.68 0.87 10 9 8 7 6 5 4 3 2 1 0 FY19 LTIFR TARGET = 2.18 ZERO LOST TIME INJURIES REPORTED IN JUNE CURRENT LTIFR IS 2.52 ( FROM 2.55) > 2.52 2.18 D E K R O W S R U O H N O I L L I M R E P S T N E D I C N I 4 3 2 1 0 8 1 - L U J 8 1 - G U A 8 1 - P E S 8 1 - T C O 8 1 - V O N 8 1 - C E D 9 1 - N A J 9 1 - B E F 9 1 - R A M 9 1 - R P A 9 1 - Y A M 9 1 - N U J During FY19 our company achieved a Lost Time Incident Frequency Rate (LTIFR) of 2.52, a 2% improvement on the previous year (FY18 LTIFR: 2.57). While we did not achieve our target of 2.18, however, we continued to consolidate and build on the significant safety improvements achieved in FY18 – a 20% improvement on FY17. ABOUT iAUDITOR iAuditor is an inspection App that will help us raise safety and quality standards across our global business. The highly-customisable App and web platform will enable us to collect consistent data, standardise operations, send digital reports, identify failed areas and get problems resolved – from anywhere on any device at any time. Our ability to drive and measure HSE engagement across all facets of our business, tailored for their work environment, has never been greater. 28 28 Key benefits and features of iAuditor include: • A user-friendly design; • Real-time incident reporting; • Elimination of paper-based checklists, inspections and forms; • Simplified processes, greater efficiency and actions automatically linked to our Quality Alert System; • Multiple languages including English, German, Portuguese and Spanish; and • Flexibility to customise for region-specific needs. “We are working towards best-practice safety – even when no one is watching. Our senior leadership team is committed to making safety front of mind for our employees and IMDEX community – at home, at work, travelling and on site. We aim to go beyond being safe because we are told to – we aim to be safe because we understand the risks and intrinsically value doing things a better way.” PAUL HOUSE IMDEX CHIEF OPERATION OFFICER 29 29 IMDEX LIMITED ANNUAL REPORT 2019 Managing Director’s Report Dear Shareholders, I am pleased to provide you IMDEX’s Annual Report for the financial year ending 30 June 2019 (FY19). FY19 was a successful year and we are looking forward to FY20 with great excitement. Market Conditions During FY19, activity within the global minerals market continued to increase across all regions of our operations. Drilling activity moderated early in calendar 2019, principally due to concerns regarding the global macro environment including slowing global growth which had a short-term impact on capital expenditure and exploration plans. Despite these concerns, 4Q19 was the second strongest quarter on record for IMDEX and we remain confident the major and intermediate resource companies are increasing their exploration and development expenditure. Financial Performance It was a positive year with particularly strong first and fourth quarters. The 12% uplift in revenue was due to increased activity within the global minerals market and the improving quality of our rental fleet, which provides additional value to clients and generally commands higher rental rates. Pleasingly, our EBITDA result of $52.3m exceeded FY18 by 23%. The result reflected higher revenue and improving margins due to market adoption of our integrated solutions and cloud-connected technologies via IMDEXHUB-IQ™. These solutions allow our clients to drill smarter and faster, obtain accurate subsurface data and critical information in real-time. As reported in our 1H19 results, we are continuing to streamline our operations for the long-term. This focus on operational efficiencies, together with our internal digital transformation program, achieved an improvement in our cost base, which was particularly evident in 2H19. We also continued to invest in our ongoing core R&D and new drilling productivity and mining technologies in line with our growth strategy. Our cash from operations improved significantly and we achieved a working capital investment ratio of 34 cents for every incremental dollar of revenue for the full year. This aligned with expectations and we anticipate a similar ratio for FY20. Our balance sheet strength improved, and the strong cash generation was reflected in our net cash position, which was up 194% on the prior corresponding period. At the same time, we recommenced our dividend and continued to invest in leading technologies to drive future growth for shareholders. IMDEX Drilling Productivity Technologies As announced to the market in January 2018, we entered into an exclusive option agreement to acquire New Zealand based companies Flexidrill Limited and Flexidrill Construction Limited (together “Flexidrill”) and its patent protected technologies – the COREVIBE™ and MAGHAMMER™. Since then, we have been progressing the development of these technologies based on strong demand from drilling contractors and resource companies. Managing Director’s Report continued... We undertook successful trials at our test site in New Zealand, which concluded that COREVIBE™ generated a productivity gain of 33% over conventional coring. These results were also validated by SGS, the world’s leading inspection, verification, testing and certification company. More recently, we conducted client trials with COREVIBE™ in New South Wales, Queensland and Western Australia. These trials were successful and supported the results achieved at our test site. The Company has now commenced pilot production of COREVIBE™ and the first units are on commercial rent. Development of the MAGHAMMER™ at our test site in New Zealand is progressing well and we intend to commence client trials in 2H20. The first iteration of the MAGHAMMER™ will be targeting high speed pre-collar drilling through barren rock to the coring zone. This eliminates the need for multiple drill rigs at site and accordingly, the MAGHAMMER™ will significantly reduce the cost of drilling these targets. Additional development of the MAGHAMMER™ will provide geological samples. Given continued positive development of the drilling productivity technologies and COREVIBE™ units on commercial rent, IMDEX anticipates exercising its Option to acquire Flexidrill in mid-December 2019. IMDEX Mining Technologies Our development of mining solutions for Drill & Blast applications, leveraging its existing expertise and technologies, is advancing and remains on track to increase mine to mill efficiency for clients globally. Further extension into the larger adjacent mining market, has the potential to generate significant non-cyclical revenue streams. We are conducting BLAST DOG™ trials in precious and base metals, together with bulk commodities, with global resource companies. To date, successful trials have been undertaken in Nevada in the United States and Queensland, Australia. Additional trials are planned in Chile and Australia in 1H20. Our company continues to have strong support from industry partners including: Anglo American; Teck Resources; Orica; and METS Ignited and expects to generate revenue from the Drill & Blast technologies in 2H20. Internal Digital Transformation Program During the year we continued to progress our digital transformation program, which is being undertaken to enhance our systems and processes and enrich our client experience. Key achievements included: • Global implementation of Office 365; • Global digital rentals implemented within the Asia Pacific region; • Global implementation of Concur expense management system; • Global implementation of People HUB – our human resource information system; • Additional training modules and tools within IMDEX Academy – our in-house digital training platform; • Global implementation of iAuditor – our digital safety management tool; and • The launch of our Customer Care Portal to optimise the way we provide product support to our clients and collect important data for input to future product development. 30 31 IMDEX LIMITED ANNUAL REPORT 2019 Managing Director’s Report continued... One IMDEX In mid-calendar 2018 we initiated a transition from being a product-focussed organisation to a market focussed one, enabling our teams of highly specialised AMC, REFLEX and IMDEXHUB-IQ™ personnel to deliver end-to-end IMDEX solutions to our client base. Organisationally this transition was completed in FY19 and we are seeing growth in our solutions business. During FY20 we will continue to invest in the capability of our teams, via IMDEX Academy and by attracting the best talent in the market to bring our solutions to our clients. Positive Outlook for FY20 Mining production levels and commodity prices support investment in the industry, which is positive for IMDEX: • The major and intermediate resource companies are increasing their expenditure to replace diminishing reserves; • The discovery of new mines requires more drilling and is likely to have longer development times; • New discoveries are likely to be under cover and at depth; and • Resource companies are embracing innovation and new technologies to lower costs, increase safety and achieve greater productivity. In relation to the Junior companies, conditions have improved due to the stronger gold price and as reported by Bloomberg, there has been a recent uplift in capital raisings globally. At a company level, IMDEX has had a positive start to FY20. The increase in activity that was evident in 4Q19 has continued and is reflected in the company’s growing instrument fleet. Similarly, demand for IMDEX’s cloud-connected technologies is increasing. As at June 2019, 43% of the company’s connected devices were actively pushing data to IMDEXHUB-IQ™, which represents a 25% uplift on the previous corresponding period. A Great Team My sincere thanks to all IMDEX employees for another successful year – it is always a pleasure working with a diverse and dedicated team of talented people. Together we made excellent progress with the execution of our growth strategy for our valued shareholders. On behalf our senior leadership team, I would also like to thank our Board for its professionalism, commitment and guidance. Each member brings unique value and expertise to our strategic direction and always contributes ‘beyond the call of duty.’ Kind regards Bernie Bernie Ridgeway IMDEX Managing Director 32 33 33 IMDEX LIMITED ANNUAL REPORT 2019 Senior Leadership Team Mr Bernie Ridgeway Managing Director • Chartered Accountant Australia and New Zealand • Bachelor of Business • Member of the Institute of Chartered Accountants Australia and New Zealand and the Australian Institute of Company Directors • Over 36 years’ experience with public and private companies as a business owner, Director and Manager Mr Paul Evans Chief Financial Officer & Company Secretary Mr Paul House Chief Operating Officer • Chartered Accountant Australia and New Zealand • Member of the Institute of Chartered Accountants Australia and New Zealand and the Australian Institute of Company Directors • Chief Financial Officer and Company Secretary since 17 October 2006 • Extensive experience in commercial, general management and financial roles • Industry experience covering the media, manufacturing, mining services and telecommunications industries • 26 years’ experience in management and operations across the resources sector and diversified industrial services markets • 14 years with SGS, the world’s leading inspection and testing firm, with a dominant presence in the resources geochemistry assay and metallurgy sectors • 18 years working in resources markets around the world including Africa, the Middle East, South Asia, South East Asia, Australia and the USA. • Additional roles have included strategy, innovation, market entry strategy, turnaround performance management and corporate finance positions • Fellow of the Australian Institute of Management and a Graduate Member of Australian Institute of Company Directors Mr Mathew Regan Chief Information & Transformation Officer • Extensive Executive management experience in business transformation, strategy, innovation, supply chain optimisation and digital technologies • Bachelor of Computer Science from Edith Cowan University and a Master of Information Technology from the University of Western Australia Dr Michelle Carey Global Manager – IMDEX Product Development • Over 20 years’ experience in the mining industry working for companies including BHP and WMC • Stanford University Executive • 8 years in senior leadership roles at Program IMDEX • Member of Australian Institute of Company Directors • Extensive experience in developing innovative products for the mining industry • PhD in Geochemistry from Monash University 34 Mr Tim Price General Manager – IMDEX Product Research Ms Sarah Standish IMDEX General Counsel • Registered legal practitioner in • 33 years’ experience in engineering Western Australia and product development, • Broad and diverse experience • 8 years with IMDEX, 20 years with spanning legal, risk and compliance Scientific Drilling International holding positions from Design Engineer to Senior Vice President of Engineering • 5 years in Aerospace and Semiconductor Test Industries • Bachelor of Science in Electronic Engineering and Master of Science in Electrical Engineering from California Polytechnic State University, San Luis Obispo • 6 years’ experience working in private law firms advising clients on a broad range of corporate and commercial issues • 8 years’ working in-house with oil & gas and METS companies - key responsibilities have included corporate governance, company secretarial, legal, risk and compliance • Bachelor of Arts, Bachelor of Laws, Graduate of the Australian Institute of Company Directors Dr Dave Lawie Chief Geoscientist / Chief Technologist – Mining Solutions • Chief Geoscientist for IMDEX since 2012 and Chief Technologist – Mining, for IMDEX since 2015 • Global positions in exploration geochemistry and R&D with Pasminco and Anglo American before co-founding ioGlobal in 2004. • Grew ioGlobal as Managing Director into a global company specialising in geochemistry and geometallurgical consulting services, cloud-based data management and the ioGAS desktop analytics software– the company was acquired by IMDEX in 2012 • PhD in Geosciences and Analytics from the University of New England Mr Kingsley Weber Human Resources Director • Global leadership and consulting experience in: R&D; sales, marketing and key account management; international business and new market development; human resources; organisational design and development; and corporate strategy and execution • Diverse and extensive industry experience including: chemicals; healthcare; satellite communications; environmental management; manufacturing; and banking • Fellow of the Royal Society of Arts, Member Chartered Institute of People Development Derek Loughlin Global Business Development Director • In executive management positions at IMDEX since 2006 • More than 30 years’ experience within the mining and drilling industry, including international assignments • Honours Degree in Mining Engineering from the Camborne School of Mines, UK • Programme for Executive Development at IMD Switzerland 35 IMDEX LIMITED ANNUAL REPORT 2019 Our People GLOBAL WORKFORCE During FY19 our global workforce decreased by 3% to 511 people (FY18 529), largely due to our focus on streamlining operations for the long-term, together with our internal digital transformation. DIVERSITY AND EQUALITY At IMDEX we value and encourage diversity in our workforce. We seek to employ, retain and develop employees for the long-term, assisting in their professional development and the development of the culture and values of our company. Our aim is to build a diverse workforce and inclusive environment where everyone feels able to participate and achieve their potential. This strategy extends beyond legal compliance and seeks to add value by contributing to our employees’ health and well-being. Our Diversity Policy can be found on our website. IMDEX is committed to providing equal opportunities for all employees. We ensure employment decisions are made solely on the basis of merit, taking into account relevant skills, qualifications, experience and ability and without bias or prejudice. Further information can be found within our Code of Conduct Policy, which is also on our website. TOTAL NO. EMPLOYEES 511 42% FY19 19% 39% EMPLOYEES BY REGION ASIA PACIFIC AMERICAS EUROPE & AFRICA 24% FY19 76% EMPLOYEES BY GENDER FEMALE MALE EMPLOYEE ASSISTANCE PROGRAM KEY ACHIEVEMENTS FOR FY19 To support the health and well-being of our employees, we continue to offer an Employee Assistance Program (EAP). Our EAP is provided by Optum, a global and independent organisation that specialises in coaching and counselling services. The confidential EAP is available 24/7 and is free for all IMDEX employees and their immediate families. Our human resources (HR) team delivers critical HR initiatives to ensure our company embeds operational HR best-practice. These initiatives formed the pillars of our three-year HR Strategic Plan and the key initiatives for FY19 are summarised in the graphic below. GLOBAL HR PRIORITIES DESIGNED, DEVELOPED AND DELIVERED IN FY19 Talent Acquisition & Onboarding Embed Technology Build Achievement Orientated Culture Fostering Talent & Leadership Growth Supporting a Diverse Workplace Improved HR Processes & Reporting Preferred Supplier Agreements Negotiated Aligned Global Recruitment Agency Terms Improved Recruitment Tools Embedded Global Internship Programs Launched SuccessFactors Employee Central APAC Payroll SuccessFactors Change Management Delivery One IMDEX Organisation Design Leadership Competency Framework Design Performance & Reward Design & Strategies Key Talent & Succession Planning Annual Performance Reviews Mentoring & Coaching Workforce Planning Remuneration Framework Global Capability Development Including: Key Account/Sales Management Technical Skills Business Acumen Policy Suite Review Manager & Employee Handbooks Organisation Match -Fit Analysis HR Metrics & Reporting UNDERPINNED BY GLOBAL HR STRATEGY AND STRUCTURE DESIGNED TO SUPPORT ONE IMDEX BUSINESS STRATEGY 36 37 IMDEX LIMITED ANNUAL REPORT 2019 Our people continued... IMDEX’S NEW HR INFORMATION SYSTEM GLOBAL INTERNSHIP PROGRAM The first phase of People HUB – a user-friendly digital platform to centralise and simplify all things HR at IMDEX – was successfully launched on 8 July 2019. The platform provides significant benefits to our company and will help us efficiently manage our teams. Future phases will include performance management, recruitment, onboarding, succession planning and development. IMDEX VITAL BEHAVIOURS During FY19 we introduced four vital behaviours as part of our global performance review and to execution of our growth strategy. Research has demonstrated that these behaviours are differentiators and when adopted and used willingly, underpin engagement and high- performance. We speak up: Demonstrating the courage to deal with difficult situations, issues or behaviours. Everyone is encouraged to Speak Up with confidence and respect. We demonstrate respect: By treating every colleague, client and supplier with respect 100% of the time. Creating psychological safety and making people feel valued drives collaboration and positive outcomes. It also recognises the value that different perspectives and cultures bring to our company. We are accountable: We hold each other accountable to meet commitments and deliver results, even under challenging circumstances. We are engaged in decision-making: Every employee is aware and engaged in decisions that impacts their work. The highest driver of productivity and pace is ownership over decisions. During FY19 we launched our Global Internship Program. This Program offers undergraduates and new graduates the opportunity to work at one of our global facilities and provides a hands-on learning environment, together with coaching and mentoring opportunities. Our initial internships programs commenced in Asia Pacific and the Americas and enrolments spanned diverse disciplines including: engineering; procurement; finance; legal; human resources; and information technology. LEVELS OF WORK The Levels of Work is a framework developed to support the organisation’s overall business strategy by providing clarity and definition to roles across IMDEX, ensuring consistency of approach for reward and career development. The framework will provide simplicity and clarity so that it can be easily understood and maintained. The immediate benefits for IMDEX are primarily related to remuneration and reward. The Levels of Work help to align IMDEX with the relevant market data to ensure external competitiveness, while simultaneously facilitating a consistent approach to salaries and incentive plan eligibility within the organisation. The levels of work also provide additional structure to reporting that will benefit workforce planning and organisational analysis. As the framework is embedded and utilised in line with the HR Strategy, it will support organisational succession planning by providing structure to define the expected behavioural and leadership competencies at each level of the organisation. 38 38 39 39 IMDEX LIMITED ANNUAL REPORT 2019 Key elements of our strategy include: maintaining our technical leadership; enhancing our client relationships; and driving operational excellence. Maintain technical leadership • Next generation core products • Rapid-response frontline innovation • New technologies – including drilling productivity and mining technologies for Drill & Blast applications Enhance client relationships • Integrated IMDEX solutions – AMC & REFLEX • Client help desk and service centre • Training – IMDEX Academy • Enhance strategic partnerships • Implement key account management Drive operational excellence • Enhance safety performance • One IMDEX • Digital transformation • Engage, develop and retain talented people • Streamline distribution and supply chain Objective And Growth Strategy We maintain our clear objective of delivering sustainable earnings growth for shareholders via a two-tiered strategy, which includes: • Protecting and growing our core business by enhancing technical leadership, technical integration and increasing client spend; and • Further extension into larger adjacent mining market to enhance our less cyclical revenue stream. At the same time, we are focused on growing our business from a solid base by controlling our costs, maintaining professional vigilance and leveraging our digital transformation. W E N I G N T S I X E DRILLING PRODUCTIVITY TECHNOLOGIES (INC COREVIBE™, MAGHAMMER™) ONGOING R&D CORE BUSINESS (INC SOFTWARE, IMDEX HUB-IQ™ & AMC MUD CALC™) IMDEX MINING TECHNOLOGIES (INC BLAST DOG™) MARKET EXTENSION CORE BUSINESS EXPLORATION & DEVELOPMENT MINING MARKETS S E I G O L O N H C E T / S T C U D O R P 40 41 IMDEX LIMITED ANNUAL REPORT 2019 THE IMDEX WAY The IMDEX Way sets out the key principles and expected behaviours that govern our company’s decision making, business practices and employee reward programs. INTEGRITY Communicating openly and honestly. Avoiding activities or organisations that are unethical, harm people or the environment. ACCOUNTABILITY Taking responsibility for and delivering on IMDEX’s commitments to the Company, clients and colleagues. TEAMWORK Working collaboratively, safely and with respect for diversity within the IMDEX Group to achieve the best results for the Company, clients and colleagues. BEING DYNAMIC Maintaining an efficient global Company with the flexibility to provide localised client solutions and the adaptability to react quickly to new opportunities and change. CONTINUOUS IMPROVEMENT Pursuing IMDEX’s strategy of ongoing growth and reward for shareholders, clients and employees through continuous improvement of the Company’s products, services and work practices. INNOVATION Leveraging IMDEX’s advanced technologies and research and development capabilities to deliver innovative, leading edge products and services that optimise client operations. OUR COMPANY HISTORY December 1980 Australian company Pilbara Gold NL incorporated July 1985 Pilbara Gold NL changed name to IMDEX Limited September 1987 IMDEX Limited listed on the ASX 1988 1997 2001 Formation of Australian Mud Company Acquisition of Surtron Technologies Pty Ltd and Ace Drilling Supplies Joint venture formed with IMDEX and Rashid Trading Establishment (RTE) in Saudi Arabia July 2005 2005 Sale of IMDEX Minerals August 2005 Acquisition of African based company Samchem August 2006 Acquisition of Swedish based REFLEX Group of Companies and United Kingdom based company Chardec May 2007 July 2007 July 2007 Acquisition of Swedish based company Flexit Ace merged with REFLEX. IMDEX finalised the sale of its interest in IMDEX Arabia to RTE Acquisition of Canadian based Poly-Drill and a 75% interest in Kazakhstan based Suay Energy Services October 2007 Sale of Surtron Technologies November 2007 Acquisition of Chilean based company Southernland January 2008 Acquisition of German based company System Entwicklungs July 2008 Acquisition of the remaining 25% of Kazakhstan based Suay Energy Services September 2008 Acquisition of Australian based company Wildcat Chemicals Australia July 2010 New regional structure implemented and business reporting streamlined into Minerals and Oil & Gas Divisions September 2010 Acquisition of Australian based companies Fluidstar and Ecospin March 2011 Acquisition of German based company Mud-Data July 2011 Formation of DHS Services joint venture July 2011 Acquisition of Australian based company Australian Drilling Specialties Pty Ltd August 2011 Acquisition of Brazilian based company System Mud Indústria e ComércioLtda January 2012 Acquisition of Vaughn Energy Services (VES) by IMDEX’s DHS Services joint venture November 2012 Acquisition of ioGlobal Pty Ltd, ioAnalytics Pty Ltd and ioGlobal Solutions Inc. (together ioGlobal) December 2012 DHS Services and Vaughn Energy Services rebranded as VES International September 2014 Acquisition of 2iC June 2015 Divestment of Suay Energy Services 2016 Divestment of AMC Oil & Gas January 2018 Option to acquire Flexidrill Limited and Flexidrill Construction Limited (together Flexidrill) 42 42 43 IMDEX LIMITED ANNUAL REPORT 2019 IMDEX LIMITED (IMDEX) ABN: 78 008 947 813 AUSTRALIAN SECURITIES EXCHANGE (ASX) LISTING DATE: 24 SEPTEMBER 1987 ASX CODE: IMD REGISTERED & HEAD OFFICE: 216 BALCATTA ROAD, BALCATTA WESTERN AUSTRALIA 6021 REGISTERED PO BOX: PO BOX 1262 OSBORNE PARK WESTERN AUSTRALIA 6916 T +61 (8) 9445 4010 IMDEX@IMDEXLIMITED.COM WWW.IMDEXLIMITED.COM 44
Continue reading text version or see original annual report in PDF format above