Slide 1: ASX cover letter for presentation
28 March 2007 The Manager Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sirs PRESENTATION I attach a copy of the presentation to the attendee’s of the Citigroup Conference today in Sydney. Yours faithfully Imdex Limited Paul Evan
Slide 2: IMDEX Limited - Citigroup Micro-Caps Conference
IAI TM IMDEX Limited “Australia’s Global Drilling Products & Services Company” citigroug 5% Annual Micro-Caps Conference 28 March 2007
Slide 3: Company Overview
COMPANY OVERVIEW 8 Imdex is a Perth based, ASX listed industrial company specialising in supplying drilling products and services to the mining, oil & gas, water weil and civil industries in Australia and internationally a Market leader status in many of our disciplines (eg. wireless steering tool f
Slide 4: Highlights
HIGHLIGHTS up 161% TUL Operating Net Profit , Revenue aller | ax 28 March 2007
Slide 5: Corporate Structure
CORPORATE STRUCTURE Drilling Products & Services Division 28 March 2007
Slide 6: Imdex Regions Worldwide
IMDEX REGIONS WORLDWIDE Burkina Fas Mall Africa os South Atri . Fiji New Caledonia Americas 28 March 2007
Slide 7: Results Summary
RESULTS SUMMARY 2006 2005 2004 Half Year Ended 31 December $0006 $0005 $000's Revenue 53,144. 30,194 21/892 38% EBITA 4,313 2,198 ; 97% EBIT 4,313 2,193 97% Net Profit after Tax 3,176 1,363 88% 133% Operating Cash Flow 7,432 3,260 1,784 128% 83% Earnings Per Share (cents) 4.26 2.59 1.16 Dividends Pe
Slide 8: Revenue
REVENUE 2005 % $00gs Change 2006 Half Year Ended 31 December $ 000's Drilling Fluids & Chemicals : Australian Mud Company 20,424 Samchem * 8,690 Drilling Products & Services Reflex **>. : 6,870 Chardec ** 2,384 Surtron 6,594 Ace Drilling Supplies 9,745 Eliminations *** (2,136) Other 570 Total Revenu
Slide 9: Revenue & EBITA by Division
REVENUE & EBITA BY DIVISION Revenue by Division (prior to intercompany elimination, $000s) EBITA by Division (prior to intercompany elimination, $’000s) 20,424 3,924 6,870. 6,594 Ace Reflex Surtron Chardec Ace Reflex Surtron Chardec @ Drilling Fiuids & Chemicals Segment e Drilling Products & Service
Slide 10: Fluids & Chemicals
FLUIDS & CHEMICALS --« Segment revenue of $29.1m (up 59% on pcp) and EBIT of $4.5m (up 84% on pcp) # Servicing mining, oil, gas, water & civil industries in Australia & internationally — all industry segments are strong * Global presence — Africa, Asia-Pacific, Central & South America and Eastern Eu
Slide 11: Products & Services
PRODUCTS & SERVICES « Segment revenue of $23.5m (up 102% on pcp) and EBIT of $6.3m --(up 140% on pcp) « Geophysical Logging concentrated in the high growth Iron Ore industry »_Down Hole Surveying primarily servicing major gold producers in Australia « Steering business (Tis) focused on CBM industry
Slide 12: Balance Sheet
BALANCE SHEET 31-Dec-06 30-Jun-06 $ 000's $ 000's Cash 6,737 6,421 Receivables 22,040 18,810 Inventory 12,889 9,707 Financial assets 9,534 4,624 Property, plant & equipment 11,706 9,967 intangible assets 47,138 3,219 Deferred tax assets 1,224 - Total Assets 111,268 52,748 Payables 19,489 15,687 Prov
Slide 13: Imdex Snapshot
IMDEX SNAPSHOT h $1.08) (We gaa 30 4.82 $74, [=] Pai Si 5000) 4000) dl 3000) 2000) a eeu Load x 000 (0G TCS Mar ne Name 4 -Smaforetagsinvest AB J P-Morgar Nominees, 3 | Perpetual Limited 4 . Citicorp Nominees 5. Telic Alcatel 6 Wear Services Shares 20,800,000 12,957,811 4 1,601,389 9,038,568 3,603,1
Slide 14: Outlook
OUTLOOK » Global mining expenditure continues to increase with further growth forecast for the medium term x Energy sectors continuing to show strong operating conditions # Second half of financial year is expected to build on the achievements of the first half - # Synergy benefits have already been
Slide 15: Global Exploration Spend
GLOBAL EXPLORATION SPEND Estimated Exploration Spend Worldwide (Non Ferrous) US$ Billions » Budgeted mineral exploration expenditure was a record US$7.1B in 2006. Forecast up again in 2007 Exploration in non mature markets growing fast Demand continues to grow eg. China, India 1993 1994 1995 1996 19
Slide 16: Global Spend - Region & Type
GLOBAL SPEND — REGION & TYPE Worldwide Exploration Budgets* Worldwide Exploration Budgets* by Region 2006 (%) by Stage 2006 (%) Grass reoke. Late Stage Rest of World « Brownfields exploration greater than greenfields from 2005 onwards = In the decade prior to 2004, greenfields averaged over 50% more
Slide 17: 2007 Financial Goals
2007 FINANCIAL GOALS 2007 Financial Goals (Guidance to Market) « 45% revenue increase to $96 million « EBIT margin growth exceeding the 15% achieved in 2006 Progress — December 2006 » 76% increase in revenue on 1H06. Full year expected to exceed previous market guidance : » EBITA margins for 1HO7 of
Slide 18: Flexit
FLEXIT « Heads of Agreement entered into in February 2007. « Acquisition price of A$22m: -- A$12m cash on settlement ~~ A$10m by way of 5m ordinary shares 2 years after settlement ~ Cash adjustment if market value of shares is below $2 per share at that time * Developer and supplier of sophisticated
Slide 19: Flexit - SmartTool and GyroSmart
FLEXIT = SmartTool ~ Flexible drill hole survey system - Hand held data pad with radio based data transmission to laptop -~ Single and multishot capability -~ Storage, display and analysis of data « GyroSmart ~~ Most advanced micro electro-mechanical (MEMS) survey system available ~~ Rugged solid st
Slide 20: Flexit - Financials and Rationale
FLEAIT = Financial performance ; ~ Projected revenue of $15m and EBIT of $5m under current business model -~- Business model under Imdex is expected to outperform current model beyond year 2 -- Lead time for new model may mean lower profits in first year of transition = Reasons for acquisition ~. Ex
Slide 21: Summary
SUMMARY = [mdex services the buoyant resources and energy sectors « Rationalisation of the Imdex group will continue with divestments and acquisitions to focus on expanding the drilling fluids and down hole instrumentation technology worldwide # This global expansion, through both organic and acquis
Slide 22: IMDEX is
IMDEX is An Australian global Drilling Products & Services Company: a service provider to the natural resources industries 28 March 2007