Imdex Ltd · ASX:IMD
Imdex — Shareholder Meeting (October 2014)
38 slides from Imdex's shareholder meeting presentation, Oct 16, 2014
Slide 1: 2014 AGM Chairman's Agenda - Welcome
2014 AGM Chairman’s Agenda 2014 ANNUAL GENERAL MEETING, 16 OCTOBER 2014 For personal use only Welcome Good morning ladies and gentlemen. It is a pleasure to welcome you to the 2014 Annual General Meeting of Imdex Limited. For those of you I may not have met, I’m Ross Kelly and as Chairman of Imdex’s
Slide 2: Your Directors
2014 AGM Chairman’s Agenda Slide 2 – Your Directors For personal use only Before I open the meeting, I would like to introduce my fellow Directors, our Company Secretary and other attendees today: • Our Managing Director Bernie Ridgeway; • Non-Executive Directors Kevin Dundo, Magnus Lemmel and Betsy
Slide 3: Quorum, Notice of Meeting and Minutes
2014 AGM Chairman’s Agenda later in the meeting. Also attending is Mr Nino Odorisio from Hopgoodganim, the Company’s solicitors. For personal use only Quorum/Meeting Open I confirm that a Quorum of members is present and accordingly, declare the meeting open. [Constitution Article 15.3, two members
Slide 4: Proxies and AGM Agenda
2014 AGM Chairman’s Agenda Proxies I will now ask the Company Secretary to advise the meeting how many proxies For personal use only have been received. SECRETARY - Thank you Mr Chairman. I advise that 211 valid proxies have been received representing a total of 120,868,830 shares or 55.91% of the i
Slide 5: Order of business and conduct
2014 AGM Chairman’s Agenda • Bernie will cover Imdex’s performance and operations for the year in more detail; For personal use only • We will then consider the Financial Statements and Reports for the year ended 30th June 2014. At this time I will invite questions and comments on the financial stat
Slide 6: Chairman's Address
2014 AGM Chairman’s Agenda Slide 4 – Chairman’s Address For personal use only Ladies and gentlemen, As we anticipated, the 2014 financial year was a challenging year for Imdex. Our Minerals Division continued to be adversely affected by the cyclical downturn, lower activity levels throughout most of
Slide 7: Chairman's Address - FY14 performance
2014 AGM Chairman’s Agenda improved in step, suggesting a cyclical recovery of the minerals industry was underway. For personal use only Our objective of strengthening and building scale into our Oil & Gas Division also started to yield rewards. A good example is the growth of AMC Oil & Gas in Europ
Slide 8: Chairman's Address - long-term strategy
2014 AGM Chairman’s Agenda I will not spend too much time on performance as Bernie will review the results in some detail shortly. But I would like to note that our Oil & Gas Division has For personal use only achieved year-on-year revenue growth since FY10, which reflects our significant investment
Slide 9: Geographic expansion and technology development
2014 AGM Chairman’s Agenda revenue is now generated outside Australia in regions including the Americas, Europe, Africa and Asia. We believe this is a sound approach and we will continue to focus on expanding our presence in underpenetrated regions during For personal use only FY15. As I mentioned e
Slide 10: Outlook for FY15
2014 AGM Chairman’s Agenda I would like to briefly comment on the outlook for the balance of FY15. For personal use only While we remain cautious, we are optimistic about the outlook for the minerals industry. The signs of improvement that emerged during the fourth quarter of FY14 continued to gain
Slide 11: Receive Financial Statements and Reports
2014 AGM Chairman’s Agenda Item 1 - To receive the Financial Statements and Reports For personal use only The first item of ordinary business deals with the 2014 Annual Report. The 2014 Annual Report has been distributed to all shareholders. Additional copies are also available in the meeting today
Slide 12: Managing Director's Address
2014 AGM Chairman’s Agenda Slide 6 – Managing Director’s Address For personal use only Good morning everyone, it is a pleasure to welcome you here today. During my presentation I will briefly review Imdex’s performance for the 2014 financial year, before providing an update on the current year. I wi
Slide 13: FY14 Snapshot
2014 AGM Chairman’s Agenda For personal use only Slide 7 – FY14 Snapshot As our Chairman mentioned in his Address, the 2014 financial year was one of our most challenging – largely due to the continued cyclical slowdown in the global minerals industry. Notwithstanding these conditions, we continued
Slide 14: FY14 financial results
2014 AGM Chairman’s Agenda • Enhancing the resilience of our Company by developing recurring revenue from our REFLEX HUB applications; and For personal use only • Expanding into new markets, particularly oil and gas, to grow and diversify our revenue streams. All of these strategies are specifically
Slide 15: FY14 Key Metrics
2014 AGM Chairman’s Agenda Encouragingly, conditions within our minerals market began to improve during the fourth quarter as the early signs of a cyclical upswing emerged. For personal use only Robust trading conditions remained in the oil and gas market throughout FY14 and continue to provide many
Slide 16: Cash flow, gearing and workforce
2014 AGM Chairman’s Agenda Operating cash flow of $2.9 million was generated during the year from the $2.8 million EBITA loss, reflecting lower inventory levels and tight working capital management. Inventory and working capital management remain a priority and For personal use only we continue to m
Slide 17: Revenue and Normalised EBITA/EBITDA
2014 AGM Chairman’s Agenda As illustrated by the bar charts on this slide, our revenue peaked in FY12 and decreased in line with the cyclical slowdown in the minerals industry. Combined revenue for FY14 was down 21% on FY13. 61% of this combined revenue For personal use only result was generated by
Slide 18: Minerals Division and VES J/V
2014 AGM Chairman’s Agenda Our Minerals Division, which includes our AMC Minerals and REFLEX businesses, generated positive normalised EBITA of $10.6 million. For personal use only Slide 11 - VES J/V Slide 11 provides more details regarding VES’ financials. FY14 revenue of US$63.7 million was up 12%
Slide 19: Working Capital Management
2014 AGM Chairman’s Agenda Slide 12 – Working Capital Management For personal use only Our working capital bridge is set out on slide 12, where we generated $15.7 million through a diligent approach to our inventory management and debtor collections. C:\Users\pevans\Documents\board\AGM 2014\Script\F
Slide 20: Balance Sheet
2014 AGM Chairman’s Agenda Slide 13 – Balance Sheet For personal use only Net assets decreased during FY14 by $11.6 million, largely due to lower working capital asset balances – particularly in relation to stock for the reasons mentioned earlier, as well as impairment charges already noted. The par
Slide 21: 1Q15 Snapshot
2014 AGM Chairman’s Agenda The increase in our fixed assets largely reflects the purchase of Oil & Gas Division equipment, together with leasehold assets for our new head office in Perth, Western Australia. For personal use only Slide 14 – 1Q15 Snapshot Moving now to the current financial year. Our
Slide 22: 1Q15 divisional results
2014 AGM Chairman’s Agenda Our EBITDA of $5.0 million was higher than the $4.4 million generated in the prior corresponding period. For personal use only Minerals Division revenue of $36.6 million was marginally up on the $35.2 million achieved in the previous year. It was also 11% up on the final q
Slide 23: Operational Update 1Q15
2014 AGM Chairman’s Agenda Our oil and gas market remains robust and AMC Oil & Gas and VES have substantial opportunities for year-on-year growth. We are confident our strategy of investing in this sector is sound and will serve to reduce the impact of any For personal use only future downturns in t
Slide 24: REFLEX rental fleet and recovery
2014 AGM Chairman’s Agenda however, we are confident this technology is now well accepted in the market and the upward trend will continue following the usual seasonal slowdown. For personal use only We continued to see increasing throughput and positive take-up of REFLEX HUB and during 1Q15, our RE
Slide 25: Technology Leadership
2014 AGM Chairman’s Agenda Slide 16 – Technology Leadership For personal use only I would now like to discuss our technology leadership, REFLEX HUB and development of our Oil & Gas Division as they are central to the growth and diversification of our Company. C:\Users\pevans\Documents\board\AGM 2014
Slide 26: Technology Leadership
2014 AGM Chairman’s Agenda Slide 17 – Technology Leadership For personal use only One of our greatest differentiators in the minerals market is our development capabilities and technologies. Our ability to offer our full range of leading technologies gives us meaningful competitive advantage. It req
Slide 27: New technologies and Unique Sumpless Technology
2014 AGM Chairman’s Agenda The red bars represent our new technologies and include the underground and heli-portable solids removal units, together with the REFLEX EZ-Gyro, TN14 Gyrocompass and XRF. These technologies are new to market and provide an For personal use only attractive platform for add
Slide 28: Sumpless solids removal units
2014 AGM Chairman’s Agenda reduced water consumption, more efficient solids removal and reduced wear- and-tear on drilling components. For personal use only Another key benefit is the elimination of ground sumps. The images on the slide show the traditional method of operating with open ground sumps
Slide 29: New REFLEX Technologies
2014 AGM Chairman’s Agenda I will not work through all of our new REFLEX technologies; however, this slide provides a brief overview of some of the technologies we developed throughout the cycle. Each of these new technologies enhances REFLEX’s product or For personal use only service offering and i
Slide 30: REFLEX HUB - Enabling Step Change
2014 AGM Chairman’s Agenda Slide 20 – REFLEX HUB For personal use only Slide 21 – Enabling Step Change C:\Users\pevans\Documents\board\AGM 2014\Script\Final\FY14 AGM Script 15 Oct 2014 final Release.docx Page 30 of 38
Slide 31: REFLEX HUB benefits
2014 AGM Chairman’s Agenda The benefits of REFLEX HUB are often difficult to understand without knowledge of our industries’ operations – and particularly the complex processes involved with the collection, validation and analysis of data obtained For personal use only from the field. However, as a
Slide 32: REFLEX HUB Resource Customers
2014 AGM Chairman’s Agenda • It diversifies our customer base by building on the excellent relationship we have with many drilling contractors and increases our exposure to For personal use only resource companies within the development and production phases of the mining cycle. REFLEX Geochemistry
Slide 33: Oil & Gas Division
2014 AGM Chairman’s Agenda With our customers’ increasing focus on maximising the efficiency and productivity of their operations we will continue to market REFLEX HUB as an enabler of effective data collection, management and analysis solutions. Our For personal use only aim is to reach the point w
Slide 34: Robust Oil & Gas Markets
2014 AGM Chairman’s Agenda Slide 24 – Robust Oil & Gas Markets For personal use only To give some context to the potential of this market, I draw your attention to data taken from the 2013 Spears & Associates’ Oilfield Market Report. This report suggests the size of the global drilling and completio
Slide 35: AMC Oil & Gas and VES
2014 AGM Chairman’s Agenda The strength of our AMC Oil & Gas business was enhanced towards the end of the past financial year with the appointment of Sven Maikranz as CEO. Sven has a wealth of industry experience, having worked with M-I Swaco and For personal use only Schulumberger, and has already
Slide 36: Summary
2014 AGM Chairman’s Agenda The InFlex is the fastest and most accurate downhole survey tool in the oil and gas business and will allow VES to expand its customer base to include the major independent oil and gas companies. For personal use only Slide 25 – Summary Before I conclude my presentation wi
Slide 37: Delivering on strategies and outlook
2014 AGM Chairman’s Agenda So what are we doing to deliver on these strategies? • Continued product development to support customer needs; For personal use only • Diversifying our customer base; • Marketing new technologies; and • Investing in our Oil & Gas Division. Our outlook is encouraging. With
Slide 38: Thanks and Disclaimer
2014 AGM Chairman’s Agenda I would also like to thank our customers, suppliers and consultants for their support and trust that will continue for many years to come. For personal use only I would very much like to thank our Board for their guidance and support. And finally, I would like to thank you