Slide 1: FY12 results presentation
For personal use only Imdex Limited FY12 results presentation 20 August 2012 Bernie Ridgeway - Managing Director Paul Evans - Chief Financial Officer Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide FY12 Results - August 2012 1
Slide 2: Today's agenda
Today’s agenda For personal use only Overview Bernie Ridgeway FY12 financial performance Paul Evans Operational review Bernie Ridgeway Strategy & outlook Bernie Ridgeway Bernie Ridgeway Paul Evans Managing Director Chief Financial Officer / Company Secretary Providing Innovative Drilling Fluids and
Slide 3: Overview
For personal use only Overview Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide FY12 Results - August 2012 3
Slide 4: Record performance across all key metrics
Record performance across all key metrics For personal use only Combined revenue (36%), EBITA (56%) and NPAT (58%) Minerals division revenue (36%) Strong balance sheet Low gearing Strong pre-tax operating cash flows (29%) Record number of Reflex instruments on rent Substantial inc
Slide 5: Growth across all financial metrics
Growth across all financial metrics For personal use only ($m) FY12 FY11 Var. Statutory revenue 269.6 205.2 31% Combined revenue* 278.9 205.2 36% EBITA 75.2 48.1 56% NPAT 45.8 29.0 58% Pre-tax operating cash flow 56.9 44.0 29% Gearing (ND / (ND + E)) 22.3% 13.4% Interest cover 43 times 17 tim
Slide 6: Record revenue
Record revenue For personal use only Combined revenue* ($m) 278.9 36% on FY11 2H12 27% on 2H11 205.2 Minerals: 87% of total revenue 142.0 137.0 134.3 Strong performance in all regions 103.8 Oil & Gas: Minerals 13% of total revenue Strong start to 1H13 Share of DHS JV revenue - $9
Slide 7: Strength through geographic diversification
Strength through geographic diversification For personal use only Americas 30% Increasingly diversified business by geographic region 49% ~50% of FY12 growth came from Africa Americas 17% >80% of FY12 growth was offshore Europe 6% Future offshore growth rate expected to 26% outstrip Asia Pac
Slide 8: Record EBITA
Record EBITA For personal use only EBITA * 56% on FY11 ($m) 2H12 37% on 2H11 75.2 Strong Minerals performance in all major mining regions Investment in O&G business in FY12 48.1 to generate profits in FY13 and beyond 38.8 EBITA margin of 27% on combined revenue 24.5 22.3 20.7 DHS JV:
Slide 9: FY12 Financial Performance
For personal use only FY12 Financial Performance Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide FY12 Results - August 2012 9
Slide 10: Profit & loss
Profit & loss For personal use only ($m) FY12 FY11 Var. % Combined revenue * 278.9 205.2 36% EBITDA (incl equity accounted DHS JV result) 82.0 53.8 52% Depreciation (6.8) (5.7) 18% EBITA 75.2 48.1 56% Amortisation (6.0) (6.8) 12% Net interest expense (1.7) (2.8) 37% Tax expense (21.7) (9.5) 1
Slide 11: Strong balance sheet
Strong balance sheet ($m) Jun 12 Jun 11 For personal use only Net cash 11.2 18.4 Receivables 59.7 50.2 Good cash position Inventory 52.1 40.6 Net debt of $48.2m Investment in SEH 21.4 16.1 DHS JV 24.3 - Low gearing of 22.3% Fixed assets 19.7 17.3 Investing in inventory to Intangibles 61.1 55
Slide 12: Operational Review
For personal use only Operational Review Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide FY12 Results - August 2012 12
Slide 13: Minerals division
Minerals division 36% on FY11 For personal use only Revenue 2H12 22% on 2H11 ($m) Europe 3% Record Reflex fleet numbers Africa 19% Integration of ADS Integration of System Mud (Brazil) enhances geographic reach Americas 31% SRU roll-out commenced late in 2H12 in Australia Outlook for
Slide 14: Sustainable revenue base
Sustainable revenue base FY12 Minerals Revenue For personal use only Majority of minerals revenue from development and production by major/intermediate companies Others Junior 16% Production 19% Exploration 24% 29% Iron Gold 14% 49% Major / Intermediate Development 81% Copper 47% 21% Commodity Stage
Slide 15: Record Reflex rental fleet
Record Reflex rental fleet For personal use only Number of instruments on rent JUN 10 OCT 10 FEB 11 JUN 11 OCT 11 FEB 12 JUN 12 New and updated instrumentation to generate market share gains Record instrumentation fleet numbers expected in FY13 Providing Innovative Drilling Fluids and Advanced D
Slide 16: Oil & Gas division
Oil & Gas division Combined revenue* For personal use only 36% on FY11 ($m) 37.2 2H12 64% on 2H11 Includes $9.3 from DHS JV DHS JV Outlook for FY13: 28.0 27.5 Significant revenue and profit growth within DHS JV 23.0 DHS is one of the largest global providers of down hole survey 17.0 se
Slide 17: Outlook
For personal use only Outlook Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide FY12 Results - August 2012 17
Slide 18: On track with strategy
On track with strategy For personal use only Past FY12 Medium term End market Oil & Gas 13% Minerals 100% 87% Geographic Asia Pacific reach Other 100% 53% 47% Rent / Sell Sales 32% mix 100% Rentals 68% Note: All numbers based on actual or anticipated combined revenue Providing Innovative Drilling Fl
Slide 19: Estimated global exploration/development spend (non-ferrous)
Estimated global exploration/development 22.5 20.8 spend (non-ferrous) (US$Bn) For personal use only 20.4 20.0 19.3 18.2 18.0 17.1 13.2 11.5 10.4 7.5 7.7 5.2 5.1 4.6 3.5 3.7 3.5 2.5 2.9 2.8 2.6 2.2 2.4 1.9 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 20: Solids Removal Units (SRUs) - Technology
Solids Removal Units (SRUs) For personal use only Technology Unique technology for diamond drilling industry Surface and underground Provisional patents to protect IP First mover advantage Previously - drilling fluid sumps Now - fully enclosed system Providing Innovative Drilling Fluids and
Slide 21: Solids Removal Units (SRUs) - Advantages
Solids Removal Units (SRUs) For personal use only Advantages Low environmental footprint Reduced operating costs: Low wear & tear Better water management Simple mob/demob Significant global demand (mostly from majors) Rental model for greater economic return Global application Glob
Slide 22: Comprehensive product offering
Comprehensive product offering For personal use only SRU Fluids Core Orientation Gyro Down Hole Survey Magnetic Down Hole Survey Directional Equipment Exploration Development Production 29% revenue 47% revenue 24% revenue Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Wo
Slide 23: Key business drivers and outlook
Key business drivers and outlook For personal use only Driver FY13 Outlook Exposure to Medium to long term project horizons Majors/Intermediates Spend through the cycle 80% of FY12 Minerals revenue from Major and Intermediate companies Exploration drilling MEG forecast robust exploration and develop
Slide 24: Record results across all key financial metrics
Record results across all key financial metrics For personal use only FY12 – Record results Record revenue, EBITA & NPAT Record operating cash flow Strong balance sheet with low gearing Substantial increase in dividend FY13 – Positive outlook for sustainable growth Underlying fundamentals
Slide 25: Disclaimer
Disclaimer For personal use only 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. Th