Slide 1: Imdex Limited FY08 Half Year Results Presentation
For personal use only Imdex Limited FY08 Half Year Results Presentation February 2008
Slide 2: 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
Slide 3: Today's Presentation
TODAY’S PRESENTATION For personal use only ¾ Introduction ¾ FY08 First Half ¾ SEG Acquisition ¾ Strategy for FY08 ¾ Outlook
Slide 4: Introduction
For personal use only Introduction
Slide 5: Introduction
INTRODUCTION For personal use only ¾ Imdex is a Perth based, ASX listed company (ASX Code: IMD) supplying drilling products and services globally ¾ The industries serviced include: Mineral Exploration; Mining; Oil and Gas; Water Well and Civil ¾ Imdex is a technology market leader ¾ Imdex continues
Slide 6: Introduction – Operating Divisions: Fluids and Chemicals
INTRODUCTION – Operating Divisions For personal use only Fluids and Chemicals ¾ Manufacture and sale of fluids and chemicals to resources, oil & gas, water well and civil industries – onshore focus globally ¾ These fluids cool and lubricate the drill bit, keep the drill hole open and return cuttings
Slide 7: Introduction – Operating Divisions: Products and Services
INTRODUCTION – Operating Divisions For personal use only Products and Services ¾ We develop and manufacture our down hole instrumentation using the IP we own ¾ Imdex provides the leading down hole survey and core orientation instrumentation for the minerals market worldwide ¾ Distribution and supply
Slide 8: Introduction – Global Reach
INTRODUCTION – Global Reach For personal use only Major Operational Locations Other Operations Europe Germany Sweden Kazakhstan Switzerland Mongolia Turkey UK Vallentuna (Sweden) East Sussex (UK) Timmins Calgary Riegel (Germany) Aktau (Kazakhstan) China Indonesia India Laos Malaysia Congo New Zealan
Slide 9: Introduction – Group Structure
INTRODUCTION – Group Structure For personal use only IMDEX LIMITED Fluids & Products & Chemicals Division Services Division Australian Suay Southern- Samchem Mud Poly-Drill *SEG Flexit Reflex Chardec Energy land Company *effective 1 January 2008
Slide 10: FY08 First Half
For personal use only FY08 First Half
Slide 11: FY08 First Half – Financial Highlights
FY08 FIRST HALF – Financial Highlights For personal use only up 115% up 87% up 74% up 45% up 44% 1.75 cents Net Profit Basic EPS Fully Revenue after Tax Operating (continuing franked from EBITA from from cash flow operations) dividend operations operations operations before tax 6.34 cents per share
Slide 12: FY08 First Half – Operational Highlights
FY08 FIRST HALF – Operational Highlights For personal use only ¾ Fluids and Chemicals Division ¾ Acquisition of Poly-Drill in Canada for $3.7m – 1 Jul 07 ¾ Acquisition of 75% of Suay in Kazakhstan for $0.5m – 1 Jul 07 ¾ Acquisition of Southernland in Chile for $2.9m – 1 Nov 07 ¾ We now operate in al
Slide 13: FY08 First Half – Income Statement
FY08 FIRST HALF – Income Statement For personal use only Normalised Revenue by Division Normalised EBITA $25.0 $80.0 $75.7m 87% $21.1m $70.0 $20.0 normalised $60.0 growth $15.0 $50.0 $40.0 $10.0 $30.0 $20.0 $5.0 $10.0 $0.0 $0.0 1H04 1H05 1H06 1H07 1H08 1H04 1H05 1H06 1H07 1H08 Fluids and Chemicals P
Slide 14: FY08 First Half – Income Statement
FY08 FIRST HALF – Income Statement For personal use only Normalised Revenue Growth Normalised EBITA Growth $80.0 +16% $25.0 $70.0 +29% +24% $60.0 $20.0 +63% $50.0 $15.0 $40.0 $30.0 $10.0 $20.0 $5.0 $10.0 $0.0 $0.0 1H07 Organic Acquisition 1H08 1H07 Organic Acquisition 1H08 The majority of our revenu
Slide 15: FY08 First Half – Income Statement
FY08 FIRST HALF – Income Statement For personal use only First Half FY08 First Half FY07 $000’s $000’s Fluids and Chemicals Revenue 42,302 29,073 Products and Services Revenue (incl Surtron) 33,421 23,451 Other Revenue 1,066 617 Normalised Revenue 76,789 53,141 45% EBITA (incl Surtron) 21,057 11,248
Slide 16: FY08 First Half – Balance Sheet
FY08 FIRST HALF – Balance Sheet For personal use only Dec 07 Jun 07 Strong cash and reduced debt $000’s $000’s position post Surtron divestment Cash 16,614 15,271 Receivables 32,381 27,806 Further uplift in total assets due to Inventory 17,158 13,839 recent acquisitions Financial assets 16,746 1
Slide 17: Imdex Snapshot
IMDEX SNAPSHOT For personal use only Current share price $2.14 Number of shares 182.93m Market capitalisation $ 391.47m Basic earnings per share 6.34¢ Earnings per share growth 74% Dividend per share 1.75¢ Dividend payout ratio 27.6% Gearing (D/D+E) 24% Current Ratio (CA/CL) 2.73 Quick Ratio (CA-Inv
Slide 18: Imdex Snapshot – Top Shareholders
IMDEX SNAPSHOT For personal use only Top 10 Shareholders (as at 14 February 2008) Ian Burston Non-Exec Chairman Fiberform Vinidic Holding AB 11.4% Bernie Ridgeway Managing Director National Nominees 5.7% Ross Kelly Non-Exec Director J P Morgan Nominees 5.7% Kevin Dundo Non-Exec Director ANZ Nominees
Slide 19: SEG Acquisition
For personal use only SEG Acquisition
Slide 20: System Entwicklungs GmbH
SYSTEM ENTWICKLUNGS GmbH For personal use only ¾ Acquired 100% of issued share capital, effective 1 January 2008 ¾ Purchase price of $13.8m paid in cash at settlement ¾ Funded from operating cash flow and a $7m Westpac facility ¾ Founded in 1976 ¾ Based in Riegel, Germany ¾ SEG develop, manufacture
Slide 21: System Entwicklungs GmbH
SYSTEM ENTWICKLUNGS GmbH For personal use only ¾ SEG’s main product is the Target INS ¾ An advanced down hole survey system using adapted aerospace inertial navigation technology – world class ¾ Allows for continuous on the move survey and north finding ability - cost savings ¾ Imdex will supply tec
Slide 22: System Entwicklungs GmbH – Why SEG?
SYSTEM ENTWICKLUNGS GmbH For personal use only ¾ Why SEG? ¾ Complementary to the Imdex Down hole Instrumentation division ¾ Expands the Imdex range of products ¾ Enhances Imdex’s position as a leading global supplier of technologically advanced down hole survey systems ¾ Facilitates entry into the g
Slide 23: Strategy for FY08
For personal use only Strategy for FY08
Slide 24: Global Strategy – Second Half
GLOBAL STRATEGY – Second Half OUTLOOK For personal use only Fluids and Chemicals Products and Services • Become 5th global fluids Outcomes • Focus on integrating SEG in player behind M-I, • Increased global presence Germany Halliburton, Baker Hughes & • Enhanced reputation • Grow the division furthe
Slide 25: Global Exploration Spend
GLOBAL EXPLORATION SPEND For personal use only Budgeted mineral exploration Estimated Exploration Spend Worldwide (Non Ferrous) expenditure a record US$ Billions US$10.5B in 2007 - up 40% $10.0 on the US$7.5B in 2006. Including uranium, total is $9.0 US$11.4B $8.0 Exploration by commodity is $7.
Slide 26: Global Exploration Spend
GLOBAL EXPLORATION SPEND For personal use only Worldwide Exploration Budgets* Worldwide Exploration Budgets* by Region 2007 (%) by Stage 2007 (%) Pacific / United Latin SE Asia States America Minesite Australia 4% Grass 8% 24% 20% roots 12% 39% 16% 19% Africa 17% 41% Canada Late Stage Rest of World
Slide 27: Outlook
For personal use only Outlook
Slide 28: FY08 Full Year Outlook
FY08 FULL YEAR OUTLOOK For personal use only FY08 Forecast Revenue FY08 Forecast EBITA $160.0 $ 152m $45.0 $ 42m $140.0 $40.0 $35.0 $120.0 $30.0 $100.0 $25.0 $80.0 $20.0 $60.0 $15.0 $40.0 $10.0 $20.0 $5.0 $0.0 $0.0 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 Based on our first half results we
Slide 29: Imdex as a "Flight-to-Quality" Investment Choice
IMDEX AS A “FLIGHT-TO-QUALITY” INVESTMENT CHOICE For personal use only “…periods of volatility are S/P ASX 200 exactly the right time to refocus January 2008 Cash on hand on fundamentals…” of $16.6m Current assets Global Research Highlights – Merrill Lynch 25 Jan 08 of $83.8m against current Finance
Slide 30: The Imdex Value Add
THE IMDEX VALUE ADD For personal use only Employees choose Strong Investors choose Imdex growth Imdex Leading Quality service technology, IP ownership Suppliers choose Customers choose Imdex Imdex Global reach
Slide 31: Imdex Limited
For personal use only IMDEX Limited Australia’s Global Drilling Products & Services Company - a service provider to the natural resources industries