Slide 1: Imdex Limited 1H11 Results Presentation
For personal use only Imdex Limited 1H11 Results Presentation 21 February 2011 Bernie Ridgeway – Managing Director Paul Evans – Chief Financial Officer 1H11 Results Presentation – 21 February 2011 1
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 presenters
Today’s presenters For personal use only Bernie Ridgeway Paul Evans Managing Director Chief Financial Officer / Company Secretary 1H11 Results Presentation – 21 February 2011 3
Slide 4: Presentation overview
Presentation overview For personal use only Overview Bernie Ridgeway 1H11 financial performance Paul Evans Operational review Bernie Ridgeway Minerals Division Oil & Gas Division Strategy and outlook Bernie Ridgeway 1H11 Results Presentation – 21 February 2011 4
Slide 5: Overview
For personal use only Overview Bernie Ridgeway – Managing Director 1H11 Results Presentation – 21 February 2011 5
Slide 6: Continuation of strong performance rebound
Continuation of strong performance rebound For personal use only Record half year performance Consistent revenue and EBITA improvement since 2H09 low Investing through the GFC is supporting our ability to capitalise on improved industry dynamics Simplification of brands and regionalised business wel
Slide 7: Strong financial performance
Strong financial performance For personal use only Key indicator 1H11 1H10 Change Revenue $95.9m $58.4m 64% EBITA (excl non-operational items) $21.2m $7.5m 182% NPAT (excl non-operational items) $12.1m $2.9m 323% Operational cash flow $13.9m $4.6m 202% Gearing (net debt / capital) 18.4% 19.6% - Inte
Slide 8: Operational achievements
Operational achievements For personal use only Strong global uptake of Reflex mining down hole instrumentation Rental tool fleet numbers reach historic highs in1H11 with new record at end Jan 11 Significant impact globally from regional business model - mining Strategic acquisition of Fluidstar, eff
Slide 9: Record revenue level achieved
Record revenue level achieved 120 For personal use only Revenue * ($m) 100 95.9 Minerals 80.3 80 75.9 72.9 69.1 60 57.9 56.7 58.4 45.9 40 20 O&G 0 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 * excludes other income & discontinued operations 1H11 Results Presentation – 21 February 2011 9
Slide 10: Brand representation
Brand representation For personal use only 1H11 Revenue * AMC Flexit ($m) O&G - Oil & Gas Division (15%) AMC Minerals - Minerals Division (85%) Reflex * excludes other income 1H11 Results Presentation – 21 February 2011 10
Slide 11: Record EBITA level achieved
Record EBITA level achieved EBITA * For personal use only 25 ($m) 21.2 19.8 20.0 20.0 20 15 13.2 12.2 10.1 10 7.5 5 4.5 0 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 * excludes discontinued operations and non-operational items 1H11 Results Presentation – 21 February 2011 11
Slide 12: 1H11 financial performance
For personal use only 1H11 financial performance Paul Evans – Chief Financial Officer 1H11 Results Presentation – 21 February 2011 12
Slide 13: Profit & loss
Profit & loss For personal use only ($’000s) 1H11 1H10 Var % Revenue (excl interest income) 95,897 58,394 64% EBITDA 23,791 9,443 152% Depreciation (2,637) (1,935) 36% EBITA 21,154 7,508 182% Amortisation (3,430) (3,089) 11% Net interest expense (1,296) (820) 58% Tax expense (4,348) (746) 483% NPAT
Slide 14: Conservative balance sheet
Conservative balance sheet ($ millions) Dec 10 Jun 10 For personal use only Net cash 15.9 9.0 Receivables 39.8 41.2 Inventory 36.5 28.6 Strong liquidity and Investment in SEH 16.6 6.8 working capital ratios Fixed assets 15.1 13.6 Intangibles 54.9 50.0 Decreased gearing due to Other assets / Deferred
Slide 15: Comfortable gearing levels
Comfortable gearing levels For personal use only 50.0 Additional debt of $14.3m for 45.0 14.3 (5.0) Fluidstar acquisition 40.0 (0.7) $5.0m of AUD debt swapped into 35.0 CAD. Better natural hedge – no 30.0 net impact on debt levels 25.0 $5.0m of loan repayments as 20.0 41.2 40.6 40.6 scheduled 15.0 3
Slide 16: Operational review
For personal use only Operational review Bernie Ridgeway – Managing Director 1H11 Results Presentation – 21 February 2011 16
Slide 17: Minerals Division revenue
Africa Minerals Division Americas Revenue * For personal use only 90 Europe ($m) 81.5 Asia Pacific 80 68.4 15% 63.5 64.7 70 61.4 26% 60 54.0 46.4 50 42.6 2% 40.5 40 57% 30 20 10 0 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 NB: Regional structure adopted 1 July 10 – Comparatives have been reconstru
Slide 18: Minerals Division
Minerals Division For personal use only 26% on 2H10 revenue 75% on 1H10 revenue 85% of Imdex Group revenue Record tool fleet numbers achieved. Further records created early 2H11 Strong uptake of Reflex tools with increased market share AMC drilling fluids brand rolled out globally Regional structure
Slide 19: Record mining tool rental fleet
Record mining tool rental fleet For personal use only Tools on Hire Jun 08 Jun 09 Jun 10 Aug 08 Aug 09 Aug 10 Feb 08 Feb 09 Feb 10 Feb 11 Dec 08 Dec 09 Dec 10 Apr 08 Oct 08 Apr 09 Oct 09 Apr 10 Oct 10 Significant growth from April 09 low point Seasonal slowdown over December - highlighted New record
Slide 20: Oil & Gas Division revenue
Oil & Gas Division For personal use only 18 Revenue * 16.2 16 ($m) 14.4 14 11.8 11.9 12 11.1 10 9.3 8 7.7 6 3.9 4 3.3 2 0 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 * excludes other income & discontinued operations 1H11 Results Presentation – 21 February 2011 20
Slide 21: Oil & Gas Division
Oil & Gas Division For personal use only 21% on 2H10 revenue 21% on 1H10 revenue 15% of Imdex Group revenue – drilling delays experienced due to persistent wet weather in eastern Australia Adjusted Flexit path to market strategy from products to services Continued product development on existing/new
Slide 22: Strategy and Outlook
For personal use only Strategy and Outlook Bernie Ridgeway – Managing Director 1H11 Results Presentation – 21 February 2011 22
Slide 23: On track with strategy
On track with strategy For personal use only Past 1H11 Medium Term End market 2 15% Oil & Gas Minerals 85% Instruments Profit 1 33% Fluids 67% Services Rent / Sell Sales 29% mix 2 Rentals 71% ¹ Based on actual or anticipated EBITA 2 Based on actual or anticipated Revenue 1H11 Results Presentation –
Slide 24: Key business drivers and outlook
Key business drivers and outlook For personal use only Mineral exploration Strong commodity prices spend Exploration activity levels and spend increasing Client rig utilisation % Current high utilisation levels expected to continue Level of tool rentals New tool records set in 1H11 Already exceeded
Slide 25: Global exploration spend (non ferrous)
Global exploration spend (non ferrous) Estimated Exploration Spend Worldwide For personal use only 16.0 US$ Billions 14.0 Source: Metals Economics Group Beacon Securities Estimate 12.0 10.0 8.0 6.0 4.0 2.0 0.0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 26: Oil and Gas E & P expenditure
Oil and Gas E & P expenditure For personal use only Source: BP Statistical Review, IEA World Energy Outlook, Monthly Oil Market Report, Medium- Term Oil Market Report, Barclays. Revised 0310 E&P spending up in 2010 after decreasing in 2009 due to GFC More drilling needed to sustain and increase worl
Slide 27: Summary
Summary For personal use only Strong financial results delivered 1H11 record revenue and profit levels 1.75 cents per share fully franked interim dividend Record mining tool rental numbers Strong balance sheet with comfortable gearing Growth initiatives Mud-Data acquisition drives Oil & Gas fluids g
Slide 28: Appendices
For personal use only Appendices 1H11 Results Presentation – 21 February 2011 28
Slide 29: Business overview
Business overview For personal use only 2 divisions defined by 2 end markets mining/mineral exploration oil & gas Own IP, manufacture products which are sold / rented to 3rd parties Strong investment in product development leading technology continuous innovation and product development Global footp
Slide 30: Structured to meet client needs
Structured to meet client needs For personal use only Market Minerals Oil & Gas Product Fluids Instruments Fluids Instruments Brand 1H11 Results Presentation – 21 February 2011 30
Slide 31: Comprehensive product portfolio
Comprehensive product portfolio For personal use only Core Fluids Survey Gyroscopes Orientation Cool and lubricate Determines the Allows geologists Allows precision the drill bit while exact position of a to determine the drilling in complex returning cuttings core sample exact trajectory of multipl