Slide 1: FY10 Results Presentation
For personal use only Imdex Limited FY10 Results Presentation 16 August 2010 Bernie Ridgeway – Managing Director Paul Evans – Chief Financial Officer FY10 Results Presentation – 16 August 2010 1
Slide 2: Presentation Overview
Presentation Overview For personal use only Overview FY10 financial performance Operational review Drilling Fluids & Chemicals Division Down Hole Instrumentation Division Strategy and Outlook FY10 Results Presentation – 16 August 2010 2
Slide 3: Overview
For personal use only Overview Bernie Ridgeway – Managing Director FY10 Results Presentation – 16 August 2010 3
Slide 4: Solid performance in challenging conditions
Solid performance in challenging conditions For personal use only Revenue 2% to $134.3m (FY09 - $137.0m) EBITA excluding non-operational items 15% to $20.7m (FY09 - $24.5m) NPAT excluding non-operational items 14% to $9.8m (FY09 - $11.3m) Impairment charges of $34.0m (1H10 $28.4m; 2H10 $5.6m) Report
Slide 5: FY10 – a year of halves
FY10 – a year of 2 halves For personal use only First half Trading activity robust in Asia/Pacific Canada, Africa and Latin America slower to recover Margins due to slower recovery in other major mining regions But … 1H10 showed improvement on 2H09 low Second half Significantly improved trading cond
Slide 6: Revenue – returning to growth
Revenue – returning to growth Revenue * For personal use only 90 ($m) 80.3 80 75.9 72.9 69.1 DHI 70 60 57.9 56.7 58.4 50 45.9 40 DFC 29.8 30 23.1 20 10 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 * excludes other income & discontinued operations FY10 revenue reflects improved trading conditi
Slide 7: Global presence
Global presence FY10 vs FY09 Revenue For personal use only Europe 48% $4.3m Asia Pacific 9% $82.6m Americas Europe 3% 3% $30.7m Americas 23% Africa Asia Pacific 28% Africa 62% $16.7m 12% FY10 revenue FY10 Results Presentation – 16 August 2010 7
Slide 8: EBITA – returning to growth
EBITA – returning to growth EBITA * For personal use only 25 ($m) 19.8 20.0 20.0 20 15 13.2 12.2 10.1 10 7.5 5.4 5 4.5 2.0 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 * excludes discontinued operations and non-operational items EBITA trend similar to revenue Continued to spend on R&D through
Slide 9: FY10 financial performance
For personal use only FY10 financial performance Paul Evans – Chief Financial Officer FY10 Results Presentation – 16 August 2010 9
Slide 10: Profit & loss
Profit & loss For personal use only ($m) FY10 FY09 Var % Revenue (excl interest income) 134.3 137.0 2% EBITDA 24.9 27.8 11% Depreciation (4.2) (3.3) 26% EBITA 20.7 24.5 15% Amortisation (6.4) (6.5) 3% Net interest expense (0.7) (0.9) 7% Tax expense (3.8) (5.8) 35% NPAT before non recurring items 9.8
Slide 11: Non-cash impairment write downs
Non-cash impairment write downs For personal use only Area $m Comment Mark-to-market valuation Sino Gas and 4.9 (1H10) Cash cost $7.5m Energy Holdings Limited (SEH) 5.6 (2H10) Carrying value $6.8m (30 Jun 10) Market value $8.1m (13 Aug 10) AMC performed well. Asia Pacific strong. Other regions slowe
Slide 12: Conservative balance sheet
Conservative balance sheet ($ millions) Jun 10 Jun 09 For personal use only Low gearing Net cash 9.0 12.0 Receivables 41.2 23.4 Low capital intensity Inventory 28.6 26.4 Working capital Investment in SGE 6.8 20.5 Fixed assets 13.6 10.8 investment supports Intangibles 50.0 79.2 recovery Other assets
Slide 13: Decreasing debt levels
Decreasing debt levels Vendor payment - $2.1m 31 July 09 For personal use only 40.0 35.5 35.0 34.0 32.0 No further outstanding vendor 30.0 liabilities 25.0 AUD and SEK loans paid down as 20.0 scheduled 15.0 HPs used to finance SCUs and 10.0 other large equipment items 5.0 - $6.8m raised in CAD to pr
Slide 14: Operational review
For personal use only Operational review Bernie Ridgeway – Managing Director FY10 Results Presentation – 16 August 2010 14
Slide 15: Drilling Fluids and Chemicals Division
Drilling Fluids and Chemicals Division Revenue For personal use only ($m) FY09 FY10 91.7 89.6 60.0 50.5 48.6 50.0 42.3 43.4 41.2 41.0 40.0 33.3 29.1 30.0 23.3 20.0 18.4 10.0 - 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 FY10 Results Presentation – 16 August 2010 15
Slide 16: Drilling Fluids and Chemicals Division
Drilling Fluids and Chemicals Division For personal use only FY10 revenue 2% 2H10 revenue 19% on 1H10 Upward trend in revenue and margin expected to continue 22% from oil & gas down from 25% at 1H10 due to rapid growth in minerals Solids control units at early stages of market introduction Strong re
Slide 17: Down Hole Instrumentation Division
Down Hole Instrumentation Division For personal use only Continuing Revenue ($m) FY09 FY10 45.3 44.7 35.0 29.5 29.8 30.0 26.8 27.3 24.6 25.0 20.0 16.9 17.4 15.5 15.0 10.0 6.4 4.8 5.0 - 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 FY10 Results Presentation – 16 August 2010 17
Slide 18: Down Hole Instrumentation Division
Down Hole Instrumentation Division For personal use only FY10 revenue 1% on FY09 2H10 revenue 57% on 1H10 Upward trend in revenue and margin expected to continue DHI – Oil & Gas Target INS tool - commercial High Temperature tools (including MEMS) - commercial Drop tools - near commercial Successful
Slide 19: Mining tool rental fleet at a high
Mining tool rental fleet at a high For personal use only June 10 high Jul 08 Tools on Hire previous peak April 09 low Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun 07 07 08 08 08 08 08 08 09 09 09 09 09 09 10 10 10 160% growth from April 09 low to June 10 high Growth expected t
Slide 20: Strategy and Outlook
For personal use only Strategy and Outlook Bernie Ridgeway – Managing Director FY10 Results Presentation – 16 August 2010 20
Slide 21: On track with strategy
On track with strategy For personal use only Medium Term Past FY10 (2-4 years) Early Stage End-market exposure2 1% 17% Minerals 21% Late Stage 49% 50% Minerals 62% Oil & Gas Management’s best estimate Management’s best estimate Fluids Divisional 19% Profit1 Downhole 38% Instrumentation 50% 62% 31% S
Slide 22: Key business drivers and outlook
Key business drivers and outlook Mineral exploration Robust commodity prices and funding For personal use only spend Major/intermediate companies exploring Well funded juniors commencing spending Client rig utilisation % Major clients flagging higher utilisation levels - high 70%s by end 2010 Level
Slide 23: Global exploration spend (non ferrous)
Global exploration spend (non ferrous) For personal use only Exploration by commodity: Estimated Exploration Spend Worldwide 14.0 US$ Billions Gold - 44% 12.0 Base Metals - 33% 10.0 Diamonds - 5% 8.0 Uranium - 8% 6.0 Exploration by stage: Greenfields - 33% 4.0 Minesite/late stage - 67% 2.0 2010 acti
Slide 24: 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 25: New structure
New structure FY10 For personal use only Division Region Brands Revenue $111.2m 83% Europe Africa 1% 14% Minerals Americas Asia Pacific 25% 60% $23.1m Oil & Gas 17% Global FY10 Results Presentation – 16 August 2010 25
Slide 26: Summary
Summary For personal use only Focused strategy delivered results 2H10 revenue and EBITA returned to growth, with growth trend continuing New peak in mining tool rental numbers with further growth expected Healthy balance sheet with comfortable gearing Strongly positioned for future growth Well posit
Slide 27: Appendices
For personal use only Appendices FY10 Results Presentation – 16 August 2010 27
Slide 28: Business overview
Business overview 2 Divisions: Drilling fluids & chemicals (DFC); Down hole instrumentation (DHI) For personal use only 2 end markets: mining/mineral exploration; oil & gas Own IP, manufacture products which we sell/rent to 3rd parties Strong investment in product development – leading technology Gl
Slide 29: Corporate snapshot
Corporate snapshot For personal use only Board of Directors Ross Kelly Non-Executive Chairman Bernie Ridgeway Managing Director Kevin Dundo Non-Executive Director Magnus Lemmel Non-Executive Director Betsy Donaghey Non-Executive Director Paul Evans Company Secretary / CFO Capital Structure Shares on
Slide 30: 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