Slide 1: ASX cover letter: Conference Presentation
For personal use only 8 May 2008 Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Conference Presentation Please find attached a copy of the Imdex Limited presentation being made at conferences in Singapore and US. Yours f
Slide 2: Imdex Limited May 2008
For personal use only Imdex Limited May 2008 1
Slide 3: 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 4: How Are We Structured?
How Are We Structured? For personal use only Listed entity Operating divisions Trading companies 3
Slide 5: What Do We Sell? Drilling Fluids
What Do We Sell? For personal use only Drilling Fluids Purpose: cool and lubricate the drill bit, keep the drill hole open and return cuttings to the surface Consumable Manufacture and sell Range of industries globally – Mineral exploration – Mining – Oil & Gas – Water Well – Civil Industries Austra
Slide 6: What Do We Sell? Down Hole Instrumentation
What Do We Sell? For personal use only Down Hole Instrumentation Types – Survey instruments – Core orientation Leading technology – MEMS solid state gyro – Inertial navigation systems – Electronic/digital core orientation tool We manufacture and rent/sell IP ownership Solid state gyro with the relat
Slide 7: Who Are Our Customers?
Who Are Our Customers? For personal use only Global distribution and supply agreements with: Oil and Gas clients: And a broad range of medium to smaller sized clients globally 6
Slide 8: Where is Imdex?
Where is Imdex? For personal use only Global Reach Americas Europe East Vallentuna (Sweden) Calgary Sussex Timmins Riegel Aktau (Kazakhstan) Africa Asia Pacific Johannesburg Brisbane Perth Santiago Kalgoorlie 7
Slide 9: What Do Our Customers Want?
What Do Our Customers Want? For personal use only Increased efficiency, increased efficiency, increased efficiency Global supply and service capability Quality of service – Imdex staff product knowledge – Client training – On site advice Fluids – resource industry focus – Fit for purpose quality pro
Slide 10: What Are Our Critical Skills?
What Are Our Critical Skills? For personal use only Quality people – Industry respected operational personnel – Experienced locally based management – Globally mobile people Customer service Strong brands IP ownership Own manufacture = control of supply Scalability – Low labour component – High reve
Slide 11: Who Are Our Key People?
Who Are Our Key People? For personal use only Industry respected operational management Gary Weston Group GM – founder of AMC and over 30 years experience, Imdex and Baroid Derek Loughlin Divisional Manager - Instrumentation – 19 years experience, Boart Longyear and others Keith Steel Divisional Man
Slide 12: What Have We Achieved? Revenue
What Have We Achieved? For personal use only Revenue ($M) Normalised Revenue by Division Normalised Revenue by Region Forecast Forecast $160.0 $152m $160.0 $152m $140.0 $140.0 $120.0 $120.0 $60.8m $100.0 $100.0 $41.5m $80.0 $80.0 $60.0 $60.0 $40.0 $40.0 $20.0 $20.0 $0.0 $0.0 FY04 FY05 FY06 FY07 FY08
Slide 13: What Have We Achieved? Organic vs. Acquisition Growth
What Have We Achieved? For personal use only Organic vs. Acquisition Growth ($M) Normalised Revenue Growth Normalised EBITA Growth $80.0 +16% $25.0 +29% $70.0 +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 Th
Slide 14: What Have We Achieved? EPS, DPS and Profits
What Have We Achieved? For personal use only EPS, DPS and Profits Earnings and Dividends per Share Normalised EBITA Forecast 14.0 c $45.0 $42m 12.0 c $40.0 $35.0 10.0 c $30.0 8.0 c $25.0 6.0 c $20.0 4.0 c $15.0 2.0 c $10.0 $5.0 0.0 c $0.0 -2.0 c -$5.0 -4.0 c FY04 FY05 FY06 FY07 FY08 -$10.0 FY04 FY05
Slide 15: How Do We Compare? Profit per Employee
How Do We Compare? For personal use only Profit per Employee EBIT/Employee Number of A$ ‘000 Employees 100 Labour intensity - EBIT/employee, FY07 30,000 90 25,000 80 70 20,000 60 50 15,000 40 10,000 30 20 5,000 10 0 0 AAX IMD IDL AJL TBG HST TSE ORI LEI NOD BKN MAH MND GRD CDD RCR BOL ASL EAL LYL UG
Slide 16: How Do We Compare? Profit Margins
How Do We Compare? For personal use only Profit Margins Forced ranking by EBIT margin, FY08F 25% 20% 15% 10% 5% 0% AAX IMD IDL AJL TBG HST TSE ORI LEI BKN NOD CDD MND GRD MAH RCR EHL BOL LYL ASL EAL UGL ANG VMG MRM SDM BLY NMS CPB NFK FWD NWH WOR DOW SWK Source: ABN AMRO Construction & Engineering S
Slide 17: What Have We Achieved? Balance Sheet
What Have We Achieved? For personal use only Balance Sheet Dec 07 Jun 07 Strong cash $000’s $000’s Cash 16,614 15,271 Reduced debt position Receivables 32,381 27,806 Inventory 17,158 13,839 Investment in SGE 16,746 16,056 Uplift in assets due to acquisitions Property, plant & equipment 8,481 13,207
Slide 18: What Is Our Strategy? Short Term Priorities
What Is Our Strategy? For personal use only Short Term Priorities Integrate new acquisitions and expand manufacturing – Suay – Poly-Drill – Southernland – SEG Expand global footprint – Africa – Latin America – Caspian Sea region Tool improvements/upgrades New tools Dispose of non core SGE investment
Slide 19: Major Growth Initiative: Oil & Gas Down Hole Instrumentation
Major Growth Initiative For personal use only Down hole instrumentation – oil & gas industry Penetrate oil & gas down hole instrumentation market (Estimated market size US$500m p.a.) Major service providers are Scientific Drilling and Gyrodata who use their proprietary technology (not available to o
Slide 20: What Are Our Strategic Objectives?
What Are Our Strategic Objectives? For personal use only Become a leading global supplier of products to the drilling industry Global Growth Shareholder Increased global representation Returns Expand oil & gas business Profitability Maintain quality people Fluids/Tools Dividends Growth - Organic/Acq
Slide 21: What will Imdex look like in the medium term?
What will Imdex look like in the medium term? For personal use only Strong relationships, leading technology, sustainable growth and attractive end-markets Past Present Medium Term Objective Greater penetration into Oil & Gas markets with End-market Early Stage exposure¹ 1% Fluids and Downhole Miner
Slide 22: What Are Our Business Risks?
What Are Our Business Risks? For personal use only Exploration expenditure levels – Mineral – Oil & gas Push back from competitors New entrants Core orientation being performed on client site 21
Slide 23: Global Mineral Exploration Spend
Global Mineral Exploration Spend For personal use only Estimated Exploration Spend Worldwide (Non Ferrous) Budgeted mineral exploration expenditure a record US$13.1B in US$ Billions 2008 - up 25% on US$10.5B in $14.0 2007 $12.0 Exploration by commodity is Gold (42%), Base Metals (36%), Diamonds (10%
Slide 24: Global Mineral Exploration Spend by Region and Stage
Global Mineral Exploration Spend For personal use only Worldwide Exploration Budgets* Worldwide Exploration Budgets* by Region 2007 (%) by Stage 2007 (%) Pacific / SE Asia 4% United States 8% Minesite 20% Australia 12% Grass roots 39% Africa 16% Rest of World 17% Late stage 41% Canada 19% Latin Amer
Slide 25: What Is The Imdex Value-Add?
What Is 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 24
Slide 26: IMDEX Limited: Australia's Global Drilling Products & Services Company
For personal use only IMDEX Limited Australia’s Global Drilling Products & Services Company 25
Slide 27: Appendix – ASX Details
Appendix – ASX Details For personal use only Current share price $2.27 Number of shares 183.41m Market capitalisation $416.34m December 2007 Key Ratios Gearing (D/D+E) 24% Current Ratio (CA/CL) 2.73 Quick Ratio (CA-Inv/CL) 2.17 Interest Cover (NPBT/Int) 12.7x 26
Slide 28: Appendix – Register/Corporate
Appendix – Register/Corporate For personal use only Top 10 Shareholders Ian Burston Non-Exec Chairman (as at 1 May 2008) Fiberform Vinidic Holding AB 11.3% Bernie Ridgeway Managing Director HSBC Custody Nominees (Australia) 6.5% Ross Kelly Non-Exec Director Kevin Dundo Non-Exec Director National Nom