Slide 1: East Coast Roadshow cover letter
216 Balcatta Road, Balcatta Western Australia 6021 PO Box 1262, Osborne Park Western Australia 6916 Tel: +61 (0) 8 9445 4020 Fax: +61 (0) 8 9445 4042 imdex@imdexlimited.com www.imdexlimited.com ABN 78 008 947 813 For personal use only 23 March 2015 Company Announcements Office ASX Limited Exchange C
Slide 2: Investor Presentation March 2015
For personal use only Investor Presentation March 2015 1
Slide 3: Agenda
Agenda For personal use only • Overview • Business Overview – Minerals and Oil & Gas • Global Business • Financial Update 1H15 • Minerals Division • Technology Leadership • Oil & Gas Division • Summary • Appendices 2
Slide 4: Overview
Overview For personal use only • Market conditions in the minerals sector improved during 1H15 Financial (1H15) • Activity in the oil and gas sector impacted by the fall in oil price (Audit Review) • Solid balance sheet maintained and well positioned for 2015 • Minerals market – early signs of cycle
Slide 5: 1H15 Financial Summary
1H15 Financial Summary For personal use only • Combined revenue of $114.4 million(1), up 12.3% (1H14: $101.9 million); • Growth seen in both Minerals and Oil & Gas Divisions; • EBITDA of $20.7 million(2), down 14% (1H14: $24.2 million); • Normalised EBITDA of $8.6 million, up 32.3% (normalised 1H14:
Slide 6: Global Business: Increasing Combined Revenue
Global Business Increasing Combined Revenue For personal use only 5
Slide 7: Minerals Division
For personal use only Minerals Division 6
Slide 8: Minerals Division
Minerals Division For personal use only • Minerals Division contributed 62% of the Company’s combined revenue • 11% increase on the prior corresponding period 7
Slide 9: Minerals Division - Revenue Base
Minerals Division - Revenue Base Minerals revenue largely For personal use only • sourced from intermediate and major mining companies • Majority of revenue from development and production projects • Diverse mix of commodity exposures – largely gold/copper • Outside of seasonal shutdown, month-on-mo
Slide 10: Summary and Outlook: Technology Leadership
For personal use only Summary and Outlook Technology Leadership 9
Slide 11: The Reflex Story...
For personal use only The Reflex Story...
Slide 12: The Reflex Story...
For personal use only The Reflex Story...
Slide 13: The Reflex Story...
The Reflex Story... For personal use only 12
Slide 14: The Reflex Story...
The Reflex Story... For personal use only 13
Slide 15: The Reflex Story...
The Reflex Story... For personal use only 14
Slide 16: REFLEX HUB - Blue Chip Global Customer Base
REFLEX HUB – Blue Chip Global Customer Base For personal use only 15
Slide 17: SRU Growth Drivers & Benefits
SRU Growth Drivers & Benefits Increasing number of Solids Removal For personal use only Units (SRU) on hire due to: • Unique sump-less technology • Increasing adoption of the SRU technology in the US • Increasing environmental regulation & awareness • Increasing focus on reduction of cost, increasin
Slide 18: Oil & Gas Division
For personal use only Oil & Gas Division 17
Slide 19: Oil & Gas - Overview & Strategy
Oil & Gas – Overview & Strategy For personal use only • Drilling fluids, solids control & waste management are multi-billion dollar markets • Significant opportunities for year-on-year growth once market stabilises • Geographical & revenue diversification • Diversification strategy to grow the Oil &
Slide 20: Oil & Gas Division Combined Revenue
Oil & Gas Division Combined Revenue For personal use only 19
Slide 21: VES International
VES International • Imdex has 30% interest in VES For personal use only • Strong performance in 1H15. 2H15 will be more challenging • Focus on increased deployment of InFlex technology (formerly Target INS), particularly in international markets outside the USA. For example, activity remains strong
Slide 22: Summary
Summary For personal use only • Market share through technological leadership • Diversifying customer base Strategy • Build a broad based & resilient business • Industry & geographic diversification • Continued product development to meet customer needs • Diversifying customer base Execution • Marke
Slide 23: Appendices
For personal use only APPENDIX Appendices 22
Slide 24: Business Overview - Minerals
Business Overview – Minerals For personal use only Product / service offerings • Downhole/surface instrumentation • Drilling fluids & chemicals • Real time/near real time data access • Solids removal units globally • Data collection, storage, management and analysis Target markets • Drilling contrac
Slide 25: Business Overview - Oil & Gas
Business Overview – Oil & Gas For personal use only Product / service offering • Drilling & completion fluids • Wellbore surveying services • Production chemicals • Inflex (formerly Target INS) • Fluid & waste management • Gyroflex survey tool • Solids control equipment Target markets • Eastern hemi
Slide 26: Global Business
For personal use only Global Business 25
Slide 27: REFLEX HUB - increasing efficiencies
REFLEX HUB – increasing efficiencies For personal use only 2626
Slide 28: The REFLEX Competitive Advantage - Seamless & Integrated
The REFLEX Competitive Advantage – Seamless & Integrated For personal use only Leading Technology developed within total industry context Market Penetration – diverse markets and customer base Established Global Presence Multidisciplinary skill set 27
Slide 29: REFLEX HUB - Key Drivers
REFLEX HUB – Key Drivers For personal use only FOR IMDEX FOR CONTRACTORS & RESOURCE COMPANIES Adds value to existing range of instrumentation Significantly enhances operational efficiency – simplifies workflows Enables new technology / product offerings – e.g. in Paperless solution – data collection
Slide 30: Case Study: BHP Mitsubishi Alliance (BMA)
Case Study: BHP Mitsubishi Alliance (BMA) For personal use only “Our target is to get an extra 30% production out of A productivity and cost improvement enabler for the rigs, this is an enabler exploration drilling rigs with which to do this.” Requirement for BHP Mitsubishi Alliance (BMA) Doug Dunn
Slide 31: Case Study: BMA
Case Study: BMA For personal use only Key elements of the REFLEX solution “We have real-time visibility • Real-time reporting on invoice information. It is a Daily Operations Report far more efficient way of managing our costs and Drilling Summary Report (cost summary) forecast.” Field Operations Da
Slide 32: SRUs - quantifying the benefits
SRUs – quantifying the benefits For personal use only 31
Slide 33: Additional Financial Information
For personal use only Additional Financial Information 32
Slide 34: 1H15 Key Metrics
For personal use only 1H15 Key Metrics 33
Slide 35: Group Revenue
Group Revenue For personal use only Combined Revenue increased 12.3% to $114.4 million: • Minerals Division 62%; • Oil & Gas Division 38% - Inclusive of VES revenue of $13m (1H14: $9.7m). Includes 30% equity accounted VES NPAT. Strong EBITDA margins in VES of 36% (1H14: 36%). Signs of measured Miner
Slide 36: 1H15 EBITDA Segment Result
1H15 EBITDA Segment Result For personal use only The 1H15 result includes profit on sale of remaining investment in SEH ($14.2m), together with an additional amount provided for in relation to the product containment incident announced to the market on 13 March 2014 ($2.1m) 35
Slide 37: Balance Sheet
Balance Sheet For personal use only • Sale of our remaining SEH investment in 1H15 • VES investment increased due to strengthening USD • Receivable increases due to increasing business and tougher collection environment • 31 Dec 14 net debt $30.4m; reduced from SEH proceeds. Comfortable gearing 13.7
Slide 38: Working Capital Management
Working Capital Management For personal use only • $4.4m of cash generated from $8.6m normalised EBITDA profit • Working capital outflow arising from the increase in business activity and a tougher collection environment – aiming to reverse this in 2H15 37
Slide 39: 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