Slide 1: FY08 Full Year Results
For personal use only Imdex Limited FY08 Full Year Results August 2008 1
Slide 2: Highlights
For personal use only Highlights Financial Performance Review of Activities Strategy & Outlook Questions 2
Slide 3: Continued Strong Growth
Continued Strong Growth For personal use only Growth across all geographic regions – strong business model with a global footprint Supply and Distribution agreements with Sandvik, Boart Longyear, Major Drilling and Layne Christensen Increased exposure to the global oil & gas market – drilling fluids
Slide 4: Five consecutive years of revenue and profit growth
Five consecutive years of revenue and profit growth For personal use only Normalised Revenue by Division Normalised EBITA ($m) ($m) 45 160 148.6 40.1 40 140 25% 35 62% 120 30 25 100 20 80 15 60 10 40 5 0 20 -5 0 -10 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 Fluids and Chemicals Down Hole Ins
Slide 5: Financial Performance
For personal use only Highlights Financial Performance Review of Activities Strategy & Outlook Questions 5
Slide 6: Financial Results Overview
Financial Results Overview For personal use only FY08 FY07 $000’s $000’s Change Fluids and Chemicals Revenue 85,711 62,353 37% Down Hole Instrumentation Revenue (incl Surtron) 62,882 56,139 12% Normalised Revenue 148,593 118,492 25% EBITA (incl Surtron trading, excl profit on disposal) 40,071 24,707
Slide 7: 25% Revenue Growth
25% Revenue Growth For personal use only Normalised Revenue Growth 25% revenue growth – 20% organic growth ($m) and 5% acquisition growth 160 5% 148.6 Organic growth - all geographic areas (see 20% 140 next slide) 118.5 Highest organic growth - AMC and Reflex 120 100 The growth in AMC was driven by
Slide 8: Strong revenue growth across all geographies
Strong revenue growth across all geographies For personal use only Europe 62% $8.2m Asia Pacific 19% $92.6m Americas 41% $19.1m Africa 26% $28.7m 8
Slide 9: 62% EBITA Growth
62% EBITA Growth For personal use only 62% EBITA growth – 57% organic growth Normalised EBITA Growth and 5% acquisition growth ($m) 45 Growth in margins achieved by: 57% 5% 40.1 40 Growing economies of scale 35 Controlling back office costs, 30 24.7 particularly in newly acquired 25 operations 20 15
Slide 10: EPS, DPS and ROE Growth
EPS, DPS and ROE Growth For personal use only Normalised Earnings & Dividends Return on Equity per Share 50% (normalised EBITA/Equity) 14.0 c 12.0 c 40% 10.0 c 30% 8.0 c 20% 6.0 c 4.0 c 10% 2.0 c 0% 0.0 c FY04 FY05 FY06 FY07 FY08 -2.0 c -10% -4.0 c -20% FY04 FY05 FY06 FY07 FY08 Interim Div Final Div
Slide 11: Strong Balance Sheet
Strong Balance Sheet For personal use only June 08 June 07 Strong cash position $000’s $000’s Cash 13,276 15,271 Growth in assets due to acquisitions Receivables 32,079 27,806 and organic business growth Inventory 21,716 13,839 Investment in SGE 17,508 16,056 Goodwill/intangible assets due to Proper
Slide 12: Low Gearing
Low Gearing For personal use only Total debt as at 30 June 08 of Composition of Debt at 30 June 2008 $35.6m (30 June 07 - $40.4m) Deferred Payments Gearing down to 25% (30 June 07 $5.4m (15%) – 35%) Bank Loan Gearing reduced further to 24% on $13.2m (37%) 31 July 08 with the repayment of $2.3 millio
Slide 13: Review of Activities
For personal use only Highlights Financial Performance Review of Activities Strategy & Outlook Questions 13
Slide 14: Fluids and Chemicals Division
Fluids and Chemicals Division Global Presence For personal use only Fluids and Chemicals Revenue ($m) Strong organic growth 90 85.7 A balanced global presence 80 37% 70 Facilities being upgraded and expanded to 60 reduce costs and meet demand: 50 Samchem (Africa) 40 Southernland (Latin America) 30 2
Slide 15: Down Hole Instrumentation Division
Down Hole Instrumentation Division Technology Leader For personal use only Down Hole Instrumentation Revenue ($m) Gaining entry into oil & gas market with 70 industry specific down hole 62.9 12% 60 instrumentation 50 Continuing to grow rental business Maintained technology leadership: 40 Digital dow
Slide 16: SEG – Platform for Oil & Gas Market
Down Hole Instrumentation Division SEG – Platform for Oil & Gas Market For personal use only Successful integration of SEG Strong demand going forward Long term supply of gyros secured for Target INS system Production capacity is being expanded 3D representation of multiple drill holes in Focussed p
Slide 17: FY08 Scorecard
FY08 Scorecard For personal use only Achieved Integrate acquisitions Yes Deliver organic growth Yes Maintain superior customer service Yes, ongoing Maintain and extend global technology leadership Yes, ongoing Support global alliances Yes, ongoing Penetrate oil & gas market – DHI Ongoing Become 5th
Slide 18: Strategy & Outlook
For personal use only Highlights Financial Performance Review of Activities Strategy & Outlook Questions 18
Slide 19: Outlook for Mineral Exploration
Outlook for Mineral Exploration For personal use only Record minerals exploration spend Estimated Exploration Spend Worldwide (Non Ferrous) and increased production activity (US$b) US$13.1b in 2008 - up 25% on 12 US$10.5b in 2007 10 Strong demand for drilling fluids and 8 down hole instrumentation 6
Slide 20: Outlook for Oil & Gas
Outlook for Oil & Gas For personal use only Strong investment into exploration and development of new reserves Oil & Gas Exploration Spend 30,000 30% Significant uplift in exploration spend Exploration spend as a % of total E&P spend 25,000 25% over past 4 years 20,000 20% Worldwide exploration spen
Slide 21: Sustainable growth and profitability
Sustainable growth and profitability For personal use only Continue to build strong customer relationships Continue to diversify down hole instrumentation into oil & gas industry Increase competitive advantage and points of differentiation Continue to invest in R & D – instruments easier to operate,
Slide 22: Medium term strategy
Medium term strategy For personal use only Strong relationships, leading technology, sustainable growth and attractive end-markets Medium Term Objective Past Present (3-5 years) Greater penetration into 9% Oil & Gas markets for End-market Early Stage 1% exposure¹ Minerals 27% both DFC & DHI 49% 50%
Slide 23: Summary
Summary For personal use only Attractive market fundamentals Continued growth in mining and mineral exploration spend Increased drilling in oil & gas with expenditure at 30 year highs Commodity prices expected to drive demand for the foreseeable future Balanced global exposure Imdex supplies three o
Slide 24: Summary
Summary For personal use only Strong growth in earnings FY08 was a record year for Group revenues and profit Fifth successive year of increased revenues and profits Profit margins and profit per employee highest amongst peers Outlook Strong track record in revenue and profit growth expected to conti
Slide 25: Appendices
For personal use only Highlights Financial Performance Review of Activities Strategy & Outlook Questions Appendices 25
Slide 26: Appendix – Industry Outlook: Resources
Appendix – Industry Outlook Resources For personal use only Sandvik Mining & Construction “2Q08 organic sales growth of 19%” Atlas Copco Construction & Mining “24% organic sales growth in 2Q08” Boart Longyear “20-25% revenue growth in FY08” Major Drilling “4Q08 revenue a new record up 31.8% on pcp”
Slide 27: Appendix – Industry Outlook: Oil & Gas
Appendix – Industry Outlook Oil & Gas For personal use only Schlumberger “2Q08 revenue up 7% on 1Q08 and 20% on pcp “It appears that customers are responding vigorously to current commodity price levels” “We therefore reiterate our “stronger for longer” view of the current cycle of exploration and p
Slide 28: Appendix - Mineral Exploration Spend
Appendix - Mineral Exploration Spend For personal use only Estimated Exploration Spend Worldwide (Non Ferrous) Worldwide Exploration Budgets* 14 (US$b) by Region 2007 (%) 12 Pacific / United Latin SE Asia States America 10 Australia 8% 4% 24% 8 12% 6 16% 19% 4 Africa 17% Canada 2 Rest of 0 World 199
Slide 29: 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