Slide 1: Imdex Limited FY09 Half Year Results
For personal use only Imdex Limited FY09 Half Year Results 16 February 2009 Bernie Ridgeway – Managing Director Paul Evans – Chief Financial Officer 1
Slide 2: Presentation overview
Presentation overview For personal use only Overview FY09 Half Year Results Operational review Outlook Mining & Mineral exploration Oil & Gas What this means for Imdex 2
Slide 3: Overview
For personal use only Overview Bernie Ridgeway Managing Director 3
Slide 4: Overview – financial
Overview – financial For personal use only Revenue from continuing operations up 16% to $81.4m (1H08 - $70.2m) EBITA from continuing operations up 1% to $20.0m (1H08 - $19.8m) NPAT before non-operational items down 15% to $10.1m (1H08 - $11.9m) Cash flow from operations up 109% to $6.6m (1H0
Slide 5: Overview – operational
Overview – operational For personal use only Drilling Fluids & Chemicals (DFC) Division Acquisition of Wildcat Chemicals – manufactures oil & gas chemicals Commissioning of polymer plant at Samchem, South Africa Successful trials of solids control equipment for diamond drillers Down Hole Instr
Slide 6: Growth in revenue and EBITA
Growth in revenue and EBITA For personal use only Normalised Revenue by Division Normalised EBITA ($m) ($m) Ç 16% 25 Ç 1% 90 80.3 80 19.8 20.0 69.1 20 70 60 15 50 45.9 40 10.1 10 30 23.1 20 17.4 5 3.0 10 1.4 0 0 1H05 1H06 1H07 1H08 1H09 1H05 1H06 1H07 1H08 1H09 Fluids and Chemicals Instrumentation M
Slide 7: Actively managing the market downturn
Actively managing the market downturn For personal use only Rolled bank facilities out to 2014 Reviewing all internal procedures across control margins, inventory, debtors and expenses Deferred Dec 08 salary reviews until Jun 09 Implemented redundancies of 13% of global work force without im
Slide 8: FY09 Half Year Results
For personal use only FY09 Half Year Results Paul Evans Chief Financial Officer 8
Slide 9: Profit & loss
Profit & loss Half Year Ended Half Year Ended For personal use only 31 Dec 2008 31 Dec 2007 $’000 $’000 Revenue from continuing operations 81,356 70,205 Revenue from discontinuing operations - 6,584 Total Revenue incl Interest Income 81,356 76,789 Change in percentage - Total Revenue 6% Operating Pr
Slide 10: Strong balance sheet
Strong balance sheet For personal use only December 08 June 08 Healthy liquidity & $000’s $000’s gearing ratios Cash (net of overdraft) 4,769 13,276 Receivables 30,781 32,079 Low capital intensity Inventory 33,132 21,716 Investment in SGE 20,615 17,508 Bank debt down $2.1m Property, plant & eq
Slide 11: Low gearing
Low gearing Composition of Debt Deferred Payment (ITUK) For personal use only 31 Dec 08 $2.4m (6%) Comm Bills Dec 08 Jun 08 Deferred $10.0m (25%) Payment Net Cash ($000’s) 4,769 13,276 (Flexit) $8.5m (22%) Debt ($000’s) 38,920 35,552 Equity ($000’s) 120,095 105,643 Net Debt to Equity 22% 17% Bank Lo
Slide 12: Operational review
For personal use only Operational review Bernie Ridgeway Managing Director 12
Slide 13: Imdex's business
Imdex’s business For personal use only Drilling Fluids & Chemicals Key Markets • Consumable item Mining & Mineral Exploration • Keep drill holes open and lubricate moving parts while Sell removing cuttings to the surface • Environmental focus • Manufacture & supply Oil & Gas Down Hole Instrumentatio
Slide 14: Drilling Fluids & Chemicals (DFC)
Drilling Fluids & Chemicals (DFC) For personal use only Revenue ($m) 60 Ç 19% 3% acquisition + 16% organic = 19% growth 50.5 50 Strong organic growth to Nov 08 42.3 40 Decline in world markets since Nov 08 29.1 Continued to support global alliances 30 20 18.4 10.5 Polymer plant commissione
Slide 15: DFC growth initiatives 2H09 & beyond
DFC growth initiatives 2H09 & beyond For personal use only Continued focus on global alliances Manufacturing plant commissioned in Chile, Jan 09 Expansion in under penetrated geographic markets Canada Latin America Further expansion in niche oil & gas markets & coal bed methane Success
Slide 16: Down Hole Instrumentation (DHI)
Down Hole Instrumentation (DHI) For personal use only Revenue ($m) 35 Ç 11% 29.8 30 26.8 6% acquisition + 5% organic = 11% growth 25 Growth excludes Surtron 20 16.9 Instrument rentals peaked in Jul 08 15 10 Dec 08 low point with increases in Jan 09 4.8 5 3.3 Rental model proved resilient 0
Slide 17: DHI growth initiatives 2H09 & beyond
DHI growth initiatives 2H09 & beyond For personal use only Continued focus on global alliances Further expansion into oil & gas market globally – onshore & offshore Market new/improved instruments Continued development of oil & gas instruments Focus on rental model Market segmentation of
Slide 18: Outlook: Mining & Mineral exploration
For personal use only Outlook Mining & Mineral exploration Bernie Ridgeway Managing Director 18
Slide 19: Few discoveries support ongoing exploration
Few discoveries support ongoing exploration 12 16 For personal use only 11 14 Worldwide Exploration Spend 10 Number of Discoveries 9 12 8 10 (US$ Bn) 7 6 8 5 6 4 3 4 2 2 1 0 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Source: Metals Economics Group & UBS 1 new worl
Slide 20: Current downturn likely to be higher than previous peak
Current downturn likely to be higher than previous peak For personal use only 15 3 Worldwide Mineral Exploration Expenditure 12 2.5 Relative Gold and Copper Prices (1989=1) Uranium Exploration (US$Billion) 9 Nonferrous Exploration 2 Relative Copper Price Relative Gold Price 6 1.5 3 1 0 0.5 89 90 91
Slide 21: Outlook: Oil & Gas
For personal use only Outlook Oil & Gas Bernie Ridgeway Managing Director 21
Slide 22: Growth in global exploration spend
Growth in global exploration spend For personal use only 30 30% Exploration spend as a % 25 of total E&P spend 25% 20 20% $Bn 15 15% Oil & Gas Exploration Spend 10 Top 25 IOC exploration spend 10% Source: SEB Enskilda 2007 (excluding national oil companies) 5 5% 0 0% 2007E 1994 1995 1996 1997 1998 1
Slide 23: Significant exploration spend required over the longer term
Significant exploration spend required over the longer term For personal use only 120 100 Newbuild Drilling Rigs Oil Price 80 60 20 year underinvestment 40 Source: Douglas Westwood Global Oil 20 and Gas Briefing 28 Oct 08 0 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 Two decades of low oil p
Slide 24: Outlook: What this means for Imdex
For personal use only Outlook What this means for Imdex Bernie Ridgeway Managing Director 24
Slide 25: Robust business model & strategy
Robust business model & strategy For personal use only Medium Term Objective Past FY 08 (3-5 years) Greater penetration into 9% 1% oil & gas markets for both End-market Early Stage exposure¹ 27% Minerals DFC & DHI 49% 50% Late Stage 64% Minerals exploration: Minerals majority of Imdex Oil & Gas
Slide 26: Resilient business with long term growth opportunities
Resilient business with long term growth opportunities For personal use only Strategy is solid. Built around medium to long term objectives Rental model success Delivers sustainable income Rental fleet fully paid for Global business Alliances with world’s largest drilling companies – DFC
Slide 27: Growth opportunities
Growth opportunities For personal use only Market penetration Oil & gas – DHI and DFC Coal bed methane Underexploited geographic markets – Canada, Caspian Sea & Latin America Product development Down hole instrumentation for oil & gas industry Solids control equipment for global diamon
Slide 28: Appendices
For personal use only Appendices 28
Slide 29: Statutory profit and loss statement
Statutory profit and loss statement Half Year Ended Half Year Ended For personal use only 31 Dec 2008 31 Dec 2007 $’000 $’000 Continuing operations Sale of goods and operating lease rental 80,274 69,139 Interest income and other operating revenue 1,082 1,066 Total revenue 81,356 70,205 Other income
Slide 30: Statutory Balance sheet
Statutory Balance sheet 31 Dec 2008 30 Jun 2008 $’000 $’000 For personal use only Current Assets Cash and Cash Equivalents 8,188 13,276 Trade and Other Receivables 30,781 32,079 Inventories 33,132 21,716 Other Financial Assets 16,115 13,237 Other 1,526 1,200 89,742 81,508 Non-Current Assets classifi
Slide 31: Statutory cash flow statement
Statutory cash flow statement Half Year Ended Half Year Ended 31 Dec 2008 31 Dec 2007 For personal use only $’000 $’000 Cash Flows From Operating Activities Receipts from customers 88,514 77,410 Payments to suppliers and employees (75,078) (64,188) Interest and other costs of finance paid (1,512) (1
Slide 32: 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