Slide 1: FY13 results presentation
FY13 results presentation 19 August 2013 For personal use only Bernie Ridgeway - Managing Director Paul Evans - Chief Financial Officer 1
Slide 2: Today's Agenda
Today’s Agenda For personal use only Overview Bernie Ridgeway FY13 financial performance Paul Evans Operational review Bernie Ridgeway Strategy & outlook Bernie Ridgeway Bernie Ridgeway Paul Evans Managing Director Chief Financial Officer / Company Secretary 2
Slide 3: Overview
For personal use only Overview 3
Slide 4: FY13 Summary
FY13 Summary • Combined revenue 11% For personal use only • O&G revenue 79% to new record high • Minerals revenue 24% • EBITA 53% (including $3.0m of one off restructuring costs, the majority in 4Q13) • Revenue and earnings impacted by cyclical slowdown in minerals sector • Minerals slowdown red
Slide 5: Key metrics
Key metrics For personal use only ($m) FY13 FY12 Var. Statutory revenue 232.8 269.6 14% Combined revenue* 249.4 278.9 11% EBITA 35.2 75.2 53% NPAT 19.4 45.8 58% EPS (cents) 9.2 22.3 59% Operating cash flow 39.0 27.1 44% Gearing (ND / (ND + E)) 22.3% 22.3% - Interest cover 10 Times 43 times - F
Slide 6: Revenue of $249.4m
Revenue of $249.4m For personal use only Combined revenue* • ~ 11% on FY12 (record level) ($m) • Minerals • 73% of combined revenue • Cyclical slowdown in 1H13: more pronounced in 2H13 • Growth available in underpenetrated mining regions • Oil & Gas • 27% of combined revenue • Year on year growth s
Slide 7: EBITA of $35.2m
EBITA of $35.2m For personal use only EBITA ($m)* EBITA ($m)* • EBITA ~ 53% on FY12 (record level) • Restructured operations to reduce costs: $3.0m one off restructuring costs • Disciplined investment approach: • Oil & Gas strategy • Skilled employees • Product development • Project delays in 4Q13
Slide 8: FY13 Financial Review
For personal use only FY13 Financial Review 8
Slide 9: Strong balance sheet with conservative gearing
Strong balance sheet with conservative gearing For personal use only ($m) Jun 13 Jun 12 Net cash 10.0 11.2 • Strong working capital Receivables 45.2 59.7 management Inventory 53.4 52.1 • Inventory reductions in Minerals. Investment in SEH 26.5 21.4 Increases in O&G to support VES International JV 25
Slide 10: Solid working capital management
Solid working capital management For personal use only • $39.0m of cash generated from $35.2m of EBITA • Working capital release due to improved stock and debtor management • Investment in O&G inventories during the period offset Minerals release 10
Slide 11: Operational Review
For personal use only Operational Review 11
Slide 12: Minerals division
Minerals division For personal use only Revenue • ~ 24% on FY12 (record level) ($m) • Revenues impacted by cyclical slowdown, particularly in 2H13 • Integration of ioGlobal • Global introduction of SRUs • Further product development • Outlook for FY14 • Resource companies remain in cost cutting, ex
Slide 13: Diversified revenue base
Diversified revenue base For personal use only Q413 Minerals Revenue Customer Drilling Phase Commodity Non Junior Junior Mining 18% 15% 7% Exploration Production Others 22% Production 22% 27% Gold 20% 41% Intermediate/ Iron Major Development 12% 51% Copper Major / Intermediate 85% Development 20% 82
Slide 14: Reflex rental fleet
Reflex rental fleet For personal use only Number of instruments on rent • Decline from July 2012 peak reflects cyclical slowdown • Market share maintained 14
Slide 15: Innovation/development of market leading technologies
Innovation/development of market leading technologies For personal use only Europe Solids removal technology • Industry changing technology – many advantages: USA • Lower costs in remote areas • Lower water usage • Lower drilling fluid costs • Effectively no ground disturbance • Reduced wear and tea
Slide 16: Strong growth in Oil & Gas division
Strong growth in Oil & Gas division For personal use only Combined revenue* • ~ 79% on FY12 ($m) • Year on year growth since FY10 • Includes $16.6m from VES International JV • Strong growth in Europe and Asia Pac, CBM strong in Australia • Additional management depth to support growth • Outlook for
Slide 17: VES International JV (30% interest)
VES International JV For personal use only (30% interest) • 3rd largest provider of down hole FY13 FY12* survey services in global oil & gas (m) unaudited market Total JV Revenue (100%) USD 56.9 28.9 • Continued strong EBITDA primarily Total JV EBITDA (100%) USD 17.8 6.4 from US based operations • I
Slide 18: Summary and Outlook
For personal use only Summary and Outlook 18
Slide 19: Summary – FY13
Summary – FY13 For personal use only • FY13 financial result impacted by cyclical slowdown in minerals sector. More pronounced in 2H13 • Success of diversification strategy demonstrated by strong growth in oil & gas division FY13 revenues • Strong balance sheet and cash flows • Imdex cost structure
Slide 20: Outlook – FY14
Outlook – FY14 For personal use only Fundamentals point to continued subdued activity in Minerals, however, robust activity in Oil & Gas • Minerals industry in cyclical slowdown. Resource companies are reducing expenditure, cutting costs, increasing productivity and looking at innovation • Despite e
Slide 21: APPENDIX
For personal use only APPENDIX 21
Slide 22: Our Strategy
For personal use only Our Strategy 22
Slide 23: On track with strategy
On track with strategy For personal use only Past FY13 Medium term End market Oil & Gas 27% Minerals 100% 73% Geographic Asia Pacific reach Other 100% 54% 46% Rent / Sell Sales 29% mix 100% Rentals 71% Note: All numbers based on actual or anticipated combined revenue 23
Slide 24: Comprehensive product offering
Comprehensive product For personal use only offering Exploration Production 30% revenue 23% revenue 24
Slide 25: Key business drivers and outlook
For personal use only Key business drivers and outlook Driver FY14 Outlook Exposure to Medium to long term project horizons Majors/Intermediates 85% of 4Q13 Minerals revenue from Major and Intermediate companies. Similar exposure expected in FY14. Subdued activity due to cyclical slowdown Exploratio
Slide 26: 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