Imdex Ltd · ASX:IMD
Imdex — Shareholder Meeting (February 2016)
40 slides from Imdex's shareholder meeting presentation, Feb 11, 2016
Slide 1: 2013 Annual General Meeting Chairman's Agenda
2013 AGM Chairman’s Agenda 2013 ANNUAL GENERAL MEETING, 17 OCTOBER 2013 Welcome Good morning ladies and gentlemen. My name is Ross Kelly and it is a pleasure to welcome you to the 2013 Annual General Meeting of Imdex Limited. As Chairman of the Board of Directors of Imdex Limited, I will Chair today
Slide 2: Introduction of Directors and attendees
2013 AGM Chairman’s Agenda I would like to take this opportunity to introduce my fellow Directors, Company Secretary and other attendees today: • Bernie Ridgeway is our Managing Director; • Magnus Lemmel is a Non-Executive Director; • Betsy Donaghey, is a Non-Executive Director; and • Paul Evans is
Slide 3: Quorum, notice and minutes of previous meeting
2013 AGM Chairman’s Agenda questions later in the meeting. Also attending is Mr Nino Odorisio from Hopgoodganim, the Company’s solicitors. Quorum/Meeting Open I confirm that a Quorum of members is present and accordingly, declare the meeting open. [Constitution Article 15.3, two members present shal
Slide 4: Proxies and order of business
2013 AGM Chairman’s Agenda Proxies I will now ask the Company Secretary to advise the meeting how many proxies have been received. SECRETARY - Thank you Mr Chairman. I advise that 263 valid proxies have been received representing a total of 106,502,527 shares or 50.6% of the issued capital of the Co
Slide 5: Order of business and conduct of meeting
2013 AGM Chairman’s Agenda - Our Managing Director, Bernie Ridgeway, will then make a presentation covering the significant events of the year; - We will then consider the Financial Statements and Reports for the year ended 30th June 2013. At this time I will invite questions and comments on the fin
Slide 6: 2013 AGM Chairman's Agenda
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Slide 7: Chairman's address: FY13 a challenging year
2013 AGM Chairman’s Agenda Ladies and gentlemen, FY13 was a challenging year. These challenges were largely due to a rapid cyclical slowdown in the global minerals industry, which has continued to impact the company’s performance during the first quarter of FY14. Our performance during FY13 was also
Slide 8: Dividends and corporate strategy
2013 AGM Chairman’s Agenda At the close of FY13, the Board declared a 0.40 cents per share fully franked final dividend. This is in addition to the 2.50 cents per share fully franked interim dividend paid in March 2013. As I mentioned at our last AGM, the Board, through its dividend policy, seeks to
Slide 9: Oil and gas expansion and product leadership
2013 AGM Chairman’s Agenda Our expansion into oil and gas continues to gain momentum. We are confident of achieving our goals of generating 30-40% of the Group’s revenue from this sector, improving margins and delivering a substantial contribution to profit, as we continue to build scale into this p
Slide 10: Solid balance sheet
2013 AGM Chairman’s Agenda Imdex continues to maintain a solid balance sheet. As at 30th June 2013, net assets were $188.5 million (30 June 2012: $168.1 million); operating cash-flow had increased 44% to $39.0 million (FY12: $27.1 million); and our gearing levels were comfortable with net debt / (ne
Slide 11: Outlook for minerals and oil and gas
2013 AGM Chairman’s Agenda The fundamentals affecting our minerals business suggests the coming year will again be challenging, however, we remain optimistic about the medium and long-term. Cyclical slowdowns are characteristic of the minerals industry and, as has occurred previously, conditions wil
Slide 12: Chairman's acknowledgements
2013 AGM Chairman’s Agenda offsetting the impact of future slowdowns that will continue to be part of the minerals industry. Before I conclude and invite Bernie to present, I would like to acknowledge his leadership as our Managing Director, together with Divisional Managers Gary Weston and Derek Lo
Slide 13: 2013 Annual Report and questions
2013 AGM Chairman’s Agenda The 2013 Annual Report has been distributed to all shareholders. Additional copies are also available in the meeting today and are available for download on the Company’s Website. (NB. No requirement to formally adopt the Annual Report, but simply under Corporations Act s.
Slide 14: Managing Director's address: FY13 summary
2013 AGM Chairman’s Agenda Good morning everyone. I will begin by providing an overview of the Imdex Group trading performance for the 2013 financial year and update you on how we have started the current year. I will also briefly cover the operations and divisional performance, comment on the outlo
Slide 15: FY13 highlights and oil and gas growth
2013 AGM Chairman’s Agenda A cyclical slowdown in the Minerals industry has always posed the biggest threat to our business. In order to insulate the Company against this, we have pursued diversification into the oil & gas business. However, with the oil & gas business not yet at a scale position, I
Slide 16: Key metrics
2013 AGM Chairman’s Agenda Slide 9 – Key Metrics Looking at the Key Financial results, statutory revenue was down 14% on FY12 at $232.8 million, whilst combined revenue, which includes our 30% share of the VES International revenue, was $249.4 million, down 11% on the previous financial year. After
Slide 17: Workforce and revenue
2013 AGM Chairman’s Agenda Our workforce, through the acquisition of ioGlobal and active recruitment for the Oil & Gas Division, peaked at approximately 620 during the year from 543 at 30th June, 2012. However, at the end of September, 2013 total headcount was 566. It is interesting to note that, in
Slide 18: Revenue split and EBITA
2013 AGM Chairman’s Agenda The Minerals Division contributed 73% of total revenue with the Oil & Gas Division making up the balance. Slide 11 - EBITA The EBITA trend is similar to that of revenue and in FY12 we set a new record for EBITA at $75.2 million. However, in line with the reduced revenue in
Slide 19: Operational review
2013 AGM Chairman’s Agenda Slide 12 – Operational Review As many of you know, Imdex operates two divisions, being Minerals and Oil & Gas. We will now look at the performance of the Minerals Division, which markets innovative drilling fluids, chemicals, solids removal technologies, downhole instrumen
Slide 20: Minerals Division
2013 AGM Chairman’s Agenda Slide 13 – Minerals Division Minerals Division revenue, which consists of the AMC and Reflex businesses, was down 24% on the record achieved in FY12, and this Division contributed 73% of total revenue for the year compared to 87% the prior year. As you can see, this Divisi
Slide 21: Diversified revenue
2013 AGM Chairman’s Agenda The introduction of our solids removal units around the world has also been slower than anticipated; however, momentum is building on this game changing technology. Slide 14 – Diversified Revenue We included this slide for the first time at our FY12 Results Announcement on
Slide 22: Customer base and revenue mix
2013 AGM Chairman’s Agenda Firstly, looking at our end customer base in 4Q13, the split between major/intermediate and the juniors is approximately 85% / 15%. The junior explorers have not been a factor for the last 18 months or so, however, we have seen an increase in the number and amount of junio
Slide 23: Solids removal technology
2013 AGM Chairman’s Agenda Slide 15 – Solids Removal Technology AMC’s solids removal technology for the diamond drilling industry in mining is game changing technology and will become the standard in the industry as time goes on. The introduction of this technology has been slower than we predicted,
Slide 24: Reflex
2013 AGM Chairman’s Agenda Similar conditions are prevalent in underground operations and they need a solution to contain the drilling fluids and minimise water loss. Our underground unit should be industry tested by the end of this calendar year. In addition to AMC, the other part of our Minerals b
Slide 25: Reflex HUB benefits
2013 AGM Chairman’s Agenda The principal and unique benefit when customers deal with Reflex is knowledge - customers know more, get information faster and mine smarter. Reflex HUB enhances our product offering, broadens our customer base and increases exposure to all stages of the project life cycle
Slide 26: Reflex HUB - Drilling
2013 AGM Chairman’s Agenda An immediate area of improvement is to convert drilling contractors, who largely use paper-based systems, to digital, cloud-based technologies. Reflex HUB is a secure data management solution that streamlines the collection of drilling information including shift details,
Slide 27: Reflex rental fleet
2013 AGM Chairman’s Agenda Slide 18 – Reflex Rental Fleet Unfortunately, the Reflex rental fleet continued to reduce month on month from the record achieved in June, 2012. However, in the run up to the end of September, we believe the pace of decline has slowed. Despite the reduction in the number o
Slide 28: Strong growth - Oil & Gas
2013 AGM Chairman’s Agenda continue to invest to ensure our customers have access to the best technology available in the market place. Our product development pipeline, the amount of spending and the discipline around this expenditure, has never been greater than it is today. We have commercialised
Slide 29: AMC Oil & Gas results and market size
2013 AGM Chairman’s Agenda AMC Oil & Gas had a strong year, growing revenue from $28.3 million in FY12 to $50.1 million in FY13, up 77%. This robust revenue growth has not yet translated into profits; however, as we build further scale into this business during FY14, the Division should be profitabl
Slide 30: Oil & Gas growth: solids control market
2013 AGM Chairman’s Agenda business for growth. We have been successful in attracting many people to join AMC from the large oil and gas service companies as we offer an industry alternative that is smaller and more nimble. The added investment in solids control, drilled waste management and associa
Slide 31: VES JV
2013 AGM Chairman’s Agenda VES International (VES) is 30% owned by Imdex and is the third largest provider of downhole survey services to the global oil and gas industry. VES is performing strongly and mainly competes in the US land based oil and gas market against Scientific Drilling International
Slide 32: VES JV performance
2013 AGM Chairman’s Agenda VES continues to trade strongly mainly through the US land based oil and gas market. Given VES is only 30% owned by Imdex, we equity account our 30% share of their net profit after tax result. Due to the fact that there is a large intangible in the business, the amortisati
Slide 33: 1Q14 and Outlook
2013 AGM Chairman’s Agenda Slide 23 – 1Q14 & Outlook Slide 24 – 1Q14 Performance C:\Users\pevans\Documents\Roadshow\Oct 2013\AGM 2013\Release Material\FY13 AGM Script 11 Oct 2013v3 ASX Release.docx Page 33 of 40
Slide 34: 1Q14 performance
2013 AGM Chairman’s Agenda More difficult trading conditions were evident in 1Q14, where we saw continued weakness in spending by the large and intermediate resource companies. This is evident in the Reflex rental fleet, which at 30th September, 2013 was down a further 23% on the June, 2013 number o
Slide 35: Outlook FY14
2013 AGM Chairman’s Agenda We believe that our strategy is right and Imdex will reap the rewards for years to come from these investments. Slide 25 – Outlook - FY14 The global Minerals industry is in a cyclical downturn, of which there can be no doubt. How long the downturn will last is open to deba
Slide 36: What is Imdex doing?
2013 AGM Chairman’s Agenda As mentioned earlier in this presentation, large resource companies are continuing to reduce expenditure, cut costs and increase efficiencies in their operations. This renewed focus on efficiencies and lower costs is driving resource companies to seek innovation and leadin
Slide 37: Growth initiatives and key take-aways
2013 AGM Chairman’s Agenda Imdex is investing through the cycle and has specialist expertise which is difficult to replace in a cyclical upswing. Whilst prudently managing our costs and efficiencies, we remain focused on three broad growth initiatives: 1. AMC Minerals pursuing market share growth in
Slide 38: Closing remarks
2013 AGM Chairman’s Agenda • Despite a competitive market place, we are genuinely excited by what lies ahead as Imdex is uniquely positioned to capitalise on these opportunities given its suite of technologies, and grow shareholder value over the medium to longer term. That concludes my presentation
Slide 39: Shareholder questions
2013 AGM Chairman’s Agenda I now invite Shareholders to ask questions of the Company’s Management or the Company’s Auditors concerning the 2013 Annual Financial Report. I ask that you identify yourself before putting your question. Thank you. If there are no further questions I will move to the next
Slide 40: 2013 AGM Chairman's Agenda
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