Slide 1: 1H15 Financial Results Presentation
For personal use only 1H15 Financial Results Presentation 16 February 2015 1
Slide 2: 1H15 Results Overview
1H15 Results Overview For personal use only Market conditions in the minerals sector improved during 1H15 8.5% increase in the average number of REFLEX rental instruments on hire in 1H15 compared to the prior corresponding period Growing number of SRUs on hire, with further increases expected Increa
Slide 3: 1H15 Key Metrics
For personal use only 1H15 Key Metrics 3
Slide 4: 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 Minerals
Slide 5: Global Business Increasing Combined Revenue
Global Business Increasing Combined Revenue For personal use only 5
Slide 6: 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 finalising the product containment incident announced to the market on 13 March 2014 ($2.1m) 6
Slide 7: 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% Invest
Slide 8: 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 8
Slide 9: Minerals Division
For personal use only Minerals Division 9
Slide 10: Minerals Division
Minerals Division For personal use only Increasing drilling activity during the period, particularly with the return of some brownfields expenditure by the major resource companies REFLEX Rental fleet barometer average +8.5% for 1H15 versus prior corresponding period Number of SRUs on hire increased
Slide 11: 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 11
Slide 12: Minerals Division - Revenue Base
Minerals Division - Revenue Base For personal use only Minerals revenue largely 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-month incr
Slide 13: Reflex HUB – increasing efficiencies
Reflex HUB – increasing efficiencies For personal use only 1313
Slide 14: Oil & Gas Division
For personal use only Oil & Gas Division 14
Slide 15: Oil & Gas Division
Oil & Gas Division For personal use only Record revenue of $43.6 million up 14% on prior corresponding period (1H14: $38.2 million) During 1H15, continued investment in AMC Oil & Gas equipment, working capital and personnel Strong revenue and EBITDA performance by VES; EBITDA margins maintained at 3
Slide 16: Oil & Gas Division Combined Revenue
Oil & Gas Division Combined Revenue For personal use only 16
Slide 17: VES International
VES International For personal use only Imdex has 30% interest in VES Strong performance in 1H15. 2H15 will be more challenging Focus on continued development of InFlex technology (formerly Target INS) 17
Slide 18: Outlook & key priorities
For personal use only Outlook & key priorities 18
Slide 19: FY15 outlook – cautiously optimistic
FY15 outlook – cautiously optimistic For personal use only Evidence of increasing activity. Cautious optimism for ongoing measured recovery in the Minerals Division Increased interest in new technologies provides a strong platform for further revenue growth through 2015 and beyond Alignment wi
Slide 20: 2H15: Key priorities
2H15: Key priorities For personal use only Marketing new technologies to new and existing customers globally Increasing sustainable revenue streams via REFLEX HUB Continue to provide solutions to customers to increase the productivity and efficiency of their operations – increasing number of S
Slide 21: Appendices
For personal use only APPENDIX Appendices 21
Slide 22: Business Overview
For personal use only Business Overview 22
Slide 23: Division Overview
For personal use only Division Overview 23
Slide 24: Minerals Division - FY15 Growth Opportunities
Minerals Division - FY15 Growth Opportunities For personal use only MARKET MARKET NEW PRODUCT DIVERSIFICATION PENETRATION DEVELOPMENT DEVELOPMENT Ongoing development of AMC fluids & REFLEX Solids removal equipment New REFLEX existing range of AMC technologies, HDD & civil – surface, underground & te
Slide 25: 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 25
Slide 26: REFLEX HUB - Global customer base
REFLEX HUB - Global customer base For personal use only 26
Slide 27: Case Study: REFLEX HUB
Case Study: REFLEX HUB For personal use only A productivity improvement enabler for exploration drilling rigs Requirement Timely access to reliable, accurate data relating to all drilling activity to enable better business management, forecasting and productivity improvements Solution • In-field dat
Slide 28: 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, increasing drilli
Slide 29: SRUs – quantifying the benefits
SRUs – quantifying the benefits For personal use only 29
Slide 30: Mineral Exploration Expenditure
Mineral Exploration Expenditure Non ferrous For personal use only Non ferrous exploration expenditure reduced by >US$10bn over the last 2 years, back to 2007 levels Current activity largely driven by the Majors spending around existing brownfields projects In 2014, 39 Major companies accounted
Slide 31: 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