Imdex Ltd · ASX:IMD
Imdex — H1 FY2007 Earnings Presentation
21 slides from Imdex's earnings presentation, Feb 23, 2007
Slide 1: Cover letter to ASX: Brokers Presentation
23 February 2007 The Manager Company Announcements Office Australian Stock Exchange Lirnited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sirs Brokers Presentation | attach a copy of the presentation to be made to Brokers in Sydney and Melbourne next week. Yours faithfully Imdex Limited a P
Slide 2: FY07 First Half Results Presentation
IMDEX Limited “Australia’s Global Drilling Products & Services Company” FYO7 FIRST HALF RESULTS PRESENTATION February 2007 imdey
Slide 3: Company Overview
COMPANY OVERVIEW = Imdex is a Perth based, ASX listed industrial company specialising in supplying drilling products and services to the mining, oil & gas, water well and civil industries in Australia and internationally » Market leader. status in many of our disciplines (eg. wireless steering tool
Slide 4: Highlights
HIGHLIGHTS up 161% up 128% | nl | | up 88 % up 64% 1 cent Net Profit after Tax Y per share (4.26 cents) | Operating Revenue Operating Cash Flow per share
Slide 5: Corporate Structure
CORPORATE STRUCTURE Drilling Products & Services Division Ace Ace Drilling Drilling Surtron Reflex Chardec (Rentals) (Products) Eehriisn: O07
Slide 6: Imdex Regions Worldwide
IMDEX REGIONS WORLDWIDE > Fiji ~ Mew Caledonia prew Zealand : Africa Americas Eehriisn: O07
Slide 7: Results Summary
RESULTS SUMMARY 2006 2005 2004 Half Year Ended 31 December $ 000's $ 000's $ 000's Revenue 53,141 30,191 21,892 76% 38% EBITA 11,248 4,313 2,193 161% = 97% EBIT 9,815 4,313 2,193 128% 97% Net Profit after Tax 5,986 3,176 1,363 88% 133% Operating Cash Flow 7,432 3,260 1,784 128% 83% Earnings Per Shar
Slide 8: Revenue
REVENUE 2006 2005 % Half Year Ended 31 December $ 000's $ 000's Change Drilling Fluids & Chemicals Australian Mud Company 20,424 13,858 47% Samchem .* 8,690 4,493 93% Drilling Products & Services Reflex ** 6,870 - - Chardec ** 2,384 Surtron 6,594 Ace Drilling Supplies 9,745 Eliminations *** (2,136)
Slide 9: Revenue & EBITA by Division
REVENUE & EBITA BY DIVISION Revenue by Division (prior to intercompany elimination, $’000s) EBITA by Division (prior to intercompany elimination, $’000s) 20,426 3,924 3,692 2,217 9,745 1,467 : | Ace Reflex Surtron Chardec 6,870 - 6.594 at 384 Ace Reflex Surtron m ‘ ‘ ‘ a ¥ ¥ a 5 « ‘ ‘ a 4 ¥ q 5 0 «
Slide 10: Fluids & Chemicals
FLUIDS & CHEMICALS « Segment revenue of $29.1m (up 59% on pcp) and EBIT of $4.5m (up 84% on pcp) ® Servicing mining, oil, gas, water & civil industries in Australia & internationally — all industry segments are strong * Global presence — Africa, Asia-Pacific, Central & South America and Eastern Euro
Slide 11: Products & Services
PRODUCTS & SERVICES « Segment revenue of $23.5m (up 102% on pcp) and EBIT of $6.3m (up 140% on pcp) « Geophysical Logging concentrated in the high growth Iron Ore industry # Down Hole Surveying primarily servicing major gold producers in Australia * Steering business (STIS) focused on CBM industry i
Slide 12: Balance Sheet
BALANCE SHEET eyes seieeta | " Significant uplift in $ 000's $ 000's intangibles Cash 6,737 6,421] " Reflex acquisition: IP of Inventory 12,889 9,707 oo. Financial assets 9,534 4,624 | " Chardec acquisition. IP of : $10.7m; Goodwill of $8.3m Property, plant & equipment 11,706 9,967 Intangible assets
Slide 13: Imdex Snapshot
IMDEX SNAPSHOT IMD Ti cc anes ASX - Australian Stock Exehian SE(GSi200b - Soe regur, Peed ULL UA "7 1430] iJ 1300) 1180] 1070) 1000) 970] DL Seng] wee | 4000] | 3000) 2000) tt 1000) q x Oo) last iideveiiia TUUT MNO GAZE feu e ie cet E a | Hl iba lily il HAGE: OT $1.04) $.94 $.06 $.78 Sal $.56 $.64 S
Slide 14: Outlook
OUTLOOK = Global mining expenditure continues to increase with further growth forecast for the medium term » Energy sectors continuing to show strong operating conditions = Second half of financial year.is expected to build on the achievements of the first half # Synergy benefits have already been g
Slide 15: Global Exploration Spend
GLOBAL EXPLORATION SPEND Estimated Exploration Spend Worldwide (Non Ferrous) USS Billions * Budgeted mineral $0.0, exploration expenditure was a record US$7.1B in 2006. Forecast up again in 2007 $8.0. + $7.0 > $6.0 + » Exploration in non mature markets growing fast $5.0 + $4.0 + $3.0 + $2.0 1 » Dema
Slide 16: Global Spend — Region & Type
GLOBAL SPEND — REGION & TYPE Worldwide Exploration Budgets* Worldwide Exploration Budgets* by Region 2006 (%) by Stage 2006 (%) United States Grass rats Canada Rest of Stage World « Brownfields exploration greater than greenfields from 2005 onwards » In the decade prior to 2004, greenfields averaged
Slide 17: 2007 Financial Goals
2007 FINANCIAL GOALS 2007 Financial Goals (Guidance to Market) = 45% revenue increase to $96 million « EBIT margin growth exceeding the 15% achieved in 2006 Progress — December 2006 = 76% increase in revenue on 1HO06. Full year expected to exceed previous market guidance » EBITA margins for 1H07 of
Slide 18: Flexit
FLEXIT = Heads of Agreement entered into in February 2007. » Acquisition price of A$22m: ~ A$12m cash on settlement ~ A$10m by way of 5m ordinary shares 2 years after settlement ~-Cash adjustment if market value of shares is below $2 per share at that time = Developer and supplier of sophisticated b
Slide 19: Flexit: SmartTool and GyroSmart
FLEXIT = SmartTool — Flexible drill hole survey system — Hand held data pad with radio based data transmission to laptop — Single and multishot capability — Storage, display and analysis of data » GyroSmart — Most advanced micro electro-mechanical system (MEMS) survey system available — Rugged solid
Slide 20: Flexit: Financial Performance and Rationale
FLEXIT » Financial performance ~ Projected revenue of $15m and EBIT of $5m under current business model -- Business model under Imdex is expected to outperform current model beyond year 2 ~~ Lead time for new model may mean lower profits in first year of transition » Reasons for acquisition ~ Expand
Slide 21: Imdex is
IMDEX is An Australian global Drilling Products & Services Company: a service provider to the natural resources industries