Imdex Ltd · ASX:IMD
Imdex — FY2009 Earnings Presentation
31 slides from Imdex's earnings presentation, Aug 17, 2009
Slide 1: Imdex Limited FY09 Financial Results
For personal use only Imdex Limited FY09 Financial Results 17 August 2009 Bernie Ridgeway – Managing Director Paul Evans – Chief Financial Officer 1
Slide 2: Presentation overview
Presentation overview For personal use only Overview FY09 financials Operational review Drilling Fluids & Chemicals Division Down Hole Instrumentation Division Market outlook Signs of recovery Mineral exploration Oil and gas Strategy and growth opportunities 2
Slide 3: Overview
For personal use only Overview Bernie Ridgeway – Managing Director 3
Slide 4: Sound results given difficult markets
Sound results given difficult markets For personal use only Revenue from continuing operations È 4% to $137m (FY08 - $142m) EBITA from continuing operations* È 37% to $24.5m (FY08 - $38.8m) NPAT before non-operational items È 46% to $11.3m (FY08 - $21.1m) Cash flow from operations Ç 58% to $
Slide 5: Revenue and EBITA
Revenue and EBITA Revenue * For personal use only EBITA ^ 160 ($m) ($m) È 4% 45 142.0 140 137.0 40 38.8 35 120 È 37% 103.8 30 100 25 24.5 80 22.3 20 60 52.9 15 40 30.4 10 7.4 5.2 20 5 0 0 FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09 ^ excludes discontinued operations and Drilling Fluids and Che
Slide 6: Signs of recovery
Signs of recovery For personal use only Revenue * 50 ($m) Positive tool movements 45 43.2 since May 09 40 39.0 37.1 General increase in 35 32.8 30.5 drilling activity 30 26.2 25 Customers positive on 20 tender activity 15 Capital raisings by 10 resource companies 5 0 Improved key commodity
Slide 7: FY09 financials
For personal use only FY09 financials Paul Evans – Chief Financial Officer 7
Slide 8: Profit & loss FY08 / FY09
Profit & loss FY08 / FY09 ($ millions) FY07 FY08 FY09 Var % For personal use only Revenue 103.8 142.0 137.0 4% È EBITDA 25.5 42.1 27.8 34% È Depreciation (3.2) (3.3) (3.3) 2% Ç EBITA 22.3 38.8 24.5 37% È Amortisation (3.4) (6.0) (6.5) 8% Ç Net interest expense (1.9) (0.9) (0.8) 4% È Tax expense (5.8
Slide 9: Conservative balance sheet
Conservative balance sheet ($ millions) June 09 June 08 For personal use only Net cash 12.0 13.3 Solid working capital ratios Receivables 23.4 32.1 Inventory 26.4 21.7 $12.0m cash on hand Investment in SGE 20.5 17.5 Fixed assets 10.8 7.1 $5.4m unused facility Intangibles 79.2 79.9 Other assets
Slide 10: Low gearing
Low gearing For personal use only HPs $1.7m ITUK Total debt at 30 June 09 - $34.0m $2.5m 5% 7% Low gearing 16% Bank Loan $8.3m Bank facilities extended until 2014 25% Comm Bills $10.0m Interest cover (normalised EBITA / 29% net interest expense) = 30 times ITUK (Chardec) liability paid Jul
Slide 11: Operational review
For personal use only Operational review Bernie Ridgeway – Managing Director 11
Slide 12: A snapshot of Imdex's business
A snapshot of Imdex’s business For personal use only Drilling Fluids & Chemicals (DFC) Key markets • Consumable item Mining & Mineral • Keep drill holes open and lubricate Exploration moving parts while removing cuttings to the surface • Environmental focus • Manufacture & supply Oil & Gas Down Hole
Slide 13: Global presence
Global presence FY09 revenue vs FY08 For personal use only Europe (continuing operations) flat $8.2m Asia Pacific Ç 1% $75.6m Americas È 1% Europe 6% $29.9m Americas Africa 22% È 19% Asia Pacific 55% $23.2m Africa 17% FY09 revenue 13
Slide 14: Key highlights & operational review (DFC)
Key highlights & operational review (DFC) For personal use only Revenue ($m) Strong organic growth to Nov 08 Ç 7% followed by decline in world markets 100 90 85.7 91.7 Wildcat successfully integrated and 80 provided positive contribution 70 60 62.4 Commissioned new plants to better 50 41.7 ser
Slide 15: Key highlights & operational review (DHI)
Key highlights & operational review (DHI) For personal use only Continuing Revenue ($m) Decline in global mineral exploration 60 56.3 partially offset by resilient rental model È 20% 50 Global alliances grew global footprint 45.3 40 41.5 Flexit $10m liability settled by 10m shares Reposition
Slide 16: Market outlook
For personal use only Market outlook Bernie Ridgeway – Managing Director 16
Slide 17: Signs of recovery
Signs of recovery For personal use only 3Q09 represented trough – signs of recovery in 4Q09 Improved global debt and equity markets – better access to funding Key commodity prices such as copper and nickel recovered from 08 lows Major customers bottomed out in March/April 2009 Increased dr
Slide 18: Mining exploration spend v discoveries
Mining exploration spend v discoveries 12 16 For personal use only 11 Major/World Class Deposit Discoveries 14 10 Worldwide Exploration Spending Worldwide Exploration Spend 9 12 Number of Discoveries 8 10 (US$ 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
Slide 19: Oil & gas – worldwide upstream capex
Oil & gas – worldwide upstream capex For personal use only US$Bn 500 È21% Global spend expected to 400 drop 21% in 2009 Still high in historical terms 300 Supply/demand imbalances remain 200 Exploration - increasingly 100 complex Good opportunities for 0 2000 2001 2002 2003 2004 2005 2006
Slide 20: Strategy & growth opportunities
For personal use only Strategy & growth opportunities Bernie Ridgeway – Managing Director 20
Slide 21: Robust strategy – progress on track
Robust strategy – progress on track For personal use only Medium Term Past FY09 (2- 4 years) Early Stage End-market exposure2 1% 19% Minerals 20% Late Stage 49% 50% Minerals 61% Oil & Gas Management’s best estimate Management’s best estimate Fluids Divisional 19% Profit1 Downhole 50% 46% Instrumenta
Slide 22: FY10 strategy & opportunities – DFC
FY10 strategy & opportunities – DFC For personal use only Rental Market Solids Control Units – 100% rental Continue to expand and support global alliances Global Underpenetrated markets: Canada & Latin America Service niche markets Oil and Gas Provision of production & treating chemicals R
Slide 23: FY10 strategy & opportunities – DHI
FY10 strategy & opportunities – DHI For personal use only Rental Continue rental preference to sales Global Continue to expand and support global alliances Market instrumentation to the onshore & offshore Oil and Gas oil & gas industries globally Research and Innovative R&D to ensure technol
Slide 24: Resilient business with attractive growth opportunities
Resilient business with attractive growth opportunities For personal use only 4Q09 signs of recovery – market fundamentals improving Global growth opportunities in FY10 and beyond, particularly oil & gas Strong position to deliver on focused strategy Conservative balance sheet - bank facilit
Slide 25: Appendices
For personal use only Appendices 25
Slide 26: Statutory profit & loss statement
Statutory profit & loss statement Consolidated For personal use only Year Ended Year Ended 30 June 2009 30 June 2008 $’000 $’000 Continuing operations Revenue from sale of goods and operating lease rental 136,968 142,009 Other revenue from operations 2,024 1,900 Total revenue 138,992 143,909 Other i
Slide 27: Statutory balance sheet
Statutory balance sheet Consolidated 30 June 2009 30 June 2008 $’000 $’000 Current Assets For personal use only Cash and Cash Equivalents 11,975 13,276 Trade and Other Receivables 23,367 32,079 Inventories 26,535 21,716 Other Financial Assets 12,340 13,237 Other 1,507 1,200 75,724 81,508 Non Current
Slide 28: Statutory cash flow statement
Statutory cash flow statement Consolidated Year Ended Year Ended 30 June 2009 30 June 2008 For personal use only $’000 $’000 Cash Flows From Operating Activities Receipts from customers 161,981 154,253 Payments to suppliers and employees (132,564) (126,292) Interest and other costs of finance paid (
Slide 29: Imdex Group structure
Imdex Group structure For personal use only 29
Slide 30: Global reach
For personal use only Global reach 30
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