Slide 1: 1H14 Results Presentation
For personal use only 1H14 Results Presentation 17 February 2014 1
Slide 2: Today's Agenda
Today’s Agenda For personal use only Overview Bernie Ridgeway 1H14 financial performance Paul Evans Operational review Bernie Ridgeway Summary & outlook Bernie Ridgeway Bernie Ridgeway Paul Evans Managing Director Chief Financial Officer / Company Secretary 2
Slide 3: Overview
For personal use only Welcome Chairman’s Address Managing Director’s Address Resolutions & Voting Close of Meeting Overview 3
Slide 4: 1H14 Summary
1H14 Summary For personal use only • 1H14 performance impacted by: •Cyclical slowdown in minerals sector & early seasonal shutdown •Continued investment in innovative products & leading technologies •Continued positioning for substantial growth – Oil & Gas sector •One-off write downs ($2.4m) •Strong
Slide 5: Key Metrics
Key Metrics ($m) 1H14 1H13 Var. For personal use only Statutory revenue 92.2 127.6 28% Combined revenue* 101.9 135.6 25% EBITDA 24.2 29.6 18% EBITA 20.0 26.2 24% EBITA (exc SEH profit) (0.1) 26.2 100% NPAT 15.3 16.6 8% EPS (cents) 7.3 7.9 8% Pre-tax operating cash flow 4.2 35.9 88% Gearing (
Slide 6: Revenue of $101.9m
Revenue of $101.9m For personal use only Combined revenue* • ~ 25% on pcp ($m) • Minerals – 62% of combined revenue • Growth opportunities: • Underpenetrated mining regions • Non-mining business • SRUs & new technologies • Oil & Gas – 38% of combined revenue • Growth opportunities: • Continued expa
Slide 7: EBITA
EBITA For personal use only EBITA ($m)* • ~ 24%m on pcp • EBITA (exc SEH) ~ 26.3m on pcp • Gross profit margins remain robust • One-off write downs $2.4m • VES JV: • Strong EBITDA performance • Equity accounted result impacted by tax, depreciation & amortisation charges *Includes equity accounted
Slide 8: 1H14 Financial Review
For personal use only 1H14 Financial Review 8
Slide 9: Balance sheet
Balance sheet For personal use only ($m) Dec 13 Jun 13 Net cash 14.9 10.0 Receivables 36.0 45.2 • Prudent working capital Inventory 56.2 53.4 management Investment in SEH 24.4 26.5 • Inventory reductions in Minerals - VES International JV 25.8 25.6 increases in O&G to support Fixed assets 40.3 40.7
Slide 10: Solid working capital management
Solid working capital management For personal use only * EBITA excludes the gain arising on the disposal of Sino Gas & Energy Holdings Limited (SEH) during the period. • $6.4m of cash generated from operations • Working capital release due to improved stock and debtor management • Reduction in miner
Slide 11: Operational Review
For personal use only Operational Review Operational Review 11
Slide 12: Minerals Division
Minerals Division For personal use only • ~ 38% on pcp Revenue ($m) • Continued subdued activity • Early seasonal shutdown • Growth opportunities identified: • SRUs & new technologies • Underpenetrated mining regions • Non-mining business • Outlook for FY14: • Customer focus on efficiencies • Growi
Slide 13: Diversified Revenue
Diversified Revenue For personal use only 1H14 Minerals Revenue Junior Non-Mining 15% 7% Exploration Others Production 22% 27% Gold 20% 41% Iron Intermediate/Major Development 12% 85% 51% Copper 20% Customer Type Drilling Phase Commodity *See slide 27 for additional information 1H14 saw very little
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 • 2H14 - anticipate return to Sept / Oct 2013 levels • Market share maintained 14
Slide 15: Oil & Gas Division
Oil & Gas Division For personal use only Combined revenue* ($m) • Revenue ~ 14% on pcp • Includes $9.7m from VES JV • Strong growth in Asia Pac • CBM strong in Australia • Investment in personnel & equipment • Greater management depth • Positioning for med / long-term growth *Includes 30% of VES In
Slide 16: Substantial growth opportunities
Substantial growth opportunities • Strong markets: For personal use only • Conventional oil & gas, Geothermal, Shale gas/Tight gas • Gas and CO2 storage, Environmental, Civil • Focus on East African/Middle East, European and Asia/Pacific markets • Organic growth AMC & VES JV 2012 Drilling & Completi
Slide 17: VES JV - 30% interest
VES JV - 30% interest For personal use only • 3rd largest provider of downhole survey services in global oil & gas market • Main competitors are Scientific Drilling International (SDI) & Gyrodata • Both SDI & Gyrodata supply directional drilling services • Currently focused on US land based market,
Slide 18: VES JV
VES JV 1H14 1H13 For personal use only (m) unaudited Revenue (100%) USD 29.9 27.6 EBITDA (100%) USD 10.9 7.8 • Continued strong EBITDA Depreciation (100%) USD (3.8) (2.5) • Acquisition accounting EBITA (100%) USD 7.1 5.3 finalised in FY13 with Interest (100%) USD (0.5) (0.2) additional $3.3m non-cas
Slide 19: Summary and Outlook
For personal use only Summary and Outlook Summary and Outlook 19
Slide 20: Summary – 1H14
Summary – 1H14 For personal use only • Cyclical downturn and early seasonal shutdown in minerals • Challenging minerals market conditions led to lower revenues • Earnings impacted • Focused on costs and efficiencies • Continuing to reinvest for growth – people and technologies • Substantial opportun
Slide 21: Outlook
Outlook For personal use only • Continued subdued activity in Minerals industry • Global rig utilisation circa 20% - 30% • REFLEX rental fleet – expected to increase & stabilise around Sept /Oct 2013 levels • Market conditions present opportunities for REFLEX HUB & new technologies • Robust activity
Slide 22: Key Priorities – FY14
Key Priorities – FY14 • Strong focus on prudent working capital management, cost For personal use only structures, efficiency & productivity improvements • Actively focusing on 3 broad initiatives: • Pursuing market share growth in Minerals Division: underpenetrated markets, non-mining business, SRU
Slide 23: Questions
For personal use only Questions 23
Slide 24: Appendix
For personal use only APPENDIX Appendix 24
Slide 25: On Track with Strategy
On Track with Strategy For personal use only Past 1H14 Medium term End market Oil & Gas Minerals 38% 100% 62% Geographic Asia Pacific reach 54% 46% Other 100% Rent / Sell Sales 33% mix 100% Rentals 67% Note: All numbers based on actual or anticipated combined revenue 25
Slide 26: Minerals Product Offering
Minerals Product Offering For personal use only 26
Slide 27: Diversified Revenue Criteria
Diversified Revenue Criteria For personal use only • Customer Type – defined as annual revenue: • Major – greater than US$500m • Intermediate – Greater than US$50m • Junior – Less than US$50m Gold • Drilling Phase defined as follows: 41% • Exploration – Pre-inferred resource / greenfields • Developm
Slide 28: Reflex HUB
Reflex HUB For personal use only Europe EuropeAFRICA Chile 28
Slide 29: 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