Imdex Ltd · ASX:IMD
Imdex — ABN AMRO Meeting of the Minds 2008
16 slides from Imdex's conference presentation, Sep 25, 2008
Slide 1: ASX cover letter: ABN AMRO Drillers/Service Providers Presentation
For personal use only 25 September 2008 Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam ABN AMRO - Drillers/Service Providers Presentation Please find attached a copy of the Imdex Limited presentation being made at the AB
Slide 2: Imdex Limited Drillers/Service Providers Presentation
For personal use only Imdex Limited Drillers/Service Providers Presentation ABN AMRO – Meeting of the Minds 2008 1
Slide 3: Imdex Snapshot
Imdex Snapshot For personal use only Core business - the manufacture, supply and distribution of high quality drilling fluids and down hole instrumentation Attractive end markets – strong long term demand for minerals, oil and gas underpinning buoyant global exploration/development activity Global R
Slide 4: What Do We Sell? Drilling Fluids
What Do We Sell? For personal use only Drilling Fluids Purpose: cool and lubricate the drill bit, keep the drill hole open and return cuttings to the surface Consumable Commodity – differentiating point is service Manufacture and sell Major competitors focused on oil & gas market Range of industries
Slide 5: What Do We Sell/Rent? Down Hole Instrumentation
What Do We Sell/Rent? For personal use only Down Hole Instrumentation Imdex is No.1 supplier of down hole instrumentation to the global mining industry Types – Survey instruments – Core orientation Leading technology – MEMS solid state gyro – Inertial navigation systems – Electronic/digital core ori
Slide 6: Who Are Our Customers?
Who Are Our Customers? For personal use only And a broad range of medium to smaller sized clients globally 5
Slide 7: Where is Imdex?
Where is Imdex? For personal use only Europe 62% $8.2m Asia Pacific 19% $92.6m Americas 41% $19.1m Africa 26% $28.7m 6
Slide 8: What We Have Achieved?
What We Have Achieved? For personal use only Normalised Revenue by Division Normalised EBITA ($m) ($m) 45 160 148.6 40.1 40 140 25% 35 62% 120 30 25 100 20 80 15 60 10 40 5 0 20 -5 0 -10 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 Fluids and Chemicals Down Hole Instrumentation Minerals Process
Slide 9: How Do We Compare?
How Do We Compare? For personal use only Forced ranking by EBIT margin, FY08A 30% 25% 20% 15% 10% 5% 0% AAX MRM MAH SDM JHX BLY NMS IMD ABC MND EAL AJL BKW DOW ORI TBG CLO LEI HST CPB TSE NFK NWH BKN CSR NOD CDD WOR BLD RCR GRD IDL EHL BOL TOL UGL Source: ABN AMRO Construction & Engineering Sector R
Slide 10: Strong Balance Sheet
Strong Balance Sheet For personal use only June 08 June 07 Strong cash position $000’s $000’s Cash 13,276 15,271 Growth in assets due to acquisitions Receivables 32,079 27,806 and organic business growth Inventory 21,716 13,839 Investment in SGE 17,508 16,056 Goodwill/intangible assets due to Proper
Slide 11: Attractive End Markets
Attractive End Markets For personal use only Record minerals exploration spend and increased production activity US$13.1B in 2008 - up 25% on US$10.5B in 2007 Strong demand for drilling fluids and down hole instrumentation – essential components of exploration and development Industry capacity const
Slide 12: Discovery Rates for Deposits & Annual Exploration Expenditures
Discovery Rates for Deposits & Annual Exploration Expenditures For personal use only Major/World Class Deposit Discoveries Worldw ide Exploration Spending Worldwide Exploration Spending (Billions $US) 12 16 11 14 10 Number of Discoveries 9 12 8 10 7 6 8 5 6 4 3 4 2 2 1 0 0 80 82 84 86 88 90 92 94 96
Slide 13: Attractive End Markets
Attractive End Markets For personal use only Strong investment into exploration and development of new reserves Worldwide exploration spend in 2007 was ~US$332b Interest in new exploration in all parts of the industry has not been higher for 30 years Complex exploration places a premium on technolog
Slide 14: Looking forward – what will Imdex look like in the medium term
Looking forward – what will Imdex look like in the medium term For personal use only Strong relationships, leading technology, sustainable growth and attractive end-markets Medium Term Objective Past Present (3-5 years) Greater penetration into 9% oil & gas markets for End-market Early Stage 1% expo
Slide 15: Summary
Summary For personal use only Attractive end market fundamentals Continued growth in mining and mineral exploration spend Increased drilling in oil & gas with expenditure at 30 year highs – opportunities for both drilling fluids and down hole instrumentation Commodity prices expected to drive demand
Slide 16: Summary: Strong growth in earnings and outlook
Summary For personal use only Strong growth in earnings FY08 was a record year for Group revenues and profit Fifth successive year of increased revenues and profits Profit margins and profit per employee highest amongst peers Outlook Strong track record in revenue and profit growth expected to conti