Imdex Ltd · ASX:IMD
Imdex — H1 2013 Earnings Presentation
27 slides from Imdex's earnings presentation, Feb 18, 2013
Slide 1: Imdex Limited 1H13 results presentation
For personal use only Imdex Limited 1H13 results lt presentation t ti 18 February 2013 Bernie Ridgeway - Managing Director Paul Evans - Chief Financial Officer Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 1
Slide 2: Today's agenda
Today’s y agenda g For personal use only Overview Bernie Ridgeway 1H13 financial performance Paul Evans Operational review Bernie Ridgeway St t Strategy & outlook tl k B i Rid Bernie Ridgeway Bernie Ridgeway Paul Evans Managing g g Director Chief Financial Officer / Company Secretary Providing Innov
Slide 3: Overview
For personal use only Overview Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 3
Slide 4: Solid performance despite challenging conditions
Solid p performance despite p challenging g g conditions For personal use only Combined revenue 3% O&G revenue 111% to new record high g Minerals revenue 18% EBITA 32% Cyclical Minerals slowdown reduced Reflex fleet utilisation and drilling fluids revenue 2.50 cps fully franked int
Slide 5: Key metrics
Keyy metrics For personal use only ($m) 1H13 1H12 Var. Statutory revenue 127 6 127.6 138 5 138.5 8% Combined revenue* 135.6 139.9 3% EBITA 26.2 38.3 32% NPAT 16.6 22.7 27% Pre-tax operating cash flow 35.9 33.2 8% Gearing g ((ND / ((ND + E)) )) 23% 12% 101% Interest cover 14 times 54 times
Slide 6: Revenue
Revenue For personal use only Combined revenue* ($m) 3% on 1H12 (record level) 1H13 is 3rd highest half year revenue 139.8 139.1 135.6 Minerals 109.2 75% of combined revenue 96 0 96.0 Indications that cyclical slowdown 80.3 may have bottomed 75.9 72.9 69.1 Good growth available in 57.9
Slide 7: EBITA
EBITA For personal use only EBITA ($m)* EBITA 32% on 1H12 (record level) 1H13 is 4th highest half year EBITA 38.3 36.9 Continued investment in: O&G strategy 26.9 26.2 Minerals expansion ioGlobal 21.2 19.8 20.0 19.0 Skilled staff 13.2 Product P d td development l t and d R&D 12.2 10.
Slide 8: 1H13 financial performance
For personal use only 1H13 financial performance Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 8
Slide 9: Profit & loss
Profit & loss For personal use only ($m) 1H13 1H12 Var. % Revenue 127.6 138.5 8% EBITDA 29.6 41.6 29% Depreciation (3.4) (3.3) 3% EBITA 26.2 38.3 32% Amortisation (1.5) (2.9) 48% Net interest expense (1.8) (0.7) 157% Tax expense (6.3) (12.0) 48% Statutory NPAT 16.6 22.7 27% EPS (cents) 7.9 1
Slide 10: Solid working capital management
Solid working g capital p management g For personal use only $21.7m of cash generated from $26.2m of EBITA Working capital release due to improved stock and debtor management Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 10
Slide 11: Balance sheet
Balance sheet For personal use only ($m) Dec 12 Jun 12 Net cash 10.0 11.2 Receivables 51.8 59.7 Strong working capital Inventory 49.6 52.1 management Investment in SEH 32.7 21.4 Net debt at 31 Dec 12 of $56.3m VES International JV 25.6 24.3 Gearing comfortable at 23% Fixed assets 34 1 34.1 19
Slide 12: Operational review
For personal use only Operational review Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 12
Slide 13: Minerals division
Minerals division For personal use only Europe 4% Revenue 18% on 1H12 (record level) Africa 20% ($m) 124.0 117.7 1H13 is 3rd highest half year Americas 31% 102.1 Integration of ioGlobal Asia Pac 45% 96.2 Global introduction of SRUs – early stages 81.5 Product development 68.4 61.4 63.6 64
Slide 14: Sustainable and diversified revenue base
Sustainable and diversified revenue base For personal use only 1H13 Minerals Revenue Other 15% Junior Production 18% Exploration 23% Iron 30% 12% Gold 51% Major / Intermediate Development Copper 82% 47% 22% Commodity Stage Customer >70% from gold and copper where prices are above long term average
Slide 15: Reflex rental fleet
Reflex rental fleet For personal use only Number of instruments on rent FEB 08 JUN 08 OCT 08 FEB 09 JUN 09 OCT 09 FEB 10 JUN 10 OCT 10 FEB 11 JUN 11 OCT 11 FEB 12 JUN 12 OCT 12 FEB 13 Month on month slowdown from July 12 to Dec 12 56% rebound from 31 Dec 12 to 8 Feb 13 Providing Innovative Drill
Slide 16: Acquisition of ioGlobal
Acquisition q of ioGlobal For personal use only Effective 1 November 2012 $8m consideration ($4.8m cash, $3.2m shares) Represents multiple of 4x forecast FY13 EBIT Provides cloud-based cloud based data management solutions for the mining, mineral exploration and oil and gas industries Acqu
Slide 17: Oil & Gas division
Oil & Gas division For personal use only Combined revenue* 33.5 ($m) 111% on 1H12 Record half year Includes $8.0m from VES International JV 21.3 Strong gggrowth in Europe p and Asia Pac, CBM strong 16.2 15.9 14.4 Additional management depth 13.1 11.9 11.8 11.1 Outlook for 2H13 - continu
Slide 18: VES International Joint Venture
VES International Joint Venture For personal use only 1H13 2H12 (m) unaudited Continued strong EBITA primarily Revenue USD 27.6 27.1 from US based operations EBITDA USD 7.8 8.0 Middle East operations restructured, profitable at EBITDA line in Dec 12 Depreciation USD (2.5) (3.0) Negative NPAT d
Slide 19: Outlook
For personal use only Outlook Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 19
Slide 20: On track with strategy
On track with strategy gy For personal use only Past 1H13 Medium term End marrket Oil & Gas 25% Minerals 100% 75% Geographic Asia Pacific reach Other 100% 55% 45% G Rent / SSell Sales 30% mixx 100% Rentals 70% Note: All numbers based on actual or anticipated combined revenue Providing Innovative Dri
Slide 21: 1H13 Summary
1H13 Summary: For personal use only Solid results despite the cyclical minerals slowdown Small decline in combined revenues despite challenging minerals market conditions Much improved Oil & Gas revenue growth (111% increase) Cyclical slowdown impact on Minerals division revenue Consequentia
Slide 22: 2H13 Outlook
2H13 Outlook: For personal use only Fundamentals point to positive outlook Fundamentals of key industry segments positive High exposure to Majors and Intermediates with long term projects High exposure to late stage exploration and production projects Continued geographic expansion and diver
Slide 23: Appendix
For personal use only Appendix Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 23
Slide 24: Strength through geographic diversification
Strength g through g ggeographic g p diversification For personal use only 29% Americas 27% Increasingly diversified business by geographic region Further growth opportunity in Europe 15% Africa 17% and Africa 6% Asia Pacific share likely to decline as a 11% Europe proportion of revenue as oth
Slide 25: Comprehensive product offering
Comprehensive p p product offering g For personal use only SRU Fluids Integrated SaaS Core Orientation Gyro Down Hole Survey Magnetic Down Hole Survey Directional Equipment Exploration Development Production 30% revenue 47% revenue 23% revenue Providing Innovative Drilling Fluids and Advanced Down H
Slide 26: Key business drivers and outlook
Key y business drivers and outlook For personal use only Driver 2H13 Outlook Exposure p to Medium to longg term project p j horizons Majors/Intermediates Many have confirmed similar budgets to CY12 82% of 1H13 Minerals revenue from Major and Intermediate companies Exploration drilling MEG forecast r
Slide 27: 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 p purport p to be complete