Slide 1: Capital Raising Presentation
Not for distribution or release in the United States or any other jurisdiction in which distribution would be unlawful For personal use only Capital Raising Presentation August 2015 1 Not for distribution or release in the United States or any other jurisdiction in which distribution would be unlawf
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Summary information For personal use only This Presentation contains summary information about Imdex Limited (Company), its subsidiaries and their activities which is current as at the date of this Presentation. The information in this Presentation is of a genera
Slide 3: Important Information and Disclaimer: Future performance and forward looking statements
Important Information and Disclaimer Future performance and forward looking statements For personal use only This Presentation contains certain ‘forward looking statements’. Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘l
Slide 4: Summary
Summary • Minerals Division profitable in FY151 - normalised EBITDA of $23.9m For personal use only • Oil & Gas Division underperformed – one-off impairments and provisions Financial Update • Impact of impairments and provisions confined to FY15 results • FY16 bank covenants reset, conditional on de
Slide 5: Investment Highlights
Investment Highlights • Post capital raising Imdex will have: For personal use only • A conservative balance sheet with low gearing • Appropriate working capital levels and available facilities • Pro-forma NTA of $0.343 per share1 Financially Sound • FY15 pro-forma net debt reduced to $3.4m and cove
Slide 6: Company Snapshot
Company Snapshot For personal use only Corporate Information Share Register – June 2015 Analysis of top 75% of shareholders as at 18 June 2015 ASX Listed IMD Share Price (17 August 2015) A$ 0.24 Institutional Investors Issued Shares m 216.2 Market Cap (17 August 2015) A$m 51.9 Directors, Employees &
Slide 7: Equity Raising
For personal use only Equity Raising 7 Not for distribution or release in the United States or any other jurisdiction in which distribution would be unlawful
Slide 8: Placement Overview
Placement Overview • Placement of 140m new ordinary Imdex shares (New Shares) in two tranches to sophisticated For personal use only and professional investors to raise $28m (before issue costs) Size and Structure • Tranche 1 – 32.4m New Shares to raise $6.48m under existing placement capacity • Tra
Slide 9: Share Purchase Plan Overview
Share Purchase Plan Overview For personal use only • Non-underwritten Share Purchase Plan (SPP) to raise up to a maximum of $7m (Cap) • Eligible Imdex shareholders with registered addresses in Australia and New Zealand will be Size and Structure invited to subscribe for up to $15,000 in ordinary sha
Slide 10: Operational and Financial Overview
For personal use only Operational and Financial Overview 10 Not for distribution or release in the United States or any other jurisdiction in which distribution would be unlawful
Slide 11: Minerals – Update and Strategy
Minerals – Update and Strategy For personal use only • FY15 revenue increased 13% to $141.1m (FY14: $125.3m) Financial • Normalised* FY15 EBITDA increased 44% to $23.9m (FY14: $16.6m) Update • Normalised* FY15 EBITA increased 62% to $17.2m (FY14: $10.6m) • Continuing signs of improvement – increased
Slide 12: Minerals – Update and Strategy
Minerals – Update and Strategy For personal use only Number of Instruments on Rent – FY15 Average up 14% on FY14 Seasonal factors: April / May 2015 change over from winter to summer drilling programme in North America; December – February traditional holiday shutdown Customer Project Phase Commodity
Slide 13: Minerals – Industry Changing Technologies
Minerals – Industry Changing Technologies For personal use only • Customer focus on reducing costs and increasing efficiencies – from majors down Key Drivers • Increased mining complexity – resources deeper and harder to find • Customers now open to adopting new technologies and practices • Minerals
Slide 14: Oil & Gas – Update and Strategy
Oil & Gas – Update and Strategy For personal use only • FY15 combined* revenue of $67.4m (FY14: $79.3m) Financial • Normalised** FY15 EBITDA loss of $5.7m (FY14: a loss of $2.3m) Update • Normalised** FY15 EBITA loss of $8.6m (FY14: a loss of $4.3m) • Break-even EBITA result forecast for FY16 • AMC
Slide 15: Financial Update
Financial Update For personal use only FY15 FY15 FY 15 FY14 2H15 1H15 A$m Including One-offs Normalised3 Normalised3 A$m A$m One-offs Combined revenue1 208.6 - 208.6 204.6 94.2 114.4 Total One-offs2 - (15.4) - - (27.5) 12.1 EBITDA Segment Results AMC Oil & Gas (30.1) (27.4) (2.7) (0.6) (2.9) 0.2 Oil
Slide 16: FY15 Provisioning and impairments
FY15 Provisioning and impairments For personal use only FY15 2H15 1H15 Items A$m A$m A$m Profit on sale of SEH 14.2 - 14.2 O&G product containment (2.1) - (2.1) O&G restructure (26.3) (26.3) - Debtor provisioning and miscellaneous (1.2) (1.2) - Total One-offs for FY15 (15.4) (27.5) 12.1 • Oil & Gas
Slide 17: Pro-forma Balance Sheet
Pro-forma Balance Sheet For personal use only FY14 FY151 Adj FY15 Pro-forma2 A$m A$m A$m A$m • Capital raising strengthens balance sheet – Cash 10.1 8.4 1.7 10.1 proceeds used to reduce bank debt & Receivables 39.8 34.0 - 34.0 improve working capital Inventory 42.6 37.3 - 37.3 • FY16 bank covenants
Slide 18: Working Capital Management
Working Capital Management For personal use only • $13.7m of cash generated from $11.6m of EBITDA profit (normalised) • Working capital release of $4.4m – primarily debtors and inventory • Operational cash outflow due to one offs $4.9m – includes $3.7m for product containment issue provisioned in FY
Slide 19: Technology Leadership
For personal use only Technology Leadership 19 Not for distribution or release in the United States or any other jurisdiction in which distribution would be unlawful
Slide 20: REFLEX HUB – Driving Efficiencies
REFLEX HUB – Driving Efficiencies For personal use only 2020 Not for distribution or release in the United States or any other jurisdiction in which distribution would be unlawful
Slide 21: REFLEX – Blue Chip Customers
REFLEX– Blue Chip Customers For personal use only 21 Not for distribution or release in the United States or any other jurisdiction in which distribution would be unlawful
Slide 22: Summary
Summary For personal use only • Post capital raising Imdex is re-set and has a strong balance sheet • Minerals Division profitable in FY15 • Minerals sector recovering – increased earnings not dependent on overall increase in activity Imdex re-set to • Oil and gas business restructured - forecast to
Slide 23: Case Study: BHP Mitsubishi Alliance (BMA)
Case Study: BHP Mitsubishi Alliance (BMA) For personal use only “Our target is to get an extra A productivity and cost improvement enabler for 30% production out of the rigs, exploration drilling rigs this is an enabler with which to do this.” Requirement for BHP Mitsubishi Alliance (BMA) Doug Dunn
Slide 24: Case Study: BMA
Case Study: BMA For personal use only Key elements of the REFLEX solution “We have real-time visibility • Real-time reporting on invoice information. It is a Daily Operations Report far more efficient way of Drilling Summary Report (cost summary) managing our costs and forecast.” Field Operations Da
Slide 25: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. New For personal use only Shares may not be offered or sold in any country except to the extent permitted below. Austral
Slide 26: International Offer Restrictions
International Offer Restrictions United States For personal use only This document has been prepared for publication in Australia and may not be released or distributed in the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the U
Slide 27: International Offer Restrictions
International Offer Restrictions United Kingdom For personal use only Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of
Slide 28: Key Risks
Key Risks Introduction For personal use only There are a number of risks, both specific to the Company and of a general nature, which may, either individually or in combination, affect the future operational and financial performance of the Company and the value of its shares. The risks set out belo
Slide 29: Key Risks
Key Risks Interest Rate Risks For personal use only Interest rates may rise significantly which may impact terms of trade, working capital and finance costs in the Company’s future operations. Changes to Government Legislation and Policy including Taxation New legislation and changes to existing leg
Slide 30: Key Risks
Key Risks Research and Development For personal use only The Company will continue its on-going development of and research into new and existing products. The Company can make no representations that the continued development of existing and/or new products and/or services will be successful. There