Slide 1: Imdex Limited 1H12 results presentation
For personal use only Imdex Limited 1H12 results presentation 20 February 2012 Bernie Ridgeway Managing Director Paul Evans Chief Financial Officer Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 1H12 Results - February 2012 1
Slide 2: Today's agenda
Today’s agenda For personal use only Overview Bernie Ridgeway 1H12 financial Paul Evans Bernie Ridgeway performance Managing Director Operational review Bernie Ridgeway Strategy & outlook Paul Evans Chief Financial Officer / Company Secretary Providing Innovative Drilling Fluids and Advanced Down Ho
Slide 3: Record first-half performance
Record first-half performance For personal use only Record revenue, EBITA and NPAT Record Minerals division revenue Strong balance sheet, comfortable gearing Strategic acquisitions enhance global footprint Record number of Reflex instruments on rent – likely to be exceeded in 2H12 Significant progre
Slide 4: Continued strong financial performance
Continued strong financial performance For personal use only ($m) 1H12 1H11 Var. Statutory revenue 138.5 95.9 44% Combined revenue* 139.9 95.9 46% EBITA 38.3 21.2 81% NPAT 22.7 12.1 88% Pre-tax operating cash flow 33.2 15.0 121% Gearing (ND / (ND + E)) 11.5% 18.4% 38% Interest cover 54 times 16 time
Slide 5: Record revenue
Record revenue For personal use only Combined revenue* 46% on 1H11 ($m) 139.9 1H12 above FY10 Minerals 109.2 89% of total revenue 134.3 96.0 strong performance in all regions 80.3 75.9 69.1 72.9 Oil & Gas 11% of total revenue Minerals 57.9 58.4 56.7 45.9 exciting DHS JV opportunity (post 1H12 result
Slide 6: Record EBITA
Record EBITA For personal use only 38.3 EBITA * 81% on 1H11 ($m) Strong Minerals performance in all major mining regions 26.9 1H12 in line with pre GFC FY08 38.8 performance 21.2 EBITA margin of 27.4% on combined 19.8 20.0 19.0 revenue JV 13.2 12.2 equity accounted 10.1 will make a positive profit 7
Slide 7: Profit & loss
Profit & loss For personal use only ($m) 1H12 1H11 Var. % Revenue 138.5 95.9 44% EBITDA 41.6 23.8 75% Depreciation (3.3) (2.6) 24% EBITA 38.3 21.2 81% Amortisation (2.9) (3.5) 14% Net interest expense (0.7) (1.3) 45% Tax expense (12.0) (4.3) 175% Statutory NPAT 22.7 12.1 88% EPS (cents) 11.14 6.17 8
Slide 8: Strong balance sheet
Strong balance sheet For personal use only ($m) Dec 11 Jun 11 Strong cash position Net cash 20.3 18.4 Net debt at 31 December 2011: Receivables 50.7 50.2 $18m Inventory 49.4 40.6 Investment in SEH 8.8 16.1 Pro-forma gearing post DHS JV acquisition comfortable at 23.7% DHS JV 4.3 - Fixed assets 19.2
Slide 9: Minerals division
Minerals division For personal use only 124.0 Revenue 52% on 1H11 ($m) Record Reflex fleet numbers Africa 18% 96.2 Integration of ADS Integration of System Mud (Brazil) 81.5 enhances geographic reach Americas 30% 68.4 Outlook for 2H12 63.6 64.8 61.4 strong mining and mineral Europe 4% 54.1 explorati
Slide 10: Record Reflex rental fleet
Record Reflex rental fleet For personal use only MAY 08 AUG 08 N OV 08 FEB 09 MAY 09 AUG 09 N OV 09 FEB 10 MAY 10 AUG 10 N OV 10 FEB 11 MAY 11 AUG 11 N OV 11 FEB 12 Reflex rental fleet continued to win market share and created new records in 1H12 Seasonal low in Dec 11 above pre GFC peak. Strong bou
Slide 11: Solids Removal Units (SRUs)
Solids Removal Units (SRUs) For personal use only Technology Previously known as Solids Control Units Unique technology for the diamond drilling industry Provisional patents lodged Advantages Low environmental footprint Reduced water usage & operating costs: low wear & tear simple mob/demob Signific
Slide 12: Oil & Gas division
Oil & Gas division For personal use only Combined revenue* ($m) 10% on 1H11 16.2 Includes $1.4m from DHS JV 15.9 AMC Europe building expertise 14.4 and planning for growth 13.1 Outlook for 2H12 11.8 11.9 11.1 Vaughn acquisition to support growth and make a 9.3 positive profit contribution 7.7 contin
Slide 13: Integrating ADS & System Mud
Integrating ADS & System Mud For personal use only Australian Drilling Specialities (ADS) Purchase price ~$12.0m, effective date 1 July 2011 Immediately EPS accretive and provided additional benefits such as: product formulations and intellectual property, key polymer technology increased control ov
Slide 14: DHS JV acquisition of Vaughn Energy Services
DHS JV acquisition of Vaughn Energy Services For personal use only Vaughn Energy Services (Vaughn) Oil & gas services business in US onshore market Acquired 100% effective 1 Jan 12 CY11 revenue of US$39m Purchase price (US$m) $38m cash on settlement ($19m Imdex share) $12m cash in 2 EBITDA earn outs
Slide 15: DHS JV acquisition of Vaughn
DHS JV acquisition of Vaughn For personal use only Immediately earnings accretive for Imdex Becomes 3rd largest global provider in the US$400m-US$500m oil & gas down hole survey market Substantive entry into US onshore oil & gas market, representing approximately one third of the global market Diver
Slide 16: On track with strategy
On track with strategy For personal use only End market 2 Past 1H12 Medium term Oil & Gas 11% Minerals 89% Instruments Profit 1 Fluids 28% Services 72% Rent / Sell Sales mix 2 30% Rentals 70% ¹ Based on actual or anticipated EBITA 2 Based on actual or anticipated combined revenue Providing Innovativ
Slide 17: Estimated global exploration spend
Estimated global exploration spend For personal use only (non-ferrous) (US$Bn) 22.5 20.4 20.8 19.0 19.3 18.2 18.0 17.1 13.2 11.5 10.4 7.5 7.7 5.2 5.1 4.6 3.5 3.7 3.5 2.5 2.9 2.8 2.6 2.2 2.4 1.9 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2
Slide 18: Key business drivers
Key business drivers For personal use only Robust commodity prices Mineral exploration spend Exploration activity levels and spending at record levels and expected to continue Client rig utilisation % Current high utilisation levels expected to continue Level of Reflex rentals New record fleet level
Slide 19: Summary
Summary For personal use only 1H12 – Another set of record results Record revenue, EBITA & NPAT Record operating cash flow Strong balance sheet with comfortable gearing after DHS JV acquisition of Vaughn FY12 interim dividend of 3.25 cps, fully franked 2H12 – Positive outlook with continued growth e
Slide 20: 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