Imdex Ltd · ASX:IMD
Imdex — Non-Deal Roadshow (June 2011)
28 slides from Imdex's roadshow presentation, Jun 6, 2011
Slide 1: Cover letter to ASX: June 2011 Roadshow
For personal use only 6 June 2011 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam June 2011 Roadshow Please find attached the June 2011 Roadshow presentation. Yours faithfully Imdex Limited Paul Evans Company Secretary
Slide 2: Imdex Limited June 2011 Roadshow
For personal use only Imdex Limited June, 2011 Roadshow June, 2011 Roadshow 1
Slide 3: 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
Slide 4: Overview
Overview For personal use only • ASX listed mining technology and services company (ASX: IMD), head office in Perth, WA • Global operations – presence in all major mining regions, niche Oil & Gas markets (Fluids), global Oil & Gas (Instrumentation/services) • ~380 people globally (>50% outside Austr
Slide 5: Structured to meet client needs
Structured to meet client needs For personal use only Market Minerals Oil & Gas Product Instruments Instrumentation Fluids Fluids service Brand June, 2011 Roadshow 4
Slide 6: Investment Highlights
Investment Highlights For personal use only • Market leading technology and exciting new product pipeline • continued business investment through GFC to maintain technology leadership • Business reorganisation delivering benefits • simplification of brands • regionalised businesses • Strong financia
Slide 7: Investment Highlights cont...
Investment Highlights cont... For personal use only • Positioned for growth • improved underlying market fundamentals • focused strategy • Growth in FY12 and beyond to come from • acquisitions (eg Mud-Data – Oil & Gas, geothermal – Europe) • DHSO Oil & Gas services joint venture (global) • organic i
Slide 8: Imdex's competitive advantages
Imdex’s competitive advantages For personal use only • Well positioned • Own our Intellectual Property, do our own research & product development and manufacturing • We have a global presence; sell/rent our products to market • Specialist skill set – both Minerals and Oil & Gas • Drilling Fluids and
Slide 9: Strong revenue growth
Strong revenue growth For personal use only Revenue * ($m) unaudited 49.0 49.2 46.9 43.2 42.9 Minerals 39.0 37.1 33.0 30.5 29.5 28.9 26.2 O&G 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 * excludes other income & discontinued operations June, 2011 Roadshow 8
Slide 10: Strong EBITA growth
Strong EBITA growth For personal use only EBITA * ($m) unaudited 12.5 12.0 11.4 9.8 9.9 8.0 7.5 5.2 4.2 3.3 2.6 1.9 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 * excludes other income & discontinued operations June, 2011 Roadshow 9
Slide 11: Minerals – key customers
Minerals – key customers For personal use only June, 2011 Roadshow 10
Slide 12: Drilling Fluids
Drilling Fluids For personal use only • Cools and lubricates the bit and drill rods • Clears cuttings from the face of the bit and carries them to the surface • Supports the formation through hydrostatic pressure • Protects the drill rods and reduces excessive wear • Plasters the whole with an semi-
Slide 13: Reflex main product line
Reflex main product line For personal use only EZ Shot Single shot magnetic down hole survey instrument EZ trac Multi shot magnetic down hole survey instrument Gyro Non magnetic down hole survey instrument ACT II Digitial, electronic core orientation tool June, 2011 Roadshow 12
Slide 14: We straighten things out.....
We straighten things out..... For personal use only • A 2˚ variation at surface leads to a 35m discrepancy at 1000m 2˚ • Reflex survey tools provide accurate data on borehole path June, 2011 Roadshow 13
Slide 15: We straighten things out.....
We straighten things out..... For personal use only • Core orientation provides accurate data on dip and strike of ore bodies • Essential for efficient mine planning June, 2011 Roadshow 14
Slide 16: Minerals – record tool rental fleet
For personal use only No. of tools on active hire Sep-07 Nov-07 Jan-08 June, 2011 Roadshow Mar-08 • • • May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Record high at 31 May 2011 Sep-09 Nov-09 Jan-10 Minerals – record tool rental fleet Mar-10 May-10 Significant growth ( 290%) from April 09 l
Slide 17: Solids Control Technology
Solids Control Technology For personal use only Traditional drilling fluid sumps No sumps – fully enclosed system • Solids removal and fluid property management • Small environmental site footprint • Reduced site set up and remediation costs • Reduced water consumption • Less wear and tear to drilli
Slide 18: DHSO (Lime Rock) Oil & Gas Services J/V
DHSO (Lime Rock) Oil & Gas Services J/V For personal use only • DHSO an existing customer of Imdex • Majority owned by Lime Rock • 50:50 joint venture based in Dubai, effective 1 July, 2011 • Contributions: • DHSO – cash/clients • Imdex – technology • Imdex sells technology to the JV at cost + margi
Slide 19: Mud-Data Acquisition
Mud-Data Acquisition • Drilling fluids and chemicals: For personal use only • Complementary to the current fluids & chemicals businesses • Good strategic fit – footprint into Europe • Strong markets: • Conventional oil & gas • Geothermal • Shale gas/Tight gas • Gas storage and CO2 storage • Environm
Slide 20: Increasing estimated global exploration spend
Increasing estimated global exploration spend (non-ferrous) (US$Bn) For personal use only 22.5 20.4 20.8 19.0 19.3 18.0 17.1 16.0 13.2 11.5 10.4 7.5 7.7 5.1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: McKinsey analysis; Metals Economics Group; Boart Longyear • Proje
Slide 21: On track with strategy
On track with strategy For personal use only Past 1H11 Medium Term End market 2 Oil & Gas 15% Minerals 100% 85% Instruments Profit 1 33% Fluids 67% Services Rent / Sell Sales 29% mix 2 Rentals 71% ¹ Based on actual or anticipated EBITA 2 Based on actual or anticipated Revenue June, 2011 Roadshow 20
Slide 22: Key business drivers and outlook
Key business drivers and outlook For personal use only Mineral exploration Strong commodity prices. Exploration activity levels spend and estimated spend at record levels Client rig utilisation % Estimated full drill rig utilisation levels around mid C2011 Level of tool rentals New tool records set
Slide 23: Summary
Summary For personal use only • Strong financial results delivered • 1H11 record revenue and profit levels • Dividend program reinstated • Record mining tool rental numbers at 31 May, 2011 • Strong balance sheet with comfortable gearing • Record revenue and EBITA in 3Q11 • Growth initiatives • Mud-D
Slide 24: Appendices
For personal use only Appendices June, 2011 Roadshow 23
Slide 25: Strong revenue growth
Strong revenue growth For personal use only Revenue * ($m) 95.9 Minerals 80.3 72.9 75.9 69.1 58.4 57.9 56.7 unaudited 45.9 49.2 29.5 23.3 O&G 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 3Q11 * excludes other income & discontinued operations June, 2011 Roadshow 24
Slide 26: Strong EBITA growth
Strong EBITA growth For personal use only EBITA * ($m) 21.2 19.8 20.0 19.0 13.2 unaudited 12.2 12.0 10.1 7.5 4.3 4.5 3.0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 3Q11 * excludes discontinued operations and non-operational items June, 2011 Roadshow 25
Slide 27: Conservative balance sheet
Conservative balance sheet For personal use only ($ millions) Dec 10 Jun 10 Net cash 15.9 9.0 Receivables 39.8 41.2 Inventory 36.5 28.6 Investment in SEH 16.6 6.8 • Strong liquidity and working Fixed assets 15.1 13.6 capital ratios Intangibles 54.9 50.0 • Decreased gearing due to Other assets / Defe
Slide 28: Comfortable gearing levels
Comfortable gearing levels For personal use only 50.0 45.0 14.3 (5.0) • Additional debt of $14.3m for Fluidstar 40.0 (0.7) acquisition 35.0 • $5.0m of AUD debt swapped into CAD. Better natural hedge – no net impact on 30.0 debt levels 25.0 • $5.0m of loan repayments as scheduled 20.0 41.2 40.6 40.6