Imdex Ltd · ASX:IMD
Imdex — Macquarie Australia Conference 2011
25 slides from Imdex's conference presentation, May 4, 2011
Slide 1: ASX cover letter for Macquarie Australia Conference presentation
For personal use only 4 May 2011 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Macquarie Australia Conference Please find attached the Macquarie Australia Conference presentation to be delivered in Sydney today. Yours faithfully Imdex Limite
Slide 2: Imdex Limited Macquarie Australia Conference
For personal use only Imdex Limited Macquarie Australia Conference Sydney – 4 May 2011 Macquarie Conference – 4 May 2011 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 industrial 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 Australia) • Products: •
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 Macquarie Conference – 4 May 2011 4
Slide 6: Key points
Key points For personal use only • Financial performance strong: 1H11 – record half year performance, 3Q11 – record quarter revenue performance (Rev: $49.2m, EBITA: $12.0m) • Consistent revenue and EBITA improvement since 2H09 low • Investing and repositioning through the GFC facilitated early benef
Slide 7: Imdex's competitive advantages
Imdex’s competitive advantages • Well positioned For personal use only • Own our Intellectual Property, do our own research & product development and manufacturing • We have a global presence; sell/rent our products to market • Specialist skill set – both Minerals and Oil & Gas • Drilling Fluids and
Slide 8: Strong revenue growth
Strong revenue growth For personal use only Revenue * ($m) unaudited 49.0 49.2 46.9 43.2 42.9 39.0 37.1 33.0 30.5 29.5 28.9 26.2 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 * excludes other income & discontinued operations Macquarie Conference – 4 May 2011 7
Slide 9: Strong EBITA growth
Strong EBITA growth For personal use only EBITA * ($m) unaudited 12.5 12.0 11.4 9.8 9.9 8.0 7.5 5.2 4.2 3.3 2.6 1.9 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 * excludes other income & discontinued operations Macquarie Conference – 4 May 2011 8
Slide 10: Minerals Division Revenue
Minerals Division 81.5 Revenue * For personal use only Africa ($m) 15% Americas 68.4 Europe 63.5 64.7 Asia Pacific 61.4 26% 26% 54.0 unaudited 46.4 2% 42.6 43.3 40.5 57% 19% 28% 4% 49% 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 3Q11 NB: Regional structure adopted 1 July 10 – Comparatives have been
Slide 11: Record mining tool rental fleet
Record mining tool rental fleet For personal use only Jan-08 Jan-09 Jan-10 Jan-11 Sep-07 Nov-07 Mar-08 Jul-08 Sep-08 Nov-08 Mar-09 Jul-09 Sep-09 Nov-09 Mar-10 Jul-10 Sep-10 Nov-10 Mar-11 May-08 May-09 May-10 • Significant growth ( 252%) from April 09 low point • Seasonal slowdown over December – hig
Slide 12: Oil & Gas Division Revenue
Oil & Gas Division Revenue * For personal use only 16.2 ($m) 14.4 11.8 11.9 11.1 9.3 7.7 unaudited 5.9 3.9 3.3 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 3Q11 * excludes other income & discontinued operations Macquarie Conference – 4 May 2011 11
Slide 13: Solids Control Technology
Solids Control Technology For personal use only Traditional drilling fluid sumps No sumps – fully enclosed system • Solids removal and fluid property management • Small environmental site footprint • Reduced site set up and remediation costs • Reduced water consumption • Less wear and tear to drilli
Slide 14: DHSO (Lime Rock) Oil & Gas Services J/V
DHSO (Lime Rock) Oil & Gas Services J/V For personal use only • DHSO an existing customer of Imdex • Majority owned by Lime Rock • 50:50 joint venture based in Dubai • Contributions: • DHSO – cash/clients • Imdex – technology • Imdex sells technology to the JV at cost + margin • Initial target marke
Slide 15: Mud-Data Acquisition
Mud-Data Acquisition For personal use only • Drilling fluids and chemicals: • Complementary to the current fluids & chemicals businesses • Good strategic fit – footprint into Europe • Strong markets: • Conventional oil & gas • Geothermal • Shale gas/Tight gas • Gas storage and CO2 storage • Environm
Slide 16: Key business drivers and outlook
Key business drivers and outlook For personal use only Mineral exploration Strong commodity prices. Exploration activity levels spend and estimated spend at record levels Client rig utilisation % Estimated full drill rig utilisation levels around mid C2011 Level of tool rentals New tool records set
Slide 17: Increasing estimated global exploration spend
Increasing estimated global exploration spend (non-ferrous) (US$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 18: Non-ferrous exploration spend by commodity, by stage
Non-ferrous exploration spend (by commodity, by stage) For personal use only Other Worldwide Exploration 16% Budgets (2010) Minesite Grass Source: Metals Economics Group 25% roots 33% Gold 51% Base Metals 33% Late Stage 42% Spend by Target Spend by Stage • Approx. half on gold. Of the base metals, 6
Slide 19: On track with strategy
On track with strategy For personal use only Past 1H11 Medium Term End market 2 15% Oil & Gas 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 Macquarie Conference –
Slide 20: Summary
Summary For personal use only • Strong financial results delivered • 1H11 record revenue and profit levels • 1.75 cents per share fully franked interim dividend • Record mining tool rental numbers at 31 March, 2011 • Strong balance sheet with comfortable gearing • Record revenue in 3Q11 • Growth ini
Slide 21: Appendices
For personal use only Appendices Macquarie Conference – 4 May 2011 20
Slide 22: Strong revenue growth
Strong revenue growth For personal use only Revenue * ($m) 95.9 Minerals 80.3 72.9 75.9 69.1 58.4 57.9 56.7 unaudited 45.9 49.2 29.5 23.3 O&G 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 3Q11 * excludes other income & discontinued operations Macquarie Conference – 4 May 2011 21
Slide 23: Strong EBITA growth
Strong EBITA growth For personal use only EBITA * ($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 Macquarie Conference – 4 May 2011 22
Slide 24: 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 Other assets / Deferred tax 14.2 14.2 • Decrea
Slide 25: Comfortable gearing levels
Comfortable gearing levels For personal use only 50.0 45.0 14.3 (5.0) • Additional debt of $14.3m for 40.0 Fluidstar acquisition (0.7) 35.0 • $5.0m of AUD debt swapped into CAD. Better natural hedge – no net 30.0 impact on debt levels 25.0 • $5.0m of loan repayments as 20.0 41.2 40.6 40.6 scheduled