Imdex Ltd · ASX:IMD
Imdex — Morgan Stanley Emerging Companies Conference 2010
18 slides from Imdex's conference presentation, Jun 9, 2010
Slide 1: ASX cover letter for conference presentation
For personal use only 9 June 2010 Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Morgan Stanley Emerging Companies Conference Presentation Please find attached a copy of the presentation being made today at the Morgan St
Slide 2: Imdex Limited – Morgan Stanley Emerging Companies Conference
For personal use only Imdex Limited Morgan Stanley Emerging Companies Conference 9 June 2010 Bernie Ridgeway – Managing Director Morgan Stanley Emerging Companies Conference – 9 Jun 10 1
Slide 3: Business Overview
Business Overview 2 Divisions: Drilling fluids & chemicals (DFC) ; Down hole instrumentation (DHI) For personal use only 2 main end markets: mining/mineral exploration ; oil & gas Both end markets in growth phase post GFC Own IP, manufacture products which we sell/rent to 3rd parties Strong investme
Slide 4: Corporate Snapshot
Corporate Snapshot For personal use only Board of Directors Ross Kelly Non-Exec Chairman Bernie Ridgeway Managing Director Kevin Dundo Non-Exec Director Magnus Lemmel Non-Exec Director Betsy Donaghey Non-Exec Director Paul Evans Company Sec/CFO Major Shareholders (27 May 2010) 1. Fiberform Vindic 12
Slide 5: FY10 – a year of halves
FY10 – a year of 2 halves For personal use only First half Trading activity robust in Asia/Pacific Canada, Africa and Latin America slower to recover Margins due to slower recovery in other major mining regions Operating cash flows But … clear signs of recovery emerging towards the end of 1H10 Secon
Slide 6: Revenue recovery post GFC
Revenue recovery post GFC Revenue * For personal use only 90 ($m) 80.3 Consensus 80 72.9 71.6 70 69.1 60 57.9 56.7 58.4 50 45.9 40 29.8 30 23.1 20 10 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 Fluids and Chemicals Instrumentation * excludes other income & discontinued operations Revenue dro
Slide 7: EBITA recovery post GFC
EBITA recovery post GFC EBITA * For personal use only 25 ($m) 19.8 20.0 20.0 20 15 Consensus 12.2 12.5 10.1 10 7.5 5.4 5 4.5 2.0 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 * excludes discontinued operations and non-operational items EBITA trend similar to revenue Continued to spend on R&D t
Slide 8: Drilling Fluids and Chemicals Division
Drilling Fluids and Chemicals Division For personal use only Revenue ($m) Performance in line with 2H09 60 50.5 19% below 1H09 peak 50 42.3 41.2 41.0 Recovery into 2H10 40 25% of revenue from oil & gas market 30 29.1 New generation solids control unit 20 18.4 commercial – early stages of roll out St
Slide 9: Down Hole Instrumentation Division
Down Hole Instrumentation Division For personal use only Continuing Revenue ($m) 35 12% improvement on 2H09 30 29.8 Further significant improvement in 2H10 26.8 25 DHI – Oil & Gas Target INS tool - commercial 20 16.9 17.4 High Temperature MEMS tools - 15.5 15 commercial 10 Drop tools - near commerci
Slide 10: Mining Rental Tool Fleet Performance
Mining Rental Tool Fleet Performance 120% For personal use only Tools on hire Up 134% since Peak April 09 low 100% 80% Percentage of Peak 60% Low 40% 20% 0% Nov-07 Nov-08 Nov-09 Mar-08 May-08 Jul-08 Mar-09 May-09 Jul-09 Mar-10 May-10 Sep-07 Jan-08 Sep-08 Jan-09 Sep-09 Jan-10 Steady build up to peak
Slide 11: Conservative balance sheet
Conservative balance sheet ($ millions) Dec 09 Jun 09 For personal use only Net cash 9.7 12.0 Receivables 26.4 23.4 Solid working capital ratios Inventory 26.4 26.4 Investment in SGE 15.1 20.5 Low gearing Fixed assets 11.9 10.8 Low capital intensity Intangibles 53.2 79.2 Other assets 2.3 1.5 SGE Tot
Slide 12: Key Business Drivers and Outlook
Key Business Drivers and Outlook Mineral exploration Robust commodity prices and funding For personal use only spend Major/intermediate companies exploring Well funded juniors commencing Client rig utilisation % Major clients flagging higher utilisation levels - high 70%s by end 2010 Level of tool r
Slide 13: Global exploration spend (non ferrous)
Global exploration spend (non ferrous) For personal use only Exploration by commodity: Estimated Exploration Spend Worldwide 14.0 US$ Billions Gold 44% 12.0 Base Metals 33% 10.0 Diamonds 5% 8.0 Uranium 8% 6.0 Exploration by stage: 4.0 Greenfields 33% Minesite/late stage 67% 2.0 2010 activity levels
Slide 14: E & P Expenditure
E & P Expenditure For personal use only Source: BP Statistical Review, IEA World Energy Outlook, Monthly Oil Market Report, Medium- Term Oil Market Report, Barclays. Revised 0310 E&P spending up in 2010 after decreasing in 2009 due to GFC Higher drilling levels needed to sustain and increase world o
Slide 15: On track with strategy
On track with strategy For personal use only Medium Term Past 1H10 (2- 4 years) Early Stage End-market exposure2 1% 20% Minerals 20% Late Stage 49% 50% Minerals 60% Oil & Gas Management’s best estimate Management’s best estimate Fluids Divisional 19% Profit1 Downhole 43% Instrumentation 50% 57% 31%
Slide 16: Summary – FY10 Successes
Summary For personal use only FY10 Successes Imdex emerging a stronger company in every way compared to pre GFC Healthy balance sheet Increased technology offering - both mining and oil & gas Better structure globally Maintained/increased specialist skill sets Rapid bounce back of mining tool fleet
Slide 17: Summary – FY11 Key Initiatives
Summary For personal use only FY11 Key Initiatives Continued product development to maintain technology leadership Global marketing of solids control technology Continued global growth in mining tool fleet Further development and market penetration of oil & gas down hole instrumentation Drilling flu
Slide 18: 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
Imdex — Morgan Stanley Emerging Companies Conference 2010 on 6ix