Imdex Ltd · ASX:IMD
Imdex — Investor Presentation (August 2003)
26 slides from Imdex's investor presentation, Aug 20, 2003
Slide 1: Broker and Shareholder Presentation
20 August 2003 Australian Stock Exchange Limited Company Announcements Office Exchange Centre 20 Bridge Street SYDNEY NSW 2001 BY ELECTRONIC LODGEMENT Dear Sirs BROKER AND SHAREHOLDER PRESENTATION | attach a copy of the presentation, and accompanying handout, to be made to brokers and shareholders t
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Slide 3: Imdex Limited operations
Imdex L “ Australian Operation: »” AMC (drilling products & services) * Surtron (logging, surveying & steering) » Imdex Minerals (minerals processing) “ Middle Eastern Operations: » Imdex Arabia (49%) » JV with established local partner and large IMD shareholder
Slide 4: Capital & Market Snapshot
- Capital & Market Snapshot “) SHARES ON ISSUE: “ OPTIONS ON ISSUE: © 12 MONTH TRADING RANGE: “) SHARE PRICE (18 AUGUST 03) “ MARKET CAPITALISATION: *” As at 18 August 03
Slide 5: Result: Domestic EBIT approx. $2.7M
“ Result: Domestic EBIT approx. $2.7M (unaudited) “ Australia: » Strong contributions from AMC, Imdex Minerals » AMC continued to be dominant in its market »” New ceramic-lined mill at Imdex Minerals » New steering technology at Surtron “ Middle East: » Contribution below expectations » Impacted by
Slide 6: Outlook: Australia and Middle East
“) Australia: »” Forecasting significant increase in EBIT » Identified earnings growth within businesses “ Middle East: » Internal issues resolved, both JV partners committed » Increasing revenue and margins » Should be a profit contributor in FY 2004 » Medium to long term growth driver for Imdex
Slide 7: Milestones: Improved EBIT over H1
© Australia: » Improved EBIT over H1 03 » New business for Surtron and AMC » Increased volumes at Imdex Minerals “ Middle East: » Increased sales each month in Q1 03/04 » Profitable trading in Q1 03/04 » Further improvement in Q2 03/04
Slide 8: Conclusion
- Conclusion ' Significant improvement in FY2004 EBIT “ Australian business strong and growing ’ Middle East building revenue and margins “) Long term growth in Middle East » Focus on converting improved earnings into increased shareholder value
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Slide 10: Imdex Limited
Imdex Limited Australian Operations: AMC (drilling products & services) Surtron (logging, surveying & steering) Imdex Minerals (minerals processing) Middle Eastern Operations: Imdex Arabia (49%) JV with established local partner and large IMD shareholder
Slide 11: Board & Management
Board & Management Ian Burston Non-Executive Chairman Bernie Ridgeway Managing Director H H Al-Merry Non-Executive Director President, RTE Mike Gasson Non-Executive Director Gary Cobbledick Non-Executive Director Stephen Lyons Company Secretary Gary Weston General Manager, AMC & Surtron Ron Hancock
Slide 12: Capital & Market Snapshot
Capital & Market Snapshot Shares on issue 120.1M Options on issue 5.9M 12 month trading range 8-20c Share Price (18 Aug 03) 16.0c Market Capitalisation: As at 18 August 03 $19M
Slide 13: Key Financial Data
Key Financial Data VEAR ENDED Group Turnover Operating Profit before interest and tax Operating Profit before tax Net Profit after tax Net Assets Net tangible asset backing per share Earnings per share Shares on issue 6 Months 31 Dec 02 $’000 14,678 1,230 958 720 21,612 17.5¢ 0.614 120,055,368 i2Mon
Slide 14: About Saudi Arabia
About Saudi Arabia Largest economy in the Middle East Stable Government 25% of the world’s proven oil reserves Australia’s 13‘ largest export partner $2.4BN in 2002 No restrictions on Repatriation of Profits, Dividends or Capital Competitive Tax Rates — Corporate rate 30%
Slide 15: About Aramco
About Aramco Saudi i Aramco World’s largest oil producer (2002 av. 6.8M BPD) World’s 4* largest gas producer (4.5B cubic feet per day) Operates over 80 oil and gas fields Has over 20,000 kms of oil & gas pipelines Exploration area is 1.5m sq km
Slide 16: About Aramco
aognuull gSolj! About Aramco Saudi Aramco Active exploration — more drilling fluids & chemicals Procured approx. US$5.6 BN in goods & services in 2002 Has approximately 12,000 local vendors — promoting Saudi suppliers Aramco placed 90% of its purchases with Saudi importers /manufacturers in 2002 App
Slide 17: Middle East Operations
Middle East Operations Joint Venture with the Rashid Trading Establishment (RTE) in Saudi Arabia (51% RTE/49% Imdex) te. Imdex Arabia Drilling Fluids, Chemicals & Services Saudi Arabia |
Slide 18: Growth Strategy
Growth Strategy Sustainable/expanding business, supplying the oil & gas industry in KSA & the Middle East Current Saudi ]/V Monthly Sales >US$1.0M approx. Projected Monthly Sales (Aug-Dec 03) US$1.5M+ Current Agreements US$30M p.a. Ramp up 03/04 - Full benefit 04/05 Joint Venture partner controls ma
Slide 19: Australian Operations: AMC
Australian Operations Australian Mud Company (AMC) Drilling products & services Dominant in Australia, exporting to over 20 countries Sustainable, competitive advantage based on product, service and price
Slide 20: Australian Operations: Surtron
Australian Operations Surtron Technologies (Surtron) Australia’s market leader in: Geophysical Logging Down hole Surveying Directional Drilling (steering) division — new technology Sustainable, competitive advantage is technology, technical expertise & service
Slide 21: Australian Operations: Imdex Minerals
Australian Operations Imdex Minerals Multi purpose Industrial Minerals processing facility Toll Milling, Custom Packaging, Agricultural Products, Sand/Gravel Packs & Micaceous Iron Oxide Sustainable, competitive advantage: Largest ceramic lined ball mills in Australia
Slide 22: Growth Strategy
Growth Strategy ALC Increased Mergers & New SURTRON East Coast Increased Expertise in Directional Drilling Logging/ Survey Work Outsourcing by Larger Additional as Expansion of Majors / Facilities Milling ssa ee Capacity Client Base
Slide 23: Business Case for Imdex
Business Case for Imdex Profitable operations with distinct growth paths FY04 Australian operations forecast: Revenue $36M (up by 20% on FY03) EBIT Margin 11% - 12% - STRONG BASE FY04 Middle East operations forecast: JV revenue US$14M (FYO3), increasing substantially in FY04 Gross margin around 10%
Slide 24: Milestones to Monitor
Milestones to Monitor Australia: Improved EBIT over H1 03 New business for Surtron and AMC Increased volumes at Imdex Minerals Middle East: Increased sales each month in Q1 03/04 Profitable trading in Q1 03/04 Further improvement in Q2 03/04
Slide 25: Strategic Plan
Strategic Plan IMD’s short-to-medium-term strategic plan has 4 main elements: Continue operational and earnings improvement within Australia Consolidate business in KSA Continue to improve group financial performance Translate sustainable earnings into a steady dividend stream for investors
Slide 26: Conclusion
Conclusion Significant improvement in FY2004 EBIT Australian business strong and growing Middle East building revenue and margins Long term growth in Middle East Focus on converting improved earnings into increased shareholder value