Imdex Ltd · ASX:IMD
Imdex — Shareholder Meeting (October 2006)
23 slides from Imdex's shareholder meeting presentation, Oct 19, 2006
Slide 1: Cover letter to ASX: 2006 AGM Presentation
19 October 2006 The Manager Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sirs 2006 ANNUALGENERAL MEETING PRESENTATION The Company will hold An Annual General Meeting at 11am in Perth, today, Thursday 19 October 2006. The Meeting
Slide 2: Imdex Limited 2006 Annual General Meeting
2006 AGM Presentation IMDEX LIMITED 2006 ANNUAL GENERAL MEETING “Australia's Global Drilling Products & Services Company” imdex< 19 October 2006 Meeting Agenda = Welcome = Chairman’s Address 2006 Accounts: Managing Director’s Presentation Continuation of the formai business of the Meeting Meeting cl
Slide 3: Chairman's Address
2006 AGM Presentation Chairman’s Address It gives me great pleasure to report to you that the year ended 30 June 2006 has been another very positive one for the Imdex Group. The Imdex Group has delivered on the strategy outlined at the 2005 Annual General Meeting and has taken valuable steps to posi
Slide 4: Chairman's Address: revenue and profit growth
2006 AGM Presentation Continuing strong conditions in the global resources and energy markets helped Imdex achieve a 43% increase in revenue on last year. A 91% increase in net profit for the year took it to $8.0 million in FYO6. The aim of focussing on our core businesses while establishing a globa
Slide 5: Dividend and Managing Director's Presentation
2006 AGM Presentation We are pleased to have been able to pay a further 1 cent per share final dividend in October 2006. The Board's goal of delivering a sustainable and increasing dividend stream, consistent with the capital needs of the Company, remains a high priority. I would like to thank all o
Slide 6: Our Achievements
2006 AGM Presentation Our Achievements « International expansion » Building technology leadership » Higher financial returns " Setting up future growth e« We expanded our international market coverage. e We built on our technology leadership. e We drove our financial returns higher. « We set the sta
Slide 7: A Continuing Commitment
2006 AGM Presentation A Continuing Commitment = Customer service =» Continuous innovation = Focus on shareholder returns Our results and our prospects hinge very much on their continuing commitment to: e a high standard of customer service; « continuous innovation; and, e a focus on shareholder retu
Slide 8: Building Value
2006 AGM Presentation Building Value Return on Funds Employed 25 @ imdex 20 & Benchmark 2002 2003 2004 2005 2006 I referred to this measure of performance at our 2005 annual general meeting. This slide shows the return on funds employed of Imdex compared to a range of 40 small cap ASX listed compani
Slide 9: Adding value for shareholders
2006 AGM Presentation With a cost of capital during FY06 of around 10%, we can say quite emphatically that we have been adding value for our shareholders. Our 2006 result has helped consolidate a position among Australia’s investors. Central to our improved results has been a determination to get mo
Slide 10: International expansion
2006 AGM Presentation |. Fi New Caledonia Flew Zealant Today, Imdex is trading actively in approximately 30 countries around the world. Strategically, the international expansion is very important for us. Imdex already had substantial market positions in its areas of greatest expertise within Austra
Slide 11: Managing international expansion
2006 AGM Presentation Without downplaying the importance of those challenges, there are reasons why they are more manageable for us. Many of our Australian customers are also our customers overseas. Companies like Boart Longyear and BHP Billiton come to mind immediately. The culture of the mining an
Slide 12: Group structure and divisions
2006 AGM Presentation ds & Chemicals Products & #5 Division | | | Austratian Mud Samchem Surtron ‘Ace Drilling Chardec Reflex Company Technologies Supplies Consuttants instruments Today, we talk of the company as being made up of two broad parts: e the drilling fluids and chemicals division; and, e
Slide 13: Results Summary
2006 AGM Presentation e active down hole surveying programmes in the precious metals and base metals sectors; e growth in the coal bed methane industry; and, e successful introduction of our new electronic core orientation tool into the diamond drilling market in Australia and internationally. RESUL
Slide 14: One-off items and investments
2006 AGM Presentation ¢ awrite down of $2.275 million in the value of the RTE/Imdex joint venture in Saudi Arabia. Sino Gas and Energy is an investment in a company seeking to develop oil and gas targets in China. The investment provides Imdex with a window on this highly prospective part of the wor
Slide 15: Balance Sheet
2006 AGM Presentation While the financial performance of the group has been generally very strong, the result for Samchem in South Africa was not as strong as we had anticipated at the time of the acquisition last year. Its result was affected adversely by higher integration and operating costs. Whi
Slide 16: Balance Sheet: pro forma acquisition
2006 AGM Presentation BALANCE SHEET Proforma Acquisition 30-Jun-06 | 30-Jun-05 30-Jun-06 | Reflex/Chardec $ 0900's $ 0080's $ 000's $ 000's Cash 6,621 200 6,421 103 Receivables 24,798 §,000 18,798 13,918 inventory 14,507 1,800 9,707 7,030 Financial assets 124 - 124 1,475 Property, plant & equipment
Slide 17: Reflex and Chardec acquisition
2006 AGM Presentation Located in Sweden _ Sellsirents downhole camorasinthe miningiexploration and construction industries Operating companies in Canada, South America _ and South Attica : Vendor has experience In imdex exclusive : Oil & gas industry : distributor in Australia : since 2000 Both Char
Slide 18: Global Exploration Spend
2006 AGM Presentation « economies of scale; and, e enhanced research, product development and manufacturing capacity. Global Exploration Spend Estimated Exploration Spend Worldwide e & oe Forecast Sep 06 DM, « Ba o a g 6 e4 « & ° Worldwide Spend ($US billions) e € 3 1983 1994 1995 1996 19987 1998 19
Slide 19: Exploration expenditure and demand outlook
2006 AGM Presentation A disproportionate amount of the increased expenditure has been around existing sites. Greenfields exploration is much lower as a proportion of the total than has been the case in the past. It is not surprising for greenfields spending to lag in this way, indicating that the ex
Slide 20: Business Initiatives
2006 AGM Presentation Business Initiatives AMC global expansion Samchem to expand in Africa Continued roll-out of Ace core orientation tool Extend geographic reach of Surtron Improve Reflex market penetration The key business initiatives we are undertaking in the coming year include: expansion of th
Slide 21: Sources of Revenue Growth
2006 AGM Presentation e working with Reflex to maximise the opportunities under the new ownership arrangements. Sources of Revenue Growth » Organic growth = Contributions from Reflex and Chardec " Business synergies Directors believe that a 45% revenue increase is achievable in the current financial
Slide 22: Margin improvements and commitments
2006 AGM Presentation Importantly, in the September quarter, we have also managed to post further margin improvements over what we achieved in FY06. These improvements should be sustained for the remainder of the financial year. Once again, it is important to bear in mind that none of these outcomes
Slide 23: Closing and Imdex summary
2006 AGM Presentation e translating the improved performance into a rising stream of dividend income for shareholders. In renewing this commitment to creating value in this way, I would like to take this opportunity, on behalf of the Board and management team, to especially thank you, our shareholde