Imdex Ltd · ASX:IMD
Imdex — Non-Deal Roadshow (September 2011)
29 slides from Imdex's roadshow presentation, Sep 15, 2011
Slide 1: ASX cover letter: September 2011 USA Roadshow
For personal use only 15 September 2011 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam September 2011 USA Roadshow Please find attached the September 2011 USA Roadshow presentation presentation. Yours faithfully Imdex Limited Paul Evans Compa
Slide 2: Imdex Limited USA Roadshow September 2011
For personal use only I d Limited Imdex Li it d USA Roadshow R d h - September S t b 2011 Bernie Ridgeway – Managing Director Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World USA Roadshow ‐ September 2011
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 regions, niche Oil & Gas markets • ~400 people globally (>50% outside Australia) • Markets: • Mining • Oil & G Gas • Products: • Drilling Flu
Slide 5: Imdex's global footprint
Imdex’s global footprint For personal use only East S Sussex, sse UK 2006 Rastede, Germany 2011 Calgary, Canada 2007 Riegel, Germany 2008 Timmins, Canada 2006 Aktau, Kazakhstan 2007 Salt Lake City, USA 2011 New Delhi, India 2010 Torreon, T Mexico M i 2007 Accra, Ghana 2011 Singapore 2001 Jakarta 200
Slide 6: Simple business structure/brands
Simple business structure/brands For personal use only Market Minerals Oil & Gas Product Fluids Instruments Fluids Instruments Brand Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World USA Roadshow ‐ September 2011
Slide 7: 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 a semi-
Slide 8: 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 Reflex Gyro Non magnetic down hole survey instrument ACT II Digitial, electronic core orientation tool Providing Quality Drilling Fluids and
Slide 9: Survey Tools - We straighten things out
Survey Tools ‐ 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 Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World USA Roadshow ‐ Septe
Slide 10: Core Orientation - We straighten things out
Core Orientation ‐ 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 Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World USA Roadshow ‐ September 2011
Slide 11: Sample of minerals customers
Sample of minerals customers For personal use only Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World USA Roadshow ‐ September 2011
Slide 12: 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 • Drilling Fluids and Chemicals differentiators • S
Slide 13: Excellent financial performance
Excellent financial performance For personal use only Key indicator FY10 FY11 Change R Revenue $134 3 $134.3m $205 2 $205.2m 53% EBITA (excl non‐operational items) $20.7m $48.1m 132% NPAT (excl non‐operational items) $9.8m $29.0m 196% Operating cash flow $5.7m $35.9m 530% Gearing (net debt / cap
Slide 14: Record revenue
Record revenue For personal use only Revenue * 205.2 ($m) • 53% on FY10 • 44% on pre GFC record revenue of 142.0 $142m 137.0 134.3 • Minerals 103.8 • 87% of total revenue • Strong performance Minerals • Oil & Gas 52.8 • 13% of total revenue M • Solid performance given floods impact in central and
Slide 15: Record EBITA
Record EBITA For personal use only EBITA * ($m) 48.1 38.8 • 132% on FY10 • Strong minerals performance in all major mining regions drove EBITA growth 24.5 22.3 20.7 • 24% on pre GFC record of $38.8m • EBITA margins continued to improve to 23.5% 7.4 O&G FY06 FY07 FY08 FY09 FY10 FY11 * excludes dis
Slide 16: Minerals Division
Minerals Division • 60% on FY10 For personal use only 177.7 Revenue * ($m) Africa • Record mining Reflex fleet 17% numbers • AMC and Reflex continue to gain 125.0 market share Americas Americas 26% 111.2 26% 108.9 • AMC brand rolled out globally 96.6 Europe 3% • Regional structure delivering cross
Slide 17: Record Reflex rental fleet
Record Reflex rental fleet For personal use only Instrumentss on Hire Dec‐07 Dec‐08 Dec‐09 Dec‐10 Oct‐07 Aug‐08 Oct‐08 Aug‐09 Oct‐09 Aug‐10 Oct‐10 Aug‐11 Apr‐08 Apr‐09 Apr‐10 Apr‐11 Feb‐08 Feb‐09 Feb‐10 Feb‐11 Jun‐08 Jun‐09 Jun‐10 Jun‐11 • 94% above previous peak • Seasonal slowdowns over December/J
Slide 18: Proposed acquisition of System Mud (Brazil)
Proposed acquisition of System Mud (Brazil) For personal use only • Purchase price ~$9.0m • Will be immediatelyy EPS accretive • Effective date 1 August 2011. Completion expected in October, 2011 • Forecast CY11 results • Turnover $7.5m • EBITA $1.4m • Benefits to the Imdex Group • Access to expandi
Slide 19: Solids Control Technology
Solids Control Technology For personal use only Traditional drilling fluid sumps N sumps – fully No f ll enclosed l d system t • Solids removal and fluid property management • Small environmental site footprint • Reduced site set up and remediation costs • Reduced water consumption • Less wear and t
Slide 20: Oil & Gas Division
Oil & Gas Division Revenue * For personal use only ($m) • 19% on FY10 • Fluids & chemicals impacted by floods in 28.0 27.5 Australia • Instrumentation services growth via DHS 23.1 JV (oil & gas globally) • Continued product development on existing/new instrumentation 17.0 • g Integration of Mud-Da
Slide 21: DHS Oil & Gas Services JV
DHS Oil & Gas Services JV For personal use only • DHSO (majority owned by Lime Rock), is a 50:50 joint venture based in Dubai • DHSO has exclusive global licence to Imdex technology • Imdex sells instrumentation to the JV at cost + margin • Initial target market the Middle East then expand globally
Slide 22: AMC Oil & Gas, Europe
AMC Oil & Gas, Europe For personal use only • Based in Rastede, northern Germany (near Bremen) • Drilling fluids and chemicals and equipment • Strong g markets – oil & g gas,, geothermal and civil industries • Solids control and high quality equipment for oil & gas and geothermal Providing Quality D
Slide 23: On track with strategy
On track with strategy For personal use only Past FY11 Medium Term nd market 2 13% Oil & Gas Minerals En 87% Instruments Profit 1 32% Fluids 68% Services Rent / Selll Sales S l 31% mix 2 Rentals 69% ¹ Based on actual or anticipated EBITA Providing Quality Drilling Fluids and Leading Down Hole Instru
Slide 24: Increasing estimated global exploration spend
Increasing estimated global exploration spend ( (non‐ferrous) f ) (US$B (US$Bn)) 22.5 For personal use only 20.8 20.4 19.0 19.3 18.0 17.1 16 0 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: Metals Economics Group (2005-2011); McKinsey an
Slide 25: Key business drivers and outlook
Key business drivers and outlook Mineral exploration Despite recent volatility in global financial markets, For personal use only spend commodity prices remain robust Exploration activity levels and spend currently at record l l levels Client rig utilisation % Current high utilisation levels expecte
Slide 26: Summary
Summary • FY11 – Imdex’s best ever results For personal use only • Record revenue and earnings • Record Reflex rental numbers • Strong balance sheet • Record operating cash flows • Full year dividend of 4.5 cents per share • Attractive growth opportunities to drive further growth • AMC Oil & Gas Eur
Slide 27: Appendix
For personal use only Appendix Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World USA Roadshow ‐ September 2011
Slide 28: Profit & loss
Profit & loss ($millions) FY10 FY11 Var % For personal use only R Revenue ((excll iinterest t t iincome)) 134 3 134.3 205 2 205.2 53% EBITDA 24.9 53.8 116% Depreciation (4.2) (5.7) 37% EBITA 20.7 48.1 132% Amortisation (6.4) (6.8) 7% Net interest expense (0.7) (2.8) 260% Tax expense (3.8) (9.5
Slide 29: Strong balance sheet
Strong balance sheet ($millions) Jun 10 Jun 11 For personal use only Net cash 9.0 18.4 Receivables 41.2 50.2 I Inventory t 28 6 28.6 40 6 40.6 • St Strong cash h position iti Investment in SEH 6.8 16.1 • Invested in working capital to Fixed assets 13.6 17.3 support increased Intangibles 50 0 50.0 55