Imdex Ltd · ASX:IMD
Imdex — Wilson HTM – Focus on Mining Services Conference 2010
22 slides from Imdex's conference presentation, Nov 10, 2010
Slide 1: Wilson HTM – Focus on Mining Services Conference Presentation (ASX cover letter)
10 November 2010 For personal use only Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Wilson HTM – Focus on Mining Services Conference Presentation Please find attached a copy of the presentation being made today at the Wilson HTM – Mining Se
Slide 2: Imdex Limited – Wilson HTM Focus on Mining Services Conference
For personal use only Imdex Limited Wilson HTM – Focus on Mining Services Conference Sydney 10 November 2010 AGM 2010 Presentation 1
Slide 3: Discussion Topics
Discussion Topics For personal use only Company Overview Earnings Outlook / Trading Conditions Value Proposition Product / Service Differentiators Key Opportunities Key Challenges / Risks Potential Changes to the Business AGM 2010 Presentation 2
Slide 4: Company Overview
Company Overview Perth based ASX listed industrial company (IMD) For personal use only Two Divisions Drilling Fluids & Chemicals : Down Hole Instrumentation : Two Main end markets: Mining (AMC & Reflex) Oil & Gas (AMC & Flexit) Global operations with significant presence in all major mining regions
Slide 5: Discussion Topics
Discussion Topics For personal use only Company Overview Earnings Outlook / Trading Conditions Value Proposition Product / Service Differentiators Key Opportunities Key Challenges / Risks Potential Changes to the Business AGM 2010 Presentation 4
Slide 6: Key Business Drivers
Key Business Drivers For personal use only Mineral exploration Commodity prices continue to be robust spend Exploration activity levels and spend increasing Client rig utilisation % Client utilisation levels ~ mid 70%s by 31/12/10 Level of tool rentals Oct 10 new high Currently manufacturing to dema
Slide 7: Revenue – Returning to Growth
Revenue – Returning to Growth 90 For personal use only Revenue * 80.3 80 75.9 ($m) 72.9 70 69.1 DHI 60 57.9 56.7 58.4 unaudited 50 45.9 46.9 DFC 40 29.8 30 23.1 20 10 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1Q11 * excludes other income & discontinued operations Improved trading condition
Slide 8: EBITA – Returning to Growth
EBITA – Returning to Growth * excludes discontinued For personal use only 25 EBITA * operations and non- ($m) operational items 19.8 20.0 20.0 20 15 13.2 unaudited 12.2 11.3 10.1 10 7.5 5.4 5 4.5 2.0 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1Q11 EBITA trend similar to revenue Momentum has
Slide 9: 1Q11 Continues 2H10 Recovery (Revenue)
1Q11 Continues 2H10 Recovery For personal use only Revenue * unaudited ($m) 46.9 43.2 42.9 39.0 37.1 32.8 33.0 30.5 29.5 28.9 26.2 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 * excludes other income & discontinued operations 1Q11 revenue highest ever for a quarter Robust trading has conti
Slide 10: 1Q11 Continues 2H10 Recovery (EBITA)
1Q11 Continues 2H10 Recovery For personal use only EBITA * 12.5 ($m) unaudited 11.3 9.9 9.1 8.0 7.5 5.2 4.2 3.3 2.6 1.9 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 * Excludes discontinued operations 1Q11 EBITA second highest ever Robust trading has continued into 2Q11 AGM 2010 Presentatio
Slide 11: Discussion Topics
Discussion Topics For personal use only Company Overview Earnings Outlook / Trading Conditions Value Proposition Product / Service Differentiators Key Opportunities Key Challenges / Risks Potential Changes to the Business AGM 2010 Presentation 10
Slide 12: Drilling Fluids and Chemicals
Drilling Fluids and Chemicals FY09 FY10 60.0 Revenue 91.7 89.6 For personal use only ($m) 50.5 50.0 48.6 42.3 43.4 41.2 41.0 40.0 33.3 29.1 30.0 23.3 20.0 18.4 10.0 - 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 Competitors: Schlumberger (M-I), Halliburton (Baroid), Baker Hughes Differentiator
Slide 13: Down Hole Instrumentation
Down Hole Instrumentation Continuing Revenue For personal use only FY09 FY10 ($m) 35.0 45.3 44.7 29.5 29.8 30.0 26.8 27.3 24.6 25.0 20.0 16.9 17.4 15.5 15.0 10.0 6.4 4.8 5.0 - 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 Competitors: Mining – fragmented; Oil & Gas – SDI & Gyrodata Differentiato
Slide 14: Mining Tool Rental Fleet
Mining Tool Rental Fleet For personal use only >25% above previous peak >200% growth Tools on Hire Jun 08 from trough Jun 09 Jun 10 Dec 07 Aug 08 Dec 08 Aug 09 Dec 09 Aug 10 Apr 08 Oct 08 Apr 09 Oct 09 Apr 10 Oct 10 Feb 08 Feb 09 Feb 10 >200% growth from April 09 low to October 10 high Growth expect
Slide 15: Discussion Topics
Discussion Topics For personal use only Company Overview Earnings Outlook / Trading Conditions Value Proposition Product / Service Differentiators Key Opportunities Key Challenges / Risks Potential Changes to the Business AGM 2010 Presentation 14
Slide 16: Conservative balance sheet
Conservative balance sheet ($ millions) Jun 10 Jun 09 For personal use only Low gearing Net cash 9.0 12.0 Receivables 41.2 23.4 June 2010 - 19.6% Inventory 28.6 26.4 Investment in SGE 6.8 20.5 September 2010 – 26.5% Fixed assets 13.6 10.8 (post Fluidstar) Intangibles 50.0 79.2 Net debt at June 2010
Slide 17: 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% Diamonds 5% 10.0 Uranium 8% 8.0 Exploration by stage: 6.0 Greenfields 33% 4.0 Minesite/late stage 67% 2010 activity levels up 4
Slide 18: Oil and Gas E & P Expenditure
Oil and Gas 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 More drilling needed to sustain and increase worl
Slide 19: Discussion Topics
Discussion Topics For personal use only Company Overview Earnings Outlook / Trading Conditions Value Proposition Product / Service Differentiators Key Opportunities Key Challenges / Risks Potential Changes to the Business AGM 2010 Presentation 18
Slide 20: Strategy
Strategy Medium Term For personal use only Past FY10 (2-4 years) End market 2 1% 17% Oil & Gas Minerals 99% 83% Management’s best estimate Management’s best estimate Instruments 19% Profit 1 38% Fluids 50% 62% 31% Services 25% Rent / Sell Sales mix 2 Rentals 75% 100% ¹ Based on actual or anticipated
Slide 21: Summary
Summary For personal use only Focused strategy has delivered results 2H10 revenue and EBITA returned to growth, continued into FY11 New peak in mining tool rental numbers into 2Q11 Healthy balance sheet with comfortable gearing Demonstrated track record of successful bolt on acquisitions Strongly po
Slide 22: 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
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