Slide 1: Imdex Limited 1H10 Financial Results
For personal use only Imdex Limited 1H10 Financial Results 22 February 2010 Bernie Ridgeway – Managing Director Paul Evans – Chief Financial Officer 1H10 Results Presentation – 22 Feb 10 1
Slide 2: Presentation Overview
Presentation Overview For personal use only Overview 1H10 financials Operational review Drilling Fluids & Chemicals Division Down Hole Instrumentation Division Market outlook Strategy and growth opportunities 1H10 Results Presentation – 22 Feb 10 2
Slide 3: Overview
For personal use only Overview Bernie Ridgeway – Managing Director 1H10 Results Presentation – 22 Feb 10 3
Slide 4: Improved performance on 2H09
Improved performance on 2H09 Improved operating performance on 2H09 – low point in For personal use only current cycle (1H09 was high point) Revenue* of $58.4m (2H09: $56.7m; 1H09: $80.3m) Financial Operating EBITA of $7.5m (2H09: $4.5m; 1H09: $20.0m) Cash from operations of $4.6m (2H09: $9.
Slide 5: Half year revenues from FY06 to current
Half year revenues from FY06 to current For personal use only Revenue * 90 ($m) 80.3 80 72.9 69.1 70 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 Fluids and Chemicals Instrumentation * excludes other income & discontinued operations 1H10 Results Pres
Slide 6: Half year EBITA from FY06 to current
Half year EBITA from FY06 to current For personal use only EBITA * 25 ($m) 19.8 20.0 20.0 20 15 12.2 10.1 10 7.5 5.4 5 4.5 2.0 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 * excludes discontinued operations and non-operational items 1H10 Results Presentation – 22 Feb 10 6
Slide 7: 1H10 financials
For personal use only 1H10 financials Paul Evans – Chief Financial Officer 1H10 Results Presentation – 22 Feb 10 7
Slide 8: Profit & loss
Profit & loss For personal use only ($m) 1H09 2H09 1H10 Revenue (excl interest income) 80.3 56.7 58.4 EBITDA 21.8 6.0 9.4 Depreciation (1.8) (1.5) (1.9) EBITA 20.0 4.5 7.5 Amortisation (3.6) (3.0) (3.1) Net interest expense (0.7) (0.2) (0.8) Tax expense (5.6) (0.1) (0.7) NPAT before non recurring it
Slide 9: Non-cash impairment write downs
Non-cash impairment write downs Area $m Comment For personal use only 22,260,000 shares Sino Gas and Energy Mark-to-market valuation 4.9 Holdings Original cash cost $0.3m Non core investment AMC performed well. Asia Pacific strong. Other regions slow to recover. Fluids Businesses 11.0 Re
Slide 10: Conservative balance sheet
Conservative balance sheet ($ millions) Dec 09 Jun 09 Solid working capital ratios For personal use only Net cash 9.7 12.0 Receivables 26.4 23.4 Low gearing Inventory 26.4 26.4 Remain within banking Investment in SGE 15.1 20.5 covenants Fixed assets 11.9 10.8 Intangibles 53.2 79.2 $9.7m cash
Slide 11: Decreasing debt levels
Decreasing debt levels For personal use only 45 40 38.9 Vendor payment - $2.1m 31 July 09 35 34.0 33.0 30 No outstanding vendor liabilities 25 AUD and SEK loans paid down as 20 scheduled 15 10 $6.8m raised in CAD to provide a natural hedge 5 - Gearing 20.5% (June 09 – 16.0%) Dec 08 Jun 09
Slide 12: Operational review
For personal use only Operational review Bernie Ridgeway – Managing Director 1H10 Results Presentation – 22 Feb 10 12
Slide 13: Drilling Fluids and Chemicals Division
Drilling Fluids and Chemicals Division For personal use only Revenue Performance in line with 2H09 ($m) 60 19% below 1H09 peak 50 50.5 Recovery in 4Q09 followed into 1H10 42.3 41.2 41.0 Africa, Canada and Latin America slower 40 25% of revenue from oil & gas market 30 29.1 New generation
Slide 14: Down Hole Instrumentation Division
Down Hole Instrumentation Division For personal use only Continuing Revenue 12% improvement on 2H09 ($m) 35 DHI – Oil & Gas 30 29.8 Target tool commercial – ongoing 26.8 development to ensure “best in 25 class” 20 17.4 High temperature tools - commercial 16.9 15.5 15 Drop tool - near comme
Slide 15: Market outlook
For personal use only Market outlook Bernie Ridgeway – Managing Director 1H10 Results Presentation – 22 Feb 10 15
Slide 16: Market recovery FY10/FY11
Market recovery FY10/FY11 For personal use only Drillers reporting Long term increased USA land supply/ Greater quality and Increased based oil & demand drilling activity number of commodity gas industry imbalances globally tenders prices more active remain Early stages of recovery are present 1H10
Slide 17: Global exploration spend (non ferrous)
Global exploration spend (non ferrous) For personal use only Exploration by commodity: Estimated Exploration Spend Worldwide US$ Billions Gold 44% 14.0 Base Metals 33% 12.0 Diamonds 5% 10.0 Uranium 8% 8.0 Exploration by stage: Imdex estimate 6.0 Greenfields 33% 4.0 Minesite/late stag
Slide 18: Oil & gas – worldwide upstream capex
Oil & gas – worldwide upstream capex For personal use only US$Bn 500 Global spend estimated to È21% have dropped 21% in 2009 400 Still high in historical terms 300 Medium/long term supply/demand imbalances 200 remain Exploration - increasingly 100 complex 0 Good opportunities for 2000 2001
Slide 19: Strategy & growth opportunities
For personal use only Strategy & growth opportunities Bernie Ridgeway – Managing Director 1H10 Results Presentation – 22 Feb 10 19
Slide 20: Platform for growth
Platform for growth For personal use only Improved customer intimacy Goal Geographic organisation – better structure People strategy – added key executives Increased share Achieving operational efficiencies and long term profitable growth Ongoing consolidation of R&D and manufacturing Ente
Slide 21: 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 22: Outlook for 2H10
Outlook for 2H10 For personal use only Key initiatives Continued R&D investment to maintain technology leadership Expansion of solids control fleet in Australia Global roll out of next generation core tool Further expansion into the oil & gas market (DFC and DHI) Global rebranding of fluid
Slide 23: In summary
In summary For personal use only Whilst market conditions in 1H10 were tough, they were an improvement on 2H09 (cyclical low) Imdex’s strategy is sound two divisions – DFC & DHI supplying two main end markets – mining and oil & gas Market fundamentals are improving buoyant commodity pric
Slide 24: Appendices
For personal use only Appendices 1H10 Results Presentation – 22 Feb 10 24
Slide 25: A snapshot of Imdex's business
A snapshot of Imdex’s business For personal use only Drilling Fluids & Chemicals (DFC) Key markets • Consumable item Mining & Mineral • Keep drill holes open and lubricate Exploration moving parts while removing cuttings to the surface • Environmental focus • Manufacture & supply Oil & Gas Down Hole
Slide 26: 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