Slide 1: ASX cover letter: 1H13 Roadshow Presentation
8 Pitino Court, Osborne Park Western Australia 6017 PO Box 1262, Osborne Park Western Australia 6916 Tel: +61 (0) 8 9445 4020 Fax: +61 (0) 8 9445 4042 imdex@imdexlimited.com www.imdexlimited.com ABN 78 008 947 813 For personal use only 18 March 2013 Company Announcements Office ASX Limited Exchange
Slide 2: Imdex Limited 1H13 Roadshow, March 2013
For personal use only Imdex Limited 1H13 Roadshow, March 2013 Bernie Ridgeway - Managing Director Paul Evans – Chief Financial Officer Derek Loughlin - Divisional General Manager - Minerals Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 1
Slide 3: Overview
Overview For personal use only ASX listed industrial company (ASX: IMD), head office in Osborne Park, Western Australia Global operations – presence in all major mining regions, niche Oil & Gas markets ~600 people globally (>60% outside Australia) Markets: Mining Oil & Gas Products:
Slide 4: Mission
Mission For personal use only Provide technologies, information and services that improve the effectiveness, efficiency and safety of field operations within the global minerals industry and niche oil & gas markets. We do this by: Deploying innovative, simple-to-use and fit for purpose technologie
Slide 5: What we do - our products
What we do - our products For personal use only Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 4
Slide 6: 1H13 Summary
1H13 Summary For personal use only Combined revenue 3% O&G revenue 111% to new record high Minerals revenue 18% EBITA 32% Cyclical Minerals slowdown reduced Reflex fleet utilisation and drilling fluids revenue 2.50 cps fully franked interim dividend Strong balance sheet Acquisiti
Slide 7: Key metrics
Key metrics For personal use only ($m) 1H13 1H12 Var. Statutory revenue 127.6 138.5 8% Combined revenue* 135.6 139.9 3% EBITA 26.2 38.3 32% NPAT 16.6 22.7 27% Pre-tax operating cash flow 35.9 33.2 8% Gearing (ND / (ND + E)) 23% 12% 101% Interest cover 14 times 54 times Interim DPS (fully fra
Slide 8: Revenue
Revenue 3% on 1H12 (record level) For personal use only Combined revenue* ($m) 1H13 is 3rd highest half year revenue Minerals 139.8 139.1 135.6 75% of combined revenue 109.2 Indications that cyclical slowdown 96.0 may have bottomed, however, 80.3 short term outlook subdued 75.9 69.1 72.9
Slide 9: EBITA
EBITA For personal use only EBITA ($m)* EBITA 32% on 1H12 (record level) 1H13 is 4th highest half year EBITA 38.3 36.9 Continued investment in: O&G strategy 26.9 Minerals market share growth 26.2 ioGlobal 21.2 19.8 19.0 20.0 Skilled staff Product development and R&D 13.2 12.2 10.1
Slide 10: Profit & loss
Profit & loss For personal use only ($m) 1H13 1H12 Var. % Revenue 127.6 138.5 8% EBITDA 29.6 41.6 29% Depreciation (3.4) (3.3) 3% EBITA 26.2 38.3 32% Amortisation (1.5) (2.9) 48% Net interest expense (1.8) (0.7) 157% Tax expense (6.3) (12.0) 48% Statutory NPAT 16.6 22.7 27% EPS (cents) 7.9 1
Slide 11: Solid working capital management
Solid working capital management For personal use only $21.7m of cash generated from $26.2m of EBITA Working capital release due to improved stock and debtor management Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 10
Slide 12: Balance sheet
Balance sheet For personal use only ($m) Dec 12 Jun 12 Net cash 10.0 11.2 Receivables 51.8 59.7 Strong working capital Inventory 49.6 52.1 management Investment in SEH 32.7 21.4 Net debt at 31 Dec 12 of $56.3m VES International JV 25.6 24.3 Gearing comfortable at 23% Fixed assets 34.1 19.7 F
Slide 13: Minerals division
Minerals division For personal use only Europe 4% Revenue 18% on 1H12 (record level) ($m) 124.0 Africa 20% 1H13 is 3rd highest half year 117.7 Americas 31% 102.1 Integration of ioGlobal Asia Pac 45% 96.2 Global introduction of SRUs – early stages 81.5 Product development 68.4 64.8 61.4 63
Slide 14: Sustainable and diversified revenue base
Sustainable and diversified revenue base For personal use only 1H13 Minerals Revenue Other 15% Junior Production 18% Exploration 23% Iron 30% 12% Gold 51% Major / Intermediate Development Copper 82% 47% 22% Commodity Stage Customer >70% from gold and copper where prices are above long term average
Slide 15: Reflex rental fleet
Reflex rental fleet For personal use only Number of instruments on rent MAR 08 JUL 08 NOV 08 MAR 09 JUL 09 NOV 09 MAR 10 JUL 10 NOV 10 MAR 11 JUL 11 NOV 11 MAR 12 JUL 12 NOV 12 MAR 13 Month on month slowdown from July 12 to Dec 12 49% rebound from 31 Dec 12 to 8 Mar 13 Providing Innovative Drill
Slide 16: Acquisition of ioGlobal
Acquisition of ioGlobal For personal use only Effective 1 November 2012 $8m consideration ($4.8m cash, $3.2m shares) Provides cloud-based data management solutions for the mining, mineral exploration and oil and gas industries Acquisition enhances our product offering, broadens customer base
Slide 17: ioGlobal – What we do
ioGlobal – What we do Integrates Service and Resource Companies – internally & externally. Integrates our product offerings For personal use only (Instrumentation, Drilling Fluids, Equipment, Data Acquisition & Management and Analytics ioGlobal links providers and consumers of field operations data
Slide 18: Comprehensive total mining cycle opportunity
Comprehensive total mining cycle opportunity For personal use only Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 17
Slide 19: Oil & Gas division
Oil & Gas division Combined revenue* For personal use only ($m) 33.5 111% on 1H12 Record half year Includes $8.0m from VES International JV 21.3 Strong growth in Europe and Asia Pac, CBM strong in Australia 16.2 15.9 Additional management depth 14.4 13.1 Outlook for 2H13 - continued 11.
Slide 20: VES International Joint Venture
VES International Joint Venture For personal use only (m) unaudited 1H13 2H12 3rd largest provider of down hole Revenue USD 27.6 27.1 survey services in global oil & gas market EBITDA USD 7.8 8.0 Continued strong EBITA primarily Depreciation USD (2.5) (3.0) from US based operations EBITA USD 5.3
Slide 21: On track with strategy
On track with strategy For personal use only Past 1H13 Medium term End market Oil & Gas 25% Minerals 100% 75% Geographic Asia Pacific reach Other 100% 55% 45% Rent / Sell Sales 30% mix 100% Rentals 70% Note: All numbers based on actual or anticipated combined revenue Providing Innovative Drilling Fl
Slide 22: 1H13 Summary: Solid results despite the cyclical minerals slowdown
1H13 Summary: Solid results despite the cyclical minerals slowdown For personal use only Small decline in combined revenues despite challenging minerals market conditions Much improved Oil & Gas revenue growth (111% increase) Cyclical slowdown impact on Minerals division revenue Consequentia
Slide 23: 2H13 Outlook: Fundamentals point to positive outlook
2H13 Outlook: Fundamentals point to positive outlook For personal use only Fundamentals of key industry segments remain intact, although cost cutting initiatives and change of CEO’s in major companies slowing expenditure in the short term Activity expected to remain subdued for 2H13, picking up
Slide 24: Appendix
For personal use only Appendix Providing Innovative Drilling Fluids and Advanced Down Hole Instrumentation Worldwide 23
Slide 25: Strength through geographic diversification
Strength through geographic diversification For personal use only 29% Americas 27% Increasingly diversified business by geographic region Further growth opportunity in Europe 15% Africa 17% and Africa 6% Asia Pacific share likely to decline as a 11% Europe proportion of revenue as other region
Slide 26: Comprehensive product offering
Comprehensive product offering For personal use only SRU Fluids Integrated SaaS Core Orientation Gyro Down Hole Survey Magnetic Down Hole Survey Directional Equipment Exploration Development Production 30% revenue 47% revenue 23% revenue Providing Innovative Drilling Fluids and Advanced Down Hole In
Slide 27: Key business drivers and outlook
Key business drivers and outlook For personal use only Driver 2H13 Outlook Exposure to Medium to long term project horizons Majors/Intermediates Many have confirmed similar budgets to CY12 82% of 1H13 Minerals revenue from Major and Intermediate companies Exploration drilling MEG forecast robust exp
Slide 28: 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