Slide 1: Cover letter: CommSec Mining Services Conference Presentation
For personal use only 8 October 2007 Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Commsec Mining Services Conference Presentation Please find attached a copy of the presentation being made to the attendees of the CommS
Slide 2: IMDEX Limited – Mining Industry Tour and Conference
For personal use only IMDEX Limited “Australia’s Global Drilling Products & Services Company” Mining Industry Tour and Conference 8 October 2007
Slide 3: Agenda
AGENDA For personal use only ¾ Who we are – what we do – our global reach ¾ Where have we been ¾ Growth Story – acquisitions (FY07 & FY08) ¾ Group Structure ¾ What are our Strengths ¾ FY07 Highlights, P & L Summary and Balance Sheet ¾ Imdex Snapshot ¾ Outlook ¾ Mineral Exploration Expenditure Octobe
Slide 4: Who We Are
WHO WE ARE For personal use only ¾ Imdex is a Perth based, ASX listed company (IMD) supplying drilling products and services globally ¾ The industries serviced include: Mineral exploration Mining Oil and gas Water well Civil ¾ Imdex has two global operating divisions: Drilling fluids and
Slide 5: Who We Are
WHO WE ARE For personal use only ¾ Imdex is a market leader in many disciplines ¾ Imdex is building on its comprehensive global distribution and supply network - recent agreements with Sandvik (distribution) and Boart Longyear (supply) ¾ Imdex engages 200+ employees across the world ¾ Imdex operates
Slide 6: Who We Are – Global Reach
WHO WE ARE – GLOBAL REACH For personal use only Major Operational Locations Other Operations Europe Germany Sweden Kazakhstan Switzerland Mongolia Turkey UK Vallentuna (Sweden) Timmins Calgary East Sussex (UK) Almaty (Kazakhstan) China Indonesia Laos Malaysia New Zealand Congo Papua New Guinea Ghana
Slide 7: Where Have We Been – Five Year Trend
WHERE HAVE WE BEEN – FIVE YEAR TREND For personal use only Revenue by Division $30.0 EBITA (normal operations) $140.0 $25.0 $120.0 $100.0 $20.0 $80.0 $15.0 $60.0 $10.0 $40.0 $5.0 $20.0 $0.0 $0.0 FY03 FY04 FY05 FY06 FY07 FY03 FY04 FY05 FY06 FY07 Fluids and Chemicals Products and Services Minerals Pro
Slide 8: The Imdex Growth Story – FY07
THE IMDEX GROWTH STORY – FY07 For personal use only Expansion of the Group continued in FY07 with the acquisition of three down-hole surveying instrument companies: Reflex, Sweden Chardec, UK Flexit, Sweden (1 August 06) (1 August 06) (1 May 07) $25.4m $17m $22m October 2007
Slide 9: The Imdex Growth Story – FY08 (to date)
THE IMDEX GROWTH STORY – FY08 (to date) For personal use only ¾ 2 acquisitions effective 1 July 07 with a 3rd scheduled for 1 November 07 Poly-Drill, Canada – acquisition effective 1 July 07 (cost A$3.5m) Suay Energy Services, Kazakhstan – acquisition of 75% effective 1 July 07 (cost A$0.5m) Souther
Slide 10: Group Structure
GROUP STRUCTURE For personal use only IMDEX LIMITED Drilling Fluids & Drilling Products & Chemicals Division Services Division Australian Suay Southern- Samchem Mud Poly-Drill * Surtron # Reflex Chardec Flexit Energy * land ^ Company * - From 1 July 2007 ^ - From 1 November 2007 # - Potential divest
Slide 11: What Are Our Strengths
WHAT ARE OUR STRENGTHS For personal use only Organic and acquisition growth have added to our strengths: ¾ IP ownership and manufacturing technologically leading products for the drilling industry ¾ Strong brands in Australia and internationally ¾ Global distribution and supply network ¾ Customer fo
Slide 12: FY07 Results – Highlights
FY07 RESULTS – HIGHLIGHTS For personal use only up 153% up 79% up 69% up 60% up 44% 1.5 cents Final fully EBITA Earnings franked Operating (normal Net Profit Operating per share dividend Revenue operations) after Tax cash flow (8.7 cents) per share October 2007
Slide 13: FY07 Results – P&L Summary
FY07 RESULTS – P&L SUMMARY For personal use only 2007 2006 2005 Year ended 30 June $000’s $000’s $000’s Revenue 119,340 66,792 40,051 79% 67% 1% EBITDA Sales up 30,196 14,414 6,889 by 79% 109% 109% 630% EBIT 22,398 11,983 5,499 87% 118% 272% Net Profit after Tax 13,518 7,984 4,172 69% 91% 213% Opera
Slide 14: FY07 Results – Balance Sheet
FY07 RESULTS – BALANCE SHEET For personal use only 2007 2006 Strong cash position $000’s $000’s Cash 15,271 6,421 Significant uplift in total assets Receivables 27,806 18,798 due to acquisitions Inventory 13,839 9,707 Financial assets; investment in Financial assets 16,056 4,500 SGE. Non core,
Slide 15: FY07 Results – Imdex Snapshot
FY07 RESULTS – IMDEX SNAPSHOT For personal use only Current share price 160¢ Number of shares 181.47m Market capitalisation $290.35m EBITDA $30.20m Depreciation ($4.37m) EBITA $25.83m Amortisation ($3.43m) EBIT $22.40m NPAT $13.52m Basic earnings per share 8.74¢ Earnings per share growth 44% Dividen
Slide 16: Outlook
OUTLOOK For personal use only ¾ Imdex is becoming the fourth global player in drilling fluids behind M-I (Schlumberger/Smith International), Halliburton and Baker Hughes ¾ Imdex is supplying market leading technology in down hole instrumentation ¾ Strong demand for commodities and energy is expected
Slide 17: Outlook
OUTLOOK For personal use only ¾ Energy sector continuing to show strong operating conditions ¾ We expect to increase market penetration with drilling fluids and other products into oil & gas industry (eg MEMS gyro, solids control equipment) ¾ Significant growth is expected from recent acquisitions o
Slide 18: Outlook – Global Exploration Spend
OUTLOOK – GLOBAL EXPLORATION SPEND For personal use only Estimated Exploration Spend Worldwide (Non Ferrous) US$ Billions Budgeted mineral $10.0 exploration expenditure is a record US$10B in $9.0 2007 up 33% on the $8.0 US$7.5B in 2006 $7.0 $6.0 Exploration in non $5.0 mature markets $4.0 growin
Slide 19: Outlook – Global Spend
OUTLOOK – GLOBAL SPEND For personal use only Worldwide Exploration Budgets* Worldwide Exploration Budgets* by Region 2006 (%) by Stage 2006 (%) Pacific / United Latin SE Asia States America Minesite Australia 4% Grass 8% 24% 18% roots 11% 39% 16% 19% Africa 18% 43% Canada Late Stage Rest of World
Slide 20: IMDEX Limited
For personal use only IMDEX Limited Australia’s Global Drilling Products & Services Company - a service provider to the natural resources industries