IMDEX LIMITED

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15 August 2011

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Company Announcements O f fice ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001

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Dear Sir/Madam

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FY11 Full Year Results Conference Call and Slide Show

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Please find attached the scri p t from today’s FY11 Full Year Results Confere n ce Call and Slide Show.

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Yours faithfully

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Paul Evans

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Company Secretary

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Hello, everyone and thank you.

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I will begin by providing an overview of the Imdex Group results for FY11. Paul Evans, Imdex’s CFO and Company Secretary will then present a more detailed analysis of the financials. I will then cover the operations and divisional performance, comment on the outlook regarding Imdex’s main end markets of mining and oil and gas, and outline Imdex's strategy and opportunities for growth in FY12 and beyond.

Time has been allowed for questions at the conclusion of the presentation. For listeners who are not familiar with the Imdex Group further information can be found on our website.

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Ladies and Gentlemen, the 2011 financial year has been an exceptional year for Imdex, with the Company achieving its best ever results across all key metrics:

Record revenue and earnings;
Record financial performance in the four mining regions of Asia/Pacific, the Americas, Africa and Europe;
Record number of Reflex instruments on rent at the end of June 2011 and already exceeded at the end of July 2011;
Net assets have grown to new highs; and
A record dividend payout was declared, following reinstatement of a dividend in 1H11, whilst preserving the financial capacity of the business to fund further growth initiatives.

Our bolt-on acquisitions are adding to margin and expanding our geographic footprint.

Our technology portfolio is strong and our new product pipeline is exciting.

We have a number of excellent growth opportunities which, subject to no material deterioration in our end markets, will continue to drive revenue and earnings growth.

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Now let’s get a little more specific and turn to Slide 6 which provides an overview of the key financial results. Revenue from continuing operations was up 53% to $205.2 million.

EBITA from continuing operations was up 132% to $48.1 million, with net profit after tax before nonoperational items up 196% to $29.0 million.

The Company performed strongly in the robust market conditions experienced throughout the 2011 financial year.

Our operational cash flow performance was exceptional, growing from $5.7 million in FY10 to $35.9 million in FY11, and our already strong Balance Sheet strengthened further with net debt to total capital reducing to 13.4% and interest cover to EBITA of 17 times, even after the acquisitions made in FY11.

We have continued to make bolt-on acquisitions and recruit selectively to be able to meet and exceed our customers’ requirements. As a result, we have seen our global workforce grow by 33% to 399 people over the year of which more than half live and work outside of Australia. This reflects our strategy of investing in our team and business so we are well positioned longer term to benefit from improving market conditions.

Following reinstatement of Imdex’s dividend in 1H11, the Directors have declared a fully franked final dividend of 2.75 cents per share, bringing the full year payout to 4.5 cents per share, fully franked. The growing dividend reflects the strength of Imdex’s underlying earnings and future opportunities, as well as The Board’s commitment to paying a sustainable and growing dividend stream while balancing the Company’s capital as it continues to grow.

The robust trading conditions experienced in FY11 have so far continued into the early stages of 1H12. Recent short term volatility in global financial markets has not yet had an impact on Imdex’s end markets. Subject to there being no material deterioration in our end markets, we expect to see further growth given Imdex’s strong market positions, leading technologies, resilient business model and robust strategy.

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As illustrated by the bar charts on slide 7, Imdex’s revenue hit a record high and exceeded the levels experienced prior to 2008’s global financial crisis. Our FY11 revenue was up 44% on the previous peak to $205.2 million due to continued robust trading conditions and increased market share. The Minerals division was very strong with robust demand for both drilling fluids and down hole instrumentation.

During the year we experienced strong growth in the Reflex rental fleet with new highs achieved at 30 June 2011. Pleasingly, instrumentation numbers on active hire at the end of July 2011 continued their trajectory and saw a new record being reached.

The record revenue was reached despite underperformance in the Oil & gas Division caused by the floods in Australia and the new strategy being implemented in the oil & gas down hole instrumentation business.

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Slide 8 clearly shows the recovery in EBITA since the low point in FY10. Total EBITA was up 132% to $48.1 million, at an EBITA margin of 23.5%.

The strong minerals performance across all global mining regions drove EBITA growth.

Before moving onto the operational review and outlook for Imdex's principal markets, strategies and opportunities for future growth, I will hand over to Paul Evans for a more detailed look at Imdex's financial performance.

<< Slide 9 - Profit and Loss >>

Thank you Bernie. Slide 9 outlines the financial results in more detail and compares the result for FY11 against the prior corresponding period. As Bernie indicated, revenue from continuing operations for the full year was up 53% to $205.2 million, and operating profit after tax was up 196% to $29.0 million.

The effective tax rate for the period was 24.9% due to an overprovision arising from FY10. Adjusting for the overprovision, the effective tax rate was just over 30%. The overprovision includes additional R&D incentives and differing tax treatment on the loan interest for SEH.

Cashflows from operations for FY11 were up substantially to $35.9 million compared to $5.7 million in FY10. The increase largely reflects the improved trading conditions, an overall improvement in our customer collection levels, and a timing lag in our taxation outflows.

<< Slide 10 – Strong balance sheet>>

Moving to slide 10, net assets have increased $30.9 million since 30 June 2010 largely due to the improved trading of Imdex’s underlying businesses, and the acquisitions of Fluidstar and Mud Data.

Our working capital investment has increased in line with the growth in business activity, particularly in the area of stock in the Fluids business.

Our total gross debt position has increased by $5.8 million since 30 June 2010 following the increase in facility limits secured for the Fluidstar acquisition. Net debt (ie gross debt less cash) decreased during the year to $19.5 million from $23 million. As a result our already comfortable gearing levels, as measured by net debt to capital, further strengthened even after the acquisitions we completed in FY11 having decreased to 13.4% from 19.6% due to our lower net debt and improved asset position. If we include the recently announced proposed acquisitions of ADS and Systems Mud, our balance sheet will still remain strong with pro forma gearing at 30 June still comfortable at around 19%.

The increase in our tax payable arises largely due to the improved trading position and the balance of our FY11 taxes that become due and payable in FY12.

I’ll now pass back to Bernie for the remaining part of the presentation.

<< Slide 11 – Minerals Division >>

Thanks, Paul. As many of you know Imdex operates two divisions being Minerals and Oil & Gas. As stated earlier, we enhanced Imdex’s operating structure with the implementation of a regional structure on 1 July 2010 for our mining business, which means a different reporting regime where the contributions from drilling fluids and down hole instrumentation are combined for the region. This regional structure is delivering cross selling benefits and is one of the key reasons for our record financial performance across all key mining regions globally.

You can see the bar chart on Slide 11 which demonstrates the strength in this part of our business. Record revenue of $177.7 million, representing 87% of overall Group revenue, was 60% up on FY10. Asia Pacific continued to be the dominant region generating 54% of revenue, whilst the Americas and Africa contributed strongly with 26% and 17% of revenue respectively.

Mineral exploration expenditure in Asia Pacific, Africa, Canada and Latin America was strong throughout the year, with major customers such as Boart Longyear, Major Drilling, Lane Christensen, Energold, Foraco (including Adviser Drilling), Orbit Garant, Geosearch, Ausdrill, Swick and a host of other leading drilling contractors around the world experiencing increased drill rig utilisation and demand for Imdex’s products.

AMC is the leading brand of drilling fluids for the global mining industry and ongoing product development ensured that Reflex remained the number one supplier of down hole instrumentation to the mining and mineral exploration industry globally.

The acquisition of Fluidstar in September, 2010 has added considerable value during the period and the integration into AMC has been seamless.

We expect to drive further increases in the drilling fluids and down hole instrumentation mining business in FY12 and beyond.

Apart from organic growth in each of the major mining regions, recent and proposed acquisitions will assist in driving increased revenue and earnings.

Australian Drilling Specialties (ADS) has been an exclusive supplier of drilling fluids to AMC for many years and has its own formulations and proprietary technology. The acquisition of ADS, effective 1 July, 2011, will be seamless and will add considerable value to Imdex over many years.

The proposed acquisition of System Mud in Brazil will complete our fluids strategy for Latin America. Due to the high taxes and duties imposed on imported product by the Brazilian authorities, that country cannot be serviced economically from our base in Chile. Therefore, we needed an operation in the country and will say more about this shortly.

Our unique surface and underground solids control equipment for the diamond drilling industry has taken much longer to develop than we initially anticipated. It is new technology and there have been many learnings along the way as well as changes in environmental considerations. It is becoming environmentally unacceptable to have sumps with the drilling fluids next to the drilling rig. Our technology allows drilling fluids to be contained while the solids are removed from the fluid and disposed of separately. Water conservation and zero footprint with no environmental damage are key advantages of using our technology.

There was no meaningful contribution from this technology in FY11, however, we expect significant growth in FY12 and beyond as the technology is rolled out globally and the industry embraces the advantages of using this technology.

<< Slide 12 – Record Reflex rental fleet >>

Slide 12 clearly shows the benefit of our global structure and continued spending on product development and being the technology market leader. Robust activity in the global mining industry, our regional support structure, and cross selling initiatives have all contributed to achieving record Reflex rental fleet numbers throughout the year. At 30 June, 2011, instrumentation on active hire was 79% above the previous peak in July, 2008. I can happily say that our fleet’s growth trajectory has continued into FY12, with this new record being surpassed at 31 July, 2011 and continuing to be maintained at current levels even after the recent short term volatility in global financial markets.

Drill rig utilisation is likely to continue to increase in line with predictions by drilling companies, therefore, we would expect further marginal increases in the Reflex rental fleet throughout FY12.

<< Slide 13 – Acquisition of Australian Drilling Specialties (ADS) >>

If we move to slide 13, and as mentioned earlier, since the end of the financial year we have progressed towards completing the proposed acquisition of ADS, effective 1 July, 2011. This acquisition will be immediately earnings accretive and will add approximately $2.5 million to our EBITA line in FY12. The acquisition makes good strategic sense for us on a number of fronts:

Imdex will own the product formulations and intellectual property;
Imdex will gain ownership of key polymer technology;
Imdex will expand its product manufacturing in other regions, including east coast Australia;
Imdex will get increased control over the supply chain; and
Imdex will get additional oil and gas industry expertise.

<< Slide 14 – Acquisition of System Mud, Brazil >>

Turning to slide 14, on 25 July 2011 we announced the proposed acquisition of System Mud, the leading independent drilling fluid supplier to the mining industry in Brazil. The proposed acquisition of System Mud will be effective from 1 August, 2011. Like ADS, this acquisition will be immediately earnings accretive and should add approximately $1.5 million to our EBITA line in FY12. It provides Imdex with the following strategic benefits:

Access to the growing Brazilian minerals market, allowing our business to compete profitably in that market;
Ability to better service our global customers such as Boart Longyear and Layne Christensen;
Product formulations and intellectual property;
A base for Reflex in Brazil and additional cross selling opportunities; and
Allows us to join forces with System Mud in the Latin American market.

<< Slide 15 – Oil & Gas Division >>

Slide 15 shows that in FY11, Oil & Gas Division revenue was up 19% to $27.5 million, and represented 13% of total Group revenue.

Imdex has formed a 50:50 joint venture effective 1 July 2011 with DHSO Services (DHSO), majority owned by Lime Rock, based in Dubai. DHSO was already using the Flexit technology, and the global joint venture should allow Flexit to gain a better and more sustainable return than under the previous products model. The DHSO joint venture will not contribute meaningfully to revenue and profits in FY12 as the business will use this period to properly establish itself and build a platform for future growth.

The acquisition of Mud-Data (renamed AMC Oil & Gas – Europe) during the second half of FY11, will generate further growth in the Oil & Gas Division.

Mud-Data is a specialist drilling fluids and equipment supplier to the oil & gas and geothermal industries in Germany. Under the ownership of Imdex, capability and geographic reach is being substantially expanded and will cover all of Europe. The Mud-Data acquisition allows Imdex to accelerate growth plans in Europe and increases our product offering.

We are also focused on expanding the market for AMC’s specialist range of production and completion chemicals as a means of growing revenue and earnings in this division.

In terms of our oil and gas capabilities, the DHSO joint venture is supplying services to both the onshore and offshore oil & gas industry, whilst the AMC fluids business, including Mud-Data, is aimed at niche markets in the onshore industry.

<< Slide 16 – On track with strategy >>

Now I’d like to spend a few minutes on the Company’s strategy, outlook and prospects going forward.

Our focused strategy of supplying Drilling Fluids and Down Hole Instrumentation to two main end markets of mining and oil and gas is robust and will continue. As illustrated by slide 16, Imdex will continue to concentrate on late stage minerals applications and further penetrate underdeveloped mining markets globally while growing our oil and gas business.

Our medium term objective is to generate at least 40% of Group revenue from the oil and gas industry. In FY12, revenue from this sector should approximate 18% which is up on the 13% in FY11 and we should see a significant contribution from Mud-Data during the year.

As stated previously, DHSO is more likely to contribute meaningfully from FY13 and will be an important component in driving towards the 40% share of Group revenue.

We believe that this business sector diversification is logical and is an extension of our existing business into a sector in which we have considerable expertise.

The middle row of pie charts shows the benefits of the investment in the down hole instrumentation business which generated 68% of Group EBITA from only 37% of our revenue.

The pie charts on the bottom row show the benefit of the strategy in the instrumentation business to transition from a sales model to a rental model. In the past we did not rent any instrumentation, however, over the last 4-5 years we have been implementing a rental strategy and, in FY11, 31% of Group revenue was generated by rentals.

We will continue to invest in technology and employ the rental model going forward.

<< Slide 17 – Key business drivers and outlook >>

On Slide 17, we have listed the key drivers for our business where mineral exploration spend and drill rig utilisation are very important. Drilling rigs require drilling fluid and down hole instrumentation and as utilisation levels increase, the demand for Imdex products increases. This in turn drives increases in the Reflex rental fleet and our growing relationships with global customers ensures a more sustainable business. Investing in research and product development to continue technology and market leadership and enhancing operational efficiencies are key components in maintaining these strong relationships and we will continue to do that.

The simplification of our brands and the implementation of the regional business model for our mining business has already paid dividends and will continue to benefit the group for many years to come.

<< Slide 18 – Global exploration spend (non ferrous) >>

Global non ferrous exploration expenditure has made a rapid recovery post the GFC and large, intermediate and junior companies are well funded and back exploring.

Metals Economics Group estimate that global non ferrous exploration expenditure in calendar year 2011 will be up 40% on 2010 levels at US$16 billion. This estimate puts expenditure back above preGFC levels, however, our contention is that industry capacity is insufficient to spend this amount of money. Therefore, a proportion of the 2011 estimated expenditure will flow into 2012 and, based on current industry activity levels, we can expect a flow on to 2013 and so on.

Commodity prices appear robust and resource companies are well funded.

The spending is occurring in all major mining regions. Globally, the main activity is around gold, copper, nickel and uranium. There is also much activity in the iron ore and coal sectors.

Many of you have seen this slide previously, however, the facts remain the same. That is, there are long lead times from discovery to production and discovery is becoming increasingly challenging. Ore bodies are deeper, more complicated and cost significantly more to bring into production.

This is good news for Imdex because mining companies will need to continue spending on exploration and development requiring Down Hole instrumentation and Drilling Fluids to be able to access deeper and more complicated ore bodies.

A similar picture applies to the oil and gas industry where new discoveries are deeper and more complicated and more costly to develop. The International Energy Agency has estimated E & P spending in 2011 to be up on those levels experienced in 2010.

Both the onshore and offshore rig counts are around historical highs.

<< Slide 19 – Summary >>

In summary, I would like to close with the following remarks on slide 19:

FY11 was an exceptional year for Imdex with the company achieving its best ever results. Revenue and profits were the highest recorded by Imdex, and our Reflex rental fleet at 30 June, 2011 was 79% above the previous peak reached in July 2008. This has been exceeded again as at the end of July and subject to no material deterioration in Imdex’s end markets, further increases are expected throughout FY12.

Recent short term volatility in global financial markets has led to some uncertainty as to the outlook for global economic growth. We are currently experiencing unprecedented levels of activity in all of the major mining regions across the globe, and subject to there being no material deterioration in our end markets, we do not see our current activity levels diminishing.

We have a strong balance sheet, even after recent acquisitions are taken into account, and we continued spending on product development through the GFC and FY11 which has delivered a wider suite of instrumentation and new technologies such as solids control that have positioned Imdex as a market leader. The strength of our balance sheet has allowed us to pursue attractive growth opportunities, such as the acquisition of Fluidstar, the formation of the DHSO joint venture, the acquisition of Mud-Data, Australian Drilling Specialties and the proposed acquisition of System Mud in Brazil, all of which further strengthen the Company’s platform and uniquely position the Company to continue to benefit from resilient commodity and energy markets.

We continued to strengthen our management and global structure and have further simplified our business by having only the AMC and Reflex brands in the minerals business.

Imdex is well positioned to capitalise on a number of attractive acquisition and organic growth opportunities and increase shareholder value over the longer term given the Company’s market positioning, unique suite of proprietary technologies, customer relationships and global footprint.

As outlined on this call, subject to no material deterioration in Imdex’s end markets, in addition to increasing revenues, we also expect margins to improve further.

That brings the formal part of our presentation to an end. Paul and I are now happy to answer any questions you may have.

AI assistant

IMDEX LIMITED Call Transcript 2011

65119_rns_2011-08-14_7eb7b86c-2a42-411b-9a43-47f97816bf81.pdf

FY11 Full Year Results Conference Call and Slide Show

Imdex Limited

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<< Slide 9 - Profit and Loss >>

<< Slide 10 – Strong balance sheet>>

<< Slide 11 – Minerals Division >>

<< Slide 12 – Record Reflex rental fleet >>

<< Slide 13 – Acquisition of Australian Drilling Specialties (ADS) >>

<< Slide 14 – Acquisition of System Mud, Brazil >>

<< Slide 15 – Oil & Gas Division >>

<< Slide 16 – On track with strategy >>

<< Slide 17 – Key business drivers and outlook >>

<< Slide 18 – Global exploration spend (non ferrous) >>

<< Slide 19 – Summary >>

AI assistant

IMDEX LIMITED — Call Transcript 2011

65119_rns_2011-08-14_7eb7b86c-2a42-411b-9a43-47f97816bf81.pdf

FY11 Full Year Results Conference Call and Slide Show

Imdex Limited

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<< Slide 9 - Profit and Loss >>

<< Slide 10 – Strong balance sheet>>

<< Slide 11 – Minerals Division >>

<< Slide 12 – Record Reflex rental fleet >>

<< Slide 13 – Acquisition of Australian Drilling Specialties (ADS) >>

<< Slide 14 – Acquisition of System Mud, Brazil >>

<< Slide 15 – Oil & Gas Division >>

<< Slide 16 – On track with strategy >>

<< Slide 17 – Key business drivers and outlook >>

<< Slide 18 – Global exploration spend (non ferrous) >>

<< Slide 19 – Summary >>

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IMDEX LIMITED Call Transcript 2011