IMDEX LIMITED — Interim / Quarterly Report 2008

Feb 17, 2008

Imdex Limited FY08 Half Year Results Presentation February 2008

DISCLAIMER

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. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions.

This presentation is not (and nothing in it should be construed as) an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security in any jurisdiction, and neither this document nor anything in it shall form the basis of any contract or commitment. The presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.

The Company has prepared this presentation based on information available to it, including information derived from publicly available sources that have not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, correctness or reliability of the information, opinions and conclusions expressed.

Any statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. To the maximum extent permitted by law, none of the Company, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

TODAY’S PRESENTATION

• Introduction

• � FY08 First Half � SEG Acquisition � Strategy for FY08 � Outlook

Introduction

INTRODUCTION

• Imdex is a Perth based, ASX listed company (ASX Code: IMD) supplying drilling products and services globally

• The industries serviced include: Mineral Exploration; Mining; Oil and Gas; Water Well and Civil

• Imdex is a technology market leader

• Imdex continues to build its global distribution and supply network

• Imdex employs circa 250 employees around the world

• Imdex has local representation in all major mining and exploration regions in the world

• Imdex has two operating divisions :

• (1) Fluids and Chemicals

• (2) Products and Services

INTRODUCTION – Operating Divisions

Fluids and Chemicals

• Manufacture and sale of fluids and chemicals to

• resources, oil & gas, water well and civil industries – onshore focus globally

• These fluids cool and lubricate the drill bit, keep

• the drill hole open and return cuttings to the surface

• Distribution and supply agreements with

• Sandvik and Boart Longyear

• Major competitors are M-I, Halliburton (Baroid)

• and Baker Hughes (all primarily focused on oil & gas)

• Major differentiating point is quality of service

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Australian Mud Company products in
characteristic green packaging
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INTRODUCTION – Operating Divisions

Products and Services

• We develop and manufacture our down hole

• instrumentation using the IP we own

• Imdex provides the leading down hole

• survey and core orientation instrumentation for the minerals market worldwide

• Distribution and supply agreements with

• Sandvik and Boart Longyear

• Powerful R & D capability for new and

• improved tools

• Competitors are generally privately owned

• businesses

ACT electronic core orientation tool kit

• Differentiating point is leading technology

• and quality of service

INTRODUCTION – Global Reach

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Major Operational Locations
Other Operations
Europe Germany Sweden
Kazakhstan Switzerland
Mongolia Turkey
UK
Vallentuna (Sweden)
East Sussex (UK) Timmins
Calgary
Riegel (Germany)
Aktau (Kazakhstan)
China
Indonesia
India
Laos
Malaysia
Congo New Zealand
Ghana
Papua New Guinea
Guinea
Philippines
Mali Singapore
Mauritania Brisbane Argentina
Thailand
Kalgoorlie Bolivia
South Africa
Perth Canada Santiago
Tanzania Johannesburg
Chile
Uganda
Mexico
Zambia
Peru
Africa Asia Pacific Americas
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INTRODUCTION – Group Structure

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IMDEX LIMITED
Fluids & Products &
Chemicals Division Services Division
Australian
Suay Southern-
Samchem Mud Poly-Drill SEG Flexit Reflex Chardec
Energy land
Company
effective 1 January 2008
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FY08 First Half

FY08 FIRST HALF – Financial Highlights

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up 115%
up 87%
up 74%
up 45% up 44% 1.75 cents
Net Profit Basic EPS Fully
Revenue after Tax Operating (continuing franked
from EBITA from from cash flow operations) dividend
operations operations operations before tax 6.34 cents per share
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FY08 FIRST HALF – Operational Highlights

• Fluids and Chemicals Division

• Acquisition of Poly-Drill in Canada for $3.7m – 1 Jul 07

• Acquisition of 75% of Suay in Kazakhstan for $0.5m – 1 Jul 07

• Acquisition of Southernland in Chile for $2.9m – 1 Nov 07

• We now operate in all major mining and exploration regions of the world

• Upgrade of Samchem facility

• Expanded and stronger management team

• Products and Services Division

• Divestment of Surtron operations for $17.5m cash – effective 1 Nov 07

• This divestment focuses the business on our core competencies

• Acquisition of SEG in Germany for $13.8m – 25 Jan 08

• Ongoing improvements to down hole instrumentation eg Ez-Trac

• Expanded and stronger management team

FY08 FIRST HALF – Income Statement

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Normalised Revenue by Division Normalised EBITA
$25.0
$80.0 $75.7m
87% $21.1m
$70.0 $20.0 normalised
$60.0 growth
$15.0
$50.0
$40.0
$10.0
$30.0
$20.0
$5.0
$10.0
$0.0 $0.0
1H04 1H05 1H06 1H07 1H08 1H04 1H05 1H06 1H07 1H08
Fluids and Chemicals Products and Services Minerals Processing
Normalised results include Surtron trading, excludes profit on sale
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FY08 FIRST HALF – Income Statement

Normalised Revenue Growth

Normalised EBITA Growth

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$80.0 +16%
$25.0
+29%
$70.0
+24%
$60.0 $20.0 +63%
$50.0
$15.0
$40.0
$30.0 $10.0
$20.0
$5.0
$10.0
$0.0 $0.0
1H07 Organic Acquisition 1H08 1H07 Organic Acquisition 1H08
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The majority of our revenue and profit growth has been organic

Normalised results include Surtron trading

FY08 FIRST HALF – Income Statement

	First Half FY08 $000’s	First Half FY07 $000’s
- 11,950 Profit on sale of Surtron (before tax) 617 1,066 Other Revenue 23,451 33,421 Products and Services Revenue (incl Surtron) 29,073 42,302 Fluids and Chemicals Revenue 5,986 22,017 Net Profit for the halfyear 89% 9,815 18,510 EBIT (incl Surtron) 87% 11,248 21,057 EBITA (incl Surtron) 45% 53,141 76,789 Normalised Revenue
8,296 11,949 Operating Cash Flow before Tax 268%
1.00 1.75 Dividendsper Share 3.65 6.34 Earnings per Share (continuing operations) 44%

FY08 FIRST HALF – Balance Sheet

Goodwill & intangible assets Other assets Property, plant & equipment Financial assets Inventory Receivables Cash	Dec 07 $000’s	Jun 07 $000’s
	67,809 965 8,481 16,746 17,158 32,381 16,614	62,779 888 13,207 16,056 13,839 27,806 15,271
Total Assets	160,154	149,846
Provisions / Deferred tax liabilities Vendor finance – Chardec Other borrowings Hire purchase borrowings Bank loan Commercial bills Payables	6,905 5,218 223 421 14,940 11,000 20,909	7,141 10,088 502 2,407 15,140 12,300 25,654
Total Equity	100,538	76,614
Debt to Equity D/(D+E)

IMDEX SNAPSHOT

Current share price Number of shares Market capitalisation	$2.14 182.93m $ 391.47m
Basic earnings per share Earnings per share growth	6.34¢ 74%
Dividend per share Dividend payout ratio	1.75¢ 27.6%
Gearing(D/D+E) Current Ratio(CA/CL)	24% 2.73
Quick Ratio(CA-Inv/CL) Interest Cover(NPBT/Int)	2.17 12.7x

IMDEX SNAPSHOT

3.2% Queensland Investment Corporation 5.7% National Nominees 5.7% J P Morgan Nominees Top 10 Shareholders (as at 14 February 2008) 2.3% RBC Dexia Investor Services Australia Nominees Pty Ltd (BKCust Account) 2.4% UBS Nominees 3.0% RBC Dexia Investor Services Australia Nominees PtyLtd(PIIC Account) 3.7% 4.1% 5.3% 11.4% Citicorp Nominees HSBC Custody Nominees (Australia) ANZ Nominees Fiberform Vinidic Holding AB
	Non-Exec Chairman Ian Burston
	Managing Director Bernie Ridgeway
	Non-Exec Director Ross Kelly
	Non-Exec Director Kevin Dundo
	Non-Exec Director Magnus Lemmel
	Email: imdex@imdexlimited.com Fax: +61 8 9481 5377 Telephone: +61 8 9481 5777 Level 1, 15 Rheola Street, West Perth Western Australia, 6005 Contact Details

SEG Acquisition

SYSTEM ENTWICKLUNGS GmbH

• Acquired 100% of issued share capital, effective 1 January 2008

• Purchase price of $13.8m paid in cash at settlement

• Funded from operating cash flow and a $7m Westpac facility

• Founded in 1976

• Based in Riegel, Germany

• SEG develop, manufacture and sell technologically advanced down hole tools using their own IP, primarily for the oil & gas industry

SYSTEM ENTWICKLUNGS GmbH

• SEG’s main product is the Target INS

• An advanced down hole survey

system using adapted aerospace inertial navigation technology – world class

• Allows for continuous on the move survey and north finding ability - cost savings

• Imdex will supply technology to independent service providers to compete in the oil and gas industry

• A building block for other exciting new technologies to be introduced to the oil & gas industry

SYSTEM ENTWICKLUNGS GmbH

• Why SEG?

• Complementary to the Imdex Down hole Instrumentation division

• Expands the Imdex range of products

• Enhances Imdex’s position as a leading global supplier of technologically advanced down hole survey systems

• Facilitates entry into the global oil & gas business

• Strengthens Imdex’s skill base

• Other products in the pipeline eg Drop tool

• Provides an attractive financial return

Strategy for FY08

GLOBAL STRATEGY – Second Half OUTLOOK

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Fluids and Chemicals Products and Services
Outcomes
•Become 5 [th] global fluids •Focus on integrating SEG in
player behind M-I, Germany
• Increased global presence
Halliburton, Baker Hughes &
•Grow the division further
Newpark • Enhanced reputation
organically
•Focus on integrating recent • Increased revenue,
•Penetrate the previously
acquisitions (Poly-Drill in margins and profitability
untargeted oil and gas market
Canada, Suay in Kazakhstan
• Expanded range of down
and Southernland in Chile) •Maintain and extend our
hole instrumentation
market leadership through
•Grow the division further offering
cutting edge research and
organically
• Additional supply product development
•Maintain superior customer agreements
•Maintain superior customer
service
service
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• •Support global alliances •Support global alliances

GLOBAL EXPLORATION SPEND

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Estimated Exploration Spend Worldwide (Non Ferrous)
US$ Billions
$10.0
$9.0
$8.0
$7.0
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
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Data from the Corporate Exploration Strategies report of the Metals Economics Group – 13/11/2007
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• Budgeted mineral exploration expenditure a record US$10.5B in 2007 - up 40% on the US$7.5B in 2006. Including uranium, total is US$11.4B

• Exploration by commodity is Gold (41%), Base Metals (36%), Diamonds (10%), Uranium (8%), PGM’s (3%)

• Uranium exploration US$936m, up from US$92m four years ago

• Strong demand, capacity constraints

• Deeper and more complicated ore bodies

• Longer timeframes from discovery to production

GLOBAL EXPLORATION SPEND

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Worldwide Exploration Budgets Worldwide Exploration Budgets
by Region 2007 (%) by Stage 2007 (%)
Pacific /
United
Latin
SE Asia
States America Minesite
Grass
Australia 8% 4% 24% 20% roots
12% 39%
16% 19%
Africa 41%
17%
Canada
Late
Stage
Rest of
World
� In Latin America, 83% of expenditure is undertaken in Mexico, Peru, Chile, Brazil and
Argentina
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• In Africa, major exploration destinations include South Africa, DRC, Angola, Tanzania, Botswana and Ghana representing two thirds of Africa’s total spend

• 1,980 companies’ budgets totalling US$11.4B Source: MEG, Nov 2007

• Late stage exploration exceeds grassroots exploration for the third consecutive year

Outlook

FY08 FULL YEAR OUTLOOK

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FY08 Forecast Revenue FY08 Forecast EBITA
$160.0 $ 152m $45.0 $ 42m
$40.0
$140.0
$35.0
$120.0
$30.0
$100.0
$25.0
$80.0
$20.0
$60.0
$15.0
$40.0
$10.0
$20.0
$5.0
$0.0 $0.0
FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08
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Based on our first half results we are pleased to upgrade our FY08 forecast revenue and EBITA

IMDEX AS A “FLIGHT-TO-QUALITY” INVESTMENT CHOICE

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S/P ASX 200
“…periods of volatility are
exactly the right time to refocus January 2008 Cash on hand
on fundamentals…” of $16.6m
Current assets
Global Research Highlights – Merrill Lynch
25 Jan 08 of $83.8m
against current
liabilities of
Finance costs
$30.7m
of $1.3m on
profit after tax
of $11.9m
31 Dec 07
gearing at
“…focus on quality companies
24%. Post
with very conservative balance
SEG is 28%
sheets and management that we
•$10m, fixed at 7%
have confidence in…”
•$14.9m, at ~ 6%
Matt Williams, Senior Portfolio Manager -
Perpetual Market Update 22 Jan 08
•$5m, no interest
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THE IMDEX VALUE ADD

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Employees choose Strong Investors choose
Imdex growth Imdex
Leading
Quality service technology,
IP ownership
Suppliers choose Customers choose
Imdex
Global Imdex
reach
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IMDEX Limited

Australia’s Global Drilling Products & Services Company - a service provider to the natural resources industries