IMDEX LIMITED - Investor Presentation 2011

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22 November 2011

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Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001

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Dear Sir/Madam

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Merrill Lynch Rising Stars Presentation

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Please find attached the presentation to be used at the Merrill Lynch Rising Stars Conference in Brisbane on 22 November 2011.

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Yours faithfully

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Imdex Limited

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Paul Evans

Company Secretary

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Imdex Limited Merrill Lynch Rising Stars Presentation Brisbane

22/23 November 2011 Bernie Ridgeway

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

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Merrill Lynch Brisbane November 2011

Highlights

Record revenue and EBITA in FY11
Run rate in 1Q12 strong – a new quarterly record
Record financial performance in all major mining regions continuing
Reflex instruments on rent maintained at high levels with further growth forecast in FY12
Exciting technology development and new product pipeline
Oil & gas initiatives expected to deliver strong growth in FY13 and beyond
Low gearing and strong cash flow
Strategic bolt-on acquisitions adding to margin and geographic footprint
New growth initiatives to drive revenue and EBITA to higher levels

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Exceptional growth in FY11

Key indicator	FY10	FY11	Change
Revenue	$134.3m	$205.2m	53%
EBITA (excl non-operational items)	$20.7m	$48.1m	132%
NPAT (excl non-operational items)	$9.8m	$29.0m	196%
Operatingcash flow	$5.7m	$35.9m	530%
Gearing (net debt / capital)	19.6%	13.4%	
Interest cover	27 times	17 times
Total dividend (fully franked)	-	4.5 cents per share
Number of employees (inclpart time)	300	399	33%

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

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Merrill Lynch Brisbane November 2011

Record revenue

Revenue *

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($m)
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205.2
142.0
137.0 134.3
103.8
72.3
52.8
O&G
FY06 FY07 FY08 FY09 FY10 FY11 1Q12
excludes other income & discontinued operations
1Q12 numbers are unaudited
Minerals
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53% on FY10
 44% on pre-GFC record revenue of $142m
Minerals division
87% of total revenue
Strong performance
1Q12 up 111% to $64.9m (1Q11: $30.8m)
Oil & Gas division
13% of total revenue
Solid performance given floods impact in central & north eastern Australia
1Q12 up 6% to $7.3m (1Q11: $6.9m)

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Record EBITA

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EBITA
($m)
48.1
38.8
24.5
22.3
20.7 21.1
7.4
FY06 FY07 FY08 FY09 FY10 FY11 1Q12
excludes other income & discontinued operations
1Q12 numbers are unaudited
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132% on FY10
Strong minerals performance in all major mining regions drove EBITA growth
 24% on pre-GFC record of $38.8m
EBITA margins continued to improve to 23.5%
1Q12 EBITA up 87% to $21.2m (1Q11: 11.3m). Record quarterly EBITA driven by:
Additional fixed cost leverage
Growth in Reflex rental fleet
Market share growth

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

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Merrill Lynch Brisbane November 2011

Revenue and EBITA trends

$0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0	0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 EBITA ($m) Revenue ($m) EBITA Margin (%)

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Reflex rental fleet

96% above previous peak at 31 October, 2011
Seasonal slowdowns over December/January
Further growth expected in FY12 as new products rolled out

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Solids Control Technology

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Traditional drilling fluid sumps
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No sumps – fully enclosed system
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Solids removal and fluid property management

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No environmental damage
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Small environmental site footprint
Reduced site set up and remediation costs
Reduced water consumption
Less wear & tear to drilling components by abrasive fluid

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Quicker to mobilise

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Increasing estimated global exploration spend

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(non-ferrous) (US$Bn)
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22.5
20.8
20.4
19.3
19.0
18.0
17.0 17.1
13.2
11.5
10.4
7.5 7.7
5.1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Source: Metals Economics Group (2005-2011); McKinsey analysis (2012-2018) Reproduced with permission from Boart Longyear

50% on CY10 to highest level ever
Due to industry capacity constraints, likely flow into subsequent years
Expenditure focused on gold and copper. Excludes coal and iron ore
1/3 of estimated CY11 spend is by majors on long term projects

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

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Merrill Lynch Brisbane November 2011

DHS Oil & Gas Services Joint Venture

DHSO (majority owned by Lime Rock), is a 50:50 joint venture based in Dubai
DHSO has exclusive global licence to Imdex technology for the oil & gas sector
Initial operations focused on the Middle East. Will expand globally
Main competitors – Scientific Drilling International, Gyrodata
Global onshore and offshore surveying and steering market ~US$500m to US$600m
Aggressive growth planned over next 5 to 7 years

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Key business drivers and outlook

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Mineral exploration
spend
Client rig utilisation %
Level of Reflex rentals
Development of new
instrumentation
Key growth strategy
Revenue and cost
synergies
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Despite recent volatility in global financial markets,
commodity prices remain robust. Exploration activity
levels and spend currently at record levels
Current high utilisation levels expected to continue subject
to no material deterioration in end markets
Reflex rental fleet records set in FY11. New records set
early in FY12
R&D and product development spending continues on
both mining and oil & gas instrumentation. Further
releases expected in FY12 and beyond
Increasing # of preferred supplier agreements
Minerals industry: 2 global brands (AMC and Reflex)
Regional structure = more effective cross selling
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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

On track with strategy

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FY11
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Past
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Medium Term
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2
End market
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13%
Oil & Gas
Minerals
87%
Instruments
32%
Fluids
68%
Services
Sales
31%
Rentals
69%
¹ Based on actual or anticipated EBITA
Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World 2
Based on actual or anticipated revenue
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1
Profit
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2
mix
Rent / Sell
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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Summary

FY11 – Imdex’s best ever results

Record revenue and earnings
Record Reflex rental numbers
Strong balance sheet
Record operating cash flows
Full year dividend of 4.5 cents per share

Attractive growth opportunities to drive further growth

AMC Oil & Gas Europe drives fluids and equipment growth in the region
DHSO JV drives Oil & Gas instrumentation/services growth globally
System Mud increases representation and presence in expanding Brazilian market
New technology/products in mining and oil & gas, including solids control
Further organic growth across all global regions
FY12 expected to be higher than FY11 given no material change to end markets

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

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Appendices

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

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Merrill Lynch Brisbane November 2011

Structured to meet client needs

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Market
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Product
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Brand
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Minerals Oil & Gas
Instrumentation
Fluids Instruments Fluids
service
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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Profit & loss

($ m) FY10 FY11 Var % Revenue (excl interest income) 134.2 205.2 53%		FY10	FY11	Var %
EBITDA 24.9 53.8 116% Depreciation (4.2) (5.7) 37%
EBITA 20.7 48.1 132%
Amortisation (6.3) (6.8) 7% Net interest expense (0.8) (2.8) 260% Tax expense (3.8) (9.5) 154%
NPAT before non recurring items 9.8 29.0 196%
Impairment (34.0) - -
Forex on SGE loan (0.6) - -
Tax effect of non recurringitems 3.3 - -
Statutory NPAT (21.5) 29.0 -
NPAT / Weighted average shares on issue (cents) *(11.05)* *14.69* -
Cash flow from operations 5.7 35.9 530%

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Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Merrill Lynch Brisbane November 2011

Strong balance sheet

($ m) Jun 11 Jun 10 Net cash 18.4 9.0 Receivables 50.2 41.2 Inventory 41.7 28.6 Investment in SEH 16.1 6.8 Fixed assets 16.2 13.6 Intangibles 55.9 50.0 Other assets / Deferred tax 20.6 14.2	Jun 11	Jun 10
Total Assets 219.1 163.4
Payables 52.5 34.5 Commercial bills 25.9 19.5 Bank loan – Canada 6.9 5.7 Bank loan – Sweden 1.0 2.9 Vendor finance 2.8 - HP Finance 1.3 3.9 Provisions /Deferred tax 3.3 2.4
Total Equity 125.4 94.5
(CA – Inventory)/CL * *1.05* *1.03* CA/CL * *1.64* *1.58* *Gearing*(net debt / capital) *13.4%* *19.6%*

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

 Strong cash position

 Invested in working capital to support increased sales/rentals

 Investment in SEH remains non core/for sale

 Deferred tax asset on unrealised profits in tools

 Interest cover of 17 times (EBITA over net interest income)

 Low gearing

 Net Debt = $19.5m

Using CIBC and Westpac assumed repayment terms not statutory disclosure

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Merrill Lynch Brisbane November 2011

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.

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

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Merrill Lynch Brisbane November 2011

AI assistant

IMDEX LIMITED Investor Presentation 2011

65119_rns_2011-11-21_9d608bd0-45dc-4b2b-af2c-af9ec63e1cfb.pdf

Merrill Lynch Rising Stars Presentation

Imdex Limited Merrill Lynch Rising Stars Presentation Brisbane

Highlights

Exceptional growth in FY11

Record revenue

Revenue *

Record EBITA

Revenue and EBITA trends

Reflex rental fleet

Solids Control Technology

Increasing estimated global exploration spend

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

DHS Oil & Gas Services Joint Venture

Key business drivers and outlook

On track with strategy

Summary

FY11 – Imdex’s best ever results

Attractive growth opportunities to drive further growth

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Appendices

Structured to meet client needs

Profit & loss

Strong balance sheet

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Disclaimer

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

AI assistant

IMDEX LIMITED — Investor Presentation 2011

65119_rns_2011-11-21_9d608bd0-45dc-4b2b-af2c-af9ec63e1cfb.pdf

Merrill Lynch Rising Stars Presentation

Imdex Limited Merrill Lynch Rising Stars Presentation Brisbane

Highlights

Exceptional growth in FY11

Record revenue

**Revenue ***

Record EBITA

Revenue and EBITA trends

Reflex rental fleet

Solids Control Technology

Increasing estimated global exploration spend

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

DHS Oil & Gas Services Joint Venture

Key business drivers and outlook

On track with strategy

Summary

FY11 – Imdex’s best ever results

Attractive growth opportunities to drive further growth

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Appendices

Structured to meet client needs

Profit & loss

Strong balance sheet

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

Disclaimer

Providing Quality Drilling Fluids and Leading Down Hole Instrumentation to the World

More from IMDEX LIMITED

IMDEX LIMITED Investor Presentation 2011

Revenue *