IMDEX LIMITED — Investor Presentation 2014

Aug 17, 2014

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FY14 Results Presentation August 2014

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Agenda

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FY14 – overview

• Challenging market conditions in minerals sector continued throughout FY14

• Positive signs of improvement were evident during 4Q14

o Month-on-month increases in Minerals revenue from 3Q14

• 21% increase in the number of REFLEX rental instruments on hire from 3Q14

• Increasing throughput and revenue generated by REFLEX HUB

• Growing number of SRUs on hire, with further increases expected in early FY15

• Strong activity continued within the oil and gas sector – record divisional revenue o financial performance adversely impacted by the product containment incident

• FY14 results impacted by a number of one-off balance sheet adjustments and non-recurring items – resulting in a net loss of $3.2m

• Solid balance sheet, well positioned for FY15

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FY14 key metrics

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Combined revenue $204.6m

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Includes share of VES JV revenue $21.1m (FY13: $16.6m)

Normalised EBITA/EBITDA

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Includes 30% equity accounted VES International JV NPAT. Strong EBITDA margins in the JV of 37% (FY13: 31%). Imdex share of result impacted by amortization , depreciation and tax charges.

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Summary and Outlook

Financial Review

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FY14 EBITA segment result

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The FY14 result includes profit on partial sale of investment in SEH ($24.1m), one-off balance sheet adjustments ($18.2m) , together with costs and provisions relating to product containment incident ($9.1m)

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Balance sheet

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Working capital management

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• $2.9m of cash generated from $2.8m of EBITA loss

• Working capital release due to improvements in stock and debtor levels

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Summary and Outlook

Operational Review – Minerals Division

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Minerals Division

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Revenue base - Minerals

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Minerals Division highlights

• Continued product development during the cycle

• Expansion of customer base, together with greater exposure to resource companies and the production phase of the mining cycle

• Increased exposure and capabilities within non mining applications, including HDD and waterwell markets

• Development of underground and heli-portable SRUs and positive customer feedback from field trials

• Increased throughput and continuing positive feedback with the marketing of REFLEX HUB

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Unique sumpless technology

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The REFLEX HUB

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Seamless & integrated

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REFLEX HUB customers positive

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The REFLEX competitive advantage

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REFLEX Barometer

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• Monthly reductions from July 12 peak to December 13 reflecting cyclical slowdown

• Up month-on-month for last 3 months, reflecting bottom of cycle

• The typical seasonal shut down is throughout December and January

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Summary and Outlook
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Operational Review – Oil & Gas Division

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Oil & Gas Division

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Oil & Gas Division highlights

• New CEO of AMC Oil & Gas appointed

• Record revenue levels for Oil & Gas, reflecting ongoing investment in the development of the Division – 39% of combined revenue

• Further investment in equipment, working capital and talented personnel to support ongoing growth

• Continuing strong revenue and EBITDA performance by the VES joint venture

• Imdex Technology successfully relocated from Germany to California in the USA

• Investment in InFlex (previously known as the Target INS) resulting in the most accurate and fastest downhole survey instrument in the oil & gas industry

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VES JV

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VES joint venture

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Robust oil and gas market

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Outlook & Summary

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FY14 operational summary

• Development during minerals cycle maintained product leadership and competitive advantage

• Positive signs of improvement evident during 4Q14

• Diversified customer base and revenue generated by new technologies

• Increasing number of SRUs on hire

• Blue chip companies investing in REFLEX technologies for the long-term

o Monthly annuity revenue stream being developed

• Increasing exposure and capabilities within non-mining applications

• Substantial opportunities for long-term growth in oil and gas sector

• Strong operational leadership to drive growth profile in FY15 and beyond

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FY15 – the outlook is positive

• Evidence of increasing activity and growing optimism for Minerals Division

• Increased interest in new technologies, provides an attractive platform for further revenue growth through FY15 and beyond

• Alignment with customers focused on maximising efficiency and productivity.

• Activity within the energy sector remains robust and continues to offer substantial year-on-year growth opportunities for Oil & Gas Division

• Market for drilling fluids and associated equipment globally is approximately US$18 billion and growing

• Strongly positioned to capitalise on a number of opportunities within core markets; forecasting improved results for FY15

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FY15 – key areas of focus

• Investing in Imdex’s oil and gas business to accelerate growth

• Marketing new technologies to new and existing customers globally

• Increasing annuity revenue streams via REFLEX HUB

• Supporting customers to increase the productivity and efficiency of their operations

• Increasing exposure and capabilities within non mining applications, including HDD and waterwell markets

• Leveraging Imdex’s specialist expertise and product development capabilities

• Increasing market share in previously under-penetrated regions

• Strong cost discipline and prudent working capital management

• Identification of select strategic market opportunities and acquisitions, i.e. $3m equity acquisition of 2iC Australia Pty Ltd (2iC) currently in progress

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The growth phase

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Appendix

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Business overview

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Minerals growth opportunities FY15

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SRUs – what are the benefits?

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SRUs – quantifying the benefits

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REFLEX HUB increasing efficiencies

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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.

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