IMDEX LIMITED — Investor Presentation 2015

Mar 22, 2015

216 Balcatta Road, Balcatta Western Australia 6021 PO Box 1262, Osborne Park Western Australia 6916

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Tel: +61 (0) 8 9445 4020 Fax: +61 (0) 8 9445 4042 imdex@imdexlimited.com

www.imdexlimited.com ABN 78 008 947 813

23 March 2015

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

Dear Sir/Madam

EAST COAST ROADSHOW

Please find attached the Investor Presentation for the Australian East Coast Roadshow being undertaking this week in Sydney and Melbourne.

Yours faithfully Imdex Limited

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Paul Evans Company Secretary

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Providing innovative drilling fluids and advanced down hole instrumentation worldwide.

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Investor Presentation

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March 20151

Agenda

• Overview

• Business Overview – Minerals and Oil & Gas

• Global Business

• Financial Update 1H15

• Minerals Division

• Technology Leadership

• Oil & Gas Division

• Summary

• Appendices

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Overview

• Market conditions in the minerals sector improved during 1H15

• Financial (1H15) • Activity in the oil and gas sector impacted by the fall in oil price (Audit Review) • Solid balance sheet maintained and well positioned for 2015

  • Minerals market – early signs of cycle upswing continuing

• Operational • Oil & gas market – In the process of ensuring AMC Oil & Gas is structured appropriately for the current market conditions

  • Maintaining & gaining market share through technological leadership

  • Diversifying customer base – non-mining applications & resource companies

Strategic

• Building a broad based & resilient business & increasing revenue

• Industry diversification – Ensure Oil & Gas is structured appropriately for the current operating conditions in the sector

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1H15 Financial Summary

• Combined revenue of $114.4 million[(1)] , up 12.3% (1H14: $101.9 million);

• Growth seen in both Minerals and Oil & Gas Divisions;

• EBITDA of $20.7 million[(2)] , down 14% (1H14: $24.2 million);

• Normalised EBITDA of $8.6 million, up 32.3% (normalised 1H14: $6.5 million) and up 431% on 2H14 (normalised 2H14: $1.6 million)

¹ Includes 30% of VES International (VES) revenue

• ² Including equity accounted VES result; profit on sale of the balance of holding in Sino Gas and Energy (SEH) of $14.2 million; and an additional $2.1 million provided in respect of the product containment incident Excludes the profit on sale of the remaining stake in SEH ($14.2m)

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Global Business Increasing Combined Revenue

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Minerals Division

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Minerals Division

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• Minerals Division contributed 62% of the Company’s combined revenue

• 11% increase on the prior corresponding period

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Minerals Division - Revenue Base

• Minerals revenue largely sourced from intermediate and major mining companies

• Majority of revenue from development and production projects

• Diverse mix of commodity exposures – largely gold/copper

• Outside of seasonal shutdown, month-on-month increases in units on rent from July 2014

• Bounce back in January 2015 (stronger than January 2014)

• End Feb 15 equal to July/Aug 14 levels

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Summary and Outlook

Technology Leadership

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The Reflex Story...

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The Reflex Story...

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The Reflex Story...

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The Reflex Story...

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The Reflex Story...

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REFLEX HUB – Blue Chip Global Customer Base

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SRU Growth Drivers & Benefits

Increasing number of Solids Removal Units (SRU) on hire due to:

• Unique sump-less technology

• Increasing adoption of the SRU technology in the US

• Increasing environmental regulation & awareness

• Increasing focus on reduction of cost, increasing drilling efficiency and improving safety of personnel

• Reduced water consumption; minimal drilling footprint; lower site set up & remediation costs

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• AMEC Environment Award Winner

• July 2014

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Oil & Gas Division

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Oil & Gas – Overview & Strategy

• Drilling fluids, solids control & waste management are multi-billion dollar markets

• Significant opportunities for year-on-year growth once market stabilises

• Geographical & revenue diversification

• Diversification strategy to grow the Oil & Gas Division to off-set cyclical downturns in minerals business. The recent collapse in oil price provides challenges in 2H15 and beyond

• In the process of ensuring AMC Oil & Gas is structured appropriately for the current market conditions

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Oil & Gas Division Combined Revenue

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VES International

• Imdex has 30% interest in VES

• Strong performance in 1H15. 2H15 will be more challenging

• Focus on increased deployment of InFlex technology (formerly Target INS), particularly in international markets outside the USA. For example, activity remains strong in the Middle East

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Summary

Strategy Execution Outlook FY15	• Market share through technological leadership • Diversifying customer base • Build a broad based & resilient business • Industry & geographic diversification
	• Continued product development to meet customer needs • Diversifying customer base • Marketing new technologies • Appropriate Oil & Gas Division investment
	• Increasing confidence in minerals market . Cautious optimism for ongoing measured recovery • Return of brown fields expenditure • Alignment with customers focused on maximising efficiency and increasing productivity • Ability to leverage Imdex’s specialist expertise and product development capabilities • Despite reduced expenditure in the energy sector, a large multi-billion dollar market for drilling fluids and associated equipment remains • Strongly positioned to capitalise 21

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Appendices

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Business Overview – Minerals

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Product / service offerings	•	Downhole/surface instrumentation	•	Drilling fluids & chemicals
	•	Real time/near real time data access	•	Solids removal units
		globally
	•	Data collection, storage, management
		and analysis
Target markets
	•	Drilling contractors	•	Drilling contractors
	•	Resource companies	•	Resource companies
	•	Non-mining applications	•	Non-mining applications
Strategic focus
	•	New technologies	•	Increase equipment rental
	•	Increasingly integrated data solutions	•	New technologies
Competitive advantages
	•	Leading technology	•	SRUs
	•	Multi-disciplinary skill set	•	Manufacturing & technical capabilities
	•	Market penetration	•	Drilling fluid engineers
	•	Established global presence & regional	•	User-friendly mud systems
		support centres	•	Global distribution network

Non-mining applications include horizontal directional drilling, water well and civil construction

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Business Overview – Oil & Gas

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Product / service offering	•	Drilling & completion fluids	•	Wellbore surveying services
	•	Production chemicals	•	Inflex (formerly Target INS)
	•	Fluid & waste management	•	Gyroflex survey tool
	•	Solids control equipment
Target markets	•	Eastern hemisphere	•	Global Oil & Gas industry – onshore/offshore
Strategic focus	•	Equipment rental	•	Become No.1 dedicated downhole survey
	•	Geographic expansion		service provider
	•	Building first class team
	•	Build scale
Competitive advantages	•	Agility/capability to deliver	•	Leading technology

• Leading technology • Efficient service capability – located in all active onshore US basins

Imdex ‘s Oil & Gas Division includes AMC Oil & Gas and a 30% shareholding in VES

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Global Business

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REFLEX HUB – increasing efficiencies

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The REFLEX Competitive Advantage – Seamless & Integrated

Leading Technology developed within total industry context

Market Penetration – diverse markets and customer base

Established Global Presence

Multidisciplinary skill set

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REFLEX HUB – Key Drivers

FOR IMDEX

FOR CONTRACTORS & RESOURCE COMPANIES

Adds value to existing range of instrumentation

Significantly enhances operational efficiency – simplifies workflows

Enables new technology / product offerings – e.g. in field geoanalysis

Paperless solution – data collection, storage & management

Provides new service offerings – data management

Secure access to critical information in real time – globally

Diversifies customer base – increasing exposure to Accuracy & quality of field data development & production phases for drillers & miners

Enables expanded future annuity style revenue

One data set, a single source of truth

stream

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Case Study: BHP Mitsubishi Alliance (BMA)

A productivity and cost improvement enabler for exploration drilling rigs

Requiremen t for BHP Mitsubishi Alliance (BMA)

Timely access to reliable, accurate data relating to all drilling activity to enable better business management, forecasting and

“Our target is to get an extra 30% production out of the rigs, this is an enabler with which to do this.”

Doug Dunn Manager Resource Geology and Reporting, BMA

productivity improvements

Solution

• In-field data collection through mobile forms

• Schedule of Rates

• Production Planning

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Case Study: BMA

Key elements of the REFLEX solution

• Real-time reporting

Daily Operations Report

Drilling Summary Report (cost summary)

“We have real-time visibility on invoice information. It is a far more efficient way of managing our costs and forecast.”

Field Operations Daily and Weekly Production Reports

• Secure access to database through REFLEX HUB web portal

• Data views, exports and reports based on standard suite of reports

Jaymie Perren Superintendent Exploration Services, BMA

“It was easy to access and view all the drilling information we need to run our business.”

Nathan Kunst Drilling Contractor, BMA

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SRUs – quantifying the benefits

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Additional Financial Information

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1H15 Key Metrics

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Group Revenue

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Combined Revenue increased 12.3% to $114.4 million:

• Minerals Division 62%;

• Oil & Gas Division 38% - Inclusive of VES revenue of $13m (1H14: $9.7m).

Includes 30% equity accounted VES NPAT.

Strong EBITDA margins in VES of 36% (1H14: 36%).

Signs of measured Minerals recovery continue into 2H15.

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1H15 EBITDA Segment Result

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The 1H15 result includes profit on sale of remaining investment in SEH ($14.2m), together with an additional amount provided for in relation to the product containment incident announced to the market on 13 March 2014 ($2.1m)

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Balance Sheet

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• Sale of our remaining SEH investment in 1H15 • VES investment increased due to strengthening USD • Receivable increases due to increasing business and tougher collection environment • 31 Dec 14 net debt $30.4m; reduced from SEH proceeds. Comfortable gearing 13.7% • Investment in Fixed Assets to support new business • Increase in net deferred tax with increase in rental fleet

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Working Capital Management

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• $4.4m of cash generated from $8.6m normalised EBITDA profit

• Working capital outflow arising from the increase in business activity and a tougher collection environment – aiming to reverse this in 2H15

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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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