IMDEX LIMITED — Investor Presentation 2016

Aug 21, 2016

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Results Presentation 2016 Financial Year

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22 August 2016

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Established Global Business

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• Established global business in all the key mining areas of the world

• Largest gold budgets by country are Canada, US and Australia – 40% of total

• Latin America, North America and Asia Pacific make up ~ 80% of global gold budgets

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Refined Company Structure

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• 100% focused on core minerals business in FY17 – competitive advantages & differentiated position

• Divestment of oil and gas assets – closure and disposal costs are largely limited to FY16

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Key Metrics & Performance

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Key Metrics

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Key Metrics
A$m unless indicated otherwise	FY16	FY15	VAR	VAR%
Statutory revenue from continuing operations1	143.3	142.3	1.0	1%
EBITDA from continuing operations	15.1	27.6	-12.5	-45%
Normalized EBITDA from continuing operations	20.3	15.6	4.7	30%
NPAT	-56.2	-22.5	-33.7	-150%
EPS (cents)	-23.11	-10.44	-12.67	-121%
Normalized operating cash flow (excluding financing costs)	9.4	16.7	-7.3	-44%
Gearing (%)3 (ND / (ND + E))	21%	17%	4%	23%
Interest cover (times) (normalized EBITDA / interest expense)	2.0	5.2	-	-
Net assets	115.6	160.8	-45.2	-28%
Number of employees as at 30 June	4682	524	-56	-11%

1AMC Oil & Gas is now classified as discontinued operations and Imdex’s share in VES has been written off

2 Includes 74 AMC Oil and Gas employees within discontinued operations

3 27% based on total net debt (FY15: 17%)

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FY16 Revenue

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A$m

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269.6
232.7
188.2
183.5
173.7
241.7 Minerals
182.7
Oil & Gas
125.4
142.3
143.3
58.1
50.0 45.9
27.9 30.4
FY12 FY13 FY14 FY15 FY16
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FY16 Normalized EBITDA

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A$m

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83.6
41.7
20.3
15.6
7.4
-6.6
-2.7
FY12 FY13 FY14 FY15 FY16
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Continuing Operations Discontinued Operations

• Continuing operations includes Minerals

• Discontinued operations includes AMC Oil & Gas for FY16 and is separated in FY15 for comparative purposes.

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FY16 EBITDA Segment Result

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	FY16	FY16 ONE-OFFS	FY16 FY15
A$m(unless indicated otherwise)	INCLUDING ONE-OFFS	Restruct. & Other Costs Impairment	NORM. TOTAL NORM. TOTAL VAR VAR%
DISCONTINUED OPERATIONS AMC Oil & Gas ASSETS HELD FOR SALE VES joint venture CONTINUING OPERATIONS Oil & Gas engineering and product development* Minerals Corporate Combined EBITDA			(6.6) (2.7) (3.9) 144% 0.0 (1.3) 1.3 -100% (1.7) (1.7) 0.0 0% 27.1 23.9 3.2 13% (5.1) (6.6) 1.5 -23%
	(19.2)	(12.6)
	(32.2)	(32.2)
	(2.6)	(0.9)
	23.6	(3.5)
	(5.9)	(0.8)
	15.1	(5.2)	20.3 15.6 4.7 30%
	(36.3)	(17.8) (32.2)	13.7 11.6 2.1 18%

* Ceased equity accounting 1 July 2015

** FY16 Oil & Gas Engineering & Product Development formed part of minerals product development – continuing operations

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FY16 Balance Sheet

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A$m(unless indicated otherwise)	30 JUNE 2016	30 JUNE 2015
Cash	13.0	8.4
Receivables	28.8	31.1
Inventory Assets held for sale	27.4 3.2	37.3 32.2
Fixed assets	38.2	42.0
Intangibles	60.9	62.6
Other assets / deferred tax	24.9	22.7
TOTAL ASSETS	196.4	236.3
Payables	20.8	23.4
Bank loans1	43.0	40.4
HP finance	1.2	1.5
Other liabilities, provisions, current tax	15.8	10.2
TOTAL EQUITY	115.6	160.8
Quick ratio2(current assets – inventory) / current liabilities Current ratio2current assets / current liabilities Gearing net debt / (net debt + equity)3	0.80 1.23 21%	0.70 1.27 17%

1. Represented by total debt ($54m) less amortised warrant and capitalised borrowing cost s

2. Excludes assets held for sale

3. 27% based on total net debt (FY15: 17%)

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FY16 Working Capital Management

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A$m

• *Normalized EBITDA from continuing and discontinued operations.

• ** Normalized cash flow from continuing and discontinued operations (excluding financing costs)

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Operational Overview

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Minerals Update & Strategy

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Financial

• FY16 revenue increased slightly (1% ) to $143.3m (FY15: $142.3m)

• • FY16 normalized EBITDA increased 13% to $27.1m (FY15: $23.9m)

• • TRIFR for FY16 was 4.11 – below industry safety benchmarks

• Increase in greenfield/brownfield activity 4Q16 – signs of industry upturn, mainly gold

• Performance in challenging market reflects competitive advantages

Operational

• REFLEX rental fleet up 6% on FY15 – further increases expected

• Restructure and cost reduction program implemented

• Continual focus on cost base

• Ability to leverage fixed costs as conditions improve

Strategic

• Develop leading technologies and Imdex solutions

• • Leverage first mover advantage – cloud solutions, connectivity & geoscience expertise • Leverage established global network • Expand and diversify global client base – resource companies, drillers & service companies • Attract, engage, develop and retain talented people • Build a resilient business with sustainable earnings by becoming an integral part of our clients’ operations – gain additional exposure to production activities

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Minerals Revenue - Regions

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A$m

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241.7
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182.7
Europe 10%
142.3 143.3
Asia Pacific 34%
125.4
Americas 41%
Africa 15%
FY12 FY13 FY14 FY15 FY16
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Minerals Revenue by Quarter FY07 – FY16

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A$m

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70
60
50
40
30
20
10
0
1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16
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Minerals Barometer

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Number of REFLEX instruments on hire

Seasonal factors: April / May change over from winter to summer drilling programme in North America; December – January traditional holiday shutdown

• REFLEX rental fleet – a lead indicator of market conditions within the minerals industry

• Number of REFLEX instruments on hire up 6% on FY15 – highest in 3 years with further increases expected

• Newer technologies yield significantly higher rentals

• Principal exposure to gold and copper

• As more rigs return to work, more instrumentation required

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Oil & Gas Update & Strategy

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Financial Strategic Update on Divestment	• FY16 revenuedecreased 34% to $30.4m (FY15: $45.9m) • FY16 normalized EBITDA decreased by 144% to a loss of $6.6m (FY15: a loss of $2.7m)
	• Exiting oil and gas industry • Proceeds will be applied to debt reduction
	• Committed to the strategic closure and sale of oil and gas assets: • AMC Oil & Gas • 30.65% interest in VES • Down hole technology for oil and gas industry • Costs associated with closure and sale of AMC Oil & Gas and the impairment of our interest in VES are largely limited to FY16 – no material impact on FY17

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Leading Technologies

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Industry Opportunities

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• Large resource companies – focused on cost cutting initiatives and increasing efficiencies

• Mining industry requires step-change productivity improvements

• Strengthened digital positioning/IoT enablement

SNL Metals & Mining March, 2016

• Mining industry is traditionally a slow adopter – new technologies are gaining momentum

Note: The SNL Indexed Metals Price measures the relative change of precious and base metals prices, weighted by the percentage of overall exploration spending for each metal as a proxy of the relative importance of each in the industry at a given time.

Number of REFLEX instruments on hire

• First mover advantage

• Growth of instruments despite decline in exploration and development expenditure

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End-to-End Solutions, Differentiator

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• End-to-end solutions across the full mining life cycle – currently, no competitor can do this

• Principally mid-tier and major resource companies

• Diverse commodity mix

• Primary exposure to gold and copper

• Dominant within minerals industry – strong brands and market share

• REFLEX is the leading global provider of downhole instrumentation, data management and data analysis solutions

• AMC is the leading brand of drilling fluids for the global mining industry

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Diversified client base

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Summary & Outlook

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• Minerals business performed well during FY16 – despite challenging conditions

• Sale and closure of AMC Oil & Gas – closure costs and VES impairment largely limited to FY16

• Proceeds from the strategic sale of remaining oil and gas assets will be applied to debt reduction

• 100% focused on core minerals business – strong industry economics and competitive advantages

• Established global business in all the key mining areas of the world

• Leading technologies and unique end-to-end solutions across mining phases – exploration to production

• Dominant market share

• Long standing, high quality client relationships – resource and drilling companies

• Primary exposure to gold and copper

• First mover in cloud solutions, connectivity & geoscience expertise, ahead of the competition

• Sustainable cost reductions being implemented

• Increased activity in 4Q16, particularly gold sector, has continued into FY17

• Well positioned to leverage cycle upswing

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Appendices

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Imdex Board

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Company Snapshot

Corporate	Information
ASX Listed		IMD
Share Price (30 June 2016)	A$	0.21
Issued Shares	m	248.6
Market Cap (30 June 2016)	A$m	52.2
Cash (as at 30 June 2016)	A$m	13
Total Debt (as at 30 June 2016)	A$m	44.2

Share Price Performance

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Share Register – June 2016 Analysis of top 75% of shareholders as at 30 June 2016

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Institutional Investors Directors, Employees & Related Parties Retail & Others

Substantial Shareholders – June 2016	Shares (m)	%
Fidelity Investments	24.8	10.0
Iron Compass Partners	21.2	8.5
Celeste Funds Management	19.9	8.0
Braeside Capital	15.5	6.2
Endeavour Asset Management	13.4	5.4

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Disclaimer

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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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