Slide 1: Business Update – USPP Conference Miami
For personal use only Business Update USPP Conference – Miami Luis Damasceno – Group CFO Michael Williams – Group Finance Director & Treasurer 23 - 25 January 2019 Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER – This presentation has been prepared by ALS Limited, (ALS or the Company). It contains general information about the Company’s For personal use only activities as at the date of the presentation. It is information given in summary form and does not purport to be comp
Slide 3: ALS Segments and Business Streams
ALS Segments and Business Streams Revenue split For personal use only COMMODITIES & LIFE SCIENCES INDUSTRIAL Environmental Geochemistry Food Metallurgy Pharmaceutical Trade Inspection Consumer Products Coal Asset Care Tribology 3 2019 USPP Conference – Investor Update Right Solutions • Right Partner
Slide 4: Geographic Revenue and People Split
Geographic Revenue and People Split For personal use only $424m EMENA 4.200 staff $363m NORTH ASIA AMERICA 1.400 staff 3.200 staff $90m AFRICA $47m $103m 1.000 staff SOUTH AMERICA 1.700 staff $468m AUSTRALIA & NZ 3.000 staff 70+ 350+ 40+ 14,000+ 20+ million $1.6+ billion Countries Locations Years of
Slide 5: Strategic Priorities Unchanged
Strategic Priorities Unchanged For personal use only Strategic priorities Focus (Testing as our Core) Brand recognition Operational excellence One ALS Client focused Leverage services across business streams Existing market share growth Target: non-resource Balanced business to be > 50% New business
Slide 6: Strategic Roadmap
Strategic Roadmap For personal use only Organic growth projects… +5% of Integrated to cost based revenues operational model Technology and efficiency Procurement leverage projects Strong cash conversion Focus on ROCE Improve earnings per share Capital management Capital strategy An
Slide 7: Half Year FY19 Financial Summary
Half Year FY19 Financial Summary Underlying performance from continuing operations NPAT (guidance exceeded) For personal use only $93.3m NPAT growth 29.8% EBITDA growth 21.9% Revenue growth 15.2% EPS growth 33.6% Share buyback progress $121.7m Full year guidance NPAT $170m to $175m 7 2019 USPP Confe
Slide 8: Cash Flow
Cash Flow H1 FY18 H1 FY19 Half year AUD mn AUD mn Underlying operating profit (EBIT) 110.5 141.4 For personal use only Depreciation & Amortisation 38.1 35.8 24.6 million EBITDA 148.6 177.2 Working capital (50.3) (43.7) FREE CASH FLOW CAPEX (39.2) (45.8) Other 4.3 0.3 Free cash flow 63.4 88.0 CAPEX A
Slide 9: Capital Management
Capital management For personal use only Share Buyback Dividend Buyback Progress Balance Sheet Program Buyback extended Half Year 17.5 million Company retains strong for 12 months to underlying balance sheet and flexibility shares to pursue opportunities a total of payout ratio (representing
Slide 10: Life Sciences. Overview
Life Sciences. Overview For personal use only Environmental Food & Pharma Revenue growth (in AUD) Margin improvements in Revenue growth (in AUD) 17% 10% Europe and Canada offset by Acquisition of Truesdail (US) and declines in USA and Asia Ongoing cost controls and Labfor (Brazil) increase
Slide 11: Life Sciences. Strategy
Life Sciences. Strategy For personal use only Continued focus on bolt on acquisitions for food business ($17m spent YTD). Solid pipeline Food strategy on target to deliver $200m in revenue this fiscal year New unique service offerings to provide market differentiator Global strategy now focu
Slide 12: Food/Pharmaceutical growth story
5 year growth story – Food/Pharmaceutical LABFOR and For personal use only Revenue AUD$ millions Truesdail 50 Marshfield 40 AlControl ALS Microlab ControlVet Food/Pharma 30 20 10 0 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Jun-14 Sep-14 Jun-15 Sep-15 Jun-16 Sep-16 Jun-17
Slide 13: Commodities. Overview
Commodities. Overview For personal use only Geochemistry Metallurgy Inspection Coal Sample volumes Revenue up 63% pcp Revenue up 33% pcp Revenue up 13% pcp up 14% pcp Contribution margin Contribution margin up Contribution margin up Market share up from 6% to 22% from 18% to 30% from
Slide 14: Commodities. Outlook
Commodities. Outlook For personal use only Geochemistry expects current market conditions to continue with growth levels on pcp basis to slightly moderate Geochemistry market share gains to translate into improved FY19 performance Metallurgy experiencing strong increases in activity in traditi
Slide 15: Geochemistry
Geochemistry For personal use only H1 FY19 Highlights Strategic Focus Outlook Financial performance Innovative Productivity Continued sample volume growth in H2 FY19, circa 8-10% Growth in all regions Technical Development Mine site start ups (awarded) Increased sample volumes Cost b
Slide 16: Geochemistry – The Recovery continues
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 For personal use only Jan-06 16 0% -50% -40% -30% -20% -10% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apr-06 Jan-06 Jul-06 Apr-06 2006 Oct-06 Jul-06 Jan-07 2006 Oct-06 Apr-07 Jan-07 Jul-07 Apr-07 2007 Oct-07 Jul-07 Jan-08 2007 Oct-07 Ap
Slide 17: Geochemistry – Market
Geochemistry – Market For personal use only Exploration Dollars – AUST Growth pcp (excl. Iron Ore and Coal) (i.e. quarter v equivalent quarter the previous year) Exploration budgets by Grassroots 2,509.8M (26.1%) stage of development, 2018 (US$M) Late stage 3,769.7M (39.2%) (1.651 companies budgetin
Slide 18: Global Mineral Exploration Market
Global Mineral Exploration Market For personal use only Market Activity Analytical Spend Drivers 18% • Global spend on exploration activities continues to rebound across a broad base of commodities both traditional and non- traditional (i.e. rare earths) • ALS’ focus on systems, productivity and inn
Slide 19: Industrial. Overview
Industrial. Overview For personal use only Asset Care Tribology • Maintenance contracts wins in Australia generate • Revenue growth delivered in all regions – Australasia, increased revenues albeit this work is being North America and South America and strong undertaken in some cases at lower margin
Slide 20: Industrial. Outlook
Industrial. Outlook For personal use only Well positioned to support mining, oil & gas and power generation maintenance programs in Australia Construction projects and recently introduced maintenance-related service lines in the US to drive organic growth Increasing client interest in online m
Slide 21: Next generation TIC, Innovation and Technology
Next generation TIC, Innovation and Technology For personal use only Robotics Client Software Platforms Artificial Intelligence and Deep Learning Deeper Supply Chain Engagement Global ERP 21 2019 USPP Conference – Investor Update Right Solutions • Right Partner
Slide 22: H1 FY2019 results – Financial appendix
For personal use only H1 FY2019 results Financial appendix Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner
Slide 23: Half Year FY19 Financial Summary
Half Year FY19 Financial Summary For personal use only FY18** Half Year FY19 ($mn) ($mn) Half Year Divestment & Restructuring Discontinued Amortisation Statutory Underlying* Underlying* Impairment & other one Operations of Intangibles Results Charges off items Revenue 716.8 826.1 4.0 - - - 830.1 EBI
Slide 24: Debt Metrics
Debt Metrics For personal use only Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 STATISTICS Gearing Ratio (comfort 45%) 38% 27% 29% 31% 35% Leverage (net debt/ EBITDA; max 3.00) 2.5 1.7 1.9 1.7 1.8 EBITDA interest cover (min 3.75) 9.1 7.7 9.2 11.3 11.6 BALANCE SHEET MEASURES Total Equity (AUD mn) 1228 1186 118
Slide 25: Questions & Discussion
For personal use only ? Questions & Discussion 25 2019 USPP Conference – Investor Update Right Solutions • Right Partner