Als Ltd. · ASX:ALQ
Als — Non-Deal Roadshow (January 2015)
25 slides from Als's roadshow presentation, Jan 20, 2015
Slide 1: Europe Roadshow January 2015
For personal use only Europe Roadshow January 2015 All financials are in Australian dollars unless otherwise noted 1 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only • This presentation has been prepared by ALS Limited, (ALS or the Company). It contains general information about the Company’s activities as at the date of the presentation. It is information given in summary form and does not purport to be comp
Slide 3: Company Profile
Company Profile ALS Limited (ASX:ALQ) is an ASX 100 company that provides professional technical services to the global Metals & Mining, Life Sciences, Oil & Gas, and Industrial sectors throughout the For personal use only world. By Market Capitalisation, ALS is the 5th largest TIC company in the wo
Slide 4: September 2014 Half Year Summary
September 2014 Half Year Summary H1 FY14 For personal use only ($mn) H1 FY15 ($mn) Discontinued Restructuring Amortisation half year Underlying1 Underlying1 Operations & Impairment Costs of Intangibles Revenue 684.6 710.3 58.8 - - EBITDA 181.4 149.8 (0.6) (2.2) - Depreciation & amortisation (34.6) (
Slide 5: Third Quarter (Dec-14) Performance
Third Quarter (Dec-14) Performance ASX Release – 24th November 2014 For personal use only “After tax group net profit for the December 2014 quarter is expected to be approximately $40 million. This represents an improvement in performance over each of the first two quarters ($30.0 million and $37.7
Slide 6: Third Quarter (underlying) Divisional Performance
Third Quarter (underlying) Divisional Performance Life Sciences Division Minerals Division For personal use only Q3 FY15 Q3 FY14 Change Q3 FY15 Q3 FY14 Change Revenue $148mn $141mn +5% Revenue $99mn $101mn -2% EBITDA $38mn $34mn +13% EBITDA $30mn $31mn -5% EBIT $31mn $26mn +15% EBIT $24mn $25mn -3%
Slide 7: Revenue by Region by Division (9mths FY2015)
Revenue by Region by Division (9mths FY2015) For personal use only 7 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 8: Laboratory revenue - journey over the last decade?
Laboratory revenue - journey over the last decade? FY2015(f) Revenue has approximately tripled every five years For personal use only revenue with significant diversification of market sectors $1400mn FY2010 revenue $565mn FY2005 revenue $156mn 34% 30% 43% 66% 36% 19% Environmental Food/Pharma Consu
Slide 9: Laboratory revenue - journey over the last decade?
Laboratory revenue - journey over the last decade? FY2015(f) For personal use only Significant geographical diversification revenue $1400mn FY2010 revenue $565mn FY2005 revenue $156mn Africa Asia Australia Europe Middle East North America South America 9 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 10: ALS Revenue History
ALS Revenue History For personal use only Reservoir Group acquired-- 1,400 1,200 AUD$ millions 1,000 800 GFC 600 PearlStreet Ltd acquired-- 400 200 - FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15(F) Life Sciences Energy Industrial Minerals 10 RIGHT SOLUTIONS | RIGHT PART
Slide 11: Global Location Map – genuine global footprint
Global Location Map – genuine global footprint For personal use only 11 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 12: CAPEX and Depreciation
CAPEX and Depreciation For personal use only 25 CAPEX remains tightly controlled in line with current operating environment BUT assets maintained in prime condition for inevitable market upswing 20 CAPEX ($ million) 15 10 5 0 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Quarter Approved CAPEX (e
Slide 13: Cash Flow and Funding
Cash Flow and Funding Sep-14 Sep-13 Oct-14 * Mar-14 For personal use only Cash Flow Funding statistics EBITDA (excl Reward write-down ) $149mn $179mn Gearing ratio Comfort 45% 34.2% 33.9% Operating cash flow $133mn $147mn Leverage (net debt / EBITDA) Max 3.00 2.5 2.2 EBITDA interest cover Min 3.75 9
Slide 14: Life Sciences Division – market overview
Life Sciences Division* – market overview For personal use only Environmental Food Pharma & Biotech global market estimated at US$ 5bn global market estimated at US$ 4bn Global market estimated at US$ 6bn ALS – mid sized player - but in the top 10 ALS - global market leader globally ALS – small play
Slide 15: Life Sciences Division
Life Sciences Division Life Sciences Revenue Life Sciences - Europe For personal use only 600 30% 30 13% organic growth 35% millions millions Revenue per Quarter (Euro) 500 25% 25 30% Revenue per Annum ($) EBITDA* margin EBITDA* margin 400 20% 20 25% 300 15% 15 20% 200 10% 10 15% 100 5% 5 10% 0 0% 0
Slide 16: Geochemical Markets – global perspective
Geochemical Markets – global perspective For personal use only • Global exploration budgets down 47% from actual spend in CY2012 • Commodity mix and geographical activity consistent with previous years • Focus on minesite and late stage at the expense of grassroots Source: SNL Metals and Mining repo
Slide 17: Exploration spend – the future
Exploration spend – the future For personal use only 17 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 18: Discoveries Versus Spend
Discoveries Versus Spend For personal use only 18 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 19: Hub and Spoke – unique global model
Hub and Spoke – unique global model North American Hub & Spoke Model for Geochemical Services For personal use only Overview • global LIMS • single global database • standardized methods • standardized equipment • standardized quality • logistics tracking Overflow from • South America efficiency • A
Slide 20: Geochemical Market – ALS perspective
Geochemical Market – ALS perspective For personal use only ? • CY2012 – activity stalled halfway through the field season as the industry went into decline • CY2013 – sample flow decrease through most of the field season – underlying market decline • CY2014 – sample flow increasing through the field
Slide 21: ALS Oil & Gas – financial journey
ALS Oil & Gas – financial journey 25 40% Revenue USD$ Millions For personal use only ALS ownership 20 32% ALS Oil & Gas EBITDA margin 15 24% 10 16% 5 8% 0 0% Mar-12 Jul-14 Jan-10 Mar-10 May-10 Jul-10 Mar-11 Sep-10 Nov-10 Jan-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Ma
Slide 22: ALS Oil & Gas – operational journey
ALS Oil & Gas – operational journey • All business stream (coring, surface logging, specialty well services, laboratories, down For personal use only hole tools) global managers relocated to Houston Texas – effective September 2014 • Reservoir Group Corporate office in Aberdeen closed – effective De
Slide 23: Asset Care Market Analysis – Australia
Asset Care Market Analysis – Australia $350 Source: Company estimates For personal use only $300 Welding & Fabrication Mining $250 O&G $ million Power $200 $150 $100 $50 ALS Market Share 42% $0 Total Australian ALS Revenue Market Sector Driver Market Demand Power Production − Oil & Gas Construction
Slide 24: What makes ALS different
What makes ALS different • Assets For personal use only • State of the art laboratories • High end technical services • Unique service offerings • Operating Model • Hub and spoke • Centres of Excellence • Systems and standards • “Decentralised” laboratory Vs many laboratories • Low cost base • Clien
Slide 25: What makes ALS different
What makes ALS different For personal use only • Management Information Systems (MIS) • LIMS • GEMS – Geochemical • Coal8 – Coal • EnviroLIMS – Environmental • SAM – Tribology • ELMS – Food • OSPrey – Asset Care • Pipeline – Oil & Gas • Webview – Management Interface • WebTrieveTM • Other Portals •