Slide 1: First Half Results FY2017
First Half Results FY2017 Investor Presentation 29th November 2016 All figures stated in AUD unless otherwise stated 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 activities as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution
Slide 3: ALS Business Streams H1FY17 Revenue
ALS Business Streams LIFE SCIENCES Environmental Food Pharmaceutical Consumer Products INDUSTRIAL Asset Care H1FY17 Tribology Revenue COMMODITIES Geochemistry Mine Site Metallurgy Trade Inspection Coal Oil & Gas 3 | First Half Year Results FY2017 Right Solutions • Right Partner
Slide 4: One ALS – example of end market business focus
One ALS – example of end market business focus How we want our end markets to interact with ALS 4 | First Half Year Results FY2017 Right Solutions • Right Partner
Slide 5: H1 FY17 Financial Summary
H1 FY17 Financial Summary H1FY16 Half Year FY17 ($mn) ($mn) Half year Restructuring Impairment Amortisation Statutory Underlying Underlying & other one off Charges of Intangibles Results items Revenue 712.1 672.0 - - - 672.0 EBITDA 150.4 127.1 - (2.9) - 124.2 Depreciation & amortisation (43.8) (39.4
Slide 6: Interim H1FY17 Dividend
Interim H1FY17 Dividend AUD cents H1FY17 Dividend 50 • 5.5cps Interim Dividend • Payout ratio 54% • Franked to 60% 40 Final Dividend • Record date of 6 December 2016 27 26 • Dividend 30 Reinvestment 20 Plan 20 15 10 11 10 21 6 19 19 13 11 9 7.5 5.5 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 6 | First
Slide 7: Debt Metrics
Debt Metrics Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 STATISTICS Leverage (net debt/ EBITDA; max 3.00) 2.7 2.5 2.7 1.7 1.8 EBITDA interest cover (min 3.75) 8.8 9.1 9.1 7.7 7.7 BALANCE SHEET MEASURES Total Equity (AUD mn) 1445 1228 1254 1186 1189 Net Debt (AUD mn) 787 762 833 438 434 Debt Denomination Cash
Slide 8: Cash Flow
Cash Flow H1FY16 H1FY17 Half year AUD mn AUD mn Underlying operating profit (EBIT) 106.6 87.7 Depreciation & Amortisation 43.8 39.4 Working capital (33.7) (10.2) CAPEX (36.9) (28.3) Other(1) 2.7 3.4 Free cash flow 82.5 92.0 Acquisitions (8.3) (20.9) Dividends paid (41.3) (30.2) Borrowings - movement
Slide 9: ALS global locations – a strategic asset
ALS global locations – a strategic asset Life Sciences Industrial Commodities REVENUE 9 | First Half Year Results FY2017 Right Solutions • Right Partner
Slide 10: Acquisition pipeline
Acquisition pipeline 10 | First Half Year Results FY2017 Right Solutions • Right Partner
Slide 11: Life Sciences Business Streams Overview
Life Sciences Business Streams OVERVIEW Environmental Food • Revenue growth • Margin improvement in Asia, • Achieved revenue growth (in AUD) Australia and Middle East of 9% pcp Asia (+17%), • USA improved revenue and margin Influenced by UK impact of Australia (+4%), (+221 bps) weaker British Pound
Slide 12: Life Sciences Business Streams EBITDA %
Life Sciences Business Streams EBITDA % Strong Severn Trent Labs acquisition acquired Feb-13 Food Safety geographical reach to record ACQUISITION JOURNEY expand further 18% Remediation contracts in South America 16% 14% Focus on leveraging Hub & Spoke model 12% 10% OUTLOOK 8% Global LIMS rollout con
Slide 13: Food Strategy – the journey continues
Food Strategy – the journey continues 13 | First Half Year Results FY2017 Right Solutions • Right Partner
Slide 14: Commodity Business Streams Overview
Commodity Business Streams OVERVIEW Geochemistry Metallurgy Inspection Coal • Sample volumes • Revenue down • Impacted by • Revenue down 10% up 13% pcp 34% pcp weaker GBP pcp • Contribution • Marginally • Slowdown in • Contribution margin 23.2% profitable African work margin up 76 bps versus 21.2% p
Slide 15: Commodity Business Streams Outlook
Commodity Business Streams Geochemistry markets growing strongly consistently through the season Geochemical sample volume up 16% FYTD pcp currently, and growth expected to be maintained Metallurgy activity starting to improve Stronger demand for high end services – hyperspectral scanning, surface g
Slide 16: Geochemical markets recovering
Geochemical markets recovering ALS Global Mineral Sample Flow (two week growth trend) value strong DOLLARS sample flow mine site growth being maintained …..but the mix is biased to late stage through the brown field grassroots price season….. generic innovative SERVICE 16 | First Half Year Results F
Slide 17: Geochemical markets recovering
Geochemical markets recovering Eastern Canada West Africa South America Australia 17 | First Half Year Results FY2017 Right Solutions • Right Partner
Slide 18: The Hub and Spoke Model in Action
The Hub and Spoke Model in Action • global operating control • continental scope • scalable spokes • capable hubs • reduced quality risk • focused capabilities 18 | First Half Year Results FY2017 Right Solutions • Right Partner
Slide 19: Industrial Business Streams Overview
Industrial Business Streams OVERVIEW Asset Care Tribology • Strong power generation outage programs • Softer first half in USA • LNG projects transitioning to maintenance programs • Significant contract wins • Maverick in USA fully integrated in Canada • Strong investment in new technologies to supp
Slide 20: Industrial Business Streams Tribology Revenue
Industrial Business Streams 27 Tribology revenue Well positioned to support LNG 24 growth maintenance programs in Australia 21 Expected growth in downstream markets 18 in Gulf States (USA) Revenue (AUD$mn) 15 Revenue growth in civil construction 12 OUTLOOK and water infrastructure (e.g. 9 Sydney Wat
Slide 21: Oil & Gas Division
Oil & Gas Division Underlying H1 FY17 H1 FY16 Change results (AUD) Revenue $47.3mn $86.2mn -45% EBITDA -$6.3mn $9.3mn - EBIT -$13.3mn -$0.3mn - EBIT Margin -28.1% -0.3% 21 | First Half Year Results FY2017 Right Solutions • Right Partner
Slide 22: Second Half FY17 guidance (excl. Oil & Gas)
Second Half FY17 guidance (excl. Oil & Gas) ALS expects that underlying NPAT (excl. Oil & Gas) NPAT (AUD$mn) for the second half of FY2017 will be in the range of AUD $50 million to AUD $60 million 70 60 50 40 30 20 10 0 H1 FY16 H2 FY16 H1 FY17 H2 FY17 22 | First Half Year Results FY2017 Right Solut