Slide 1: Morgans Queensland Conference 2017
For personal use only Morgans Queensland Conference 2017 Brisbane 11 October 2017 Richard Stephens – Chief Financial Officer, ALS Limited 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: Business streams
Business streams For personal use only 3 | 2017 Morgans Conference Right Solutions • Right Partner
Slide 4: Business stream strategy
Business stream strategy For personal use only Grow scalable Invest in businesses New Core through organic (Testing) and geographic Business expansion Streams Divest or close Improve all non-core Current (non-testing) Performance Businesses 4 | 2017 Morgans Conference Right Solutions • Right Partner
Slide 5: Vision 2022: Our Everest
Vision 2022: Our Everest (excluding significant acquisitions) For personal use only Assumes no material adverse change in market conditions 5 | 2017 Morgans Conference Right Solutions • Right Partner
Slide 6: Strategic priorities
Strategic priorities Strategic priorities Focus (Testing as our Core) For personal use only 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 streams o
Slide 7: Acquisitions completed during FY2018 to date
Acquisitions completed during FY2018 to date For personal use only Total investment $30 m FOOD TRIBOLOGY PHARMACEUTICAL Marshfield (USA) Oilcheck (Brazil) Mikrolab / Toxicon (Sweden)* * completed since end of September half-year 7 | 2017 Morgans Conference Right Solutions • Right Partner
Slide 8: Global operations map
Global operations map For personal use only 8 | 2017 Morgans Conference Right Solutions • Right Partner
Slide 9: Debt Metrics – March 2017
Debt Metrics – March 2017 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Debt Denomination For personal use only STATISTICS Gearing Ratio (comfort 45%) 29% 34% 38% 27% 29% CAD Leverage (net debt/ EBITDA; max 3.00) 1.0 2.2 2.5 1.7 2.1 14% EBITDA interest cover (min 3.75) 21.0 12.2 9.1 7.7 8.5 BALANCE SHEET MEASU
Slide 10: Debt Facilities – September 2017 following bank debt re-financing
Debt Facilities – September 2017 following bank debt re-financing AUD$ DEBT MATURITY & CAPACITY PROFILE million For personal use only as at 30 September 2017 350 Long Term Debt - USPP Notes Debt Denomination: 300 Bank Debt - Undrawn Capacity 31.2% 31.4% 250 % Total Debt Capacity CAD 25.8% 14% 200 15
Slide 11: Cash flow FY17
Cash flow FY17 For personal use only Full year FY16 AUD mn FY17 AUD mn Underlying operating profit (EBIT) 177.9 171.6 Depreciation & Amortisation 86.4 78.8 Working capital (6.3) 13.8 CAPEX (73.7) (58.7) Other 5.1 3.5 Free cash flow 189.4 209.0 Acquisitions (22.8) (106.4) Dividends paid (72.0) (58.0)
Slide 12: Full Year FY17 Financial summary
Full Year FY17 Financial summary FY16 ($mn) Full Year FY17 ($mn) For personal use only Full Year Discontinued Impairment Restructuring & Amortisation of Statutory Underlying* Underlying* Operations Charges other one off items Intangibles Results Revenue 1,239.0 1,272.3 93.3 - - - 1,365.6 EBITDA 258.
Slide 13: Average weekly sample flow
For personal use only DELTA (last 2 weeks sample flow Average Weekly Sample Flow Versus same 2 weeks last year) Jan-06 Apr-06 0% 100% -50% -40% -30% -20% -10% 10% 20% 30% 40% 50% 60% 70% 80% 90% Jul-06 2006 Jan-06 Oct-06 Apr-06 Jan-07 Jul-06 2006 Apr-07 Oct-06 Jan-07 Jul-07 2007 Apr-07 Oct-07 Jul-07
Slide 14: Geochemical markets – junior / intermediate capital raisings, gold drilling
Geochemical markets – junior / intermediate capital raisings, gold drilling Gold Exploration Drilling Activity For personal use only distribution by region 14 | 2017 Morgans Conference Right Solutions • Right Partner
Slide 15: Margin Strong at the Bottom of the Commodities Cycle
Margin Strong at the Bottom of the Commodities Cycle For personal use only 1,500 36% EBITDA Margin ALS Revenue AUD$ million 1,200 30% Core Labs SGS 900 ALS 24% Exova Bureau Veritas 600 18% Intertek EBITDA Margin for Core Labs, SGS, Intertek, Eurofins Bureau Veritas, Eurofins, Applus, & Exova is for
Slide 16: Safety Performance
Safety Performance Group LTIFR For personal use only (as at March 31) 2017 1.1 Historical 2016 1.2 Record 2015 Low 2.1 Injury 2014 1.8 Rates 2013 2.3 2012 3 2011 2.8 2010 2.4 Key Performance Indicators 2009 4 • ALS Group LTIFR of 1.1 is a historical all time low. 2008 6 • Overall score of 90% for PP
Slide 17: Sustainability Program
Sustainability Program For personal use only 17 | 2017 Morgans Conference Right Solutions • Right Partner
Slide 18: Final H2FY17 Dividend
Final H2FY17 Dividend AUD For personal use only cents H2FY17 Dividend 50 Interim Dividend Final Dividend • 8.0 cps • Payout ratio 60% (full year) 40 • Franked to 40% • Paid on 3 July 2017 27 • Dividend Reinvestment 26 30 Plan 20 20 15 10 11 10 21 6 19 19 8 13 11 9 7.5 5.5 0 FY10 FY11 FY12 FY13 FY14
Slide 19: ALS Segments and Business Streams
ALS Segments and Business Streams For personal use only Environmental LIFE SCIENCES Food Pharmaceutical Consumer Products INDUSTRIAL Asset Care Full Year Tribology Revenue FY17 COMMODITIES Geochemistry Metallurgy Trade Inspection Coal Oil & Gas (Laboratories) 19 | 2017 Morgans Conference Right Solut