Slide 1: Our new 5-year vision 2023-2027
Our new 5-year vision 2023 - 2027 13 September 2022 Sydney © Copyright 2022 | ALS Limited 1
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 o
Slide 3: Today's agenda
Today’s agenda Raj Naran ALS – market leader in TIC Industry Managing Director & Chief Executive Officer New 5-year strategy Luis Damasceno Chief Financial Officer Our financial and performance framework Bruce McDonald Executive General Manager, Staying ahead of the curve Minerals Tim Kilmister Exec
Slide 4: ALS – A market leader in the TIC industry with a new 5-year strategy
ALS – A market leader in the TIC industry with a new 5-year strategy Raj Naran Managing Director and CEO © Copyright 2022 | ALS Limited 4
Slide 5: ALS 5-year strategy: key messages
Key messages Key ALSmessages 5-year strategy: key messages Introduction 1 2 3 4 Focused on core Underpinned by Leaders in Well positioned 5-year strategy business, strong growth technology and to manage exposed to high drivers in our innovation inflation and growth and end-markets through lower econ
Slide 6: Our vision
OUR VISION To be the global leader in the discipline of scientific analysis in pursuit of a better world for all. right solutions. $ ~ right partner. OUR MISSION ALS is using the power of testing to solve complex challenges. With a passion for science, we serve clients with data-driven insights for
Slide 7: ALS executive team
ALS executive team Management Introduction 5-year strategy Raj Naran Luis Damasceno Bruce McDonald Andreas Jonsson Tim Kilmister Grace Coiley Financials Managing Director & Chief Chief Financial Officer Executive General Manager, Executive General Manager, Executive General Manager, Executive Genera
Slide 8: An efficient and lean organisation
An efficient and lean organisation New Leadership Introduction • Exceptional Global executive team — Re-aligned to portfolio 5-year strategy — Global focus on growth — Committed to delivery of strategy Financials — Originate and support M&A / capex investment opportunities Commodities • Our people s
Slide 9: Our near-term sustainability commitments
Our near-term sustainability commitments ACHIEVING CLIMATE NEUTRAL* OPERATIONS IN FY23 * Scope 1 and 2 emissions right solutions. right partner. © Copyright 2022 | ALS Limited 9
Slide 10: Our sustainability strategy
Our sustainability strategy Introduction Our sustainability pillars: People Environment Society Governance 5-year strategy Sustainability Our Guiding Principles: Deliver world-class health Minimise our environmental Make a positive contribution Operate ethically and and safety outcomes, and footprin
Slide 11: Our CSR ratings
Our CSR ratings Introduction 5-year strategy Sustainability FTSE ESG Leading Status Rating of 3.9 Rating for ESG Financials ahead of Reporting Industry Commodities Average Food & Pharma Achieved AA Continue to rating 4 years improve on Environmental in a row a number of measures Why us / Q&A right s
Slide 12: ALS committed to building a better world
ALS committed to building a better world Introduction Focus on our PEOPLE FY2027 Focus on our PLANET FY2027 5-year strategy Sustainability Maintain our Industry Leading We will be in the Maintain carbon neutrality for We will have reduced our Safety Performance top quartile of our peers our scope 1
Slide 13: Our scientific analysis supports our clients' sustainability outcomes
Our scientific analysis supports our clients to achieve improved sustainability outcomes Introduction Commodities Environment Food & Pharma 5-year strategy Sustainability Our scientific analysis supports Our involvement in the Our involvement in food & our mining clients to achieve environmental ind
Slide 14: Our vision for 2027
Our vision for 2027 Introduction FINANCIAL Vision for 2027 5-year strategy Pillar I: Innovation & Financials Technology CLIENTS Commodities Pillar II: Growth INTERNAL Food & Pharma PROCESSES Pillar III: ALS Way Environmental ORGANISATIONAL Pillar IV: CAPABILITIES Why us / Q&A Client Centricity right
Slide 15: Our new 5-year financial targets
Our new 5-year financial targets Introduction Increase revenue Financial targets 5-year strategy • Total FY27 revenues of $3.3B, +50% (FY22 $2.2B) Financials Improve profitability Commodities • Total FY27 EBIT of $0.6B, +55% (FY22 $0.4B) Food & Pharma • Group margin above 19% Improve total sharehold
Slide 16: Our enablers to achieve our vision for 2027
Our enablers to achieve our vision for 2027 Introduction 5-year strategy Enablers Client Financials Market CLIENTS Reputation experience share & retention Commodities INTERNAL Food & Pharma Portfolio Operational Client Sales & Innovation & Sustainability PROCESSES optimisation improvements service m
Slide 17: Strategic themes supporting our vision
Strategic themes supporting our vision Introduction 5-year strategy Themes Pillar I: Integrated and Strong culture of Advanced data management and Innovation & consolidated curiosity and analytics expertise contributes Financials Technology systems globally innovation materially to our service value
Slide 18: Industries we serve
Industries we serve Drug Release & Introduction Food, Beverage, Business streams Manufacturing Agriculture & Assurance Feed Quality Commodity 5-year strategy Industries Inspection Air, Water, Personal Care Soil & Waste Product Safety Environmental Testing & Claims Financials Commodities Food Constru
Slide 19: Key end-markets to outgrow the large potential TIC market
Key end-markets to outgrow the large potential TIC market Introduction TIC market potential: Our key end-markets1 exposure to Industry trends 5-year strategy US$269B by 20271 outpace overall TIC market Testing market remains largest: Exposed to largest and fastest Financials growing end-markets >4%
Slide 20: Strategic plan aligned to industry megatrends
Strategic plan aligned to industry megatrends Introduction Regulation and Technology Sustainability Digitalisation Energy Transition outsourcing Development Services Demand Technology (Renewables) Industry trends 5-year strategy Drivers: Drivers: Drivers: Drivers: Drivers: • More health regulations
Slide 21: Our financial and performance framework
Our financial and performance framework Luis Damasceno Chief Financial Officer © Copyright 2022 | ALS Limited 21
Slide 22: Exceeded our 5-year strategic plan (FY17-22)
Exceeded our 5-year strategic plan (FY17-22) Targets: Achievements: Introduction ✓ Zero harm to our people 43% improvement 5-year strategy in injury frequency rates vs FY17 ✓ $2 billion in revenue $2.2 billion 9.7% 5-Yr review Financials Mid-single digit organic growth +73% vs FY17 5-year Organic CA
Slide 23: Improved diversity of earnings within the portfolio
Improved diversity of earnings within the portfolio Introduction FY17 vs FY22 portfolio revenue contribution FY17 vs F22 regional revenue distribution In % of Group revenue • Over 50% of revenue is In % of Group revenue recurring, supported by 5-year strategy future growth within Life Sciences portf
Slide 24: Impressive revenue growth and industry leading profitability
Impressive revenue growth and industry leading profitability Introduction Organic revenue growth2 • Strong performing revenue growth relative to 5-year CAGR (FY17-22) Peers1 and improvement in underlying EBIT 20% 5-year strategy margin, without benefit from temporary 15% Benefit from COVID-19 earnin
Slide 25: Market leading share price performance
Market leading share price performance Introduction 5-year and YTD share price performance: ALS vs TIC Peers1 | Rebased to 100 2017-2022 strategy period YTD2 320 5-year strategy 270 5-Yr review Financials Covid-19 impact 220 +99% 170 Commodities 120 +21% Food & Pharma 70 Apr-17 Aug-17 Dec-17 Apr-18
Slide 26: Strong revenue ambition
Strong revenue ambition Introduction FY23-27 ambitions: Revenue evolution ($B) • Organic CAGR of ~6% (Life Sciences ~7%) FY23-FY27 CAGR 5-year strategy FY17-FY22 CAGR 3.3 Total: 11.6% Total: 8.4% • Scope CAGR of ~3% (Life Sciences ~7%) Organic: 9.7% Scope: 2.5% 0.5 • Growth ambitions supported by: F
Slide 27: Successful track record of acquisitions
Successful track record of acquisitions Introduction 17 acquisitions $264 million1 revenue Acquisition performance ACHIEVEMENTS: completed acquired over 2017-20222 according to business plan 5-year strategy Scope revenue acquired1 distribution by region and division Scope growth Finland Financials G
Slide 28: FY23 - FY27 acquisition strategy
FY23 - FY27 acquisition strategy Introduction Strategic approach: FY23 – FY27 • Focus on Life Sciences, particularly in the Food and 5-year strategy Pharmaceutical markets ~$1B • Commodity acquisitions targeting new technologies and data analytics over Scope growth planned Financials • Target acquis
Slide 29: Underlying EBIT margin retention strategy
Underlying EBIT margin retention strategy Introduction Underlying Group EBIT margin improvement journey • Industry leading Group margin supported by: and FY27 target — Portfolio optimisation 5-year strategy — Strengthening of procurement processes and Floor of practices 19% — Continuous focus on tec
Slide 30: Return on Capital Employed improvement journey
Return on Capital Employed improvement journey Introduction Return on Capital Employed (incl. intangibles)* journey • Significant improvement in ROCE achieved over and FY27 target last 5 years supported by: 5-year strategy — Expansion of operating margin +780bps — Strong cash conversion Margin journ
Slide 31: Capital management framework
Capital management framework Introduction Cash conversion >90% Strong Cash Flow Continuous improvement in working capital management (processes, systems, and organisation) 5-year strategy Distributions to shareholders Target payout ratio of 50% to 60% Underlying NPAT Growing a Capital allocation Cap
Slide 32: Staying ahead of the curve
Staying ahead of the curve Bruce McDonald Executive General Manager, Minerals © Copyright 2022 | ALS Limited 32
Slide 33: Megatrends and priorities in Commodities
Megatrends and priorities in Commodities Introduction Electrification and growth of Staying ahead of the curve alternative energy • Most trusted provider of geochemical data 5-year strategy • Industry-leading method sensitivity and performance Technology evolution • Largest and best-distributed netw
Slide 34: Copper demand underpinned by energy transition
Copper demand underpinned by energy transition Introduction • Copper is essential to all energy transition plans Global copper market balance1 • Technologies critical to energy transition require more 5-year strategy copper than conventional fossil-based counterparts • Copper demand from energy tran
Slide 35: Range of metals important for future clean energy technologies
Range of metals important for future clean energy technologies Critical minerals needs for clean energy technologies • Clean energy technologies require a wide range of minerals and metals Cu Co Ni Li REEs Cr Zn PGM Al • Rapid deployment of clean energy technologies Solar PV implies significant incr
Slide 36: Technology and innovation
Technology and innovation Introduction • Early engagement with instrument supplier design performance requirements and prototype testing 5-year strategy • Automation of internal process-flow steps to improve efficiency and reduce waste • Introduction of simple pre-analytical tests to Financials dete
Slide 37: Our core and new services
Our core and new services Introduction Exploration Mine site Consulting and Sustainability and production technology assurance 5-year strategy • Grow and consolidate market • Growth focus area • Machine learning to assist clients • Onsite assurance processes share in processing and integrating aided
Slide 38: Digitisation, digital integration and robotics within Environmental
Digitisation, digital integration and robotics within Environmental Tim Kilmister Executive General Manager, Environmental © Copyright 2022 | ALS Limited 38
Slide 39: Megatrends and priorities in Environmental
Megatrends and priorities in Environmental Introduction MEGATRENDS Priorities • Focus on growth following global reorganisation 5-year strategy Emerging contaminants alignment to market segments — Prioritize three client segments: environmental Financials Infrastructure and consultants, water and in
Slide 40: Digitisation, digital integration and robotics
Digitisation, digital integration and robotics Introduction • Customer centric digital solutions – third party software integration, web portals, mobile applications and website 5-year strategy • Seen as a leader in client data management solutions; agnostic APIs, industry platforms and client side
Slide 41: PFAS case study
PFAS case study Introduction PFAS – persistent, toxic and bio-accumulative contaminant • Wide use dating back to the 1940’s, including; non stick cookware, 5-year strategy stain resistant fabrics and carpets, cosmetics and some fire fighting foams • Detected world wide in water, air and soil Financi
Slide 42: Journey of Life Sciences
Journey of Life Sciences Andreas Jonsson Executive General Manager, Food & Pharmaceutical © Copyright 2022 | ALS Limited 42
Slide 43: Megatrends and priorities in Food and Pharmaceutical
Megatrends and priorities in Food and Pharmaceutical Introduction MEGATRENDS Food Increasing • Expand geographic presence to further 5-year strategy government regulations support global clients New product • Provide services throughout the entire developments Financials (GMOs, packaging) farm to fo
Slide 44: Journey of Life Sciences
Journey of Life Sciences Introduction • Created a life sciences business supported by sustainable Life Science revenue distribution ($M) global market segments underpinned by the main TIC FY12 vs FY17 vs FY22 megatrends 5-year strategy 800 • History of our Life Sciences’ journey 700 $1,146M — Global
Slide 45: Transforming our Pharmaceutical business
Transforming our Pharmaceutical business Introduction • Becoming a global leader through offering complete Large addressable industry solutions from global market 5-year strategy Discovery to Distribution Opportunity for growth above • Expanding network for analytical market rates Financials servi
Slide 46: Nuvisan case study
Nuvisan case study Introduction • The science CRO: Pharmaceutical Value Chain – drug discovery to distribution 1200 highly educated 5-year strategy employees in Germany Basic Drug Pre-clinical Clinical FDA Post approval / Research discovery trials review monitoring and France • Organic growth driven
Slide 47: Continued growth within Food
Continued growth within Food Introduction • Focus on end-market specialisation HRL acquisition: to grow higher margin testing • Expansion into NZ to strengthen 5-year strategy — Upstream client focus, including our position in APAC (major environmental expanded pesticide capabilities and food export
Slide 48: Why invest in ALS
Why invest in ALS Raj Naran Managing Director and CEO © Copyright 2022 | ALS Limited 48
Slide 49: ALS by FY27
ALS by FY27 Introduction Rebalanced Life Sciences Geochemistry Digitalisation and People Sustainability Portfolio Growth Leadership Data Focus 5-year strategy Strong culture of $3B Economic Review of business Organic and inorganic Strengthen our market Standardization of innovation and Contribution
Slide 50: Why invest in us?
Why invest in us? Introduction Supported by regulation, Minimal exposure to 90% cash conversion and Conservatively leveraged outsourcing, ESG, harder to abate industries average $450 million within target gearing digitalisation and FCF p.a. range renewable demands 5-year strategy Positioned to Portf
Slide 51: Questions
Questions © Copyright 2022 | ALS Limited 51
Slide 52: Appendix
Appendix © Copyright 2022 | ALS Limited 52
Slide 53: US$269B global TIC market expected to grow 4% p.a. by 2027
US$269B global TIC market expected to grow 4% p.a. by 2027 • Total market expected to grow to US$269B by Market size by service offering and growth 2027, from US$221B in 2022 (2022 to 2027, US$B)1 • ALS highest exposure is to testing services CAGR: 4.0% 3.6% 5.1% 2.4% • Market growth supported by: —
Slide 54: TIC market size and growth by region
TIC market size and growth by region Market size by region (2022 to 2027, US$B)1 99.1 North America Europe 29% market share 25% market share 79.5 77.8 3% CAGR 4% CAGR 67.1 65.9 54.9 Rest of World APAC 9% market share 37% market share 25.0 21.2 3% CAGR 4% CAGR APAC Europe North RoW Industry trends Ap
Slide 55: In-house testing vs. outsourcing trend
In-house testing vs. outsourcing trend • Market for outsourced services to grow at an In-house vs outsourced, market size accelerating rate, with growth supported by: (2022 to 2027, US$B)1 — Manufacturing companies and privatisation of CAGR: 3.6% 4.3% state-owned laboratories — Client’s achieving co
Slide 56: Strong growth within our focused end-markets
Strong growth within our focused end-markets Market size by industry (US$B)1 • ALS exposed to the largest and fastest growing end- 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 markets Consumer goods & retail 4.6% Medical & life sciences 5.3% • Medical and life sciences Agriculture & food 4.6% projecte
Slide 57: Pharmaceutical end-markets
Pharmaceutical end-markets Key demand drivers Large pharmaceutical R&D spend (US$B)1 • Expansion of new drugs 133 123 • R&D outsourcing 92 97 108 110 83 82 87 86 • Regulatory bodies more demanding to improve safety • Increased complexity of testing • Spend per trial is increasing 2012 2013 2014 2015
Slide 58: Food end-markets
Food end-markets Key demand drivers Global food retail value (US$B)1 • Food supply disruptions 887 • New product developments (GMOs, packaging) 667 471 525 • Outsourcing 370 406 179 183 189 • Increased Government regulation • Consumer demand and awareness for quality and APAC Europe Americas 2008 20
Slide 59: Environmental end-markets
Environmental end-markets Key demand drivers Construction & infrastructure and public sector • Increasing regulatory changes testing market size (US$B)1 • Societal demands • Emerging contaminants (e.g. PFAS) 21.1 • Brownfield site redevelopment 17.7 • Global infrastructure spend End-markets Appendix
Slide 60: Commodity end-markets
Commodity end-markets Key demand drivers Mining testing market size (US$B)1 and market share • Increasing electrification and global 8.3 decarbonisation supporting demand for 7.3 conductor metals, battery metals and electronic metals • Geopolitical tensions disrupting supply sources • Required devel
Slide 61: Industrial end-markets
Industrial end-markets Key demand drivers Industrial & manufacturing testing market size (US$B)1 • Increased adoption of electric vehicles and fluids to offset lower diesel fuel demand 21.4 • Lubricant demand linked to mining sector growth and expansion into new geographic markets 17.9 • Energy mark
Slide 62: right solutions. right partner.
right solutions. right partner. © Copyright 2022 | ALS Limited 62