Als Ltd. · ASX:ALQ
Als — Investor Presentation (December 2018)
31 slides from Als's investor presentation, Dec 4, 2018
Slide 1: ALS Asia Investor Presentation
For personal use only ALS Limited ALS Asia Investor Presentation Raj Naran, Managing Director and CEO, ALS Limited 4-5 December 2018 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: Global Operations Map
Global Operations Map For personal use only 70+ 350+ 40+ 14,000+ 20+ million $1.6+ billion Countries Locations Years of strong Staff worldwide Processed samples Global revenue (annualized) business per year performance 3 ALS Asia Investor Presentation Right Solutions • Right Partner
Slide 4: Business streams
Business streams For personal use only 4 ALS Asia Investor Presentation Right Solutions • Right Partner
Slide 5: Sustainability Program
Sustainability Program People For personal use only Health & Safety Training & 53% female new hires Safety as a Priority development investing in talent development Record Low Injury Rates Diversity & equality Respecting differences Global employee survey completed Human rights Worker’s rights
Slide 6: 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 6 ALS Asia Invest
Slide 7: ALS Segments and Business Streams Revenue split
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 7 ALS Asia Investor Presentation Right Solutions • Right Partner
Slide 8: Revenue waterfall H1 FY18 vs H1 FY19 – continuing operations
Revenue waterfall H1 FY18 vs H1 FY19 – continuing operations For personal use only Strong Life Sciences Flat $716.8 million growth Industrial $826.1 million performance Strong Commodities performance Food Pharma Coal Environmental H1 FY18 Geochemistry H1 FY19 Tribology Asset Care Mineral Inspection
Slide 9: Cash Flow H1 FY18 H1 FY19
Cash Flow H1 FY18 H1 FY19 Half year AUD mn AUD mn Underlying operating profit (EBIT) 110.5 141.4 For personal use only Depreciation & Amortisation 38.1 35.8 24.6 million EBITDA 148.6 177.2 Working capital (50.3) (43.7) FREE CASH FLOW CAPEX (39.2) (45.8) Other 4.3 0.3 Free cash flow 63.4 88.0 CAPEX A
Slide 10: Capital management
Capital management For personal use only Share Buyback Dividend Buyback Progress Balance Sheet Program Buyback extended Half Year 17.5 million Company retains strong for 12 months to underlying balance sheet and flexibility shares to pursue opportunities a total of payout ratio (representing
Slide 11: Life Sciences. Overview
Life Sciences. Overview For personal use only Environmental Food & Pharma Revenue growth (in AUD) Margin improvements in Revenue growth (in AUD) 10% Europe and Canada offset by 17% declines in USA and Asia Ongoing cost controls and Acquisition of Truesdail (US) and procurement synergies
Slide 12: Food/Pharmaceutical growth story
5 year growth story – Food/Pharmaceutical LABFOR and For personal use only Revenue AUD$ 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 Jun-15 Jun-16 Jun-17 Jun-18 Sep-14 Sep-15
Slide 13: Life Sciences. Outlook
Life Sciences. Outlook For personal use only Focus on operational efficiency is ongoing with workflow consolidation through Hub and Spoke effort to improve future margins Food safety and pharmaceutical acquisition strategy will continue with pipeline of opportunities identified Environmental bus
Slide 14: 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 $200m in revenue this fiscal year New unique service offerings to provide market differentiator Global strategy now focu
Slide 15: Commodities. Overview
Commodities. Overview For personal use only Geochemistry Metallurgy Inspection Coal Sample volumes Revenue up 63% pcp Revenue up 33% pcp Revenue up 13% pcp up 14% pcp Contribution margin Contribution margin up Contribution margin up Market share up from 6% to 22% from 18% to 30% from
Slide 16: Geochemistry
Geochemistry For personal use only H1 FY19 Highlights Strategic Focus Outlook Financial performance Innovative Productivity Continued sample volume growth in H2 FY19, circa 8-10% Growth in all regions Technical Development Mine site start ups (awarded) Increased sample volumes Cost b
Slide 17: Global Mineral Exploration Market
Global Mineral Exploration Market Market Activity Analytical Spend Drivers For personal use only 18% • Global spend on exploration activities continues to rebound across a broad base of commodities both traditional and non- traditional (i.e. rare earths) • ALS’ focus on systems, productivity and inn
Slide 18: Geochemistry – Market
Geochemistry – Market For personal use only “The global nonferrous exploration budget has increased for the second time since 2012, by almost 20% year over year.” “We… expect the global exploration budget to increase again in 2019, although likely by a smaller percentage than this year.” 18 ALS Asia
Slide 19: Geochemistry – Market
Geochemistry – Market For personal use only Exploration Dollars – AUST Growth pcp (excl. Iron Ore and Coal) (i.e. quarter v equivalent quarter the previous year) Exploration budgets by Grassroots 2,509.8M (26.1%) stage of development, 2018 (US$M) Late stage 3,769.7M (39.2%) (1.651 companies budgetin
Slide 20: Geochemistry – The Recovery continues
50,000 100,000 150,000 200,000 250,000 300,000 350,000 0 400,000 For personal use only Jan-06 20 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 80% 70% 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 21: 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 22: 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 23: Geographic Footprint
Geographic Footprint For personal use only 23 ALS Asia Investor Presentation Right Solutions • Right Partner
Slide 24: 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 25: Confidence in Assets
Confidence in Assets For personal use only Compliance — Performance: Assurance — adherence to • minimising maintenance cost providing confidence regulations • optimising production in safe operation • extending asset life HOLISTIC INTEGRITY & RELIABILITY ENGINEERING SERVICES Engineering Tribology As
Slide 26: 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 26 ALS Asia Investor Presentation Right Solutions • Right Partner
Slide 27: 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 $175m 27 ALS Asia Inves
Slide 28: H1 FY2019 results Financial appendix
For personal use only H1 FY2019 results Financial appendix Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner
Slide 29: Half Year FY19 Financial Summary
Half Year FY19 Financial Summary For personal use only FY18** Half Year FY19 ($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 30: 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 31: Questions & Discussion
For personal use only ? Questions & Discussion Right Solutions • Right Partner