Slide 1: Amended FY2015 Investor Presentation (ASX announcement)
9 June 2015 For personal use only ASX Company Announcements Office Amended FY2015 Investor Presentation ALS Limited (ASX: ALQ) advises that that there was an error in the FY2015 Investor Presentation lodged on 28 May 2015 concerning the historical Underlying EBITDA numbers for period FY05 to FY13 on
Slide 2: 2014–15 Full Year Result Investor Presentation
For personal use only 2014 – 15 Full Year Result Investor Presentation May 2015 Greg Kilmister - CEO 1 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER • This presentation has been prepared by ALS Limited, (ALS or the Company). It contains general information For personal use only 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 4: Company Profile
Company Profile For personal use only geochemistry ALS Limited (ASX:ALQ) is an ASX 100 company that provides tribology metallurgy professional technical services to the global Mineral and Energy Resources (exploration, extraction, processing and trading), Life mineral Sciences (environmental, food a
Slide 5: FY2015 Financial Summary
FY2015 Financial Summary For personal use only FY14 ($mn) Full Year FY15 ($mn) Continuing Continuing Discontinued Impairment Restructuring & Amortisation of Statutory Full year Operations (1) Charges Acquisition Intangibles Results Underlying Underlying Costs Revenue 1384.0 1422.2 70.5 - 1492.7 EBIT
Slide 6: Health Safety and Environment
Health Safety and Environment Performance at a glance: For personal use only LTIFR better than ASX TRIFR 50% reduction Decreasing All divisions meeting Top 100 average*. over 4 years. severity rate. target PPI score. ASX Top 100 ave. = 3.3 Group LTIFR Group TRIFR Duration Rate (Ave. Days Lost) PPI S
Slide 7: Compliance and Sustainability
Compliance and Sustainability • Core values of “Safety as a Priority” and “Honesty and For personal use only Integrity” supported by long term compliance program. • Strong internal controls maintained by compliance portal which incorporates company policies, management sign- offs, environmental moni
Slide 8: Cash Flow
Cash Flow FY14 FY15 Full year For personal use only $mn $mn • Cash Flow Underlying operating profit (EBIT) 262.8 223.3 • Free cash flow down $ 24.5mn Depreciation & Amortisation 76.2 83.7 • Cash conversion 101.7% Working capital 15.9 2.7 • CAPEX $ 76.5mn – 5% of revenue CAPEX (82.6) (76.5) • 4 acqui
Slide 9: Funding
Funding Mar-14 Sept-14 Mar-15 For personal use only Funding statistics Gearing ratio Comfort 45% 33.9% 35.5% 38.3% Leverage (net debt / EBITDA) Max 3.25 2.2 2.7 2.5 debt EBITDA interest cover Min 3.75 12.2 8.8 9.1 covenants AUD$mn Debt Maturity 400 30% 24% 350 24% 300 22% 250 200 150 100 50 0 2014 2
Slide 10: Foreign Currency Revenues
Foreign Currency Revenues For personal use only Asia ZAR 5% Krona 2% Average Exchange Rate 6% FY2015 FY2014 Change GBP 2%4% 8% 5% USD 0.8675 0.9235 -6.1% 7% AUD EURO 34% CAD 0.9902 0.9776 +1.3% 4% 4% 42% FY2015 revenue EURO 0.6909 0.6880 0.0% AUD $1.42 billion 14% GBP 0.5389 0.5796 -7.0% CAD SEK 6.3
Slide 11: Historical Trend – Ten Year Journey
Historical Trend – Ten Year Journey AUD $m 1,600 1,503 1,493 1,406 1,456 For personal use only 1,400 1,200 1,108 1,000 920 826 Revenue 800 663 772 600 523 436 400 200 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 AUD $m 450 406 400 374 339 350 307 Underlying 300 238 EBITDA 250 200 202 157
Slide 12: FY15 – Revenue by Region by Division
FY15 – Revenue by Region by Division For personal use only Europe North America Middle east Asia Africa South America Australasia 11 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 13: Global Location Map – genuine global footprint
Global Location Map – genuine global footprint For personal use only 12 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 14: ALS Revenue History
ALS Revenue History For personal use only Reservoir Group acquired-- 1,400 105 248 307 1,200 88 169 AUD$ millions 153 183 190 1,000 73 454 800 GFC 361 143 527 558 600 59 26 PearlStreet Ltd acquired-- 62 50 312 24 6 236 400 6- 189 248 591 608 162 200 4- 426 367 4- 77 318 335 3- 4- 46 50 252 206 3- 43
Slide 15: Laboratory revenue - journey over the last decade
Laboratory revenue - journey over the last decade? FY2015 Revenue has approximately tripled every five years For personal use only revenue with significant diversification of market sectors $1422mn FY2010 revenue $565mn FY2005 revenue $156mn 34% environmental 30% 43% 66% 36% 19% geochemistry Environ
Slide 16: Revenue Growth - laboratories
Revenue Growth - laboratories 1500 ALS (laboratories) Revenue Growth For personal use only 1250 Revenue (AUD$mn) 1000 • Organic Growth - 6.1% 750 500 • Acquired Growth +7.7% 250 • Currency Impact +1.1% 0 Reported Growth 2.7% Revenue Growth YoY Industrial Energy Life Sciences Minerals -20% -10% 0% 10
Slide 17: Dividend
Dividend For personal use only Full Year Dividend per Share AUD cents FY15 – 2nd Half Dividend 50 • Payout ratio 62% • Franked to 25% 40 • Dividend Reinvestment Plan 27 26 retained at 0% discount 30 20 • DRP shares purchased on market – no new equity issued 20 15 10 10 11 10 19 21 19 13 11 10 9 0 FY
Slide 18: CAPEX and Depreciation
CAPEX (excluding land & building purchases) and Depreciation 25 For personal use only CAPEX as a % of D&A $ million • Capacity CAPEX remains subdued- in 90% 62% 60% 53% 66% 75% 66% 54% line with market conditions • Replacement CAPEX (~$20mn) being 20 maintained for inevitable market upswing • Resear
Slide 19: Employee Numbers - total head count
Employee Numbers - total head count • ALStar online training platform launched in 25 For personal use only 14,000 languages – delivering 3400 training sessions per month 12,000 • Agility in managing our manpower costs and a highly engaged workforce has allowed for a step change improvement in produc
Slide 20: Margin – peer comparison
Margin – peer comparison For personal use only 35% 34.2% 31.7% 30% 25% 21.4% 21.8% 20.8% 20.8% 20% 19.1% 16.6% 16.8% 15.5% 16.0% 15.5% 15.7% 15% 12.7% 10.7% 9.8% 10% 6.2% 5% 3.6% 0% ALS SGS B.V. Intertek Eurofins Applus+ Exova Mistras Core Labs EBIT EBITDA Note: FY Dec 14 for all companies excluding
Slide 21: Growth of non-Minerals Divisions
Growth of non-Minerals Divisions Lab Services Revenue Lab Services EBITDA For personal use only Non-Mineral EBITDA margin 1,400 450 21% 24% 20% 24% 23% 25% 25% 24% 21% 400 1,200 350 1,000 AUD$ millions AUD$ millions 300 800 250 600 200 150 400 100 200 50 - - FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 F
Slide 22: Life Sciences Division
Life Sciences Division Overview For personal use only • Strong Environmental revenue growth in South America (+22%), Europe (+11%) and Asia (+10%). Australia down slightly in a very competitive market but no loss of market share. 2015 2014 Change • New Environmental LIMS progressively deployed in Au
Slide 23: Industrial Division
Industrial Division Overview For personal use only • Solid organic tribology growth across all regions • OilCheck and AIT acquisitions in line with expectations for first full year of ownership • LNG construction revenue peaked with three projects in 2015 2014 Change Queensland and Wheatstone in Wes
Slide 24: Minerals Division
Minerals Division For personal use only Overview • Metallurgy market contraction – margins under pressure • Geochemistry full year EBIT margin >22% • Geochemistry market share growth • Six new mine site contract wins 2015 2014 Change • Inspection EBIT margin 26% - lower cost base and revenue growth
Slide 25: Energy Division
Energy Division Overview – Oil & Gas For personal use only • Significant inroads in the Gulf of Mexico deep-water markets. Coring, Drilling Services, Surface Logging & Reservoir Laboratories all expanded their footprint in this premium market segment • Cedar Turbine redesigned and successfully trial
Slide 26: Oil & Gas Overview
Oil & Gas Overview Exploration Production For personal use only 2015 2014(1) Change Formation Down Hole Tools Revenue $245mn $249mn -2% Evaluation Coring EBITDA $45mn $59mn -23% EBIT $27mn $40mn -33% Reservoir Surface Logging EBIT Margin 11.0% 16.1% -510bps Characterisation Laboratory Services (1) f