Als Ltd. · ASX:ALQ
Als — Morgans Queensland Conference 2018
23 slides from Als's conference presentation, Oct 10, 2018
Slide 1: Investor Presentation – Morgans Queensland Conference, Brisbane
For personal use only Investor Presentation Morgans Queensland Conference – Brisbane Richard Stephens, Chief Financial Officer, ALS Limited 10 October 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: TIC Markets
TIC Markets For personal use only 3 Morgans Queensland Conference - October 2018 Right Solutions • Right Partner
Slide 4: Business streams
Business streams For personal use only 4 Morgans Queensland Conference - October 2018 Right Solutions • Right Partner
Slide 5: 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 5 Morgans Queensland Conference - October 2018 Right Solutions • Right P
Slide 6: Full Year FY18 Financial Summary
Full Year FY18 Financial Summary Underlying performance from continuing operations For personal use only NPAT Guidance met $142.2m NPAT growth 21.1% EBITDA growth 12.3% Revenue growth 14.7% EPS growth 21.9% Share buyback progress $106.8m [Additional $14.9 m in FY19] 6 Morgans Queensland Conference -
Slide 7: Revenue waterfall FY17 vs FY18 – all operations
Revenue waterfall FY17 vs FY18 – all operations For personal use only +80 +1 +2 -56 Strong +4 Life Sciences growth +54 -1 +5 +5 Oil & Gas -3 discontinued $1,495.1 million $1,365.6 million operation Strong Flat Commodities Industrial performance performance +39 FY17 Food Pharma Coal Other FY18 Geoche
Slide 8: Cash Flow FY17 FY18
Cash Flow FY17 FY18 Full year AUD mn AUD mn Underlying operating profit (EBIT) 171.6 216.7 For personal use only Depreciation & Amortisation 78.8 72.9 EBITDA 250.4 289.6 Working capital 12.3 (16.1) CAPEX (58.7) (73.4) Other 5.0 7.6 Free cash flow 209.0 207.7 Acquisitions (106.4) (31.8) Divestments -
Slide 9: Margin strong post bottom of the cycle
Margin strong post bottom of the cycle For personal use only ALS Revenue AUD$ million ALS EBITDA Margin EBITDA ALS Revenue Margin Intertek 1,500 30% SGS Eurofins Bureau Veritas 1,200 24% Applus Mistras 900 18% Bottom of EBITDA Margin for SGS, the cycle Intertek, Bureau Veritas, Eurofins, Applus & Mi
Slide 10: Final H2 FY18 Dividend
Final H2 FY18 Dividend For personal use only AUD cents 50 FY18 Final Dividend Interim Dividend 9.0 cps (Full Year 17.0 cps: up 25.9%) 40 Final Dividend Payout ratio 60% (full year) Franked to 40% 27 26 Paid on 2 July 2018 30 20 DRP on hold during share Buyback 20 15 10 11 9 10 19 21 19 6 8
Slide 11: Commodities. Overview
Commodities. Overview For personal use only Geochemistry Metallurgy Inspection Coal Sample volumes Revenue up 2.5% pcp Revenue up 16.7% Revenue up 3.6% pcp up 26% pcp pcp Contribution margin Contribution margin Revenue up 27% records improved Contribution margin 14.5% versus 13.3% pc
Slide 12: Geochemistry – The Recovery looks real
Geochemistry – The Recovery looks real ALS Global Mineral Sample Flow (trailing 52 week running average) and Global Exploration Spend For personal use only Average Weekly Sample Flow 400,000 24 Global Exploration Spend US$bn 350,000 21 300,000 Relative Gold Price in USD 18 250,000 15 200,000 12 2006
Slide 13: Commodities. Outlook
Commodities. Outlook For personal use only Continuation of positive market sentiment and improved market conditions for geochemistry Geochemistry market share gains globally to translate into improved FY19 performance Gradual but sustained improvement in Metallurgy expected to carry on through
Slide 14: Life Sciences. Overview
Life Sciences. Overview For personal use only Environmental Food & Pharma Revenue growth (in AUD) Focus on developing new greenfield Revenue growth (in AUD) Asia (+16.7%) opportunities within selected Asian and Europe (+33.1%) Australia (+5.2%) European markets to deliver new growth Australia
Slide 15: Life Sciences. Outlook
Life Sciences. Outlook For personal use only Focus on automation and workflow centralisation to improve future operating margins Food safety and pharmaceutical strategy will continue expansion via targeted acquisitions The environmental businesses in the Americas and Europe continue to demonst
Slide 16: Industrial. Overview
Industrial. Overview For personal use only Asset Care Tribology • In Australia, growth in Mining maintenance services • Revenue growth and margin improvement delivered offset smaller FY18 power generation outage in all regions – Australasia, North America and South program and O&G maintenance servic
Slide 17: Industrial. Outlook
Industrial. Outlook For personal use only Despite headwinds, well positioned to support mining, O&G, and power generation maintenance programs in Australia. Market to remain highly price sensitive Mobilisation of US construction projects in FY19 H1 to underpin FY19 regional growth Lab automation
Slide 18: First Half FY19 guidance
First Half FY19 guidance For personal use only NPAT (AUD$mn) 100 H1FY19 80 Guidance $85-90m 60 40 20 0 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 ALS expects that underlying NPAT from continuing operations for the half year ending 30 September 2018 will be in the range of AUD $85 million to AUD $90 mil
Slide 19: Acquisitions completed during FY2019 to date
Acquisitions completed during FY2019 to date For personal use only Total investment AUD18m PHARMACEUTICAL ENVIRONMENTAL FOOD / PHARMA Labfor (Brazil) Felsilab (Italy) Truesdail (USA) 19 Morgans Queensland Conference - October 2018 Right Solutions • Right Partner
Slide 20: Global Operations Map
Global Operations Map For personal use only 50+ 300+ 40+ 13,000+ 20+ million $1.4+ billion Countries Locations Years of strong Staff worldwide Processed samples Global revenue business per year performance 20 Morgans Queensland Conference - October 2018 Right Solutions • Right Partner
Slide 21: Debt Metrics
Debt Metrics For personal use only Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 STATISTICS Gearing Ratio (comfort 45%) 34% 38% 27% 29% 31% Leverage (net debt/ EBITDA; max 3.00) 2.2 2.5 1.7 1.9 1.7 EBITDA interest cover (min 3.75) 12.2 9.1 7.7 9.2 11.3 BALANCE SHEET MEASURES Total Equity (AUD mn) 1419 1228 118
Slide 22: Sustainability Program. 2017-18 Achievements
Sustainability Program. 2017-18 Achievements 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 (Group LTIFR = 1.0) Diversity & equality Respecting differences Global employee sur
Slide 23: Vision 2022: Our Everest
Vision 2022: Our Everest (excluding significant acquisitions) For personal use only 23 Morgans Queensland Conference - October 2018 Right Solutions • Right Partner