Slide 1: Investor Presentation Half Year Results FY2019
Investor Presentation Half Year Results FY2019 Raj Naran, Managing Director and CEO, ALS Limited 20 November 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 activities as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution
Slide 3: Global Operations Map
Global Operations Map 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 Investor Presentation. Half Year Results FY2019 Right Solutions • Right Partner
Slide 4: Business streams
Business streams 4 Investor Presentation. Half Year Results FY2019 Right Solutions • Right Partner
Slide 5: Sustainability Program
Sustainability Program People 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 upheld 44,000 train
Slide 6: Half Year FY19 Financial Summary
Half Year FY19 Financial Summary Underlying performance from continuing operations NPAT (guidance exceeded) $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 Investor Presentation. Half Year Resu
Slide 7: ALS Segments and Business Streams Revenue split
ALS Segments and Business Streams Revenue split COMMODITIES & LIFE SCIENCES INDUSTRIAL Environmental Geochemistry Food Metallurgy Pharmaceutical Trade Inspection Consumer Products Coal Asset Care Tribology 7 Investor Presentation. Half Year Results FY2019 Right Solutions • Right Partner
Slide 8: Revenue waterfall H1 FY18 vs H1 FY19
Revenue waterfall H1 FY18 vs H1 FY19 – continuing operations Strong Life Sciences Flat $716.8 million growth Industrial $826.1 million performance Strong Commodities performance H1 FY18 H1 FY19 Food Pharma Coal Geochemistry Consumer Products Tribology Environmental Mineral Inspection Metallurgy Asse
Slide 9: Cash Flow and CAPEX
Cash Flow H1 FY18 H1 FY19 Half year AUD mn AUD mn Underlying operating profit (EBIT) 110.5 141.4 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 Acquisitions (17.9) (17
Slide 10: Capital management
Capital management Share Buyback Buyback extended for 12 months to a total of $225 million through to Program December 2019 17.5 million shares (representing 3.5% of the original base) have been bought back on-market for an overall consideration of $121.7 million Buyback Progress The Company will co
Slide 11: Life Sciences. Overview
Life Sciences. Overview 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 Organic revenue growth
Slide 12: Life Sciences. Outlook
Life Sciences. Outlook 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 business in the Americas
Slide 13: Life Sciences. Strategy
Life Sciences. Strategy Continued focus on bolt on acquisitions for food business ($17m spent YTD). Solid pipeline Food strategy on target to deliver $200m in revenue this fiscal year New unique service offerings to provide market differentiator Global strategy now focused on building pharma
Slide 14: Commodities. Overview
Commodities. Overview Geochemistry Metallurgy Inspection Coal Sample volumes Revenue up 63% pcp Revenue up 33% pcp Revenue up 13% pcp up 14% pcp Contribution margin Contribution margin up Contribution margin up Market share up from 6% to 22% from 18% to 30% from 14% to 17% increases
Slide 15: Global Mineral Exploration Market
Global Mineral Exploration Market Market Activity Analytical Spend Drivers 18% • Global spend on exploration activities continues to rebound across a broad base of commodities both traditional and non- traditional (i.e. rare earths) • ALS’ focus on systems, productivity and innovation enable superio
Slide 16: Geochemistry – The Recovery continues
Geochemistry – The Recovery continues ALS Global Mineral Sample Flow (trailing 52 week running average) and Global Exploration Spend 400,000 24 Average Weekly Sample Flow 350,000 21 Global Exploration Spend US$bn 300,000 18 Relative Gold Price in USD 250,000 15 200,000 2006 2007 2008 2009 2010 2011
Slide 17: Commodities. Outlook
Commodities. Outlook 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 traditional gold, iron ore, a
Slide 18: Industrial. Overview
Industrial. Overview 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 margins margins maintained •
Slide 19: Industrial. Outlook
Industrial. Outlook 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 monitoring and data man
Slide 20: Next generation TIC, Innovation and Technology
Next generation TIC, Innovation and Technology Robotics Client Software Platforms Artificial Intelligence and Deep Learning Deeper Supply Chain Engagement Global ERP 20 Investor Presentation. Half Year Results FY2019 Right Solutions • Right Partner
Slide 21: Half Year FY19 Financial Summary
Half Year FY19 Financial Summary Underlying performance from continuing operations NPAT (guidance exceeded) $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 $175m 21 Investor Presentation. Half Year Res
Slide 22: H1 FY2019 results: Financial appendix
H1 FY2019 results Financial appendix Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner
Slide 23: Half Year FY19 Financial Summary
Half Year FY19 Financial Summary FY18** Half Year FY19 ($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 EBITDA 146.4 178.5 (1.3)
Slide 24: Debt Metrics
Debt Metrics 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 1185 1122 1099 Net Debt (