Als Ltd. · ASX:ALQ

Als — RBS Morgans Institutional Conference – Brisbane 2012

21 slides from Als's conference presentation, Oct 11, 2012

  1. Slide 1: RBS Morgans Institutional Conference – Brisbane

    For personal use only RBS Morgans Institutional Conference – Brisbane Paul McPhee Group General Manager, Energy Division 11 October 2012

  2. Slide 2: 13,000+ staff, 350 locations, 55 countries, six continents

    For personal use only 13,000+ staff, 350 locations, in 55 countries, on six continents 2

  3. Slide 3: Commodity price cycles are inevitable; ALS better positioned than ever

    For personal use only Commodity Price Cycles are inevitable. Corrections bring opportunities and create stronger industries. ALS is better positioned than ever to respond Superior client portfolios and broadening service streams underpin ALS’ long term growth

  4. Slide 4: Mineral and Metal Price Indices

    900 Mineral and Metal Price Indices For personal use only } COAL_AUS 800 COPPER 81.4% of Australia's current Mineral Exploration Expenditure GOLD 700 IRON_ORE_SPOT Price Indices (basis USD) 600 Average Index price for Major Minerals 500 400 300 200 100 0 Sources: World Bank Commodity Price Indices &

  5. Slide 5: Recent price falls are relatively modest

    900 Mineral and Metal Price Indices USD) only 800 Recent price falls are relatively modest in comparison 700 Price Indices (basisuse Still 33% 93% post-GFC above long 600 term Average Index price for Major Minerals Rise average For personal 500 400 300 22% decline 200 46% 2012 100 decline GFC 0 Sour

  6. Slide 6: Price impact on exploration expenditure uncertain but subdued

    World Minerals Exploration Expenditure (MEGS) USDm For personal use only Price impact on exploration expenditure uncertain but should be subdued 25,000 Current (unrevised) 20,000 forecast 15,000 10,000 5,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Mineral Economics Group Ser

  7. Slide 7: Australian exploration expenditure by commodity

    Australian Minerals Exploration Expenditure Australian Financial Years AUDm For personal use only 4,000 Others 81% aimed at just 4 major 3,500 commodities and 69% of total Uranium spend is targeting brownfield 3,000 Other Base Metals deposits Copper 2,500 Gold 2,000 Iron Ore Coal 1,500 1,000 500 0 2

  8. Slide 8: Australia more resilient throughout the price cycle

    Minerals Exploration Expenditure For personal use only 4,500 25,000 4,000 Australian Exploration Expenditure 20,000 3,500 Global Exploration Expenditure 3,000 15,000 2,500 2,000 10,000 1,500 1,000 5,000 500 Australia tends to be more resilient throughout the price cycle 0 - 2004 2005 2006 2007 2008

  9. Slide 9: ALS Australia revenue versus exploration expenditure

    Australian Minerals Exploration Expenditure Australian Financial Years AUDm For personal use only 4,000 Others 500 3,500 Uranium Other Base Metals 3,000 Copper 400 Gold 2,500 Iron Ore 300 2,000 Coal ALS Australia Revenue 1,500 200 1,000 100 500 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 S

  10. Slide 10: ALS Global revenue versus Australian exploration expenditure

    Australian Minerals Exploration Expenditure Australian Financial Years AUDm For personal use only 4,000 1200 Others 3,500 Uranium 1000 Other Base Metals 3,000 Copper Gold 800 2,500 Iron Ore 2,000 Coal 600 ALS Global Revenue 1,500 400 1,000 200 500 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 201

  11. Slide 11: ALS Australia EBIT versus exploration expenditure

    Australian Minerals Exploration Expenditure Australian Financial Years AUDm For personal use only 4,000 Others 120 3,500 Uranium Other Base Metals 100 3,000 Copper Gold 2,500 80 Iron Ore 2,000 Coal 60 ALS Australia EBIT 1,500 40 1,000 20 500 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sour

  12. Slide 12: ALS Global EBIT versus exploration expenditure

    Australian Minerals Exploration Expenditure Australian Financial Years AUDm For personal use only 4,000 350 Others 3,500 Uranium 300 Other Base Metals 3,000 Copper 250 Gold 2,500 Iron Ore 200 2,000 Coal ALS Global EBIT 150 1,500 100 1,000 500 50 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

  13. Slide 13: ALS has evolved beyond a mineral services company

    World Minerals Exploration Expenditure (MEGS) ALS Limited Financial Years USDm For personal use only 30,000 1,400 Global Exploration Expenditure 1,200 25,000 1,000 20,000 ALS Global Revenue 800 15,000 600 10,000 400 5,000 200 ALS has evolved beyond a mineral services company 0 0 2003 2004 2005 2006

  14. Slide 14: Less volatile and more diversified earnings

    World Minerals Exploration Expenditure (MEGS) ALS Limited Financial Years USDm For personal use only 30,000 350 25,000 Global Exploration Expenditure 300 ALS Global EBIT 250 20,000 200 15,000 150 10,000 100 5,000 50 The business has less volatile and more diversified earnings 0 0 2003 2004 2005 2006

  15. Slide 15: Growth has relied less and less on minerals

    Despite strong global mineral exploration expenditure, ALS’s spectacular growth has relied less and less on minerals USDm Energy 7% Industrial 13% For personal use only Life Minerals 25,000 Sciences 1,200 Energy Industrial 49% 31% 5% 1% 1,000 20,000 Life Sciences Minerals 40% Energy Industrial 800 5

  16. Slide 16: Evolving geographic spread reduces volatility and currency exposure

    World Similarly, ALS’Minerals evolving Exploration geographic spread Expenditure (MEGS) has made the Company ALS Limited less exposed to economic Financial and volatility Years USDm exchange rate movements Revenue by Region EBIT by Region For personal use only 100% 110% Sth America 100% 90% 25,000 8

  17. Slide 17: Growth of non-minerals divisions

    GROWTH OF NON-MINERALS DIVISIONS Revenue EBITDA (incl ALS overheads) For personal use only 1,400 400 Non-Mineral EBITDA margin 21% 21% 24% 20% 24% 23% 25% 1,200 350 300 1,000 AUD$ millions AUD$ millions 250 800 200 600 150 400 100 200 50 - - FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY06 FY07 FY08 FY09 FY1

  18. Slide 18: Strong credentials delivering shareholder value through tough times

    ALS has strong credentials in navigating through the tougher times and consistently delivering For personal use only shareholder value Price Index All Minerals Price Index Major Minerals Global Exploration Expenditure ALS Global Revenue ALS Dividend Per Share ALS Market Capital 2003 2004 2005 2006 2

  19. Slide 19: Total Shareholder Return

    TOTAL SHAREHOLDER RETURN ALS Limited Boart Longyear For personal use only Core Laboratories Monadelphous Cardno Intertek Bureau Veritas MacMahon Orica Eurofins Clough Worley Parsons Ausenco SGS Transfield Services Servcorp Coffey -100% 0% 100% 200% 300% 400% 500% 600% 700% Total Shareholder Return (

  20. Slide 20: Summary of key conclusions

    For personal use only • Price cycles happen and, yes, exploration expenditure is price sensitive • Corrections are healthy for these industries and ALS is well positioned to continue servicing the sector • Current prices for major minerals remain way above long-term averages ALS’ financial performan

  21. Slide 21: For personal use only

    For personal use only

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