Slide 1: September 2014 Half Year Results
For personal use only September 2014 Half Year Results 24 November 2014 R IG H T S O L U T I O N S | R I G H T PA RT N E R
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only • 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 comp
Slide 3: September 2014 Half Year Summary
September 2014 Half Year Summary H1 FY14 For personal use only ($mn) H1 FY15 ($mn) Discontinued Restructuring Amortisation half year Underlying1 Underlying1 Operations & Impairment Costs of Intangibles Revenue 684.6 710.3 58.8 - - EBITDA 181.4 149.8 (0.6) (2.2) - Depreciation & amortisation (34.6) (
Slide 4: September 2014 Half Year Trend
September 2014 Half Year Trend Average USD:AUD (cents) For personal use only REVENUE 103 104 94 91 92 30th September 2014 4% 800 250 $710mn pcp EBITDA & NPAT (AUD million) 640 200 Revenue (AUD million) EBITDA 17% 30th September 2014 480 150 pcp $150mn 320 100 NPAT 160 50 33% 30th September 2014 pcp
Slide 5: Revenue Growth
Revenue Growth 800 For personal use only ALS Group Revenue Growth 700 65 2 60 92 600 Revenue (AUD$mn) • Organic Growth -9% 500 400 • Divestments (see note) -8% 745 680 710 710 300 620 620 • Acquired Growth +12% 200 • Currency Impact -0.2% 100 0 Note: Reward Distribution divested in Oct-14 but shown
Slide 6: Operating Profit (EBIT) Historical
Operating Profit (EBIT) Historical For personal use only 200 150 EBIT ($ million) 100 50 0 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 First Half Ending Minerals Life Sciences Energy Industrial Reward + Chemical Note: Chemical Division (“Chemical”) divested during Sep-12 ha
Slide 7: Laboratory revenue - journey over the last decade?
Laboratory revenue - journey over the last decade? H1 Revenue has approximately tripled every five years For personal use only FY2015 with significant diversification of market sectors revenue $710mn H1 FY2010 revenue H1 $265mn FY2005 revenue $80 mn Environmental Food/Pharma Consumer Products Geoche
Slide 8: Laboratory revenue - journey over the last decade?
Laboratory revenue - journey over the last decade? H1 For personal use only Significant geographical diversification FY2015 revenue $710mn H1 FY2010 revenue H1 $265mn FY2005 revenue $80 mn Africa Asia Australia Europe Middle East North America South America RIGHT SOLUTIONS | RIGHT PARTNER 8
Slide 9: Global Location Map – genuine global footprint
Global Location Map – genuine global footprint For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 9
Slide 10: CAPEX and Depreciation
CAPEX and Depreciation For personal use only 25 CAPEX remains tightly controlled in line with current operating environment BUT assets maintained in prime condition for inevitable market upswing 20 CAPEX (AUD$ million) 15 10 5 0 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Quarter Approved CAPEX (exl.
Slide 11: Cash Flow and Funding
Cash Flow and Funding Sep-14 Sep-13 Oct-14 * Mar-14 For personal use only Cash Flow Funding statistics EBITDA (excl Reward write-down ) $149mn $179mn Gearing ratio Comfort 45% 34.2% 33.9% Operating cash flow $133mn $147mn Leverage (net debt / EBITDA) Max 3.00 2.5 2.2 EBITDA interest cover Min 3.75 9
Slide 12: Energy Division
Energy Division For personal use only H1 FY15 H1 FY14 Change Revenue $152mn $91mn +68% Overview EBITDA $28mn $28mn +2% • Coal • Australian exploration down 33% pcp and EBIT $17mn $23mn -25% exports up 8% pcp • ALS market share in Australia at +60% EBIT Margin 11.4% 25.3% -1390 bps following recent c
Slide 13: ALS Oil & Gas – financial journey
ALS Oil & Gas – financial journey 30 30% For personal use only Revenue USD$ Millions ALS ownership 25 25% ALS Oil & Gas EBITDA margin 20 20% 15 15% 10 10% 5 5% 0 0% Mar-13 Jan-10 Mar-10 Jul-10 Nov-10 Jan-11 Mar-11 Jul-11 Nov-11 Jan-12 Mar-12 Jul-12 Nov-12 Jan-13 Jul-13 Nov-13 Jan-14 Mar-14 Jul-14 Ma
Slide 14: ALS Oil & Gas – operational journey
ALS Oil & Gas – operational journey • All business stream (coring, surface logging, specialty well services, laboratories, down For personal use only hole tools) global managers relocated to Houston Texas – effective September 2014 • Reservoir Group Corporate office in Aberdeen rationalised– effecti
Slide 15: Minerals Division
Minerals Division Overview For personal use only H1 FY15 H1 FY14 Change • Geochemistry • Geochemistry revenues down 25% in line Revenue $182mn $232mn -22% with global exploration spend of USD$14.2 bn in CY2013 versus USD$10.7 bn forecast EBITDA $48mn $76mn -38% in CY2014 EBIT $36mn $64mn -44% • EBIT
Slide 16: Geochemical Markets – global perspective
Geochemical Markets – global perspective For personal use only • Global exploration budgets down 47% from actual spend in CY2012 • Commodity mix and geographical activity consistent with previous years • Focus on minesite and late stage remains Source: SNL Metals and Mining report 16 RIGHT SOLUTIONS
Slide 17: Geochemical Market – ALS perspective
Geochemical Market – ALS perspective For personal use only Weekly Sample Flow Global Geochemical Sample Flow 2012 2013 2014 Traditional Field Season 7-Jan 7-Feb 7-Mar 7-Apr 7-May 7-Jun 7-Jul 7-Aug 7-Sep 7-Oct 7-Nov 7-Dec • CY2012 – activity stalled halfway through the field season as the industry we
Slide 18: Life Sciences Division
Life Sciences Division Overview For personal use only H1 FY15 H1 FY14 Change • Environmental Revenue $276mn $272mn +1% • Organic revenue growth in USA, Asia, Europe and South America EBITDA $66mn $69mn -5% • Volume increases in Australia and Canada but revenue and margin decreases due to EBIT $51mn
Slide 19: Life Sciences Division
Life Sciences Division Overview Life Sciences - Europe For personal use only • Food/Pharma 30 40% • Food/Pharma organic growth of 12% pcp millions 35% • New Food Chemistry buildings completed in Revenue per Quarter (Euro) 25 30% England and Denmark EBITDA Margin 20 25% • Consolidated market leadersh
Slide 20: Industrial Division
Industrial Division Overview For personal use only H1 FY15 H1 FY14 Change • Asset Care Revenue $100mn $89mn +12% • Strong outage program and peak Gladstone LNG construction in H1 EBITDA $20mn $16mn +22% • Weakening Australian revenues in H2 as construction activity ramps down EBIT $17mn $14mn +21% •
Slide 21: LNG Construction Revenue
LNG Construction Revenue For personal use only 12 10 8 AUD (mn) QCLNG 6 GLNG APLNG 4 2 QCLNG GLNG 0 H1 FY15 H1 FY14 Wheatstone project commencing H2 FY15 ($22mn) 21 RIGHT SOLUTIONS | RIGHT PARTNER 21
Slide 22: Asset Care Market Analysis – Australia
Asset Care Market Analysis – Australia $350 Source: Company estimates For personal use only $300 Welding & Fabrication Mining $250 O&G AUD (million) Power $200 $150 $100 ALS Market Share $50 42% $0 Total Australian ALS Revenue Market Sector Driver Market Demand Power Production − Oil & Gas Construct