Slide 1: Investor presentation H1 FY22 results
Investor presentation H1 FY22 results Raj Naran, Managing Director and CEO Luis Damasceno, Chief Financial Officer 17 November 2021 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: Our sustainability programs
Our sustainability programs Caring for our people through: Carbon Reduction Plan: Sustainability vision: A safe and healthy workplace 40% reduction in carbon intensity by 2030 Deliver world-class health and safety 40% reduction aligned to limiting outcomes, and attract a diverse, global warming to 1
Slide 4: ESG program – FY22 progress
ESG program – FY22 progress Health & Safety Training & Development People Safety Culture/Life Saving Rules Investing in talent development Substantial improvement in injury frequency rate. Diversity & Equality Innovation & Technology Implementation of Women in Leadership Program. Respecting diff
Slide 5: Group H1 FY22 performance vs strategic priorities
Group H1 FY22 performance vs strategic priorities Shorter-term strategic priorities H1 FY22 performance Life Sciences ➢ Total revenue growth of +19.0% (+17.8% organic revenue growth) Strong revenue growth and margin expansion ➢ Underlying EBIT margin of +17.7%, +131 bps vs pcp Commodities ➢ Total re
Slide 6: H1 FY22 results: Group performance
H1 FY22 results Group performance Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner
Slide 7: H1 FY22 statutory results summary
H1 FY22 statutory results summary Statutory Results H1 FY22 ($m) H1 FY21 ($m) % change Revenue 1,031.1 838.8 22.9% EBITDA 226.5 186.8 21.3% FX losses transferred from FCTR (26.9) - - Depreciation, amortisation and (67.3) (66.4) 1.3% impairment losses EBIT 132.3 120.4 9.9% Interest expense (19.4) (21
Slide 8: H1 FY22 underlying NPAT of $127.1 million
H1 FY22 underlying NPAT of $127.1 million Underlying performance from continuing operations (excludes government subsidies and related direct costs, amortization of intangibles, restructuring costs and other items) • Organic revenue growth of +23.6% with significant organic revenue growth in Life Sc
Slide 9: H1 FY22 underlying results by division
H1 FY22 underlying results from continuing operations by division H1 FY22 ($m) Life Sciences Commodities Industrial Total Group H1 FY22 VFY21 VFY20 FY22 VFY21 VFY20 FY22 VFY21 VFY20 FY22 VFY21 VFY20 Revenue 537.9 19.0% 14.8% 383.3 37.7% 19.8% 109.9 1.5% (15.9)% 1,031.1 22.9% 12.2% Organic growth 17.
Slide 10: H1 FY22 revenue evolution, +25.5% in constant currency
H1 FY22 revenue evolution, +25.5% increase in constant currency In $m +16.2 (21.7) +197.8 1,031.1 838.8 +25.5% increase @ constant currency (1) H1 FY21 Organic Scope FX H1 FY22 Revenue 23.6% 1.9% (2.6)% 22.9% Scope growth (net of acquisitions and divestments) primarily driven by Investiga (recentl
Slide 11: H1 FY22 revenue growth components by business stream
H1 FY22 revenue growth components by business stream (at constant currency) % of revenue (25.0)% (15.0)% (5.0)% 5.0% 15.0% 25.0% 35.0% 45.0% 55.0% 65.0% Life Sciences: Life Sciences 17.8% 3.6% 52% Geochemistry 59.1% Metallurgy 24.4% Commodities: 37% Inspection 5.7% Coal (21.2%) Asset care 0.6% Indus
Slide 12: H1 FY22 underlying EBIT – strong organic and scope growth
H1 FY22 underlying EBIT – strong organic and scope growth in $m +2.6 (3.3) +62.6 197.8 197.1 197.1 +291 bps @ constant currency 135.2 135.2 (1) H1 FY21 Organic Scope FX H1 FY22 Group Margin 16.1% +296 bps (5) bps +8 bps 19.1% Life Sciences 16.4% +113 bps (4) bps +22 bps 17.7% Commodities 24.7% +570
Slide 13: H1 FY22 underlying EBIT evolution – strong margin growth
H1 FY22 underlying EBIT evolution – strong margin growth in $m Other (7.3) (2.0) (5.2) (2.1) +45.8 +21.1 197.1 135.2 (1) H1 FY21 Life Sciences Commodities Industrial Corporate Fx H1 FY22 Margin 16.1% 17.7% 29.9% 9.4% (2.2)% (0.0)% 19.1% PCP +131 bps +519 bps (199) bps (12) bps +26 bps +299 bps (1) R
Slide 14: H1 FY22 financial summary – reconciliation of underlying to statutory
H1 FY22 financial summary – reconciliation of underlying to statutory H1 FY21 ($m) H1 FY22 ($m) Full Year COVID-19 Subsidies (1) (1) Restructuring Amortization of Underlying Underlying & Grants net of Statutory results & other items (2) intangibles Direct Costs Revenue 838.8 1,031.1 - - - 1,031.1 EB
Slide 15: H1 FY22 restructuring & other items
H1 FY22 restructuring & other items Other non- COVID-19 Total non- Total in $m Start-up Restructuring Acquisition operational subsidies recurring costs non-recurring items repayment Commodities 0.6 0.6 10.5 11.1 Life Sciences 1.0 0.2 0.1 1.3 10.6 12.0 Industrial 0.5 0.5 3.4 3.9 Corporate 1.4 31.7 33
Slide 16: Capital management strategy
Capital management strategy Cash flow from operations Dividend Solid underlying EBITDA cash conversion of 85% driven by reduction of Interim dividend of 15.8 cps (30% franked) compared to 8.5 cps in H1 FY21, sales outstanding (DSO) by 4 days increase of +85.9% at a payout ratio of 60% compared t
Slide 17: H1 FY22 cash flow – strong cash conversion
H1 FY22 cash flow – strong cash conversion driven by reduction in DSO CASH FROM OPERATIONS Full year ($m) H1 FY21 H1 FY22 million U nderlying operating EBIT 135.2 197.1 (before capex) Depreciation & amortization 62.7 62.6 Amortization on R OU (22.7) (24.8) $198m +$31m Interest on R OU (3.7) (3.3) vs
Slide 18: Capex by business – targeted spending on key growth opportunities
Capex by business – targeted spending on key growth opportunities $m CAPEX as % of revenue Growth Maintenance H1 FY22 * H1 FY21 Life Sciences 3.9% 2.6% 6.5% 4.5% Commodities 3.1% 1.0% 4.1% 3.3% Industrial 2.1% 1.9% 4.0% 2.7% 35 Total Group 3.4% 2.1% 5.5% 4.0% 56 vs. pcp (in bps) 79 80 160 Life Scien
Slide 19: Debt metrics – strong balance sheet following Nuvisan acquisition
Debt metrics – strong balance sheet following completion of Nuvisan acquisition Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 STATISTICS Gearing Ratio (target <45%) 31% 37% 42% 36% 37% Leverage (net debt/ EBITDA) (max 3.25) 1.7 1.8 2.1 1.6 1.5 EBITDA interest cover (min 3.75) 11.3 10.5 11.0 11.4 14.0 BALANCE S
Slide 20: H1 FY22 results: Review by division
H1 FY22 results Review by division Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner
Slide 21: Life Sciences overview – strong performance across the division
Life Sciences overview – strong performance across the division Total revenue growth of +19.0% vs pcp, of which Underlying EBIT margin of 17.7%, +131 bps vs Megatrends driving long-term structural 17.8% organic, 3.6% scope with -2.4% unfavourable pcp, driven by strong increase in volume, growt
Slide 22: Nuvisan Pharmaceutical Services acquisition
Nuvisan Pharmaceutical Services (acquisition completed in October 2021) ➢ Acquisition of initial 49% of Nuvisan for consideration of ~EUR145m completed in October 2021 (no contribution to H1 FY22) • Option to acquire remaining 51% (exercisable from 1 January 2024) at 13x adjusted EBITDA based on the
Slide 23: Nuvisan Pharmaceutical Services acquisition
Nuvisan Pharmaceutical Services (acquisition completed in October 2021) Scheduled reduction of outsourcing contract with major pharmaceutical company ➢ There is an outsourcing contract for a large pharmaceutical client which is scheduled to run-off over the coming years, which is common for a contra
Slide 24: Commodities overview – strong organic revenue and margin growth
Commodities overview – strong organic revenue and margin growth Geochemistry Metallurgy Inspection Coal Sample volume +46% vs pcp, +27% vs H1 FY20 Organic revenue growth of Organic revenue growth of Organic revenue decline of Volume increase driven by both major miners (~70% +24% vs pcp dr
Slide 25: Geochemistry – supportive outlook for Commodities
Geochemistry – supportive outlook for Commodities ALS Global mineral sample volume (trailing 52 week running average) and global exploration spend 40 0,0 00 27 Average Weekly Sample Volume 24 35 0,0 00 Global Exploration Spend USD bn 30 0,0 00 Relative Gold Price in USD 21 18 25 0,0 00 15 2006 2007
Slide 26: Geochemistry – strong sample volume growth in H1 FY22
Geochemistry – strong sample volume growth in H1 FY22 ALS Global mineral sample volume to 22 October 2021 (two week growth trend) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18
Slide 27: Junior and intermediate financings and project drilling activity
Strong improvement junior and intermediate fund raisings and pipeline activity Junior and intermediate financings, Aug 2019 – Sep 2021 Project drilling activity by commodity, Aug 2019 – Sep 2021 Copper Lead-Zinc Nickel Gold financings Base/other metals financings Gold Silver PGM Specialty commoditie
Slide 28: Industrial overview – trading conditions remain challenging
Industrial overview – trading conditions remain challenging Asset Care Tribology Organic revenue growth of +1.0% vs pcp despite operational Organic revenue growth of +8.7% vs pcp with all regions performing well challenges in Australia and closure of business in USA Underlying margin decline o
Slide 29: H1 FY22 results: Summary
H1 FY22 results Summary Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner
Slide 30: H1 FY22 results – summary
H1 FY22 results – summary Strong performance driven by Life Sciences and Commodities divisions Organic revenue increase of 23.6% and scope (net of acquisitions and divestments) growth of +1.9% Underlying EBIT margin growth of +299 bps Group Underlying NPAT growth of 57.7% Cash conversion r
Slide 31: FY22 guidance – underlying NPAT of between $242m and $252m
FY22 guidance – underlying NPAT of between $242m and $252m $260 Key drivers • Strong trends from H1 FY22 have continued in early H2 FY22 in Commodities and Life Sciences divisions $250 ➢ H2 FY22 will be compared to a particularly strong pcp +33% compared to FY21 (at midpoint of guidance) • Life Scie
Slide 32: H1 FY22 results appendix
H1 FY22 results appendix Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner
Slide 33: Underlying effective tax rate movement
Underlying effective tax rate movement Change $m H1 FY22 H1 FY21 YoY Underlying Profit before Tax (from continuing operations) 176.8 113.2 56.2% Tax (49.7) (32.5) 52.9% Effective Tax Rate (ETR) 28.1% 28.7% (60) bps FY22 outlook: ETR expected to be between 28% and 29% on an underlying basis 33 Invest
Slide 34: Corporate costs evolution
Corporate costs* evolution Corporate costs * excluding insurance 39.1 40.0 37.0 37.6 2.4% Insurance costs 35.0 Corporate cost % on revenue (ex. insurance) 2.2% 2.2% 30.0 26.5 1.9% 2.0% 2.1% 25.0 22.7 1.9% 1.8% 20.0 1.8% 1.6% 15.0 1.4% 10.0 5.0 1.2% - 1.0% FY18 FY19 FY20 FY21 H1 FY22 Total Corporate
Slide 35: Net debt evolution
Net debt evolution 3 8 70 11 22 (141) 664 614 71 7 31 March 2021 Net Free Cash Flow Acquisitions Dividends paid Treasury shares Fx Interest and Tax Restructuring costs Payback net COVID 30 September 2021 Debt bought on-market subsidies Net Debt 35 Investor Presentation. Half Year Results H1 FY22 Rig
Slide 36: alsglobal.com
Right Solutions • Right Partner alsglobal.com 36 Investor Presentation. Half Year Results H1 FY22 Right Solutions • Right Partner