Als Ltd. · ASX:ALQ
Als — Investor Day (September 2013)
76 slides from Als's investor day presentation, Sep 24, 2013
Slide 1: ALS Open Day – Investors & Analysts: Industrial Division
For personal use only ALS OPEN DAY – Investors & Analysts Industrial Division 24 September 2013 R I G H T S O L U T I O N S | R IGH T PARTN ER
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: Services Offered
Services Offered For personal use only Global Market $4.5bn $450mn RIGHT SOLUTIONS | RIGHT PARTNER 3
Slide 4: Fabrication & Construction: Code Compliance
Fabrication & Construction: Code Compliance For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 4
Slide 5: Condition Assessment & Monitoring, Fitness-for-Service
Condition Assessment & Monitoring, Fitness-for-Service For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 5
Slide 6: Cleveland Technical Centre
Cleveland Technical Centre For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 6
Slide 7: Business Size & Geographies Serviced
Business Size & Geographies Serviced For personal use only Revenue by Business* ($mn) Revenue by Geography* ($mn) 34 19 Asset Care Australasia Tribology North America 136 149 South America * FY13 • Staveley Services Fluid Analysis acquired in 2008 (North America) • PearlStreet acquired in 2010 (Aust
Slide 8: Asset Care Global Market
Asset Care Global Market Market Sector For personal use only Geography 10% 12% 9% 16% 41% 12% 53% 16% 31% Oil & Gas North Amercia Europe Power Generation Asia Pacific Rest-of-World Petrochemical & Chemical Industries Manufacturing & Process Industries Others RIGHT SOLUTIONS | RIGHT PARTNER 8
Slide 9: Market Drivers
Market Drivers For personal use only • Regulation / OHS • Risk Assessment – Operating beyond design life / design capacity • High profile accidents driving increasing regulatory requirements e.g. BP Texas City, BP Deepwater Horizon • Reduced maintenance cost RIGHT SOLUTIONS | RIGHT PARTNER 9
Slide 10: Market Environment
Market Environment • Growth affected by cost pressure across industrial sector For personal use only – Capital project – Fabrication being moved offshore – Shutdown deferrals / scope reduction • Limited cyclicality but increased pressure on price • Accessibility – Integrity programs – typically outs
Slide 11: Divisional Strategy
Divisional Strategy For personal use only • Competitive advantage – Scale – Technical leadership /quality of service • Operating model – Local presence supported by centres of excellence • Future vision – Online monitoring / electronic data capture – Asset health data management, analysis and trendi
Slide 12: Digital Radiography at Queensland Curtis Island
Digital Radiography at Queensland Curtis Island For personal use only $20mn in secured contracts over three year period RIGHT SOLUTIONS | RIGHT PARTNER 12
Slide 13: Historical Performance
Historical Performance 180 20% For personal use only 160 18% 18% 140 16% 16% 14% 120 AUD mn 12% 100 12% Rev 10% 80 EBIT 8% ROS 8% 60 6% 40 4% 20 2% - 0% FY10 FY11 FY12 FY13 Capex 3-4% revenue RIGHT SOLUTIONS | RIGHT PARTNER 13
Slide 14: Questions
Questions For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 14
Slide 15: ALS Open Day – Investors & Analysts: Energy Division
For personal use only ALS OPEN DAY – Investors & Analysts Energy Division 24 September 2013 R I G H T S O L U T I O N S | R IGH T PART N ER
Slide 16: 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 17: Delivering world's best energy sampling, quality analysis and consulting services
For personal use only Delivering world’s best energy sampling, quality analysis and consulting services Enhancing clients’ understanding of their resource, management of product quality, value capture RIGHT SOLUTIONS | RIGHT PARTNER 3
Slide 18: Coal Services
Coal Services For personal use only Field Physical testing Analytical Sampling Chemical and ash analysis Quality assurance Cargo certification Product behaviour & characterisation Consulting Value-in-use and performance ranking The most comprehensive coal quality service provider on the planet RIGHT
Slide 19: Oil & Gas Services
Oil & Gas Services For personal use only Field Analytical Drill tools Rock analysis Surface Logging tools & services Coring / Sampling tools & services Fluid analysis Down hole tools & services Well Monitoring Gauges Gas analysis RIGHT SOLUTIONS | RIGHT PARTNER 5
Slide 20: Scale, global coverage & diversity
Scale, global coverage & diversity For personal use only ALS Energy Services Revenue 9% ALS Coal Services Revenue 37% 5% 6% Middle East Far East and Australasia Africa 35% Europe, Russia & FSU South America North America 89% 4% 8% 7% RIGHT SOLUTIONS | RIGHT PARTNER 6
Slide 21: Cross-sector diversity
Cross-sector diversity For personal use only ALS Energy Division Now 10% Pre-acquisitions 13% Field-based Revenue 29% Lab-based Revenue Products 61% 87% RIGHT SOLUTIONS | RIGHT PARTNER 7
Slide 22: Market Share & Opportunities
Market Share & Opportunities For personal use only ALS Energy Coal Coring Surface Petrophysics Specialist Well Total Service Logging Services & Lines Tools Global Market 19% 30% 4% 1% 3% 6% Share ALS estimates. Excludes non-contestable, non-commercial market components RIGHT SOLUTIONS | RIGHT PARTNE
Slide 23: Volatile Markets
Volatile Markets For personal use only The prevailing price of any given energy commodity is not the only driver of service demand. It is, nonetheless, a significant factor influencing allocation of capital as well as production and exploration Source: World Bank, Spears & Associates, IHS decisions.
Slide 24: Smoothing volatility
Smoothing volatility For personal use only 4 Year Price Index Movement 2.0 Thermal Coal Spot 1.5 West Texas Australian Petroleum & Mineral Exploration intermediate 1.0 Crude $2,500 Henry Hub Combined Spot AUD Millions Per Quarter 0.5 $2,000 Petroleum Average of Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Dec
Slide 25: Inference for the Energy Division
Inference for the Energy Division For personal use only Australian Onshore Petroleum & Coal Exploration $600 $500 Combined Onshore Petroleum $400 AUD Millions Per Quarter Coal $300 4 per. Mov. Avg. (Combined) $200 4 per. Mov. Avg. (Onshore Petroleum) $100 4 per. Mov. Avg. (Coal) $0 Source: Australia
Slide 26: Energy Price Annual Forecasts
Energy Price Annual Forecasts For personal use only 140 10 USD/Unit Oil & Coal 120 8 USD/Unit Gas 100 80 6 60 4 40 2 20 0 0 WTI Spot Thermal Coal $/t @6700kcal/kg Spot Gas ($/bbl) ($/Mmbtu) Source: World Bank, Spears & Associates RIGHT SOLUTIONS | RIGHT PARTNER 12
Slide 27: The Road Ahead
The Road Ahead For personal use only Source: Spears & Associates RIGHT SOLUTIONS | RIGHT PARTNER 13
Slide 28: For personal use only
For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 14
Slide 29: ALS Open Day – Investors & Analysts: Oil & Gas Business Stream
For personal use only ALS OPEN DAY – Investors & Analysts Oil & Gas Business Stream 24 September 2013 R I G H T S O L U T I O N S | R IGH T PART N ER
Slide 30: 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 31: Agenda
Agenda For personal use only • What we do • Where we are • Our Market’s Landscape • Strategy – What makes us different – What to Build – What to Acquire – Our Vision RIGHT SOLUTIONS | RIGHT PARTNER 3
Slide 32: Service Solutions around the Reservoir
Service Solutions around the Reservoir For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 4
Slide 33: Geographic Expansion
Geographic Expansion Almost Everywhere For personal use only Europe R: 134 W: 839 Canada R: 655 W: 10,080 Middle East R: 379 W: 2,662 US R: 1,757 W: 46,880 Africa R: 115 Asia Pac W: 1,705 R: 237 W: 2,561 Latin America R: 414 Legend W: 5,866 R: Rigs W: Wells RIGHT SOLUTIONS | RIGHT PARTNER 5
Slide 34: Our Markets
Our Markets personal use only ALS Corpro Empirica MSI Omega WVN Welltools XDT Petrophysics North 25% 15% 15% 0% 8% 0% 0% 2% America Regional Market Share Latin 20% 0% 5% 5% 0% 0% 0% 5% America Europe 20% 0% 0% 10% 10% 20% 20% 5% Africa 35% 0% 0% 15% 5% 5% 5% 5% Middle 35% 0% 0% 10% 5% 10% 0% 5% East
Slide 35: Our Model
Our Model For personal use only Focus Specialisation Excellence RIGHT SOLUTIONS | RIGHT PARTNER 7
Slide 36: What to Build?
What to Build? For personal use only What we have • geographies • technologies • synergies Core Analysis • leverage on what exists • leverage on coring • leverage on ALS RIGHT SOLUTIONS | RIGHT PARTNER 8
Slide 37: Up-stream Laboratory Market Overview
Up-stream Laboratory Market Overview Upstream Oil and Gas For personal use only Drilling & Core / On-site / On-site Laboratory Reservoir Field cuttings Fluid Near site Storage handling analysis Modelling Development acquisition Acquisition analysis Corpro & Empirica - acquisition & handling Laborato
Slide 38: What to Acquire?
What to Acquire? For personal use only Accelerations • geography • technology • remove nuisance Gateways • new initiatives RIGHT SOLUTIONS | RIGHT PARTNER 10
Slide 39: Our Vision
Our Vision Coring Surface Logging Petrophysics Specialist Well For personal use only Services & Tools Global Technical Innovative Value Coverage Leadership Service Offering Proposition RIGHT SOLUTIONS | RIGHT PARTNER 11
Slide 40: Thank You & Questions
Thank You & Questions For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 12
Slide 41: ALS Open Day – Investors & Analysts: Life Sciences Division
For personal use only ALS OPEN DAY – Investors & Analysts Life Sciences Division 24 September 2013 R I G H T S O L U T I O N S | R IGH T PART N ER
Slide 42: 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 43: Services Offered
Services Offered For personal use only Environmental Food Pharmaceutical Consumer Testing RIGHT SOLUTIONS | RIGHT PARTNER 3
Slide 44: Historical – Life Sciences in 2007
Historical – Life Sciences in 2007 LOCATIONS REVENUE EBIT ROS % For personal use only 34 $165.2mn $23.8mn 14.4 % Australia Canada Chile China Czech Republic Denmark Malaysia Mexico Norway Peru Singapore Sweden Taiwan Thailand USA RIGHT SOLUTIONS | RIGHT PARTNER 4
Slide 45: Today – Life Sciences FYE 2013
Today – Life sciences FYE 2013 LOCATIONS REVENUE EBIT ROS % For personal use only 121 $454.4mn $89.3mn 19.7 % Argentina Australia Brazil Canada Chile China Czech Republic Denmark Ecuador Finland Hong Kong Indonesia Kuwait Malaysia Mexico Norway Peru Poland Portu
Slide 46: Evolution of Business over the Past Six Years
Evolution of Business over the Past Six Years For personal use only 2007 “Pure” Laboratory Based Today: A Holistic View Increased Demand for External Services Future: This Trend will Continue RIGHT SOLUTIONS | RIGHT PARTNER 6
Slide 47: Technical Services Company with Testing at our Core
Technical Services Company with Testing at our Core For personal use only Sampling Services Field Technical Measurements Training and Control Systems Laboratory Testing Inspection Food and Auditing Consultancy Services Logistics RIGHT SOLUTIONS | RIGHT PARTNER 7
Slide 48: Global Commercial TIC Market
Global Commercial TIC Market For personal use only TIC - Available Market 2016 (USD +110 bn) Business Systems Metals & Minerals 5 Environmental 7 7 Food 4 Agro-commodities Automotive 1 26 Pharma & Bio-analytics 20 Marine 4 Trade Assurance Oil, Gas & Chemicals 1 (upstream) 5 Consumer Goods Oil, Gas &
Slide 49: Life Sciences Global available Market in 2016
Life Sciences Global available Market in 2016 For personal use only MARKET USD 43bn Consumer Testing Pharmaceutical Environmental Food 9% 28% 16% 47% RIGHT SOLUTIONS | RIGHT PARTNER 9
Slide 50: ALS Life Sciences Distribution as of FYE 2013
ALS Life Sciences Distribution as of FYE 2013 For personal use only ALS USD 460mn Consumer Testing Pharmaceutical Environmental Food 1% 2% 10% 87% RIGHT SOLUTIONS | RIGHT PARTNER 10
Slide 51: Competitive Advantage
Competitive Advantage For personal use only LIMS Standardized Systems and Processes Global Footprint Service Offerings RIGHT SOLUTIONS | RIGHT PARTNER 11
Slide 52: Strategy – Operating Model
Strategy – Operating Model For personal use only Market Leader Regionally Centers of Excellence Globally Centralize Expertise Model Manages Market Volatility RIGHT SOLUTIONS | RIGHT PARTNER 12
Slide 53: Strategy – Future Vision
Strategy – Future Vision For personal use only • Continued geographic growth in Food and Pharmaceutical in key markets • Global growth for Consumer Testing Industry • Organic growth from existing businesses • Balanced portfolio within Life Sciences • Major Division within ALS RIGHT SOLUTIONS | RIGHT
Slide 54: Divisional and Geographic Revenue post acquisitions
Divisional and Geographic Revenue post acquisitions FY2013 revenue by division – pre and post For personal use only Strategic Vision 2017 11% 13% “…. to be one third Minerals, Minerals one third Life Sciences, and 8% 39% 21% 45% Life Sciences one third other……” Energy 34% Industrial 29% FY2013 reven
Slide 55: Thank You
Thank You For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 15
Slide 56: ALS Open Day – Investors & Analysts: Minerals Division
For personal use only ALS OPEN DAY – Investors & Analysts Minerals Division 24 September 2013 R I G H T S O L U T I O N S | R IGH T PART N ER
Slide 57: 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 58: Minerals Division by Sector
Minerals Division by Sector For personal use only Revenue Split 78% 13% (included) 7% EBIT Split 81% 13% (included) 6% Margin Range 28-32% 27-32% 20-30% 20-22% FTE Split 82% 8% (included) 10% Continents 6 3 6 3 Market Share* 30% 17% <1% (on site) 5% *Company estimates A diverse offering of multi com
Slide 59: Geochemistry Service Overview
Geochemistry Service Overview For personal use only • Market Leadership Position – Samples Processed & Revenue • Largest Geographic Footprint • Technology Leadership Position • Hub & Spoke Model • Genuine Global Integrated Information System (LIMS) • Service Innovators • Lowest Detection Levels • Su
Slide 60: Geochemistry – Service Innovations
Geochemistry – Service Innovations For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 5
Slide 61: World Exploration Trends
World Exploration Trends For personal use only Region ALS Global Geochem Exploration Revenue Spend Africa 13% 17% Aust/Asia 27% 19% Europe/RoW 12% 15% North 35% 24% America Latin 14% 25% America Exploration Spend Data from Metals Economic Group Report December 2012 RIGHT SOLUTIONS | RIGHT PARTNER 6
Slide 62: World Exploration Trends
World Exploration Trends For personal use only Gold– 23 year history Copper – 24 year history - Exploration Data from Metals Economic Group Report December 2012 RIGHT SOLUTIONS | RIGHT PARTNER 7
Slide 63: Metallurgy Service Overview
Metallurgy Service Overview For personal use only • Comminution - Crushing/Grinding Characteristics • Beneficiation – Separation/Concentration • Flotation • Chemical & Thermal Extraction • Piloting – Bench Scale & Large Scale – High Pressure Acid Leach (HPAL) – Ni Laterite (Capex $1.5m) – Atmospheri
Slide 64: Metallurgy Services....Not your typical laboratory
Metallurgy Services....Not your typical laboratory For personal use only ROBOTIC CRUSHING CIRCUIT HPGR PILOT PLANT SAG MILL PILOT PLANT SABC PILOT PLANT RIGHT SOLUTIONS | RIGHT PARTNER 9
Slide 65: Metallurgy Commodity Mix
Metallurgy Commodity Mix For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 10
Slide 66: Inspection Service Overview
Inspection Service Overview For personal use only • Draft Survey / Barge Gauging • On / Off Hire Survey • Condition Survey Marine Services • Marine Cargo Surveying • Pre-shipment /Pre- discharge Inspection • Supervision of loading/discharge/transhipment operations • Tallying and stockpile control •
Slide 67: Mine Site Service Overview
Mine Site Service Overview For personal use only • Centrally administered, Regionally operated • Options: – Build only (MARC Tech) – Build – Operate – Maintain • Currently under represented in the ‘on-site’ sector • Significant opportunity for growth: • 3000 potential targets / 5 yr contract year cy
Slide 68: Mine Site / Near Mine Exposure
Mine Site / Near Mine Exposure For personal use only Other Greenfield Exploration Mine & Near Mine RIGHT SOLUTIONS | RIGHT PARTNER 13
Slide 69: Business Environment
Business Environment For personal use only Global Exploration Expenditure Global Exploration Expenditure RIGHT SOLUTIONS | RIGHT PARTNER 14
Slide 70: Business Environment
Business Environment For personal use only Australian Data Mirrors the Global Trend, but is more contemporary RIGHT SOLUTIONS | RIGHT PARTNER 15
Slide 71: Business in a Down Cycle – Service Diversification
Business in a Down Cycle – Service Diversification For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 16
Slide 72: Business in a Down Cycle - PPP
Business in a Down Cycle - PPP For personal use only • Positioning – Product/Service • Innovative Services (Geochemistry) • Commodity Mix (Metallurgy) • Differentiators (Mine Site) – Price • Low Cost Producer Mantra/ Efficiency/Year of Productivity • Cost Base Management Focus (YoY YTD 30% reduction
Slide 73: Business in a Down Cycle – Hub & Spoke
Business in a Down Cycle – Hub & Spoke For personal use only • Consolidation of Expertise Up Cycle Advantages • Economies of Scale • Turning down the ‘volume’ in the Spokes – Restricted work capacity. E.g.24/7 to 8/5 – Restrict Scope of Services. E.g. Prep only/Analytical to Hub – Overtime ban – Con
Slide 74: Business in a Down Cycle – Systems & Communication
Business in a Down Cycle – Systems & Communication For personal use only RIGHT SOLUTIONS | RIGHT PARTNER 19
Slide 75: Strategic Imperatives
Strategic Imperatives For personal use only Down Cycle Strategic Focus 1. Cost Base Management 2. Service Optimization 3. Targeted Business Development Sustaining Strategic Focus 1. Pursuit of Technical Leadership/Service Innovation 2. Multi Commodity Coverage/Diversification 3. No Geographic Barrie
Slide 76: Questions
Questions For personal use only Questions RIGHT RIGHT SOLUTIONS SOLUTIONS || RIGHT RIGHT PARTNER PARTNER 21