Slide 1: 2012-13 Full Year Result
2012-13 Full Year Result Investor Presentation May 2013 Greg Kilmister – CEO Paul McPhee – Group General Manager Energy Division 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 • 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: March 2013 Full Year
March 2013 Full Year FY13 FY12 Change Full year (AUD$mn) (AUD$mn) (%) Revenue 1,499.3 1,405.6 +6.7% EBITDA1 406.0 373.8 +8.6% EBITDA2 from continuing operations 385.8 364.9 +5.7% EBIT1 (underlying) 350.3 327.6 +6.9% NPAT1 (underlying) 237.9 222.4 +6.9% Gain on sale of discontinued 5.7 - operations I
Slide 4: Historical Trend – Five Year Journey
Historical Trend – Five Year Journey Revenue Underlying After Underlying Tax Profit Earnings Per Share AUD $m AUD $m AUD 1,600 250 $0.70 1,499 238 $0.70 $0.66 CAGR 24.6% 1,406 222 1,400 CAGR 27.0% CAGR 24.0% $0.60 200 1,200 1,108 $0.50 1,000 920 150 $0.41 $0.39 826 132 $0.40 772 800 106 $0.30 $0.27
Slide 5: Foreign Currency Revenues
Foreign Currency Revenues Asia ZAR Krona 3% 3% GBP 3% Average Exchange Rate 3% EURO FY2013 FY2012 Change 5% USD 1.0323 1.0540 -2.1% CAD 1.0354 1.0437 -0.8% FY2013 revenue AUD CAD 47% EURO 0.8016 0.7614 +5.3% 15% AUD $1.499 billion GBP 0.6536 0.6570 -0.5% SEK 6.8819 6.8549 +0.4% ZAR 8.8238 7.8107 +13
Slide 6: Revenue Growth - laboratories
Revenue Growth - laboratories 1600 ALS (laboratories) Revenue Growth 1400 1200 Revenue (AUD$mn) • Organic Growth +3.5% 1000 • Acquired Growth +8.8% 800 • Currency Impact -0.2% 600 400 200 Reported Growth +12.1% 0 Revenue Growth FY2013 Vs FY2012 Industrial Energy Life Sciences Minerals -5.0% 0.0% 5.0
Slide 7: Dividend
Dividend Full Year Dividend per Share AUD cents 20% CAGR 60 50 48 45 • Payout ratio 69% 40 • Franked to 50% • Dividend Reinvestment Plan 30 28 retained at 5% discount 20 20 19 20 10 0 FY08 FY09 FY10 FY11 FY12 FY13 7
Slide 8: CAPEX and Depreciation
CAPEX (excluding land & building purchases) and Depreciation 50 CAPEX increased to accelerate expansion of 45 non-geochemistry businesses and upgrade more recent acquisitions to improve margins 40 35 AUD$ million 30 25 20 15 10 5 - Capex (excl properties) Depreciation 8 8
Slide 9: Cash Flow and Funding
Cash Flow and Funding Cash Flow Mar-12 Mar-13 Underlying EBITDA $406 mn +9% Statistics Operating Cash Flow $367 mn +16% Gearing Ratio Comfort 45% 28.5% 29.3% CAPEX (excl. land & buildings) $80 mn +11% Leverage (net debt / EBITDA) Max 3.00 0.99 1.02 EBITDA interest cover Min 3.75 23.9 20.7 AUD$m Bala
Slide 10: Total Shareholder Return – last three year period
Total Shareholder Return – last three year period Eurofins Bureau Veritas Intertek Core Laboratories Cardno ALS Monadelphous SGS Clough Ausdrill Servcorp Orica Worley Parsons Ausenco Sedgman Transfield Services Boart Longyear Macmahon Coffey -100% -50% 0% 50% 100% 150% 200% 250% 300% 350% 400% Total
Slide 11: ALS - laboratory revenue & staff distribution
ALS - laboratory revenue & staff distribution 13% 15% 30% 4% 23% 9% 5% 6% Revenue 10% $1.34 billion 42% (AUD) 11% 32% Staff (full time equivalents) 10,900 11
Slide 12: ALS Laboratory Services Revenue Growth + Margin Strength
Revenue Growth + Margin Strength 1,500 35% Core Labs ALS Laboratory Services Revenue 1,200 ALS 30% EBITDA Margin AUD$ million 900 25% SGS 600 Intertek 20% Bureau Veritas 300 Eurofins 15% 0 10% 2007 2008 2009 2010 2011 2012 2013 ALS Financial Year Ending March ALS Revenue EBITDA Margin for Core Labs,
Slide 13: Diversification & Consistent Growth - laboratories
Diversification & Consistent Growth - laboratories Revenue by Geography Revenue FY12 Vs FY13 AUD$m 13% Australia 1400 5% 9% Asia 6% 6% 5% Nth America 42% 1200 Revenue by Division 44% Sth America FY12 Vs FY13 Africa 32% Europe 1000 13% 4% 30% 13% 4% 8% 7% Minerals 800 45% Life Sciences 49% Energy 600
Slide 14: Growth of non-Minerals Divisions
Growth of non-Minerals Divisions Lab Services Revenue Lab Services EBITDA Non-Mineral EBITDA margin 1,400 450 21% 24% 20% 24% 23% 25% 25% 400 1,200 350 1,000 AUD$ millions AUD$ millions 300 800 250 600 200 150 400 100 200 50 - - FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY07 FY08 FY09 FY10 FY11 FY12 FY13 L
Slide 15: Operating EBITDA Margin by Division
Operating EBITDA Margin by Division 45% 40% 35% EBITDA Margin 30% 25% 20% 15% 10% 5% 0% FY2009 FY2010 FY2011 FY2012 FY2013 Minerals Life Sciences Energy Industrial EBITDA margins exclude ALS Limited Corporate Costs 15
Slide 16: Minerals Division
Minerals Division Overview • Reverted from “expansion” to “control” as a result of slowdown in the later part of the first half FY13 • Operating profit growth of geochemical businesses in Europe and South America very strong • Canadian metallurgy business revenue growth of 32% 2013 2012 Change pcp •
Slide 17: Full Time Equivalents
Full Time Equivalents 6,000 5,000 29% reduction 19% reduction 4,000 Full Time Equivalents 3,000 2,000 1,000 0 Geochemistry Metallurgy 17
Slide 18: Life Sciences Division
Life Sciences Division Overview • Northern Hemisphere now 65% of divisional revenue compared to 60% in FY12 – lower overall margin • Food/Pharma revenue increased from $25mn to $60mn • Successful acquisitions in Denmark, Turkey, United 2013 2012 Change Kingdom, South America • USA underperformed com
Slide 19: Energy Division
Energy Division Overview • Another record year for the global coal business • Very strong performance in Australia in Bore Core, Mine Site & Superintending • Focus on innovation and lower cost services 2013 2012 Change • New coal laboratory built in Mongolia Revenue $105mn $88mn +20% • Mobile coal l
Slide 20: Industrial Division
Industrial Division Overview • Power Services (acquired October 2011) contributed strongly to FY13 growth • 10% organic growth in Tribology across all regions • Escalating labour costs in Asset Care business in 2013 2012 Change Australia • Client cost cutting led to flat year in Asset Care in Revenu