Slide 1: Full Year Results FY2016 Investor Presentation
one ALS Life Sciences Commodities Industrial Full Year Results FY2016 Investor Presentation 30th May 2016 All figures stated in AUD unless otherwise stated 1 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: ALS Business Streams
ALS Business Streams Environmental FY2016 Revenue Food Pharmaceutical Life Sciences Consumer Products Geochemistry Minerals Mine Site Metallurgy Industrial Trade Inspection Asset Care Energy Environmental Food Tribology Pharmaceutical Consumer Products Geochemistry Mine Site Coal Metallurgy Trade In
Slide 4: New Business – structure and end market focus
New Business – structure and end market focus •Environmental How do our end markets want to interact with ALS? •Food •Pharmaceutical “One ALS” Project •Industrial Hygiene • promoting a broad range of services to an end Life Sciences •Consumer Products market • packaging services • cross business str
Slide 5: FY 2016 Financial Summary
FY 2016 Financial Summary FY15 Full Year FY16 ($mn) ($mn) Restructuring & Amortisation of Continuing Continuing Impairment Statutory Full year Underlying Underlying Charges other one off Intangibles Results items Revenue 1422.2 1364.9 1364.9 EBITDA 305.4 264.3 (317.9) (13.9) (67.5) Depreciation & am
Slide 6: Revenue Waterfall (AUD$ million)
Revenue Waterfall (AUD$ million) +24 +1 -10 +5 +2 -9 -7 -3 -101 +52 flat flat Industrial Minerals performance performance strong -11 Life Sciences growth severe Oil & Gas contraction $1,422 million $1,365 million 6 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 7: ALS global locations – a strategic asset
ALS global locations – a strategic asset Life Sciences Industrial Minerals Energy Revenue 7 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 8: Margin Strong at the Bottom of the Cycle
Margin Strong at the Bottom of the Cycle 1,500 30% ALS Revenue AUD$ million 1,200 Core Labs 24% SGS Exova Bureau Veritas Intertek EBITDA Margin 900 Eurofins 18% Applus 600 12% Mistras 300 6% 0 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ALS Financial Year Ending March ALS EBITDA Margin ALS
Slide 9: Group Taxable Earnings – franking capacity
Group Taxable Earnings – franking capacity Australian versus Off-shore Taxable Profits Australian Profits Off-shore Profits 100% 80% 60% 40% 59% 20% 30% 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9 RIGHT SOLUTIONS · RIGHT PARTNER
Slide 10: Debt Metrics
Debt Metrics Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Statistics Gearing Ratio comfort 45% 29% 29% 34% 38% 27% Leverage (net debt/EBITDA) max 3.00 1.0 1.0 2.2 2.5 1.7 EBITDA interest cover min 3.75 23.9 21.0 12.2 9.1 7.7 Balance Sheet Measures Total Equity (AUD mn) 930 997 1,419 1,228 1,186 Net Debt (AUD
Slide 11: Cash Flow
Cash Flow FY15 FY16 Full year AUD mn AUD mn Underlying operating profit (EBIT) 223.3 177.9 Depreciation & Amortisation 83.7 86.4 • Cash Flow Working capital 2.7 (6.3) CAPEX (76.5) (73.7) • free cash flow down $ 66.6mn Other(1) 22.8 5.1 • EBITDA cash conversion 97.1% Free cash flow 256.0 189.4 • CAPE
Slide 12: Strategic mix of revenue
Strategic mix of revenue Revenue FY16 FY16 end-customer sector mix Cyclical Non-Cyclical Other Mineral Manufacturing 5% Exploration 8% 15% Engineering Inspection Government Metallurgy 7% Geochemistry Oil & Gas: Infrastructure exploration & Coal production Environmental & Property Development 17% Oil
Slide 13: Strategic mix of revenue
Strategic mix of revenue Revenue 1,600 $ millions 1,400 1,200 1,000 800 600 400 200 - FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Life Sciences Tribology Asset Care (downstream) Mineral Inspection Cyclicals • Multi-year strategy of growing the non-cyclicals t
Slide 14: Life Sciences Division
Life Sciences Division Overview • revenue and EBIT growth in all regions • Life Sciences revenue up by 14%, with Food/Pharma revenue up 34% • strong recovery in margin in Australia due to increased 2016 2015 Change market share and cost control initiatives • new chemistry hub in Chatteris (UK) commi
Slide 15: Industrial Division
Industrial Division Overview • solid organic tribology growth across all regions • Tribolab acquisition in Brazil performed in line with expectation for first six months of ownership • Maverick integration complete and new site opened in 2016 2015 Change Louisiana to expand Gulf Coast footprint • fu
Slide 16: Minerals Division
Minerals Division Overview: • Geochemistry underlying EBIT margin 19% • Metallurgy Markets challenging in all regions • Inspection EBIT margin improved to 27% - some price pressure realised in H2 • Mine Site pipeline continued to grow however project 2016 2015 Change timeline extensions delayed awar
Slide 17: Global Mineral Exploration Market
Global Mineral Exploration Market Market Trends Analytical Spend Drivers value USD$ billion 400 20 Expenditure rebased to 100 350 DOLLARS 300 15 250 200 10 price 18% 150 generic innovative SERVICE 100 5 50 0 0 • ALS continued investment to maintain technical capabilities and feed innovation to high
Slide 18: Global Exploration Market
Global Exploration Market SNL Data • calendar years 2014 and 2015 • ten best intersections reported for gold, copper, lead, zinc, silver and nickel per quarter • 387 reported intersections analysed • ALS estimate of analyzing laboratory for 18% each reported intersection • number of reports per regi
Slide 19: Energy Division
Energy Division Overview – Oil & Gas • global Oil & Gas markets remain volatile • pricing pressure and delayed projects • new products introduced and gaining market acceptance • Cedar Turbine • QuickCapture V2 2016 2015 Change • Houston laboratory fully commissioned and gaining market traction Reven