Slide 1: Investor presentation H1 FY23 Results
Investor presentation H1 FY23 Results Raj Naran, Managing Director and CEO Luis Damasceno, Chief Financial Officer © Copyright 2022 | ALS Limited 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer Highlights 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 dis
Slide 3: Delivering on our Corporate Social Responsibility performance
Delivering on our Corporate Social Responsibility performance Highlights 2H21 1H22 2H22 1H23 Financial review 3.2 3.2 2.7 3.9 Ahead of Industrial Industry Average Business review AA AA AA AA Achieved AA rating 4 years in a row Comprehensive Status Outlook Leading Leading Leading Comprehensive 1 Rati
Slide 4: H1 FY23 financial highlights
H1 FY23 financial highlights1 Highlights Revenue • Strong financial performance, 13% organic and 10% scope revenue growth supported by both Commodities and Life Sciences $1.27B • Group EBIT margin expansion to 19.9%, +65 bps vs pcp Financial review +23.9% growth • NPAT and interim dividend increase
Slide 5: Underlying EBIT margin growth strategy
Underlying EBIT margin growth strategy Highlights Underlying Group EBIT margin • Underlying Group margin expansion of 19.9% 65 bps in a challenging economic 19.3% environment Financial review • Commodity margin expansion driven by price improvement and volume growth Business review H1 FY22 H1 FY23 •
Slide 6: H1 FY23 operational highlights
H1 FY23 operational highlights Highlights Life Sciences Commodities Industrial Sustainability Earnings growth Continued demand Undertaking improvement plan Progress on sustainability agenda Financial review • Continued to grow recurring • Strong revenue growth and • Tribology: delivering solid • Rec
Slide 7: On strategy acquisitions supporting our 5-year strategic plan
On strategy acquisitions supporting our 5-year strategic plan Highlights 8 acquisitions ~$90 million1 revenue Acquisition performance ACHIEVEMENTS: completed YTD according to business plan Financial review Scope revenue in H1 FY23 distribution by region and division Business review ExplorTech DB Lab
Slide 8: Financial review
Financial review Group performance © Copyright 2022 | ALS Limited 8
Slide 9: H1 FY23 statutory results
H1 FY23 statutory results1 Summary Highlights Statutory Results H1 FY23 ($m) H1 FY22 ($m) % change • Statutory NPAT increased by $73.3m primarily due to: Revenue 1,194.2 1,023.3 16.7% Financial review - Net effect of strong underlying EBIT EBITDA 309.3 226.5 36.6% improvement of $55m vs pcp FX losse
Slide 10: Underlying NPAT of $164.3 million, exceeded guidance
H1 FY23 Underlying NPAT of $164.3 million1, exceeded guidance • Strong organic revenue growth of +13.1% with significant organic revenue growth in Commodities (+26.6%) and Life Sciences (+6.8%) Highlights Revenue • Scope growth (the net of acquisitions and divestments) of +10.2% driven by revenue co
Slide 11: H1 FY23 revenue evolution, +23.3% increase in constant currency
H1 FY23 revenue evolution, +23.3% increase in constant currency Continued market leading growth Highlights in $m +6.2 Financial review +103.8 +134.5 Business review 1,267.9 1,023.3 Outlook +23.3% increase @ constant currency Q&A H1 FY22 Organic Scope FX (1) H1 FY23 Revenue 13.1% 10.2% 0.6% 23.9% • O
Slide 12: H1 FY23 divisional highlights
H1 FY23 divisional highlights1 Organic revenue growth and EBIT margin expansion across both Life Sciences and Commodities Highlights • Total revenue reached $656.0 million, a total increase of 23.8% with solid organic growth of 6.8% and acquisition contribution of 16.5%. All businesses and key regio
Slide 13: H1 FY23 revenue growth components by business stream
H1 FY23 revenue growth components by business stream Strong organic growth and contribution from recent acquisitions Total growth Highlights % of revenue @ CCY Life Sciences: Life Sciences 6.8% 16.5% 23.3% 52% Financial review Geochemistry 31.4% 5.4% 36.8% Metallurgy 31.8% 31.8% Commodities: Busines
Slide 14: H1 FY23 underlying EBIT
H1 FY23 underlying EBIT Continued to expand Group margin in a challenging economic environment Highlights in $m +10.5 0.0 Financial review +44.7 Business review 252.3 197.1 +74 bps @ constant currency Outlook H1 FY22 Organic Scope (1) FX (2) H1 FY23 Group Margin 19.3% +163 bps (89) bps (9) bps 19.9%
Slide 15: H1 FY23 financial summary
H1 FY23 financial summary Reconciliation of underlying to statutory NPAT Highlights H1 FY22 ($m) H1 FY23 ($m) Underlying results Half Year Nuvisan equity share (including Nuvisan Nuvisan underlying Restructuring & other Amortisation of Statutory Underlying (1) of profit incl in proportionately resul
Slide 16: Disciplined and pro-active capital management
Disciplined and pro-active capital management Highlights • Strong Group liquidity of $433m and balance sheet capacity to pursue acquisitions and fund organic growth • Solid leverage ratio (1.9x as at September 2022) and improved EBITDA interest cover (17.0x) • 80% of total drawn debt is fixed at an
Slide 17: H1 FY23 cash flow
H1 FY23 cash flow Continuing to deliver strong cash conversion Full year ($m) H122 H1 FY23 CASH FROM OPERATIONS (before capex) Underlying operating EBIT 197.1 252.3 Highlights Depreciation & amortization 62.6 79.2 $ $229m +32m vs H1 FY22 Amortization on ROU (24.8) (32.9) Interest on ROU (3.3) (3.9
Slide 18: Operational capex by business
Operational capex by business Continue to invest in key growth opportunities Highlights in $m • Operational capex maintained at the same level as last year. Total capex of $57m representing 4.5% of revenue (3.1% growth and 1.4% maintenance spend) • Continued investment in growth opportunities in Lif
Slide 19: Debt metrics
Debt metrics Balance sheet remains strong and well within targeted gearing range Highlights Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 STATISTICS (BANK COVENANTS) Leverage (net debt/ EBITDA) (max 3.25) 1.8 2.1 1.6 1.9 1.9 Financial review EBITDA interest cover (min 3.75) 10.5 11.0 11.4 15.3 17.0 BALANCE SHE
Slide 20: Business review
Business review H1 FY23 Investor Presentation © Copyright 2022 | ALS Limited 20
Slide 21: Life Sciences overview
Life Sciences overview Continued growth across the division in a challenging economic environment • Total revenue growth of +23.8% vs pcp, of which 6.8% organic, 16.5% scope with a 0.5% favourable currency impact • Long-term strategy to become a global leader in testing: Highlights • All businesses
Slide 22: Commodities overview
Commodities overview Strong organic revenue and margin growth Highlights Geochemistry Metallurgy Inspection Coal • H1 FY23 Sample volume +17% vs pcp, +71% vs HY21 • Organic revenue growth of +31.8% • Organic revenue growth • Organic revenue decline • Volume increase was driven by both major miners (
Slide 23: Industrial overview
Industrial overview Focus on the execution of business margin improvement plan Highlights Asset Care Tribology • Organic revenue decline of (6.7)% vs pcp following the decision made • Organic revenue growth of +5.6% vs pcp with key countries performing last year to close the US operations. Australia
Slide 24: Outlook
Outlook © Copyright 2022 | ALS Limited 24
Slide 25: A resilient and tested business model
A resilient and tested business model Highlights 1 2 3 4 Positioned to Portfolio Strong cash Balance sheet capture industry re-aligned with generation capacity to Financial review megatrends decarbonisation supporting support growth trends dividends and agenda shareholder returns Business review Out
Slide 26: Outlook for FY23
Outlook for FY23 Executing and delivering in a challenging economic condition Highlights FY23 guidance - Underlying NPAT of between $300 - $320 million Key drivers: Financial review +17% compared to FY22 (at midpoint of guidance) • Gradual implementation of price increases and focus on margin improv
Slide 27: Questions
Questions © Copyright 2022 | ALS Limited 27
Slide 28: Appendix
Appendix H1 FY23 Investor Presentation
Slide 29: H1 FY23 underlying results by division
H1 FY23 underlying results by division Strong organic growth and margin expansion Highlights H1 FY23 ($m) Life Sciences Commodities Industrial Total Group (1) H1 FY23 V H1 FY22 H1 FY23 V H1 FY22 H1 FY23 V H1 FY22 H1 FY23 V H1 FY22 Financial review Revenue 656.0 23.8% 503.4 31.3% 108.5 (1.3)% 1,267.9
Slide 30: H1 FY23 underlying EBIT evolution
H1 FY23 underlying EBIT evolution Margin remains above target floor of 19% Highlights in $m Other (1.2) 2.7 (1.3) Financial review (3.9) +41.6 +16.2 Business review 252.3 197.1 Outlook H1 FY22 Life Sciences Commodities Industrial Corporate FX (1) H1 FY23 Q&A Margin 19.3% 17.0% 31.0% 8.3% (2.1)% 0.2%
Slide 31: H1 FY23 restructuring and other items
H1 FY23 restructuring and other items Acquisition / SaaS system Other non-operational Total non-recurring Highlights in $m Start-up Restructuring Divestment development items costs Commodities - - - - - - Financial review Life Sciences 1.9 0.6 - - 0.5 3.1 Industrial - - - - - - Corporate - - 3.2 2.9
Slide 32: Underlying effective tax rate movement
Underlying effective tax rate movement Highlights Change $m H1 FY23 H1 FY22 YoY Financial review Underlying Profit before Tax (from continuing operations) 231.7 177.7 30.4% Tax 66.7 49.7 34.2% Business review Effective Tax Rate (ETR) (28.8)% (28.0)% (82) bps H2 FY23 outlook: ETR expected to be betwe
Slide 33: Net debt evolution
Net debt evolution Highlights Leverage Ratio Leverage Ratio 1.9x 1.9x (3) 60 Financial review 7 43 77 Business review (172) 114 1,028 Outlook 902 Q&A Appendix 31 March 2022 Net Free Cash Flow Acquisitions net of Dividends paid Treasury shares bought Fx Interest and Tax Restructuring costs 30 Septemb
Slide 34: Geochemistry
Geochemistry Double-digit increase on sample flows supported by strong demand Highlights ALS Global mineral sample volume (trailing 52-week running average) and global exploration spend Average Weekly Sample Volume Global Exploration Spend USD bn Relative Gold Price in USD Financial review 450,000 2
Slide 35: Geochemistry
Geochemistry Double-digit increase on sample flows supported by strong demand Highlights ALS Global mineral sample volume to 04 Nov 2022 | two-week growth trend 100% 90% Financial review 80% 70% 60% 50% Business review 40% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 36: Fund raisings reflect economic environment but drilling remains above 2020 levels
Fund raisings reflect economic environment but drilling remains above 2020 levels Highlights Junior and intermediate financings | August 2020 – September 2022 Project drilling activity by commodity | August 2020 – September 2022 Financial review Business review Outlook Data as at 10 October 2022. Da
Slide 37: right solutions. right partner.
right solutions. right partner. © Copyright 2022 | ALS Limited 37