RIGHT SOLUTIONS | RIGHT PARTNER
2012-13 Full Year Result
Investor Presentation May 2013 Greg Kilmister – CEO Paul McPhee – Group General Manager Energy Division
2012-13 Full Year Result Investor Presentation May 2013 Greg - - PowerPoint PPT Presentation
2012-13 Full Year Result Investor Presentation May 2013 Greg Kilmister CEO Paul McPhee Group General Manager Energy Division RIGHT SOLUTIONS | RIGHT PARTNER IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by ALS
Investor Presentation May 2013 Greg Kilmister – CEO Paul McPhee – Group General Manager Energy Division
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 of this presentation in jurisdictions outside Australia may be restricted by law, and you should observe any such restrictions.
respect of securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, securities in any jurisdiction. Neither this document nor anything in it shall form the basis of any contract or
and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate.
derived from public sources that have not been independently verified. No representation or warranty, express
information, opinions or conclusions expressed herein.
looking statements involve known and unknown risks and uncertainties, many of which are outside the control
assumptions with respect to future business decisions, which are subject to change. Any statements, assumptions, opinions or conclusions as to future matters may prove to be incorrect, and actual results, performance or achievement may vary materially from any projections and forward-looking statements.
Company.
Full year FY13 (AUD$mn) FY12 (AUD$mn) Change (%) 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
(16.1)
227.3 222.4 +2.2% EPS1 (underlying - basic – cents per share) 69.53 65.90 +5.5% Dividend (cents per share) 48 45 +6.7%
1 Excludes gain on sale of discontinued operations and impairment loss 2 EBITDA from continuing operations post the sale of the Chemical Division (Deltrex and Panamex)
772 920 826 1,108 1,406 1,499
200 400 600 800 1,000 1,200 1,400 1,600 FY08 FY09 FY10 FY11 FY12 FY13
AUD $m
Revenue
CAGR 24.6%
72 106 75 132 222 238
50 100 150 200 250 FY08 FY09 FY10 FY11 FY12 FY13
AUD $m
Underlying After Tax Profit
CAGR 27.0%
$0.27 $0.39 $0.26 $0.41 $0.66 $0.70
$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 FY08 FY09 FY10 FY11 FY12 FY13
AUD
Underlying Earnings Per Share
CAGR 24.0%
AUD 47% USD 21% CAD 15% EURO 5% GBP 3% Krona 3% ZAR 3% Asia 3%
FY2013 revenue AUD $1.499 billion
Average Exchange Rate FY2013 FY2012 Change USD 1.0323 1.0540
CAD 1.0354 1.0437
EURO 0.8016 0.7614 +5.3% GBP 0.6536 0.6570
SEK 6.8819 6.8549 +0.4% ZAR 8.8238 7.8107 +13.0% SGD 1.2806 1.3158
Note: Krona includes SEK, NOK, DKK & FMM Asia includes HKD, SGD, THB, MYR, IDR, CYN & TWD
ALS (laboratories) Revenue Growth
Reported Growth +12.1%
200 400 600 800 1000 1200 1400 1600 Revenue (AUD$mn)
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Minerals Life Sciences Energy Industrial
Revenue Growth FY2013 Vs FY2012 Organic Acquired FX Movement
19 20 20 28 45 48
10 20 30 40 50 60 FY08 FY09 FY10 FY11 FY12 FY13
AUD cents
Full Year Dividend per Share
20% CAGR
retained at 5% discount
8
10 15 20 25 30 35 40 45 50
CAPEX increased to accelerate expansion of non-geochemistry businesses and upgrade more recent acquisitions to improve margins
50 100 150 200 250 300 350 400 450
EBITDA Cash Flow EBITDA Cash Flow . EBITDA Cash Flow AUD$m
Cash Flow Underlying EBITDA $406 mn +9% Operating Cash Flow $367 mn +16% CAPEX (excl. land & buildings) $80 mn +11%
FY11 FY12 FY13
Mar-12 Mar-13
Statistics
Gearing Ratio Comfort 45% 28.5% 29.3% Leverage (net debt / EBITDA) Max 3.00 0.99 1.02 EBITDA interest cover Min 3.75 23.9 20.7
Balance Sheet Measures ($ mn)
Total Equity 930 997 Net debt 370 413
50 100 150 200 250
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 AUD$m
Bank Debt -Drawn Bank Debt - Undrawn USPP Notes
Debt Maturity
34% 8% 5% 14% 18% 21%
0% 50% 100% 150% 200% 250% 300% 350% 400% Coffey Macmahon Boart Longyear Transfield Services Sedgman Ausenco Worley Parsons Orica Servcorp Ausdrill Clough SGS Monadelphous ALS Cardno Core Laboratories Intertek Bureau Veritas Eurofins Total Shareholder Return (1st April 2010 to 31st March 2013)
Source- Ernst & Young
6%
30% 13% 5% 4% 42%
Revenue $1.34 billion (AUD)
Staff (full time equivalents) 10,900 32% 9% 10%
11% 15% 23%
10% 15% 20% 25% 30% 35% 300 600 900 1,200 1,500 2007 2008 2009 2010 2011 2012 2013
EBITDA Margin ALS Laboratory Services Revenue AUD$ million
ALS Financial Year Ending March
ALS Revenue
SGS Intertek Bureau Veritas Eurofins Core Labs
EBITDA Margin for Core Labs, SGS, Intertek, Bureau Veritas & Eurofins is for Calendar Year 2012 actual. EBITDA Margin & Revenue for ALS excludes non-laboratory businesses but does include all ALS Limited corporate expenses.
ALS
200 400 600 800 1000 1200 1400
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
AUD$m
Revenue
44% 4% 32% 5% 6% 9%
42% 4% 30% 6% 5% 13%
Revenue by Geography FY12 Vs FY13 Australia Asia Nth America Sth America Africa Europe
49% 31% 7% 13%
45% 34% 8% 13%
Revenue by Division FY12 Vs FY13 Minerals Life Sciences Energy Industrial
400 600 800 1,000 1,200 1,400 FY07 FY08 FY09 FY10 FY11 FY12 FY13
AUD$ millions
100 150 200 250 300 350 400 450
FY07 FY08 FY09 FY10 FY11 FY12 FY13
AUD$ millions
The non-Minerals revenue of ALS lab services is now more than ALS’ entire lab services revenue prior to the Global Financial Crisis
Non-Mineral EBITDA margin 21% 24% 20% 24% 23% 25% 25%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
FY2009 FY2010 FY2011 FY2012 FY2013
EBITDA Margin Minerals Life Sciences Energy Industrial
EBITDA margins exclude ALS Limited Corporate Costs
Overview
slowdown in the later part of the first half FY13
Europe and South America very strong
pcp
capabilities integrated with third party mine planning service providers
Outlook
current downturn
2013 2012 Change Revenue $608mn $591mn +3% EBITDA $233mn $234mn
$211mn $215mn
EBIT Margin 34.7% 36.3%
100 200 300 400 500 600 FY09 FY10 FY11 FY12 FY13
Revenue (AUD$mn)
Geochemistry Metallurgy Inspection Other
CAGR 24.6%
1,000 2,000 3,000 4,000 5,000 6,000
Full Time Equivalents
Overview
compared to 60% in FY12 – lower overall margin
Kingdom, South America
improved in final quarter – strong focus on cost base
to two
Outlook
May 2013 provides small exposure to Consumer Product testing market
significant opportunity in South America
2013 2012 Change Revenue $454mn $361mn +26% EBITDA $113mn $96mn +18% EBIT $89mn $78mn +14% EBIT Margin 19.7% 21.7%
100 200 300 400 500 FY09 FY10 FY11 FY12 FY13
Revenue (AUD$mn)
Australia South America Asia North America Europe
CAGR 17.3%
Overview
Site & Superintending
Outlook
reducing exploration spend
although under increasing price pressure
2013 2012 Change Revenue $105mn $88mn +20% EBITDA $36.1mn $26.6mn +36% EBIT $32.6mn $23.7mn +38% EBIT Margin 31.1% 26.9% +420bps
20 40 60 80 100 FY09 FY10 FY11 FY12 FY13
Revenue (AUD$mn)
Australia Asia South Africa North America
CAGR 14.3%
Overview
strongly to FY13 growth
Australia
Australia
plant inspection continued to grow
Outlook
a focus
LNG projects in Queensland
to all locations
development and be rolled out by 4th quarter
2013 2012 Change Revenue $169mn $153mn +11% EBITDA $35.3mn $28.8mn +23% EBIT $30.6mn $24.5mn +25% EBIT Margin 18.1% 16.0% +210bps
40 80 120 160 FY09 FY10 FY11 FY12 FY13
Revenue (AUD$mn)
Australia South America North America