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 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 of this presentation in jurisdictions outside Australia may be restricted by law, and you should observe any such restrictions. • This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in 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 commitment. This presentation is not intended to be relied upon as advice to investors or potential investors 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. • The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. • This presentation includes forward-looking statements within the meaning of securities laws. Any forward- looking statements involve known and unknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forward-looking statements may also be based on estimates and 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. • Due care and attention should be undertaken when considering and analysing the financial performance of the Company. • All references to dollars are to Australian currency unless otherwise stated. 2
March 2013 Full Year FY13 FY12 Change Full year (AUD$mn) (AUD$mn) (%) Revenue 1,499.3 1,405.6 +6.7% EBITDA 1 406.0 373.8 +8.6% EBITDA 2 from continuing operations 385.8 364.9 +5.7% EBIT 1 (underlying) 350.3 327.6 +6.9% NPAT 1 (underlying) 237.9 222.4 +6.9% Gain on sale of discontinued 5.7 - operations Impairment (16.1) - NPAT (including capital gain and impairment loss) 227.3 222.4 +2.2% EPS 1 (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) 3
Historical Trend – Five Year Journey Underlying After Underlying Revenue Tax Profit Earnings Per Share AUD $m AUD $m AUD $0.70 1,600 250 238 $0.70 1,499 $0.66 CAGR 24.6% 222 1,406 CAGR 27.0% CAGR 24.0% 1,400 $0.60 200 1,200 1,108 $0.50 1,000 920 $0.41 150 $0.39 132 $0.40 826 772 800 106 $0.30 $0.27 100 $0.26 600 75 72 $0.20 400 50 $0.10 200 $0.00 0 0 FY08 FY09 FY10 FY11 FY12 FY13 FY08 FY09 FY10 FY11 FY12 FY13 FY08 FY09 FY10 FY11 FY12 FY13 4
Foreign Currency Revenues Asia ZAR 3% Krona 3% 3% GBP Average Exchange Rate 3% EURO FY2013 FY2012 Change 5% USD 1.0323 1.0540 -2.1% CAD 1.0354 1.0437 -0.8% AUD FY2013 revenue CAD 47% EURO 0.8016 0.7614 +5.3% AUD $1.499 billion 15% GBP 0.6536 0.6570 -0.5% SEK 6.8819 6.8549 +0.4% ZAR 8.8238 7.8107 +13.0% SGD 1.2806 1.3158 -2.7% USD 21% Note: Krona includes SEK, NOK, DKK & FMM Asia includes HKD, SGD, THB, MYR, IDR, CYN & TWD 5
Revenue Growth - laboratories 1600 ALS (laboratories) Revenue Growth 1400 Revenue (AUD$mn) 1200 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% 10.0% 15.0% 20.0% 25.0% 30.0% Organic Acquired FX Movement 6
Dividend Full Year Dividend per Share AUD cents 20% CAGR 60 50 48 Payout ratio 69% • 45 Franked to 50% • 40 Dividend Reinvestment Plan • retained at 5% discount 30 28 20 20 19 20 10 0 FY08 FY09 FY10 FY11 FY12 FY13 7
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 AUD$ million 35 30 25 20 15 10 5 - Capex (excl properties) Depreciation 8 8
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 Balance Sheet Measures ($ mn) 450 Total Equity 930 997 400 Net debt 370 413 350 AUD$m 300 Debt Maturity 250 250 34% 200 200 150 150 21% 18% 100 14% 100 50 8% 50 5% 0 EBITDA Cash EBITDA Cash . EBITDA Cash Flow Flow Flow 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FY11 FY12 FY13 Bank Debt -Drawn Bank Debt - Undrawn USPP Notes 9
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 Shareholder Return (1st April 2010 to 31st March 2013) Source- Ernst & Young 10
ALS - laboratory revenue & staff distribution 13% 15 % 30% 4% 23 % 9% 5% 6% Revenue 10 % $1.34 42% billion 11 % (AUD) 32 % Staff (full time equivalents) 10,900 11
Revenue Growth + Margin Strength 1,500 35% ALS Laboratory Services Revenue Core Labs 1,200 30% ALS EBITDA Margin AUD$ million 900 25% SGS 600 20% Intertek Bureau Veritas Eurofins 300 15% 0 10% 2007 2008 2009 2010 2011 2012 2013 ALS Financial Year Ending March ALS Revenue 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. 12
Diversification & Consistent Growth - laboratories Revenue Revenue by Geography FY12 Vs FY13 AUD$m 13% Australia 1400 9% Asia 5% 6% Nth America 5% 6% 42% 1200 44% Revenue by Division Sth America FY12 Vs FY13 Africa 32% Europe 1000 13% 4% 30% 13% 4% 8% Minerals 7% 800 45% Life Sciences 49% Energy 600 31% Industrial 34% 400 200 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Financial Year – ending March 13
Growth of non-Minerals Divisions Lab Services Revenue Lab Services EBITDA Non-Mineral EBITDA margin 1,400 450 21% 24% 20% 24% 23% 25% 25% 400 1,200 350 AUD$ millions AUD$ millions 1,000 300 800 250 200 600 150 400 100 200 50 - - FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Life Sciences Energy Industrial Minerals The non- Minerals revenue of ALS lab services is now more than ALS’ entire lab services revenue prior to the G lobal F inancial C risis 14
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
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 • Inspection business restructured in Europe Revenue $608mn $591mn +3% • Mine Site Group established to focus on on-site opportunities EBITDA $233mn $234mn - • Completed the Iron Ore Technical Centre in Perth EBIT $211mn $215mn -2% • Coreviewer TM web based imaging and mapping capabilities integrated with third party mine planning EBIT Margin 34.7% 36.3% -16bps service providers Outlook CAGR 24.6% 600 Hub & Spoke model to provide margin protection in • Revenue (AUD$mn) 500 current downturn 400 Focus on cost control and delivering client savings • Santiago (Chile) metallurgy and hub lab operational 300 • Upgrade of West African facilities • 200 New “spoke” opportunities to feed hub laboratories • 100 Improved margins in Australian metallurgy business • 0 Geochemistry sample flow to remain under pressure • FY09 FY10 FY11 FY12 FY13 Improved performance of Inspection business • Geochemistry Metallurgy Inspection Other 16
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