Investor presentation & appendix FY20 results - international - PowerPoint PPT Presentation

Investor presentation & appendix FY20 results - international roadshow Raj Naran, Managing Director and CEO Luis Damasceno, Chief Financial Officer 4 June 2020 Right Solutions • Right Partner www.alsglobal.com 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 Investor Presentation. Full Year Results FY 2020. Right Solutions • Right Partner

Safety is a priority - ALS COVID-19 response Safety guidance Equipment • Handwashing and sanitation information; • Additional sanitation products and PPE; • Hygiene and routine disinfection information • IT resources to enable virtual meetings and procedures; and remote working; • Screening for, and information for, • Additional guarding, equipment, and employees feeling unwell; walkways to reduce personal contact; • Physical distance markings and signs • No contact transfer stations installed for throughout facilities; delivery of incoming samples and goods. • Detailed response and contingency plans. Communication Restrictions • Regular communication to employees; • On the number of people per common rooms and spaces; • Website and social media announcements and communication to clients. • Only essential visitors or contractors permitted on sites; • On social gatherings; • On international and regional travel. 3 Investor Presentation. Full Year Results FY 2020. Right Solutions • Right Partner

FY20 results Group performance Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner

FY20 underlying NPAT of $188.8 million and statutory NPAT of $127.8 million Underlying performance from continuing operations below Organic revenue growth of +5.1% (Life Sciences +5.9%, Commodities +0.6%, Industrial +15.2%) • Revenue growth • Scope growth (acquisition and divestment) of +1.9% $1,832 m, +10.0% vs pcp Favourable currency impact of +3.0% • EBIT* EBIT increase of $16.8m • Life Sciences margin at 15.3%, +35 bps pcp (on track to reach +50bps target before impact of COVID-19 ) $297.9 m, +6.0% vs pcp • Earnings per share* of 39.1 cps, +5.4% pcp • NPAT* within guidance Final dividend of 6.1 cps compared to 11.5 cps in FY19, reflecting conservative capital management strategy • $188.8 m, +4.3% vs pcp and demonstrating a strong liquidity position Strong EBITDA* cash conversion rate at 97.1% • Balance sheet strength • Leverage ratio of 2.1x and gearing ratio of 41.9% and liquidity Projected liquidity of ~$650m including $200m of increased bank facilities • Diversified portfolio of businesses and geographies have proved resilient during COVID-19 pandemic to date with • many deemed as ‘essential businesses’ and continue to operate Management acted swiftly to align cost base to client demand by leveraging ‘hub and spoke model’ • Managing through Total revenue decline of 9% in April 2020 (compared to pcp) primarily due to economic shutdowns. Several • COVID-19 economies started to relax restrictions in last few weeks although too early to tell the impact on sample volumes Capacity for innovation (including launch of new COVID-19 testing services), disciplined acquisition strategy and • supportive structural market trends to drive long-term growth * Underlying from continuing operations before applying AASB 16. 5 Investor Presentation. Full Year Results FY 2020. Right Solutions • Right Partner

Revenue growth components of diversified business streams (at constant currency) % of revenue (3.0%) - 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% Life Sciences: Life Sciences 5.9% 3.3% 51% Geochemistry (1.2%) Metallurgy (2.6%) Commodities: 35% Inspection 6.5% 8.9% Coal 12.1% Asset care 17.6% Industrial: 14% Tribology 9.1% 100% Total Group 5.1% 1.9% Organic % Scope % (net of acquisition growth and divestment) 6 Investor Presentation. Full Year Results FY 2020. Right Solutions • Right Partner

Underlying EBIT growth driven by Life Sciences (continuing operations) in $m +19 +3 (5) (0) 297.9 281.1 2 1 FY19 Life Sciences Commodities Industrial Others FY20 Margin 16.9% 15.3% 25.3% 9.7% 16.3% PCP +35 bps (172) bps (38) bps (63) bps 1. Corporate costs + FX 2. Underlying EBIT before applying AASB 16 7 Investor Presentation. Full Year Results FY 2020. Right Solutions • Right Partner

Underlying EBIT growth driven by accretive acquisitions and FX gains (continuing operations) in $m +16.3 +4.4 (4.0) 297.9 281.1 281.5 277.2 277.2 1 FY19 Organic Scope FX FY20 Margin 16.9% 16.3% (1.2) pts +0.1 pts +0.5 pts 1. EBIT before applying AASB 16 8 Investor Presentation. Full Year Results FY 2020. Right Solutions • Right Partner

FY20 financial summary FY19 ($m) FY20 ($m) Full Year Underlying Underlying Restructuring Divestment & Impairment and Applying Discontinued Statutory Underlying* before after & other one- other business amortisation of AASB 16* operations Results AASB 16* AASB 16* off items closures intangibles Revenue 1,664.8 1,831.9 - 1,831.9 - 4.2 - - 1,836.1 EBITDA 352.9 378.8 52.7 431.5 (15.5) (0.7) 54.1 - 469.4 Impairment - - - - - - - (90.0) (90.0) Depreciation & amortisation (71.8) (80.9) (44.8) (125.7) - (1.1) - (7.6) (134.4) EBIT 281.1 297.9 7.9 305.8 (15.5) (1.8) 54.1 (97.6) 245.0 Interest expense (32.0) (33.4) (7.9) (41.3) (0.4) (0.7) - - (42.4) Tax expense (67.1) (74.0) - (74.0) 0.9 - - - (73.1) Non-controlling interests (1.0) (1.7) - (1.7) - - - - (1.7) NPAT - (15.0) (2.5) 54.1 (97.6) 181.0 188.8 188.8 127.8 EPS (basic – cents per share) 37.1 - - 39.1 - - - - 26.5 Dividend (cents per share) - - - - - - 22.5 - 17.6 * continuing operations 9 Investor Presentation. Full Year Results FY 2020. Right Solutions • Right Partner

Cash flow – strong cash conversation Full year ($m) FY19 FY20 Underlying operating EBIT (before AASB 16) 275.6 296.0 50 CASH FROM 73.3 81.2 Depreciation & amortisation OPERATIONS EBITDA (before AASB 16) 348.9 377.2 million (35.4) (17.9) Working capital 97.1% EBITDA Other 2.9 7.0 cash conversion* 316.4 366.3 Cash flow before CAPEX (before AASB 16) CAPEX (108.9) (121.1) Acquisitions (65.8) (119.1) CAPEX Divestments 5.7 66.9 million = 121 6.6% Dividends paid (98.0) (112.0) of revenue (24.6) (22.0) Issued capital bought back Borrowings - movement 29.6 349.7 (82.3) (129.4) Interest and tax (AASB 16 adjusted) Restructuring costs (12.3) (13.9) (40.2) 265.4 Net increase/(decrease) in cash Opening net cash 187.2 148.3 Effect of FX on cash held 1.3 10.3 Closing net cash 148.3 423.9 Analysis includes both continuing and discontinued operations * Cash flow before CAPEX as % of Underlying EBITDA (before AASB 16) 10 Investor Presentation. Full Year Results FY 2020. Right Solutions • Right Partner