Investor Presentation Hong Kong 5 th & 6 th October 2016 All - - PowerPoint PPT Presentation

RIGHT SOLUTIONS · RIGHT PARTNER 1 RIGHT SOLUTIONS · RIGHT PARTNER

Investor Presentation

Hong Kong 5th & 6th October 2016

All figures stated in AUD unless otherwise stated

Industrial Commodities Life Sciences

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ALS

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New Business – structure and end market focus

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ALS Strategic Assets Network Brand Systems Technology Culture

• 408 sites
• 73 countries
• 6 continents
• global IT

network

• quality
• timeliness
• service
• innovation
• technology
• value
• LIMS
• MIS
• standardisation
• systemisation
• multi-language
• global
• state-of-the-art
• innovators
• standardisation
• unique
• centres of

excellence

• people
• training
• focus
• client service
• communication
• passion

A L S S t r a t e g i c A s s e t s

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ALS global locations – a strategic asset

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Strategic mix of revenue

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Environmental Food/Pharma Consumer Products Geochemistry Metallurgy Inspection Engineering Oil & Gas Coal Asset Care Tribology

FY06

revenue

$212mn

FY11

revenue

$862mn

FY16

revenue

$1365mn

Group Strategy – geographies & markets

Australia Asia South America North America Africa Europe Middle East

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Strategic mix of revenue

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Debt Metrics

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Life Sciences poised for continued growth

• Pharmaceutical
• Consumer

Products

• Food Safety
• Environmental

and Water Specialized and Complex Testing Increased and Enforced Regulations Infrastructure and Population Growth Public Awareness and Consumer Concern

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Significant opportunities available to ALS

Note: Company estimates

Large Addressable Market Strong Growth Fragmented Market Track Record of Growth Strong Returns Irreplicable Global Platform

Total: US$11bn Environmental: US$4bn Food Safety: US$2bn Pharma: US$5bn ALS Market Share Environmental: 10% Food Safety: 4% Pharma: <1% 400 sites 70 countries Global Network Life Sciences ROIC 19% Life Sciences EBITDA margin 23% Life Sciences FY07-16 Revenue CAGR: 16% Environmental market share increased from 3% to 10% since 2006 Overall: 6% p.a. Environmental: 6% p.a. Food Safety: 7% p.a. Pharma: 6% p.a.

Life Sciences Industry ALS

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Track record of growth – Life Sciences

LOCATIONS REVENUE EBITDA EBITDA% ROIC 34 $165mn $37mn 22% 13% LOCATIONS REVENUE EBITDA EBITDA % ROIC 155 $634mn $145mn 23% 19%

FY07 FY16

ROIC calculated as LTM EBIT / Total Invested Capital. Total invested capital calculated as reported segment assets minus segment liabilities.

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Leading market positions

Note: Company estimates of ALS market share of commercially available work for the services ALS currently offers ALS Current Food and Environmental Market Share Europe (Nordic Region, Eastern Europe, and Iberia) 19% 10% 25% UK Canada USA Latin America Asia Australia 11% 25% 5% 10% 40% 35% 20% 30%

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0% 5% 10% 15% 20% 25% 30% 50 100 150 200 250 300 350 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 Revenue EBITDA Margin

Sustainable strong returns

Historical Life Sciences ROIC(1)

1 ROIC calculated as LTM EBIT / Total Invested Capital. Total invested capital calculated as segment assets minus segment liabilities. 2 Intertek margin represents the Chemicals & Pharmaceuticals division, SGS margin represents the Life Sciences Services and Environmental

Services divisions. Eurofins margin includes Corporate costs

Historical Life Sciences Revenue and EBITDA Margin(2)

EBITDA Margin (%) Revenue ($ millions) Intertek 15% SGS 18% Eurofins 19% 16% 16% 18% 22% 23% 23% 20% 20% 18% 18% 16% 17% 17% 19% 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16

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Mineral cycle at a trough

Source: Australian Bureau of Statistics

Australian Mineral Exploration Spend (excluding iron ore & coal)

100 200 300 400 500 600

AUD $millions

27% decrease 28% decrease 46% decrease 53% decrease 33% decrease

7.5 years 9.0 years 11.0 years GFC Induced 3.2 years

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Platform well positioned to benefit from recovery

1 Estimated EBITDA Margins for SGS, Intertek, Bureau Veritas are for Calendar Year 2015 and 2012 and refer to the Commodities segment for

Intertek, the Commodities segment for Bureau Veritas and the Minerals and O&G & Chemicals Services segments for SGS. EBITDA is underlying EBITDA for all companies

2 SNL Top 10 Ranked Assay Targets for Copper, Gold, Lead, Silver and Zinc published in Quarterly SOTM reports

Historical revenue and EBITDA margin for the Minerals and Energy segments (FY ending March)1 Laboratory Service Provider used for SNL Top Ranked Assay Drill Intersection Announcements 2014-20152

• Leading global platform leveraged to inevitable market recovery
• Enhanced by ongoing cost base management and service optimisation

0.0% 15.0% 30.0% 45.0% 200 400 600 800 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Minerals & Energy Revenue $ millions Minerals & Energy Revenue Minerals & Energy EBITDA Margin Intertek 18% BV 16% SGS 18% Intertek 17% BV 18% SGS 20%

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Mineral cycle – are we past the bottom of the cycle?

$AUD $CAD $USD

SNL Metals & Mining

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Mineral cycle – are we past the bottom of the cycle?

minesite brownfield greenfield

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New Business – structure and end market focus