ALS LIMITED — AGM Information 2012

Jul 30, 2012

Greg Kilmister Managing Director Campbell Brothers Limited

Annual General Meeting 11am on 31 July 2012

Thank you Geoff.

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Ladies and gentlemen.

I concluded my address to you last year by saying “Shareholders, I look forward to reporting back to you next year on what is shaping up to be another record year for your company.”

Our aspirations for that year were met and as already reported to you by Nerolie, we did achieve record revenue and profit in the year just completed; with revenue up 27 percent to $1.4 billion and profit up 68 percent to $222 million. More importantly during the year, we made significant further progress in executing our long-term strategy for the company, and have restructured the company to put in place a platform that provides our best opportunity to continue the growth we have enjoyed over the last few decades. I will give further details on that restructuring later in this address.

Acquisitions made last year, including the Stewart Group in June 2011, Austpower Engineering in October 2011, and Columbia Analytical Services in November 2011, all contributed strongly and continue to improve in performance under our ownership. However, we understand only too well that it is organic growth that creates shareholder value and acquisitions are merely the seeds for future organic growth and hence value creation for the company. In the year just completed $236 million dollars of the $383 million dollars of revenue growth in ALS came from organic growth. This is a great achievement and reflects the strength of the brand in the global markets we service.

During the year we divested PearlStreet Energy Services and the Water Sciences Group of ALS so that we could focus on our core strength built around testing services. I should also highlight the much improved performance of the Reward Distribution Group in turning a $1.8 million dollar loss in 2010-11 into a $3.7 million dollar pre-tax profit in 2011-12. This was a remarkable achievement by the team considering prevailing market conditions.

In the year under review, we continued to invest in our existing facilities, spending a record 83 million dollars excluding properties; mainly on new equipment and services but also building newer bigger more efficient laboratories. The company’s assets and facilities are first class and we will maintain our investment in these facilities to ensure we continue delivering the Return on Equity we have shown over recent years.

This morning I will discuss

• last year’s performance of the individual divisions,

• provide a better insight into the restructuring of ALS,

• and finally provide a little more insight into the guidance given by the Chairman.

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During the year Campbell Brothers generated record revenues of 1.406 billion dollars; a 27 percent increase on the record result of the previous year. We generated a record profit of 222.4 million dollars; a 68 percent increase on the previous record just 12 months ago. Earnings per share were also a record at $3.29. Return on equity was a very healthy 25.6 percent and whilst not a record for the company reflects a very strong performance considering our increased size.

For many years now, the major activity for Campbell Brothers has been its global testing services business, ALS. In the year under review, ALS generated 85 percent of Group revenue, 97 percent of operating profit, and employs 95 percent of total Group staff. Therefore, I will spend most of this address focusing on ALS. However, before I do that I want to say something about our Chemical businesses and also Reward Distribution. Both of these businesses operate in the shadow of ALS but in their own right performed extremely well considering prevailing market conditions and more recent performance history.

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The Chemical Division consists of two operating businesses. Deltrex is an Australian based chemical trading company headquartered in Melbourne. Panamex is a distributer of retail consumables, both as an agent and owned brands, operating predominantly in the Pacific and is headquartered in Auckland.

On a like for like basis, revenue in the Chemical Division grew by 3 percent to 90 million dollars, whilst operating profit grew by 35 percent to 8.1 million dollars. This outstanding improvement was driven by strong commercial disciplines.

Panamex had a particularly strong year, significantly increasing both revenue and operating profit as we saw the benefits flow from strategies put in place some years ago. The business continues to improve performance as a result of those actions.

The Deltrex business saw both revenue and operating profit decline slightly due to continuing softness in the Australian manufacturing sector.

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The Reward Distribution Group supplies non-food consumables to motels, hospitals, restaurants, fast food chains, five-star hotels, nursing homes, sport clubs and the retail sector. In addition it provides design, procurement and fit-out services to new restaurants, accommodation providers, and mine camp developments and refurbishments.

After posting a $1.8 million loss in 2011, the business delivered a solid turnaround in the last year. Whilst revenue declined slightly, Reward generated a $3.7 million operating profit. Reward is still not performing as well as we would like but this is a remarkable turnaround and Andrew Ross and his team are to be congratulated on the work done to date in fixing the business. Unfortunately, business conditions remain very challenging with the hospitality industry in Australia continuing to struggle due to a high cost base and a decrease in discretionary spend dominating the business environment. We do not see this changing in the short-term.

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Now let us move to our global testing services business, ALS.

During the year ALS continued on its long term strategy of geographical and market segment diversification. Our strong commitment to quality, innovation, technical superiority and client service saw the brand continue to strengthen in the global market place.

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For the year under review ALS recorded a 39 percent increase in revenues to $1.2 billion dollars and an increase in operating profit of 61 percent to post a $341 million dollar operating profit for the year. Importantly as can be seen on the slide on the screen, most of the growth was organic as opposed to acquired growth. We achieved 15 percent revenue growth through acquisitions and 24 percent revenue growth through organic growth; far outperforming any of our peers.

We are a truly global company and whilst Australia remains our major market, 56 percent of our revenue is generated overseas. Particularly pleasing was our growth in Europe where we believe we have been under-represented. Sales in Europe for the year under review were in excess of 100 million dollars where only two years ago sales were half that amount.

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Despite the focus of almost all analysts on our market leading minerals business, we also continued the rapid expansion of our non-mineral businesses. It is of interest to note that the revenue generated by ALS’s non-minerals businesses now exceeds the total revenue generated by all of ALS only four years ago, and that our minerals business four years ago was almost 100 percent a geochemical business providing services to the exploration industry, whilst now it is a mix of geochemistry, metallurgy, inspection and an emerging mine services business. All of these changes in market segment and geographical mix help strengthen your company against specific industry downturns.

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The overall operating margin for ALS at 28.6 percent was maintained well above our long term target of 20 percent and all divisions within ALS improved margins compared to the previous year. This is an outstanding result.

This year, I will not go into a detailed analysis of the individual performances of the underlying ALS divisions as I have done in the past. That analysis is well presented in the annual report and I wanted to spend this time talking about the future; in particular the recent restructuring of ALS into four divisions and ten global operating business streams.

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ALS operates in what is generally referred to as the Testing Inspection and Certification market or TIC market for short. This is a global market estimated to be worth up to $300 billion per year. Of that, two thirds is non-contestable work done by in-house, government and semi-government laboratories. An estimated $100 billion dollars is available to commercial laboratory groups such as ourselves. This is a big and growing market and whilst the service providers in this market remain very fragmented, ALS is a very important player. We are one of the top ten TIC companies in the world.

Our strategy is to continue growing as the market for our services grows, but also to increase our market share by focusing on the segments where ALS demonstrates or can demonstrate a clear competitive advantage.

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The slide on the screen shows the new ALS structure put in place in March this year. We have restructured the company from five divisions to four divisions, but more importantly created ten global operating business streams that will create stronger focus on our target markets and provide the technical and human resources necessary to position us strongly in those markets.

The Minerals Division, led by Brian Williams, consists of our traditional Geochemistry and Metallurgy businesses, plus the Inspection business acquired as part of the Stewart Group and a newly formed Mine Services business that will focus on on-site services for operating mines.

The Life Sciences Division, led by Raj Naran, includes our world leading Environmental business plus our Food & Pharmaceutical business. We see the food and pharmaceutical markets as being extremely attractive and is why we acquired Eclipse in the UK and AMS in Ireland earlier this year. Food quality and compliance testing is an important global market; bigger than the global environmental testing market in our estimation. It is a highly fragmented market in which we believe we can take a leadership position. By creating a Life Sciences Division we will put the appropriate focus on this sector.

The Energy Division, led by Paul McPhee, includes our highly respected Coal operations as well as Oil & Gas. We do not presently have many Oil & Gas operations but again see it as a natural and highly attractive market for us. Whilst it will be more difficult to develop, we are confident that with the new focus in this area we will gain traction.

The final division under the restructure is the Industrial Division led by Kristen Walsh. This division includes our Asset Care business previously referred to as our Industrial Division and our used lubricant or Tribology business. Asset Care and Tribology are a natural fit and by being placed under a common leadership will create more opportunities than either business operating independently.

This restructure was not done lightly. It has been under discussion and development for many months. It is the right thing and the right time for the company. We have tremendous momentum and this restructure will create the resource allocation and focus required to continue our past growth into the mid to long term future for your company.

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Of course to support the growth and performance of our operating businesses we need a talented and dedicated corporate and support services team, and further progress was made during the year in ensuring your company operates at the very highest standard.

We maintained our strong focus on ensuring health and safety is firmly engrained in the culture of every single employee. We invested heavily in the commercial and technical development of our staff, ensuring we build the next generation of managers and executives to lead this great company. In the area of Social Responsibility, we ran many projects aimed at reducing energy consumption, reducing waste, recycling, reviewing greenhouse emissions and supporting local community activities where possible.

We ensured diversity in the workplace is real for us; developing tools to measure and monitor diversity to ensure our policies were generating real outcomes.

All of these activities provide pride in the company; not just because of its financial performance but because our staff are proud to wear the company logo.

I would now like to comment briefly on current trading conditions, and provide a little more substance to the after tax profit guidance for the first half of the current year given by the Chairman.

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Markets for all of ALS’s services have been strong through the first quarter of the current financial year, continuing the trend we saw right through the 2011-12 year with all divisions significantly ahead of last year and that trend is expected to continue through the first half. In particular geochemical sample flows from exploration activities continued to grow. Sample flows for the June quarter into our geochemistry laboratories are up 26 percent on the same quarter last year. Activity levels in our metallurgical and coal laboratories also remain very strong although backlogs are well under control due to significant capacity expansion put in place over the last 12 months.

However the signs of a potential weakening in global resources markets have now moved from speculation by economists and analysts to real signs on the ground. Equity raisings by junior explorers have been significantly down for many months now, and as these companies conserve capital, exploration activity is scaled back. Commodity prices whilst still strong compared to long-term trends are down, with expectations of further weakening in the near-term. Concerns about Europe and the

supposed slow-down in China add to negative sentiment. We believe this will lead to a flattening or slight decline in our resources businesses in the second half of the year. We are not expecting a precipitous decline in service demand that we saw at the start of the GFC in 2008 as the fundamentals today are very different.

We are also seeing a slight softening of the market for environmental analytical services in North America; particularly in the USA, and the Australian environmental market is beginning to flatten.

Offset against these potential negatives are of course the opportunities created by investments over more recent years (particularly in Europe), our recent move into the food & pharmaceutical markets and the diversification of our Minerals Division. The strong gold price is also expected to drive growth in exploration in Africa and South America. Whilst things might be more challenging over the next 12 months we remain confident in our ability to increase market share in what may be contracting markets.

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In the year under review we invested 83 million dollars in CAPEX excluding property purchases. We will continue to invest in ensuring our facilities are world class and provide the platform for further long-term growth. Current projects underway include a number of major new laboratories including;

• replacement laboratories in Singapore, Kuala Lumpur, Ulaanbaatar, Loughrea and Brisbane

• new facilities in Kyrgyzstan, Kazakhstan, Indonesia, England and Chile

• an iron ore technical centre in Perth

• and the refurbishment of a number of existing laboratories

All of these activities will ensure we have the assets in place so that we can provide our clients with the quality of service they have come to expect from us, well into the future. I expect CAPEX expenditure this year to be in line with that of last year at approximately 80 million dollars.

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The underlying financial strength of your company remains strong. We have the funding capacity to execute our strategies well into the future.

Gearing, measured as Net Debt to Net Debt + Equity, was 30 percent at March 2012. This level of gearing remains consistent with the conservative 30 to 40 percent historically maintained by the company.

We have long-term, low cost funding in place that can be further extended if the appropriate opportunity arose.

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Great facilities, equipment and systems are not the only key ingredients to our success. We have very dedicated and capable teams all around the world.

Today we employ nearly 13,000 staff globally; a far cry from the 2,000 staff we had just 10 years ago.

I would like to once again acknowledge our employees all around the world that make Campbell Brothers what it is today. Their dedication, loyalty and enthusiasm are a source of great pride to me and I am very privileged to lead such a group.

To the broader executive and management teams in Campbell Brothers, many of whom are here at this meeting, you once again rose to the occasion and on behalf of the shareholders I thank you for those efforts.

To the Board, once again I thank you for your guidance, support, and practical insights.

And finally to our retiring Chairman Geoff McGrath. I have been the CEO of this company for seven years, all under the Chairmanship of Geoff McGrath. Geoff, I thank you for your help in developing my own skills as a CEO. Your enthusiasm and total unacceptance of mediocrity have kept me focused on building the underlying strength of the company whilst delivering immediate performance. Your practical insights, ability to simplify any problem and focus on shareholder best interests will have an enduring impact on the company. On behalf of the board, staff and shareholders I thank you and wish you all the very best. We look forward to you asking some insightful questions from the floor at next year’s AGM.

Shareholders, I look forward to reporting back to you next year on another year in which we can take great pride.

Thank you.