ALS LIMITED — Interim / Quarterly Report 2021

Nov 16, 2021

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H1 FY22 results

Raj Naran, Managing Director and CEO Luis Damasceno, Chief Financial Officer

17 November 2021

Right Solutions • Right Partner www.alsglobal.com

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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.

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Investor Presentation. Half Year Results H1 FY22

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Our sustainability programs

Caring for our people through: Carbon Reduction Plan: Sustainability vision: A safe and healthy workplace 40% reduction in carbon intensity by 2030 Deliver world-class health and safety 40% reduction aligned to limiting outcomes, and attract a diverse, global warming to 1.5[o] C. capable and engaged workforce. People Target Alignment Minimise our environmental Switch to renewables. footprint and build our resilience Invest in solar. to climate-related impacts. Environment Electricity Positively contributing to society Vehicle safety and efficiency Make a positive contribution COVID-19 Testing Community programs standard. to our local communities. Fleet Efficiency Society Operate ethically and responsibly Facilities fit out sustainability to deliver sustainable outcomes Extraction of genetic material standard. for our stakeholders. Governance Building Sustainability

Our commitment to climate action: We aim to be carbon neutral in FY23

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Investor Presentation. Half Year Results H1 FY22

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ESG program – FY22 progress

Health & Safety

Safety Culture/Life Saving Rules

Diversity & Equality Respecting differences Supportive Work Environment

Training & Development Investing in talent development

Innovation & Technology Embracing innovation and technology

People

• Substantial improvement in injury frequency rate.

• Implementation of Women in Leadership Program.

• Hazard observations reporting substantially increased.

Environment

• Commenced installation of 11 solar PV systems for FY2022.

Climate Change

CO ₂ and Greenhouse Gas emissions Task Force on Climate Related Financial Disclosures (TCFD) Efficient buildings, plant and equipment

Waste Reduction

Operational Environmental Performance

Management of adverse environmental emissions Efficient operations

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• Continued rollout of our LED lighting program across our facilities.

• Commenced procurement of renewable energy across multiple countries.

• Pilot fume cupboard efficiency program in progress.

Reduce, reuse, recycle

Society

Economic Contributions

Paying our fair share of tax Donations and Sponsorships

Human Rights

Worker’s rights upheld / Modern Slavery Assessments

Financial Performance

Maximise return for shareholders

Conduct & Culture

Data integrity and traceability Ethical business conduct

Enterprise Risk Management

Management of external strategic, financial, and operational risks

Local Contribution

Community Sponsorships ALS Cares Science Education Programs Local Employment

Regulatory Compliance

Systems to maintain legal compliance Anti–bribery & anti-corruption

Innovation & Technology

Strategy, investment & collaboration / Service lifecycle management

Governance

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• COVID testing for humans, wastewater and surfaces.

• Partnering with local schools and universities to promote science education.

• ALS Cares workplace giving program.

• Internal training plan on Modern Slavery Risks developed.

• Meeting or exceeding Corporations Act and ASX Guideline requirements.

• External assurance assessment of FY21 Sustainability Report completed.

• Cybersecurity analysis completed.

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Investor Presentation. Half Year Results H1 FY22

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Group H1 FY22 performance vs strategic priorities

Shorter-term strategic priorities	H1 FY22 performance
Life Sciences
Strong revenue growth and margin expansion	➢Total revenue growth of +19.0% (+17.8% organic revenue growth) ➢Underlying EBIT margin of +17.7%, +131 bps vs pcp
Commodities
Strong revenue growth and margin expansion	➢Total revenue growth of +37.7% (+41.0% organic revenue growth) ➢Underlying EBIT margin of 29.9%, expansion of +519 bps vs pcp
Increase market-leading position in Geochemistry	➢+46% sample volume vs pcp, +27% vs H1 FY20 ➢Underlying EBIT margin of 33.4%
Industrial
Improve organic revenue growth and stabilise margin	➢+3.0% organic revenue growth with margin decrease of (199) bps margin vs pcp

Longer-term strategic priorities	H1 FY22 performance
Improve sustainability profile of the Group	➢Launched climate change policy targeting 40% reduction in scope 1 and 2 emissions by 2030 ➢Aim to be carbon neutral in FY23
Non-cyclical businesses contribute 50% of Group underlying EBIT at the top of the commodity cycle	➢48% underlying EBIT contribution in H1 FY22 (56% in H1 FY21)
Strong balance sheet to fund growth of Group	➢Lowest leverage ratio (1.5x) in 5 years with ~$720m of liquidity available to fund growth
	➢Completion of acquisition of Nuvisan in October 2021 (not included in H1 FY21), significantly expanding
Strategic acquisitions in key growth markets	Pharmaceutical service offering
	➢Highly disciplined acquisition strategy
Investment in technology and innovation	➢Continued investment across businesses with targeted capex spending on automation, technical infrastructure (such as ‘LIMS’ and ERP platforms) and expansion of capacity

Investor Presentation. Half Year Results H1 FY22

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Group performance

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H1 FY22 statutory results summary

Statutory Results	H1 FY22 ($m)	H1 FY21 ($m)	% change
Revenue	1,031.1	838.8	22.9%
EBITDA	226.5	186.8	21.3%
FX losses transferred from FCTR	(26.9)	-	-
Depreciation, amortisation and impairment losses	(67.3)	(66.4)	1.3%
EBIT	132.3	120.4	9.9%
Interest expense	(19.4)	(21.2)	(8.3)%
Tax expense	(37.9)	(30.1)	25.9%
Non-controlling interests	(0.9)	(0.9)	8.6%
NPAT	74.1	68.2	8.6%
EPS (basic – cents per share)	15.4	14.1	9.2%

• Statutory NPAT increased by $5.9m, primarily due to the net effect of strong underlying results and increased one-off costs primarily due to FX losses transferred from FCTR as part of an internal corporate loan restructure and repayment of government subsidies related to the COVID-19 pandemic

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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 underlying NPAT of $127.1 million

Underlying performance from continuing operations (excludes government subsidies and related direct costs, amortization of intangibles, restructuring costs and other items)

Revenue, $1,031.1m

• **+22.9% vs pcp; +25.5% @ CCY ***

• Organic revenue growth of +23.6% with significant organic revenue growth in Life Sciences (+17.8%) and Commodities (+41.0%)

• Scope growth (net of acquisitions and divestments) of +1.9% driven by strong performance of recent acquisitions including Investiga (Brazil and USA-based pharmaceutical testing company)

• FX impact of -2.6%

• EBIT increase of +$61.9m with margin of 19.1%, expansion of +299 bps vs pcp

EBIT, $197.1m

+45.8% vs pcp; +48.2% @ CCY

• At constant currency, EBIT growth of $65.2m with margin expansion +291 bps

• Life Sciences margin of 17.7%, +131 bps vs pcp driven by volume growth, efficiency gains and reduced depreciation and amortisation recognised in the period following limited capex spend in pcp due to the pandemic

• Exceeded guidance range of $115m to $125m

NPAT, $127.1m

+57.7% vs pcp

• Earnings per share of 26.4 cps, +58.1% vs pcp

• Interim dividend of 15.8 cps (30% franked) compared to 8.5 cps in H1 FY21, an increase of +85.9% compared to H1 FY21, reflecting strong trading conditions and liquidity position

Balance sheet strength and liquidity

• Solid EBITDA cash conversion rate of 85% despite strong organic revenue growth

• Leverage ratio of 1.5x and gearing ratio of 37% (FY21: 1.6x and 36% respectively)

• Strong liquidity ~$720m, including $647m of undrawn bank facilities

• FY22 underlying NPAT guidance of $242m to $252m

FY22 guidance

• Life Sciences: margin expansion of +30 bps (compared to pcp) to 16.5% expected for FY22 with H2 FY22 to be impacted by increase in depreciation and amortisation following growth in capex spend in the pcp

• Commodities: ~ 15% increase in Geochemistry capacity expected to be completed by end of FY22

• Industrial: Asset Care trading environment remains challenging primarily due to Australian state border closures

• Constant currency (CCY) i.e.. excluding FX impact

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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 underlying results from continuing operations by division

H1 FY22 ($m)		Life Sciences	Life Sciences	Life Sciences		Commodities	Commodities	Commodities		Industrial			Total Group	Total Group
H1 FY22			VFY21	VFY20 FY22			VFY21	VFY20 FY22 VFY21 VFY20 FY22					VFY21 VFY20
Revenue 537.9 Organic growth			19.0%	14.8% 383.3 9.3%			37.7%	19.8% 109.9 1.5% (15.9)% 1,031.1 28.4% 3.0% (13.5)%					22.9% 12.2%
			17.8%				41.0%						23.6% 12.7%
EBITDA 131.3 EBITDA margin 24.4%				18.3% 134.4 + 72 bps 35.1%				33.9% 16.4 (13.2)% (27.4)% 259.7 + 369 bps 14.9% (253) bps (236) bps 25.2%
			18.5%				53.4%						31.2% 19.0%
			(10) bps				+ 359 bps						+ 158 bps + 144 bps
EBIT 95.1 EBIT margin 17.7%				24.7% 114.6 + 141 bps 29.9%				39.1% 10.3 (16.3)% (36.9)% 197.1 + 414 bps 9.4% (199) bps (312) bps 19.1%
			28.5%				66.6%						45.8% 24.3%
			+ 131 bps				+ 519 bps						+ 299 bps	+ 186 bps

 Strong improvement in underlying EBIT margin in Life Sciences and Commodities divisions

 Group EBIT margin +299 bps vs pcp, +291 bps vs pcp at constant currency

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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 revenue evolution, +25.5% increase in constant currency

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In $m
+16.2
(21.7)
+197.8
1,031.1
838.8
+25.5% increase @ constant currency
(1)
H1 FY21 Organic Scope FX H1 FY22
Revenue 23.6% 1.9% (2.6)% 22.9%
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• Scope growth (net of acquisitions and divestments) primarily driven by Investiga (recently acquired pharmaceutical testing company)

(1) Translation FX: impact of translating revenue denominated in foreign currencies into AUD (compared to pcp)

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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 revenue growth components by business stream (at constant currency)

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% of revenue
(25.0)% (15.0)% (5.0)% 5.0% 15.0% 25.0% 35.0% 45.0% 55.0% 65.0%
Life Sciences:
Life Sciences 17.8% 3.6%
52%
Geochemistry 59.1%
Metallurgy 24.4%
Commodities:
37%
Inspection 5.7%
Coal (21.2%)
Asset care 0.6%
Industrial:
11%
Tribology 8.7%
100% Total Group 23.6% 1.9%
Organic % Scope % (net of acquisition growth and divestment)
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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 underlying EBIT – strong organic and scope growth

in $m Group Margin Life Sciences Commodities Industrial	in $m Group Margin Life Sciences Commodities Industrial	135.2	135.2 +62.6 +291 bps @ con	135.2 +62.6 +291 bps @ con	135.2 +62.6 +291 bps @ con	197.8 +2.6 stant currency	197.8 +2.6 stant currency	197.1 (3.3)	197.1
		H1 FY21		Organic Scope			FX H1 FY22 (1)
		16.1% +296 bps (5) bps +8 bps 19.1% 16.4% +113 bps (4) bps +22 bps 17.7% 24.7% +570 bps - (52) bps 29.9% 11.4% (214) bps - +16 bps 9.4%
	Life Sciences Commodities Industrial

(1) Translation FX and realised/unrealised FX on working capital

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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 underlying EBIT evolution – strong margin growth

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in $m Other (7.3)
(2.0)
(5.2) (2.1)
+45.8
197.1
+21.1
135.2
(1)
H1 FY21 Life Sciences Commodities Industrial Corporate Fx H1 FY22
Margin 16.1% 17.7% 29.9% 9.4% (2.2)% (0.0)% 19.1%
PCP +131 bps +519 bps (199) bps (12) bps +26 bps +299 bps
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(1) Realised/unrealised FX on working capital

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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 financial summary – reconciliation of underlying to statutory

	H1 FY21 ($m)	H1 FY22 ($m)	H1 FY22 ($m)	H1 FY22 ($m)	H1 FY22 ($m)	H1 FY22 ($m)
Full Year	Underlying (1)	Underlying (1)	Restructuring & other items (2)	COVID-19 Subsidies & Grants net of Direct Costs	Amortization of intangibles	Statutory results
Revenue	838.8	1,031.1	-	-	-	1,031.1
EBITDA	197.9	259.7	(8.7)	(24.5)	-	226.5
FX losses tranferred from FCTR	-	-	(26.9)	-	-	(26.9)
Depreciation & amortization	(62.7)	(62.6)	-	-	(4.7)	(67.3)
EBIT	135.2	197.1	(35.6)	(24.5)	(4.7)	132.3
Interest expense	(21.2)	(19.4)	-	-	-	(19.4)
Tax expense	(32.5)	(49.7)	4.6	6.6	0.6	(37.9)
Non-controlling interests	(0.9)	(0.9)	-	-	-	(0.9)
NPAT	80.6	127.1	(31.0)	(17.9)	(4.1)	74.1
EPS (basic – cents per share)	16.7	26.4				15.4
Dividend (cents per share)	8.5	x.x 15.8				x.x -

1. From continuing operations

2. Primarily associated with FX losses linked to the internal corporate loan restructure

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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 restructuring & other items

in $m		Start-up	Restructuring	Acquisition	Other non- operational items	Total non- recurring costs		COVID-19 subsidies repayment	Total non-recurring
Commodities					0.6	0.6		10.5	11.1
Life Sciences		1.0	0.2		0.1	1.3		10.6	12.0
Industrial			0.5			0.5		3.4	3.9
Corporate				1.4	31.7	33.1			33.1
Total		1.0	0.7	1.4	32.5	35.6		24.5	60.1
Nature of non- recurring costs Losses incurred during start-up phases of new businesses Office closures and severance costs linked to business reorganization and restructuring plans Transactional costs associated with acquisitions Other non- recurring items Government grants repaid in relation to COVID-19, offset by associated direct costs Comments Food and pharma green field start- ups $0.5m linked to closure of Asset Care business in the USA $30m linked to intercompany corporate loan restructure, of which $27m is related to FX losses transferred from FCTR as part of the restructure (no economic impact) Includes payback of subsidies of $3.0m received in Australia (JobKeeper) in the Industrial division, and provision of payback of $21.5m in Canada in the Commodities, Life Sciences and Industrial divisions.
Nature of non- recurring costs		Losses incurred during start-up phases of new businesses	Office closures and severance costs linked to business reorganization and restructuring plans	Transactional costs associated with acquisitions	Other non- recurring items			Government grants repaid in relation to COVID-19, offset by associated direct costs
Comments		Food and pharma green field start- ups	$0.5m linked to closure of Asset Care business in the USA		$30m linked to intercompany corporate loan restructure, of which $27m is related to FX losses transferred from FCTR as part of the restructure (no economic impact)			Includes payback of subsidies of $3.0m received in Australia (JobKeeper) in the Industrial division, and provision of payback of $21.5m in Canada in the Commodities, Life Sciences and Industrial divisions.

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Investor Presentation. Half Year Results H1 FY22

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Capital management strategy

Cash flow from operations

• Solid underlying EBITDA cash conversion of 85% driven by reduction of sales outstanding (DSO) by 4 days

• Continued focus on cash generation (DSO and DPO), leveraging on excellent progress made in H1 FY22

Capex

• Increase in capex by 70% vs pcp. Total capex of $56m representing 5.5% of revenue (3.4% growth and 2.1% maintenance spend)

• Continued investment in growth opportunities in Life Sciences and expanding capacity in Geochemistry

Share buy-back program

• The Board has elected not renew the program given the superior capital allocation opportunities such as investment in organic growth and accretive acquisitions

• Since inception of the buy-back program 21.8 million shares (representing 4.3% of the original base) have been bought back on-market for an overall consideration of $153.4m, at an average share price of $7.04

• The Dividend Reinvestment Plan has been reinstated for eligible shareholders who elect to participate. It will be at an 1.5% discount to the 5-day volume weighted average share price for the period 7 to 13 December 2021. It will be funded by the issuance of new shares

Dividend

• Interim dividend of 15.8 cps (30% franked) compared to 8.5 cps in H1 FY21, increase of +85.9% at a payout ratio of 60% compared to 51% in H1 FY21

• Reflects strong current trading conditions and liquidity position

Balance sheet

• Improvement in leverage ratio (1.5x at September 2021 from 1.6x at March 2021) and gearing ratio (37% at September 2021 from 36% at March 2020)

• Total of ~$720m in liquidity and $664m in net debt at H1 FY22

• Proforma leverage ratio of 2.0x, with $490m of available liquidity had payment of all consideration for the acquisition of a 49% stake in Nuvisan (which was completed in October 2021) occurred in H1 FY22

• Denomination of debt by currency better aligned to Group’s cash flow and net assets, significantly reducing FX risk

• Weighted average maturity of debt extended to 5.4 years as of 30 September 2021 with new Euro denominated debt facility equivalent to AUD$177 million completed in that month

• Strong balance sheet and flexibility to pursue acquisition opportunities and fund organic growth

Acquisitions

• Disciplined acquisition strategy focused on accretive acquisitions, primarily in food and pharmaceutical markets

• Focus on opportunities that fit with existing capabilities or attractive adjacent markets

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Investor Presentation. Half Year Results H1 FY22

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H1 FY22 cash flow – strong cash conversion driven by reduction in DSO

CASH FROM OPERATIONS million (before capex) $198m +$31m vs H1 FY21 EBITDA CASH CONVERSION: 1H22: 85%, 1H21: 99%, 1H20: 73%, 1H19: 76%, 1H18: 69% DAYS SALES OUTSTANDING (DSO) 52 days 4 days vs H1 FY21 CAPEX 56[5.5%] 70% million[=] of revenue vs H1 FY21

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Full year ($m) H1 FY21 H1 FY22
U nderlying operating EBIT 135.2 197.1
Depreciation & amortization 62.7 62.6
Amortization on R OU (22.7) (24.8)
Interest on R OU (3.7) (3.3)
EBITDA (Adjusted for R OU lease assets) 171.5 231.6
Working capital (7.4) (35.7)
Other 2.4 1.9
Cash flow before CAPEX 166.5 197.8
CAPEX (33.2) (56.5)
Acquisitions (1.9) (7.2)
Dividends paid (29.8) (70.6)
Treasury shares bought on-market (2.7) (11.0)
Borrowings – movement (257.9) 8.6
Interest on external debt and tax (53.0) (69.8)
Liquidity Hedge – realised cash FX
(50.8) -
retranslation (hedged against drawn debt)
Restructuring costs (9.9) (7.6)
Net COVID subsidies received 12.4 (3.0)
Net increase/(decrease) in cash (260.3) (19.2)
Opening net cash 423.9 168.6
Effect of FX on cash held (17.0) 4.9
Closing net cash 146.6 154.3
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Analysis includes both continuing and discontinued operations

* Cash flow before capex as % of underlying EBITDA (before AASB 16)

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Investor Presentation. Half Year Results H1 FY22

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Capex by business – targeted spending on key growth opportunities

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$m
35
56
16
4
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CAPEX as % of revenue	Growth	Maintenance	**H1 FY22 ***	H1 FY21
Life Sciences	3.9%	2.6%	6.5%	4.5%
Commodities	3.1%	1.0%	4.1%	3.3%
Industrial	2.1%	1.9%	4.0%	2.7%
Total Group	3.4%	2.1%	5.5%	4.0%
vs. pcp (in bps)	79	80	160

Life Sciences: Green field projects, technology and capacity increase Commodities: Geographical expansion and capacity increase Industrial : Growth initiatives in Tribology

• H1 FY22 capex: +70% increase vs pcp (H1 FY21: $33m) to support organic growth

Excludes acquisition capex

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Investor Presentation. Half Year Results H1 FY22

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Debt metrics – strong balance sheet following completion of Nuvisan acquisition

	Mar-18	Mar-19	Mar-20	Mar-21	Sep-21
STATISTICS
Gearing Ratio(target <45%)	31%	37%	42%	36%	37%
Leverage(net debt/ EBITDA) (max 3.25)	1.7	1.8	2.1	1.6	1.5
EBITDA interest cover(min 3.75)	11.3	10.5	11.0	11.4	14.0
BALANCE SHEET MEASURES
Total Equity(in $m)	1,122	1,083	1,111	1,070	1,126
Net Debt(in $m) (AUD = 0.72 USD)	507	629	800	614	664

Leverage ratio of 2.0x and ~$490m of available liquidity had payment of all consideration for acquisition of a 49% stake in Nuvisan (completed in October 2021) occurred in H1 FY22

Debt Denomination

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Cash Holdings AUD $m
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Debt profile (as at 30 September 2021, AUD $m)

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As at 30 September 2021 As at 30 September 2021 450
21.4%
20.0% 19.4%
AUD, 26 300 50 17.4%
AUD31% USD32% Other, 44 CAD, 5 13.2%
8.7%
150 263 277 283 255
193
SEK, 4 USD, 46 127
EUR CAD SGD, 2 EUR, 19 0
16% 13%
GBP 2022 2023 2024 2026 2030 2034
8% GBP, 8
Bank Debt - Undrawn Capacity Bank Debt - Drawn Long Term Debt - USPP Notes
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• Aligning debt profile with operational cash flow to create a ‘natural hedge’

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Weighted average debt maturity: 5.4 years
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Investor Presentation. Half Year Results H1 FY22

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Review by division

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Life Sciences overview – strong performance across the division

• Total revenue growth of +19.0% vs pcp, of which 17.8% organic, 3.6% scope with -2.4% unfavourable currency impact

• All three businesses and all geographies delivered double-digit organic revenue growth vs pcp

• Strong EBITDA margin of 24.4% despite -10 bps vs H1 FY21, +72 bps vs H1 FY20

• Underlying EBIT margin of 17.7%, +131 bps vs pcp, driven by strong increase in volume, process automation and efficiency gains combined with lower depreciation and amortisation due to limited capex spend in pcp

• Megatrends driving long-term structural growth in Life Sciences markets including:

• Sustainability

• Technological development and connectivity

• Advancement of nutritional and biopharmaceutical markets

Environmental

Food

Pharmaceutical

• Organic revenue growth of +18% vs pcp with particularly strong performance in the Americas

• Organic revenue growth of +16% vs pcp with particularly strong performance in UK and Europe, including Aquimisa (acquired in FY21)

• Organic revenue growth of +21% vs pcp with strong contribution from acquired companies including ARJ and Bioscreen

Underlying results	H1 FY22	H1 FY21	Change	Change inCCY ¹
Revenue	$537.9 m	$452.1 m	+19.0%	+21.4%
EBITDA	$131.3 m	$110.8 m	+18.5%	+19.9%
EBITDA margin	24.4%	24.5%	(10)bps	(30)bps
EBIT	$95.1 m	$74.0 m	+28.5%	+29.4%
EBIT margin	17.7%	16.4%	+131 bps	+109 bps

1 Constant currency (CCY), excluding FX impact

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Investor Presentation. Half Year Results H1 FY22

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Nuvisan Pharmaceutical Services (acquisition completed in October 2021)

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• ➢ Acquisition of initial 49% of Nuvisan for consideration of ~EUR145m completed in October 2021 (no contribution to H1 FY22)

• Option to acquire remaining 51% (exercisable from 1 January 2024) at 13x adjusted EBITDA based on the 12 months preceding the purchase

• ➢ Founded in 1979, based in Germany (6 sites) and France (1 site) with over 1,000 employees

FY21 (full year basis)

REVENUE ~EUR185m

• ➢ Provides full service offering to the drug development contract research organisation (CRO) and contract development and manufacturing organisation (CDMO) markets

Strategic rationale for acquisition

• ➢ Provides platform to significantly expand ALS Pharmaceutical service offering and footprint

EBITDA ~EUR40m

• ➢ Leverage existing ALS network to expand drug development CRO / CDMO services globally

• ➢ Expand service offering to existing clients across Life Sciences network

EBITDA ~21% MARGIN

• ➢ Focus on outsourcing contract wins with major global pharmaceutical companies

• ➢ Provide a ‘centre of excellence’ for innovation and technology research and development for the ALS Pharmaceutical network

PHARMACEUTICAL VALUE CHAIN

NUVISAN SCOPE

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ALS
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DISCOVERY NON-CLINICAL Regulatory PostMFCT QC Phase I Phase II Phase III review Approval 26% 15% 15% 30% +Other <5%

PHARMA R&D SPEND

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Investor Presentation. Half Year Results H1 FY22

22

Nuvisan Pharmaceutical Services (acquisition completed in October 2021)

Scheduled reduction of outsourcing contract with major pharmaceutical company

• ➢ There is an outsourcing contract for a large pharmaceutical client which is scheduled to run-off over the coming years, which is common for a contract of this nature

• ➢ Scheduled reduction of this outsourcing contract was factored into the valuation of the acquisition of the initial 49% stake (at 7.5x EBITDA) in Nuvisan

Key post-acquisition growth plans

• ➢ Leverage existing ALS Life Sciences network to expand drug development CRO / CDMO services globally

• ➢ Expand service offering to existing clients across ALS Life Sciences network

• ➢ Focus on outsourcing contract wins with major global pharmaceutical companies

Post-acquisition update

• ➢ Management and sales teams from ALS and Nuvisan have started working together to implement synergies and leverage potential growth opportunities across both companies

• ➢ Good progress replacing the revenue which is scheduled to run-off with the large pharmaceutical contract, with both existing and potential new clients

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Investor Presentation. Half Year Results H1 FY22

23

Commodities overview – strong organic revenue and margin growth

Geochemistry  Sample volume +46% vs pcp, +27% vs H1 FY20  Volume increase driven by both major miners (~70% of total volume) and junior miners (~30%) in H1 FY22  Organic revenue growth of +59% vs pcp, driven by volume growth, some price gradual rises and increased contribution from junior miners  ‘Hub and spoke’ model leveraged to manage volume growth with ~15% increase capacity anticipated to be completed by end of FY22  Very strong underlying EBIT margin of 33.4%	Metallurgy  Organic revenue growth of +24% vs pcp driven by reactivation of projects delayed by the COVID-19 pandemic and commencement of new projects  New project wins in energy metals due to investment in capability  Strong underlying EBIT margin of 26.5%	Inspection  Organic revenue growth of +6% vs pcp  Commodity trading activity increased as the global economy continued to recovery from the COVID-19 pandemic  Underlying EBIT margin declined to 23.2% (down from 27.7% in the pcp) as global supply chain issues impacted costs	Coal
			 Organic revenue decline of -21% vs pcp and margin decline driven by reduction in superintending volumes  Growth in production (mine site) testing volumes  Underlying EBIT margin declined to 11.7% (down from 18.6% in the pcp)
Underlying results H1 FY22 H1 FY21		Change	Change inCCY ¹
Revenue $383.3 m $278.4 m		+37.7%	+41.0%
EBITDA $134.4 m $87.6 m		+53.4%	+58.7%
EBITDA margin 35.1% 31.5%		+359 bps	+394 bps
EBIT $114.6 m $68.8 m		+66.6%	+73.6%
EBIT margin 29.9% 24.7%		+519 bps	+570 bps

1 Constant currency (CCY), excluding FX impact.

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Investor Presentation. Half Year Results H1 FY22

24

Geochemistry – supportive outlook for Commodities

ALS Global mineral sample volume (trailing 52 week running average) and global exploration spend

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400,000 27
Average Weekly Sample Volume 24
350,000 Global Exploration Spend USD bn
21
300,000 Relative Gold Price in USD
18
250,000
15
200,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
12
150,000
9
100,000
6
50,000
3
0 0
Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21
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• Strong sample volume growth throughout H1 FY22 due to a strong commodity cycle

• Significant amount of capital raised by juniors (~30% of sample volume) over the past calendar year now being deployed

• Gold (50% of volume) and base metals (45% of volume) continue to make up majority of sample volume

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Investor Presentation. Half Year Results H1 FY22

25

Geochemistry – strong sample volume growth in H1 FY22

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ALS Global mineral sample volume
to 22 October 2021
(two week growth trend)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
COVID-19 impact
Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21
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DELTA (last 2 weeks sample volume versus same 2 weeks last year)

• Sample volume +46% for H1 FY22 vs pcp:

• ➢ +27% compared to H1 FY20

• ➢ All regions experienced growth

• Sample volume growth driven by both majors (~70% of volume) and juniors (~30% of volume)

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Investor Presentation. Half Year Results H1 FY22

26

Strong improvement junior and intermediate fund raisings and pipeline activity

Junior and intermediate financings, Aug 2019 – Sep 2021

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Gold financings Base/other metals financings
Specialty commodities financings Number of financings completed
3,500
300
3,000
250
2,500
200
2,000
150
1,500
100
1,000
500 50
0 0
S D M J S D M J S
2019 2020 2021
Amount raised ($M)
Number of financings
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Data as at 18 October 2021. Source: S&P Global Market Intelligence

Project drilling activity by commodity, Aug 2019 – Sep 2021

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Copper Lead-Zinc Nickel
Gold Silver PGM
Minor base metals Specialty commodities Exploration price index
Total drillholes reported
400 7,000
350
6,000
300
5,000
250
4,000
200
3,000
150
2,000
100
50 1,000
0 0
S D M J S D M J S
2019 2020 2021
Data as at 14 October 2021. Source: S&P Global Market Intelligence
Number of reported drillholes
Number of distinct projects drilled / Exploration price index
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• Equity financings for junior and intermediate miners and drilling activity are key lead indicators of Geochemistry sample volume

• Strong increase in activity from late 2020 onwards, across most commodities

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27 Investor Presentation. Half Year Results H1 FY22

Industrial overview – trading conditions remain challenging

Asset Care

Tribology

• Organic revenue growth of +1.0% vs pcp despite operational challenges in Australia and closure of business in USA

• Underlying margin decline of -94 bps to 6.1% impacted by state border closures in Australia and the shutdown of the business in the USA

• Organic revenue growth of +8.7% vs pcp with all regions performing well

• Underlying margin decline of -486 bps to 16.7% impacted by temporary labour shortages and consumable costs, primarily in the USA

Underlying results	H1 FY22	H1 FY21	Change	Change inCCY ¹
Revenue	$109.9 m	$108.3 m	+1.5%	+3.0%
EBITDA	$16.4 m	$18.9 m	(13.2)%	(12.8)%
EBITDA margin	14.9%	17.5%	(253) bps	(267) bps
EBIT	$10.3 m	$12.3 m	(16.3)%	(16.4)%
EBIT margin	9.4%	11.4%	(199) bps	(214) bps

1 Constant currency (CCY), excluding FX impact.

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Investor Presentation. Half Year Results H1 FY22

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Summary

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H1 FY22 results – summary

• Strong performance driven by Life Sciences and Commodities divisions

• Organic revenue increase of 23.6% and scope (net of acquisitions and divestments) growth of +1.9%

• Underlying EBIT margin growth of +299 bps

Group

 Underlying NPAT growth of 57.7%

• Cash conversion rate of 85% despite strong organic revenue growth

• Strong balance sheet with leverage ratio of 2.0x and ~$490m of available liquidity had payment of all consideration for acquisition of a 49% stake in Nuvisan (completed in October 2021) occurred in H1 FY22

• Organic growth of 17.8% and scope growth of 3.6% driven by recent acquisitions including Investiga, double digit organic growth in all businesses and all geographies

Life Sciences

• Margin of 17.7%, growth of +131 bps driven by strong volumes, process automation and efficiency gains combined with lower depreciation and amortisation following reduced capex spend in pcp

• Nuvisan acquisition completed in October 2021, will make a full contribution to H2 FY22

• Geochemistry sample volume increase of +46% vs pcp (+27% vs H1 FY20) with ~15% expansion in capacity anticipated to be completed by the end of FY22

Commodities

• Metallurgy benefitting from increase in mining activity

• Coal impacted by reduction in superintending revenue

Industrial

• Asset Care impacted by Australian state border closures and closure of USA business

• Tribology impacted by temporary labour shortages and increase in cost of consumables in USA

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Investor Presentation. Half Year Results H1 FY22

30

FY22 guidance – underlying NPAT of between $242m and $252m

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$260
$250
+33% compared to FY21
(at midpoint of guidance)
$240
$230
$220
$210
$200
$190
$180
FY22 ($m)
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Key drivers

• Strong trends from H1 FY22 have continued in early H2 FY22 in Commodities and Life Sciences divisions

• ➢ H2 FY22 will be compared to a particularly strong pcp

• Life Sciences margin expansion of +30 bps expected for FY22, with H2 FY22 to be impacted by increase in depreciation and amortisation following growth in capex spend in the pcp

• ➢ All regions performing well in early H2 FY22

• ➢ Some inflationary pressure on consumables, primarily in the USA

• ➢ Guidance includes a 6-month contribution from 49% stake in Nuvisan

• Commodities division continuing to benefit from positive commodity cycle

• ➢ ~15% expansion of Geochemistry capacity anticipated to be completed by the end of FY22 with some further price increases expected during the second half, which may be somewhat offset by some labour shortages and wage inflation

• ➢ Strong pipeline of Metallurgy projects for the second half

• ➢ Stable revenue and underlying EBIT margins in Inspection and Coal

• Industrial trading conditions remain challenging as Asset Care continues to be impacted by Australian state border closures, although Tribology is expected to recover from temporary labour shortages in the USA in H2 FY22

• Long-term, sustainable growth driven by TIC market megatrends including:

• ➢ Increasing requirement for sustainability testing services

• ➢ Technological development and connectivity

• ➢ Advancement of food and biopharmaceutical activities

• ➢ Transition to renewable energy sources

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31 Investor Presentation. Half Year Results H1 FY22

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Underlying effective tax rate movement

Underlying Profit before Tax_(from continuing operations)_ Tax Effective Tax Rate (ETR) $m	176.8 (49.7) 28.1% H1 FY22	113.2 (32.5) 28.7% H1 FY21	Change YoY
			56.2%
			52.9%
			(60) bps
FY22 outlook:ETR expected to be between 28% and 29% on an underlying basis

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Investor Presentation. Half Year Results H1 FY22

33

Corporate costs* evolution

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Corporate costs * excluding insurance 39.1
40.0 37.6
37.0
Insurance costs
35.0Corporate cost % on revenue (ex. insurance)
2.2%
30.0 1.9%
26.5
2.1%
25.0 22.7
1.9%
20.0 1.8%
15.0
10.0
5.0
-
FY18 FY19 FY20 FY21 H1 FY22
Total Corporate
1.8% 2.2% 2.1% 2.1% 2.2%
costs * % of revenue
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• Strict cost control in Corporate

• Maintained the same cost % of revenue vs pcp (excluding insurance costs)

* excludes net foreign exchange gain or loss.

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Investor Presentation. Half Year Results H1 FY22

34

Net debt evolution

(141) 7

614

31 March 2021 Net Free Cash Flow Debt

Acquisitions

11 71

Dividends paid

Treasury shares bought on-market

3 8 70 22 664

Interest and Tax Restructuring costs Payback net COVID 30 September 2021 subsidies Net Debt

Fx

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Investor Presentation. Half Year Results H1 FY22

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36 Investor Presentation. Half Year Results H1 FY22