ALS LIMITED — Investor Presentation 2013

May 26, 2013

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2012-13 Full Year Result

Investor Presentation May 2013

Greg Kilmister – CEO

Paul McPhee – Group General Manager Energy Division

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RIGHT SOLUTION S | RIGHT PARTNER

IMPORTANT NOTICE AND DISCLAIMER

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• 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 forwardlooking 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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March 2013 Full Year

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	March 2013 Full Year
	Full year FY13 (AUD$mn) FY12 (AUD$mn) Change (%) Revenue 1,499.3 1,405.6 +6.7% EBITDA1 406.0 373.8 +8.6% EBITDA2from continuing operations 385.8 364.9 +5.7% EBIT1(underlying) 350.3 327.6 +6.9%
	NPAT1 (underlying) 237.9 222.4 +6.9%
	Gain on sale of discontinued operations 5.7 - Impairment (16.1) - NPAT(including capital gain and impairment loss) 227.3 222.4 +2.2% EPS1 (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)

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Historical Trend – Five Year Journey

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Underlying After
Revenue
Tax Profit
AUD $m AUD $m
1,600 250 238
1,499
CAGR 24.6% 1,406 222
1,400 CAGR 27.0%
200
1,200
1,108
1,000 920 150
132
826
772
800
106
100
600
72 75
400
50
200
0 0
FY08 FY09 FY10 FY11 FY12 FY13 FY08 FY09 FY10 FY11 FY12 FY13
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Underlying
Earnings Per Share
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AUD
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$0.70
$0.70
$0.66
CAGR 24.0%
$0.60
$0.50
$0.41
$0.39
$0.40
$0.30 $0.27
$0.26
$0.20
$0.10
$0.00
FY08 FY09 FY10 FY11 FY12 FY13
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Foreign Currency Revenues

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AUD 47% USD 21% CAD 15% EURO 5% GBP 3% Krona 3% ZAR 3% Asia 3% FY2013 revenue AUD $1.499 billion
		Average Exchange Rate
		FY2013	FY2012	Change
	USD	1.0323	1.0540	-2.1%
	CAD	1.0354	1.0437	-0.8%
	EURO	0.8016	0.7614	+5.3%
	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%

Note: Krona includes SEK, NOK, DKK & FMM Asia includes HKD, SGD, THB, MYR, IDR, CYN & TWD

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Revenue Growth - laboratories

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ALS (laboratories) Revenue Growth

• Organic Growth +3.5%

• Acquired Growth +8.8%

• Currency Impact -0.2%

Reported Growth +12.1%

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1600
1400
1200
1000
800
600
400
200
0
Revenue (AUD$mn)
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Revenue Growth FY2013 Vs FY2012

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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
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Dividend

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Full Year Dividend per Share

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AUD
cents 20% CAGR
60
50 48
45
40
30 28
20 20
19
20
10
0
FY08 FY09 FY10 FY11 FY12 FY13
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• Payout ratio 69%

• Franked to 50%

• Dividend Reinvestment Plan retained at 5% discount

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CAPEX (excluding land & building purchases) and Depreciation

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50 45 40 35 30 25 20 15 10 5 -

CAPEX increased to accelerate expansion of non-geochemistry businesses and upgrade more recent acquisitions to improve margins

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Capex (excl properties) Depreciation

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8

Cash Flow and Funding

	Cash Flow	Cash Flow
Underlying EBITDA	$406 mn	+9%
Operating Cash Flow	$367 mn	+16%
CAPEX (excl. land & buildings)	$80 mn	+11%

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AUD$m
450
400
350
300
250
200
150
100
50
0
EBITDA Cash EBITDA Cash . EBITDA Cash
Flow Flow Flow
FY11 FY12 FY13
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			Mar-12	Mar-13
	Statistics
	Gearing Ratio	Comfort 45%	28.5%	29.3%
	Leverage (net debt / EBITDA)	Max 3.00	0.99	1.02
	EBITDA interest cover	Min 3.75	23.9	20.7
	Balance Sheet Measures ($ mn)
	Total Equity		930	997
	Net debt		370	413

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AUD$m
250 Debt Maturity
34%
200
150 21%
18%
14%
100
8%
50
5%
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Bank Debt -Drawn Bank Debt - Undrawn USPP Notes
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9

Total Shareholder Return – last three year period

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M Boar Transfie Worl Mon Core La Bure	M Boar Transfie Worl Mon Core La Bure	M Boar Transfie Worl Mon Core La Bure	ld Services Sedgman Ausenco ey Parsons Orica Servcorp Ausdrill Clough SGS adelphous ALS Cardno boratories Intertek au Veritas Eurofins
			t Longyear
		M	acmahon
			Coffey

Source- Ernst & Young

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ALS - laboratory revenue & staff distribution

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13%
15%
30%
4%
23%
9%
5%
6%
Revenue
10%
$1.34
billion 42%
(AUD) 11%
32%
Staff (full time equivalents)
10,900
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Revenue Growth + Margin Strength

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1,500 35%
Core Labs
1,200 ALS 30%
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
EBITDA Margin
AUD$ million
ALS Laboratory Services Revenue
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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.

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Diversification & Consistent Growth - laboratories

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Revenue

Revenue by Geography FY12 Vs FY13

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AUD$m
13% Australia
1400
5% 9% Asia
6%
6% 5% 42% Nth America
1200 Revenue by Division 44% 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
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Growth of non-Minerals Divisions

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Lab Services Revenue

Lab Services EBITDA

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Non-Mineral EBITDA margin
1,400 450
21% 24% 20% 24% 23% 25% 25%
400
1,200
350
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
AUD$ millions
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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

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Operating EBITDA Margin by Division

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45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
FY2009 FY2010 FY2011 FY2012 FY2013
Minerals Life Sciences Energy Industrial
EBITDA Margin
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EBITDA margins exclude ALS Limited Corporate Costs

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Minerals Division

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	2013	2012	Change
Revenue	$608mn	$591mn	+3%
EBITDA	$233mn	$234mn	-
EBIT	$211mn	$215mn	-2%
EBIT Margin	34.7%	36.3%	-16bps

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600 CAGR 24.6%
500
400
300
200
100
0
FY09 FY10 FY11 FY12 FY13
Geochemistry Metallurgy Inspection Other
Revenue (AUD$mn)
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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% pcp

• Inspection business restructured in Europe

• Mine Site Group established to focus on on-site opportunities

• Completed the Iron Ore Technical Centre in Perth

• Coreviewer[TM ] web based imaging and mapping capabilities integrated with third party mine planning service providers

Outlook

• Hub & Spoke model to provide margin protection in current downturn

• Focus on cost control and delivering client savings

• Santiago (Chile) metallurgy and hub lab operational

• • Upgrade of West African facilities

• New “spoke” opportunities to feed hub laboratories

• Improved margins in Australian metallurgy business

• Geochemistry sample flow to remain under pressure

• Improved performance of Inspection business

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Full Time Equivalents

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6,000 5,000 19% reduction 4,000 3,000 2,000 1,000 0

29% reduction

Geochemistry Metallurgy

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Life Sciences Division

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	2013	2012	Change
Revenue	$454mn	$361mn	+26%
EBITDA	$113mn	$96mn	+18%
EBIT	$89mn	$78mn	+14%
EBIT Margin	19.7%	21.7%	-200bps

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500
CAGR 17.3%
400
300
200
100
0
FY09 FY10 FY11 FY12 FY13
Australia South America Asia North America Europe
Revenue (AUD$mn)
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Overview

• Northern Hemisphere now 65% of divisional revenue compared to 60% in FY12 – lower overall margin

• Food/Pharma revenue increased from $25mn to $60mn

• Successful acquisitions in Denmark, Turkey, United Kingdom, South America

• USA underperformed compared to budget and FY12 but improved in final quarter – strong focus on cost base

• Rationalised four Food/Pharma laboratories in Australia to two

Outlook

• Acquisition of Reliance Group (Hong Kong and China) in May 2013 provides small exposure to Consumer Product testing market

• Slow market growth in more mature markets but significant opportunity in South America

• New chemistry hub being built in United Kingdom

• Food sector remains very attractive

• USA market expected to recover slightly in CY13

• New laboratory in Beijing opened in May 2013

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Energy Division

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	2013	2012	Change
Revenue	$105mn	$88mn	+20%
EBITDA	$36.1mn	$26.6mn	+36%
EBIT	$32.6mn	$23.7mn	+38%
EBIT Margin	31.1%	26.9%	+420bps

CAGR 14.3%

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100
80
60
40
20
0
FY09 FY10 FY11 FY12 FY13
Australia Asia South Africa North America
Revenue (AUD$mn)
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Overview

• Another record year for the global coal business

• Very strong performance in Australia in Bore Core, Mine Site & Superintending

• Focus on innovation and lower cost services

• New coal laboratory built in Mongolia

• Mobile coal laboratory established in Indonesia

• Operating margin in Canada increased by 610bps

• New LIMS (Coal8) rolled out to all Australian operations

Outlook

• Challenging year ahead

• Traditional client base focused on cost cutting and reducing exploration spend

• Exports and production services remain strong although under increasing price pressure

• Focus on productivity and cost management to continue

• ALS oil & gas services to gain traction

• Good scope/environment for acquisitive growth

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Industrial Division

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	2013	2012	Change
Revenue	$169mn	$153mn	+11%
EBITDA	$35.3mn	$28.8mn	+23%
EBIT	$30.6mn	$24.5mn	+25%
EBIT Margin	18.1%	16.0%	+210bps

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160
120
80
40
0
FY09 FY10 FY11 FY12 FY13
Australia South America North America
Revenue (AUD$mn)
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Overview

• Power Services (acquired October 2011) contributed strongly to FY13 growth

• 10% organic growth in Tribology across all regions

• Escalating labour costs in Asset Care business in Australia

• Client cost cutting led to flat year in Asset Care in Australia

• Demand for advanced inspection services and in-service plant inspection continued to grow

Outlook

• Retendering of several significant long term contracts is a focus

• Continued ramp up of non-destructive testing services to LNG projects in Queensland

• Osprey (Asset Care management system) to be rolled out to all locations

• New generation Tribology LIMS to commence development and be rolled out by 4[th] quarter

• Continued focus on expansion outside of Australia

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