ALS LIMITED — Investor Presentation 2013

Apr 4, 2013

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Investor Briefing

Singapore & United Kingdom April 2013 Greg Kilmister - CEO

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RIGHT SOLUTIONS | 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.

2

ALS Company History

Soap & Chemical Company Established

1863

Listed on ASX

1952

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Modern Era

2013

ALS Limited – Today

• Market Capitalization AUD$3.5 billion

• Fourth largest public listed TIC company in the world

ASX 100 participant (Sept 2011)

Annual Revenues +AUD$1.4 billion

12,000 Staff

Operations in 56 countries on 6 continents

Conservative Funding – 28% gearing

Commitment to technical excellence

3

Last Financial Release – September 2012 Half Year

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	H1	H2	H1
half year	FY12	FY12	FY13
	(AUD$m)	(AUD$m)	(AUD$m)
Revenue	667.5	738.1	813.6
EBITDA1	172.0	201.8	227.5
EBITDA1,2from continuing operations	168.3	196.6	223.4
Gain on sale of discontinued operations	-	-	5.8
Impairment	-	-	(6.1)
EBIT1	150.1	177.5	200.5
NPAT	102.3	120.1	135.5
EPS (basic – cents per share)	30.3	35.6	39.8
Dividend (cents per share)	19	26	21

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)

4

Revenue Growth

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ALS (laboratories) Revenue Growth

• Organic Growth 15%

• Acquired Growth 12%

• Currency Impact 0%

Reported Growth 27%

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800
700
600
500
400
300
200
100
0
Revenue (AUD$mn)
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Revenue Growth H1 2013 Vs H1 2012

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Industrial
Energy
Life Sciences
Minerals
-5% 0% 5% 10% 15% 20% 25% 30% 35%
Organic Acquired FX Movement
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5

ALS Divisional Structure

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• Four Global Divisions

• • Ten Business Streams

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13%
7%
49%
31%
Revenue 2012 – AUD$1.2 billion
Strategy
20%
33%
14%
33%
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Revenue 2012 – AUD$1.2 billion

Revenue 2017 – AUD$2.0 billion

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Global Diversification & Technical Leadership

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>12,000 staff

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>$1.3 billion 56 revenue countries +20 million >300 samples/year laboratories 9 service lines

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7

ALS - laboratory revenue & staff distribution

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15%
20%
29%
4%
24%
10%
5%
7%
10%
Revenue
>$1.3 40%
billion 10%
26%
Staff
11,000
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8

Diversification & Consistent Growth

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1400 1,000
100
1200
10
1
1000
Financial Year – ending March
800
SECTOR
600 MINERALS LIFE SCIENCES ENERGY INDUSTRIAL
7% [13% ]
400 47%
33%
200
0
Financial Year – ending March
Revenue ($ million)
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9

Revenue Growth + Margin Strength

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ALS Revenue AUD$ million
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1,500 35%
Core Labs
1,200 30%
ALS
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
ALS EBITDA Margin ALS Revenue
EBITDA Margin
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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 corporate expenses. Data for Financial Year ending March 2013 based on current guidance.

10

Operating EBITDA Margin by Division

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45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
FY2009 FY2010 FY2011 FY2012 H1 FY2013
Minerals Life Sciences Energy Industrial
EBITDA Margin
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EBITDA margins exclude ALS Limited Corporate Costs

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CAPEX (excluding properties) and Depreciation

50 CAPEX increased to accelerate expansion of 45 non-geochemistry businesses and upgrade more recent acquisitions to improve margins 40 35 30 25 20 15 10 5 - Capex (excl properties) Depreciation

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12

12

Conservative Funding

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				Mar-09	Mar-10	Mar-10	Mar-11	Mar-12	Jan-13
	Statistics
	Gearing Ratio		Comfort 45%	33.7%	18.9%		11.9%	28.5%	28.8%
	Leverage (net debt / EBITDA)		Max 3.00	1.04	0.94		0.47	0.99	1.04
	EBITDA interest cover		Min 3.75	14.0	14.1		23.2	23.9	21.1
	Balance Sheet Measures
	Total Equity			413		630	826	930	1034
	Net debt			210		147	111	370	417
	0 50 100 150 200 250 AUD $million	33.8% 7.6% 4.6% 14.5% 18.3% 21.3% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Long term Debt - USPP Notes Bank Debt - Undrawn Capacity Bank Debt Drawn (Weighted average maturity: 6.15 years)

Facility Maturity

13

What makes us different

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• Assets

• State of the art laboratories

• High end technical services

• Unique service offerings

• Operating Model

• Hub and spoke

• Centres of Excellence

• Systems and standards

• “Decentralised” laboratory Vs many laboratories

• People

• Training

• Passion

• Culture

• Loyalty

• Communication

• Strategy

• Long-term horizon

• Focus

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• Execution

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14

What makes us different

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• Management Information Systems (MIS)

• LIMS

  • GEMS – Geochemical

  • Coal8 – Coal

  • EnviroLIMS – Environmental

  • SAM – Tribology

  • ELMS – Food

  • OSPrey – Asset Care

• Webview – Management Interface

• WebTrieve[TM ]

• Other Portals

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• iLEAD – training

• EPC – succession planning

• Compliance

• Financial – TM1

• CAPEX

• Safety Tracking

• Human Resources

• Business stream Sharepoint sites

• • Support group Sharepoint sites

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15

World Exploration Trends (excl. iron ore & coal)

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• Data from Metals Economic Group Report December 2012 -

Gold– 23 year history Copper – 24 year history

Zinc– 24 year history

16

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ALS Geochemistry Revenue CY2012

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100%
90%
80% 33%
70%
60%
24%
50%
40% greenfield
30%
brownfield
43%
20%
10%
0%
North South Africa Australia Europe Asia Total
America America
Majors Intermediates Juniors
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50% of all geochemistry work comes from existing mining operations

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