ALS LIMITED — Investor Presentation 2014

Oct 7, 2014

==> picture [720 x 293] intentionally omitted <==

Morgans Investor Conference

Investor Presentation October 2014

Greg Kilmister – CEO

==> picture [100 x 97] intentionally omitted <==

RIGHT SOLUTION S | RIGHT PARTNER

IMPORTANT NOTICE AND DISCLAIMER

==> picture [45 x 44] intentionally omitted <==

• 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

RIGHT SOLUTIONS | RIGHT PARTNER

Company Profile

==> picture [45 x 44] intentionally omitted <==

ALS Limited (ASX:ALQ) is an ASX 100 company that provides professional technical services to the global Metals & Mining, Life Sciences, Oil & Gas, and Industrial sectors throughout the world. The Reward business is an Australian distributer of non-perishable hospitality supplies.

==> picture [686 x 358] intentionally omitted <==

----- Start of picture text -----

Market
Coal
Capitalisation Energy Division
$2.1 bn
Oil & Gas
Asset Care
People Industrial Division
12,000
Tribology
Life Sciences Division Environmental
Revenue
$1.5 bn
Food - Pharma
Geochemistry
Minerals Division
Electronics
Countries
Metallurgy
+60
Consumer Products
Reward Distribution
Inspection
Operating
Sites
Mine Site Services
+300
----- End of picture text -----

3

RIGHT SOLUTIONS | RIGHT PARTNER

FY15 YTD – Revenue by Region by Division

==> picture [45 x 44] intentionally omitted <==

==> picture [720 x 396] intentionally omitted <==

7

RIGHT SOLUTIONS | RIGHT PARTNER

Global Location Map

==> picture [45 x 44] intentionally omitted <==

==> picture [708 x 423] intentionally omitted <==

7

RIGHT SOLUTIONS | RIGHT PARTNER

ALS journey over the last decade

==> picture [45 x 44] intentionally omitted <==

==> picture [495 x 140] intentionally omitted <==

----- Start of picture text -----

FY2005 FY2009 FY2014
revenue revenue revenue
$448m $951m $1,503m
----- End of picture text -----

==> picture [140 x 137] intentionally omitted <==

Environmental Food/Pharma Consumer Products Geochemistry Metallurgy Inspection Engineering Oil & Gas Coal Asset Care Tribology Reward Distribution Chemical Campbell Brothers Services

==> picture [654 x 220] intentionally omitted <==

----- Start of picture text -----

1,600 Severn Trent BMP 1,600
Laboratories Enterprises
Feb-13 Feb-14
1,400 McCarthys Analytical Columbia Corplab ALS Taiwan 1,400
Feb-07 Laboratory Analytical Laboratories. Jan-14
Services Inc. Services Dec-12
1,200 Campbell Witlab DataChem Dec-10 Nov-11 OilCheck Pty 1,200
Ecochem Brothers Ltd., Nov-07 Oct-08 Panamex Ltd.
Jan-06 Pest Control & Ammtec Ltd. Austpower Pacific Oct-13
1,000 Brothers Ltd.,Campbell ETL Group Washroom Services ACIRL Pty Ltd Oct-07 May-08 IQA PealStreet Ltd. Nov-10 Engineering. Oct-11 Oct-12 AIT 1,000
Major Laundry Jan-06 Jan-07 Dec-09 Campbell Deltrex Oct-13
& Detergent eLab Stavely Brothers PearlStreet Chemicals
800 Brands Caterworld Consulchem Analytical Inc. Services Ecowise Limited Energy Sep-12 Reservoir 800
Oct-04 Jan-06 Nov-06 Aug-07 May-08 Environmental Cleantec Services Group Ltd.
Pty Ltd.. Business Jul-11 Artek Aug-13
600 HospitalityQCC Hospitality QCC Nov-06 Abilab MineralogyJK Tech Microtech Technical Nov-09 Nov-10 Stewart Group Laboratories Aug-12 PSI Inc . 600
Aug-04 Jun-05 Aug-07 Services Ltd. LabMark Jul-11 Aug-13
Pandee Apr-08 Environmental Milana A.S.
400 Services Laboratories PMS Micro Jul-12 EarthData Pty 400
Acquisition Sep-06 May-10 Jun-11 Eclipse Jul-13 Ltd.
200 Divestment Analytica AB Jul-06 Scientific Group Reliance 200
Apr-12 May-13
0 0
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
----- End of picture text -----

15

RIGHT SOLUTIONS | RIGHT PARTNER

Foreign Currency Revenues

==> picture [45 x 44] intentionally omitted <==

47% 21% 15% 5% 3% 3%3%3% AUD 42% USD 22% CAD 14% EURO 6% GBP 7% Krona 3% ZAR 2% Asia 4% FY2014 revenue AUD $1.503 billion
		Average Exchange Rate
		FY2014	FY2013	Change
	USD	0.9235	1.0323	-10.5%
	CAD	0.9776	1.0354	-5.6%
	EURO	0.6880	0.8016	-14.2%
	GBP	0.5796	0.6536	-11.3%
	SEK	6.0287	6.8819	-12.4%
	ZAR	9.3955	8.8238	+6.5%
	SGD	1.1639	1.2806	-9.1%

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

Outer annulus FY14, Inner annulus FY13

7

RIGHT SOLUTIONS | RIGHT PARTNER

CAPEX (excluding business acquisitions and land & building purchases) versus Amortization & De reciation p

==> picture [45 x 44] intentionally omitted <==

==> picture [588 x 343] intentionally omitted <==

----- Start of picture text -----

25
20
Reservoir Group acquired--
15
10
5
0
AUD$ million
Q1 FY13 CAPEX Q1 FY13 D & A Q2 FY13 CAPEX Q2 FY13 D & A Q3 FY13 CAPEX Q3 FY13 D & A Q4 FY13 CAPEX Q4 FY13 D & A Q1 FY14 CAPEX Q1 FY14 D & A Q2 FY14 CAPEX Q2 FY14 D & A Q3 FY14 CAPEX Q3 FY14 D & A Q4 FY14 CAPEX Q4 FY14 D & A Q1 FY15 CAPEX Q1 FY15 D & A Q2 FY15 CAPEX Q2 FY15 D & A
----- End of picture text -----

Minerals Life Sciences

Energy

Industrial

1 Amortisation does not include amortisation of goodwill – chart represents the quarter in which the CAPEX was approved

8

RIGHT SOLUTIONS | RIGHT PARTNER

Underlying EBIT Margin – peer comparison

==> picture [45 x 44] intentionally omitted <==

==> picture [464 x 302] intentionally omitted <==

----- Start of picture text -----

35%
31.5%
30% • Bottom of the minerals cycle
• Coal industry depressed
• Pricing pressure in environmental
25%
• Oil & Gas operations underperforming
20%
15.8%
14.7% 15.0% 14.9%
15%
9.7%
10%
5%
0%
ALS SGS B.V. Intertek Eurofins Core Labs
----- End of picture text -----

Note: June 2014 Half Year for all companies excluding ALS which is estimated for September 2014 Half Year ALS estimate includes full Corporate Costs (i.e. Group Result excluding Reward operating revenue and profit) Data from company reports

14

RIGHT SOLUTIONS | RIGHT PARTNER

Exploration has not stopped !

==> picture [45 x 44] intentionally omitted <==

Reported significant drill intersections – October 2013 to March 2014

==> picture [94 x 97] intentionally omitted <==

----- Start of picture text -----

11%
22%
5%
13% 2%
47%
----- End of picture text -----

Note: SNL data showing reported significant drill intersections by commodity and location for the six month period October 2013 to March 2014

14

RIGHT SOLUTIONS | RIGHT PARTNER

A reflection of the market and market share Where are we in the cycle?

==> picture [45 x 44] intentionally omitted <==

Geochemical Sample Flow (2 week running average)

ALS Global Mineral Sample Flow (growth trend)

==> picture [680 x 350] intentionally omitted <==

----- Start of picture text -----

ALS Global Mineral Sample Flow (growth trend)
100%
90%
80%
70%
60% Traditional
50% Field Season
40%
7-Jan 7-Mar 7-May 7-Jul 7-Sep 7-Nov
30%
20%
10%
2006 2007 2008 2009 2010 2011 2012 2013 2014
0%
-10%
-20%
-30%
-40%
-50%
-60%
-70%
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
----- End of picture text -----

==> picture [28 x 9] intentionally omitted <==

----- Start of picture text -----

Week
----- End of picture text -----

14

RIGHT SOLUTIONS | RIGHT PARTNER

Oil & Gas Market Exposure

==> picture [45 x 44] intentionally omitted <==

==> picture [677 x 423] intentionally omitted <==

==> picture [720 x 37] intentionally omitted <==

How we see ourselves today – what has changed & why

==> picture [45 x 44] intentionally omitted <==

==> picture [222 x 85] intentionally omitted <==

ALS Market Proposition pre 2012

• Value Proposition – “we are not the cheapest but we provide the very best value”

==> picture [164 x 123] intentionally omitted <==

• Focus on

• Quality

• Service

• Turnaround Time

“White Coat Syndrome”

• Technology

• Innovation – unique services

• Capacity

• Location

ALS Market Proposition Today

• Holistic Service Proposition – “how can we bring value and reduce the total cost of our clients”

• • Focus on

• Ancillary & complementary services

• Supply chain management

• Data presentation & analytics

• Total reliability

• Being a SOLUTION PROVIDER

• Capacity

• Location

but still with the laboratory at the core of what we do

==> picture [163 x 87] intentionally omitted <==

==> picture [86 x 99] intentionally omitted <==

==> picture [165 x 90] intentionally omitted <==

==> picture [89 x 102] intentionally omitted <==

==> picture [139 x 55] intentionally omitted <==

RIGHT SOLUTIONS | RIGHT PARTNER