ALS LIMITED — Investor Presentation 2015

Nov 30, 2015

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Investor Day

Perth– Australia

1[st] December 2015

Greg Kilmister – ALS overview Raj Naran – Life Sciences Kristen Walsh - Industrial Brian Williams - Minerals

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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 forward-looking statements involve known and unknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forwardlooking 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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ALS Limited – Investor Day (Perth 1[st] December 2015)

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ALS Limited
Greg Kilmister
CEO
Oil & Gas Business Life Sciences Division
Greg Kilmister Raj Naran
CEO Group General Manager
Minerals Division Industrial Division
Brian Williams Kristen Walsh
Group General Manager Group General Manager
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Company Profile

ALS Limited (ASX:ALQ) is an ASX 100 company that provides professional technical services to the global Mineral and Energy Resources (exploration, extraction, processing and trading), Life Sciences (environmental, food and pharmaceutical), and Industrial sectors throughout the world.

• +11,000 employees

• +400 sites

• +70 countries

• AU$1.4 billion revenue

• 504 million[1] shares (96% free float)

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geochemistry
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tribology
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metallurgy
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asset care
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asset care
food/pharma
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mineral
inspection
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consumer
products
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mine site
laboratories
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coal
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environmental

oil & gas

1 Post the 5 for 21 Accelerated Non-Renounceable Rights Entitlement Offer

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Compliance and Sustainability

• Core values of “Safety as a Priority” and “Honesty and Integrity” supported by long term compliance program.

• Strong internal controls maintained by compliance portal which incorporates company policies, management sign-offs, environmental monitoring programs, training packages, incident databases, and performance tracking.

• Corporate Social Responsibility program tracks environmental performance, ensures efficient use of resources such as energy, encourages environmental initiatives including recycling programs, and promotes positive interaction with local communities.

• ALS continued its involvement in community and charity work with major recipients including the Red Cross, Unicef, the Salvation Army, and various hospital and cancer foundations.

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Health Safety and Environment

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Performance at a glance:

Lost Time Injury Frequency Rate

Total Recordable Incident Frequency Rate

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10
8 ALS Group LTIFR
8 6 • Lowest LTIFR ever
6 4 Historical low achieved for the
4 2.4 [2.8] 3 2.3 1.8 2.1 1.6 Group.
2 • Reduction in LTIFR
0
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ALS Group LTIFR

• Reduction in LTIFR accomplished across all Divisions.

ALS Group TRIFR

• Half the ASX top 100 average. *

• 65% reduction over last 5 years.

• *Per Citi Research “Safety Spotlight: ASX Companies & More” July 2015.

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12 10.9 10.8
10
ASX Top 100 ave. = 8.0
8
6.7
6 5.0 5.2
3.8
4
2
0
2011 2012 2013 2014 2015 HY2016
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Financial Year: April 2015 – September 2015

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Total Score: 85.24%
PPI Scorecard
on track to
achieve > 90%
target.
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Positive Performance Scorecard

Focus on Training and Continuous Improvement

Client Recognition

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100%

Earnings and Debt Position

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Australian versus Off-shore Profits

Australian Profits Off-shore Profits

80% 60% 40% 58% 20% 0%

25%

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Post
Mar-
Sep-14 Capital
15
Raising
c
Funding statistics
o
Gearing ratio Comfort 45% 35.5% 38.3% 26% d v
e
e
Leverage (net debt / EBITDA Max 3.25 2.7 2.5 1.8 n
b
a
EBITDA interest cover Min 3.75 8.8 9.1 9.2 t
n
t
AU$ mn s
Debt Maturity
400 post Capital Raising
350 30%
300
24% 24%
22%
250
200
150
100
50
0
2014 2015 2016 2017 2018 2019 2020 2021 2022
USPP Notes Bank Debt - Undrawn
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1 Gearing ratio is net debt / net debt + total equity; 23.25x is temporary and will revert to 3.0x effective 31 March 2016 in the absence of being extended by lenders; 3 EBITDA / net interest expense

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Debt Position – “earning currencies” a natural hedge

Debt Denomination

Invoice Currency

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Latin
America African
Asian Currencies Currencies
Currencies
European AUD
Currencies
GBP
CAD
USD
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CZK
SGD
EUR
GBP
CAD
USD
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Regional Diversification – H1FY16

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Revenue

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6% 3%
5%
31%
32%
3%
20%
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EBITDA

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2%
9%
7%
25%
29%
5%
23%
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Australia Asia South America North America Africa Europe Middle East

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H1FY16 – Revenue by Region by Division

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Mineral Division
Life Sciences Division
Industrial Division
Energy Division
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Strategic Goal

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in a nut shell……

To be the market leader in any geography or market sector we operate - by creating an enduring competitive advantage.

what does that look like……

• Technical leadership

• Innovative services

• Continually evolving services

• Holistic full service

• Flexible service delivery approach

• Data management

• Providing the “Right Solutions” as opposed to just a “Bundle of Services”

• Being the “Right Partner” as opposed to the “Right Service Provider”

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Group Strategy – geographies & markets

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H1FY16
7% H1FY11 revenue
H1FY06 revenue $712mn
revenue $419mn
$97mn 20%
32%
44%
34
42 % 34%
%
31%
Australia Asia South America North America
Africa Europe Middle East
36%
31
% 37%
65
%
36%
19%
Environmental Food/Pharma Consumer Products Geochemistry Metallurgy
Inspection Engineering Oil & Gas Coal Asset Care Tribology
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Australia Asia South America North America
Africa Europe Middle East
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Environmental Food/Pharma Consumer Products Geochemistry Metallurgy

Inspection Engineering Oil & Gas Coal Asset Care Tribology

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ALS Laboratory Revenue – strategic mix

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Revenue by Quarter
100%
80%
Cyclical
60%
40%
20%
Non-Cyclical
0%
Revenue by Quarter
400
350
300
Cyclical
250
200
150
100
50
0
Life Sciences Industrial Minerals Energy
Jun-00 Mar-01 Dec-01 Sep-02 Jun-03 Mar-04 Dec-04 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08 Jun-09 Mar-10 Dec-10 Sep-11 Jun-12 Mar-13 Dec-13 Sep-14 Jun-15
Millions
Jun-00 Mar-01 Dec-01 Sep-02 Jun-03 Mar-04 Dec-04 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08 Jun-09 Mar-10 Dec-10 Sep-11 Jun-12 Mar-13 Dec-13 Sep-14 Jun-15
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H1FY16
Cyclical Non-Cyclical
Engineering
Inspection
Metallurgy
Geochemistry
Environmental
Coal
Oil & Gas
Food/Pharma
Asset Care
Tribology
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ALS Strategic Assets

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Network
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A L S S t r a t e g i c A s s e t s

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Culture
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• • • • • 400+ sites quality LIMS state-of-the-art people • • • • • 70+ countries timeliness MIS innovators training • • • • • 6 continents service standardisation standardisation focus • • • • • global IT network innovation systemisation unique client service • • • • technology multi-language centres of communication • • • value global excellence passion

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Life Sciences Division

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ALS Limited
Greg Kilmister
CEO
Environmental
Life Sciences Division
Oil & Gas Business
Food - Pharma
Greg Kilmister Raj Naran
CEO
Group General Manager
Electronics
Consumer Products
Minerals Division Industrial Division
Brian Williams Kristen Walsh
Group General Manager Group General Manager
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Life Sciences Overview

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Underlying [1]
H1 FY16 H1 FY15 Change
results (AU$)
Revenue $318mn $276mn +15%
EBITDA $76mn $66mn +16%
EBIT $59mn $51mn +16%
EBIT Margin 18.5% 18.4% +10 bps
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Overview

• Environmental

• Grew revenue by 13% over H1 FY15

• Gains in all regions

• Improved margin performance in Australia and South America

• Assisted by new contract work and cost

  • management

• Food

• Achieved revenue growth of 31% over H1 FY15

• Acquisition of Controlvet in April 2015 –

• operations in Portugal, Spain and Poland

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Outlook

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• Global markets expanding

• Organic growth and bolt on acquisitions

• Focus on Food Safety Markets

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Environmental Food - Pharma Electronics Consumer Products

1 Excluding restructuring and other one-off items, amortisation of acquired intangibles and divestment write-downs

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ALS Current Food and Environmental Market Share

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Canada Europe (Nordic Region,
Eastern Europe, and Iberia)
11%
19% 20%
5%
25%
10% Asia
UK 10%
USA
35%
25%
Latin America 60% 30%
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Note – Company estimates of ALS market share of commercially available work for the services ALS currently offers

Australia

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Life Sciences historical rowth 2007 to 2015 g

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2007
LOCATIONS	REVENUE	EBITDA	EBITDA%
34	AU$165mn	AU$37mn	22%

2015
LOCATIONS	REVENUE	EBITDA	EBITDA %
145	AU$556mn	AU$125mn	22%

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Revenue 16.4% CAGR over 8 years to FY15

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Environmental Growth

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Environmental Revenue by Quarter

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160 32%
140 28%
120 24%
100 20%
80 16%
60 12%
40 8%
20 4%
- 0%
Environmental EBIT margin
AU$ millions
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Note – EBIT margin inclusive of abnormals

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Environmental Business

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• Mature business

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• Global footprint:

  • 71 laboratories in 32 countries

  • Additional 50 sales offices to access broader geographical market

• Largest provider of environmental analytical services in the world World class USEPA compliant full service laboratory in Peru

• Continued focus on water analytical capabilities from water authorities:

• 85% market share in Australia and 50% in the UK

• The “ALS Experience”

Global environmental market growth is 1% to 2% per annum.

• ALS Environmental is growing at 10% to15% per annum

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Current Food Testing Market Size (in billion AU$)

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Global food safety testing market size (in AU$bn) and ALS presence

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Europe
20
CAGR – 7.3%
15
North America
CAGR – 7.4%
$4.2 10
$5.8
$1.6 5
$2.9
Rest of world Asia Pacific 0
CAGR – 5.9% CAGR – 5.9%
Rest of World
Existing ALS Food Operations Asia Pacific
Europe
Near-term target expansion
North America
for ALS Food operations
AUD$ billion
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Source: Markets and Markets research report - Global Food Safety Testing Market - Global Trends and Forecasts to 2018

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Food strategy – building blocks in place

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Achievements to date

• Multi-language LIMS built and being rolled out globally

• Client portal built –version 3 (ALSolutions) released in October 2015

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• MIS built and rolled out

• Global instrument standards in place

• Global methods standardised

• Hub & spoke network in Europe –75% in place

• “Farm to Fork” holistic service –developed

• Technical capabilities in place

• Chemistry

• Microbiology

• Sensorial

• Consulting

• Auditing

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Historical – Food & Pharma growth 2007 to 2015

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2007

2015

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Existing ALS Food Operations

Near-term target expansion for ALS Food operations

New Pharmaceutical Laboratory under construction in Ely (United Kingdom) due to be commissioned January 2016

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Rights funding flexibility to accelerate growth in Life Sciences

Revenue (AU$mn)

Overview of Life Sciences Opportunity

• Largest and fastest growing division of ALS

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558
527
454
361
312
FY11 FY12 FY13 FY14 FY15
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• 51% of group EBITDA in H1FY16

• Growth of 15% in H1FY16 over pcp

• Operates two business streams

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• Food and Pharmaceuticals

• Environmental

• ALS strategy to continue to diversify earnings and grow non-cyclical businesses

• Fragmented markets that continue to grow globally, providing consolidation opportunities

• ALS believes it has a strong pipeline of identified growth opportunities across existing and new geographies

Group EBITDA contribution

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FY11 1HFY16
34%
49% 51%
66%
Life Sciences
Other
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Rights funding flexibility to accelerate growth in Life Sciences (cont’d)

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Overview of Food Strategy

Food/Pharma revenue by quarter

• In 2012, ALS developed a strategy to build a AU$200m pa integrated food analytical business

• Significant achievements since 2012 include:

• Global LIMS built and rolled out

• MIS built and rolled out

• Hub & spoke network established

• Earnings growth achieved organically and through bolt-on M&A

• ALS believes building blocks are in place for next phase of growth and to transition into a scaled, global business

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30 25%
25
20%
20
15%
15
10%
10
5%
5
- 0%
Net Revenue EBIT margin
EBIT margin
AU$ millions
Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15
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• Dual growth strategy – accelerate market penetration and expand into new geographies

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Industrial Division

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ALS Limited
Greg Kilmister
CEO
Oil & Gas Business Life Sciences Division
Greg Kilmister Raj Naran
CEO Group General Manager
Industrial Division
Kristen Walsh
Minerals Division
Brian Williams Group General Manager
Group General Manager
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Asset Care Tribology

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Industrial Division

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Underlying1 results (AU$)	H1 FY16	H1 FY15
Revenue	$95mn	$100mn
EBITDA	$16mn	$20mn
EBIT	$14mn	$17mn
EBIT Margin	14.3%	16.6%

Overview

• Asset Care

• Revenue down 11% compared with H1 FY15

• Decline in the capital expenditure-exposed major construction projects in the LNG and mining sectors

• Tribology

• Continues to grow

• USA contributions grew 23% over H1 FY15

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Asset Care
Tribology
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Outlook

• Continued growth expected in Tribology

• Growth in OPEX facing Asset Care business in Australia

• Bolt on acquisition in Asset Care in USA

• Further contraction in CAPEX investment in Australian Oil & Gas market for Asset Care

1 Excluding restructuring and other one-off items, amortisation of acquired intangibles and divestment write-downs

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ALS Tribology Performance

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Perth Tribology Laboratory

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Tribology Revenue by Quarter

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14 30%
12
25%
10
20%
8
15%
6
10%
4
5%
2
0 0%
Revenue EBIT margin
AU$ millions
EBIT margin
Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15
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Note: EBIT margin inclusive of abnormals

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ALS Tribology Market Environment

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Source: American Trucking Association

• Trucking serves as a barometer of the U.S. economy

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ALS Tribology Revenue by Market Sector

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Defence
6%
Other
6%
Lubricant
Branded Mining
20%
Service
24%
On-highway
Power Transport
Generation 12%
4%
Rail
Oil & Gas
4%
10%
Equipment Communications
Manufacturing 4%
10%
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• Forecast growth over the next decade ~2.5%

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ALS Tribology – Global service offering

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• New generation WebTrieve™ to facilitate global reliability programs

• AU$ 400 million global market ~ market share growth opportunities in all regions

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ALS Tribology Strategy

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• ‘Step ahead’ IT

• Right partner – delivering reliability goals and global service provision

• Leading technical capabilities

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ALS Asset Care Performance

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Asset Care Revenue by Quarter
45
40
35
30
25
20
15
10
5
0
AU$ Millions
Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15
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ALS Asset Care Market Environment – Australia

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Mining Industry Capital Expenditure
30
25
20
15
10
5
0
AU$ Billions
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Resource and Energy Export Earnings - Australia

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Source: ABS
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• Client cost cutting impacting service industry margins.

• Investment in new capacity delivering higher production. Plant health monitoring requirements continuing to grow. Job hours growth currently offset by price pressure and reduced capital expenditure-related services.

• Lag time in addressing labour costs; opportunities to challenge traditional models.

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ALS Asset Care Market Analysis

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Revenue by Market Sector - Australia

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Other Power
Welding & 2% Generation
Fabrication 14%
12%
Oil & Gas
31%
Mining
41%
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Revenue by Type of
Spend
Capital
Expenditure
27%
Operating
Expenditure
73%
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• ALS Australian market share ~ 40-45%: Australian market size ~ AU$ 300 million

• Global market size ~ AU$ 20 billion; 5 global players; still highly fragmented

Note: ALS market share is company estimate

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ALS Asset Care Strategy

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• Right partner

• Local market leadership

• Competitive cost base

• Targeted overseas growth

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Minerals Division

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ALS Limited
Greg Kilmister
CEO
Oil & Gas Business Life Sciences Division
Greg Kilmister Raj Naran
CEO Group General Manager
Minerals Division
Brian Williams
Industrial Division
Group General Manager Kristen Walsh
Group General Manager
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Geochemistry
Metallurgy
Inspection
Mine Site Services
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Minerals Division

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Underlying1 results (AU$)	H1 FY16	H1 FY15
Revenue	$183mn	$182mn
EBITDA	$47mn	$48mn
EBIT	$36mn	$36mn
EBIT Margin	19.5%	19.8%

Overview

• Geochemistry

• Sample volumes remained flat

• Contribution margin maintained at 21% of revenue

• Metallurgy

• Revenue down 5% compared with H1 FY15

• Inspection

• Achieved strong growth in revenue and contribution from increased market share

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Geochemistry
Metallurgy
Inspection
Mine Site Services
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Outlook

• Increased market share in geochemistry

• Geochemistry entering new geographical markets (e.g. Ethiopia)

• Focus on Mine Control Laboratory opportunities

• Development of hyperspectral services

• Integrated data management services

• Metallurgy markets to remain challenging

• Further growth in Inspection via market share growth

• Synergies/leverage between mineral and coal inspection

1 Excluding restructuring and other one-off items, amortisation of acquired intangibles and divestment write-downs

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ALS Minerals Division b Service Offerin y g

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Geochemistry
Inspection
Metallurgy
Trade Services
ALS Upstream Downstream
Minerals Revenue 70% 30%
3200 FTE EBIT 75% 25%
Margin Range 20-30% 5-30%
FTE 71% 29%
Mine Site Engineering Locations 69 36
Services Services
Continents 6 6
Market Share [1] 33% 15-25%
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• Geographically Dispersed, Diversified, Multi Commodity TIC provider - Servicing the entire resource cycle

• Exploration, Resource Definition, Beneficiation, Optimization, Production, Trade

• 1 Company estimates

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ALS Minerals Locations / Non Ferrous Exploration Expenditure by Region

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1% 5%
14%
1%
1%
8%
1%
Percentage
6% of global
6% exploration
1%
1% expenditure
CY2015
3% 1%
2%
1%
1% 8% 3%
5%
12% 1%
1%
7%
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Source: SNL 2015

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The Market – Global Exploration Expenditure

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Global (Non Ferrous) Exploration Expenditure YoY Change

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60% 25
36% 20
2012
-
57%
12% 15
2015
-12% 10
-36% 5
2015
YoY
-19%
-60% 0
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
Source: SNL November 2015 Total Budget YOY Change
YOY Change
Global Exploration Budgets (US$ billion)
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The Market - Mineral Cycles (Australia as a proxy)

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Australian Mineral Exploration Spend (excluding iron ore & coal) in March 2015 AUD$ equivalent

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700
58%
37%
decrease
decrease
600
500
54%
44%
decrease
decrease 54%
decrease
400
300
200
100 GFC
Induced
7.5 years 9.0 years 11.0 years 3.2 years
0
AUD $million (Mar-15 equivalent)
Jun-74 Jun-75 Jun-76 Jun-77 Jun-78 Jun-79 Jun-80 Jun-81 Jun-82 Jun-83 Jun-84 Jun-85 Jun-86 Jun-87 Jun-88 Jun-89 Jun-90 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
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Source: Australian Bureau of Statistics

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The Market - Commodity Prices /Reserves /Currency / Stock Levels

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Commodity Prices

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Reserves

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Currency

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Stocks

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Strategic Imperatives

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Down Cycle Strategic Focus (unchanged)

• Cost Base Management

• Service Optimization

• Targeted Business Development in pursuit of Market Share Growth

……..Without compromising Market Proposition

Sustaining Strategic Focus

• Pursue Technical Leadership/Service Innovation

• Multi Commodity Coverage/Diversification

• No Geographic Barriers

• Low Cost Producer

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The Hub and Spoke Model in Action

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• global operating control

• • continental scope

• • scalable spokes

• • capable hubs

• • reduced quality risk

• • focused capabilities

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Cost Base Management - Hub & Spoke Tuning

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• Consolidation of Expertise

Up Cycle Advantages

• Economies of Scale

• Load • Turn – R – R	Balancing Mothballed or Closed (12)	Balancing Mothballed or Closed (12)	Restricted Scope (10)	Restricted Scope (10)	Expand or New (5)
	Anchorage	Bucaramanga	Santiago	La Serena	2 x Sub Sahara
	Darwin	Bana	Johannesburg	Reno	1 x North Africa
	ing down the ‘ Stewart	volume’ in the Zouerate	Spokes Val D’Or	Adelaide	1 x Nordic Region
	~~estricted work ca~~ Bogota	~~pacity e.g.24/7~~ Sydney	~~to 8/5~~ Medellin	Bamako	1 x UK
	Winnemucca	Maraba	Timmins	Mt Isa
	~~estrict Scope of~~ Georgetown	~~ervices e.g. Pre~~ Auezov Town	~~p only/Analytica~~	~~l to Hub~~

– Overtime ban

– Contract Labour ban

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Cost Base Management – Commitment to Training & Development

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Our Differentiators:

• Global LMS available in 31 Languages

• Courses developed in-house; customised for ALS

• Blended learning (classroom, webinar, eLearning)

• Focus areas: Leadership development, compliance training, HSE, communications, technical training

Total Courses Available (Produced in-house by ALS)

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200
59% increase at no additional cost
180
160
140
120
100
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Lynda.com – external online courses

Internally Developed Courses

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113 4217
courses training videos
accessed watched
(Sept Qtr) (Sept Qtr)
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59% 459
increase in # Geochemistry
courses Technical
developed in- modules
house (YoY) completed
(in 18 mths)
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Cost Base Management – A Culture of Continuous Improvement

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Service O timization - Technical Leadershi A ilit p p / g y

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• Super Ultra Trace Analysis for Soils and Sediments

• Ionic Leach[TM]

• Clay Fractionation

• Low Cost Lead Isotopic Analysis

• Low Cost Carbon and Oxygen Isotopes in Carbonates

• Hyperspectral Mineralogy

• Rapid Portable XRF Analysis

• • Graphite Analysis

• 4 % Geochemistry Revenue

• 20 % Metallurgy Revenue

• Piloting capabilities

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Service Optimization - Metallurgy Piloting Focus

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Pilot Revenue - Distribution By Type 2010-15

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1% 7% 9% 25% 18% 2% 0.4% 38% Beneficiation Bulk HPGR Flotation HPAL and Crip Plant Hydro Pilot Jigging/Alflux Magnetic Separation SAG Mill

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Service Optimization – Capability Alignment

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Resource	Geochem Revenue	Met Revenue	Global Exploration Spend
Gold	43%	42%	45%
Copper	18%	33%	24%
Lead/Zinc	11%	2%	5%
Uranium	0.1%	1%	4%
Nickel	10%	1.6%	4%
Diamonds	N/A	N/A	4%
PGM	1.2%	<0.1%	1%
Iron	1%	7.5%	NR
Other1	16%	13%	13%

Worldwide Exploration Budgets by Target, 2015

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13%
1%
4%
4%
45%
4%
5%
24%
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Gold Copper Lead/Zinc Uranium Nickel Diamonds PGM Other*

1Other – Rare Earths, Graphite, Industrial Minerals

Exploration Spend Data from SNL Report Nov 2015

*Other – Excludes Iron Ore and Bauxite

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Service Optimization – Mine related Exploration and Grade Control

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Geochemistry Revenue Split

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100%
90%
80%
48% 48% 50% 46% 44%
54% 55% 55%
70%
60%
50%
40%
30%
52% 52% 50% 54% 56%
46% 45% 45%
20%
10%
0%
2008 2009 2010 2011 2012 2013 2014 2015
Mine & Near Mine Greenfield Exploration
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YoY Mine Site Rev +67% 15 Active Sites V 10 Last Year Strong Project Pipeline

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Market Share – Geochemistry Sample Flow

Global Exploration Expenditure in USD Down 19% YoY

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ALS
Geochemistry
Sample Flow
Down
1% YoY
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Geochemistry – Market share leveraged to upturn

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Laboratory Service Provider used for SNL Top Ranked Assay Drill Intersection Announcements

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62% 38%
Sep15 31 19
50% 50%
Jun15 25 25
56% 44%
Mar15 28 22
0 20 40 60
ALS Other
Quarter
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Source: SNL Top 10 Ranked Assay Targets for Copper, Gold, Lead, Silver and Zinc published in Quarterly SOTM reports (2015). 50 Targets in total per quarter

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Oil & Gas Business Stream

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ALS Limited
Greg Kilmister
CEO
Life Sciences Division
Oil & Gas Business
Raj Naran
Greg Kilmister
Group General Manager
CEO
Minerals Division Industrial Division
Brian Williams Kristen Walsh
Group General Manager Group General Manager
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Reservoir Characterisation
Drilling Services
Production Solutions
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Oil & Gas

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Exploration Production
Source: Halliburton Presentation September 2015
Drilling Down Hole Tools
Services
Coring
Surface Logging
Reservoir Laboratory Services
Characterisation Well Site Services
Palaeontology
Well Intervention Services ALS Revenue Stream YTD
Production
Down Hole Gauges
31% Drilling Services
Solutions
Pipeline Monitoring 41%
Reservoir Characterisation
Well Tools
28% Production Solutions
ALS Oil & Gas Markets
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Reservoir Laboratories Overview

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• The upstream oil & gas laboratory market is split into two tiers:

• three global oilfield specialists

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• many technical niche and geographically

• limited labs

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• The industry is not totally satisfied with these options due to TAT, pricing, & transparency

• Room exists for a new participant to leverage differentiating technologies and systems to meet the industry needs

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Reservoir Laboratories Strategy

Provide a distinctive value proposition through key technical differentiators

Leverage unique opportunities to take possession of samples

Core

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Fresh core from ALS O&G Coring or direct engagement with clients and legacy core currently in storage.

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Cuttings

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Fresh cuttings from ALS O&G Surface Logging or direct engagement with clients.

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Demonstrate operational excellence and service quality

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• LIMS

• Automation

• • Standardization

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Oil & Gas Laboratory – Houston strategic asset

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Houston Oil & Gas Laboratory officially opened November 2015 – USD$13 million dollar investment

Comments received from +170 potential clients at opening:

• Great facility and very good presentations

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• Congratulations! I think you have great differentiators by using the whole suite of core data and very well interpreted by your team. Best of wishes for your success

• Impressive facility

• Several of my colleagues and I visited the facility, and would like to see ALS added as one of our vendors

• Good start for the lab and great potential for the facilities

• Very impressed with the technical personal in the different labs

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• Excellent, informative event.

• May want to follow up on various services after we do our bid process for our upcoming wells

• I must say that I was floored by your company …you guys are going to take a lot of work away from Weatherford and Core Lab

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Pipeline Monitoring – The costs of pipeline incidents in USA

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•
$243m property damage in 2015
•
$7bn property damage in 20yrs
•
Around 280 incidents/yr
•
20 fatalities in 2014 (average 13)
Data Source: US DOT Pipeline and Hazardous Materials Safety Administration – 29 [th] Oct 2015 data
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Pipeline Monitoring – The costs of pipeline incidents in USA

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Omega Pipeline Monitoring Services
•
33% Sales Revenue growth in 2015
•
41% growth in number of projects
•
A swiftly growing ALS Production
Solutions service
•
Few ‘service’ competitors
Data Source: US DOT Pipeline and Hazardous Materials Safety Administration – 29 [th] Oct 2015 data
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