ALS LIMITED — Investor Presentation 2017

Oct 10, 2017

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Morgans Queensland Conference 2017

Brisbane 11 October 2017 Richard Stephens – Chief Financial Officer, ALS Limited

Right Solutions • Right Partner www.alsglobal.com

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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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Business streams

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Business stream strategy

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Grow scalable Invest in businesses New Core through organic (Testing) and geographic Business expansion Streams Divest or close Improve all non-core Current (non-testing) Performance Businesses

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Vision 2022: Our Everest (excluding significant acquisitions)

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Assumes no material adverse change in market conditions

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Strategic priorities

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Strategic priorities Focus ( Testing as our Core ) Brand recognition Operational excellence One ALS Client focused Leverage services across business streams

Target: non-resource Balanced business to be > 50% of the company EBIT at portfolio the top of the mineral cycle through:

Business Delivering infrastructure to service support the business

Existing market share growth New business streams Geographic expansion Strategic business development

Integrated business services across all business streams Technology and LIMS Talent and staff development Transparency and communication

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Acquisitions completed during FY2018 to date

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Total investment $30 m

FOOD TRIBOLOGY PHARMACEUTICAL Marshfield (USA) Oilcheck (Brazil) Mikrolab / Toxicon (Sweden)*

* completed since end of September half-year

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Global operations map

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Debt Metrics – March 2017

	Mar-13	Mar-14	Mar-15	Mar-16	Mar-17
STATISTICS
Gearing Ratio(comfort 45%)	29%	34%	38%	27%	29%
Leverage (net debt/ EBITDA; max 3.00)	1.0	2.2	2.5	1.7	2.1
EBITDA interest cover(min 3.75)	21.0	12.2	9.1	7.7	8.5
BALANCE SHEET MEASURES
Total Equity(AUD mn)	997	1419	1228	1186	1185
Net Debt (AUD mn)	400	722	762	438	485

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AUD$ DEBT MATURITY & CAPACITY PROFILE
million
as at 31 March 2017
350
Long Term Debt - USPP Notes
300
Bank Debt - Undrawn Capacity 29.5% 29.7%
250
% Total Debt Capacity 23.6%
200
17.2%
150
100
50
0
2016 2017 2018 2019 2020 2021 2022
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Debt Denomination

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CAD
14%
USD
86%
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Cash Holdings AUD$m

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Other, 48
GBP, 11
USD,
EUR, 9 119
AUD, 62
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Debt Facilities – September 2017 following bank debt re-financing

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AUD$ million

DEBT MATURITY & CAPACITY PROFILE as at 30 September 2017

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350
Long Term Debt - USPP
Notes Debt Denomination:
300
Bank Debt - Undrawn
Capacity 31.2% 31.4%
250
% Total Debt Capacity
CAD
25.8% 14%
200
150
100
USD
6.6% 86%
5.0%
50
0
2016 2017 2018 2019 2020 2021 2022
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Cash flow FY17

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Full year	FY16 AUD mn	FY17 AUD mn
Underlying operating profit (EBIT)	177.9	171.6
Depreciation & Amortisation	86.4	78.8
Working capital	(6.3)	13.8
CAPEX	(73.7)	(58.7)
Other	5.1	3.5
Free cash flow	189.4	209.0
Acquisitions	(22.8)	(106.4)
Dividends paid	(72.0)	(58.0)
Borrowings - movement	(183.2)	-
Equity Issued	317.0	-
Interest and Tax	(73.5)	(68.3)
Restructuring costs	(13.9)	(19.1)
Net increase/(decrease) in cash	141.0	(42.8)
Opening net cash	163.0	297.9
Effect of FX on cash held	(6.1)	(6.2)
Closing net cash	297.9	248.9

Analysis includes both continuing and discontinuing operations

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Full Year FY17 Financial summary

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Full Year	FY16 ($mn)	Full Year FY17 ($mn)	Full Year FY17 ($mn)	Full Year FY17 ($mn)	Full Year FY17 ($mn)	Full Year FY17 ($mn)	Full Year FY17 ($mn)
	Underlying*	Underlying*	Discontinued Operations	Impairment Charges	Restructuring & other one off items	Amortisation of Intangibles	Statutory Results
Revenue	1,239.0	1,272.3	93.3	-	-	-	1,365.6
EBITDA	258.0	253.1	(2.7)	-	(19.1)	-	231.3
Depreciation & amortisation	(69.1)	(67.0)	(11.8)	-	-	(1.5)	(80.3)
EBIT	188.9	186.1	(14.5)	-	(19.1)	(1.5)	151.0
Interest expense	(34.5)	(27.3)	-	-	-	-	(27.3)
Tax expense	(45.0)	(44.9)	0.2	-	3.8	-	(40.9)
Non-controlling interests	(1.0)	(1.2)	-	-	-	-	(1.2)
NPAT	108.4	112.7	(14.3)	-	(15.3)	(1.5)	81.6
EPS (basic – cents per share)	23.7	22.4					16.2
Dividend (cents per share)	13.5	13.5

* continuing operations

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Geochemical markets – strong recovery maintaining momentum

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24
ALS Global Mineral Sample Flow
21
(twelve month running average)
18
15
12
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
9
6
3
Week
0
100%
90%
ALS Global Mineral Sample Flow
80% (two week growth trend)
70%
60%
50%
40%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
30%
20%
10%
0%
-10%
-20%
-30%
Week
-40%
-50%
Relative Gold Price in USD
Global Exploration Spend US$bn
Average Weekly Sample Flow
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-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
Versus same 2 weeks last year)
DELTA (last 2 weeks sample flow
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+39%

+33% pcp EBIT +69%

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Geochemical markets – junior / intermediate capital raisings, gold drilling

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Gold Exploration Drilling Activity distribution by region

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Margin Strong at the Bottom of the Commodities Cycle

0 300 600 900 1,200 1,500 ALS Revenue AUD$ million
	ALS

EBITDA Margin for Core Labs, SGS, Intertek, Bureau Veritas, Eurofins, Applus, & Exova is for previous Calendar Year and Mistras year ending May previous year.

ALS EBITDA includes all Oil & Gas operations. EBITDA is underlying EBITDA for all companies.

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ALS Financial Year Ending March

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Safety Performance

Group LTIFR (as at March 31)

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2017 1.1 Historical
2016 1.2 Record
Low
2015 2.1
Injury
2014 1.8 Rates
2013 2.3
2012 3
2011 2.8
2010 2.4
2009 4
2008 6
2007 8
2006 12
0 5 10 15
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Ke Performance Indicators y

• ALS Group LTIFR of 1.1 is a historical all time low.

• • Overall score of 90% for PPI Scorecard

• 97% close out of incident report corrective actions across all divisions

• 100% of all employee safety training completed

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Sustainability Program

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Final H2FY17 Dividend

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AUD
cents H2FY17 Dividend
50 Interim Dividend Final Dividend
•
8.0 cps
•
Payout ratio 60% (full year)
•
Franked to 40%
40
•
Paid on 3 July 2017
27 •
Dividend Reinvestment
26
Plan
30
20
20 15
10
11
10 21 6
19 19 8
13
11
9
7.5
5.5
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
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ALS Segments and Business Streams

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LIFE SCIENCES Environmental
Food
Pharmaceutical
Consumer Products
INDUSTRIAL
Asset Care
Full Year Tribology
Revenue
FY17
COMMODITIES
Geochemistry
Metallurgy
Trade Inspection
Coal
Oil & Gas (Laboratories)
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