Investor Presentation Full Year Results FY2019 Raj Naran, Managing - PowerPoint PPT Presentation

Investor Presentation Full Year Results FY2019 Raj Naran, Managing Director and CEO, ALS Limited 21 May 2019 Right Solutions • Right Partner www.alsglobal.com Right Solutions • Right Partner

IMPORTANT NOTICE AND DISCLAIMER – 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. 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 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Global Operations by Revenue EMENA $398m APAC 4,200 staff 4,400 staff AMERICAS $598m $622m 4,900 staff $54m AFRICA 1,000 staff 65+ 350+ 40+ 15,000+ 40+ million $1.6+ billion Countries Locations Years of strong Staff worldwide Processed samples Global revenue performance per year 3 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Full Year FY19 Financial Summary Underlying performance from continuing operations NPAT Guidance exceeded $181.0m NPAT growth 27.3% EBITDA growth 22.0% Revenue growth 15.1% EPS growth 30.6% Final dividend growth 27.8% Share buyback progress $131.4m 4 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

ALS Segments and Business Streams Revenue Split COMMODITIES & LIFE SCIENCES INDUSTRIAL Environmental Geochemistry Food Metallurgy Pharmaceutical Trade Inspection Consumer Products Coal Asset Care Tribology 5 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Revenue Growth FY19 vs FY18 – Continued Operations Organic Growth +12.7% in AUD m +0.9% +1.5% +8.0% +7.9% 13 20 +21.7% 16 58 112 1,665 1,447 2018* Commodities Life Sciences Industrial Acquisition Fx 2019* * Continued Operations 6 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Underlying EBIT – Continuing Operations In AUD m +22 +44 (5) (2) 280 221 2018 Commodities Life Sciences Industrial Others* 2019 Margin 15.3% 27.0% 15.0% 10.0% 16.9% PCP +320 bps +110 bps (350) bps +160 bps * Corporate costs + FX 7 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Strong Margin Relative to Peers ALS Revenue Underlying ALS AUD m EBITDA Margin Intertek 1,800 SGS 30% Eurofins Bureau Veritas 1,500 Applus 24% 20.9% Mistras 1,200 18% Bottom of Underlying EBITDA Margin 900 the cycle for SGS, Intertek, Bureau Veritas, Eurofins, Applus & 12% Mistras is for Calendar 600 Year 2018. Comparison of Underlying EBITDA Margin and 6% 300 Revenue includes continued and discontinued operations and corporate 0% 0 expenses for all '13 '14 '15 '16 '17 '18 '19 companies. ALS Financial Year Ending March 8 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Strategic Roadmap 9 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Key Priorities Priority Progress  Strong Cash flow conversion  Cash conversion at 93.7%  Improve EPS  EPS growth +30.6% Finance  Standardisation of systems and  Implementation of global systems & processes underway processes  Organic growth projects  Acceleration of green field / growth projects Capital Allocation  Partnership with educational institutions and technology  Technology to drive efficiency companies  In place. Significant investments made. More than 130  Executive development program leaders already in the program Talent Development  Internal transfers of key leaders with proven results to  Internal talent development accelerate development of key businesses globally  Expansion into new geographies  Strengthened M&A governance and process Acquisition Criteria  Focus on bolt-on and strategic  Significant increase in M&A pipeline acquisitions 10 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Continued Innovation and Technology Investment  Strategic partnerships with new generation technology companies  Beta test projects in artificial intelligence across all divisions  Robotics and automation  Data analytics  Internet of Things (IoT)  Global software platforms 11 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Life Sciences. Overview Life Sciences  Organic revenue growth at +7.9%, with strong contribution throughout all regions Ongoing cost reduction and rationalisation initiatives leading to EBIT margin  improvement in all regions, with total improvement of +110 bps, exceeding guidance Environmental Food & Pharma  Total revenue growth of +11%, and underlying EBIT  Total Revenue growth of +23%, Americas improvement of 21% +23%, EMENA +26% and APAC +9% Total revenue growth +16% in Americas, +12% in APAC and 2% BioScreen (US) acquisition creates the   in EMENA platform for further North American Pharma expansion Focus on developing new greenfield opportunities within Asia,  Americas and Europe to deliver new growth prospects Underlying results (AUD) FY19 FY18 Change Revenue $831.4 m $734.1 m +13.3% EBITDA $166.8 m $140.7 m +18.6% EBITDA Margin 20.1% 19.2% +90 bps EBIT $124.4 m $102.1 m +21.8% EBIT Margin 15.0% 13.9% +110 bps Right Solutions • Right Partner 12 Investor Presentation. Full Year Results FY2019

Life Sciences. Evolution in AUD m 900 Environmental Total Revenue 24% Food / Pharmaceutical CAGR +10.5% Consumer / Electronics 22% Underlying EBIT Margin 20% 600 18% 16% 14% 300 12% 10% 0 8% 2015 2016 2017 2018 2019 13 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Current ALS Pharmaceutical Footprint Global Pharmaceutical Estimated Global Available Market Size: Over $20 billion 14 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Current ALS Food Footprint Global Food Estimated Global Available Market Size: Over $3 billion 15 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner

Life Sciences. Outlook Life Sciences strategy will continue expansion via targeted acquisitions and investment  in selected organic growth projects (start-ups and in expansion of existing capabilities)  M&A activity expected to accelerate in FY2020 and FY2021 Focus on cost management, automation, processes improvement and standardisation to  continue to improve operating margins across all regions New management appointed to start in Jul 2019 as Head of Life Sciences Business in  North America, as part of on going execution of a plan to improve growth and margins, particularly in the US 16 Investor Presentation. Full Year Results FY2019 Right Solutions • Right Partner