one ALS Life Sciences Commodities Industrial Investor Presentation Hong Kong 5 th & 6 th October 2016 All figures stated in AUD unless otherwise stated 1 RIGHT SOLUTIONS · RIGHT PARTNER RIGHT SOLUTIONS · RIGHT PARTNER
New Business – structure and end market focus 2 RIGHT SOLUTIONS · RIGHT PARTNER
ALS Strategic Assets Network Brand Systems Technology Culture A L S S t r a t e g i c A s s e t s 408 sites quality LIMS state-of-the-art people • • • • • innovators training • 73 countries • timeliness • MIS • • 6 continents service standardisation standardisation focus • • • • • global IT innovation systemisation • unique • client service • • • network technology multi-language centres of communication • • • • value global excellence passion • • • 3 RIGHT SOLUTIONS · RIGHT PARTNER
ALS global locations – a strategic asset 4 RIGHT SOLUTIONS · RIGHT PARTNER
Strategic mix of revenue 5 RIGHT SOLUTIONS · RIGHT PARTNER
Group Strategy – geographies & markets FY16 FY11 revenue FY06 $1365mn revenue $862mn revenue $212mn Australia Asia South America North America Africa Europe Middle East Environmental Food/Pharma Consumer Products Geochemistry Metallurgy Inspection Engineering Oil & Gas Coal Asset Care Tribology 6 RIGHT SOLUTIONS · RIGHT PARTNER
Strategic mix of revenue 7 RIGHT SOLUTIONS · RIGHT PARTNER
Debt Metrics 8 RIGHT SOLUTIONS · RIGHT PARTNER
Life Sciences poised for continued growth • Environmental • Food Safety and Water Specialized Increased and and Complex Enforced Testing Regulations Public Infrastructure Awareness and and Population Consumer Growth Concern • Consumer Products • Pharmaceutical 9 RIGHT SOLUTIONS · RIGHT PARTNER
Significant opportunities available to ALS Life Sciences Industry Large Addressable Strong Growth Fragmented Market Market Total: US$11bn Overall: 6% p.a. ALS Market Share Environmental: US$4bn Environmental: 6% p.a. Environmental: 10% Food Safety: US$2bn Food Safety: 7% p.a. Food Safety: 4% Pharma: US$5bn Pharma: 6% p.a. Pharma: <1% Irreplicable Global Track Record of Growth Strong Returns Platform Life Sciences FY07-16 Revenue ALS 400 sites CAGR: 16% Life Sciences ROIC 19% 70 countries Environmental market share Life Sciences EBITDA margin 23% increased from 3% to 10% since Global Network 2006 Note: Company estimates 10 RIGHT SOLUTIONS · RIGHT PARTNER
Track record of growth – Life Sciences FY07 FY16 LOCATIONS REVENUE EBITDA EBITDA% ROIC LOCATIONS REVENUE EBITDA EBITDA % ROIC 34 $165mn $37mn 22% 13% 155 $634mn $145mn 23% 19% ROIC calculated as LTM EBIT / Total Invested Capital. Total invested capital calculated as reported segment assets minus segment liabilities. 11 RIGHT SOLUTIONS · RIGHT PARTNER
Leading market positions ALS Current Food and Environmental Market Share Europe (Nordic Region, Canada Eastern Europe, and Iberia) 11% 20% 19% 5% 25% 10% Asia 10% UK USA 35% 25% Latin America 40% 30% Australia Note: Company estimates of ALS market share of commercially available work for the services ALS currently offers 12 RIGHT SOLUTIONS · RIGHT PARTNER
Sustainable strong returns Historical Life Sciences ROIC (1) 23% 23% 22% 20% 20% 19% 18% 18% 18% 17% 17% 16% 16% 16% 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 Historical Life Sciences Revenue and EBITDA Margin (2) Revenue ($ millions) EBITDA Margin (%) 350 30% 300 25% 250 20% Eurofins 19% 200 SGS 18% 15% Intertek 15% 150 10% 100 5% 50 0 0% 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 Revenue EBITDA Margin 1 ROIC calculated as LTM EBIT / Total Invested Capital. Total invested capital calculated as segment assets minus segment liabilities. 2 Intertek margin represents the Chemicals & Pharmaceuticals division, SGS margin represents the Life Sciences Services and Environmental Services divisions. Eurofins margin includes Corporate costs 13 RIGHT SOLUTIONS · RIGHT PARTNER
Mineral cycle at a trough Australian Mineral Exploration Spend (excluding iron ore & coal) 600 53% 33% decrease decrease 500 AUD $millions 400 46% 28% decrease 300 decrease 27% decrease 200 100 GFC Induced 7.5 years 9.0 years 11.0 years 3.2 years 0 Source: Australian Bureau of Statistics 14 RIGHT SOLUTIONS · RIGHT PARTNER
Platform well positioned to benefit from recovery Historical revenue and EBITDA margin for the Laboratory Service Provider used for SNL Top Minerals and Energy segments (FY ending March) 1 Ranked Assay Drill Intersection Announcements 2014-2015 2 800 45.0% Minerals & Energy Revenue $ millions 600 30.0% 400 SGS 20% Intertek 18% SGS 18% BV 18% BV 16% Intertek 17% 15.0% 200 0 0.0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Minerals & Energy Revenue Minerals & Energy EBITDA Margin Leading global platform leveraged to inevitable market recovery • Enhanced by ongoing cost base management and service optimisation • 1 Estimated EBITDA Margins for SGS, Intertek, Bureau Veritas are for Calendar Year 2015 and 2012 and refer to the Commodities segment for Intertek, the Commodities segment for Bureau Veritas and the Minerals and O&G & Chemicals Services segments for SGS. EBITDA is underlying EBITDA for all companies 2 SNL Top 10 Ranked Assay Targets for Copper, Gold, Lead, Silver and Zinc published in Quarterly SOTM reports 15 RIGHT SOLUTIONS · RIGHT PARTNER
Mineral cycle – are we past the bottom of the cycle? $CAD $USD $AUD SNL Metals & Mining 16 RIGHT SOLUTIONS · RIGHT PARTNER
Mineral cycle – are we past the bottom of the cycle? minesite brownfield greenfield 17 RIGHT SOLUTIONS · RIGHT PARTNER
New Business – structure and end market focus 18 RIGHT SOLUTIONS · RIGHT PARTNER
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