Morgans Investor Conference

RIGHT S O L U T I O N S | RIGHT PARTNER

Morgans Investor Conference

Investor Presentation

October 2014

Greg Kilmister – CEO

• 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.

IMPORTANT NOTICE AND DISCLAIMER

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Company Profile

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.

Energy Division

Industrial Division

Life Sciences Division

Minerals Division

Reward Distribution

Environmental

Food - Pharma

Electronics

Consumer Products

Geochemistry

Metallurgy

Inspection

Mine Site Services

Asset Care

Tribology

Coal

Oil & Gas

Market Capitalisation

$2.1 bn

People

12,000

Revenue

$1.5 bn

Countries

+60

Operating Sites

+300


FY15 YTD – Revenue by Region by Division


Global Location Map


0

200

400

600

800

1,000

1,200

1,400

1,600

0

200

400

600

800

1,000

1,200

1,400

1,600

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Cum

ulative N

et M

&A

Spend $

million

PealStreet Ltd.

Dec-09

Ecowise

Environmental

Pty Ltd..

Nov-09

Campbell

Brothers Ltd.,

Major Laundry

& Detergent

Brands

Oct-04

QCC

Hospitality

Aug-04

Ecochem

Jan-06

ETL Group

Jan-06

Caterworld

Jan-06

QCC

Hospitality

Jun-05

McCarthys

Feb-07

Campbell

Brothers Ltd.,

Pest Control &

Washroom

Services

Jan-07

Consulchem

Nov-06

Abilab

Nov-06

Pandee

Services

Sep-06

Analytica AB

Jul-06

Witlab

Nov-07

ACIRL Pty Ltd

Oct-07

eLab

Analytical Inc.

Aug-07

JK Tech

Mineralogy

Aug-07

DataChem

Oct-08

IQA

May-08

Stavely

Services

May-08

Microtech

Technical

Services Ltd.

Apr-08

Analytical

Laboratory

Services Inc.

Dec-10

Ammtec Ltd.

Nov-10

Campbell

Brothers

Limited

Cleantec

Business

Nov-10

LabMark

Environmental

Laboratories

May-10

Columbia

Analytical

Services

Nov-11

Austpower

Engineering.

Oct-11

PearlStreet

Energy

Services

Jul-11

Stewart Group

Jul-11

PMS Micro

Jun-11

Severn Trent

Laboratories

Feb-13

Corplab

Laboratories.

Dec-12

Panamex

Pacific

Oct-12

Deltrex

Chemicals

Sep-12

Artek

Laboratories

Aug-12

Milana A.S.

Jul-12

Eclipse

Scientific

Group

Apr-12

BMP

Enterprises

Feb-14

ALS Taiwan

Jan-14

OilCheck Pty

Ltd.

Oct-13

AIT

Oct-13

Reservoir

Group Ltd.

Aug-13

PSI Inc.

Aug-13

EarthData Pty

Ltd.

Jul-13

Reliance

May-13

Environmental Food/Pharma Consumer Products Geochemistry Metallurgy Inspection Engineering Oil & Gas

Coal Asset Care Tribology Reward Distribution Chemical Campbell Brothers Services

FY2005

revenue

$448m

FY2009

revenue

$951m

FY2014

revenue

$1,503m

Revenue $

million

Acquisition

Divestment

ALS journey over the last decade


Foreign Currency Revenues

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


0

5

10

15

20

25

Q1

FY1

3 C

AP

EX

Q1

FY1

3 D

& A

Q2

FY13

CA

PEX

Q2

FY1

3 D

& A

Q3

FY1

3 C

AP

EX

Q3

FY1

3 D

& A

Q4

FY1

3 C

AP

EX

Q4

FY1

3 D

& A

Q1

FY14

CA

PEX

Q1

FY1

4 D

& A

Q2

FY1

4 C

AP

EX

Q2

FY1

4 D

& A

Q3

FY1

4 C

AP

EX

Q3

FY1

4 D

& A

Q4

FY14

CA

PEX

Q4

FY1

4 D

& A

Q1

FY1

5 C

AP

EX

Q1

FY1

5 D

& A

Q2

FY1

5 C

AP

EX

Q2

FY1

5 D

& A

AU

D$

mill

ion

Minerals Life Sciences Energy Industrial

CAPEX (excluding business acquisitions and land & building purchases)

versus Amortization & Depreciation

8

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

Reservoir Group acquired--

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Underlying EBIT Margin – peer comparison

14.7% 15.0%15.8%

14.9%

9.7%

31.5%

0%

5%

10%

15%

20%

25%

30%

35%

ALS SGS B.V. Intertek Eurofins Core Labs

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


• Bottom of the minerals cycle• Coal industry depressed• Pricing pressure in environmental• Oil & Gas operations underperforming

Exploration has not stopped !

Note: SNL data showing reported significant drill intersections by commodity and location for the six month period

October 2013 to March 2014


Reported significant drill intersections – October 2013 to March 2014

22%

2%

47%

13%5%

11%

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


-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan

-06

Ap

r-0

6

Jul-

06

Oct

-06

Jan

-07

Ap

r-0

7

Jul-

07

Oct

-07

Jan

-08

Ap

r-0

8

Jul-

08

Oct

-08

Jan

-09

Ap

r-0

9

Jul-

09

Oct

-09

Jan

-10

Ap

r-1

0

Jul-

10

Oct

-10

Jan

-11

Ap

r-1

1

Jul-

11

Oct

-11

Jan

-12

Ap

r-1

2

Jul-

12

Oct

-12

Jan

-13

Ap

r-1

3

Jul-

13

Oct

-13

Jan

-14

Ap

r-1

4

Jul-

14

Oct

-14

DEL

TA (

last

2 w

ee

ks s

amp

le f

low

Ve

rsu

s sa

me

2 w

ee

ks la

st y

ear

)

Week

ALS Global Mineral Sample Flow (growth trend)

20092006 2007 20102008 2011 2012 2013 2014

7-Jan 7-Mar 7-May 7-Jul 7-Sep 7-Nov

Geochemical Sample Flow (2 week running average)

Traditional Field Season

Oil & Gas Market Exposure

ALS Market Proposition pre 2012

• Value Proposition – “we are not the cheapest but

we provide the very best value”

• Focus on

• Quality

• Service

• Turnaround Time

• 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

“White

Coat

Syndrome”

How we see ourselves today – what has changed & why

RIGHT SOLUTIONS | RIGHT PARTNER

Morgans Investor Conference

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