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RIGHT SOLUTIONS · RIGHT PARTNER
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RIGHT SOLUTIONS · RIGHT PARTNER
Investor PresentationHong Kong5th & 6th October 2016
All figures stated in AUD unless otherwise stated
Industrial
Commodities
Life Sciences
one
ALS
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RIGHT SOLUTIONS · RIGHT PARTNER
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New Business – structure and end market focus
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ALS Strategic Assets
Network Brand Systems Technology Culture
• 408 sites
• 73 countries
• 6 continents
• global IT
network
• quality
• timeliness
• service
• innovation
• technology
• value
• LIMS
• MIS
• standardisation
• systemisation
• multi-language
• global
• state-of-the-art
• innovators
• standardisation
• unique
• centres of
excellence
• people
• training
• focus
• client service
• communication
• passion
A L S S t r a t e g i c A s s e t s
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ALS global locations – a strategic asset
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Strategic mix of revenueF
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Environmental Food/Pharma Consumer Products Geochemistry Metallurgy
Inspection Engineering Oil & Gas Coal Asset Care Tribology
FY06
revenue
$212mn
FY11
revenue
$862mn
FY16
revenue
$1365mn
Group Strategy – geographies & markets
Australia Asia South America North America
Africa Europe Middle East
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Strategic mix of revenue
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Debt Metrics
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Life Sciences poised for continued growth
•Pharmaceutical•Consumer
Products
• Food Safety•Environmental and Water
Specialized and Complex
Testing
Increased and Enforced
Regulations
Infrastructure and
Population Growth
Public Awareness
and Consumer Concern
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Significant opportunities available to ALS
Note: Company estimates
Large Addressable Market
Strong Growth Fragmented Market
Track Record of Growth Strong ReturnsIrreplicable Global
Platform
Total: US$11bnEnvironmental: US$4bn
Food Safety: US$2bnPharma: US$5bn
ALS Market ShareEnvironmental: 10%
Food Safety: 4%Pharma: <1%
400 sites
70 countries
Global Network
Life Sciences ROIC 19%
Life Sciences EBITDA margin 23%
Life Sciences FY07-16 Revenue CAGR: 16%
Environmental market share increased from 3% to 10% since
2006
Overall: 6% p.a.Environmental: 6% p.a.
Food Safety: 7% p.a.Pharma: 6% p.a.
Life
Sci
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Track record of growth – Life Sciences
LOCATIONS REVENUE EBITDA EBITDA% ROIC
34 $165mn $37mn 22% 13%
LOCATIONS REVENUE EBITDA EBITDA % ROIC
155 $634mn $145mn 23% 19%
FY07 FY16
ROIC calculated as LTM EBIT / Total Invested Capital. Total invested capital calculated as reported segment assets
minus segment liabilities.
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Leading market positions
Note: Company estimates of ALS market share of commercially available work for the services ALS currently offers
ALS Current Food and Environmental Market Share
Europe (Nordic Region, Eastern Europe, and Iberia)
19%
10%
25%
UK
Canada
USA
Latin America
Asia
Australia
11%
25%5%
10%
40%
35%
20%
30%
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0%
5%
10%
15%
20%
25%
30%
0
50
100
150
200
250
300
350
1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16
Revenue EBITDA Margin
Sustainable strong returns
Historical Life Sciences ROIC(1)
1ROIC calculated as LTM EBIT / Total Invested Capital. Total invested capital calculated as segment assets minus segment liabilities.
2 Intertek margin represents the Chemicals & Pharmaceuticals division, SGS margin represents the Life Sciences Services and Environmental
Services divisions. Eurofins margin includes Corporate costs
Historical Life Sciences Revenue and EBITDA Margin(2)
EBITDA Margin (%)Revenue ($ millions)
Intertek 15%SGS 18%
Eurofins 19%
16% 16%18%
22% 23% 23%
20% 20%18% 18%
16% 17% 17%19%
1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16
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Mineral cycle at a trough
Source: Australian Bureau of Statistics
Australian Mineral Exploration Spend (excluding iron ore & coal)
0
100
200
300
400
500
600
AU
D $
millio
ns
27%
decrease
28%
decrease
46%
decrease
53%
decrease33%
decrease
7.5 years 9.0 years 11.0 years
GFC Induced 3.2 years
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Platform well positioned to benefit from recovery
1Estimated 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
2SNL Top 10 Ranked Assay Targets for Copper, Gold, Lead, Silver and Zinc published in Quarterly SOTM reports
Historical revenue and EBITDA margin for the
Minerals and Energy segments (FY ending March)1
Laboratory Service Provider used for SNL Top
Ranked Assay Drill Intersection Announcements
2014-20152
• Leading global platform leveraged to inevitable market recovery
• Enhanced by ongoing cost base management and service optimisation
0.0%
15.0%
30.0%
45.0%
0
200
400
600
800
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Min
era
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En
erg
y R
eve
nu
e $
mill
ion
s
Minerals & Energy Revenue Minerals & Energy EBITDA Margin
Intertek 18%
BV 16%SGS 18%
Intertek 17%BV 18%
SGS 20%
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Mineral cycle – are we past the bottom of the cycle?
$A
UD
$C
AD
$U
SD
SNL Metals & Mining
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Mineral cycle – are we past the bottom of the cycle?
minesite
brownfield
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New Business – structure and end market focus
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