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September 2011 Half Year Overview 29 th November 2011

September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

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Page 1: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

September 2011 Half Year

Overview

29th

November 2011

Page 2: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

2

REVENUE

30th

September 2011

$668mm

EBITDA

30th

September 2011

$172mm

NPAT

30th

September 2011

$102mm

0

20

40

60

80

100

120

140

160

180

0

100

200

300

400

500

600

700

800

900

H1 2008 H1 2009 H1 2010 H1 2011 H1 2012EBIT

DA

&

N

PA

T (A

UD

m

illio

n)

Reven

ue (A

UD

m

illio

n)

Revenue EBITDA NPAT

Average USD:AUD (cents)

84 91 81 90 106

September 2011 Half Year Snapshot (pre unusual items)

22%

54%

45%

Page 3: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

3

Capex (excl. properties) versus Depreciation

0

5

10

15

20

25

30

35

40

45

H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012

AU

D$

mill

ion

Half Year

Depreciation Capex (excl properties)

Page 4: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

Argentina

Chile

Ecuador

Peru

Bolivia

Brazil

Columbia

Mexico

USA

Canada

Burkina Faso Ghana

Mali

Saudi Arabia Turkey

Romania

Poland

Finland Russia

China

Laos

Namibia

South Africa

Tanzania

Malaysia

Thailand

Taiwan

Australia

New Zealand

New Caledonia

Fiji

Hong Kong

Singapore

Indonesia

Portugal Czech Republic

Norway Sweden

Mongolia

Germany Denmark

United Kingdom Ireland

Kazakhstan

Kyrgyzstan Spain

Italy

Netherlands

Zambia

ALS Global Footprint

4

Page 5: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

5

ALS Revenue by Geography and Division

31%

48%

3%

7%

11%

Environmental Minerals

Tribology Coal

Industrial

46%

32%

7%

6%

5% 4%

Australia North America

Europe South America

Africa Asia

Page 6: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

-20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Minerals

Environmental

Coal

Tribology

Industrial

Revenue Growth H1 2012 Vs. H1 2011

Organic Acquired FX Movement

6

ALS Revenue Growth

0

100

200

300

400

500

600

700

ALS R

even

ue A

UD

$

millio

n

ALS Group Revenue Growth

• Organic Growth 24%

• Acquired Growth 17%

• Currency Impact (9%)

Reported Growth 33%

Page 7: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

0%

10%

20%

30%

40%

Minerals Environmental Coal Tribology Industrial

EBIT

Mar

gin

H1 2011 (ALS Group EBIT Margin 25.4%)

H1 2012 (ALS Group EBIT Margin 28.0%)

7

ALS Margin Performance (Inc. all ALS overheads)

0%

10%

20%

30%

EBIT

Mar

gin

Half Year (10 year history)

H1 2012

Page 8: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

8

Minerals Division

H1 2012 H1 2011 Change

Revenue $268mn $153mn 75%

EBITDA $109mn $65mn 68%

EBIT $95mn $53mn 79%

EBIT Margin 35.5% 34.8% +70 bps

Overview

• Exploration Sample Flow up 47% pcp

• Division restructured into four business streams

• Geochemistry

• Metallurgy

• Inspection

• Mine Services

• Significant capacity increases across geochemistry and metallurgical businesses

• Includes Ammtec results for full six months

• Includes Stewart Group results for three months

• Strong result achieved despite impact of high AUD

Page 9: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

9

Environmental Division

H1 2012 H1 2011 Change

Revenue $173mn $156mn 11%

EBITDA $44mn $39mn 13%

EBIT $40mn $35mn 14%

EBIT Margin 23.1% 22.7% +40 bps

Overview

• USA based Columbia Analytical Services acquired in October 2011

• Strong position in the Australian water market

• New Bangkok laboratory fully commissioned

• Successful integration of EML in Australia

• Costs continued to be monitored and improved in North America contributing to

improved margin

• New 42,000 ft2 company owned laboratory under construction in Calgary (Canada)

Page 10: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

10

Coal Division

H1 2012 H1 2011 Change

Revenue $39mn $36mn 9%

EBITDA $10.7mn $9.8mn 9%

EBIT $9.6mn $8.7mn 10%

EBIT Margin 24.4% 24.1% +30 bps

Overview

• South African volumes recovering and margins acceptable

• Australian business results in line with previous half year despite impact of the

Queensland floods

• Anglo Coal outsourcing contract commenced in July 2011

• Brisbane hub laboratory fully commissioned and operational

Page 11: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

11

Tribology Division

H1 2012 H1 2011 Change

Revenue $15.1mn $15.9mn (5%)

EBITDA $3.1mn $2.2mn 41%

EBIT $2.8mn $1.9mn 48%

EBIT Margin 18.6% 12.0% +660 bps

Overview

• Improved performance in most regions saw increased revenue and margins in local

currencies

• Common LIMS now fully operational globally

• Margin in North America significantly improved as a result of cost saving strategies

Page 12: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

12

Industrial Division

H1 2012 H1 2011 Change

Revenue $60mn $57mn 5%

EBITDA $9.7mn $8.3mn 17%

EBIT $8.3mn $7.0mn 18%

EBIT Margin 13.7% 12.1% +160bps

Overview

• Pearlstreet Energy Services successfully divested for $4.1mn

• Asset Care model in place

• Austpower acquisition in October 2011

• Sydney relocated to new premises

Page 13: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

13

Chemical Division

H1 2012 H1 2011* Change

Revenue $45mn $74mn (39%)

EBITDA $3.7mn $6.1mn (39%)

EBIT $3.3mn $4.4mn (26%)

EBIT Margin 7.3% 6.0% +130 bps

Overview

• Significant reduction in revenue due to divestment of Cleantec business

• Improvement in margins achieved in remaining chemical businesses

* Includes full six months of Cleantec

business sold to Ecolab Inc. in December

2010

Page 14: September 2011 Half Year Overview - ALS Global · 11/29/2011  · * H1 2011 includes $2.37 mn in sales from Reward New Zealand. Reward New Zealand operations were sold in April 2011

14

Reward Division

H1 2012 H1 2011* Change

Revenue $67mn $59mn 14%

EBITDA $2.5mn ($1.1mn) NA

EBIT $2.0mn ($1.8mn) NA

EBIT Margin 3.0% (3.0%) +600 bps

Overview

• Business returned to profitability under new management team

• Trading conditions challenging

• Business simplified and focused

* H1 2011 includes $2.37 mn in sales from

Reward New Zealand. Reward New Zealand

operations were sold in April 2011