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RIGHT S O L U T I O N S | RIGHT PARTNER
September 2013 Half Year Results
25 November 2013
Important notice and disclaimer
RIGHT SOLUTIONS | RIGHT PARTNER 2
• 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 may include 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.
half year
H1
FY13
($mn)
H2
FY13
($mn)
H1
FY14
($mn)
Revenue 813.6 685.7 744.7
EBITDA1 227.5 178.5 178.7
EBITDA1,2
from continuing operations 223.4 178.5 178.7
Gain on sale of discontinued
operations 5.8 0.1 0
Impairment (6.1) (10.0) 0
EBIT1 200.2 150.1 143.8
NPAT 135.5 91.8 97.7
EPS3 (basic – cents per share) 39.3 26.7 27.1
Dividend (cents per share) 21 27 19
1 Excludes gain on sale of discontinued operations and impairment loss
2 EBITDA from continuing operations post the sale of the Chemical Division (Deltrex and Panamex)
3 Restated for impact of 1:11 renounceable rights issue undertaken in July 2013
RIGHT SOLUTIONS | RIGHT PARTNER 3
September 2013 Half Year Summary
4
REVENUE
30th
September 2013
$745mn
EBITDA
30th
September 2013
$179mn
NPAT
30th
September 2013
$98mn 0
50
100
150
200
250
0
200
400
600
800
1000
H1 2010 H1 2011 H1 2012 H1 2013 H1 2014
EBIT
DA
&
N
PA
T (A
UD
m
illio
n)
Reven
ue (A
UD
m
illio
n)
Revenue EBITDA NPAT
Average USD:AUD (cents)
81 90 106 103 94 8%
RIGHT SOLUTIONS | RIGHT PARTNER 4
21%
28%
September 2013 Half Year Trend
0
50
100
150
200
Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13
EB
IT
($
m
illio
n)
Minerals Life Sciences Energy Industrial Reward + Chemical
RIGHT SOLUTIONS | RIGHT PARTNER 5
Note: Chemical Division (“Chemical”) divested during Sep-12 half year
Operating Profit (EBIT) Diversification
0%
20%
40%
60%
80%
100%
Reven
ue p
er H
alf Y
ear (U
SD
$ m
illio
n)
Minerals Life Sciences Industrial Energy
Prorate Oil
& Gas
H1 FY14
RIGHT SOLUTIONS | RIGHT PARTNER 6
Strategy – Revenue Growth and Diversification
GeochemistryMetallurgyInspectionEnvironmentalFood/PharmaCoalOil & GasAsset CareTribology
Australasia
North America
Asia
South America
Africa
Europe
Middle East
H1 FY14 ($685mn)
G
E
O
G
R
A
P
H
Y
M
A
R
K
E
T
H1 FY13 ($709mn)
RIGHT SOLUTIONS | RIGHT PARTNER 7
Revenue – Market and Geography
0
5
10
15
20
25
Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
CA
PEX
(A
UD
$ m
illio
n)
Quarter
CAPEX (exl. property purchases) Depreciation & Amortisation
8
CAPEX reduced in line with current
operating environment
RIGHT SOLUTIONS | RIGHT PARTNER 8
CAPEX and Depreciation
9
ALS Group Revenue Growth
• Organic Growth -16%
• Divestments -5%
• Acquired Growth +10%
• Currency Impact +3%
Reported Growth -8%
0
100
200
300
400
500
600
700
800
900
Reven
ue (A
UD
$m
n)
-40% -20% 0% 20% 40% 60% 80%
Minerals
Life Sciences
Energy
Industrial
Revenue Growth H1 FY14 Vs H1 FY13
Organic Acquired FX Movement
RIGHT SOLUTIONS | RIGHT PARTNER 9
Revenue Growth
Environmental
Food - Pharma
Electronics
Consumer Products
10
Overview
• Organic revenue growth (9%) in Asia
• Organic revenue growth (10%) in mainland
Europe
• Organic revenue growth (18%) in Scandinavia
• Margin improvement (80bps) in North America
• South America underperforming but improving
• Pricing pressure in Australia but significant
project wins
• Food strategy implemented – “building blocks” in
place, focus now on growth
• New laboratories under construction
• Copenhagen (Denmark)
• Consumer Products Testing business
performing to expectation
H1 FY14 H1 FY13 Change
Revenue $272mn $225mn +21%
EBITDA $69mn $58mn +19%
EBIT $54mn $47mn +15%
EBIT Margin 19.6% 21.0% -140 bps
10 RIGHT SOLUTIONS | RIGHT PARTNER
Life Sciences Division
Geochemistry
Metallurgy
Inspection
Mine Site Services
11
Overview
• Geochemistry
• All markets remain weak – especially West
Africa, Canada and South America
• Global sample volumes stable for last four
months
• Some localized pricing pressure
• Hub & Spoke levers maintaining margins
within expected range of 26% to 32%
• Metallurgy
• North America reasonable
• Challenging market in Australia
• Pilot plants underutilized
• Revenue down 37%
• New Santiago (Chile) facility now
operational
• Inspection
• Revenue +16%
• Margin >20% following losses H1 FY13
• Further improvement to come
H1 FY14 H1 FY13 Change
Revenue $232mn $345mn -33%
EBITDA $75mn $137mn -45%
EBIT $63mn $127mn -50%
EBIT Margin 27.1% 36.7% -960 bps
RIGHT SOLUTIONS | RIGHT PARTNER 11
Minerals Division
Asset Care
Tribology
12
Overview
• Asset Care
• Scheduled outage inspection/maintenance
postponements – especially higher margin
Power Generation work
• Lower margins due to mobilization
problems at Gladstone LNG projects – now
resolved
• Decrease in “jobbing” market and pricing
pressures
• Successful relocation to new Brisbane site
• Successful implementation of Osprey –
“LIMS”
• Tribology
• Revenue growth of 8%
• Market share increase in mining
• Some pricing pressure in Australia
• Significant improvement in North America
• Revenue +4%
• Margin +340bps
• Successful acquisition of OilCheck
H1 FY14 H1 FY13 Change
Revenue $89mn $86mn +4%
EBITDA $16mn $18mn -11%
EBIT $14mn $16mn -13%
EBIT Margin 15.3% 18.4% -310 bps
RIGHT SOLUTIONS | RIGHT PARTNER 12
Industrial Division
Coal
Oil & Gas
13
Overview
• Coal
• Close to bottom of cycle – exploration activity
to pick up in late CY14
• Australian production and export levels at
record high
• Five new on-site production labs in place over
last 12 months
• Pricing pressure globally
• Current margins remain >20%
• Significantly restructured cost base
• Oil & Gas
• Acquired Reservoir Group in August 2013
• Acquired EarthData in July 2013
• Acquisitions performing to plan
• Lab strategy well advanced
• Brisbane lab – completed
• Recruited Mark Beach – global executive
for ALS Oil & Gas lab business
• Further acquisitions planned
H1 FY14 H1 FY13 Change
Revenue $91mn $53mn +70%
EBITDA $27mn $18mn +50%
EBIT $22mn $17mn +29%
EBIT Margin 24.2% 30.9% -670 bps
RIGHT SOLUTIONS | RIGHT PARTNER 13
Energy Division
Mineral Division
Life Science Division
Industrial Division
Energy Division
•Global
Geochemistry
•Australia & Americas
Metallurgy
•Global
Mine Site
•Europe, Africa, Asia & South America
Inspection
•Global excluding Africa
Environmental
•Australia, Asia & Europe
Food - Pharma
•Asia
Electronics
•Asia
Consumer Products
•Australia
Asset Care
•Australia, Asia, Europe & the Americas
Tribology
•Global
Oil & Gas
•Australia, Asia, Africa & North America
Coal
Internal Perspective External Perspective
RIGHT SOLUTIONS | RIGHT PARTNER 14
Divisional and Business Stream Structure
10%
15%
20%
25%
30%
35%
0
300
600
900
1,200
1,500
FY09 FY10 FY11 FY12 FY13 H1 FY14
EBIT
DA
M
arg
in
ALS R
even
ue A
UD
$ m
illio
n
ALS Financial Year Ending March
ALS Revenue ALS EBITDA Margin
SGS
Intertek
Bureau Veritas
Eurofins
Core Labs
EBITDA Margin for SGS, Intertek, Bureau Veritas & Eurofins is for Half Year Ending June 2013 actual, and for Core
Labs 9 months ending September 2013.
EBITDA Margin & Revenue for ALS excludes non-laboratory businesses but does include all corporate expenses..
ALS
RIGHT SOLUTIONS | RIGHT PARTNER 15
Revenue Growth and Margin Strength