Presentation Transcript

1. The next stage of our journey

   July 2013
2. The Reservoir Group Vision To build a group of niche service companies with activities focused in the reservoir. To operate under a federal structure, allowing each specific activity autonomy to operate and generate its own organic growth, whilst benefiting from the group mass and synergies. 2007 to 2011 – significant growth through acquisition 2011 to 2013 – new Group members integration and organic growth Challenge – how to continue that growth and deliver added value for the Group and our customers?
3. A new journey Reservoir Group acquired by Australian Laboratory Services (ALS) ALS: Publicly traded company on the Australian stock exchange (ASX : ALQ) Global market leading analytical laboratory and technical services provider: minerals, life sciences, energy and industrial Annual revenue of $1,499m (AUS) = 6 x more than our Group 13,000+ employees = 13 x larger than our Group 350 facilities across 55 countries Headquartered in Brisbane
4. A long history Started as a soap manufacturer Campbell Brothers in Queensland in 1863 and listed on the Australian Stock Exchange in 1952 In 1974 ALS was formed and provided analytical services for the oil shale and mineral exploration industries Campbell Brothers became a major manufacturer of chemical products, and acquired ALS in 1981 Rebranded the Campbell Brothers as ALS in 2012 Laboratory operations are now the major focus of the company Now in the top 100 companies on the Australian Stock Exchange
5. 4 divisions, 10 global business streams
6. Global Footprint 13,000+ staff, 350 locations, in 55 countries, on six continents
7. Why did ALS acquire us? Business fit: ALS is the leader in many of its market segments but its ambition is to develop a strong Oil & Gas upstream service sector Reservoir Group brands are already leaders in their specialist niches Most of our brands are strongly related to sampling and analysis ALS can provide additional testing services to complement the Group offering Reservoir Group brands could extend their services to include ALS markets e.g. mining, environmental services Geographical fit: ALS has a global presence including areas where Reservoir Group currently has limited coverage China, FSU, Far East, Australia, South America, Scandinavia Cultural fit: ALS has been built through a mix of organic growth and acquisitions and values entrepreneurship and creativity Strong management teams The businesses are run with a degree of autonomy Similar values
8. Business fit Reservoir Group will become the foundation of the new ALS Oil & Gas division We will benefit from the extensive analytical capabilities of ALS
9. Geographical fit Areas where ALS presence could provide a strong lever for Reservoir Group Growth Areas where Reservoir footprint and customer relationships could provide synergy revenues for ALS Areas where combined strength will be augmented further All across the globe, ALS and Reservoir Group synergies will be combined to offer a more powerful proposition to our customers
10. Cultural fit – similar values Reservoir Group ALS Honesty and Integrity Exceeding Client Expectations Belief in our Ability Hard Work and Continuous Improvement Doing it Better Celebrating Success Safety as a Priority Honesty, integrity and respect Engage with all our stakeholders fairly and openly with the aim of achieving mutual benefit Value each of our people equally and aim for all to fulfil their potential Open style of working, encouraging communication across levels Innovation, research and development in our businesses Highest ethical standards and at all times abide by local and international laws Acknowledge and respect regional cultures and beliefs Both companies have 7 similar values, a good fit: RELIABILITY - QUALITY - LEADERSHIP - TRUST
11. Health Safety and Environment “Safety as a Priority” is a core value of ALS Long established safety program showing positive trends with a current LTIFR for the ALS Group of 1.9. Positive safety metrics are also tracked via a PPI scorecard for each business Injury rates better than ASX Top 100 average* ASX 100 Average ALS LTIFR** *Source: Citi Investment Research & Analysis – Safety Spotlight: ASX 100 Companies & More (May 2013) **Lost Time Injury Frequency Rate
12. Health Safety and Environment PPI Scorecard ALS HSE Foundation Standard consists of 13 goals that each site location must adhere to including incident and injury management, emergency preparedness, risk and compliance management, monitoring and inspections, training and education A Back to Basics HSE program is in place to ensure safety fundamentals are being implemented to a consistent and world class standard across all ALS site locations globally
13. What happens to our management team? Wellvention WellTools Omega Well Monitoring Empirica MSI The management teams will continue to report to Pascal Bartette
14. What is our new vision? As part of the ALS family, to become the global number 1 oil and gas specialist technical support company Through our joint capabilities, be unique in the marketplace by offering global customers a thorough analytical service from sampling analysis to interpretation The journey continues, at an accelerated pace, offering integrated, unrivalled solutions in the industry. And we need your help to make this happen.
15. ALS Future Vision
16. Why is this change good for you? Long term future of our business: This transaction offers a more secure future and permanent home for all our brands, including additional investment and growth opportunities Part of a global leader: Increased job opportunities within the wider ALS company Increased internal support: such as in-house training schemes and development programs
17. What happens now? Business as usual for now: Management will stay the same Our locations will stay the same, no relocation is currently planned Your day to day job will stay the same Your employment terms and conditions will stay the same Changes you might see in the next 90 days: You may meet your counterparts or other people at ALS Our businesses will start to be integrated with ALS – as smoothly and comfortably as possible Branding will start to evolve to include references to ALS and to include its logo Strategic planning – we will be looking at plans both in our companies and in ALS to make sure we get the most out of being part of ALS
18. Any questions?
19. What if you have more questions? You should have received: A link to a joint podcast by Pascal and the ALS CEO Greg Kilmister A ‘Welcome Booklet’ from ALS (attached to the email) Refer to the new microsite where all updates will be posted www.reservoir-group.com/rightpartner Watch out for an email with information on how to log into your ALS online induction Ask your line manager Email your concerns to Pascal Bartette pascal.bartette@alsglobal.com