C ompan y Secr e t ary MICHAEL PEAR SON LLB B A GAICD GCIS Dip In v R el AIRA Michael P e arson is a member o f the Go v ernanc e Ins titut e Aus tr alian Ins titut e o f C ompan y Dir ec t ors and Queensland L a w Socie t y Mr P e arson is an e xperienc ed la wy er and c orpor a t e go v ernanc e pr o f es sional with o v er 15 y e ars o f e xperienc e as a C ompan y Secr e t ary and Gener al C ounsel with o ther A SX lis t ed c ompanies such as C ar dno Limit ed and the A v eo Gr oup Principal ac tivities T he principal ac tivities o f the Gr oup during the c ourse o f the fnancial y e ar w er e the pr o vision o f pr o f es sional t echnical servic es primarily in the ar e as o f t es ting me asur emen t and inspec tion suppor ting en vir onmen t al monit oring f ood and pharmac eutical qualit y as sur anc e mining and miner al e xplor a tion c ommodit y c er tifca tion equipmen t main t enanc e and as se t car e oper a tions During the y e ar the Gr oup e xpanded and div ersifed its t echnical servic e capabilities thr ough ac quisitions in f ood pharmac eutical en vir onmen t al and c ommodit y inspec tion t es ting in mainland Eur ope and Nor th and South America Otherwise ther e w er e no signifcan t changes in the na tur e o f the ac tivities o f the Gr oup during the y e ar R e vie w o f r esults and oper a tions GR OUP BUSINES S SU MMAR Y T he Gr oup is c ommitt ed t o main t aining the s tr ong and sus t ainable gr o w th s tr a t egies which ha v e made it a suc c es s ful global c ompan y ALS aims t o be a le ading pr o vider o f servic es t o clien ts acr os s the br oad r ange o f indus try sec t ors c o v er ed within the Principal Ac tivities in the pr e vious sec tion W e seek t o build s tr ong par tnerships with our clien ts b y deliv ering c os t e f f ec tiv e solutions back ed b y the bes t in qualit y servic e and t echnical capabilities FY2019 can be summarised as a y e ar o f s tr ong per f ormanc e giv en the c on tinued impr o v emen t in mark e t c onditions f or those busines ses e xposed t o the miner al c ommodities c y cle and a y e ar o f fur ther e xpansion in the les s c y clical Lif e Scienc es and Indus trial oper a tions T he C ommodities division bene ft ed fr om s tr onger mark e t c onditions and its scalable busines s models dr o v e signif ican t impr o v emen ts in the division s fnancial r esults f or the y e ar Geochemis try s ample fo ws incr e ased global ly as bo th es t ablished mining clien ts and junior e xplor ers c on tinued t o lif t their ac tivit y spending le v els par ticularly in the H1 FY2019 W hile c os t managemen t r emained a f ocus f or the C ommodities division equal a tt en tion w as paid t o pr oduc tivit y and the timely injec tion o f human and capit al r esour c es t o servic e the incr e asing w orkloads T he Lif e Scienc es division c on tinued t o sho w r e v enue gr o w th bo th fr om or ganic e xpansion and fr om ac quisitions ha ving c omple t ed ac quisitions in Eur ope South America and Nor th America FY2019 w as also an impor t an t y e ar in t erms o f mar gin impr o v emen t as the initia tiv es ar ound c os t managemen t and r a tionalis a tion dr o v e a solid incr e ase in mar gins ha ving al l r egions c on tribut e positiv ely t o this out c ome T he Indus trial division deliv er ed s tr ong gr o w th in r e v enue driv en b y suc c es s ful busines s de v elopmen t but amid c on tinuous pric e pr es sur e in k e y mark e ts and change in the mix o f servic es in the A s se t C ar e busines s e xperienc ed a r educ tion in o v er al l mar gin T he C ompan y r emains suppor tiv e o f the s tr a t egic gr o w th plans o f the Indus trial division includ ing c on tinued capit al in v es tmen t geogr aphic e xpansion and fur ther de v elopmen t o f t echnical and sys t ems capabilities A s w as pr e viously announc ed in M ar ch 2018 f ol lo wing a r e vie w o f the Gr oup s pr esenc e in the sec t or Dir ec t ors decided t o e xit the Oil Gas labor a t ories busines s C onsidering the c on tinuous chal lenges f ac ed b y this busines s and absenc e o f an y suit able div es tmen t alt erna tiv e Dir ec t ors ha v e fur ther de t ermined t o close this oper a tion in M ar ch 2019 R e f er Financial S t a t emen t no t e 1e T he Gr oup is c on fden t tha t the qualit y o f its as se ts its oper a ting model and its disciplined s tr a t egic f ocus wil l see it c on tinue t o incr e ase mark e t shar e and deliv er gr o w th out c omes f or its shar eholders ALS c on tinues t o pursue gr o w th oppor tunities within the Lif e Scienc es and Indus trial divisions par ticularly in the f ood s a f e t y pharmac eutical and tribology sec t ors wher e it is e v alua ting a selec t number o f high qualit y ac quisition t ar ge ts T he Gr oup s fnancial per f ormanc e f or the y e ar t o 31 M ar ch 2019 is summarised as f ol lo ws 12 ALS LIMITED AND IT S SUBSIDIARIES A NNU AL F INANCIAL R EPOR T F OR THE Y EAR E NDED 31 M AR CH 2019 F INANCIAL REPOR T D IRE CT ORS REPOR T C O MP ANY S E CRET AR Y G R OUP BUSINES S SU MMAR Y