ALS : Preliminary Final Report (App 4E) - year ended 31.3.16

Revenues from ordinary activities

Down

8.6%

to

1,364.9

Underlying net profit after tax * attributable to members

Down

26.5%

to

99.5

Net profit (loss) from ordinary activities after tax * attributable to equity holders

Down

37.9%

to

(240.7)

Net profit (loss) for the period * attributable to equity holders

Down

37.9%

to

(240.7)

Basic underlying * earnings per share

Down

32.0%

to

21.7¢

Basic earnings per share

Down

27.7%

to

(52.5)¢

Total dividend per share for the year (partly franked)

Down

35.7%

to

13.5¢

The Group achieved underlying net profit after tax (attributable to equity holders of the Company, and excluding impairment charges, amortisation of acquired intangibles, restructuring and other one-off items) of $99.5 million for FY2016. The result was 27% lower than the $135.4 million underlying profit of FY2015 and was delivered in volatile and challenging global market conditions. Revenue from continuing operations of

$1,364.9 million was down 4% on the $1,422.2 million recorded in FY2015.

The result represented a sound outcome in challenging market conditions, characterised by ongoing widespread commodity price uncertainty. Improved financial performance from Life Sciences Division and the Mineral Inspection and Tribology business streams was more than offset by the decline in earnings experienced by the Energy Division and the Geochemistry and Metallurgy operations within Minerals Division. These businesses are exposed to resource commodity cycles and were faced with further reductions in exploration and development activity coupled with aggressive cost cutting initiatives from producers, leading to a lower overall profit margin for the Group.

The FY2016 statutory result was a net loss after tax attributable to equity holders of the Company (including impairment charges, amortisation of acquired intangibles, restructuring and other one-off items) of $240.7 million compared with the net loss after tax of $174.5 million recorded in FY2015. The statutory loss was primarily due to non- cash impairment charges of $314.0 million after tax against the Company's oil and gas investments, consistent with the disclosure provided to the market on 29 February 2016.

* Refer to page 4 of the attached Annual Financial Report for a reconciliation of Underlying net profit after tax to Statutory net loss after tax.

Dividend Disclosures

Dividends (distributions)

Final dividend

Amount per security 6.0¢

Franked amount per security 2.4¢

Interim dividend

7.5¢

1.875¢

Amount per security

Amount per security of conduit foreign income

Final dividend: Current year

6.0¢

3.6¢

Previous year

10.0¢

7.5¢

Interim dividend: Current year

7.5¢

5.625¢

Previous year

11.0¢

9.9¢

+Ordinary securities (each class separately)

Current period

$A millions

Previous corresponding period - $A millions

30.3

40.8

Preference +securities (each class separately)

-

-

Other equity instruments (each class separately)

-

-

Total

30.3

40.8

Current period

Previous corresponding period

Net tangible asset backing per ordinary security

$0.52

($0.05)