Austal Limited · ASX:ASB
Austal — H1 FY2020 Earnings Presentation
26 slides from Austal's earnings presentation, Mar 3, 2020
Slide 1: Austal FY2020 H1 Results – Updated Investor Presentation
COMPANY ANNOUNCEMENT 3 MARCH 2020 AUSTAL FY2020 H1 RESULTS – UPDATED INVESTOR PRESENTATION Further to Austal’s (ASX:ASB) announcement of its FY2020 H1 results and the release of the investor presentation detailing those results on 20 February 2020, the Company has updated that investor presentation
Slide 2: FY2020 H1 Results
FY2020 H1 Results 20 February 2020 David Singleton, Chief Executive Officer Greg Jason, Chief Financial Officer
Slide 3: Financial Headlines FY2020 H1
Financial Headlines FY2020 H1 CHANGE FROM PCP • Revenue $1.04 B 22% • EBIT $59.9 m 48% • NPAT $40.8 m 72% • Interim Dividend 3 ¢ per share - • Operating Cash Flow $22.1 m $(79.8) m • Net Cash 1 $152.4 m $1.7 m 1. Excludes the notional debt of the CCPB 9 & 10 leasing program 2
Slide 4: FY2020 H1 Key Facts
FY2020 H1 Key Facts $1.04 B $4.3 B 3 41 6 6,000 ORDER BOOK NEW SHIPS SHIPS UNDER SHIPS EMPLOYEES REVENUE ORDERED CONSTRUCTION DELIVERED OR SCHEDULED 6 7 SHIPYARDS 27 SERVICE CENTRES IN 5 COUNTRIES VESSELS UNDER SUSTAINMENT CONTRACTS 3
Slide 5: Operational Highlights USA
Operational Highlights USA • EPF and LCS programs continue to perform well. • Shipbuilding margin increased from 7.1% in FY2019 H1 to 8.1% in FY2020 H1 . • LCS 22 and EPF 11 delivered (February 2020). • EPF 15 was appropriated but the budget was transferred so award will not occur in the short term.
Slide 6: Operational Highlights Australasia
Operational Highlights Australasia • Australasia EBIT increased from $4.1 m to $8.2 m: • Continued EBIT margin improvement despite expansion challenges but further improvement necessary. • Supply chain challenges have exacerbated impact of heavy delivery schedule but being managed. • 3 major commerc
Slide 7: US President Trump gifted a scale model of the future USS Canberra
US President Donald Trump gifted a scale model of the future USS Canberra (LCS 30) to the Prime Minister of Australia, Scott Morrison during a State Visit to the USA in September 2019. 6
Slide 8: FY2020 H1 Financials
FY2020 H1 Financials 7
Slide 9: Earnings
Earnings $m FY2020 H1 FY2019 H1 Change % Revenue $ 1,038.8 $ 851.3 $ 187.5 22% Record H1 Revenue & NPAT. Operating Revenue increased across EBITDA 84.4 60.7 23.7 39% all shipyards underpinned by: • Strength of USA FY2019 new EBIT 59.9 40.4 19.6 48% vessel orders. • Expansion of commercial shipbu
Slide 10: Segment breakdown
Segment breakdown FY2020 H1 $m Concept Ships Support Other Total Revenue $ 675.1 $ 129.5 $ - $ 804.6 USA: Shipbuilding margin within guidance range. USA EBIT 54.8 12.2 (1.5) 65.6 Support revenue growth EBIT Margin % 8.1% 9.4% - 8.1% with margins above trend level, still expect 7 – 8%. Revenue $ 209.
Slide 11: Cash flow
Cash flow $m FY2020 H1 FY2019 H1 Change Operating $ 22.1 $ 101.9 $ (79.8) Operating: Operating cash flow reduced through consumption of Investing progress payments received in advance during FY2019. Sustaining $ (7.1) $ (7.0) $ (0.0) Investing: Enhancing (2.4) (12.6) 10.2 Sustaining capex in typ
Slide 12: Net Cash / (Debt)
Net Cash / (Debt) December 2019 Net Cash $152 m 1 $m $250 $200 $150 $100 $50 Cash $0 ($50) (Debt) ($100) ($150) ($200) Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 2013 20132 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 1. Excludes the notional debt of the CCPB 9 & 10 leasi
Slide 13: Coronavirus Operational Impacts
Coronavirus Operational Impacts • USA has long-term, firm contracts from the US Navy which are unlikely to be affected by virus issues • LCS orders to H2 FY2024 (LCS 38) • EPF orders until FY2023 (EPF14) with additional vessels likely • Support work predominantly in USA with the Singapore service ce
Slide 14: Coronavirus Operational Impacts
Coronavirus Operational Impacts • Philippines operations unaffected materially by virus issues • Philippines has a strong order book of commercial ferries to early FY2023 completing the Fjordline ferry, Fred Olsen trimaran and the 2nd ferry for Mols Linien. • There are no reported instances of virus
Slide 15: Commercial Ferry Market
Commercial Ferry Market • Austal has successfully expanded its commercial ferry business to Asia over the last 2 years • The new shipyard in Vietnam and the much expanded yard in the Philippines are now fully operational and producing large high speed vessels for the international market • The new f
Slide 16: FY2020 Update
FY2020 Update • Group EBIT upgraded to no less than $110 million • Group Revenue maintained at no less than $1.9 billion • US Shipbuilding EBIT margin range maintained at 7.5-8.5% 15
Slide 17: Business Overview
=) Business Overview AUSTAL
Slide 18: Defence and Commercial vessel programs
Defence RENS Savanaca (GCPE 6) LUttoral Combat Ship (LOS) US Navy 10S 22 detvered LOS 24,28, 28, 90 end 22 under ‘construction ‘Expeditionary Fast Transport (EFF) USNavy EPF M1 delivered EPF 12 and 13 under construction Guardian Class Patrol Boat (GCPE} Commanwealth of Australia re care 8 Se anc an
Slide 19: Operational Overview
Operational Overview gusta
Slide 20: USA operations
USA operations Change since FY2019 Shipbuilding margin improvement to 8.1% (FY2019 H1 margin 7.1%). Littoral Combat Ship Mature program, improved margins LCS 22 delivered (February 2020) LCS 24 & 26 launched LCS 28, 30 & 32 under construction Expeditionary Fast Transport Mature progr
Slide 21: Australia operations
Australia operations Change since FY2019 VESSEL PROGRAMS: GCPB (~$335 million, 21 ship program) - 2 vessels delivered in FY2020 H1, averaging a delivery every 3 months Bajamar Express (118 metre trimaran for Fred Olsen Express) launched February 2020 83 metre trimaran for JR Kyushu rolled out
Slide 22: Philippines operations
Philippines operations Change since FY2019 New shipbuilding facilities, including 120 metre Assembly Bay, officially opened by Philippines Secretary of Defence Delfin Lorenzana, July 2019 VESSEL PROGRAMS: Fjord Line 109 metre Auto Express ferry launched February 2020 - Delivery scheduled 2nd qua
Slide 23: Vietnam operations
Vietnam operations Change since FY2019 VESSEL PROGRAMS: Construction continues on 1 x 94 metre Auto Express ferry for the Government of Trinidad and Tobago Contract for 41 metre catamaran for SGTM of Mauritius announced January 2020 22
Slide 24: China operations
China operations Change since FY2019 VESSEL PROGRAMS: Contract for 1 x 70 metre high speed catamaran for Beihai Xinyi Shipping Co awarded October 2019 2nd of 4 vessels for Xidao Dazhou Tourism Co, a 42.3 metre high speed ferry, delivered December 2019 1 x 42 metre high speed catamaran for Shen
Slide 25: Disclaimer
Disclaimer David Singleton, Chief Executive Officer Telephone: +61 8 9410 1111 For further information visit www.austal.com Disclaimer This presentation and any oral presentation accompanying it has been prepared by Austal Limited (“Austal”). It should not be considered as an offer or invitation to
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