Slide 1: FY2020 Results Presentation
Austin Engineering Limited FY2020 Results Presentation 27 August 2020
Slide 2: Important Information
Important Information This presentation has been prepared by Austin Engineering Limited (ABN 60 078 480 136) (“Austin” or the “Company”). The information in this presentation should be read in conjunction with Austin’s continuous disclosure announcements. The information is of a general nature and h
Slide 3: Agenda
Agenda ▪ Overview ▪ Analysis of Financial Results ▪ Review of Operations ▪ Market Outlook and Guidance ▪ Appendices P3 Austin Engineering Limited FY2020 Results Presentation | August 2020 www.austineng.com
Slide 4: Overview
Overview • Statutory net profit after tax grew 79% to $4.5 million in FY2020, reflecting an EPS of 0.78cps Strong earnings in • A final fully franked dividend of 0.3cps, total FY2020 dividends of 0.5cps unprecedented global crisis • Normalised EBITDA of $22.5 million, below original earnings guidanc
Slide 5: Analysis of Financial Results
Analysis of Financial Results Chief Financial Officer: Sam Cruickshank P5 Austin Engineering Limited FY2020 Results Presentation | August 2020 www.austineng.com
Slide 6: Financial Performance: Normalised
Analysis of Financial Results Financial Performance: Normalised • Revenue was in line with the previous year Proforma Post Post Post Post Post Pre AASB16 – Asia-Pacific and North America each increased their AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 FY % Period ending FY2020 2H2020 1H2020 FY2019 FY201
Slide 7: Financial Performance: Statutory
Analysis of Financial Results Financial Performance: Statutory Proforma Pre Post One-off net costs: Post Post Post Post AASB AASB16 AASB 16 AASB 16 AASB 16 AASB 16 16 FY % • Retrenchments and shutdown costs of Colombian site Period ending FY2020 2H2020 1H2020 FY2019 FY2019 Change contracts ($2.3 mil
Slide 8: Cash Flow
Analysis of Financial Results Cash Flow From continuing and discontinued operations Year ending 30 June $M 2020 2019 Historical cash flow from operating activities Cash flows from operating activities 30 NPAT 5.2 (4.6) 25 Add: 20 • Depreciation and amortisation 7.9 6.5 15 • Impairments 0.1 4.0 10 •
Slide 9: Working Capital
Analysis of Financial Results Working Capital As at As at As at Working capital reduced from $22.1 million in 30 Jun 31 Dec 30 Jun 30 June 2019 to $5.4 million, a level it has 2020 2019 2019 maintained since 31 December 2019 The reduction from the prior year relates 80.0 mainly to an increase in con
Slide 10: Balance Sheet
Analysis of Financial Results Balance Sheet As at As at 30 Jun 30 Jun Gearing Summary 2020 2019 Net Debt and Gearing Total Assets $M 180.4 177.4 100 Total Shareholders Funds $M 98.5 101.4 90 40% Net Debt - 80 discontinued Facilities related to continuing and discontinued operations operations 70 30%
Slide 11: Debt Refinancing
Analysis of Financial Results Debt Refinancing Since January 2020, Austin has focused on improving its debt profile to reflect the significant reduction in its financial risk to lenders. Austin’s core debt facilities since November 2017 have been provided by Assetsecure (Australia) and Bibby (now eC
Slide 12: Review of Operations
Review of Operations Managing Director: Peter Forsyth P 12 Austin Engineering Limited FY2020 Results Presentation | August 2020 www.austineng.com
Slide 13: FY2020 Asia-Pacific
Review of Operations by Region FY2020 Asia-Pacific Asia- FY% Iron Ore FY2020 2H2020 1H2020 FY2019 Change Coal Pacific Revenue $M 116.7 67.7 49.0 108.0 8% Copper Perth Gold EBITDA (normalised) $M 14.0 9.4 4.6 11.3 23% Other Indonesia Mackay Hunter Valley EBITDA margin % 12.0% 13.9% 9.4% 10.5% 14% Bri
Slide 14: FY2021 Trading: Asia-Pacific
Review of Operations by Region FY2021 Trading: Asia-Pacific Growth and Trading Landscape • Perth is expected to continue to lead the region in economic returns with a strong order book well into FY2021 and a robust pipeline of work • Indonesia faced a number of delays related to work expected to be
Slide 15: FY2020 North America
Review of Operations by Region FY2020 North America North FY% Iron Ore FY2020 2H2020 1H2020 FY2019 Change Coal America Revenue $M 66.4 40.3 26.1 65.1 2% Copper Gold USA Other EBITDA (normalised) $M 6.9 7.2 (0.3) 5.5 26% EBITDA margin % 10.4% 17.9% (1.2%) 8.4% 23.5% North America’s contribution to th
Slide 16: FY2021 Trading: North America
Review of Operations by Region FY2021 Trading: North America Growth and Trading Landscape • Outlook for FY2021 in North America is challenging. Austin entered the year with a low order book in this region • Whilst the order book is low, the level of quoting for projects is high providing some reason
Slide 17: FY2020 South America
Review of Operations by Region FY2020 South America South FY% FY2020 2H2020 1H2020 FY2019 Change Iron Ore America Revenue $M 47.2 26.7 20.5 57.7 (18%) Coal Copper Chile Gold Peru EBITDA (normalised) $M 1.6 1.2 0.4 4.6 (65%) Other Colombia EBITDA margin % 3.4% 4.5% 1.9% 7.9% (57%) South America’s con
Slide 18: FY2021 Trading: South America
Review of Operations by Region FY2021 Trading: South America Growth and Trading Landscape Remaining Asset Sales • Chile’s order book for FY2021 is among the strongest in the group. The outlook for this market is very positive • Results in Colombia and Peru are likely to be subdued whilst 30 June 202
Slide 19: Safety
Review of Operations Safety Safety statistics TRIFR LTIFR 25 25 20 20 Other Machinery and Equipment Manufacturing Frequency rate Frequency rate 15 15 Industry Average – 10.3 10 10 5 5 0 0 FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 Total Reportable Incident Frequency Rate Lost Time Injury Frequency Ra
Slide 20: People
Review of Operations People Headcount • Headcount decreased to 1,248 at 30 June 2020, from 1,719 at 30 June 2019 due to: ⎯ Reduction of over 300 staff members in Colombia that were engaged on site contracts that were terminated during the year Austin headcount at year end, by region ⎯ Reductions of
Slide 21: Market Outlook and Guidance
Market Outlook and Guidance Managing Director: Peter Forsyth P 21 Austin Engineering Limited FY2020 Results Presentation | August 2020 www.austineng.com
Slide 22: Commodity Analysis
Market Outlook and Guidance Commodity Analysis Iron ore, Thermal coal and Copper Iron ore Thermal Coal Copper (RHS) 180 10,500 10,000 Iron ore/Thermal coal - AUD/ tonne 160 9,500 Copper - AUD/tonne 140 9,000 8,500 120 8,000 100 7,500 7,000 80 6,500 60 6,000 Source: IndexMundi Iron Ore Coal Copper •
Slide 23: Austin's Macro View
Market Outlook and Guidance Austin’s Macro View Source: S&P Global Market Intelligence Source: theparkerbaycompamy.com • Total capital expenditure in the mining industry across 15 • Parker Bay Surface Mining Equipment Index tracks the different commodities is expected to fall by US$5.4 billion in pu
Slide 24: FY2021 Outlook
Market Outlook and Guidance FY2021 Outlook • Outlook by Region: — Asia-Pacific is well positioned to grow its earnings contribution to the group with a strong year expected for the two large businesses in the region, Perth and Indonesia — North America enters FY2021 with a low order book, however th
Slide 25: Appendices
Appendices: – Competitive advantage – Market analysis – Operations – Products and services P 25 Austin Engineering Limited FY2020 Results Presentation | August 2020 www.austineng.com
Slide 26: Competitive advantage
Appendix: Competitive advantage Market leading position Strong financial position • Large global producer of custom truck • Refinancing of debt facilities to bodies and buckets significantly lower cost options • Strategically located across five • Net cash (excluding AASB 16 leases) at continents -
Slide 27: Market analysis
Appendix: Market analysis Asia-Pacific North America South America • Largest territory covering Australia, • History of success with the strong • Historically a challenging market for Asia and Africa Austin Westech product brand and Austin established field population • Australia is a mature market
Slide 28: Operations
Appendix: Operations Asia-Pacific • Perth is the site of the largest workshop in Australia, spread across two locations in Kewdale. Predominantly services the Pilbara iron ore range as well as other key mining areas in Brisbane Perth Western Australia Indonesia • Indonesia is home to a modern worksh
Slide 29: Products and services
Appendix: Products and services Austin Engineering Products Service • Leading designer and manufacturer of customised dump truck • A complete service provider offering on and off-site repair and bodies, buckets and ancillary products used in the mining maintenance to customers including miners, mini
Slide 30: Lease Accounting Impacts
Appendix: Lease Accounting Impacts FY2020 financial impact of new leasing standard – AASB 16 • AASB 16 provides a new lessee accounting model which requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months. Depreciation on leased assets and interest on l
Slide 31: www.austineng.com
Innovation Update Limited Austin Engineering www.austineng.com P 31 www.austineng.com