Austal Limited · ASX:ASB
Austal — Shareholder Meeting (October 2013)
23 slides from Austal's shareholder meeting presentation, Oct 25, 2013
Slide 1: 2013 AGM – CEO presentation
2013 AGM – CEO presentation For personal use only Andrew Bellamy, Chief Executive Officer 25 October 2013
Slide 2: Highlights
Highlights For personal use only Record revenue of $902.8 million, a 38% increase on FY2012. Financial Earnings consistent with guidance: o $62.6 million EBITDA. o $35.7 million statutory NPAT. Balance sheet strengthened and simplified debt facility in place. EBIT margin almost doubled at US
Slide 3: Financial growth targets met
Financial growth targets met For personal use only Revenue (A$m) EBITDA (A$m) NPAT (A$m) FY2012 FY2013 FY2012 FY2013 FY2012 FY2013 653.0 902.8 35.5 62.6 11.0 35.7 Strong improvement in earnings and revenue: o Revenue of $902.8 million. o EBITDA of $62.6 million. o NPAT of $35.7 million. EBIT mar
Slide 4: Delivered on divisional outlook
Delivered on divisional outlook For personal use only November 2012 outlook End FY2013 USA • Apply learnings to improve margins. • 5.2% EBIT margin for FY2013; $39.2m EBIT. • JHSV 10, LCS 14 & LCS 16 contracts to be funded. • All three contracts funded, with LCS contracts funded post-sequestration.
Slide 5: Objectives for sustained growth
Objectives for sustained growth For personal use only Restructure Improve Ongoing Pursue balance operations delivery opportunities sheet • Reduced net debt • Achieved targeted • Cash • Continue to target and simplified +5% EBIT margin management opportunities for debt structure. at US operations. in
Slide 6: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 6
Slide 7: Earnings summary
Earnings summary For personal use only Strong growth and met guidance for the year. Income FY2013 FY2012 Change statement (A$m) (A$m) (A$m) USA: EBIT margin improved from 2.7% in FY2012 to 5.2% in FY2013, with lessons learnt from first-in-class JHSV. Revenue 902.8 653.0 +249.8 Australia: Opera
Slide 8: Balance sheet
Balance sheet For personal use only Growth in asset base, reflecting increasing scale Balance At 30 At 30 Change of USA business. sheet Jun 2013 Jun 2012 (A$m) summary (A$m) (A$m) Balance sheet strengthened by successful $77.9m capital raising. Total assets 946.5 826.0 +120.5 Net debt reduced
Slide 9: Debt position
Debt position For personal use only Significant steps taken to reduce net debt Pre-capital raising At 30 Jun 13 250 50% and gearing, and simplify the Company’s debt profile. 38.7% Net Debt/EBITDA at 2.12x, within Board’s 200 40% target range (1.5x-2.5x) Completed $77.9 million capital raising,
Slide 10: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 10
Slide 11: Major progress across the business
Major progress across the business For personal use only • Commenced • Joey Turano • CCPB 1 steps to • JHSV 1 appointed delivered. improve the delivered President at • Initiated • JHSV 2 balance • Craig Philippines efficiency delivered. • USS sheet – debt Perciavalle Shipyard. changes to • JHSV 3 Co
Slide 12: Order book
Order book For personal use only Order book of $2.2 billion secures revenue until 2017, including: o Littoral Combat Ships for US Navy x6 funded (out of 10 vessel contract) x2 delivered under 2 vessel contract from General Dynamics. o Joint High Speed Vessels for US Navy Fully funded, with x2 deli
Slide 13: Littoral Combat Ship
Littoral Combat Ship For personal use only 10 ship contract awarded as prime contractor, worth US$3.5 billion. o 6 fully funded, final 4 ships contracted to be funded in FY2014 and FY2015. 2 additional vessels constructed and delivered by Austal for General Dynamics (LCS 2 and LCS 4). Program
Slide 14: Joint High Speed Vessel
Joint High Speed Vessel For personal use only 10 ship award to Austal valued at US$1.6 billion (fully funded), securing work through to 2017. Program is maturing and has been considerably de-risked, following lessons learnt in construction and delivery of JHSV 1: o JHSV 2 delivered and JHSV 3 la
Slide 15: Austal well positioned in US
Austal well positioned in US For personal use only Additional opportunities for Austal-built vessels US focused on Asia- through-life support on have continued to be Pacific defence LCS and JHSV and funded strategy future block-buy contracts. SHIPS SYSTEMS SUPPORT 15
Slide 16: Cape Class Patrol Boat
Cape Class Patrol Boat For personal use only $330 million contract to design, manufacture and support 8 new Cape Class Patrol Boats, including $50 million support work – underwriting activity at Henderson shipyard until H1 FY2016. Making good progress with efficiencies improving. o CCPB recently
Slide 17: Philippines
Philippines For personal use only Enables Austal to compete in the global commercial market Delivered a profit in its first full year of operations. First ship delivered December 2012. Growth to 500 employees achieved as planned and technology transfer to improve competitive position. Full
Slide 18: Service and systems
Service and systems For personal use only Provides long-term opportunity and stability for Austal through annuity-style work. “The JHSV could prove especially valuable in the Asia-Pacific region, where the distances make Global footprint, especially in the Asia Pacific range and the ability to m
Slide 19: Outlook
Outlook For personal use only SHIPS SYSTEMS SUPPORT 19
Slide 20: Strategy
Strategy For personal use only United States Henderson Philippines Support • Progressive growth • Increase efficiencies • Continue building • Utilise our service in margins as vessel on Cape Class technological network to target programs mature Patrol Boats, capabilities for service work in Asia • A
Slide 21: Outlook
Outlook For personal use only Progressive growth in profit Prudent cash management in Revenue of approximately $1 margins, augmented by increase place to allow delivery on record billion in FY2014. in service and systems work amount of work in hand, with no over time. dividend in the short-term. Fun
Slide 22: Disclaimer
Disclaimer For personal use only Andrew Bellamy, 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 of
Slide 23: 2013 Annual General Meeting
2013 Annual General Meeting For personal use only 25 October 2013