Slide 1: FY2014 results presentation
FY2014 results presentation For personal use only Andrew Bellamy, Chief Executive Officer 27 August 2014 Greg Jason, Chief Financial Officer
Slide 2: Highlights
Highlights For personal use only Revenue: $1.1 billion, exceeding guidance Financial EBIT: $56m ($65m underlying) NPAT: $32m ($39m underlying) Net Debt: Reduced by 50% in FY2014 to be below $70m Diversity: Stronger earnings contribution across the business Operational reducing reliance on
Slide 3: Record revenue driving performance
Record revenue driving performance For personal use only Revenue (A$m) EBITDA (A$m) NPAT (A$m) FY2013 FY2014 FY2013 FY2014 FY2013 FY2014 899.5 1,122.9 62.6 79.3 35.7 31.9 Exceeded revenue guidance, driven by contribution from major vessel programs Underlying earnings in line with expectations –
Slide 4: Objectives for sustained growth
Objectives for sustained growth For personal use only Restructure Improve Ongoing Pursue balance operations delivery opportunities sheet • Simplified debt • Achieved targeted • Maturing vessel • Continue building structure EBIT margin at programs to on success in US operation deliver consistent winn
Slide 5: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 5
Slide 6: Underlying earnings summary
Underlying earnings summary For personal use only Underlying EBITDA grew 33% to $89.1m from Income FY2014 FY2013 Change $67.0m in FY2013 statement (A$m) (A$m) (A$m) USA: EBIT margin was 8.3% in FY2014 after excluding Systems and Support activities. Revenue 1,122.9 899.5 +223.4 Australia: Stron
Slide 7: Segment breakdown
Segment breakdown For personal use only ($m) Ships Systems Support Total Revenue 744.3 144.9 44.4 933.6 USA EBIT 61.5 (0.8) 1.0 61.7 EBIT Margin% 8.3 - 2.3 6.6 Revenue 192.9 1.0 48.0 241.9 Australia EBIT 9.2 (1.1) 8.6 16.7 EBIT Margin% 4.8 - 17.9 6.9 Revenue 33.4 - 0.4 33.8 Philippines EBIT 2.7 - 0.
Slide 8: Cash generation bolstering balance sheet
Cash generation bolstering balance sheet For personal use only 30 June 2013 30 June 2014 $44.6m cash generated from operations in 200 2.5 FY2014 2.19 Net debt reduced by $68.5m in FY2014 increasing balance sheet strength 150 2.0 Higher EBITDA and lower net debt has significantly reduced the le
Slide 9: Discipline in long-term debt reduction
Discipline in long-term debt reduction For personal use only 300 248 250 211 Gross debt ($millions) 200 154 150 135 100 50 19 9 4 1 0 Dec 2012 Jun 2013 Dec 2013 Jun 2014 AUD Denominated (AUD) USD Denominated (USD) SHIPS SYSTEMS SUPPORT 9
Slide 10: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 10
Slide 11: Order book
Order book For personal use only Order book of $2.8 billion secures revenue through CY2018, including: o 10 Littoral Combat Ships for US Navy x8 funded (out of 10 vessel contract) o 10 Joint High Speed Vessels for US Navy Fully funded, with x3 delivered (out of 10 vessel contract) o 8 Cape Class P
Slide 12: Progress across the business
Progress across the business For personal use only •Awarded $30 million contract to design and construct two 45m high speed catamaran ferries for Abu Dhabi National • LCS & JHSV •Sale of Hull 270 stock Oil Company participated in RIMPAC boat April June August 2014 March May July •Contract for two HS
Slide 13: US Navy – Littoral Combat Ship
US Navy – Littoral Combat Ship For personal use only 10 ship contract awarded as prime contractor, worth US$3.5 billion – 8 fully funded, with at least 1 more expected to be funded in Q1 CY15 2 x LCS constructed and delivered by Austal for GD (LCS 2 and LCS 4) Program maturing well: o LCS 6 la
Slide 14: US Navy – Joint High Speed Vessel
US Navy – 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 CY2017 Program progressing well – matured into a phase of efficient production and predictable delivery: o JHSV 1, 2 & 3 – delivered o JHSV 4 – comple
Slide 15: Austal strongly positioned in US
Austal strongly positioned in US For personal use only US Foreign Policy remains Additional opportunities for focused on Asia-Pacific through-life support on LCS Austal-built vessels have defence strategy, with Austal- and JHSV (e.g. support continued to be funded and built LCS and JHSV involved con
Slide 16: Australia – Cape Class
Australia – Cape Class For personal use only $330 million contract for 8 Cape Class Patrol Boats, including $50 million support work Delivered CCPB 1 & 2; remaining vessels all under construction Program has matured significantly, with efficient production expected to drive margin growth Tar
Slide 17: Australia – High Speed Support Vessels
Australia – High Speed Support Vessels For personal use only US$124.9 million contract for the design, construction and integrated logistics support of two 72 metre High Speed Support Vessels Construction has commenced at Henderson shipyard Final vessel to be delivered in CY2016 Deployed wit
Slide 18: Philippines
Philippines For personal use only $30 million contract from the Abu Dhabi National Oil Company to design and construct two 45 metre high speed catamaran ferries Construction has commenced; delivery expected in CY2015 Contract for customisation of Hull 270 Small components supply to Australia
Slide 19: Systems and Support
Systems and Support For personal use only Austal has established a global footprint, strategic partnerships and the IP to provide through life support for defence vessels such as the LCS, JHSV and CCPB Integration of service division in Australia and sale of product line to Thales has increased
Slide 20: Outlook
Outlook For personal use only SHIPS SYSTEMS SUPPORT 20
Slide 21: Strategy
Strategy For personal use only United States Australia Philippines • Progressive growth in • Consolidating and maturing • Continue to build commercial margins with vessel of Cape Class Patrol Boats shipbuilding capability to programs maturing program position Austal for market opportunities • Augmen
Slide 22: Pipeline for vessel programs
Pipeline for vessel programs For personal use only Austal pursuing opportunities to grow order book and secure additional long-term revenue – focus on medium-term shipyard capacity Target markets Vessels • US: potential to extend existing LCS and • Small frigate evolved from modified JHSV programs
Slide 23: Multi-mission combatant vessel
Multi-mission combatant vessel For personal use only Rheinmetall MLG 27mm Mk 49 RAM Rheinmetall MASS-2L MM 40 Block III Exocet Terma SKWS (DL-6T) Mk 56 ESSM A244 Torpedoes Oto Melara 76mm Austal’s design of a smaller frigate-size multi-mission combatant that has significant capability and lethality
Slide 24: Cape-variant patrol boat for Australian Navy
Cape-variant patrol boat for Australian Navy For personal use only SHIPS SYSTEMS SUPPORT 24
Slide 25: Outlook
Outlook For personal use only Continue progressive Diversity and long-term growth in profit margins on nature of vessel programs $1.2bn revenue guidance ship construction, provides visibility on for FY2015 augmented by an increase earnings and strong cash in support work outlook Prudent cash managem
Slide 26: 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