Slide 1: Austin Engineering – BBY Mining Conference
For personal use only Austin Engineering BBY Mining Conference May 5, 2008 Sydney
Slide 2: About Austin Engineering
About Austin Engineering For personal use only Listed on ASX in 2004 at 20c; share price now approx. $2.30 National and international designer and manufacturer of mining products Serves global resources sector from manufacturing operations in Brisbane, Perth, Mackay, Wyoming USA and Oman Key
Slide 3: Austin Engineering – Financial snapshot
Austin Engineering – Financial snapshot For personal use only Key 2007 financial data EBIT $7.31m Net profit $4.97m EPS 12.45c Dividends per share 4c Payout ratio 25-40% Board and executive team Peter Fitch Chairman Michael Buckland Managing Director Peter Pursey Non-exec Director Eugene Fung Non-ex
Slide 4: What we make
What we make For personal use only 9 Field-proven across all applications 9 Offer operational efficiencies for customers 9 Used by major operators around the world 9 Quality products, Dump truck bodies up to 360 tonnes payload capacity Excavator buckets up to 35m³ capacity leading designs and brandi
Slide 5: Austin's clients and revenue sources
Austin’s clients and For personal use only revenue sources 9 Good quality blue-chip, supportive clients Type Client 9 Clients understand us Miners Rio Tinto, BHP, Xstrata, Macarthur Coal, Anglo Coal, and we understand Vale*, Codelco* them OEMs Komatsu, Terex, Liebherr, Hitachi, Hastings Deering 9 Mo
Slide 6: Serving the resources industry with a global presence
Serving the resources industry For personal use only with a global presence
Slide 7: Locations and capabilities
Locations and capabilities For personal use only Location Area Serviced Products and Services 9 Second workshop in Perth, WA opened in Q2 Austin, Perth Pilbara, Kalgoorlie, Dump truck bodies, buckets, Western Australia, service vehicles, tyre handler FY 2008, increasing Africa, Indonesia and materia
Slide 8: What our clients want – and what we deliver
What our clients want – and For personal use only what we deliver Client needs Delivery on time to the highest standards of quality Product reliability Innovation and custom designs Operational efficiencies through maximum payloads Competitive prices, reduced costs 9 Client confidence Aust
Slide 9: Building a dump truck body
Building a dump truck body For personal use only Robotic welding of floor Assembly of all components Finished product Delivery to customer Operating on site
Slide 10: Track record of growth
Track record of growth For personal use only 9 Revenue and NPAT growth secured through higher sector activity and acquisitions
Slide 11: Track record of growth
Track record of growth For personal use only 9 Improved operational performance secured by increased productivity, automation and higher-margin work
Slide 12: Track record of growth
Track record of growth For personal use only 9 Improvement in key performance criteria flowing from improved underlying financial performance and business fundamentals
Slide 13: Austin's balance sheet
Austin’s balance sheet For personal use only 9 Strong, positive cash balances 9 Relatively low ongoing capital expenditure Dec 07 June 07 $m $m requirements 9 Debt mostly USD loan Cash 4.7 6.3 to fund Westech Receivables 18.4 10.2 purchase Inventories 6.8 3.2 9 Ability to secure further debt in USD
Slide 14: Austin's cashflow
Austin’s cashflow For personal use only 9 Operational cashflow FY FY FY FY HY HY benefit from advance 2004 2005 2006 2007 06/07 07/08 progress payments Operating 1.1 2.4 4.5 3.7 (0.7) 6.3 9 High emphasis on cashflow capital expenditure to Investing (0.2) (14.0) 15.1 (18.5) (6.3) (25.5) expand capaci
Slide 15: Industry comparisons
Industry comparisons For personal use only Source: ABN AMRO/ABN AMRO Morgans
Slide 16: Outlook - favourable industry conditions
Outlook - favourable For personal use only industry conditions China, India and SE Asian economies to drive demand for commodities and energy World steel production to increase 42% and coal trade 25% by 2013 (ABARE) Increased production to lead mine development, brownfields expansion and repai
Slide 17: Firm commodity prices
For personal use only Firm commodity prices 9 Commodity prices expected to remain firm for medium term; recent coal contracts set at $US300 per tonne 9 Budgeted global mineral exploration expenditure forecast up 25% at $US13.1bn in 2008 (Metals Economics Group)
Slide 18: Spotlight on Canadian Tar Sands
Spotlight on Canadian For personal use only Tar Sands Canada has one of the world’s largest deposits of tar sands At least 1.7 trillion barrels in the Athabasca oil sands deposit Improved technology emerging to make extraction more economically viable Number of expansion projects under consi
Slide 19: Spotlight on Central Qld Coal Fields
Spotlight on Central Qld For personal use only Coal Fields Coal companies positioning themselves for further export growth Qld government has reported 28 advanced coal projects in central Queensland, comprising 17 new mines and 11 expansions Estimated expenditure of $11.5bn on coal projects to
Slide 20: Spotlight on Western Australia Iron Ore Region
Spotlight on Western For personal use only Australia Iron Ore Region Vast expansion programs underway Sound economic fundamentals, more iron ore producers entering into the market Long-term outlook being adopted by OEMs, closely following long-term outlook by major miners High activity = hig
Slide 21: Austin's strategy
Austin’s strategy For personal use only Operational Growth and diversification through acquisition, expanding manufacturing Target high-growth oil, iron ore and coal markets; Canada, South America and Australia Establish additional overseas operations in new markets, e.g. oil and gas Employ
Slide 22: FY 2008 in review
FY 2008 in review For personal use only Perth and Brisbane workshops operating at full capacity Continuing to receive strong flow of orders, extending into 2H 2008-09 Westech performing to expectations, solid forward workload for manufacturing operations Effective and growing market penetrat
Slide 23: Austin's outlook
Austin’s outlook For personal use only Record work in hand with orders into 2008-09 No sign US economic slow down having an impact on mining regions Resources sector to remain strong for both new projects and repair and replace Financial capacity to pursue further acquisitions To expand We
Slide 24: Thank you
For personal use only Thank you For more information please visit www.austineng.com.au