Austin Engineering Limited · ASX:ANG
Austin Engineering — Shareholder Meeting (November 2018)
28 slides from Austin Engineering's shareholder meeting presentation, Nov 23, 2018
Slide 1: Austin Engineering Ltd Financial Year 2018 AGM Presentation
Austin Engineering Ltd Financial Year 2018 AGM Presentation 23 November 2018 Imouraren Mine - Niger
Slide 2: Agenda
Agenda 1 Commencement of meeting at 9:00 am (AWST) 2 Chairman’s address and presentation 3 Managing Director’s address and presentation 4 Questions 5 AGM formal business of the meeting 6 Close Page 2 www.austineng.com.au
Slide 3: Chairman's address – Jim Walker
Chairman’s address – Jim Walker Page 3 www.austineng.com.au www.austineng.com.au
Slide 4: Introductions
Introductions Chairman and Independent Non-Executive Director Jim Walker Managing Director Peter Forsyth Independent Non-Executive Directors Chris Indermaur and Sy van Dyk CFO and Company Secretary Christine Hayward Auditor Paul Gallagher (BDO) Page 4 www.austineng.com.au
Slide 5: Highlights
Highlights Underlying net profit after tax of $5.4 million, the outcome of extensive restructuring of the business and focused implementation of the turnaround strategy Return to Profit ✔ EBITDA up 62% on 30% lift in margins Normalised EBITDA guidance of $25 million - $28 million for FY19 Bala
Slide 6: Managing Director's Address - Peter Forsyth
Managing Director’s Address - Peter Forsyth Page 6 www.austineng.com.au www.austineng.com.au
Slide 7: Strategic Priorities
Strategic Priorities Actions during FY18 To be the market leader supplying customised truck bodies and buckets globally Appointment of a Global Manager Market Development and Innovation and Global Manager Business operations re-oriented to provide clients with engineered solutions Operations com
Slide 8: Market Analysis
Market Analysis The Americas Australia Asia • History of success with the • New designed JEC-LD truck • Batam is a world-class facility, strong Westech product brand body has created new business meeting Austin’s global standards opportunities • Existing customer base, • Growth in local Indonesia ma
Slide 9: Industry Outlook
Industry Outlook Top 5 Global Mining Companies CapEx Spend Parker Bay Surface Mining Equipment Index Sources: Deloitte – Mining capital projects: Are you ready for the next CapEx investment cycle?, The Parker Bay Company Page 9 www.austineng.com.au
Slide 10: FY19 Guidance
FY19 Guidance FY19 Normalised EBITDA of $25 million to $28 million Based on the current order book, committed work, and tender opportunities Around 66% of projected revenue relates to firm orders and other committed work. This is similar to last year, however client tender book and pipeline oppo
Slide 11: Safety and People
Safety and People FY18 Safety statistics People 25 2,500 (per million hours worked) 20 2,000 Frequency rate 15 1,500 10 1,000 5 500 - TRIFR LTIFR - 30-Jun-16 30-Jun-17 31-Dec-17 30-Jun-18 Headcount • Total Reportable Incident Frequency Rate (TRIFR) and • Headcount fell to 2,105 at 30 June 2018 from
Slide 12: Financial performance
Financial performance Normalised results FY18 Revenue and profitability ($'m) FY18 2H18 1H18 FY17 Var % Revenue 293.4 138.7 154.7 234.3 25% Revenue increased by 25.2% compared to FY17 Gross profit 73.4 36.1 37.3 71.1 3% − Strong growth in the Americas with revenue up 37.4% Gross margin 25.0% 26.0%
Slide 13: Diversified revenue
Diversified revenue Revenue by region - % of total FY18 FY17 7% 7% 40% Australia 45% Americas Asia 48% 53% Revenue by commodity - % of total FY18 FY17 10% 16% 5% 18% Iron Ore 31% Coal 4% Copper 28% 19% Gold 39% Other 30% Page 13 www.austineng.com.au
Slide 14: Diversified revenue
Diversified revenue Revenue by customer type - % of total FY18 FY17 Miners 4% 12% 8% 6% 6% Mining 8% contractors OEM's 74% Other 82% Revenue by product and service - % of total FY18 FY17 Bodies 6% 13% Buckets 8% 6% Maintenance 41% 45% and repairs Crane rental 32% 41% Other 4% 4% Page 14 www.austinen
Slide 15: FY18 by region – Australia
FY18 by region Australia Australia ($'m) FY18 2H18 1H18 FY17 Var % Brisbane Revenue 124.0 59.8 64.2 111.9 11% Perth EBITDA (normalised) 7.9 3.6 4.3 9.5 (17)% Mackay EBITDA margin 6.4% 6.0% 6.7% 8.5% (25)% Hunter Valley Operations Perth operations contributed the highest normalised EBITDA in the Gr
Slide 16: FY18 by region – Americas
FY18 by region Americas ($'m) FY18 2H18 1H18 FY17 Var % Americas Revenue 154.4 72.0 82.4 112.3 37% USA Colombia EBITDA (normalised) 11.0 5.6 5.4 1.7 ↑ Chile EBITDA margin 7.1% 7.8% 6.6% 1.5% ↑ Peru USA USA delivered the highest EBITDA contribution in the region in FY18, supported by an order for t
Slide 17: FY18 by region – Asia
FY18 by region Asia Asia ($'m) FY18 2H18 1H18 FY17 Var % Iron Ore Indonesia Coal Revenue 22.4 11.3 11.1 17.4 29% Copper EBITDA (normalised) 4.3 1.8 2.5 3.1 39% Gold EBITDA margin 19.2% 15.9% 22.5% 17.8% 8% Other Indonesia Results from Indonesia have continued to be strong in FY18 Reduction of EB
Slide 18: Austin's Competitive advantage
Austin’s Competitive advantage Market leading position Visibility over orders Large global producer of custom truck High visibility over orders for the next six bodies and buckets months Strategically located across four Recurring revenue from repairs and continents including Australia, Asia
Slide 19: Questions?
Questions? Page 19 www.austineng.com.au
Slide 20: AGM Formal business of the meeting
AGM Formal business of the meeting Page 20 www.austineng.com.au
Slide 21: Resolution – Re-election of Mr Jim Walker as Non-executive Director
Resolution 1 – Re-election of Mr Jim Walker as Non-executive Director To consider and, if thought fit, pass the following as an ordinary resolution: ‘To re-elect Mr Jim Walker, in accordance with Listing Rule 14.4, who retires with effect from the end of the Annual General Meeting and, being eligibl
Slide 22: Resolution – Election of Mr Sy van Dyk as Non-executive Director
Resolution 2 – Election of Mr Sy van Dyk as Non-executive Director To consider and, if thought fit, pass the following as an ordinary resolution: ‘That Mr Sy van Dyk, who retires after having been appointed as a Director of the Company on 19 February 2018, in accordance with rule 3.3 of the Company’
Slide 23: Resolution – Adoption of Remuneration Report
Resolution 3 – Adoption of Remuneration Report To consider and, if thought fit, pass the following as an ordinary resolution: ‘That the Remuneration Report for the year ended 30 June 2018 be and is hereby adopted’ Manner in which the security-holders directed proxy votes (as at proxy close): Votes f
Slide 24: Resolution – Approval of Performance Rights Plan
Resolution 4 – Approval of Performance Rights Plan To consider and, if thought fit, pass the following as an ordinary resolution: ‘That for the purposes of Listing Rule 7.2 Exception 9, section 260C(f) of the Corporations Act and for all other purposes, the Company’s Performance Rights Plan and any
Slide 25: Resolution – Approval for grant of performance rights to Mr Peter Forsyth
Resolution 5 – Approval for grant of performance rights to Mr Peter Forsyth, Managing Director To consider and, if thought fit, pass the following as an ordinary resolution: ‘That for the purposes of Listing Rule 10.14 and for all other purposes, approval be given for the grant of 2,145,923 Performa
Slide 26: Poll Procedures – Computershare
Poll Procedures – Computershare Page 26 www.austineng.com.au
Slide 27: Disclaimer
Disclaimer 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 has been pre
Slide 28: Austin Engineering Ltd
Austin Engineering Ltd Financial Year 2018 AGM Presentation 23 November 2018
Austin Engineering — Shareholder Meeting (November 2018) on 6ix