Austal Limited · ASX:ASB
Austal — Macquarie Western Australia Forum 2015
24 slides from Austal's conference presentation, Oct 15, 2015
Slide 1: Macquarie Western Australia Forum
Macquarie Western Australia Forum For personal use only Andrew Bellamy, Chief Executive Officer 15 October 2015
Slide 2: Overview – about Austal
Overview – about Austal For personal use only Founded in 1988, publicly listed since 1998, and now an ASX-200 company, Austal is a leading defence prime contractor specialising in the design, construction and maintenance of high performance vessels for defence and commercial purposes with 250+ ships
Slide 3: Overview – corporate snapshot
Overview – corporate snapshot For personal use only Share price (2 years) Board and management $2.40 John Rothwell AO Non Executive Chairman $2.20 $2.00 David Singleton Independent Director $1.80 Giles Everist Independent Director $1.60 Jim McDowell Independent Director $1.40 Andrew Bellamy Chief Ex
Slide 4: Overview – shipbuilding programs
Overview – shipbuilding programs For personal use only Order book of $3.0 billion as at 30 September 2015 secures revenue through CY2020, including: o 11 Littoral Combat Ships for US Navy 10 funded, with 1 delivered, funding expected in FY2016 for eleventh vessel o 10 Expeditionary Fast Transports
Slide 5: Objectives for sustained growth
Objectives for sustained growth For personal use only Strengthen Ongoing Target operations and objectives opportunities balance sheet • Shipbuilding margin • Maintain cash • Invest in R&D to grow achieved generation to support intellectual property programs and dividends base • Successfully applied
Slide 6: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 6
Slide 7: Record revenue driving performance
Record revenue driving performance For personal use only Revenue (A$m) EBITDA (A$m) NPAT (A$m) FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 1,122.9 1,414.9 79.3 109.1 31.9 53.2 Record revenue, with 26.0% increase over FY2014 driven by growing work on major navy defence and patrol boat programs and re
Slide 8: Segment breakdown
Segment breakdown For personal use only ($m) Ships Systems Support Other1 Total Revenue 914.2 160.0 45.5 - 1,119.7 USA EBIT 59.6 2.0 4.3 (7.5) 58.4 EBIT Margin% 6.5 1.3 9.5 - 5.2 Revenue 171.2 - 40.6 - 211.8 Australia EBIT 26.3 - 5.7 (0.2) 31.8 EBIT Margin% 15.4 - 14.0 - 15.0 Revenue 29.3 - 9.4 - 38
Slide 9: Cash and debt
Cash and debt For personal use only Strong operating cash flow which was FY2015 FY2014 Cash flow (A$m) (A$m) Change enhanced by the sale of Hull 270 trimaran stock vessel Operating 110.4 41.6 68.8 Significant reduction in net debt Investing (21.8) 19.0 (40.8) Maintained low sustaining capital
Slide 10: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 10
Slide 11: 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 and additional 1 ship option Margin and schedule pressure on LCS 6, first in the block-buy contract. Austal implementing experience from LCS 6 to incrementally grow margin on s
Slide 12: US Navy – Expeditionary Fast Transport
US Navy – Expeditionary Fast Transport For personal use only Formerly Joint High Speed Vessel (JHSV), renamed by US Navy to Expeditionary Fast Transport (EPF) 10 ship award to Austal valued at US$1.6 billion (fully funded), securing work through to CY2017 Program progressing well – matured int
Slide 13: Austal strongly positioned in US
Austal strongly positioned in US For personal use only Winning service contracts on Austal-built vessels have US Foreign Policy remains LCS and investing in support continued to be funded and focused on Asia-Pacific business to best position programs are maturing well defence strategy Austal for add
Slide 14: Australia – Cape Class Patrol Boats
Australia – Cape Class Patrol Boats For personal use only $330 million contract for the design, construction and through-life support of 8 Cape Class Patrol Boats for the Australian Border Force (formerly Australian Customs and Border Protection Service) Program matured significantly, delivering
Slide 15: 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 for the Royal Navy of Oman Construction is progressing well at Henderson shipyard o Completion of keel l
Slide 16: Australian defence shipbuilding
Australian defence shipbuilding For personal use only The Federal Government's plan for a strong and sustainable naval shipbuilding industry was announced 4 August 2015 Initiative Impact on Austal The Government will invest over A large, long-term order book of work available to naval shipbuilders
Slide 17: Australian defence shipbuilding
Australian defence shipbuilding For personal use only Initiative Impact on Austal Bringing forward the Future Frigate Variant of Austal’s LCS a potential platform for future frigate. programme to replace the ANZAC (Upgunned LCS soon to be classed as a frigate by US Navy) class frigates from 2023 to
Slide 18: Philippines
Philippines For personal use only Delivered two 45 metre high speed catamaran ferries to Abu Dhabi National Oil Company in August 2015 under a $30 million design and construct contract Completed customisation of Hull 270 and delivered wind farm vessel to Turbine Transfers Commenced constructio
Slide 19: Systems and Support
Systems and Support For personal use only Austal is steadily adding experience and capability to deliver a growing portfolio of Naval sustainment contracts US expanding activity beyond own vessels: o Prime contractor for Post Shakedown Availability (PSA) and other post delivery test and trial pr
Slide 20: Strategy and Outlook
Strategy and Outlook For personal use only SHIPS SYSTEMS SUPPORT 20
Slide 21: Strategy
Strategy For personal use only Sustain the Strengthen the Diversify the Scale the business business business business • Maintain current • Improve margins • Grow annuity-style • Position Austal for annual revenue in by driving revenue by building future Navy medium to long- efficiencies / on existin
Slide 22: Pipeline for vessel programs
Pipeline for vessel programs For personal use only Pursuing opportunities to deliver on strategy by growing Austal’s order book and securing additional long-term revenue Target markets Vessels • US: strong potential to extend existing • Future frigate evolved from modified LCS and EPF programs Lit
Slide 23: Outlook
Outlook For personal use only Margin improvement at US Best position Austal for operations as lessons learnt Good opportunity for award Pacific Patrol Boat from LCS 6 are applied – of additional LCS and EPF replacement, Future Frigate, greatest effect to be on in addition to existing block and OPV,
Slide 24: 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