Slide 1: Austin Engineering Ltd FY23 Interim Financial Results
Austin Engineering Ltd FY23 Interim Financial Results 21 February 2023 www.austineng.com First HPT truck body delivered to RTIO on a Komatsu Truck
Slide 2: Agenda
Agenda • Interim Results Overview • About Austin • Who we are • Our 40-Year Journey • What we do • Where we operate • Our recent customers • Why we are different • Our markets • Financial Results • Global Strategy • Outlook and Guidance • Sustainability • Management Team P2 Austin Engineering Limite
Slide 3: Key financial highlights
Key financial highlights • Revenue up 43% to $114.1 million driven by ~50% average order book increase in the half. • EBITDA up 22% to $12.2 million in line with historical seasonal split. • NPAT $5.4 million up 3% impacted by tax assets in Australia and Chile. • Operating cashflow $13.3 million dri
Slide 4: H1 FY2023 Highlights
H1 FY2023 Highlights Revenue Order Book H1 EBITDA has risen to $12.2m driven by 43% increase in Revenue $114.1m Up 40.2% 12.2 14 Up 43% from $79.9m in PCP Compared to PCP 12 10 10 EBITDA* Operating Cashflow Impact of Austin 2.0 $12.2m $13.3m 6.3 8 $M Up 22% from $10m to PCP 5.4 6 4.7 3.3 4 Net Debt
Slide 5: Who we are
Who we are Austin supplies customised equipment to large global mining clients, mining contractors and original equipment manufacturers. Our innovative solutions maximise productivity and payload for our clients. 17 Locations across six continents, including partners. 40+ years 5 ~1,090 Engineering
Slide 6: Our 40-year journey
Our 40-year journey Brisbane, Australia Perth, Australia Casper, USA La Negra, Chile Batam, Indonesia Global Operation Worldwide Mackay, Australia Batam, Indonesia 1982 2004 2007 2009 2011 2017 2022 2022 2023 Facility expansion Austin is founded Acquired JEC Acquired Westech Acquired Conymet Commenc
Slide 7: About Austin
About Austin P7 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 8: What we do
What we do We are an industrial business producing world class customised wear products for the mining industry Customised for ore Configured to fit OEM type & nature excavators, dippers, Designed to improve face shovels, etc. digging characteristics Optimised for weight carrying, mining configurati
Slide 9: Five truck tray types for different applications
Five truck tray types for different applications ULTIMA HPT WESTECH JEC-LD JEC P9 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 10: Leading range of mining buckets for many applications
Leading range of mining buckets for many applications P 10 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 11: What we do
What we do Tyre Handler Water Tank Ore Chute* *Ore Chutes are designed by Nordic Minesteel Technologies and built under licence for Freeport mine in Indonesia. P 11 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 12: Where we operate
Where we operate The major mining jurisdictions of the world are our home markets, currently covering circa 65% of global truck tray market. Batam Serves Asia and provides low-cost manufacture for APAC Wyoming Serves Powder River coal and hard rock in Arizona, Nevada and the broader USA Chile Austra
Slide 13: Our recent customers
Our recent customers Customer map showing major orders over the last 6 months P 13 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 14: Why we are different
Why we are different • Austin is a world leader that has innovated products and the industry and has a strong brand in major markets. • Austin is an industrial business building standard product types with more reliable revenue and earnings outlook. Product • Austin has high IP levels building custo
Slide 15: Why we are different
Why we are different • Austin is strategically located in the key mining areas of the world that are both accessible and have high product demand. Global Diversified • Most mines in the world transport ore from pit to process by truck. This drives demand for bodies and buckets. Diversification Reven
Slide 16: Our markets
Our markets • 3rd party data suggests world market for 100 tonne+ trucks is circa 20,000 in total. Austin estimates over 3,000 replacement truck bodies and 500 buckets are required p.a. Global ~18% • Austin is the world brand leader but with a market share estimated at circa 18% indicating growth
Slide 17: Financial Results
Financial Results David Bonomini, Chief Financial Officer P 17 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 18: Financial Performance: (Continuing Operations)
Analysis of Financial Results Financial Performance: (Continuing Operations) 12 months ending (Normalised) 1H23* 1H22* VAR % • Revenue up 43% to $114.1 million and up 26% on a like for Revenue $M 114.1 79.9 43% like (LFL) basis, with Austin’s 2.0 business strategy driving EBITDA $M 12.2 10.0 22
Slide 19: Perth business performance
Analysis of Financial Results Perth business performance • Perth based business now on a strong performance improvement trend. Relative margin. Performance • Workshop has been dedicated to truck tray improvement trend (Perth trays). production. • Investment in a new plasma cutter to eliminate breakd
Slide 20: First half revenue and profit reflects major customers buying patterns
First half revenue and profit reflects major customers buying patterns EBITDA (Normalised) historically exhibits seasonality Revenue historically exhibits seasonality from H1 to from H1 to H2 averaging ~30% to 70% H2 of 40% to 60% 100% $250,000.00 90% 80% $200,000.00 70% 60% $150,000.00 50% $100,000
Slide 21: Operating cashflow was strong at $13.3 million
Analysis of Financial Results Operating cashflow was strong at $13.3 million • Strengthen cash by $9.6 million. • Cash from operating activities improved $18 million over past 12 months. • $3.4 million working capital inflow driven by increase customer advance payments. • $2.4 million capital invest
Slide 22: Balance Sheet and Other Items
Analysis of Financial Results Balance Sheet and Other Items Working Capital $M 1H23 FY22 Work-in-progress 25.2 20.5 Raw materials 35.7 19.5 • Zero Work in Progress driven by focus on terms of trade. Finished goods 2.3 0.4 Customer advance payments of $25.8 million, Total inventory 63.2 40.4 o
Slide 23: Balance Sheet and Other Items
Analysis of Financial Results Balance Sheet and Other Items Net Debt • Total Assets up by $46 million due to $M 1H23 FY22 • Cash up $9.6 million • Inventory bulk purchases Total Assets 260.0 214.1 • Mainetec assets acquired Total Shareholders Funds 111.1 107.3 • Net debt of $4.6 million has redu
Slide 24: Sector Analysis: Asia-Pacific
Analysis of Financial Results Asia-Pacific H1FY2023 H1FY2022 Sector Analysis Revenue (continuing operations) EBITDA $M $M 64.9 4.8 43.6 7.1 EBITDA margin % 7.5% 16.3% Austin Australia (Perth) Austin Indonesia Austin Mainetec • Major customer delayed orders early in half but capacity • Indonesian ope
Slide 25: Sector Analysis: North America
Analysis of Financial Results North America H1 FY2023 H1 FY2022 Sector Analysis Revenue (continuing operations) EBITDA $M $M 32.6 5.6 23.6 1.2 EBITDA margin % 17.1% 5.1% • The North American business has continued to improve strongly following significant improvements to competitiveness, production
Slide 26: Sector Analysis: South America
Analysis of Financial Results South America H1 FY2023 H1 FY2022 Sector Analysis Revenue (continuing operations) EBITDA $M $M 16.6 1.7 12.7 1.6 EBITDA margin % 10.5% 13.0% • Operational efficiency improvements implemented from 2021 have continued to ensure that Austin Chile remains profitable and has
Slide 27: Global Strategy
Global Strategy David Singleton, Chief Executive Officer and Managing Director P 27 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 28: Global strategy launched July 2021
Global strategy launched July 2021 Global strategy remains unchanged and is delivering major benefits to revenue and margins. Product Leadership 3 Manufacturing Leadership 2 1 Cost Leadership P 28 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 29: Global strategy is working and driving Pwin
Global strategy is working and driving Pwin Cost base reduction has helped drive average margins; 3 • Overheads have stabilised whilst revenue has risen 48% in H1. • Mainetec cost base reduced through support integration. • Further regional optimisation is planned particularly in ‘Back Office’. 2 1
Slide 30: Manufacturing strategy is increasingly driving benefits
Manufacturing strategy is increasingly driving benefits 3 Austin 2.0 ‘Hub & Spoke’ manufacturing strategy is now operating; • Advanced manufacturing equipment now fully operational in Indonesia. • Complete truck trays now being delivered into Australia to enhance local capacity. • Truck tray sub-ass
Slide 31: Investment in products has generated rapid returns
Investment in products has generated rapid returns HPT truck tray launched with over ~120 committed already; 3 • 2 major customers have switched to HPT lightweight trays. • Customer interest is high and substantial numbers of new HPT trays expected to be sold this year • Austin now has 5 different t
Slide 32: Mainetec integration delivering
Mainetec integration delivering Acquisition Integration now largely Cost based synergy benefits Market based synergy benefits complete • Marketing of dipper buckets and iTrip • Steel cost savings by leveraging Austin’s buying power started but systems in the Americas underway. accelerates from April
Slide 33: Outlook & Guidance
Outlook & Guidance P 33 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 34: FY23 Market Guidance
FY23 Market Guidance • Austin confirms its guidance for full year NPAT of $24 million plus Mainetec contribution • Mainetec contribution will be confirmed as trading experience increases through the year. • Austin has recorded a strong start to the second half with January 2023 revenue of $28 millio
Slide 35: Sustainability
Sustainability P 35 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 36: Safety
Sustainability Safety Safety statistics Safety Leadership LTIFR TRIFR • During H1 FY23 Austin maintained and continued to improve the 8 7.3 18 15.7 Critical Control Effectiveness Monitoring Program (CCEMP) rolled 16 7 12.9 12.8 out in FY21. 14 12.7 6 5 12 5 10 8.4 • The implementation of the employe
Slide 37: People
Sustainability People Headcount Growth in Communities • Of our total global workforce (including labour hire) of 1,090 at 30 December 2022, more than 80% of the workforce in each of our facilities globally is sourced from local communities. • Austin’s supply chain is heavily linked to local communit
Slide 38: Environment
Sustainability Environment Austin is committed to operating in a manner that acknowledges and proactively manages the issues most material to the long-term sustainability of its business, the environment, and the communities in which it operates. This commitment is driven by Austin’s Core Values, wh
Slide 39: Management Team
Management Team P 39 Austin Engineering Limited FY23 Interim Financial Results www.austineng.com
Slide 40: Board of Directors
Board of Directors JIM WALKER CHRIS INDERMAUR SY VAN DYK DAVID SINGLETON LINDA O’FARRELL NON-EXECUTIVE CHAIRMAN INDEPENDENT NON- INDEPENDENT NON-EXECUTIVE CHIEF EXECUTIVE OFFICER AND INDEPENDENT NON-EXECUTIVE EXECUTIVE DIRECTOR DIRECTOR MANAGING DIRECTOR DIRECTOR P 40 Austin Engineering Limited FY23
Slide 41: Executive Management
Executive Management DAVID SINGLETON VINCENT D’ROZARIO GRAHAM BACKHOUSE DAVID BONOMINI KIRSTEN CADLE KATINA NADEBAUM CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER CHIEF STRATEGY OFFICER CHIEF FINANCIAL OFFICER GENERAL COUNSEL COMPANY SECRETARY MANAGING DIRECTOR BRAD HIGGINS JOHNNY GREER CHRIS
Slide 42: Important Information
Important Information 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 h
Slide 43: design matters | austineng.com
design m atters | austineng.com www.austineng.com