Austal Limited · ASX:ASB
Austal — Shareholder Meeting (October 2009)
21 slides from Austal's shareholder meeting presentation, Oct 23, 2009
Slide 1: Austal Limited Annual General Meeting
For personal use only Austal Limited Annual General Meeting October 23, 2009
Slide 2: Financial Results 2005 - 2009
Financial Results 2005 - 2009 (Excluding Abnormal Items) For personal use only Revenue ($M) P fit After Profit Aft Tax T ($M) 700 60 600 50 500 40 Normalised 400 30 300 20 200 100 10 Reported 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 • Global economic crisis impacted FY09 result – Delays
Slide 3: One-Off Write Downs' Impact in FY09
One-Off Write Downs’ Impact in FY09 For personal use only • Hawaii Superferry write down of sub-debt – $30M full year write off – US Maritime Administration took possession of vessels – Any sale of vessels above $135M could mean some return of capital to Austal • This investment 5 years ago had big
Slide 4: One-Off Write Downs' Impact in FY09 (Derivatives)
One-Off Write Downs’ Impact in FY09 For personal use only • Derivative D i i accounting i treatment – $15M full year, non-cash write-off – Hedging put in place for a multi-vessel multi vessel program – Required mark-to-market treatment of premium costs with no recognition of savings in foreign excha
Slide 5: Other Financial Key Indicators
Other Financial Key y Indicators For personal use only • Cash on hand of approximately $90M • Gearing at zero • EBIT margins for US military vessels expected to be 8 - 10% • EBIT margins for commercial vessels between 12 - 15% Annual General Meeting Slide 5
Slide 6: Vessels Completed in 2009
Vessels Completed in 2009 For personal use only • 2 x 88 metre vessels for Kingdom of Saudi Arabia • 2 x 69 metre vessels for Kingdom of Saudi Arabia • 1 X 65 metre vessel for Sultanate of Oman • 7 x 48 metre vessels for Cotai Strip (Macau) • 2 x 48 metre vessels for New Above: One of two 69m vehicl
Slide 7: US Infrastructure Expansion
US Infrastructure Expansion For personal use only • Phase One completed on time and on budget • Test module construction began in September • 35,000 sq metres under roof • Automated router cutters, cutters pipe-benders and plate benders • Capacity to produce 3, 100M+ vessels per year Annual General
Slide 8: Planned US Expansion
Planned US Expansion For personal use only Additi Additional l assembly bl bay b MMF Phase Two may be required subject Additional will be initiated subject to pace of JHSV awards office facilities to LCS outcome and LCS outcome planned this fiscal year Annual General Meeting Slide 8
Slide 9: Strategic Overview
For personal use only Strategic g Overview Investor Information Package Slide 9
Slide 10: Strategic Overview
Strategic g Overview For personal use only Strive to minimise order book “lumpiness”: • Multiple hull orders + + + o Patrol boats o US military contracts = greater efficiency and profitability • Passenger ferry orders • Service and Through-Life-Support contracts o Joint High Speed Vessel o Multi-yea
Slide 11: Strategic Overview: Maximise construction efficiency
Strategic g Overview For personal use only • Maximise construction efficiency – Waste Elimination Program • Yielding cycle time reductions in excess of 30% • Increasing throughput with no additional infrastructure requirements • Improved productivity means lower construction costs • Lower constructi
Slide 12: A Look Ahead
For personal use only A Look Ahead Investor Information Package Slide 12
Slide 13: LCS (USS Independence) Update
LCS 2 ((USS Independence)) Update For personal use only • Builders trials complete – attained max speed p of 45.8kts • Acceptance trials to begin in November • Expect to hand vessel over in December 2009 • LCS 2 will remain at Austal USA until early next calendar year for crew training and commissio
Slide 14: Littoral Combat Ship Program Update
Littoral Combat Ship Program Update For personal use only • Navy awarded LCS 4, 4 USS Coronado, Coronado in April 2009 • Ten modules are under or have completed construction • Full construction will begin next month • Bid submitted in July 2009 for up to 3 additional LCSs to be awarded in FY10 • How
Slide 15: Littoral Combat Ship Program Update
Littoral Combat Ship Program Update For personal use only • Opportunity exists to influence the RFP development between now and dN November b • Focus will be on: – Removal of consideration of who can build our design other than GD-Austal LCS 2 Austal – Selection criteria should include th through-li
Slide 16: Joint High Speed Vessel
Joint High g Speed Vessel For personal use only • JHSV S 1 will commence ffull within 4-6 weeks • $1.3M $1 3M test module was funded for Modular Manufacturing Facility construction in September • Long lead time materials have been ordered by Navy for vessels 2 and 3 • Expect 2 additional vessels to
Slide 17: Current Commercial Order Book
Current Commercial Order Book For personal use only • 1 X 113m 3 ferry y for Nordic Ferry ySServices • 1 X 107m ferry for Virtu Ferries • 4 X 41m water taxis for Trinidad & Tobago Annual General Meeting Slide 17
Slide 18: Current Defense Order Book
Current Defense Order Book For personal use only • 6 X 30m patrol boats for Trinidad & Tobago • 4 X 21m patrol boats for Maltese Coast Guard • 1 X 103m JHSV for US Navy • 2 X long lead-time materials for JHSV vessels 2 and 3 • 1 X 127 127m LCS #2 (USS IIndependence) d d ) • 1 X 127m LCS #4 (USS Coro
Slide 19: Growth Strategy continued
Growth Strategy gy continued Military Capability For personal use only • Australian Defence White Paper seeking 20 “multi-role vessels; • International market demand for defence capability • Intend to exploit US LCS and JHSV experience i and d apply l Australian commercial skills • Developing a new
Slide 20: Outlook
Outlook For personal use only • C Contracts on hand by this time next year expected to be valued at approximately $1.5B • Potential for up to $6M in further derivative write down in FY10 • Expect to have at least 6 US Navy vessels in the order book at Austal USA before this time next year • Manpower
Slide 21: Austal Ltd. Annual General Meeting
For personal use only AUSTAL LTD. LTD ANNUAL GENERAL MEETING