Slide 1: 1H FY2021 Results Presentation
Austin Engineering Limited 1H FY2021 Results Presentation 25 February 2021
Slide 2: Agenda
▪ Highlights ▪ Analysis of Financial Results Agenda ▪ Overview by Region ▪ Safety and People ▪ Outlook P2 Austin Engineering Limited 1H21 Results Presentation | February 2021 www.austineng.com
Slide 3: Highlights
Highlights • 1H21 Normalised EBITDA of $6.3 million from continuing operations, a 32% increase from pcp Current period • 1H21 Underlying NPAT of $1.5 million from continuing operations earnings • 1H21 Operating cash outflow of $6.8 million due to changes in working capital, in particular in Asia- Pa
Slide 4: Analysis of Financial Results
Analysis of Financial Results Chief Financial Officer: Sam Cruickshank P4 Austin Engineering Limited 1H21 Results Presentation | February 2021 www.austineng.com
Slide 5: Financial Performance: Normalised (from continuing operations)
Analysis of Financial Results Financial Performance: Normalised (from continuing operations) 31 Dec 30 Jun 31 Dec Dec to Dec Six months ending 2020 2020 2019 % Change • Revenue is in line with pcp for the group overall with mixed Revenue $M 87.9 126.9 89.1 (1)% results for the regions: Gross profit
Slide 6: Financial Performance: Statutory (from continuing operations)
Analysis of Financial Results Financial Performance: Statutory (from continuing operations) 31 Dec 30 Jun 31 Dec Dec to Dec Six months ending 2020 2020 2019 % Change Revenue $M 87.9 126.9 89.1 (1)% Gross profit $M 24.7 34.5 22.3 11% Gross margin (%) % 28.1% 27.2% 25.0% 12% • Statutory tax expense fo
Slide 7: Cash Flow
Analysis of Financial Results Cash Flow Six months ending 31 Dec 30 Jun 31 Dec Historical cash flow from operating activities $M 2020 2020 2019 20 Cash flows from operating activities 15 NPAT 1.1 6.0 (0.8) Add: 10 • Depreciation and amortisation 3.5 3.6 4.3 5 • Impairments - 0.0 0.0 - • Movement in
Slide 8: Working Capital
Analysis of Financial Results Working Capital As at As at As at 31 Dec 30 Jun 31 Dec 2020 2020 2019 $m Working capital increased to $15.1 million $80.0 mainly due to a large decrease in trade payables. Working capital movements for $60.0 the group were: • $8.9 million increase in Asia-Pacific $40.0
Slide 9: Balance Sheet and Other Items
Analysis of Financial Results Balance Sheet and Other Items Increase in Net Debt to support working capital Interim Dividend determined of 0.2cps • Net debt increased by $12.6 million to $15.4 million mainly to support working • Interim Dividend held at 0.2cps, payable on 5 April 2021, Record date 1
Slide 10: Property Portfolio
Analysis of Financial Results Property Portfolio Austin owns several properties globally to conduct business. Three are currently marketed for sale in South America following recent business restructures in this region Property, Plant and Assets Held Carrying Values ($M) Equipment for Sale Property
Slide 11: Overview by Region
Overview by Region Managing Director: Peter Forsyth P 11 Austin Engineering Limited 1H21 Results Presentation | February 2021 www.austineng.com
Slide 12: 1H21 Asia-Pacific
Overview by Region 1H21 Asia-Pacific Asia-Pacific Six months ending 31 Dec 2020 30 Jun 2020 31 Dec 2019 Iron Ore Brisbane Perth Revenue $M 60.5 67.7 49.0 Coal Indonesia EBITDA (normalised) $M 9.5 9.4 4.6 Mackay Gold Hunter Valley EBITDA margin % 15.7% 13.9% 9.4% Perth • Perth delivered a strong earn
Slide 13: 2H21 Trading: Asia Pacific
Overview by Region 2H21 Trading: Asia Pacific Trading Landscape • The Perth business is expected to remain strong for the remainder of the financial year with orders and strong pipelines continuing into FY2022 • Indonesia has secured orders to support a strong second half of the year with a number o
Slide 14: 1H21 North America
Overview by Region 1H21 North America North America Six months ending 31 Dec 2020 30 Jun 2020 31 Dec 2019 Iron Ore USA Coal Revenue $M 12.0 37.7 28.8 EBITDA (normalised) $M (1.7) 7.2 (0.3) Gold Other EBITDA margin % (14.2%) 19.1% (1.0%) USA • Revenue for the period down significantly from pcp due to
Slide 15: 2H21 Trading: North America
Overview by Region 2H21 Trading: North America Trading Landscape • Orders received in January and February 2021 for delivery prior to 30 June 2021 exceeding the first half revenue level, a material earnings improvement expected • A new body design (Austin Premier) has re-engineered the popular Weste
Slide 16: 1H21 South America
Overview by Region 1H21 South America South Six months ending 31 Dec 2020 30 Jun 2020 31 Dec 2019 America Copper Revenue $M 15.5 21.5 11.3 Chile Other EBITDA (normalised) $M (1.4) 2.0 0.5 Peru Colombia EBITDA margin % (9.0%) 9.3% 4.4% Chile • Revenues were higher in Chile than pcp, however reduced f
Slide 17: 2H21 Trading: South America
Overview by Region 2H21 Trading: South America Trading Landscape • A number of large, long-term contract opportunities in pipeline; Austin is well positioned in these opportunities • A modest 2H21 is anticipated in this region with larger tenders expected to benefit FY2022 and beyond • The region re
Slide 18: Safety and People
Safety and People P 18 Austin Engineering Limited 1H21 Results Presentation | February 2021 www.austineng.com
Slide 19: Safety
Safety and People Safety Safety statistics Safety Leadership LTIFR TRIFR • Safety statistics are improving, and the severity of injuries has decreased due to 20.0 housekeeping and improved injury management practices 20.0 18.0 18.0 • COVID-19 protocols established in March 2020 have continued in all
Slide 20: People
Safety and People People Headcount Colombian Operations During the period, Austin made the tough decision to wind-up its operations in 2,000 Colombia. Following a strategic review after the mutual cancellation of a key site North America 1,800 repair and maintenance contract in May 2020, Austin dete
Slide 21: Outlook
Outlook P 21 Austin Engineering Limited 1H21 Results Presentation | February 2021 www.austineng.com
Slide 22: Market Update
Outlook Market Update Commodity Update Impact to Austin • Commodity prices are supportive of miners spending on capital equipment, in particular increasing oil prices appears to be transformative to the oil sands market in Canada that has been soft recently • Copper and Iron Ore prices are strong wh
Slide 23: Market Update
Outlook Market Update New Equipment Sales Impact to Austin • New equipment sales entering the market is reflective of miners looking to increase production, this is clearly positive for Austin due to more equipment in circulation • Our longer-term success is linked to new equipment sales as they ind
Slide 24: FY2021 Outlook
Outlook FY2021 Outlook Group Outlook: • Our outlook for the full financial year remains on track with guidance communicated in August 2020 and confirmed at the November 2020 AGM. As foreshadowed at the AGM, the balance of earnings will be weighted towards 2H2021. On an underlying basis we expect NPA
Slide 25: FY2021 Outlook
Outlook FY2021 Outlook Regional Outlook: • Asia-Pacific continues to perform well with further orders received since the November 2020 AGM supporting the balance of FY2021. Austin’s Perth and Indonesia facilities are in excess of 90% locked in for guidance targets for the remainder of the year with
Slide 26: 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