Austin Engineering Limited · ASX:ANG
Austin Engineering — Investor Presentation (June 2019)
38 slides from Austin Engineering's investor presentation, Jun 26, 2019
Slide 1: Austin Engineering Limited Corporate Presentation
Austin Engineering Limited Corporate Presentation 26 June 2019 Page 1 www.austineng.com Corporate Presentation, 26 June 2019
Slide 2: Introduction to Austin
Introduction to Austin Austin is an engineering company, headquartered Austin designs and manufactures customised off- and listed in Australia with operations in Australia, highway truck bodies, buckets, water tanks, tyre Asia, North and South America. The company’s global handlers and other ancilla
Slide 3: Core Competencies
Core Competencies 1. Engineering Intellectual Property (IP) 3. Branding and Market Presence and Experience Austin’s key brands of Austin, JEC and Westech Austin invests in the extension of existing IP and are well known in the industry for both innovation creation of new IP through research and deve
Slide 4: Corporate Overview
Corporate Overview Capital Structure Share Price Share price (at 23 June 2019) 17.5 cps 26 Fully paid ordinary shares 578,833,756 24 Cents per share Market capitalisation $101.2m 22 Net debt (at 31 December 2018) $33.5m 20 Enterprise value $134.7m 18 NTA per share (at 31 December 2018) 16.5 cps 16 D
Slide 5: Financial Overview
Financial Overview Revenue ($m) Normalised EBITDA ($m) 275.2 20.4 214.9 146.9 12.4 11.8 11.5 131.8 128.3 11.0 122.1 8.9 83.0 (0.6) 1H17 2H17 FY17 1H18 2H18 FY18 1H19 1H17 2H17 FY17 1H18 2H18 FY18 1H19 Normalised Net Profit After Tax ($m) Normalised EBITDA Margin (%) 9% 9% 6.1 8% 4.5 7% 7% 4.1 3.9 2.
Slide 6: Strategic Priorities
Strategic Priorities 1 To be the market leader 2 Grow and diversify the 3 Maintain cost supplying customised truck business through identified competitiveness bodies and buckets globally opportunities unique to Austin • Business operations re-oriented to • Leverage Austin’s product intellectual • Be
Slide 7: Austin's Value Proposition
Austin’s Value Proposition 1. Market Leading 2. Attractive Position Fundamentals 7. Product Range 3. Engineering Focus 6. Diversified Revenue Base 4. Manufacturing Excellence 5. Improving Financial Position Page 7 www.austineng.com Corporate Presentation, 26 June 2019
Slide 8: 1. Market Leading Position
1. Market Leading Strategically located across 4 continents, Austin Position has the largest global footprint of manufacturing facilities of any dedicated off highway mining truck bodies and bucket providers Page 8 www.austineng.com Corporate Presentation, 26 June 2019
Slide 9: Austin operates together, as 'One Austin'
1. Market Leading Austin operates together, as ‘One Austin’ Position across three distinct markets The Americas Australia Asia • History of success with the strong • Innovation such as the new Austin • Batam is a world-class Westech product brand Ultima truck body and two piece manufacturing facilit
Slide 10: 2. Attractive Fundamentals
2. Attractive Mining capital expenditure has decreased substantially Fundamentals from 2013 levels. The chart1 shows the aggregated capital expenditure by BHP, Rio Tinto and Glencore. Austin predominantly services the maintenance spend, which is forecast to increase 50 USD Millions 45 40 35 30 25 20
Slide 11: Austin's Key Commodities by Region
2. Attractive During FY2018, 85% of Austin’s revenues were derived Fundamentals from Iron Ore, Copper and Coal. Group manufacturing operations are situated to take advantage of high producing mines of these key commodities Austin’s Key Commodities by Region Western Eastern South Australia Australia
Slide 12: Key commodities have performed well over three years
2. Attractive Austin’s key commodities have performed well over the Fundamentals last three years, global production in these commodities have also increased 3-6%1 from 2016-2018 Iron Ore, Coal and Copper Prices2 180 10,000 9,500 160 9,000 Iron Ore & Coal A$ per Tonne Copper A$ per Tonne 8,500 140 8
Slide 13: 3. Engineering Focus
3. Engineering Austin has engineering resources deployed Focus globally and, operating as ‘One Austin’, we can deliver 24/7 engineering support to our clients Key teams are located in Perth, Australia and Casper, Wyoming USA and are responsible for Austin’s key brands Perth-based John's Engineering
Slide 14: Austin's key market is off-highway truck bodies
3. Engineering Austin’s key market is off-highway Focus truck bodies. Below are some examples of leading products in the range Page 14 www.austineng.com Corporate Presentation, 26 June 2019
Slide 15: Latest engineering technology in design, testing and simulation
3. Engineering Austin uses the latest engineering Focus technology in the design, testing and simulation of its products CREO (ex Pro Engineer) 3D Design ANSYS FEA Analysis EDEM Load & Flow Simulation Page 15 www.austineng.com Corporate Presentation, 26 June 2019
Slide 16: 4. Manufacturing Excellence: workshops and equipment
4. Manufacturing Austin’s workshops are equipped with Excellence high quality equipment and tooling, including modern robotic systems and welding processes Gantry Robotic Welding Machine Large Capacity Workshops Plasma Cutting Machine Overhead cranes up to 50 Tonnes Page 16 www.austineng.com Corpora
Slide 17: Austin's people are the core of the business
4. Manufacturing Austin’s people are the core of the business, Excellence we employ welders and boilermakers, trained to the highest standards, to ensure our products are delivered to the highest quality and built to last Page 17 www.austineng.com Corporate Presentation, 26 June 2019
Slide 18: Net debt position has decreased
5. Improving Austin’s net debt position has decreased Financial markedly in recent years with Net Debt: Position Annualised Normalised EBITDA trending towards < 1 times Net Debt vs Normalised EBITDA $m 46.6 45.9 45.6 39.6 3.9 33.5 2.3 2.0 1.7 1H17 2H17 1H18 2H18 1H19 Net Debt Net debt : Last 12 Mont
Slide 19: 5. Improving Financial Position
5. Improving Austin has systematically reviewed non-performing Financial businesses, assets and contracts, restructuring group Position operations to deliver improved performance Assets Held for Sale Project Rationale at 31 December 2018 Updated Position Chile Crane Business was identified as non-co
Slide 20: 6. Diversified Revenue Base
6. Diversified Austin’s revenue base is not over-reliant on any Revenue Base one country, client, commodity or product/service. Our diversified revenue base enables us to perform in varying market conditions 1 Revenue by region - % of total 3 Revenue by customer type - % of total FY18 FY17 FY18 FY17
Slide 21: Austin Ultima Dump Body
7. Product Austin maintains an exceptional product range, Range and continues to innovate, providing its clients with the optimal solution specific to their needs Austin Ultima Dump Body Innovation in summary: • Design focus is maintained on safety, weight reduction, increased fatigue life and highe
Slide 22: Two Piece Excavator Bucket
7. Product Austin maintains an exceptional product range, Range and continues to innovate, providing its clients with the optimal solution specific to their needs Reusable Consumable Upper structure lower structure Two Piece Excavator Bucket Innovation in summary: • Designed with safety in mind, the
Slide 23: Stairway Access Water Tank
7. Product Austin maintains an exceptional product range, Range and continues to innovate, providing its clients with the optimal solution specific to their needs Stairway Access Water Tank Innovation in summary: • The World’s safest water tank, designed for safer access and operation • Unique inter
Slide 24: Summary
Summary Macro-Economic Environment Capital Management Remains Positive Austin’s commitment to balance sheet repair Commodity prices have performed well in recent years since 2017 has delivered a progressive reduction with a number of new mines planned to open in in debt. Consideration will be taken
Slide 25: Appendices
Appendices – Historical Financials – Manufacturing Sites Page 25 www.austineng.com Corporate Presentation, 26 June 2019
Slide 26: Historical Financials
Historical Financials 1H19 FY18 2H18 1H18 FY17 2H17 1H17 $m $m $m $m $m $m $m Profit and Loss (normalised, adjusted for continuing operations) Revenue 122.1 275.2 128.3 146.9 214.9 131.5 83.4 EBITDA 11.0 20.4 8.9 11.5 11.8 12.3 (0.5) EBITDA margin (%) 9% 7% 7% 8% 5% 9% (1%) Net Profit Before Tax 6.4
Slide 27: Australia
Australia Page 27 www.austineng.com Corporate Presentation, 26 June 2019
Slide 28: Austin Engineering Perth WA
Austin Engineering Perth WA Workshop Facility Size Main Products & Services 12,500m2 Heavy fabrication facility, manufacturing of custom bodies, buckets, water tanks, service modules, Hardstand Space tyre handlers, underground tubs, cable reelers, 5,000m2 stemming buckets, mining attachment products
Slide 29: Austin Engineering Mackay QLD
Austin Engineering Mackay QLD Workshop Facility Size Main Products & Services 3,000m2 The Mackay operation specialises in fabrication services for the Mackay region, structural repair and manufacture Hardstand Space of a wide range of mining equipment, including loader 2,309m2 and excavator buckets,
Slide 30: Austin Aust Bore Mackay QLD
Austin Aust Bore Mackay QLD Workshop and Office Facility Size 1,600m2 Hardstand Space 6,695m2 Equipment Main Products & Services The workshop houses a variety of heavy machining The Austin Aust Bore operation specialises in the equipment and auxiliary equipment to handle / manage repair, refurbishme
Slide 31: Indonesia
Indonesia Page 31 www.austineng.com Corporate Presentation, 26 June 2019
Slide 32: Austin Engineering Batam Indonesia
Austin Engineering Batam Indonesia Workshop Facility Size Main Products & Services 12,800m2 JEC and Westech trays, water tanks, tyre handlers and buckets. Hardstand Space 10,000m2 Specialist Products & Services General fabrication, structural steel, heavy plates, Equipment skids and modular structur
Slide 33: Americas
Americas Page 33 www.austineng.com Corporate Presentation, 26 June 2019
Slide 34: Austin Engineering Casper, Wyoming USA
Austin Engineering Casper, Wyoming USA Workshop Facility Size Main Products & Services 15,329m2 Engineering and fabrication of custom and OEM truck bodies, custom water tanks, Hardstand Space OEM dragline buckets, OEM dipper buckets, 190,200m2 Westech FEL buckets. Equipment Specialist Products & Ser
Slide 35: Austin Engineering La Negra & Calama, Chile
Austin Engineering La Negra & Calama, Chile Workshop Facility Size Main Products & Services 5,603m2 Westech and JEC designed customised mining components, truck bodies, water & fuel tanks, Hardstand Space service modules, excavator & face shovel buckets, 1,240m2 rope shovel dippers, tire handlers, c
Slide 36: Austin Engineering Arequipa Peru
Austin Engineering Arequipa Peru Workshop Facility Size Main Products & Services 2,975m2 Repairs and maintenance; dippers, buckets and ancillary equipment. Hardstand Space Final assembly for trays for mines in 2,646m2 South Peru. Equipment 60 tonne/30 tonne Gantry crane, 60 tonne mobile crane, compr
Slide 37: Austin Engineering Malambo Colombia
Austin Engineering Malambo Colombia Workshop Facility Size Main Products & Services 3,600m2 Westech and JEC designed customised mining components, including truck bodies, water tanks, Hardstand Space fuel modules, service modules, excavator buckets, 3,600m2 face shovel buckets, rope shovel dippers,
Slide 38: Important Information
Important Information This presentation has been prepared by Austin Engineering Limited The information in this presentation does not constitute financial product (ABN 60 078 480 136) (“Austin” or the “Company”). The information in this advice (nor investment, tax, accounting or legal advice). Inves
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