Austin Engineering Limited · ASX:ANG

Austin Engineering — H1 2018 Earnings Presentation

24 slides from Austin Engineering's earnings presentation, Feb 26, 2018

  1. Slide 1: 1H18 Results Presentation

    Austin Engineering Ltd 1H18 Results Presentation For personal use only 26 February 2018

  2. Slide 2: Contents

    Contents For personal use only Page 1 Summary 3 2 1H18 results 5 3 Strategy and safety 14 4 Outlook 17 5 Appendices: Industry conditions, Austin strengths, operations, 19 products and services Page 2 www.austineng.com.au

  3. Slide 3: 1. Summary

    For personal use only 1. Summary

  4. Slide 4: Summary

    Summary For personal use only Improving industry  Improved commodity markets have contributed to increased industry activity. Client conditions ✔ investment in capital equipment has continued to increase.  Product innovation as a result of Austin’s engineering and research and Product innovation ✔

  5. Slide 5: 2. 1H18 results

    For personal use only 2. 1H18 results

  6. Slide 6: Financial performance (normalised)

    Financial performance Normalised results (#039;m) 1H18 2H17 1H17 FY17 Revenue and profitability Revenue 154.7 143.3 91.0 For personal use only Trading: Growth 7.9% 57.5%  Revenue increased by 7.9% in comparison to the previous Gross profit 37.3 43.6 27.5 six months (2H17). Significant growth has been

  7. Slide 7: Financial performance (statutory)

    Financial performance Statutory results (#039;m) 1H18 2H17 1H17 FY17 Statutory results Revenue 154.6 143.3 91.0 For personal use only One-off costs: Growth 7.9% 57.6%  One-off costs are predominantly staff restructuring costs in Gross profit 37.3 43.6 27.7 South America, together with legal and consul

  8. Slide 8: Diversified revenue

    Diversified revenue 1 Revenue by region - % of total 3 Revenue by customer type - % of total For personal use only 2 Revenue by commodity - % of total 4 Revenue by product and service - % of total Page 8 www.austineng.com.au

  9. Slide 9: Working capital

    Working capital 1H18 Working capital ($’m) For personal use only 30 Jun 2017 31 Dec 2017 Austin continues to focus on working capital management. Net working capital has increased by $4.0 million, as a result of:  Receivables have increased in line with revenue  Group inventory decreased as a resu

  10. Slide 10: Cash flow and net debt

    Cash flow and net debt Cash flow (#039;m) 1H18 2H17 1H17 Net debt ($’m) 31 Dec 2017 30 June 2017 Senior debt (term / LIM) 12.5 20.1 For personal use only Cash flows from operating activities Australian working capital 12.0 7.3 NPAT 4.0 (21.9) (5.7) USA working capital 7.2 - Add: depreciation and amorti

  11. Slide 11: 1H18 by region: Australia

    1H18 by region Australia (#039;m) 1H18 2H17 1H17 Australia For personal use only Brisbane Revenue 61.1 62.5 42.1 Perth Mackay EBITDA (normalised) 4.3 9.0 0.5 Hunter Valley EBITDA margin 7.0% 14.4% 1.2% Operations  Perth operations delivered the majority of Australia earnings in 1H18. Perth’s earnings

  12. Slide 12: 1H18 by region: Americas

    1H18 by region Americas (#039;m) 1H18 2H17 1H17 Americas For personal use only USA Revenue 82.4 66.1 46.2 Colombia Chile EBITDA (normalised) 5.4 3.0 0.1 Peru EBITDA margin 6.6% 4.5% 0.2% USA  USA delivered its highest six month period for revenue since joining the Austin Group. This included the manuf

  13. Slide 13: 1H18 by region: Asia

    1H18 by region Asia Asia (#039;m) 1H18 2H17 1H17 For personal use only Indonesia Revenue 11.1 14.6 2.8 EBITDA (normalised) 2.5 2.3 (0.6) EBITDA margin 22.5% 15.8% (21.4%) Operations  The Indonesia facility remained at a high level of utilisation in producing fabricated products into the Australasian m

  14. Slide 14: 3. Strategy and safety

    For personal use only 3. Strategy and safety

  15. Slide 15: Strategy

    Strategy Group Strategy Actions during 1H18 For personal use only To be the leading supplier of truck bodies and buckets globally  Focus on re-orienting the business to provide clients with engineering solutions  Bolstered Australian engineering team with additional combined with high quality and

  16. Slide 16: Safety

    Safety 1H18 Safety statistics Summary For personal use only Safety statistics and initiatives 25  Headcount was 2,162 at 31 December 2017. Headcount includes both permanent and flexible staff. 20  Total Reportable Incident Frequency Rate (TRIFR) and Lost 15 Time Injury Frequency Rate (LTIFR) (both

  17. Slide 17: 4. Outlook

    For personal use only 4. Outlook

  18. Slide 18: Outlook

    Outlook 2H18 Revenue pipeline (%) 2H18 Normalised EBITDA outlook ($’m) For personal use only 120% 14 100% 12 80% 10 60% 8 40% 6 20% 4 0% 2 1H18 Guidance 1H18 Actual 2H18 Guidance 0 Committed work Other forecast revenue Actual 1H18 Guidance 1H18 Actual 2H18 Guidance  Guidance (August 2017) included

  19. Slide 19: 5. Appendix

    For personal use only 5. Appendix: - Industry conditions - Strengths - Operations - Products and services

  20. Slide 20: Industry conditions

    For personal use only - 100 120 20 40 60 80 - 2,000 3,000 4,000 5,000 6,000 7,000 8,000 1,000 Page 20 Jan-16 Jan-16 Feb-16 Feb-16 Source: Index Mundi Mar-16 Mar-16 Apr-16 Apr-16 May-16 May-16 Jun-16 Jun-16 Jul-16 3 Coal (USD$/mt) Jul-16 Aug-16 Aug-16 1 Copper (USD$/mt) Sep-16 Sep-16 Oct-16 Oct-16 No

  21. Slide 21: Strengths

    Strengths For personal use only Market leading position Visibility over orders  Large global producer of custom truck  High visibility over orders for the next six bodies and buckets. months.  Strategically located across four  Recurring revenue from repairs and continents including Australia, A

  22. Slide 22: Operations

    Operations  Located in the east and west coast, providing an array of manufacturing, repair and support services. For personal use only  Perth is the largest workshop in Australia. Australia  Mackay and Hunter Valley are focussed on body/bucket repairs and maintenance. Brisbane Perth  Austin Sit

  23. Slide 23: Products and services

    Products and services Austin Engineering For personal use only Products Services  Leading designer and manufacturer of customised  A complete service provider, offering on and off-site dump truck bodies, buckets and ancillary products repair and maintenance and heavy equipment lifting to used in t

  24. Slide 24: Disclaimer

    Disclaimer 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 has been pre

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