Austin Engineering Limited · ASX:ANG
Austin Engineering — Shareholder Meeting (October 2024)
45 slides from Austin Engineering's shareholder meeting presentation, October 2024
Slide 1: AGM Presentation
October 2024 – Austin Engineering Ltd AGM Presentation www.austineng.com
Slide 2: Format of Meeting
Format of Meeting 1. Chair’s Address 2. CEO & Managing Director’s Address 3. Formal Business - Financial Statements and Reports Discussions/Questions - Discussion of Resolutions and Voting - Questions 4. Closing Austin Engineering Limited - AGM Presentation www.austineng.com P2
Slide 3: Chair's Address
Chair’s Address Jim Walker austineng.com www.austineng.com
Slide 4: CEO & Managing Director Address
CEO & Managing Director Address David Singleton austineng.com www.austineng.com
Slide 5: FY24 Results Highlights - Strong annual revenue and margin growth
FY24 Results Highlights - Strong, annual revenue and margin growth REVENUE ORDER BOOK NET CASH $313.2m $187m $9.6m Up 21% from $258m Up 30% yoy Improved by $23.7m EBITDA1 OPERATING CASHFLOW2 NPAT1 $46.6m $36.6m $31.0m Up 49% from $31.3m Up $20.9m from $15.8m Up 71% from $18.1m • All comparisons abov
Slide 6: Our 40-year journey - Business delivering globally
Our 40-year journey - Business delivering globally Brisbane, Australia Perth, Australia Casper, USA La Negra, Chile Batam, Indonesia Global Operation Worldwide Mackay, Australia Batam and La Negra 1982 2004 2007 2009 2011 2017 2021 2022 2023 Austin is founded Acquired JEC Acquired Westech Acquired C
Slide 7: Austin 2.0 has delivered a 55% per annum increase in earnings
Austin 2.0 has delivered a 55% per annum increase in earnings from FY21 to FY25 (forecast) REVENUE EBIT 400 60 350 350 50 50 313 300 4yr CAGR 55% 258 40 37 250 $M $M 203 197 200 30 23 23 150 20 100 10 9 50 0 - FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Austin Engineering Limited - AGM Present
Slide 8: Order book growing at 44% CAGR
Order book - has been growing at 44% CAGR and should drive multi-year revenue high in FY25 Austin Order Book FY2021-2024 200 184 187 180 158 160 144 CAGR 44% P.A. 140 120 108 106 $M 100 81 80 63 60 40 20 0 H1 21 H2 21 H1 22 H2 22 H1 23 H2 23 H1 24 H2 24 CAGR is calculated year end FY21 to year end F
Slide 9: Dividends at a decade long high
Dividends - at a decade long high reflecting good cash generation as the business develops Dividends cents/share (per annum) 1.4 1.2 1.2 1 Investment in 0.8 Austin 2.0 and Mainetec 0.6 0.5 0.5 0.5 0.4 0.2 0 0 0 0 0 0 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Austin Engineering Limited - AG
Slide 10: Customers include many industry blue chips
Customers include many of the industry ‘blue chips’ Customer map showing major orders over the last 12 months. Austin Engineering Limited - AGM Presentation www.austineng.com P 10
Slide 11: Business Update
Business Update Austin Engineering Limited - AGM Presentation www.austineng.com P 11
Slide 12: Re-designing Austin from the inside out
We have been re-designing Austin from the inside out Manufacturing Data-driven Excellence Systems People Leveraging Development Scale Austin Engineering Limited - AGM Presentation www.austineng.com P 12
Slide 13: Manufacturing Excellence – development is accelerating
Manufacturing Excellence – development is accelerating as weUpdate Innovation see benefits delivered COMMON MANUFACTURING CAPACITY EXPANSION SYSTEMS GLOBALLY THROUGH EFFICIENCY UNIFYING TO A AUSTBUY MATERIAL SINGLE ERP SYSTEM PLANNING Austin Engineering Limited - AGM Presentation www.austineng.com P
Slide 14: Putting process and data at the heart of our approach
We are putting process and data at the heart of our approach Digital systems and processes are at the heart of the “Austin Way” Enquiry to PO Revenue Calculation MPS Demand Consolidate Purchasing Pipeline SRP www.austineng.com P 14
Slide 15: Solid progress on our targets from last year
We have made solid progress on our targets from last year Innovation Update Chassis rebuilds in Batam OEM sales are driving now in full scale tray deliveries up ~3.5 production times y-o-y in Chile Truck OEM Repairs Supply and Trays Mining India Buckets India trays have hit performance targets, Buck
Slide 16: Our OEM strategy is delivering company changing results
Our OEM strategy is delivering company changing results Austin Engineering Limited - AGM Presentation www.austineng.com P 16
Slide 17: Home Markets Cover ~65% of Global Truck Market
Home Markets Cover ~65% of Global Truck (>100 ton) Market Austin’s addressable ‘Home Markets’ represent ~65% of the world market of which Austin has a less than 18% share. Analysis indicates good opportunity to grow with clear market facing strategies. Total addressable home market truck bodies p.a.
Slide 18: Chile Facility, La Negra
Chile Facility, La Negra P 18 www.austineng.com P 18
Slide 19: USA & Chile – right place, right time for copper
USA & Chile – right place, right time for copper! Source: Wood Mackenzie: Q2 2024. Note: Probable projects are those that are not considered sufficiently imminent and advanced to include in the base case. Possible projects have more significant risks associated www.austineng.com P 19 with their deve
Slide 20: Close to the world's two largest copper regions
Austin is close to the world's two largest copper regions • Copper Production in South America 1. Chile (5,550,000 tons per annum.) Main South American Copper producers • World's largest copper producer • Responsible for ~28% of total global production 2. Peru (3,175,000 tons per annum). Colombia •
Slide 21: Current addressable market share is 14% but could rise
Current addressable market share is 14% but could rise significantly based on forecast Addressable market share (truck trays only) Main South American Copper producers Colombia Ecuador 322 Peru Bolivia Austin’s La Negra Facility 14% 16% Chile Total addressable home market truck bodies p.a. % Share o
Slide 22: Chile demand growth moving to record levels in FY25
Chile demand growth moving to record levels in FY25 16 Explanation of terms used on this page: Typical demand refers to FY25 demand high point the average truck trays produced per month across the years and 14 is an approximation only. The FY25 demand high point refers to growing production demand i
Slide 23: USA truck tray growth - addressable market over 400 trays
USA truck tray growth - total addressable market estimated at over 400 trays* required per annum *The total addressable market (TAM), as estimated by Austin based on available global data, and is an approximation only. Austin Engineering Limited - AGM Presentation www.austineng.com P 23
Slide 24: USA growth driven by multi commodity demand and replacement cycle
USA growth driven by multi commodity led demand and the replacement cycle for wear items 25 Oil sands Coal 20 Copper Gold Units /Month 15 12 10 10 10 7.8 5 0 FY21 FY22 FY23 FY24 FY25 (F) Units per month represent an average of truck trays, water tanks, and buckets produced each month, except for FY2
Slide 25: Mainetec bucket strategy is working
Mainetec bucket strategy is working making us a growing provider of dipper buckets Austin Engineering Limited - AGM Presentation www.austineng.com P 25
Slide 26: Sale of Austin-designed dipper to North America
Recent sale of an Austin-designed dipper to North America is a significant development milestone Austin Engineering Limited - AGM Presentation www.austineng.com P 26
Slide 27: Product diversity increased following Mainetec acquisition
Product diversity – bucket and other products has increased by 90% following the Mainetec acquisition 15% 17% Truck Bodies 17% FY22 FY24 Buckets and other products $203m 21% $313m 62% Repairs and Maintenance 68% Austin Engineering Limited - AGM Presentation www.austineng.com P 27
Slide 28: Outlook & Guidance
Outlook & Guidance P 28 Austin Engineering Limited - AGM Presentation www.austineng.com
Slide 29: FY25 guidance confirmed – continued strong growth
FY25 guidance confirmed – continued strong growth with new market opportunities ahead • FY25 revenue of circa ~$350m up ~12% from FY24 • Underlying FY25 EBIT of ~$50 million up ~30% from FY24 • Usual first half, second half seasonality especially in Outlook margins as we remodel to a higher revenue
Slide 30: Key business outlook – consolidate our gains
Key business outlook – focus is to consolidate our gains Chile expansion during FY25 USA multi commodity growth during FY25 Dipper sale into USA a new benchmark as we seek to further expand bucket sales Maintain focus on developing underlying business systems www.austineng.com P 30
Slide 31: Q & A
Po, Vy austin DESIGN MATTERS
Slide 32: Financial Report Discussion
Financial Report Discussion To receive and consider the Financial Statements and the reports of the Directors and the Auditor for the financial year ended 30 June 2024. Austin Engineering Limited - AGM Presentation www.austineng.com P 32
Slide 33: Resolution 1 – Adoption of Remuneration Report
Resolution 1 ADOPTION OF REMUNERATION REPORT To consider and, if thought fit, pass the following ordinary resolution under section 250R(2) of the Corporations Act: “That the Remuneration Report (which forms part of the Directors’ report for the year ended 30 June 2024) be adopted.” Note: The vote on
Slide 34: Resolution 1 continued
Resolution 1 continued ADOPTION OF REMUNERATION REPORT For: 331,808,140 Against: 30,579,950 Abstain: 1,298,475 At the Proxies’ Discretion: 784,818 Total Proxy Votes: 364,471,383 Austin Engineering Limited - AGM Presentation www.austineng.com P 34
Slide 35: Resolution 2 – Re-election of Chris Indermaur
Resolution 2 RE-ELECTION OF CHRIS INDERMAUR AS A NON-EXECUTIVE DIRECTOR To consider and, if thought fit, pass the following as an ordinary resolution: “That Mr Chris Indermaur, who retires with effect from the end of the Annual General meeting in accordance with rule 3.6 of the Company’s constitutio
Slide 36: Resolution 2 continued
Resolution 2 continued RE-ELECTION OF CHRIS INDREMAUR AS A NON-EXECUTIVE DIRECTOR For: 394,175,065 Against: 615,309 Abstain: 1,620,914 At the Proxies’ Discretion: 782,818 Total Proxy Votes: 397,194,106 Austin Engineering Limited - AGM Presentation www.austineng.com P 36
Slide 37: Resolution 3 – Securities under Performance Rights Plan
Resolution 3 APPROVAL TO ISSUE SECURITIES UNDER PERFORMANCE RIGHTS PLAN To consider and, if thought fit, pass the following as an ordinary resolution: "That for the purposes of Listing Rule 7.2 (exception 13) and for all other purposes, future issues of securities under the Performance Rights Plan,
Slide 38: Resolution 3 continued
Resolution 3 continued APPROVAL TO ISSUE SECURITIES UNDER PERFORMANCE RIGHTS PLAN For: 356,144,997 Against: 5,623,513 Abstain: 1,930,478 At the Proxies’ Discretion: 772,395 Total Proxy Votes: 364,471,383 Austin Engineering Limited - AGM Presentation www.austineng.com P 38
Slide 39: Resolution 4 – Securities under Option Plan
Resolution 4 APPROVAL TO ISSUE SECURITIES UNDER OPTION PLAN To consider and, if thought fit, pass the following as an ordinary resolution: " That for the purposes of Listing Rule 7.2 (exception 13) and for all other purposes, future issues of securities under the Option Plan, as described in the Exp
Slide 40: Resolution 4 continued
Resolution 4 continued APPROVAL TO ISSUE SECURITIES UNDER OPTION PLAN For: 350,716,811 Against: 11,035,995 Abstain: 1,935,759 At the Proxies’ Discretion: 782,818 Total Proxy Votes: 364,471,383 Austin Engineering Limited - AGM Presentation www.austineng.com P 40
Slide 41: Resolution 5 – Increase in Non-Executive Directors' remuneration
Resolution 5 INCREASE IN THE MAXIMUM AGGREGATE ANNUAL REMUNERATION OF NON- EXECUTIVE DIRECTORS To consider and, if thought fit, pass the following as an ordinary resolution: "That, for the purpose of ASX Listing Rule 10.17, rule 10.2 of the Company’s Constitution and for all other purposes, the maxi
Slide 42: Resolution 5 continued
Resolution 5 continued INCREASE IN THE MAXIMUM AGGREGATE ANNUAL REMUNERATION OF NON- EXECUTIVE DIRECTORS For: 344,378,893 Against: 17,000,220 Abstain: 2,288,432 At the Proxies’ Discretion: 803,838 Total Proxy Votes: 364,471,383 Austin Engineering Limited - AGM Presentation www.austineng.com P 42
Slide 43: Resolution 6 – Replacement of Constitution
Resolution 6 REPLACEMENT OF CONSTITUTION To consider and, if thought fit, pass the following as a special resolution: "That, for the purposes of section 136 of the Corporations Act and for all other purposes, the Company repeals its existing Constitution and adopts a new constitution in its place, i
Slide 44: Resolution 6 continued
Resolution 6 continued REPLACEMENT OF CONSTITUTION For: 392,203,049 Against: 1,496,242 Abstain: 2,711,997 At the Proxies’ Discretion: 782,818 Total Proxy Votes: 397,194,106 Austin Engineering Limited - AGM Presentation www.austineng.com P 44
Slide 45: 2024 Annual General Meeting – Meeting Closed
MEETING CLOSED 2024 Annual General Meeting 22 October 2024 austineng.com www.austineng.com
Austin Engineering — Shareholder Meeting (October 2024) on 6ix