Austal Limited · ASX:ASB

Austal — Shareholder Meeting (September 2003)

21 slides from Austal's shareholder meeting presentation, Sep 20, 2003

1. Slide 1: Annual Results Discussion

   Annual Results Discussion Year ended 30 June 2003 Mr Bob McKinnon Managing Director At 20 September 2003

2. Slide 2: The Austal Group

   THE AUSTAL GROUP ƒ Austal Limited is an integrated shipbuilder based in Western Australia ƒ Operates from three construction yards in Henderson, WA and one in Mobile, Alabama in the USA ƒ Four international brands: Austal Ships Image Marine Oceanfast Austal USA ƒ Diverse product range 2

3. Slide 3: Group Brands and Products

   GROUP BRANDS AND PRODUCTS AUSTAL LIMITED Image Marine Oceanfast Austal Ships Austal USA 30% Bender Shipbuilding USA Vessels < 50 M Luxury Vessels to 100+ M US Domestic Passenger Motor Yachts Market Vehicle Ferries Ferries Full Austal Passenger Ferries Live-aboard Shipbuilding Vessels Defence Range (

4. Slide 4: Strategic Focus

   STRATEGIC FOCUS ƒ Building shareholder value by targeting profitable markets and building stable long-term revenue streams ƒ Pursuing growth via product diversification and new market identification to reduce cyclical risk ƒ Maintaining internal focus on production efficiency and cost reduction ƒ Ad

5. Slide 5: Vessel Deliveries

   VESSEL DELIVERIES 25 20 No. of vessels 15 10 5 0 1998 1999 2000 2001 2002 *2003 *2004 Pax Ferries Car Ferries Live-aboards Cruise Motor Yachts Patrol/Crew Boats * Based on current order book 5

6. Slide 6: Financial Summary

   FINANCIAL SUMMARY Year ended 30 June (A$m) 2003 2002 Operating Revenue 307.7 343.6 EBITDA (34.8) 37.9 EBIT (39.4) 33.5 Operating profit/loss before tax (36.7) 35.1 Operating profit/loss after tax (24.2) 29.3 Net profit/loss after tax and OEI (18.7) 30.4 EBIT/ Sales (%) (12.8) 10.0 EPS (cents/share)

7. Slide 7: Revenue History

   REVENUE HISTORY A$ million 50 150 250 350 450 1998 1999 2000 2001 2002 2003 7

8. Slide 8: Cash Assets

   CASH ASSETS Estimated cash position ($m) 2003 2004 30 June 31 Dec 30 June 31 Dec Cash at Bank 30.0 35.4 40.0 29.9 Construction Finance (2.6) (63.9) (51.7) (22.6) NET CASH 27.4 (28.5) (11.7) 7.3 8

9. Slide 9: Operations Summary

   OPERATIONS SUMMARY 9

10. Slide 10: Austal Ships and Image Marine

    Austal Ships and Image Marine ƒ Core business - satisfactory performance ƒ Vessels under construction/contract AUSTAL SHIPS - 15 vessels - 50 metre vehicle-passenger catamaran - 56 metre vehicle-passenger catamaran - 66 metre vehicle-passenger catamaran - 86 metre vehicle-passenger catamaran - 126 m

11. Slide 11: Oceanfast

    Oceanfast ƒ Losses incurred $18.0 million ƒ Operational changes made to improve performance - Standardisation of contract specifications - Apply more efficient production practices - Structural changes to project management to better suit demands of current and future projects - Workforce experience

12. Slide 12: Austal USA

    Austal USA ƒ Losses incurred $12.9 million ƒ Investment to develop operational capability - Building workforce experience/skill - Increased knowledge of regulatory requirements for U.S. built vessels ƒ Vessels under construction - 58 metre vehicle-passenger ferry 12

13. Slide 13: Future Outlook

    FUTURE OUTLOOK 13

14. Slide 14: Outlook – Commercial and Defence

    Outlook – Commercial and Defence Image Marine ƒ Continued specialisation in core products Austal Ships ƒ Consistent revenue and profit performance ƒ Continued product diversification in addition to ferries: - cruise - defence - patrol boats (e.g. RAN patrol boats) 14

15. Slide 15: Royal Australian Navy Contract

    Royal Australian Navy Contract ƒ 12 x 56 metre monohull patrol boats ƒ Austal partnered with Defence Maritime Services ƒ August 2003 - nominated preferred tenderer ƒ Negotiations ongoing ƒ Contract signing expected late 2003 ƒ Delivery timetable 42 months 15

16. Slide 16: Outlook – Luxury Motor Yachts

    Outlook – Luxury Motor Yachts Oceanfast ƒ Increased recognition of benchmark quality product ƒ Stronger brand awareness among world’s premier motor yacht builders ƒ Skilled workforce available ƒ Cost/productivity focus to remain 16

17. Slide 17: Outlook – U.S. Commercial and Defence

    Outlook – U.S. Commercial and Defence Austal USA ƒ Existing orders significant step in US yard becoming a major supplier of aluminium vessels to the US commercial market ƒ Continue facilities and workforce development to participate in future major US military projects Littoral Combat Ship (LCS) The

18. Slide 18: Outlook – Littoral Combat Ship

    Outlook Littoral Combat Ship ƒ Austal and General Dynamics in Teaming Agreement ƒ Awarded 1 of 3 contracts to develop preliminary vessel design. Contract value US $10m ƒ The Navy to select 2 builders to build 2 prototype vessels 1st vessel build early 2005 (build time 24 months) 2nd vessel build ear

19. Slide 19: US Army Theatre Support Vessel

    US Army Theatre Support Vessel ƒ Tender released Oct 2003, submission date in Jan/Feb 2004 ƒ One builder selected by April 2004 ƒ First vessel start production 2004 ƒ 7 vessels built over unspecified time frame (estimated 4 - 5 years) ƒ Preliminary specifications released mid March 2003 19

20. Slide 20: Outlook

    Outlook ƒ Group’s financial position remains strong ƒ Core commercial business profitable, enquiries received across product range ƒ Approximately $350m orders on hand for construction 2004 and 2005 ƒ Military requirements becoming clearer. Provide sound opportunities for multi-hulled high-speed ves

21. Slide 21: Austal Limited

    AUSTAL LIMITED AUSTAL SHIPS IMAGE IMAGE MARINE MARINE AUSTAL AUSTAL USA USA OCEANFAST OCEANFAST

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