Austin Engineering Limited · ASX:ANG
Austin Engineering — Investor Presentation (February 2022)
21 slides from Austin Engineering's investor presentation, Feb 9, 2022
Slide 1: Investor Presentation
Investor Presentation 9th February, 2022 www.austineng.com
Slide 2: Who We Are
Who We Are Austin supplies customised equipment to large global mining clients, mining contractors and original equipment manufacturers. Our innovative solutions maximise productivity and profits for our clients. 11 Locations across six continents, including partners. $203.1M $135.3M $181M Revenue F
Slide 3: Our 40-year journey
Our 40-year journey Brisbane, Australia Perth, Australia Casper, USA La Negra, Chile Batam, Indonesia Global Operation Worldwide 1982 2004 2007 2009 2011 2017 2021 Austin is founded Acquired JEC Acquired Westech Acquired Conymet Commenced operations Austin is rebranded Austin 2.0 initiated 15.0% 15.
Slide 4: What we do
What we do We are an industrial business producing world class customised wear products for the mining industry Customised for ore Configured to fit OEM type & nature excavators, dippers, Design to improve face shovels, etc. digging characteristics Optimised for weight carrying, mining configuration
Slide 5: What we do
What we do Tyre Handler Water Tank Ore Chute 5 Austin Engineering Limited H1 FY2022 Results Presentation | February 2022 www.austineng.com
Slide 6: Where we operate
Where we operate The major mining jurisdictions of the world are our home markets, currently covering circa 65% of global truck tray market. Ft Mc Murray Serves Western Canadian Oil Sands market supported by Wyoming Batam Serves Asia and provides low-cost manufacture for APAC Wyoming Serves Powder R
Slide 7: Why we are different
Why we are different • Austin is an industrial business building standard product types with more reliable revenue and earnings outlook. • Products are made to order, fast turnover consumables critical to most types of mining worldwide. Average truck Product Focused 85% body turnover is 3-8 years de
Slide 8: Why we are different
Why we are different • Austin is strategically located in the key mining areas of the world that are both accessible and have high demand. Global Diversified • Most mines in the world transport ore from pit to process by truck. This drives demand for bodies and buckets. Diversification Revenue throu
Slide 9: What are our markets?
What are our markets? • 3rd party data suggests world market for 100 ton+ trucks is circa 20,000 in total. Austin estimates over 3,000 replacement truck bodies and 500 buckets are required p.a. Global ~18% • Austin is the world brand leader but with a market share estimated at circa 18% indicating g
Slide 10: H1 FY2022 Highlights
H1 FY2022 Highlights Revenue Net debt $80.1m $19.7m H1 EBITDA has risen to $11.5m based on cost efficiencies 14 Down 9% from $87.9m in PCP Excl. $15.8m of lease liabilities 11.5 12 Impact of Austin 2.0 10 EBITDA* Dividends $11.5m $TBD 6.3 8 $M Up 95% from $5.9m in PCP H1 2022 To be declared. 5.4 6 4
Slide 11: Highlights
Highlights • Total revenue from continuing operations of $80.1 million versus $87.9 million in prior corresponding period. Reduction primarily due to closure of unprofitable businesses. • EBITDA from continuing operations of minimum $11.5 million vs $5.9 million in pcp (statutory) exceeding initial
Slide 12: Global Strategy
Global Strategy David Singleton, Chief Executive Officer and Managing Director P 12 Austin Engineering Limited H1 FY2022 Results Presentation | February 2022 www.austineng.com
Slide 13: Market Opportunity
Market Opportunity Global Strategy Launched in July 2021 To be a technology-led global leader in mining product manufacture Phase 3 (FY 2023/4) Technology and Innovation • Launching new truck tray in Q3 Phase 2 (FY 2023 impact) • Launching new High Performance bucket designs in Q3 Manufacturing Enha
Slide 14: Global Mining Truck Tray Market Opportunity
Global Mining Truck Tray Market Opportunity 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. North America Canada 413 Alberta Asia 18% 19% 344 15% 1% Indo
Slide 15: Global Mining Truck Tray Market Opportunity
Global Mining Truck Tray Market Opportunity Austin uses small, highly efficient production hubs to service the world using local partners for market access. Our Indonesian Our USA business business supports hub is supported by markets in Australia, spoke centres in Africa and central Canada & Mexico
Slide 16: Australian Mining Truck Tray Market Opportunity
Australian Mining Truck Tray Market Opportunity Australia is the world’s biggest market for 100 tonne + trucks and Austin’s market share is 23%. Austin has completed a significant re-design of its product offering and service delivery aimed at increasing market share. Queensland 172 29% 10% Western
Slide 17: Austin is launching two new product types in 2022
Austin is launching two new product types in 2022 Austin’s investment in R&D has led to the impeding launch of 2 new product ranges optimised for the Australian market. Prelaunch sales have demonstrated market interest and demand. Next Gen Truck Body High Performance Buckets Series P 17 Austin Engin
Slide 18: Outlook
Outlook P 18 Austin Engineering Limited H1 FY2022 Results Presentation | February 2022 www.austineng.com
Slide 19: Outlook
Outlook Outlook Short term Medium term Guidance • Cost base optimisation largely • $6.5 million investment in advanced • Austin has beaten initial H1 guidance complete and has driven EBITDA to a manufacturing will reduce costs from by ~15% new high of 14.3% FY 2023 onwards in Asia Pacific • Full yea
Slide 20: 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
Slide 21: At Austin "Design matters"
At Austin “Design matters“ design matters | austineng.com www.austineng.com
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