Austal Limited · ASX:ASB
Austal — H1 2011 Earnings Presentation
19 slides from Austal's earnings presentation, Feb 24, 2011
Slide 1: 2011 Half Year Results Investor Briefing Package
For personal use only 2011 Half Year Results Investor Briefing Package 25 February 2011
Slide 2: Agenda
Agenda For personal use only • Results Highlights and Key events • Balance sheet summary • Group Financial Summary o Australia operations o USA operations o Service • 2011 Investment Program • Work in hand • LCS block buy contract • JHSV Update • Strategy initiatives • Summary 2
Slide 3: Results highlights and Key events
Results highlights and Key events For personal use only AUD $M H1 2011 H1 2010 Change Revenue from operations 251.2 21.1 219.2 15% EBIT 20.7 4.7 21.9 (5%) Net profit after tax 8.514.1 cents 15.5 (9%) EPS 7.68 cents 8.46 cents (9%) NPAT adj. for abnormal items 14.8 15.5 (5%) Key events during the per
Slide 4: Balance sheet Review
Balance sheet Review For personal use only AUD $M H1 2011 H1 2010 Change Total Assets 575.6 648.1 (11%) Cash 23.7 32.2 (26%) Inventories 232.5 275.3 (16%) Property, plant & equipment 185.9 217.7 (15%) Total Liabilities 302.3 378.8 (20%) Loans/borrowings 106.7 125.9 (15%) Government grants 48.9 59.9
Slide 5: Australian operations (excl. Service)
Australian operations (excl. Service) For personal use only AUD $M H1 2011 H1 2010 Change Revenue 87.4 99.9 (13%) EBIT 7.5 12.7 (41%) EBIT % 9% 13% (4%) PBT 6.8 12.4 (45%) • Revenue reflects the continued softness of traditional commercial markets. Buyer confidence is returning reflected in good enq
Slide 6: Service operations
Service operations For personal use only AUD $M H1 2011 H1 2010 Change Revenue 7.5 21.1 20.8 (64%) EBIT 1.3 4.7 2.0 (35%) EBIT % 8.517% cents 10% 7% PBT 1.3 2.0 (35%) • Service business contracted over the prior comparative as ad-hoc income was not repeated. Specific attention is being directed to g
Slide 7: USA operations
USA operations For personal use only AUD $M H1 2011 H1 2010 Change Revenue 154.1 21.1 94.9 62% EBIT 15.0 4.7 7.6 97% EBIT % 8.510% cents 8% 2% PBT 14.4 7.6 89% • USA business has grown solidly over the prior period reflecting the maturing of the JHSV program • Margins are normalising at anticipated
Slide 8: 2011 Investment Program
2011 Investment Program For personal use only 2010 Aust. USA AUD $M Actual operations operations USA 2012 Plant & Equipment 12.3 1.6 6.6 2.0 Furniture & Equipment 1.7 0.9 1.6 3.0 Information Technology 1.9 0.6 2.4 Building improvements 23.0 0.4 3.6 New Office 7.5 4.5 New land & improvements 22.0 9.0
Slide 9: Austal USA Expansion
For personal use only Austal USA Expansion 9
Slide 10: Work in hand at $1.2B
Work in hand at $1.2B For personal use only • 1 x 112m vehicle ferry for Danske Færger A/S (Denmark) • 2 x 47m passenger ferries for L’Express des Illes (Guadeloupe) • 2 x 127m Littoral Combat Ship (LCS) for US Navy • 5 x 103m Joint High Speed Vessel (JHSV) for US DOD • 1 x 35m monohull for Mary D E
Slide 11: LCS vessel block-buy
LCS 10 vessel block-buy For personal use only • Austal awarded a 10 ship block-buy contract in December 2010, with an initial order for 1 vessel (LCS 5) at US$432.1M and options for nine additional vessels over 5 years. Average pricing, inclusive of support services, is US$378.6M • Subject to approp
Slide 12: LCS contract implementation
LCS contract implementation For personal use only Austal USA Projected Headcount 5,000 Recruiting 4,500 • Recruiting plan is on track. Current headcount is 4,000 3,500 1,800 and will grow by 800/yr for the next 3 years – 3,000 50% of the rate at which Austal USA recruited over the 2,500 2,000 last y
Slide 13: Joint High Speed Vessel update
Joint High Speed Vessel update For personal use only • JHSV 1 (Navy), 2 (Navy) and 3 (Army) are under construction with vessels 4 (Navy) and 5 (Army) due to commence within the next 6 months • Options remain for a further five vessels • Navy’s FY 12 budget proposal shows 13 vessels being procured be
Slide 14: United States Navy Order book potential
United States Navy Order book potential For personal use only Austal USA projected orderbook profile at January 2011 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17
Slide 15: Strategy initiatives
Strategy initiatives For personal use only USA operations • Foreign Military Sales • Service and maintenance of JHSV and LCS vessels • International marketing of JHSV and LCS vessels Australian operations • New vessel concepts (Windfarm, medium speed, LNG, MRV) • Technology transfer to produce vesse
Slide 16: Summary
Summary For personal use only • Half year result reflects the transition that Austal is undertaking. USA operations are now stabilising with the certainty of two long term procurement programs. Australian operations continues to develop new strategies for managing the effects of the strong Australia
Slide 17: Questions?
For personal use only Questions ? 17
Slide 18: LCS overview
LCS overview For personal use only (2) H-60 (Deck Strength (1) H-53) Med Cal Gun 18
Slide 19: Investor Relations contact
Investor Relations contact For personal use only Richard Simons, Chief Financial Officer Telephone: + 61 8 9410 1111 For further information www.austal.com Disclaimer This presentation and any oral presentation accompanying it has been prepared by Austal Limited (“Austal”). It should not be consider