Slide 1: 1H17 Results Presentation
Austin Engineering Ltd For personal use only 1H17 Results Presentation 24 February 2017
Slide 2: Contents
For personal use only Contents 1. Summary pg 3 2. 1H17 Results pg 6 3. Capital Management pg 10 4. Outlook pg 13 2
Slide 3: Summary – Highlights
Summary – Highlights 1. Austin generated Sales Revenue of $91.1m and a break even Normalised EBITDA in 1H17, consistent with guidance provided in November 2016 For personal use only 2. Senior debt and short-term subordinated debt repaid 3. Raised $8m in new equity to support working capital for conf
Slide 4: Summary – Results
Summary – Results • Break even Normalised EBITDA consistent with market guidance • Revenues decreased for the period due to the timing of work and mix of performance across For personal use only the various business units Half on 1H16 1H17 (Continuing operations) Half $m $m % Change Revenue 96.6 91.
Slide 5: Summary – Normalisations
Summary – Normalisations Reported results higher than normalised results due to one-off expenses that were more than offset by one-off non-cash incomes on the adjustment to the onerous lease provision, reversal of impairment on the Colombian property and profits on the sale of plant and equipment Fo
Slide 6: 1HFY17 Results – Safety
For personal use only 1HFY17 Results – Safety 25 20 15 1H16 10 1H17 5 0 TRIFR No. of LTI's LTIFR • Total Austin employees across the group – 2,011 (Dec 15 – 1,885) • Incident reporting improved during the period • Reduced TRI’s compared to the corresponding period • 11 LTI’s recorded for the period
Slide 7: 1HFY17 Results – Segments
1HFY17 Results – Segments Half on 1H16 1H17 (Continuing operations) Half For personal use only $m $m % Change Revenue: Australia 50.8 42.1 (17.1%) Americas 44.1 46.2 4.7% Asia (Indonesia) 1.7 2.8 67.6% Normalised EBITDA*: Australia 1.2 0.5 (59.1%) Americas 1.6 0.1 (95.8%) Asia (Indonesia) - (0.6) n/
Slide 8: 1H17 Results – Operational Review
1H17 Results – Operational Review For personal use only Australia: Operations • Product development of lighter trays delivering a larger overall payload have generated high volumes of orders and inquiries in Australia • Perth operations consistent improvement with high workshop utilisation levels an
Slide 9: 1H17 Results – Operational Review
1H17 Results – Operational Review Asia: For personal use only • Indonesia had a subdued performance for the period with workshop utilisation low for the first quarter, improvements in the second quarter to meet 2H17 product deliveries • Indonesia is set for a full year positive EBITDA contribution a
Slide 10: Capital Management – Net Debt
Capital Management – Net Debt For personal use only 1H17 Net Nov-16 Share 1H17 Other Jun-16 drawings/ Dec-16 Placement movements* (repayments) $m $m $m $m $m Senior Syndicate Debt 6.0 - (6.0) - - LIM Bond 19.8 - - 0.1 19.9 LIM and Transfield Bridging Loan 6.6 - (6.6) - - Finance Leases 11.3 - (1.4)
Slide 11: Capital Management – Net Debt
Capital Management – Net Debt For personal use only • Net Debt reduced by c. $3m to c. $37m during the previous 6 month period • Increase in working capital to deliver orders in early 2H17 reduced cash flow during the period • Supported by inflows from capital raising and net inflows from capital ex
Slide 12: Capital Management – Increase in Working Capital
Capital Management – Increase in Working Capital For personal use only Jun-16 Dec-16 $m $m $ Change Receivables 29.4 32.0 2.6 Payables 36.5 42.2 (5.7) Inventories 15.8 21.3 5.5 Total 8.7 11.0 2.3 • Increase in all working capital measures reflecting increased workshop activity in December 2016 to de
Slide 13: Outlook – Overview
Outlook – Overview • Based on a c.72% order book, including committed work, Austin provides guidance For personal use only for the 2017 Financial Year of $11m-$15m Normalised EBITDA • 6 month forward order book, including committed work, increased 69% from the position as at the AGM in November 2016
Slide 14: Outlook – Order Book
Outlook – Order Book Global order book value higher than at the start of the financial year For personal use only • The remainder of the 2017 financial year is underpinned by confirmed orders and secure ‘run rate’ works against long term contracts / regular workflow • Led by Australia with significa
Slide 15: Outlook – Commodity and Market Environment
Outlook – Commodity and Market Environment Market conditions showing signs of improvement with increasing commodity For personal use only prices The Index tracks the approximate value of worldwide shipments of new mining equipment. Austin manufacture truck bodies and buckets for both new equipment a
Slide 16: Outlook – Engineered Products
Outlook – Engineered Products Austin’s value proposition has always been the delivery of outstanding For personal use only engineering solutions Introducing the JEC LD Truck Body Summary - The JEC LD truck body is a high performance dump truck body with unique features that enhance the efficiency of
Slide 17: Appendix
For personal use only Appendix
Slide 18: Austin's Principal Products
For personal use only Austin’s Principal Products Off-highway Buckets Water tanks Service modules dump truck bodies Ancillary Tyre handlers attachments
Slide 19: Austin Principal Services
For personal use only Austin Principal Services Engineering Specialised Painting and supported fabrication blasting Equipment repair and maintenance Specialised Engineering supported On-site machining and maintenance and shutdown services line boring
Slide 20: Austin Brands
Austin Brands The Austin Engineering brand encompasses design and manufacture of mining and For personal use only earthmoving equipment, along with the provision of support services, from three Australian operations (Perth, Hunter Valley, Mackay), an Indonesian operation and Peruvian operation. The