Slide 1: Annual General Meeting 2008
For personal use only ANNUAL GENERAL MEETING 2008 Mr Bob Browning Managing Director & CEO
Slide 2: Financial Results
Financial Results For personal use only 2007 2008 Change Revenue 543.6 626.1 15% EBIT 58.5 52.6 -10% EBIT % 10.8% 8.4% Profit before tax 63.7 70.8 11% Tax Expense -17.9 -18.5 Net Profit 45.8 52.3 14% Basic EPS (cents) 24.4 28.3 16% Dividend per share (cents) 12.0 13.0 8% (a) $ millions unless stated
Slide 3: 2008 Overview
2008 Overview For personal use only Drivers of Financial Results: • Australian revenues increased 21% generated by production efficiencies from modular construction techniques and additional capacity from Tasmanian yard • US revenues impacted by cancellation of LCS 4 • Vessel margins reduced as a re
Slide 4: 2008 Overview: Non-Financial Highlights
2008 Overview For personal use only Non-Financial Highlights: • Strong demand for ferries from the Hong Kong region. • Defence sales business growth continued with patrol boat orders. • Price submitted to US Navy for 3 LCS vessels to be awarded in 2008/09 period. • One of three contractors selected
Slide 5: Vessels Completed in 2008
Vessels Completed in 2008 For personal use only 1 X 88 metre vessel for City of Istanbul Turkey Oman Hong Kong 7 x 48 metre vessels for 1 x 65 metre Cotai Strip (Macau) vessels for Sultanate of Oman 3 x 57 metre RAN Patrol Boats Annual General Meeting 2008 Slide 5
Slide 6: Current Orders - Commercial
Current Orders - Commercial For personal use only 2 X 88 metre vessels for 2 X 69 metre Middle East vessels for the Middle East 7 X 48 metre vessels for Cotai Strip (Macau) Hawaii Oman Hong Kong 2 x 48 metre vessels for 1 X 107 metre New World Fast Ferries vessel for 1 x 65 metre Hawaii Superferry v
Slide 7: Current Orders - Military
Current Orders - Military For personal use only • 6 x 30 metre patrol boats for Trinidad & Tobago Coast Guard – including 5 year maintenance & support contract • 1 x 127 metre Littoral Combat Ships for United States Navy Annual General Meeting 2008 Slide 7
Slide 8: Littoral Combat Ship – 2008 Update
Littoral Combat Ship – 2008 Update For personal use only • Austal USA is the designer and builder in the General Dynamics consortium. • Navy remains committed to LCS program and 313 ship fleet plan. • Future vessels will be awarded on a fixed price incentive basis. • No clear direction on when or if
Slide 9: Joint High Speed Vessel – 2008 Update
Joint High Speed Vessel – 2008 Update For personal use only • An approved program by the US Army and Navy. • High speed transport of personnel, supplies and equipment. • Over 100 metres in length. • > US$140M cost/ship. • 10 – 12 ships in the programme. • Initial proposal submitted 27 October 2007.
Slide 10: Austal's Strategic Overview
For personal use only Austal’s Strategic Overview Investor Relations Contacts Growing Shareholder Value
Slide 11: Growing Shareholder Value
Growing Shareholder Value For personal use only • The market only values Austal based on current, known order book. • Our current 25-vessel order book only provides certainty for 1 1/2 years. Our objective is to build longer term, predictable earnings Annual General Meeting 2008 Slide 11
Slide 12: Growth Strategy
Growth Strategy For personal use only Foreign Military JHSV Patrol Sales LCS Boats . Inte U.S rnat iona Passenger/Car l Ferries Defense Service & Maintenance l ercia Liveaboards Revenue Service m Com Austal Cruise boats Through- Life Cost mgmt/ Support Efficiency gains Yachts Modular Manufacturing A
Slide 13: US Operations In Preparation for Defence Orders
US Operations In Preparation for Defence Orders For personal use only Annual General Meeting 2008 Slide 13
Slide 14: Planned US Expansion
Planned US Expansion For personal use only Additional assembly bay Planned 700,000 sq ft Modular Manufacturing Facility Annual General Meeting 2008 Slide 14
Slide 15: Growth Strategy continued: The Patrol Boat Market
Growth Strategy continued The Patrol Boat Market For personal use only • Countries are more interested than ever in protecting their shorelines. • Austal has produced patrol boats for numerous countries: ¾ Yemen ¾ Kuwait ¾ Royal Australian Navy • Recently contracted for 6 vessels for Trinidad & Toba
Slide 16: US Defence Sales – Looking Ahead (LCS)
US Defence Sales – Looking Ahead For personal use only Littoral Combat Ship Program: • Navy has received funding to award 2 more vessels in FY 2009. • Expect both Austal/GD and Lockheed to get one each. • Award to Austal likely in January 2009. • RFP released last week for 3 vessels in FY 2010. • Re
Slide 17: US Defence Sales – Looking Ahead (JHSV)
US Defence Sales – Looking Ahead For personal use only Joint High Speed Vessel Program: • Navy intends to announce winning bidder in the 4th Qtr 2008. • Austal has the trained workforce, facilities and track record to be a logical choice for this award. FY09 FY10 FY11 FY12 FY13 FY14 FY15 TOTAL Plann
Slide 18: Through Life Support/Service Business
Through Life Support/ Service Business For personal use only • Early success in winning TLS contract with Trinidad & Tobago • Middle east opportunities for long term maintenance agreements • LCS TLS opportunities once vessels in operation • JHSV program offers TLS component • TLS revenue potential e
Slide 19: Building Longer-Term, Predictable Earnings
Building Longer-Term, Predictable Earnings For personal use only Three current strategic initiatives… US$ FY09 FY10 FY11 FY12 FY13 FY14 FY15 TOTAL LCS 175 175 350 525 525 525 700 $2.98B JHSV 120 240 240 240 240 240 120 $1.44B Thru-Life Support - - 12 36 60 84 108 $0.30B TOTAL $295M $415M $602M $801M
Slide 20: Outlook
Outlook For personal use only • Use of modular manufacturing techniques will continue to improve throughput and lower costs of construction. • LCS & JHSV programs make up 20% of future US Navy fleet. ¾ Awards in both programs expected within next 3 months • Strong focus on Government oriented contra
Slide 21: Annual General Meeting 2008
For personal use only ANNUAL GENERAL MEETING 2008