Slide 1: 2015 Annual General Meeting
2015 Annual General Meeting For personal use only Andrew Bellamy, Chief Executive Officer 30 October 2015
Slide 2: Highlights
Highlights For personal use only RECORD EARNINGS RESUMED DIVIDENDS LOWERED DEBT Driven by multiple Total of 4.0 cents per Expect net cash position vessel programs share, fully franked by end FY2016 CLEAR GROWTH $3.0 BILLION STRATEGY ORDER BOOK Targeting significant Secures work pipeline of work in k
Slide 3: Record earnings and strong balance sheet
Record earnings and strong balance sheet For personal use only Revenue (A$m) EBITDA (A$m) FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 902.8 1,122.9 1,414.9 62.6 79.3 109.1 NPAT (A$m) Net debt (A$m) FY2013 FY2014 FY2015 30 June 13 30 June 14 30 June 15 6.1 35.7 31.9 53.2 137.1 68.6 SHIPS SYSTEMS SU
Slide 4: Segment breakdown
Segment breakdown For personal use only ($m) Ships Systems Support Other1 Total Revenue 914.2 160.0 45.5 - 1,119.7 USA EBIT 59.6 2.0 4.3 (7.5) 58.4 EBIT Margin% 6.5 1.3 9.5 - 5.2 Revenue 171.2 - 40.6 - 211.8 Australia EBIT 26.3 - 5.7 (0.2) 31.8 EBIT Margin% 15.4 - 14.0 - 15.0 Revenue 29.3 - 9.4 - 38
Slide 5: Overview – shipbuilding programs
Overview – shipbuilding programs For personal use only Order book of $3.0 billion as at 30 September 2015 secures revenue through CY2020, including: o 11 Littoral Combat Ships for US Navy 10 funded, with 1 delivered, funding expected in FY2016 for eleventh vessel o 10 Expeditionary Fast Transports
Slide 6: Progress across the business
Progress across the business For personal use only Vessels delivered FY2015 – Cape Nelson (CCPB 3) USNS Fall River (EPF 4) Cape Sorell (CCPB 4) Cape Jervis (CCPB 5) USNS Trenton (EPF 5) Cape Leveque (CCPB 6) Cape Wessel (CCPB 7) Cape York (CCPB 8) delivered in August 2015 USS Jacks
Slide 7: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 7
Slide 8: US Navy – Littoral Combat Ship
US Navy – Littoral Combat Ship For personal use only 10 ship contract awarded as prime contractor, worth US$3.5 billion and additional 1 ship option Margin and schedule pressure on LCS 6, first in the block-buy contract. Austal implementing experience from LCS 6 to incrementally grow margin on s
Slide 9: US Navy – Expeditionary Fast Transport
US Navy – Expeditionary Fast Transport For personal use only Formerly Joint High Speed Vessel (JHSV), renamed by US Navy to Expeditionary Fast Transport (EPF) 10 ship award to Austal valued at US$1.6 billion (fully funded), securing work through to CY2017 Program progressing well – matured int
Slide 10: Austal strongly positioned in US
Austal strongly positioned in US For personal use only Winning service contracts on Austal-built vessels have US Foreign Policy remains LCS and investing in support continued to be funded and focused on Asia-Pacific business to best position programs are maturing well defence strategy Austal for add
Slide 11: Australia – Cape Class Patrol Boats
Australia – Cape Class Patrol Boats For personal use only $330 million contract for the design, construction and through-life support of 8 Cape Class Patrol Boats for the Australian Border Force (formerly Australian Customs and Border Protection Service) Program matured significantly, delivering
Slide 12: Australia – High Speed Support Vessels
Australia – High Speed Support Vessels For personal use only US$124.9 million contract for the design, construction and integrated logistics support of two 72 metre High Speed Support Vessels for the Royal Navy of Oman Construction is progressing well at Henderson shipyard o Completion of keel l
Slide 13: Australia – High Speed Support Vessels
Australia – High Speed Support Vessels For personal use only SHIPS SYSTEMS SUPPORT 13
Slide 14: Australian defence shipbuilding
Australian defence shipbuilding For personal use only The Federal Government's plan for a strong and sustainable naval shipbuilding industry was announced 4 August 2015 Initiative Impact on Austal The Government will invest over A large, long-term order book of work available to naval shipbuilders
Slide 15: Australian defence shipbuilding
Australian defence shipbuilding For personal use only Initiative Impact on Austal Bringing forward the Future Frigate Variant of Austal’s LCS a potential platform for future frigate. programme to replace the ANZAC (Upgunned LCS soon to be classed as a frigate by US Navy) class frigates from 2023 to
Slide 16: Philippines
Philippines For personal use only Delivered two 45 metre high speed catamaran ferries to Abu Dhabi National Oil Company (ADNOC) in August 2015 under a $30 million design and construct contract Completed customisation of Hull 270 and delivered wind farm vessel to Turbine Transfers Commenced con
Slide 17: Systems and Support
Systems and Support For personal use only Austal is steadily adding experience and capability to deliver a growing portfolio of Naval sustainment contracts US expanding activity beyond own vessels: o Prime contractor for Post Shakedown Availability (PSA) and other post delivery test and trial pr
Slide 18: Strategy and Outlook
Strategy and Outlook For personal use only SHIPS SYSTEMS SUPPORT 18
Slide 19: Strategy
Strategy For personal use only Sustain the Strengthen the Diversify the Scale the business business business business • Maintain current • Improve margins • Grow annuity-style • Position Austal for annual revenue in by driving revenue by building future Navy medium to long- efficiencies / on existin
Slide 20: Outlook
Outlook For personal use only Margin improvement at US Position Austal for Pacific operations as lessons learnt Good opportunity for award Patrol Boat replacement, from LCS 6 are applied – of additional LCS and EPF Future Frigate, and OPV, greatest effect to be on in addition to existing block and s
Slide 21: Disclaimer
Disclaimer For personal use only Andrew Bellamy, Chief Executive Officer Telephone: +61 8 9410 1111 For further information visit www.austal.com Disclaimer This presentation and any oral presentation accompanying it has been prepared by Austal Limited (“Austal”). It should not be considered as an of