Slide 1: FY2019 Full Year Results
FY2019 Full Year Results 30 August 2019 David Singleton, Chief Executive Officer Greg Jason, Chief Financial Officer
Slide 2: Financial Headlines
Financial Headlines YEAR ON YEAR CHANGE • EBIT $92.8 m 46% • NPAT $61.4 m 64% • Total Dividends 6 ¢ per share 20% • Operating Cash Flow $164 m up $99 m • Net Cash 1 $151 m up $117 m 1. Excludes the notional debt of the CCPB 9 & 10 leasing program
Slide 3: FY2019 Key Facts
FY2019 Key Facts $1.85 B $4.9 B 11 58 12 5,700 ORDER BOOK NEW SHIPS SHIPS UNDER SHIPS EMPLOYEES REVENUE ORDERED CONSTRUCTION DELIVERED OR SCHEDULED 6 7 SHIPYARDS 25 SERVICE CENTRES IN 5 COUNTRIES VESSELS UNDER SUSTAINMENT
Slide 4: Operational Highlights
Operational Highlights • USA Business performing ahead of expectations: • Shipbuilding margin increased from 7.4% to 7.9%. • 3 Vessels delivered in year (2 LCS & 1 EPF). • 4 LCS and 2 EPF awarded. • Design development for major new programs. • Australasia returned to profitability. • Commercial Ferr
Slide 5: FY2019 Financials
FY2019 Financials
Slide 6: Earnings
Earnings 1 $m FY2019 FY2018 Change Record result across every metric. Revenue $ 1,852.1 $ 1,390.5 $ 461.6 EPS increased by 62% EBITDA 135.0 100.8 34.2 Operating Revenue increased across all shipyards underpinned by: EBIT 92.8 63.5 29.3 • Strength of USA new vessel orders • Expansion of commerc
Slide 7: Segment breakdown
Segment breakdown USA: Shipbuilding margin at upper end of guidance range. FY2019 Concept Ships Support Other Total $90 m (67%) Support revenue $m growth with margins at target Revenue $ 1,248.1 $ 224.6 $ - $ 1,472.7 levels (7 – 8%). USA EBIT 98.6 16.3 (8.5) 106.4 Provision for investigation EBIT Ma
Slide 8: Cash flow
Cash flow $m FY2019 FY2018 Change Operating: Operating $ 164.5 $ 65.6 $ 98.9 Significant operating cash flow. Investing $65.9 m is due to net progress payments in advance. Sustaining $ (14.3) $ (15.0) $ 0.7 Investing: Enhancing (23.5) (15.9) (7.6) Sustaining capex in typical range of $(10) – (
Slide 9: Net Cash / (Debt)
Net Cash / (Debt) June 2019 Net Cash $151 m 1 $m $200 $150 $100 $50 Cash $0 (Debt) ($50) ($100) ($150) ($200) Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 1. Excludes the notional debt of the CCPB 9 & 10 leasing program
Slide 10: Business Priorities 2020
Business Priorities 2020 Expand footprint in USA through participation in new USN programs Drive Asia investment to enhance competitiveness Group wide cost efficiency Build world’s best ships through major expansion of R&D investment
Slide 11: FY2020 Guidance
FY2020 Guidance • Group Revenue not less than $1.9 billion • US Shipbuilding EBIT margin range increased to 7.5-8.5% • Group EBIT not less than $105 million Defence Commercial Support • Draft US Federal 2020 Budget does • Commercial vessel opportunities continue • LCS dry dockings is a significant n
Slide 12: Group Strategy Overview
Group Strategy Overview 1. Next chapter of potential US growth underway 2. Expansion in Asia has unlocked potential to significantly increase commercial competitiveness and profitability 3. Financial strength enabling a 3-fold increase in R&D activity and potential investments / acquisitions to reta
Slide 13: Range of future US opportunities is expanding
Range of future US opportunities is expanding Small surface combatants ( FFG and LCS upgrades) EPF program expansion EPF variants including Medical Transports Unmanned Surface Vessels 13
Slide 14: USA Sustainment activity continues to grow
USA Sustainment activity continues to grow LCS – repair & back-fitting new capabilities • West Coast – San Diego, Seattle & Portland • Asia – Singapore EPF – Global fly away teams • USA & Overseas Investments • ElectraWatch aluminium life-cycle R&D • Facilities upgrades. 14
Slide 15: Asia growth is re-balancing cost-base
Asia growth is re-balancing cost-base* Vietnam Philippines China (JV) 2017 2020 2020 Australia New Vietnam yard 2017 Vietnam Australia Philippines Philippines yard expansion China Philippines Australia China Operational construction capacity as share of annual revenue generation potential *Excludes
Slide 16: Local presence creates regional naval opportunity
Local presence creates regional naval opportunity GCPB generating export interest 16 16
Slide 17: Increasing rate of ferry fleet renewal appears likely
Increasing rate of ferry fleet renewal appears likely more than 30 years Age of the existing global large fast ferry fleet 20‐30 years (more than 100 active HSC vessels over 60m) less than 20 years 100% 90% 80% 70% 60% 50% 40% Without renewal, more than 60% of today’s large 30% fast ferries will be
Slide 18: Cleaner vessel regulations positive for Austal
Cleaner vessel regulations positive for Austal 2020 Global Sulphur Cap 2021 Baltic & North Sea 2025 Zero Emission Targets NOx ECA Emissions: 85% SOx decrease Fuel prices: 26% increase Energy: 2.5% increase OPEX: 13% increase World’s largest battery‐electric ferry to date, 4MWh Austal vessels already
Slide 19: Business Overview
Business Overview v aVaVaVaTalalalal Sueececs VavaVavaraa%ara va AFT ELEVATION
Slide 20: Ferry
= ep) =i Ferry VS Grand Ferries Corporation Littoral Combat Ship (LCS) Hull 420 delivered US Navy 109m Passenger and Vehicle Ferry jab) O (Se @ one jab) O _ _— _ dette Commercial ppp Malstinjen lull 393 del 50m Passenger Ferry Expeditionary Fast Transport (EPF) Braveline US Navy Hull 680 dk EPF 10 d
Slide 21: Support
* > (= iva) ys BS) > vIsv $225m Turnover support contracts FY2019 $70m Turnover support contracts FY2019
Slide 22: USA shipyard facts
Only foreign owned Prime Contractor designing, building and sustaining ships for the US pie Sth Largest shipyard in the USA Largest industrial employer in South Alabama —", a ii Orders placed for 4 x Littoral Combat Ships and 2 x Expeditionary Fast Transport Ships
Slide 23: Australian Shipyards
Shae Australian Shipyards Austal Henderson South is the latest addition to Austal Australia’s ship building facilities M118 Naval Architects, Designers and Draftspeople 925% Female workforce target 12.5% of the workforce are currently women of 21 Guardian Class Patrol Boats (GCPBs) Delivered Pacific
Slide 24: New Construction Bays
New Construction Bays Infrastructure upgrade complete and officially opened in July 2019 PR AARA >900 Employees 987% Local Filipino g Awarded government license to engage in shipbuilding and ship repair of naval combat vessels in the Philippines
Slide 25: Vietnam shipyard
“heal Shipyard officially opened in October 2018 PAAARA >300 Employees 97% Local Vietnamese 94m vehicle/passenger ferry for Trinidad and Tobago currently under construction
Slide 26: China joint venture
z 2 18 & a S & a A a a 40% Austal’s investment in Joint Venture ia 7 Vessels under construction in FY2019 40 metre passenger ferries delivered in FY2019
Slide 27: FY2019 Operational Overview
FY2019 Operational Overview
Slide 28: USA operations
USA operations Change since FY2018 Shipbuilding margin improvement to 7.9% (FY2018 margin 7.4%). Littoral Combat Ship Margin improving ship to ship. LCS 18 & 20 delivered. Awarded LCS 32, 34, 36, 38. LCS 24, 26, 28, 30 commenced construction Expeditionary Fast Transport Mature progra
Slide 29: Australia operations
Australia operations Change since FY2018 VESSEL PROGRAMS: GCPB (~$335 million, 21 ship program) - 3 vessels delivered in FY2019; delivering a new GCPB every 3 months Hull 393 - Molslinjen Express 4 109 metre Auto Express ferry delivered Hull 394 (1 of 2 x 117 metre trimarans for Fred Olsen SA)
Slide 30: Philippines operations
Philippines operations Change since FY2018 US$20 million investment to increase ship building capacity completed; new facilities including 120 metre John Rothwell Assembly Bay officially opened July 2019 Philippines Government expressed intention to build 6 x OPV for Philippines Navy at Austal P
Slide 31: Vietnam operations
Vietnam operations Change since FY2018 New leased shipbuilding facilities in Vung Tau opened October 2018; main assembly hall 92 metres long Approx 250 employees now constructing Hull 397 VESSEL PROGRAMS: Hull 397 – 1x 94 metre Auto Express ferry for Government of Trinidad and Tobago
Slide 32: China operations
China operations Change since FY2018 VESSEL PROGRAMS: 2nd vessel for Blue Sea Jet - 35 metre high speed ferry delivered January 2019 1st of 4 x 42 metre high speed catamarans for Xidao Dazhou Tourism Co Ltd delivered January 2019 5 x additional vessels currently under construction due for deli
Slide 33: Disclaimer
Disclaimer David Singleton, 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 offer or invitation to
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