Austin Engineering Limited · ASX:ANG
Austin Engineering — Patersons Securities 'Go West' Conference 2009
15 slides from Austin Engineering's conference presentation, May 28, 2009
Slide 1: Presentation to Patersons Securities 'Go West' Conference
For personal use only Presentation to Patersons Securities ‘Go West’ Conference Sydney, 28 May 2009
Slide 2: About Austin Engineering
About Austin Engineering For personal use only World’s largest non-OEM designer and manufacturer of mining dump truck bodies Other key product lines include excavator buckets, service modules, tyre handlers and other specialised equipment used in the mining and resources business sectors Established
Slide 3: Snapshot
Snapshot Key 2008 financial data For personal use only EBIT $17.05m Net profit $11.54m EPS 24.73c Dividends per share 7.5c Payout ratio 25-40% Board and executive team Peter Fitch Chairman Michael Buckland Managing Director Peter Pursey Non-Exec Director Eugene Fung Non-Exec Director Paul Reading No
Slide 4: Historical FY Financials
Historical FY Financials For personal use only
Slide 5: Financials for HY to December 2008
Financials for HY to 31 December 2008 HY2008 HY2007 Increase 31 Dec 30 June Increase For personal use only $m $m % 2008 2008 % Revenue 94.59 43.21 119% Working capital 14.99 12.14 23% EBITDA 13.12 7.86 67% Property, plant & equipment 25.85 21.85 18% EBIT 12.09 7.00 73% Intangible assets 18.72 16.75
Slide 6: Sources of Revenue
Sources of Revenue By type of customer: Type Client Good quality, blue-chip, supportive clients For personal use only Miners Rio Tinto, BHP, Xstrata, Macarthur Coal, Anglo Coal Ability to service client needs for the manufacture of both standard OEM (such OEMs Komatsu, Terex, Liebherr, Hitachi, Esco
Slide 7: Product Range
Product Range For personal use only Above: Westech dump truck body, Below: JEC service module Above: JEC bucket, Below: JEC tyre handler
Slide 8: Market Positioning and Points of Differentiation
Market Positioning and Points of Differentiation Niche market: For personal use only Austin operates in a market with limited competition on a worldwide basis Competitors are fragmented and regional, with limited or no national/international presence Product and service capability: Proven JEC and We
Slide 9: Market Positioning and Points of Differentiation
Market Positioning and Points of Differentiation For personal use only Sustainable business model: Proven productivity and profitability improvements from superior product designs Significant international market opportunities utilising the existing business strategy and model Financial strength thr
Slide 10: Recent Market Developments
Recent Market Developments For personal use only Marked reduction in the level of activity by major miners, but operations have not come to a grinding halt and equipment is still being used Protracted conclusion to the current round of iron ore price negotiations has delayed expenditure decisions by
Slide 11: Business Strategy
Business Strategy For personal use only Expand the company’s existing customer base and geographical presence through the promotion of the Westech and JEC product ranges Development of long-term relationships with key customers and OEMs on a worldwide basis to become the preferred supplier of qualit
Slide 12: South America Expansion Plans
South America Expansion Plans Overview: For personal use only Significant market analysis and business feasibility studies undertaken, with Chile and Brazil being identified as regions of particular market opportunity Chile: Major miners in Chile have large fleets of equipment, with around 1,000 dum
Slide 13: South America Expansion Plans
South America Expansion Plans Brazil: For personal use only Mining activity in the region still good with the major miner, Vale, recently reporting ‘solid financial performance in 1Q09’ and spending US$1.7b on project investments (excluding acquisitions) Equipment needs generally satisfied by import
Slide 14: Outlook
Outlook For personal use only Operations and activity levels over the past few months largely progressing as anticipated earlier in the January to June 2009 half-year period Commercial arrangements with customers and suppliers not expected to change significantly, with some further possible relief f
Slide 15: For personal use only
For personal use only World’s largest non- OEM designer and manufacturer of mining dump truck bodies For more information please visit www.austineng.com.au
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