Slide 1: Austin Engineering Ltd 1H FY22 Results Presentation
Austin Engineering Ltd 1H FY22 Results Presentation 24 February 2022 www.austineng.com
Slide 2: Who We Are
Who We Are Austin supplies customised equipment to large global mining clients, mining contractors and original equipment manufacturers. Our innovative solutions maximise productivity and profits for our clients. 11 Locations across six continents, including partners. $198.1M* $135.3M $181M Revenue
Slide 3: Our 40-year journey
Our 40-year journey Brisbane, Australia Perth, Australia Casper, USA La Negra, Chile Batam, Indonesia Global Operation Worldwide 1982 2004 2007 2009 2011 2017 2021 Austin is founded Acquired JEC Acquired Westech Acquired Conymet Commenced operations Austin is rebranded Austin 2.0 initiated 15.0% 15.
Slide 4: What we do
What we do We are an industrial business producing world class customised wear products for the mining industry Customised for ore Configured to fit OEM type & nature excavators, dippers, Designed to improve face shovels, etc. digging characteristics Optimised for weight carrying, mining configurati
Slide 5: What we do
What we do Tyre Handler Water Tank Ore Chute* *Ore Chutes are designed by Nordic Minesteel Technologies and built under licence for Freeport mine in Indonesia. 5 Austin Engineering Limited H1 FY2022 Results Presentation | February 2022 www.austineng.com
Slide 6: Where we operate
Where we operate The major mining jurisdictions of the world are our home markets, currently covering circa 65% of global truck tray market. Fortt McMurray Serves Western Canadian oil sands market supported by Wyoming Batam Serves Asia and provides low-cost manufacture for APAC Wyoming Serves Powder
Slide 7: Why we are different
Why we are different • Austin is an industrial business building standard product types with more reliable revenue and earnings outlook. • Products are made to order, fast turnover consumables critical to most types of mining worldwide. Average truck Product Focused 85% body turnover is 3-8 years de
Slide 8: Why we are different
Why we are different • Austin is strategically located in the key mining areas of the world that are both accessible and have high product demand. Global Diversified • Most mines in the world transport ore from pit to process by truck. This drives demand for bodies and buckets. Diversification Reven
Slide 9: What are our markets?
What are our markets? • 3rd party data suggests world market for 100 tonne+ trucks is circa 20,000 in total. Austin estimates over 3,000 replacement truck bodies and 500 buckets are required p.a. Global ~18% • Austin is the world brand leader but with a market share estimated at circa 18% indicating
Slide 10: H1 FY2022 Highlights
H1 FY2022 Highlights Revenue Net debt $80.1m $19.8m H1 EBITDA has risen to $11.5m based on cost efficiencies 11.5 12.0 Down 7% from $85.8m in PCP Excl. $15.0m of lease liabilities 10.0 Impact of Austin 2.0 EBITDA* Dividends 8.0 $11.5m 0.2 cps 5.4 6.3 6.0 $M Up 76% from $6.5m in PCP H1 2022 declared
Slide 11: Highlights
Highlights • Total revenue from continuing operations of $80.1 million versus $85.8 million in prior corresponding period. Reduction primarily due to elimination of unprofitable activity in APAC • EBITDA from continuing operations of minimum $11.5 million vs $6.5 million in pcp (statutory) exceeding
Slide 12: Financial Results
Financial Results Gareth Jones, Chief Financial Officer P 12 Austin Engineering Limited H1 FY2022 Results Presentation | February 2022 www.austineng.com
Slide 13: Financial Performance: Statutory (Continuing Operations)
Analysis of Financial Results Financial Performance: Statutory (Continuing Operations) H1 H1 2021 to 2022 12 months ending 2022 2021 % Change Revenue $M 80.1 85.8 (7)% • Revenue down $5.7 million primarily due to elimination of EBITDA $M 11.5 6.5 76% unprofitable activity in APAC EBITDA margin % 14.
Slide 14: Cash Flow
Analysis of Financial Results Cash Flow Fiscal year ending H1 H1 $M 2022 2021 Cash flows from operating activities NPAT 5.8 1.1 • Operating cash flows for the period were impacted by Add: working capital movements related to: • Depreciation and amortisation 2.7 3.5 ‒ Higher work-in-progress to suppo
Slide 15: Balance Sheet and Other Items
Analysis of Financial Results Balance Sheet and Other Items Increase in Net Debt to support working capital Inventory • Net debt increased $9.1 million to $19.8 million, primarily to support • Inventory is the significant use of working capital with a movement of working capital requirements, capex
Slide 16: Sector Analysis
Analysis of Financial Results Sector Analysis H1 H1 H1 H1 H1 H1 Asia-Pacific 2022 2021 North America 2022 2021 South America 2022 2021 Revenue (continuing operations) $M 43.6 60.5 Revenue (continuing operations) $M 23.8 12.0 Revenue $M 12.7 13.3 EBITDA (statutory) $M 6.2 9.5 EBITDA (statutory) $M 1.
Slide 17: Property Portfolio
Analysis of Financial Results Property Portfolio Austin owns several properties globally to conduct business and a number have either a sale pending completion or are up for sale. Property, Plant and Assets Held Carrying Values ($M) Equipment for Sale Property Portfolio Casper, Wyoming 10.8 Batam, I
Slide 18: Global Strategy
Global Strategy David Singleton, Chief Executive Officer and Managing Director P 18 Austin Engineering Limited H1 FY2022 Results Presentation | February 2022 www.austineng.com
Slide 19: Global Strategy Launched in July 2021
Market Opportunity Global Strategy Launched in July 2021 To be a technology-led global leader in mining product manufacture Phase 3 (FY 2023/4) Technology and Innovation • Launching new truck tray in Q3 Phase 2 (FY 2023 impact) • Launching new High Performance bucket designs in Q3 2022 Manufacturing
Slide 20: Global Mining Truck Tray Market Opportunity
Global Mining Truck Tray Market Opportunity Austin’s addressable ‘home markets’ represent ~65% of the world market of which Austin has a less than 18% share. Analysis indicates good opportunity to grow with clear market facing strategies. North America Canada 413 Alberta Asia 18% 19% 344 15% 1% Indo
Slide 21: Global Mining Truck Tray Market Opportunity
Global Mining Truck Tray Market Opportunity Austin uses small, highly efficient production hubs to service the world using local partners for market access. Our Indonesian Our USA business business supports hub is supported by markets in Australia, spoke centres in Africa and central Canada & Mexico
Slide 22: Australian Mining Truck Tray Market Opportunity
Australian Mining Truck Tray Market Opportunity Australia is the world’s biggest market for 100 tonne+ trucks and Austin’s market share is 23%. Austin has completed a significant re-design of its product offering and service delivery aimed at increasing market share. Queensland 172 29% 10% Western A
Slide 23: Austin is launching two new product types in 2022
Austin is launching two new product types in 2022 Austin’s investment in R&D has led to the impeding launch of two new product ranges optimised for the Australian market. Prelaunch sales have demonstrated market interest and demand. Next Gen Truck Body High Performance Buckets Series P 23 Austin Eng
Slide 24: Outlook
Outlook P 24 Austin Engineering Limited H1 FY2022 Results Presentation | February 2022 www.austineng.com
Slide 25: FY22 Market Guidance
FY22 Market Guidance • Full year NPAT is expected to be over $18 million (FY21 $3.3 million statutory) • Full year EBITDA is expected to be circa $30 million (FY21 $12.7m statutory) • Current projection is for full year revenue to exceed FY21. • Order book is up 35% compared to the PCP at December 2
Slide 26: Sustainability
Sustainability P 26 Austin Engineering Limited H1 FY2022 Results Presentation | February 2022 www.austineng.com
Slide 27: Sustainability: Safety
Sustainability Safety Safety statistics Safety Leadership LTIFR TRIFR • During FY22 Austin maintained and improved the Critical Control 8 7.3 18 15.7 Effectiveness Monitoring Program (CCEMP) rolled out in FY21. 7 16 14 12.9 12.7 13.1 6 Frequency rate 5 Frequency rate 12 • The Group is progressively
Slide 28: Sustainability: People
Sustainability People Headcount Growth in Communities Headcount • Of our total global workforce (including labour hire) of 1,012 at 31 2000 December 2021, 80% of the workforce in each of our facilities globally 1800 is sourced from local communities. 1600 1400 1200 1000 • Austin’s supply chain is he
Slide 29: Sustainability: Environment
Sustainability Environment Through our assessment and management of climate-related risks and opportunities for mitigation at each of our global manufacturing operations we have: • Implemented technology to reduce scrap steel by improving operational processes. • Better understand our carbon footpri
Slide 30: Important Information
Important Information This presentation has been prepared by Austin Engineering Limited (ABN 60 078 480 136) (“Austin” or the “Company”). The information in this presentation should be read in conjunction with Austin’s continuous disclosure announcements. The information is of a general nature and h
Slide 31: At Austin "Design matters"
At Austin “Design matters“ design matters | austineng.com www.austineng.com