Slide 1: FY2013 results presentation
FY2013 results presentation For personal use only Andrew Bellamy, Chief Executive Officer 30 August 2013
Slide 2: FY2013 highlights
FY2013 highlights For personal use only Record revenue of $902.8 million, a 38% increase on FY2012. Financial Earnings consistent with guidance: o $62.6 million EBITDA. o $35.7 million NPAT. Balance sheet strengthened and simplified debt facility in place. EBIT margin almost doubled at US –
Slide 3: Financial growth targets met
Financial growth targets met For personal use only Revenue ($m) EBITDA ($m) NPAT ($m) FY2012 FY2013 FY2012 FY2013 FY2012 FY2013 653.0 902.8 35.5 62.6 11.0 35.7 Strong improvement in earnings and revenue: o Revenue of $902.8 million. o EBITDA of $62.6 million. o NPAT of $35.7 million. EBIT margin
Slide 4: Major milestones in the year
Major milestones in the year For personal use only Funding confirmed for contracted vessels: o LCS 14 and LCS 16, worth US$681.7m. o JHSV 10, worth US$144m. Significant progress in construction of US Navy vessels: o USNS Spearhead (JHSV 1) delivered. o USNS Choctaw County (JHSV 2) delivered. o L
Slide 5: Delivering on divisional outlook
Delivering on divisional outlook For personal use only November 2012 outlook Status USA • Apply learnings to improve margins. • 5.2% EBIT margin for FY2013; $39.2m EBIT. • JHSV 10, LCS 14 & LCS 16 contracts to be funded. • All three contracts funded, with LCS contracts funded post-sequestration. • R
Slide 6: Objectives for sustained growth
Objectives for sustained growth For personal use only Restructure Improve Ongoing Pursue balance operations delivery opportunities sheet • Reduced net debt • Achieved targeted • Cash • Continue to target through $77.9m +5% EBIT margin management opportunities for capital raising. at US operations. i
Slide 7: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 7
Slide 8: Earnings summary
Earnings summary For personal use only FY2013 FY2012 Increase FY2013 results: Income statement ($m) ($m) ($m) Met stated guidance for the year. Revenue 902.8 653.0 249.8 Margin improvement in the USA, with EBITDA 62.6 35.5 27.1 EBIT margin at 5.2% in FY2013 vs EBIT 38.1 16.6 21.5 2.7% in FY2012.
Slide 9: Segment breakdown
Segment breakdown For personal use only USA FY2013 ($m) FY2012 ($m) Australia (HSO) FY2013 ($m) FY2012 ($m) Revenue 749.4 570.3 Revenue 90.6 63.7 EBIT 39.2 15.8 EBIT 0.5 (13.6) EBIT margin (%) 5.2 2.7 EBIT margin (%) 0.6 n/a Delivered margin growth. Small profit in FY2013 and forecast to remain
Slide 10: Balance Sheet
Balance Sheet For personal use only Balance sheet 30 Jun 2013 30 Jun 2012 Balance sheet summary: ($m) ($m) Growth in asset base, reflecting Total assets 946.5 826.0 increasing scale of USA business. Cash 38.0 51.8 Balance sheet strengthened by Restricted cash 69.7 52.9 successful $77.9m capital
Slide 11: Debt position
Debt position For personal use only Significant steps taken to reduce net debt and gearing, and Pre-capital raising At 30 Jun 13 simplify the company’s debt profile. 250 50% Net Debt/EBITDA at 2.12x, within target range. US$35 million of untilised Go Zone Bonds retired in Feb 2013. 200 38.7% 4
Slide 12: Operations Update
Operations Update For personal use only SHIPS SYSTEMS SUPPORT 12
Slide 13: Order book
Order book For personal use only Current order book of $2.6 billion secures revenue until 2017, including: o Littoral Combat Ships for US Navy x6 funded (out of 10 vessel contract), plus x1 from General Dynamics (GD) and x1 delivered to GD (out of 2 vessel contract). o Joint High Speed Vessels for
Slide 14: Littoral Combat Ship
Littoral Combat Ship For personal use only 10 ship contract awarded as prime contractor, worth US$3.5 billion: o 2 ships out of Austal’s 10 contract award have been funded by US Navy each year, with the final 4 ships contracted to be funded in FY2014 and FY2015. 2 additional vessels constructed
Slide 15: Joint High Speed Vessel
Joint High Speed Vessel For personal use only 10 ship contract awarded valued at US$1.6 billion. US Navy has funded construction of all 10 ships – work secured through to 2017. Program has been considerably de-risked, following lessons learnt in construction and delivery of JHSV 1. Progress:
Slide 16: Austal well positioned in US
Austal well positioned in US For personal use only Austal-built vessels have continued to be funded • LCS 14 & LCS 16 funded in March 2013 – after budget sequestration. • JHSV 10 funded in December 2012. • Funded vessels and associated revenue is locked in. • Funding of vessels LCS 18 & 20 expected
Slide 17: Cape Class Patrol Boat
Cape Class Patrol Boat For personal use only $330 million contract to design, manufacture and support 8 new Cape Class Patrol Boats. Vessels are fully funded and underwrite activity at Henderson shipyard until H1 FY2016. Progress: o CCPB 1 – Delivered in April 2013. o CCPB 2 – 70% per cent com
Slide 18: Philippines
Philippines For personal use only Enables Austal to compete in the global commercial market (e.g. ferries, wind farm support vessels) – delivering cost and performance advantages to Austal and customers. Delivered a profit in its first full year of operations. First ship delivered December 201
Slide 19: Service and Systems
Service and Systems For personal use only Provides long-term opportunity and stability for Austal “The JHSV could prove especially through annuity-style work. valuable in the Asia-Pacific region, where the distances make range and the ability o Potential for high margin contracts. to maintain good
Slide 20: Outlook
Outlook For personal use only SHIPS SYSTEMS SUPPORT 20
Slide 21: Objectives
Objectives For personal use only United States Henderson Philippines Support • Progressive growth • Increase efficiencies • Continue building • Utilise service in profit margins as on Cape Class technological network to target vessel programs Patrol Boats, capabilities at the service work in Asia ma
Slide 22: Outlook
Outlook For personal use only Progressive growth in profit Long term defence contracts margins as vessel programs Prudent cash management in provide visibility of revenue – mature in the US. place to allow delivery on record expect revenue of approximately Australian margins to grow as amount of wor
Slide 23: Appendix – Austal overview
Appendix – Austal overview For personal use only Founded in 1988 and listed on the Australian Stock Exchange in 1998, Austal is a leading defence prime contractor, specializing in the design, construction and maintenance of high performance vessels for defence and commercial purposes. Austal has a
Slide 24: Ships
Ships For personal use only Advanced design, construction, engineering and Warships and Multi Role Vessels support are Austal’s core competency. 249 vessels constructed. Delivered globally. Defence Global defence prime contractor with significant Patrol Vessels programs in place. o US Navy’s L
Slide 25: Systems
Systems For personal use only Austal’s Systems division provides advanced integration, maintenance and command and control systems for defence and commercial applications. Advanced Integration: Radars, communications, command and control systems and user- interfaces. Maintenance: Through Life Su
Slide 26: Support
Support For personal use only Austal has a large support offering through its regional centres: London Washington Mobile Dubai Muscat Philippines Trinidad Singapore Darwin Perth Canberra Service products are tailored to address customer requirements: o Vessel and Fleet Maintenance. o Refit and Rep
Slide 27: 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