Austal Limited · ASX:ASB
Austal — Shareholder Meeting (November 2012)
22 slides from Austal's shareholder meeting presentation, Nov 30, 2012
Slide 1: 2012 Annual General Meeting
2012 Annual General Meeting For personal use only Click to edit Master title style John Rothwell, Chairman 30 November 2012
Slide 2: 2012 Annual General Meeting – CEO
2012 Annual General Meeting For personal use only Andrew Bellamy, Chief Executive Officer 30 November 2012
Slide 3: A year of transition
A year of transition For personal use only Difficulties in the first half of FY2012 as Austal progressed through its transition phase in calendar year 2011 Significant improvement in the second half of FY2012, driven by Austal USA as lessons learned on JHSV 1 were implemented Right sized Austr
Slide 4: Major achievements
Major achievements For personal use only Major new contract awards: o LCS 10 and 12 – US$691m o JHSV 8 and 9 – US$321.7m o Cape Class Patrol Boats – AU$330m Opened new commercial vessel manufacturing facility in the Philippines Doubled manufacturing footprint in the US Established strategic
Slide 5: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 5
Slide 6: Summary
Summary For personal use only Income statement FY12 ($m) FY11 ($m) FY2012 results Revenue 653.0 503.8 Revenue growth of $149m, driven by EBIT 16.6 22.1 growth in US NPAT 11.0 21.9 Offset by first in class issues on first EPS 6.01¢ 11.9¢ JHSV and low activity levels at Balance sheet end FY12 ($m)
Slide 7: Segment breakdown
Segment breakdown For personal use only USA FY2012 ($m) FY2011 ($m) Henderson FY2012 ($m) FY2011 ($m) Revenue 570.3 343.9 Revenue 49.0 133.9 EBIT* 20.8 30.1 EBIT (13.6) (10.1) EBIT margin (%)* 3.6% 8.7% EBIT margin (%) n/a n/a PBT* 13.5 25.9 PBT (9.2) (8.6) YoY revenue growth reflects increase siz
Slide 8: Capital expenditure
Capital expenditure For personal use only 2013 estimate ($m) Project 2012a ($m) Service & USA HSO PSO Total Systems Production, plant and equipment 24.6 7.6 – 1.3 – 8.9 Building/facilities 92.2 12.9 – 4.4 – 17.3 IT 1.1 1.8 0.8 0.5 – 3.1 Other – – 0.1 0.2 0.2 0.5 Total 117.9 22.3 0.9 6.4 0.2 29.8 M
Slide 9: Entitlement offer
Entitlement offer For personal use only 9 for 10 entitlement offer to raise up to approximately A$86 million in new shares at $0.50: o Completed $65 million institutional component on 23 November – closed oversubscribed with strong demand from existing and new investors o Retail shareholders given
Slide 10: Operations Update
Operations Update For personal use only SHIPS SYSTEMS SUPPORT 10
Slide 11: Network of shipyards and support facilities
Network of shipyards and support facilities For personal use only SHIPS SYSTEMS SUPPORT 11
Slide 12: Order book
Order book For personal use only Order book sits at $2.3 billion as at September 2012 – secures revenue until 2016, including: o Joint High Speed Vessels for US Navy x9 contracted (out of 10 vessel award) o Littoral Combat Ships for US Navy x4 contracted (our of 10 vessel award), plus x2 from Gene
Slide 13: Littoral Combat Ship
Littoral Combat Ship For personal use only 10 ship award to Austal (plus 2 from General Dynamics) worth US$5.0 billion Total of 4 ships contracted, plus 2 from General Dynamics Two of those vessels, LCS 10 and LCS 12, contracted to Austal in March 2012 – two further vessels expected in 1Q2013
Slide 14: Joint High Speed Vessel
Joint High Speed Vessel For personal use only 10 ship award to Austal valued at $1.6 billion Total of 9 vessels contracted Two of those vessels, JHSV 8 and 9, were contracted in February 2012 JHSV 10 expected to be awarded in first quarter CY2013 Issues with first-in-class JHSV 1, but now
Slide 15: Cape Class Patrol Boat
Cape Class Patrol Boat For personal use only $330 million contract to design, manufacture and support 8 new CCPBs Underwrite activity at Henderson shipyard until 2015 CCPB 1 keel laying in June 2012 Naming ceremony in March 2013 “During the year Austal developed a very professional and produ
Slide 16: Philippines
Philippines For personal use only Allows Austal to compete competitively in the global commercial market (e.g. ferries, wind farm support vessels) Started operations in February 2012 Full order book through to Q3 CY2013 o x3 27 metre wind farm vessels o x1 27 metre TRI SWATH trimaran wind farm
Slide 17: Service and systems
Service and systems For personal use only Represents significant long-term opportunity for Austal o Significant recurring revenue post- delivery Austal’s IP and global footprint provides significant opportunity to provide through life support for JHSV and LCS o Ships designed for 20 to 30 year l
Slide 18: Strategy and Outlook
Strategy and Outlook For personal use only SHIPS SYSTEMS SUPPORT 18
Slide 19: US defence outlook
US defence outlook For personal use only • Bi-partisan views that mandated cuts to US Defense budget are a blunt instrument – will harm recovery US “fiscal cliff” • Austal’s US backlog of $2.27 billion unaffected (is from previous budgets) • Uncertainty in medium-term as Congress works through this
Slide 20: Strategy
Strategy For personal use only Increase our status as a prime defence contractor Use lessons learnt on first-in-class vessels to drive margin improvement in US Continue to refocus Henderson operations on the manufacture and support of defence vessels Expand commercial construction at our Philippines
Slide 21: Outlook
Outlook For personal use only Lessons learnt from a FY2013 guidance for challenging period to deliver Strengthened balance sheet to A$65-71 million EBITDA and stronger earnings from US deliver on $2.3 billion order book A$23-26 million NPAT operations Long lead items in defence Continuing growth in
Slide 22: 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