Austal Limited · ASX:ASB
Austal — Shareholder Meeting (October 2017)
28 slides from Austal's shareholder meeting presentation, Oct 27, 2017
Slide 1: David Singleton, Chief Executive Officer
i David Singleton, Chief Executive Officer
Slide 2: World's largest aluminium shipbuilder
For personal use only • World’s largest aluminium shipbuilder • Shipyards in US, Australia and Philippines • Service/Support Centres in Darwin, Cairns, San Diego and Singapore • Only Australian company in world’s top 100 Defence Contractors & Australia’s largest Defence exporter • Prime contractor f
Slide 3: Ships delivered, under construction and sustainment programs
For personal use only • >$1.3 billion in revenues. • >4700 employees globally. Ships Delivered FY2017 = 10 • 2 USA, 6 Henderson & 2 Philippines: • 1 x LCS10 • 1 x EPF8 • 2 x HSSV’s (strictly speaking only 1; 1 was delivered in FY2016) • 1x CMS 70m • 1 x Swire 57m • 2 x 2Go 30m • 2 x Capes Ships Unde
Slide 4: Ferry orders in last months
Ferry Orders in Last (approx.) 18 months = 13 • 1 x Mols • 1 x Seaspovill • 2 x 2Go • 1 x FRS • 2 x Aulong • 1 x VS Ferries Corp • 1 x Fjord Line For personal use only • 2 x Wisdom Marine • 2 x FOSA
Slide 5: Financial results overview
For personal use only • Revenue was flat as expected and we have indicated that will continue into 2018 as US revenues decline as the shipbuilding programs hit steady state, and non‐US businesses grow, based on recent order wins. • Underlying EBIT was above our projected range of $50‐$55M and showed
Slide 6: Contract awards over 2016 and 2017
For personal use only • $820.1m in contracts over calendar years 2016 and 2017 ~ 64% previous 10 years • Size and quality of non‐USA book has been growing substantially and represents one of our best through our history • Includes $305m PPB and 4x circa $100m ferries. Total order intake over previou
Slide 7: Vessel awards at peak level
For personal use only • You can see that in 2016 and 2017 vessel awards are at a peak level ($820.1m in contracts) • A major difference however is the quality of the opportunities. We now have 4 x circa 100M+ vessels in the order book but only built 6 in the last 20 years
Slide 8: LCS performance
For personal use only PERFORMANCE • LCS 8 – USS Montgomery commissioned September 2016 • LCS10 – USS Gabrielle Giffords delivered 23 December 2016, commissioned June 2017 • LCS 12 – USS Omaha delivered Sept 2017 • LCS14 – in next few months • 3 issues on LCS: • Program performance; • New orders; and
Slide 9: LCS orders
For personal use only • ORDERS • LCS 28 (Yet to be named) – contract announced June 2017 • LCS 30 (Yet to be named) – contract announced October 2017 • 15th Independence class LCS to be built by Austal • Order value to date in excess of $8 billion • LCS 28 & 30 won as a result of a cost shoot out wi
Slide 10: FFG(X) frigate proposal
For personal use only • FFG(X) Request for Proposals anticipated November 2017; Austal has prepared an ‘up‐gunned’, LCS based Frigate solution as shown • US Navy may award as many as three design contracts for the FFG(X) competition. • 6 companies who may bid on the program: Austal USA, BAE Systems,
Slide 11: EPF program
For personal use only • EPF 8 – USNS Yuma delivered April 2017 • EPF 9 – USNS City of Bismarck launched June 2017 • Orders received for EPFs 11 and 12 bringing total contract value to more than $2 billion • Orders for EPF’s 11 and 12 announced September 2016
Slide 12: Offshore Patrol Vessel program
For personal use only • 12 vessels from 2018 • 2 in Adelaide, 10 in Henderson • $1.5B Acquisition program with a $2B support program to be bid later • OPV80 RAN design from Fassmer • Decision expected in next 2‐4 weeks • This program is the single most important project Henderson has ever bid or is
Slide 13: Video of OPV80 RAN
For personal use only Video of OPV80 RAN (shown at Pacific 2017)
Slide 14: Guardian Class Pacific Patrol Boat Replacement
For personal use only • Guardian Class – Pacific Patrol Boat Replacement • 19 steel hull vessels for 12 Pacific Islands • 11 tonnes aluminium, 85 tonnes steel per vessel • 150 workers at peak, from mid 2018 thru to mid 2022 • Dedicated PPB shipbuilding facility Hope Valley Road, Naval Base • Launch
Slide 15: SEA5000 frigates for RAN
For personal use only • SEA5000 – 9 Frigates for RAN from 2020 • Austal teaming agreement with ASC to offer local, Australian owned solution for Frigates construction • Future of Australian owned shipbuilding will be defined by this program • Frigate down selected by mid CY18 • Political support for
Slide 16: Cape Class patrol boats
For personal use only • Capes 9 and 10 for Royal Australian Navy commenced construction December 2015 • Cape Fourcroy delivered April 2017 • Cape Inscription delivered May 2017 • Austal providing in‐service support to Australian Border Force and Royal Australian Navy vessels (10 in total) through He
Slide 17: Molslinjen high speed ferry
For personal use only • Molslinjen (Denmark) 109 metre high speed vehicle passenger ferry ‐ ‘Express4’ • Approx $100million contract • 827 tonnes of Aluminium, Lightship Weight 1400 tonnes • Approx 300 peak resources occurring early 2018 • 10th Aug 2018 Launch • Handover 10th Jan 2019 • 21 month Con
Slide 18: Fjord Line ferry
For personal use only • 109 metre high speed vehicle passenger ferry for Fjord Line, Norway • A$108million contract • Launch July 2019 • Delivery January 2020 • 100 workers engaged at peak production • 860 tonnes aluminium • First large vessel build for Philippines. Previous largest was 80m. • Phili
Slide 19: 117m trimarans for Fred Olsen
For personal use only • 2 x 117metre trimarans for Fred Olsen SA of Spain (Canary Islands) • A$190million • Adds to Benchijigua Express – 127m trimaran designed and built by Austal in 2005 • One build in Australia, one in Philippines (TBC?) • New version under development for last 12 months. Before
Slide 20: High speed passenger ferry for Seaspovill
For personal use only • 1 x 50 metre high speed passenger ferry for Seaspovill (South Korea) • Delivered July 2017 • $13million • 256 workers engaged during production • 73 tonnes aluminium
Slide 21: Passenger ferries for 2GO, FRS, Brave Line and VS Grand Ferries
For personal use only • 2 x 30 metre high speed passenger ferries for 2GO (Philippines) – delivered June 2017 – contract value A$16million – 251 production workers engaged – 37 tonnes aluminium each • 1 x 56 metre high speed passenger ferry under construction for FRS (Germany) – Launching Jan 2018,
Slide 22: Aulong joint venture in China
For personal use only • Aulong joint venture with Jianglong Shipbuilding established June 2016 • First contract from Blue Sea Jet of China ‐ 42 metre high speed passenger ferry in August 2016 ‐ A$10 million – anticipated delivery Nov 2017 • 2nd contract from Blue Sea Jet ‐ 35 metre high speed passen
Slide 23: Large offshore crew transfer vessels
For personal use only • ‘Rashid Behbudov’ – 70 metre Large Offshore Crew Transfer Vessel (LCTV) for CMS of Azerbaijan completed in approx 12 months following hybrid build across Philippines and Australian shipyard – delivered Sept 2016 – Incat Crowther Design • ‘Pacific Kestrel’ – 57 metre Large Off
Slide 24: Sustainment
For personal use only • Key strategy has been to build a reliable long term revenue stream from sustainment from the Navy ships built by Austal in Australia, USA and rest of the world. • 4 x Armidale Class Patrol Boats have been completed under the remediation contract / program; HMAS Wollongong, Ch
Slide 25: Efficiency improvements in shipbuilding
For personal use only • Austal’s aim is to be the most efficient shipbuilder in our class in the world. • Major improvements made on MOLS vessel and clear focus on future reductions. • Showing the cost build from the Philippines to Henderson.
Slide 26: New technologies leading to sales
NEW TECHNOLOGIES|PEADING TO SALES _ ma) | aes MARINELINK Smart —— ey AUSTAL dicted bow thruster failure: 1 week t RELENTLESS DETERMINATION predict w thruster failure: 1 wee!
Slide 27: Key strategies
For personal use only KEY STRATEGIES • Win the FFG‐X Program in USA to seal long term future. • OPV and Frigate role in Australia to underpin operations for decades. • Maintain and stretch leadership position in Fast Ferries worldwide. • Continue focus on sustainment growth for lower risk continuous
Slide 28: Disclaimer
DISCLAIMER David Singleton, Chief Executive Officer Telephone: +618 94101111 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 s