Austal Limited · ASX:ASB
Austal — H1 FY2015 Earnings Presentation
25 slides from Austal's earnings presentation, Feb 26, 2015
Slide 1: Austal Limited FY2015 H1
Austal Limited FY2015 H1 For personal use only Andrew Bellamy, Chief Executive Officer 26 February 2015 Greg Jason, Chief Financial Officer
Slide 2: Highlights
Highlights For personal use only Revenue: $680.2 million Financial EBIT: $45.0 million ($33.7 million underlying) NPAT: $28.9 million ($21.0 million underlying) Cash: $118.0 million of operating cash flow with net cash position of $15.6 million at 31 December 2014 Dividend: Interim dividen
Slide 3: Objectives for sustained growth
Objectives for sustained growth For personal use only Strengthen Ongoing Target operations and objectives opportunities balance sheet • Shipbuilding margin • Maintain cash • Invest in R&D to grow achieved generation to support intellectual property programs and dividends base • Successfully applied
Slide 4: Revenue and earnings growth
Revenue and earnings growth For personal use only Revenue (A$m) EBITDA (A$m) NPAT (A$m) H1 H1 H1 H1 H1 H1 H1 H1 H1 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 389.4 505.8 680.2 24.0 30.7 56.2 5.4 9.5 28.9 On track to meet revenue guidance of $1.2 billion FY2015 H1 earnings inc
Slide 5: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 5
Slide 6: Earnings summary
Earnings summary For personal use only H1 H1 H1 Income FY2015 FY2014 FY2013 statement Record revenue grew 34% over Prior (A$m) (A$m) (A$m) Corresponding Period driven by increased Revenue 680.2 505.8 389.4 production throughput and favourable foreign exchange translation of USA and Philippines EBI
Slide 7: Foreign exchange considerations
Foreign exchange considerations For personal use only Appreciation of the USD increases competitiveness Competitiveness Reduces the cost of foreign inputs in the USA for future contracts Reduces price of Australian exports Austal hedges 100% of committed foreign currency exposures Hedging po
Slide 8: Cash and debt
Cash and debt For personal use only FY2015 FY2014 FY2013 Cash flow H1 H1 H1 Operating cash flow was 170% higher than the (A$m) (A$m) (A$m) PCP Operating 118.0 43.6 (20.9) Finalisation of the sale of Hull 270 contributed $54.1 million to operating cash flow Investing (3.6) (2.0) (6.6) Significa
Slide 9: Discipline in long-term debt reduction
Discipline in long-term debt reduction For personal use only 250 211 200 Gross debt ($millions) 154 150 135 114 100 50 9 4 1 0 0 Jun 2013 Dec 2013 Jun 2014 Dec 2014 AUD Denominated (AUD) USD Denominated (USD) SHIPS SYSTEMS SUPPORT 9
Slide 10: Segment breakdown
Segment breakdown For personal use only ($m) Ships Systems Support Other1 Total Revenue 400.8 80.4 17.2 - 498.4 USA EBIT 31.4 1.2 (1.6) (3.6) 27.4 EBIT Margin% 7.8 1.5 (9.7) - 5.5 Revenue 87.8 - 22.2 - 110.0 Australia EBIT 11.8 - 2.9 (0.2) 14.5 EBIT Margin% 13.4 - 13.1 - 13.2 Revenue 14.9 - 5.4 - 20
Slide 11: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 11
Slide 12: Order book
Order book For personal use only Order book of $2.6 billion as at 31 December 2014 secures revenue through CY2018, including: o 10 Littoral Combat Ships for US Navy 8 funded (out of 10 vessel contract) o 10 Joint High Speed Vessels for US Navy Fully funded, with 4 delivered (out of 10 vessel contr
Slide 13: Progress across the business
Progress across the business For personal use only • Cape Nelson (CCPB 3) • USNS Fall River delivered to the (JHSV 4) completes Australian Customs acceptance trials and Border Protection ahead of delivery Service • USS Montgomery • USNS Trenton • Keel laid on Cape • USNS Fall River (LCS 8) christene
Slide 14: US Navy – Littoral Combat Ship
US Navy – Littoral Combat Ship For personal use only 10 ship contract awarded as prime contractor, worth US$3.5 billion – 8 fully funded, with at least 1 more expected to be funded in CY2015 Q1 2 LCS constructed and delivered by Austal for GD (LCS 2 and LCS 4) Program maturing o LCS 6 launched
Slide 15: US Navy – Joint High Speed Vessel
US Navy – Joint High Speed Vessel For personal use only 10 ship award to Austal valued at US$1.6 billion (fully funded), securing work through to CY2017 Program progressing well – matured into a phase of efficient production and predictable delivery o JHSV 1, 2, 3 & 4 – delivered o JHSV 5 christ
Slide 16: Austal strongly positioned in US
Austal strongly positioned in US For personal use only Austal-built vessels have US Foreign Policy remains Additional opportunities for continued to be funded and focused on Asia-Pacific through-life support on LCS programs are maturing well defence strategy and JHSV continue to develop LCS and futu
Slide 17: Australia – Cape Class Patrol Boats
Australia – Cape Class Patrol Boats For personal use only $330 million contract for the design, construction and through-life support of 8 Cape Class Patrol Boats for the Australian Customs and Border Protection Service Program has matured significantly, with efficient productions driving margin
Slide 18: Australia – High Speed Support Vessels
Australia – High Speed Support Vessels For personal use only US$124.9 million contract for the design, construction and integrated logistics support of two 72 metre High Speed Support Vessels for the Royal Navy of Oman Construction has commenced at Henderson shipyard o Completion of keel laying
Slide 19: Philippines
Philippines For personal use only $30 million contract from the Abu Dhabi National Oil Company to design and construct two 45 metre high speed catamaran ferries o Construction has commenced with delivery expected in CY2015 Contract for customisation of Hull 270 worth approximately $6 million 2
Slide 20: Systems and Support
Systems and Support For personal use only Austal has established a global footprint, strategic partnerships and the IP to provide through life support for defence vessels Australian support business delivering consistent performance US support business growing but ongoing investment needed o P
Slide 21: Outlook
Outlook For personal use only SHIPS SYSTEMS SUPPORT 21
Slide 22: Strategy
Strategy For personal use only United States Australia Philippines • Leverage off learning from • Maturing of Cape Class • Build commercial shipbuilding first in class vessels Patrol Boat program capability to position Austal for market opportunities • Augment contracts with • Target construction an
Slide 23: Pipeline for vessel programs
Pipeline for vessel programs For personal use only Pursuing opportunities to grow order book and secure additional long-term revenue Target markets Vessels • US: potential to extend existing LCS and • Future frigate evolved from modified JHSV programs Littoral Combat Ship • Australia: replacement
Slide 24: Outlook
Outlook For personal use only Diversity and long-term Focus on ship construction nature of vessel programs $1.2bn revenue guidance profit margins, augmented provides visibility on for FY2015 by an increase in support earnings and strong cash work outlook Pursuing variant-style Research and developme
Slide 25: 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