Slide 1: FY2015 results presentation
FY2015 results presentation For personal use only Andrew Bellamy, Chief Executive Officer 26 August 2015 Greg Jason, Chief Financial Officer
Slide 2: Highlights
Highlights For personal use only Record earnings: driven by multiple vessel programs Financial Revenue: $1.4 billion EBIT: $84.8 million ($73.2 million underlying) NPAT: $53.2 million ($45.0 million underlying) Net debt: $6.1 million Final dividend: 3.0 cents per share fully franked De
Slide 3: Record revenue driving performance
Record revenue driving performance For personal use only Revenue (A$m) EBITDA (A$m) NPAT (A$m) FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 1,122.9 1,414.9 79.3 109.1 31.9 53.2 Record revenue, with 26.0% increase over FY2014 driven by growing work on major navy defence and patrol boat programs and re
Slide 4: 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 5: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 5
Slide 6: Earnings summary
Earnings summary For personal use only Income FY2015 FY2014 Record Revenue, EBIT and NPAT Change statement (A$m)* (A$m)^ Underlying EBIT margin fell to 5.2% (FY2014: 5.8%) reflecting impact of LCS 6 Revenue 1,414.9 1,122.9 +26.0% – now delivered EBITDA 109.1 79.3 +37.5% Ability to grow Group e
Slide 7: Segment breakdown
Segment breakdown For personal use only ($m) Ships Systems Support Other1 Total Revenue 914.2 160.0 45.5 - 1,119.7 USA EBIT 59.6 2.0 4.3 (7.5) 58.4 EBIT Margin% 6.5 1.3 9.5 - 5.2 Revenue 171.2 - 40.6 - 211.8 Australia EBIT 26.3 - 5.7 (0.2) 31.8 EBIT Margin% 15.4 - 14.0 - 15.0 Revenue 29.3 - 9.4 - 38
Slide 8: Cash and debt
Cash and debt For personal use only Strong operating cash flow which was Cash flow FY2015 FY2014 Change enhanced by the sale of Hull 270 trimaran (A$m) (A$m) stock vessel Operating 110.4 41.6 68.8 Significant reduction in Net Debt Maintained low sustaining capital Investing (21.8) 19.0 (40.8)
Slide 9: Discipline in long-term debt reduction
Discipline in long-term debt reduction For personal use only 180 160 154 140 135 Gross debt ($millions) 120 114 112 100 80 60 40 20 4 1 0 0 0 Dec 2013 Jun 2014 Dec 2014 Jun 2015 AUD Denominated (AUD) USD Denominated (USD) SHIPS SYSTEMS SUPPORT 9
Slide 10: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 10
Slide 11: Order book
Order book For personal use only Order book of $3.1 billion secures revenue through CY2020, including: o 11 Littoral Combat Ships for US Navy 10 funded, with 1 delivered, funding expected in FY2016 for eleventh vessel o 10 Joint High Speed Vessels for US Navy Fully funded, with 5 delivered o 8 Cap
Slide 12: Progress across the business
Progress across the business For personal use only • Delivery of Cape • Delivery of Cape Jervis (CCPB 5) Leveque (CCPB 6) • Awarded LCS • Agreement finalised contract for class with General • Delivery of Cape • USNS Trenton services support Dynamics Bath Iron Wessel (CCPB 7) (JHSV 5) christened • US
Slide 13: 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 and additional 1 ship option Margin and schedule pressure on LCS 6, first in the block-buy contract. Austal implementing experience from LCS 6 to incrementally grow margin on s
Slide 14: 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 & 5 – delivered o JHSV 6 – l
Slide 15: Austal strongly positioned in US
Austal strongly positioned in US For personal use only Winning service contracts on Austal-built vessels have US Foreign Policy remains LCS and investing in support continued to be funded and focused on Asia-Pacific business to best position programs are maturing well defence strategy Austal for add
Slide 16: 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 Border Force (formerly Australian Customs and Border Protection Service) Program has matured significantly, delive
Slide 17: 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 is progressing well at Henderson shipyard o Completion of keel l
Slide 18: Australian defence shipbuilding
Australian defence shipbuilding For personal use only The Federal Government's plan for a strong and sustainable naval shipbuilding industry was announced 4 August 2015 Initiative Impact on Austal The Government will invest over A large, long-term order book of work available to naval shipbuilders
Slide 19: Australian defence shipbuilding
Australian defence shipbuilding For personal use only Initiative Impact on Austal Bringing forward the Future Frigate Variant of Austal’s LCS a potential platform for future frigate. programme to replace the ANZAC (Upgunned LCS soon to be classed as a frigate by US Navy) class frigates from 2023 to
Slide 20: Philippines
Philippines For personal use only Delivered two 45 metre high speed catamaran ferries to Abu Dhabi National Oil Company in August 2015 under a $30 million design and construct contract Completed customisation of Hull 270 and delivered wind farm vessel to Turbine Transfers Commenced constructio
Slide 21: Systems and Support
Systems and Support For personal use only Austal is steadily adding experience and capability to deliver a growing portfolio of Naval sustainment contracts US expanding activity beyond own vessels: o Prime contractor for Post Shakedown Availability (PSA) and other post delivery test and trial pr
Slide 22: Strategy and Outlook
Strategy and Outlook For personal use only SHIPS SYSTEMS SUPPORT 22
Slide 23: Strategy
Strategy For personal use only Sustain the Strengthen the Diversify the Scale the business business business business • Maintain current • Improve margins • Grow annuity-style • Position Austal for annual revenue in by driving revenue by building future Navy medium to long- efficiencies / on existin
Slide 24: Pipeline for vessel programs
Pipeline for vessel programs For personal use only Pursuing opportunities to deliver on strategy by growing Austal’s order book and securing additional long-term revenue Target markets Vessels • US: strong potential to extend existing • Future frigate evolved from modified LCS and JHSV programs Li
Slide 25: Outlook
Outlook For personal use only Margin improvement at US Best position Austal for operations as lessons learnt Good opportunity for award Pacific Patrol Boat from LCS 6 are applied – of additional LCS and JHSV replacement, Future Frigate, greatest effect to be on in addition to existing block and OPV,
Slide 26: 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