Austal Limited · ASX:ASB
Austal — Shareholder Meeting (October 2011)
19 slides from Austal's shareholder meeting presentation, Oct 20, 2011
Slide 1: 2011 Annual General Meeting
2011 Annual General Meeting October 21, 2011 For personal use only AUSTRALIA’S PRIME DEFENCE CONTRACTOR SHIPS SYSTEMS SUPPORT
Slide 2: Agenda
Agenda For personal use only • Results highlights and key events • Group financial summary • Current order backlog • U.S. Navy update • Strategy overview • Summary
Slide 3: Results highlights and key events
Results highlights and key events For personal use only AUD $M 2011 2010 Change Revenue 503.9 21.1 521.4 (3%) EBIT 19.8 4.7 51.2 (61%) Net profit after tax 8.521.9 cents 37.1 (41%) EPS 11.9 cents 20.3 cents (168%) Key events during the H2 2011 • Adverse macroeconomic conditions directly reflected in
Slide 4: Balance Sheet Review
Balance Sheet Review For personal use only AUD $M 2011 2010 Change Total Assets 674.6 648.1 4% Cash 42.3 29.0 46% Restricted cash 129.8 1.1 11,700% Inventories 177.9 275.3 (35%) Property, plant & equipment 208.3 217.7 (4%) Total Liabilities 400.4 378.8 6% Bank loans 9.1 41.4 (78%) Go Zone Bond 209.7
Slide 5: Austal USA
Austal USA (In USD) Austal USA For personal use only USD $M 2011 2010 Change Revenue 333.4 21.1 235.5 42% EBIT 19.7 4.7 20.9 (6%) EBIT % 8.56% cents 9% (14%) PBT 13.6 16.5 (18%) • Revenue growth reflects growth in activity levels at Austal USA (2 LCSs and 3 JHSVs under construction at June 2011) • E
Slide 6: Austal Australia (Excl. Service)
Austal Australia (Excl. Service) For personal use only AUD $M 2011 2010 Change Revenue 144.2 219.7 (34%) EBIT (8.0) 27.6 (129%) EBIT % (6%) 13% (143%) PBT (8.6) 27.1 (132%) • Substantial revenue and operating profit reduction results from the sustained adverse international market conditions • Austr
Slide 7: Service
Service Service For personal use only AUD $M 2011 2010 Change Revenue 15.7 41.6 0.0 (62%) EBIT 1.8 2.7 0.0 (33%) -100% EBIT % 11% 6% - 77% PBT 1.8 2.7 (33%) • Reduction in revenue results from the refocusing of the business on profitable contracts • Important part of future strategy to support LCS a
Slide 8: Vessels completed
Vessels completed For personal use only Leonora Christina Jean De la Valette Trinidad & Tobago Water Taxis Liberty & Perle Express
Slide 9: Current order backlog
CurrentUnder Over $1.2B Currently Order Contract Backlog approx $1.8B For personal use only • 1 X 35m Monohull ferry for Mary D Enterprises (New Caledonia) • 1 X 41m Catamaran ferry for Vale (New Caledonia) • 7 X 103m Joint High Speed Vessels for U.S. Navy • 3 X 127m Littoral Combat Ships for U.S. N
Slide 10: LCS Update
LCS Update For personal use only • LCS 4 Coronado 77% complete and on budget • LCS 6 design work is underway and fabrication will commence in February 2012 • LCS 8 will commence in September 2012 • Contractual dates for future awards lock in 2 awards per annum by 31 March for each year between 2012
Slide 11: JHSV update
JHSV update For personal use only • JHSV 1 launched in September, on time but behind budget • Lessons learned from first vessel applied to subsequent hulls with substantial cost improvements • JHSV 2 52% complete • JHSV 3 to 7 fully contracted, with construction of JHSV 3 underway • JHSV 8 & 9 to be
Slide 12: USA Facility Expansion
USA Facility Austal USA Expansion Expansion For personal use only
Slide 13: Strategy Overview
Strategy Overview For personal use only • Backdrop of high Australian dollar, weak European and U.S. economies and increasing competition for labour in Australia. • Strategic initiatives: Regionalise manufacturing capacity in Asia and potentially Europe Continue to develop new products for emerg
Slide 14: Strategic Initiatives: Regionalise Manufacturing
Strategic Initiatives For personal use only Regionalise Manufacturing Enables the Company to compete in specific segments of the international commercial vessel market where demand remains strong fast crew transfer boats work boats small ferries Austal has considerable intellectual propert
Slide 15: Strategic Initiatives: Product Development
Strategic Initiatives For personal use only Product Development Wind Express LNG powered ferries Multi-role vessels Medium speed vessels
Slide 16: Strategic Initiatives: Henderson - Defence Focus
Strategic Initiatives For personal use only Henderson - Defence Focus Review conducted in May 2011 Leverage prime contracting credentials Henderson operations to be focussed towards the manufacture and support of defence vessels Large commercial vessel capability retained Austal awarded Ca
Slide 17: Strategic Initiatives: Systems and Support
Strategic Initiatives For personal use only Systems and Support Leverage existing defence systems capabilities to pursue new opportunities Defence systems opportunities has potential to deliver significant recurrent income Submit tender for SEA 1442 – ANZAC Communications Upgrade Proposal Co
Slide 18: Strategic Initiatives: Adjacent Sectors
Strategic Initiatives For personal use only Adjacent Sectors Capitalise on local resources opportunities Utilise modular manufacturing skills, facilities and workforce Engineering and project management expertise Contract awarded in August 2011 to supply modular accommodation units for the r
Slide 19: Summary
For personal use only Summary • Transition year for Austal: • US operations are growing in accordance with plan and will deliver revenue in the order of US$550m in 2012 • Regionalising commercial manufacturing facilities • Henderson operations to focus on defence with CCPB as the lead order • System