Austal Limited · ASX:ASB
Austal — Investor Presentation (April 2019)
53 slides from Austal's investor presentation, Apr 10, 2019
Slide 1: Welcome to Vung Tau and Austal Vietnam
Well firstly it is my great pleasure to welcome you all to Vung Tau and Austal Vietnam. I have prepared a short presentation that I hope will inform you as to why we have such strong convictions that Austal Vietnam has a significant role to play in the future of our company. 1
Slide 2: Key benefits of doing business in Vung Tau
Today I will touch on some of the key benefits of doing business in Vung Tau. 2
Slide 3: Skilled workforce and employee growth
• One of the big attractions in Vietnam is the availability of skilled resources with a can do attitude and tremendous work ethic. • We have a fantastic workforce which never cease to amaze me with their ability to get the job done. • As of this Monday we have 233 employees and graduates working for
Slide 4: Immediate neighbours and waterfront engineering capability
This slide shows our immediate neighbours Sofel, SMV and Vard and other waterfront engineering capability such as Vina Offshore and DXP. DXP is of particular interest as we have an agreed schedule of rates with them and this provides us with Sustainment opportunities. 4
Slide 5: Neighbouring SMV and our small efficient footprint
Next door is SMV where I spent from 2013 – 2018 along with most of our current Management team Our footprint is small by comparison but we are efficient and when you lease by the m2 you need to sweat the capital. 5
Slide 6: Current shipbuilding capability
As things stand currently our shipbuilding capability is as follows 6
Slide 7: Senior management experience in aluminium shipbuilding
The key point is that while Austal is relatively new to Vietnam our Senior Management have significant experience with Aluminium and Shipbuilding in Vung Tau, which is a real point of difference from other start up operations. 7
Slide 8: Vessels built at SMV
VESSELS BUILTATSMV @ ah vn __ Es earn Te) We a 27MWESV - ALUMINIUM W/JETS, POOS, CPP 42M _FCB’S -STEEL/ ALI - TRIPLE ORIVE LINE 26 - 30 KNTS 2x 42 M RojPax =AL| se
Slide 9: 9
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Slide 10: Notes contained within the slide
Notes contained with in the slide. 10
Slide 11: Vung Tau lifestyle for expats
A great advantage to Vung Tau is that is a vibrant city in which Expats and their families can enjoy a comfortable and varied lifestyle. Vietnamese are very focussed on a healthy lifestyle and there is an abundance of sporting opportunities and Gyms. The food is fantastic, both Asian and Western, th
Slide 12: Vendor support within Vietnam
Since the start-up of Austal Vietnam Co., Ltd, the support from vendors within Vietnam has been encouraging and strong relationships have been established. One of the most encouraging aspects has been from day one vendors from length and breadth of Vietnam have been approaching us to provide service
Slide 13: Vung Tau oil and gas hub and LNG regasification
Vung Tau is a well established Oil and Gas Hub with existing LPG storage capability. Planning and investment is now well underway for the development of an LNG Regasification Plant which will ensure LNG vessels built in Vung tau will be able to be commissioned and delivered ex yard. 13
Slide 14: Progress since the start with Minh Viet EC
We have come quite a long way in a relatively short time and this is where it all began with the help of one of our Sub contractors, Minh Viet EC. 14
Slide 15: Time at Minh Viet EC before moving to DXP
We were at Minh Viet EC, which is about 1 km from where we are today, from the end of February 2018 until we moved to DXP at the end of October. In this time we built our workforce in preparation for our first project while supporting Austal Philippines with Units for Hull 419. 15
Slide 16: DXP delivering the first shed
There was some healthy scepticism from within when DXP promised they could deliver on the first shed in four months from Contract Signing but we learnt a great about our Landlord over the coming months, all of it positive. 16
Slide 17: Visual progress slides without commentary
The following slides will have no commentary but are of interest to provide a visual demonstration of what was achieved. I will also note that while it is not that evident from the photos, this fell through the rainy season and when it rains in Vietnam it really rains. 17
Slide 18: Date - 18/7/2018
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 18/7/2018 h AUSTAL 18
Slide 19: Date - 21/7/2018
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 21/7/2018 19
Slide 20: Date - 29/7/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 29/7/18 20
Slide 21: Date - 4/8/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 4/8/18 N — AUSTAL 21
Slide 22: Date - 11/8/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 11/8/18 N — AUSTAL 22
Slide 23: Date - 18/8/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 18/8/18 N — AUSTAL 23
Slide 24: Date - 25/8/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 25/8/18 N AUSTAL 24
Slide 25: Date - 27/8/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 27/8/18 —— — AUSTAL 25
Slide 26: Date - 1/9/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 1/9/18 26
Slide 27: Date - 4/9/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 4/9/18 AUSTAL 27
Slide 28: Date - 12/9/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam h AUSTAL Date - 12/9/18 DRAFT 28
Slide 29: Date - 12/9/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 12/9/18 —— — AUSTAL 29
Slide 30: Date - 14/9/18
30 Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 14/9/18 A ANIBE Sk
Slide 31: Date - 18/9/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 18/9/18 AUSTAL 31
Slide 32: Date - 19/9/18
32 Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 19/9/18 Ae ail ow Bo Mek
Slide 33: Date - 20/9/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 20/9/18 a,” Vinny? tim! 4 33
Slide 34: Date - 21/9/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -21/9/18 —_—_ —— — AUSTAL 34
Slide 35: Date - 27/9/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -27/9/18 N — AUSTAL 35
Slide 36: Date - 3/10/18
36 Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -3/10/18 ===: st
Slide 37: Date - 5/10/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -5/10/18 NN (il TT N — AUSTAL 37
Slide 38: Date - 11/10/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -11/10/18 38
Slide 39: Date - 19/10/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -19/10/18 —— — AUSTAL 39
Slide 40: Date - 29/10/18 Stage Handover
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -29/10/18 Stage 1 Handover N — AUSTAL 40
Slide 41: Date - 6/11/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -6/11/18 AUSTAL 41
Slide 42: Date - 14/11/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -14/11/18 N — AUSTAL 42
Slide 43: Date - 1/12/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -1/12/18 N — AUSTAL 43
Slide 44: Date - 13/12/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -13/12/18 AUSTAL 44
Slide 45: Date - 19/12/18
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -19/12/18 ~ AUSTAL 45
Slide 46: Date - 2/1/19
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -2/1/19 AUSTAL 46
Slide 47: Date - 8/1/19
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date - 8/1/19 N — AUSTAL 47
Slide 48: Date - 17/1/19
Austal Vietnam - Location, Dong Xuyen Port, Vietnam Date -17/1/1 (Wilh ‘il | A fe , rie <] 48
Slide 49: Visit by Ba Ria Vung Tau Province Council delegation
In September 2019 we were visited by a prominent parliamentary delegation from the Ba Ria Vung Tau Province Council. 49
Slide 50: Capex to date and 2020 outlook
To date we have not expended overly significant CAPEX and the outlook for 2020 remains modest. This is of course subject to order book pressure. 50
Slide 51: Preliminary expansion costs for concurrent build
We have recently requested preliminary cost for expansion required to enable a potential contract to be built concurrently with the current build and the figures are as shown. We are still waiting on an estimate for a Jetty facility at this stage. 51
Slide 52: Wrap up: first 94 metre project and outlook
So to wrap up our first Project at 94 meters is undoubtedly a challenge but I hope you will be suitably impressed with what we have achieved to date and come away with confidence that we are up to that challenge and share our optimism for an extremely bright future here in Vietnam. 52
Slide 53: Disclaimer
Disclaimer David Singleton, Chief Executive Officer Telephone: +618 9410 1111 For further information visit www.austal.com Disclaim 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 sub