Slide 1: H1 FY14 results presentation
H1 FY14 results presentation For personal use only Andrew Bellamy, Chief Executive Officer 27 February 2014 Greg Jason, Chief Financial Officer
Slide 2: Highlights
Highlights For personal use only Revenue: $507.6m, a 30.4% increase on H1 FY13 Financial NPAT: $9.5m, a 76.4% uplift on H1 FY13 Net Debt: Reduced by $32.8 million H1 FY13 to $113.7m Cash flow: Strong conversion of earnings to cash – $37.8m cash flow from operating activities Group EBIT mar
Slide 3: Delivered on record amount of work in hand
Delivered on record amount of work in hand For personal use only Revenue ($m) EBITDA ($m) NPAT ($m) H1 FY13 H1 FY14 H1 FY13 H1 FY14 H1 FY13 H1 FY14 389.4 507.6 24.0 30.7 5.4 9.5 Ongoing improvement in earnings and revenue from H1 FY13 to H1 FY14 Revenue growth driven by record amount of work in
Slide 4: Objectives for sustained growth
Objectives for sustained growth For personal use only Restructure Improve Ongoing Pursue balance operations delivery opportunities sheet • Simplified debt • Achieved targeted • Management • Continue to target structure +6% EBIT margin stable and cost opportunities for at US operation structures addi
Slide 5: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 5
Slide 6: Earnings summary
Earnings summary For personal use only Underlying EBITDA was $37.7m (H1 FY13: H1 H1 Profit & Increase $28.4m) after removing one off impacts: FY14 FY13 Loss ($m) ($m) ($m) o $3.3m profit on sale of land at Henderson Revenue 507.6 389.4 118.2 o $10.2m WIP write down US: EBIT margin improved from
Slide 7: Significant progress in debt reduction
Significant progress in debt reduction For personal use only Cash generated from operating activities 30 Jun 13 31 Dec 13 300 2.50 was used to reduce Net Debt by $32.8m 2.23 Higher EBITDA and lower Net Debt has 250 significantly reduced the Leverage ratio 2.00 Proceeds from the sale of the sat
Slide 8: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 8
Slide 9: Ongoing progress across the business
Ongoing progress across the business For personal use only • Agreement to sell surplus facility at Henderson for • JHSV 1 successfully $21 million • Keel laid on third Cape completed US Navy • Delivered 80 metre Class vessel operational testing and commercial ferry • New wind farm vessel evaluation
Slide 10: Order book
Order book For personal use only Order book of $2.4 billion secures revenue until CY18, including: o Littoral Combat Ships for US Navy x6 funded (out of 10 vessel contract) o Joint High Speed Vessels for US Navy Fully funded, with x2 delivered (out of 10 vessel contract). o Cape Class Patrol Boats
Slide 11: US – Littoral Combat Ship
US – Littoral Combat Ship For personal use only 10 ship contract awarded as prime contractor, worth US$3.5 billion. o 6 fully funded o Funding for two more (LCS 18 & 20) expected by end March 2014, final two in Q3 FY15. 2 LCS constructed and delivered by Austal for GD (LCS 2 and LCS 4). Progra
Slide 12: US – Joint High Speed Vessel
US – 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 CY17 Maturing program progressing well: o JHSV 1 & 2 – delivered. o JHSV 3 – completed acceptance trials o JHSV 4 – launched o JHSV 5 & 6 – under construct
Slide 13: Austal's position in the US remains strong
Austal’s position in the US remains strong For personal use only Austal-built LCS program vessels have expected to Additional continued to be continue beyond opportunities for US Foreign funded. current block through-life Policy remains contracts – support on LCS focused on Asia- speed and and JHSV,
Slide 14: Australia
Australia For personal use only $330 million contract for 8 Cape Class Patrol Boats, including $50 million support work – through to H1 FY16. CCPB program maturing with 6 vessels under construction Efficiency improvements expected to increase margins in H2 FY14 Targeting export opportunities
Slide 15: Philippines
Philippines For personal use only Delivered 80 metre commercial ferry in December 2013 Ongoing technology transfer to improve competitive position Working capital largely retired Demand for commercial ferries remains subdued Pursuing further opportunities in wind farm and oil & gas vessel
Slide 16: Outlook
Outlook For personal use only SHIPS SYSTEMS SUPPORT 16
Slide 17: Strategy
Strategy For personal use only United States Australia Philippines • Progressive growth in • Further increase efficiencies • Continue to build commercial margins as vessel programs on Cape Class Patrol Boats, shipbuilding capability to mature following first-in-class vessel position Austal for marke
Slide 18: Outlook
Outlook For personal use only Use strong cash flow from Continue progressive operations and complete Meet guidance of $1 billion growth in profit margins, sale of stock boat to pay revenue in FY14 augmented by an increase down infrastructure-related in service and systems work debt Research and deve
Slide 19: 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