Slide 1: FY16 Results Presentation
Austin Engineering Ltd For personal use only FY16 Results Presentation
Slide 2: Contents
For personal use only Contents 1. Summary pg 3 2. FY16 Results pg 7 3. Strategic Refocus pg 12 4. Capital Management pg 13 5. Outlook pg 17 2
Slide 3: Summary – Highlights
Summary – Highlights 1. Austin generated Sales Revenue of $209.8m and Normalised EBITDA of $9.2m in FY16, including COR Cooling For personal use only – Normalised EBITDA was within the guidance range of $8m to $12m, with Austin and peers experiencing difficult industry conditions throughout the year
Slide 4: Summary – Highlights
Summary – Highlights 4. Appointed Mr Charles Rottier as Interim Chief Executive Officer – While progress is being made with the CEO recruitment process the Company is For personal use only progressing with the implementation of the strategic review initiatives approved by the Board 5. Substantially
Slide 5: Summary – Results
Summary – Results • Normalised EBITDA guidance range of $8m to $12m met for FY16 – $9.2m achieved for FY16 For personal use only • Austin’s revenues were in line with the previous year, however the product mix and market conditions dictated lower margins that has resulted in the reductions at EBITDA
Slide 6: Summary – Normalisations
Summary – Normalisations Reported results lower than normalised results due to non-recurring unusual items and impairments of intangibles taken in the period For personal use only EBITDA NPAT $m $m Reported Results (30.1) (40.5) (1) Restructuring Costs 28.2 19.7 - Cash 7.2 5.0 - Non-cash 21.0 14.7 (
Slide 7: FY16 Results – Segments
For personal use only FY16 Results – Segments FY15 FY16 Annual $m $m % Change Revenue: Australia 106.8 113.8 7% Americas 87.5 89.7 3% Asia (Indonesia) 16.1 6.3 -61% 210.4 209.8 0% Normalised EBITDA*: Australia 2.0 3.6 85% Americas 7.2 5.3 -27% Asia (Indonesia) 5.8 0.3 -95% 15.0 9.2 -39% EBITDA % Mar
Slide 8: FY16 Results – Operational Review
FY16 Results – Operational Review For personal use only Australia: • Overall mine production levels remain at consistent levels but clients continue to choose repair over major capital replacement programs • East Coast operations results reflect continuing difficult market conditions in the coal ind
Slide 9: FY16 Results – Operational Review
FY16 Results – Operational Review Americas: For personal use only • The La Negra operation has a base loading with the long-term Collahausi contract but other manufacturing remains subdued due to the copper price • The Calama maintenance operation continued with the long term contracts it has on han
Slide 10: FY16 Results – Operational Review
FY16 Results – Operational Review Americas (con’t): For personal use only • The Colombian operation reported an improved result based on an onsite/offsite maintenance/repair contract and a small number of manufacturing orders • The Peru operation produced an improved and positive result, due to the
Slide 11: FY16 Results – Improvements in Long Term Injury Frequency Rate (LTIFR)
FY16 Results – Improvements in Long Term Injury Frequency Rate (LTIFR) For personal use only • LTIFR reduced from 2.92 to 2.75 from the prior year. 11
Slide 12: Strategic Refocus – Update
Strategic Refocus – Update . Initiatives Next Six Category For personal use only Underway Months 1. Safety - Capture - Rollout of new initiatives - Systemise 2. Engineering excellence - Integrate main Aust and USA - Global engineering structure centres with South America - Training programmes 3. Opt
Slide 13: Capital Management – Net Debt
Capital Management – Net Debt For personal use only • Net Debt reduced by c. $54m to c. $40m over the last 12 months • Extinguishment of surplus bank guarantees likely during 1H FY17 which would release cash cover 13
Slide 14: Capital Management – Reduction in Working Capital
Capital Management – Reduction in Working Capital For personal use only Jun-15 Jun-16 Change $m $m $m Receivables 34.9 29.4 (5.5) Payables 37.7 36.5 (1.2) Inventories 25.0 15.8 (9.2) Total 22.2 8.7 (13.5) • Working capital has reduced as part of efficient cash management strategies and tighter contr
Slide 15: Capital Management – Asset Sales
Capital Management – Asset Sales • Austin has a substantial portfolio of property assets, leasehold improvements and For personal use only equipment ‒ Carrying value of $113.2m • Austin has been progressing the sale of certain of these assets • Austin has reached agreement in respect of the followin
Slide 16: Capital Management – Finalisation of Senior Debt Refinancing
Capital Management – Finalisation of Senior Debt Refinancing • Austin provided proceeds available from the entitlement offer to the senior lenders to apply For personal use only against loan facilities following settlement of the recent capital raising on 30 June 2016 • The Company is working throug
Slide 17: Outlook – Overview
Outlook – Overview • Austin enters FY17 with similar market challenges experienced in FY16 but with optimism For personal use only based on orders received that the replacement cycle is drawing nearer as time moves on • Several sites have encouraging order and tender book profiles, which are expecte
Slide 18: Outlook – Order Book & Recent Contract Wins
Outlook – Order Book & Recent Contract Wins Austin has recently secured a number of new contract wins and orders. These are encouraging For personal use only signs for FY17 profitability Americas: • Westech commences FY17 with an order book consisting of 10 x Westech bodies, 2 x Water Tanks and some
Slide 19: Outlook – Order Book & Recent Contract Wins
Outlook – Order Book & Recent Contract Wins Australia: For personal use only • East Coast operations have orders in the system for 2 x buckets for a client in Queensland, 9 x bodies for NSW clients, onsite R&M work for three sites in NSW, an off-site body repair contract plus major tenders for multi
Slide 20: Appendix
For personal use only APPENDIX
Slide 21: Austin's Principal Products
For personal use only Austin’s Principal Products Off-highway Buckets Water tanks Service modules dump truck bodies Tyre handlers Ancillary attachments
Slide 22: Austin Principal Services
For personal use only Austin Principal Services Engineering Specialised Painting and supported fabrication blasting equipment repair and maintenance Specialised Engineering supported On-site machining and maintenance and shutdown services line boring
Slide 23: Austin Brands
Austin Brands The Austin Engineering brand encompasses design and manufacture of mining and For personal use only earthmoving equipment, along with the provision of support services, from four Australian operations (Brisbane, Hunter Valley, Mackay, Perth), an Indonesian operation and Peruvian operat