Slide 1: Austin Engineering Ltd FY23 Financial Results
Austin Engineering Ltd FY23 Financial Results 28 August 2023 www.austineng.com First HPT truck body delivered to RTIO on a Komatsu Truck
Slide 2: Agenda
Agenda FY23 Key Financial Highlights About Austin Who we are Our 40-Year Journey What we do Where we operate Our recent customers Why we are different Our markets Financial Results Global Strategy Outlook and Guidance Sustainability Board & Management Team P2 Austin Engin
Slide 3: FY23 highlights (normalised)
FY23 highlights (normalised) Net Profit after Tax 20 Revenue Net debt 18.1 $258m $14m 18 16.7 16 Up 27% from FY22 Excl. lease liabilities Impact of Austin 2.0 14 EBITDA Operating Cashflow In million $ 12 $31m $15.8m 10 8.9 8.1 9.6 Up 10% from FY22 Up 236% from FY22 8 6 NPAT Order Book $18.1m $143.7m
Slide 4: Key financial highlights
Key financial highlights • Group revenue of $258.3 million, up 27% (FY22: $203.3 million) • Normalised EBITDA of $31.3 million, up 9.5% (FY22: $28.6 million) • Normalised NPAT of $18.1 million, up 8.4%, within guidance (FY22: $16.7 million) • Statutory NPAT of $7.1 million (FY22: 20.6 million) • Ope
Slide 5: Who we are
Who we are Austin supplies customised equipment to large global mining clients, mining contractors and original equipment manufacturers. Our innovative solutions maximise productivity and payload for our clients. 17 Locations across six continents, including partners. 40+ years 5 ~1211 Engineering a
Slide 6: Our 40-year journey
Our 40-year journey Brisbane, Australia Perth, Australia Casper, USA La Negra, Chile Batam, Indonesia Global Operation Worldwide Mackay, Australia Batam/La Negra 1982 2004 2007 2009 2011 2017 2022 2022 2023 Facility expansion Austin is founded Acquired JEC Acquired Westech Acquired Conymet Commenced
Slide 7: About Austin
About Austin P7 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 8: What we do
What we do We are an industrial business producing world class customised wear products for the mining industry Customised for ore Configured to fit OEM type & nature excavators, dippers, Designed to improve face shovels, etc. digging characteristics Optimised for weight carrying, mining configurati
Slide 9: Six truck tray types for different applications
Six truck tray types for different applications ULTIMA HPT WESTECH JEC-LD WESTECH PREMIER JEC P9 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 10: Leading range of mining buckets for many applications
Leading range of mining buckets for many applications P 10 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 11: What we do
What we do Tyre Handler Water Tank Ore Chute* *Ore Chutes are designed by Nordic Minesteel Technologies and built under licence for Freeport mine in Indonesia. P 11 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 12: Where we operate
Where we operate The major mining jurisdictions of the world are our home markets, currently covering circa 65% of global truck tray market. Batam Serves Asia and provides low-cost manufacture for APAC Wyoming Serves Powder River coal and hard rock in Arizona, Nevada and the broader USA Chile Austra
Slide 13: Why we are different
Why we are different • Austin is a world leader that has innovated products and the industry and has a strong brand in major markets. • Austin is an industrial business building standard product types with more reliable revenue and earnings outlook. Product Focused 85% • Austin has high IP levels bu
Slide 14: Why we are different
Why we are different • Austin is strategically located in the key mining areas of the world that are both accessible and have high product demand. Global Diversified • Most mines in the world transport ore from pit to process by truck. This drives demand for bodies and buckets. Diversification Reven
Slide 15: Our markets
Our markets • Current third party data suggests the world market for 100 tonne+ trucks is circa 20,000 in total. Austin estimates more than 3,000 replacement truck trays and 500 buckets are currently required p.a. Global ~18% • Austin is the world brand leader for truck trays, but a market share est
Slide 16: Financial Results
Financial Results David Bonomini, Chief Financial Officer P 16 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 17: Financial Performance: (Continuing Operations)
Analysis of Financial Results Financial Performance: (Continuing Operations) 12 months ending (Normalised) FY23* FY22* VAR % • Revenue up 27% to $258.3 million and up 11% on a like- Revenue $M 258.3 203.3 27% for-like (LFL) basis, with Austin’s 2.0 business strategy EBITDA $M 31.3 28.6 10% driving h
Slide 18: Operating cashflow improves to $15.8 million
Analysis of Financial Results Operating cashflow improves to $15.8 million • Cash steady at $20 million. • Cash from operating activities improved $16 million over past 12 months. • $9.0 million working capital outflow due to inventory. • $8.7 million capital investment in the period for Indonesia,
Slide 19: Balance Sheet and Other Items
Analysis of Financial Results Balance Sheet and Other Items Working Capital $M FY23 FY22 Work-in-progress 20.6 20.5 • Zero Work in Progress maintained, with Raw materials 47.8 19.5 customer advance payments of $19.2 million, Finished goods 0.4 0.4 offsetting working in progress inventory of $20.6 mi
Slide 20: Balance Sheet and Other Items
Analysis of Financial Results Balance Sheet and Other Items Net Debt • Total Assets up by $47 million due to: $M FY23 FY22 • Inventory increase of $28.7 million from the build-up of steel inventory during pandemic and induced shipping issues at the time. Inventory is anticipated to reduce as the saf
Slide 21: Sector Analysis: Asia-Pacific
Analysis of Financial Results Asia-Pacific FY2023 FY2022 FY2021 Sector Analysis Revenue $M 141.9 107.5 138.3 Austin Indonesia Austin Australia (Perth) • Indonesian operation continues to perform well and is Austin Mainetec providing high quality capacity to meet growing demand in • Mainetec acquisit
Slide 22: Sector Analysis: North America
Analysis of Financial Results North America FY2023 FY2022 FY2021 Sector Analysis Revenue $M 75.3 66.7 35.7 The North American business has continued to improve strongly following significant improvements to competitiveness, production efficiency and a strategic market focus with revenue up 13% yoy
Slide 23: Sector Analysis: South America
Analysis of Financial Results South America FY2023 FY2022 FY2021 Sector Analysis Revenue $M 41.1 29.2 24.1 Operational efficiency improvements implemented from 2021 have continued to ensure that Austin Chile remains profitable and has driven a higher order success rate. Revenue was up 41% yoy. A
Slide 24: Global Strategy
Global Strategy David Singleton, Chief Executive Officer and Managing Director P 24 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 25: Austin 2.0 global strategy launched July 2021
Austin 2.0 global strategy launched July 2021 Global strategy remains unchanged and is delivering major benefits to revenue and margins. Product Leadership 3 Manufacturing Leadership 2 1 Cost Leadership P 25 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 26: Austin has 89% of revenue from repeat customers
Austin has 89% of revenue from repeat customers 11% • Austin delivers customised mining equipment to most of the world’s biggest miners. • Austin has long term supply agreements with many major mining companies in every one of its operating regions. 33% 56% • Austin continuously develops its product
Slide 27: Core product diversity mix is improving aided by Mainetec
Core product diversity mix is improving aided by Mainetec 13% • Increased focus on mining buckets and other products has increased the share from 16% to 29% of revenue. FY23 • Bucket and other products have grown in 29% $258m 58% revenue terms by ~240% and are expected to grow substantially in FY24.
Slide 28: Customers include many of the industry 'blue chips'
Customers include many of the industry ‘blue chips’ Customer map showing major orders over the last 12 months. P 28 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 29: Global strategy is working and driving PWin
Global strategy is working and driving PWin Cost base reduction has helped drive BU margins 3 • Overheads have stabilised whilst revenue has risen. • Mainetec cost base reduced through support integration. • Further regional optimisation is planned particularly in ‘back office’. 2 1 Labour availabil
Slide 30: Manufacturing strategy is increasingly driving benefits
Manufacturing strategy is increasingly driving benefits 3 Austin 2.0 ‘Hub & Spoke’ manufacturing strategy continues to mature • Batam business grew by 51% in FY23 with further revenue growth expected in FY24. • Batam to near double truck tray monthly build capacity by end H1 FY24. • Truck tray sub-a
Slide 31: Investment in products has generated rapid returns
Investment in products has generated rapid returns HPT truck tray launched with over ~150 committed already 3 • Customers are switching to the new HPT lightweight trays. • Customer interest is high and substantial numbers of new HPT trays expected to be sold this year. • Austin now has six different
Slide 32: Outlook & Guidance
Outlook & Guidance P 32 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 33: FY23 Market Guidance
FY23 Market Guidance • Market dynamics remain strong with electrification metals and energy certainty substituting for lower industrial production caused by deflationary action. • Austin’s international footprint and investment in increasing production capacity to meet growing customer demand has gi
Slide 34: H1/H2 revenue split has historically been in the ratio 40/60
H1/H2 revenue split has historically been in the ratio 40/60 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $- FY20 FY21 FY22 FY23 Average revenue seasonality of 43/57 H1/H2 driven by buying patterns of certain major customers regionally that reorder at the end of the CY H1 H2 P 34 Austi
Slide 35: Sustainability
Sustainability P 35 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 36: Safety performance remains well ahead of industry rates
Safety performance remains well ahead of industry rates LTIFR TRIFR 18 8 8 7.3 15.7 16 7 7 14 12.9 12.7 12.8 6 6 12 5 5 5 10 4 4 8 7.1 3 3 6 2 1.6 1.7 2 4 1 1 2 0.5 0 0 0 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Lost Time Injury Frequency Rate (LTIFR) *FMPM Total Recorda
Slide 37: Sustainability
Sustainability Social Safety, Health and Wellbeing Communities • Marked the first full year of the ‘Buckets, Bodies and Benefits’ (BBB) reward and • Continued to support local employment, sourcing more than 80% of our workforce recognition program. from communities near to our global manufacturing b
Slide 38: Sustainability
Sustainability People Environment Headcount Austin is committed to operating in a manner that acknowledges and proactively manages the issues most material to the long-term sustainability of its business, the 1400 environment, and the communities in which it operates. This commitment is driven by 12
Slide 39: Board and Management
Board and Management P 39 Austin Engineering Limited FY23 Final Financial Results www.austineng.com
Slide 40: Board of Directors
Board of Directors JIM WALKER CHRIS INDERMAUR SY VAN DYK DAVID SINGLETON LINDA O’FARRELL NON-EXECUTIVE CHAIRMAN INDEPENDENT NON- INDEPENDENT NON-EXECUTIVE CHIEF EXECUTIVE OFFICER AND INDEPENDENT NON-EXECUTIVE EXECUTIVE DIRECTOR DIRECTOR MANAGING DIRECTOR DIRECTOR P 40 Austin Engineering Limited FY23
Slide 41: Executive Management
Executive Management DAVID SINGLETON VINCENT D’ROZARIO KATINA NADEBAUM DAVID BONOMINI KIRSTEN CADLE BRAD HIGGINS KYM CRAMER CHIEF EXECUTIVE OFFICER & CHIEF OPERATING OFFICER COMPANY SECRETARY CHIEF FINANCIAL OFFICER GENERAL COUNSEL GM SALES APAC & EMEA GLOBAL HEAD OF MANAGING DIRECTOR SUSTAINABILITY
Slide 42: Important Information
Important Information This presentation has been prepared by Austin Engineering Limited (ABN 60 078 480 136) (“Austin” or the “Company”). The information in this presentation should be read in conjunction with Austin’s continuous disclosure announcements. The information is of a general nature and h
Slide 43: design matters | austineng.com
design matters | austineng.com www.austineng.com