Austin Engineering Limited · ASX:ANG
Austin Engineering — Investor Presentation (February 2024)
26 slides from Austin Engineering's investor presentation, Feb 27, 2024
Slide 1: Austin Engineering Ltd H1 FY24 Interim Financial Results
Austin Engineering Ltd H1 FY24 Interim Financial Results P1 www.austineng.com
Slide 2: Agenda
Agenda • Interim Results Overview • About Austin • Financial Results H1 FY24 • Who we are • H1 FY24 Highlights • Our 40-Year Journey • Financial Results • Sector analysis • Global Strategy • Outlook and Guidance P2 www.austineng.com
Slide 3: Financial Results H1 FY24
Financial Results H1 FY24 Austin 2.0 is now delivering outstanding results that set a new performance benchmark • Revenue up 26% to $143.6 million • EBITDA up 70% to $20.8 million • NPAT up 2.8 times to $15 million • Operating cashflow $6.9 million • Net debt of $11.4 million, on track to be debt fr
Slide 4: Who we are
Who we are Austin designs and manufactures customised dump truck bodies, buckets, water tanks, tyre handlers, and other ancillary products used in the mining industry. Austin’s products deliver high returns on investment to customers through performance enhancement compared with OEM products. Austin
Slide 5: H1 FY24 Highlights
H1 FY24 Highlights Strong, annual revenue and margin growth Revenue Order Book $143.6m $184m 20.8 25 Up 26% from $114m in PCP Up 16% 20 EBITDA* Operating Cashflow Impact of Austin 2.0 $20.8m $6.9m 15 12.2 EBITDA Up 70% from $12.2m in PCP 10 $M 10 6.3 Net Debt NPAT* 5.4 4.7 5 $11.4m $15m 3.3 0.7 Incl
Slide 6: Our 40-year journey - business delivering globally
Our 40-year journey - business delivering globally Brisbane, Australia Perth, Australia Casper, USA La Negra, Chile Batam, Indonesia Global Operation Worldwide Mackay, Australia Batam and La Negra 1982 2004 2007 2009 2011 2017 2022 2022 2023 Facility expansion Austin is founded Acquired JEC Acquired
Slide 7: Financial Results
Financial Results David Bonomini, Chief Financial Officer P7 Austin Engineering Limited FY24 Interim Financial Results www.austineng.com
Slide 8: Financial Performance
Analysis of Financial Results Financial Performance 6 months ending 1H24* 1H23* VAR % Revenue $M 143.6 114.1 26% EBITDA $M 20.8 12.2 70% EBITDA margin % 14.5% 10.7% 35% Depreciation and amortisation $M (4.0) (3.0) 33% • D&A expense increase due to prior year facility investment and deprecia
Slide 9: Full year revenue on a strong upward trajectory
Full year revenue on a strong upward trajectory and projected to reach multi-year record as expansion programs deliver 350 320 300 • Revenue up 24% driven by order book growth across the business and enabled by capacity 258 250 expansions: • North America up 29%, A$M REVENUE 198 203 • South America
Slide 10: Strong NPAT growth – continued focus on underlying operational efficiency
Strong NPAT growth – continued focus on underlying operational efficiency is the basis for ongoing & stronger performance. 16 15 H1 FY24 NPAT up 178% pcp driven 14 by positive performances across the Group. 12 • South America margins now up to 25% driven by improving quality of business. 10 • APAC m
Slide 11: Order book - has been growing at 31% CAGR
Order book - has been growing at 31% CAGR and should drive multi-year revenue high this FY Austin Order Book FY2021-2024 200 184 CAGR 31% P.A. 180 158 160 144 140 120 108 106 100 81 80 63 60 40 20 0 H1 21 H2 21 H1 22 H2 22 H1 23 H2 23 H1 24 H2 24 P 11 Austin Engineering Limited FY24 Interim Financia
Slide 12: Working capital - raw materials reduced by $6.7m
Working capital - raw materials reduced by $6.7m and moved to WiP as revenue grows. $M 1HFY24 1HFY23 Work-in-progress 26.9 20.6 Raw materials 41.1 47.8 • Raw materials reducing, driven by AustBuy Finished goods 0.4 0.4 central steel procurement management Total inventory 68.4 68.8 • Work in p
Slide 13: Operating cashflow - $6.9M to strengthen over the second half
Analysis of Financial Results Operating cashflow - $6.9M to strengthen over the second half • Cash improved to $21 million. • Chile receivable reduced in value comprising of $0.9 million outflow on building and leasing the trays and $2.8 million foreign exchange movement. • Capital expenditure of $2
Slide 14: Net debt of $11.4M - expect net cash position by year end
Net debt of $11.4M - expect net cash position by year end $M 1H24 FY23 Total Assets 254.0 260.9 • Net debt of $11.4 million decrease due to the continued payment of the Mainetec acquisition term loan. Total Shareholders Funds 118.6 114.2 • Net Debt to Net Debt plus equity ratio reduced to 8.8%. N
Slide 15: Sector Analysis
Sector Analysis David Singleton, Chief Executive Officer and Managing Director P 15 Austin Engineering Limited FY24 Interim Financial Results www.austineng.com
Slide 16: Sector Analysis: Asia-Pacific
Analysis of Financial Results Asia-Pacific H1FY2023 H1FY2024 Sector Analysis Revenue (continuing operations) Normalised EBITDA $M $M 64.9 4.8 77.1 7.7 Normalised EBITDA margin % 7.5% 10% Austin Australia Austin Indonesia • APAC sales and product support team expanded and • Revenue was up 18.8% as th
Slide 17: Sector Analysis: North America
Analysis of Financial Results North America H1 FY2023 H1 FY2024 Sector Analysis Revenue (continuing operations) Normalised EBITDA $M $M 32.6 5.6 41.9 7.2 Normalised EBITDA margin % 17.1% 17.2% • USA has a record order book and is adding new multi-year customers. Expect high utilisation to end of CY2
Slide 18: Sector Analysis: South America
Analysis of Financial Results South America H1 FY2023 H1 FY2024 Sector Analysis Revenue (continuing operations) Normalised EBITDA $M $M 16.6 1.7 24.6 6.2 Normalised EBITDA margin % 10.5% 25.4% • Revenue was up 48% • New management focus on improving quality of income and developing new customers. •
Slide 19: Global Strategy
Global Strategy David Singleton, Chief Executive Officer and Managing Director P 19 Austin Engineering Limited FY24 Interim Financial Results www.austineng.com
Slide 20: Strategy - now focusing on key customer improvements to drive revenue growth
Strategy - now focusing on key customer improvements to drive revenue growth Customer Focus 3 Product 2 Manufacturing Leadership 1 Leadership P 20 Austin Engineering Limited FY24 Interim Financial Results www.austineng.com
Slide 21: Revenue growth strong - market analysis indicates much more can be achieved
Revenue growth strong - market analysis indicates much more can be achieved. 350 89% 320 Retention 300 258 11% 250 A$M REVENUE 198 203 200 150 33% 56% 100 50 0 21 22 23 24(F) Annual Recurring Revenue FY24 (F) is the mid-point of formal guidance provided on 27 February 2024. Repeat Customers (Non-Ann
Slide 22: 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 22 Austin Engineering Limited FY24 Interim Financial Results www.austineng.com
Slide 23: Outlook & Guidance
Outlook & Guidance P 23 Austin Engineering Limited FY24 Interim Financial Results www.austineng.com
Slide 24: 6 months objectives – building on the momentum
6 months objectives – building on the momentum… Order book strength with key strategic opportunities. Batam & USA manufacturing expansion driven by strong growth. AustBuy will contribute as a significant profit centre. Strong cashflow will be a feature of the business. P 24 Austin Engineering Limite
Slide 25: FY24 Full Year Guidance – continued strong growth
FY24 Full Year Guidance – continued strong growth with major market opportunities ahead. • FY24 revenue of $310 million - $330 million, up ~24% from FY23 • FY24 NPAT of $31 million - $33 million, up ~75% from FY23 Outlook • Company on track to be debt free in FY24 • Guidance has been made on the fol
Slide 26: design matters
design matters | austineng.com www.austineng.com
Austin Engineering — Investor Presentation (February 2024) on 6ix