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Slide 3: Austal company overview
AUSTAL Formed in 1988 with a vision for excellence in commercial shipbuilding Listed on the Australian Stock Exchange in 1998 The 1st and 2nd largest aluminium shipyards in the world are owned by Austal in Australia and the USA. Market capitalisation of $623 million, revenues of $389 million and app
Slide 4: Austal Limited Share Price vs All Ordinaries Index
350% 300% 4 250% 200% | 150% + 100% 4 Austal Limited Share Price vs All Ordinaries Index Listing to 30 June 2006 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 — All Ordinaries Index —ASB
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Slide 6: High technology design and naval architecture
AUSTAL e High technology design and naval architecture ~ Customisation (offering what the customer requires) — Acompetitive advantage Higher productivity ~ Lowest cost consistent with quality objectives ~ Continuous improvement Increase diversity of product range ~ Regular workflow Increase diversit
Slide 7: Design, risk management and project management
AUSTAL Design ~ 150 naval architects, engineers and designers Risk Management ~— Speed, delivery time, specification and cost Project Management Aluminium fabrication Marine engineering Financing — Sound balance sheet ~— Creative export finance solutions
Slide 8: Productivity improvement project commenced in 2003
AUSTAL An Austal productivity improvement project that commenced in 2003 Simplification of production drawings Use of advanced shipbuilding methods in design and production ~ construction of precisely sized modules prior to main assembly — first application to aluminium construction Increased standa
Slide 9: Major advantages of Advanced Shipbuilding
AUSTAL The major advantages of Advanced Shipbuilding include; ° Increased upfront design to reduce re-work and cost Increased automation of material cutting & processing Increased modularisation to increase employee output (reduction of employee movement around the shipyard) Simplification of constr
Slide 10: Design in three dimensions
AUSTAL Design in three dimensions * Includes design to accurate dimensions of internal fitout, plumbing, piping, electrical and engineering components. * Automated material cutting A section of the RAN Patrol boat as designed and as built * Automated production to allow assembly in modules before ve
Slide 11: Creation of a production line
* Creation of a production line from plate cutting to vessel launch cea, | sonra * Reduce employee movement - — Hl = between work locations ee * Maximise utilisation of existing . —_ property and infrastructure ve __ LJ * Ensure adequate dedicated “3 use wuranene facilities for; e -~ Components Shop
Slide 12: Cost breakdown of vessel construction
AUSTAL @ Labour gw Aluminium C1 Main engines, waterjets, gearboxes etc 38% @ Other materials, overheads and general expenses MEBIT
Slide 13: Global Deliveries - Vehicle Passenger Ferries (2003-2005)
Global Deliveries - Vehicle Passenger Ferries (2003-2005) Marinteknik (Singapore), 2, 14% Rodriquez (laly), 2, 14% Austal, 8, 58% Derecktor (USA), 2, 14%
Slide 14: Global vessel locations
Norway Germany , Estonia Denma UK Irelan ew York Portuga ami Canary Is@ Bahamas NN ° Tahiti South 4 v fNew Zealand
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Slide 16: Australia and USA performance
a oc, | CAUSTAL 30 Jun 04 31 Dec 04 30 Jun 05 31 Dec 05 30 Jun 06 B Australia mg USA
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Slide 20: Commercial vessel orders
2 x 88 metre vessels for City of Istanbul. * 2x 107 metre vessels . for Hawaii Superferry. Q vodafone « 2x 66 metre vessels for Sultanate of Oman. * 1x57 metre private cruise vessel. Above: Highspeed 5 — delivered to Hellenic Seaways in 2005, in operation in Greece. Photo - George Giannakis
Slide 21: Vessel contract of approx $350 million
AUSTAL 14 vessel contract for approx $350 million. 8 vessels remain to be delivered by Sept 2007. Excellent sea-keeping through design and proprietary motion control systems. Low through-life cost through usage of lightweight aluminium.
Slide 22: Austal USA in the General Dynamics consortium
AUSTAL Austal USA is the designer and builder in the General Dynamics consortium Revenue to Austal is approx AUD 150 million per vessel Future procurement program according to 2006/7 US Navy Budget is shown below. Best estimate at this stage is an equal split of orders between GD and Lockheed Martin
Slide 23: Multi-role Littoral Combat Ship
Multi-role ~ Special forces — Anti-submarine warfare — Anti-mine warfare — Asymmetric threats (ie. small high speed craft) * Relatively low cost — ($300 million vs $3-4 billion) * High-speed, shallow draft ~ designed to operate in the “littoral” regions to permit larger “capital” ships remain furthe
Slide 24: Littoral Combat Ship design advantages
* Flight Deck ~ Larger. Able to operate two helicopters in high sea states - Significantly higher flight deck from the waterline * Largest internal volume ~ Greater internal volume for weapons, logistics, combat systems * Lightweight ~ Faster for a given powering ~ Lower fuel consumption for a Above
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Slide 26: Income statement
AUSTAL 2006 389.0) 46.5, ‘Tax Expense _ (OEI ‘Net | Profit — Basic E EPS. (cents) OB (a) $ millions unless stated (b) All IFRS
Slide 27: Australia vs US Revenue
a oc, | AUSTAL Australia vs US Revenue $ Millions 2002 2003 2004 2005 2006 @ Australia HUSA
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Slide 29: Joint High Speed Vessel (JHSV) program
AUSTAL ¢ Joint High Speed Vessel (JHSV) is an approved program by the US Army and Navy to provide high speed, shallow draft vessels for rapid transport of conventional or special forces and equipment/supplies. * Initial contract in FY 2008 (see table below). * Concept similar to Westpac Express (101
Slide 30: Austal teamed with General Dynamics for ASC sale
AUSTAL Austal teamed with General Dynamics (51/49) basis Sale to be concluded in second half of 2008 Attraction to Austal:; — Increased participation in Defence business — Large / long-term build contracts ~ Ability to apply commercial experience to the defence sector — Long term maintenance contrac
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