Slide 1: 2011 Financial Results Investor Briefing Package
For personal use only 2011 Financial Results Investor Briefing Package 19 August 2011
Slide 2: Agenda
Agenda For personal use only • Results Highlights and Key events • Group Financial Summary o Balance sheet review o Austal USA o Austal Australia o Service • 2012 Investment Program • Vessels Completed in FY2011 • 30 June backlog • LCS Update • JHSV Update • US Navy order book potential • Factors im
Slide 3: Results highlights and Key events
Results highlights and Key events For personal use only AUD $M 2011 2010 Change Revenue 503.9 21.1 521.4 (3%) EBIT 19.8 51.2 (61%) Net profit after tax 8 521.9 ce ts 37.1 (41%) EPS 11.9 cents 20.3 cents 168% Key events during the H2 2011 • Adverse macroeconomic conditions directly reflected in resul
Slide 4: Balance sheet Review
Balance sheet Review For personal use only AUD $M 2011 2010 Change Total Assets 674.6 648.1 4% Cash 42.3 29.0 46% Restricted cash 129.8 1.1 11,700% Inventories 177.9 275.3 (35%) Property, plant & equipment 208.3 217.7 (4%) Total Liabilities 400.4 378.8 6% Bank loans 9.1 41.4 (78%) Go Zone Bond 209.7
Slide 5: Austal USA
Austal USA (In USD) Austal USA For personal use only USD $M 2011 2010 Change Revenue 333.4 235.5 42% EBIT 19.7 4.7 20.9 (6%) EBIT % 8 56%ce ts 9% (14%) PBT 13.6 16.5 (18%) • Revenue growth reflects growth in activity levels at AUSA (2 LCS’s and 3 JHSVs under construction at June 2011) • EBIT margin
Slide 6: Austal Australia (Excl. Service)
Austal Australia (Excl. Service) For personal use only AUD $M 2011 2010 Change Revenue 144.2 219.7 (34%) EBIT (8.0) 27.6 (129%) EBIT % (6%) 13% (143%) PBT (8.6) 27.1 (132%) • Substantial revenue and operating profit reduction results from the sustained adverse international market conditions • Austr
Slide 7: Service
Service Service For personal use only AUD $M 2011 2010 Change Revenue 15.7 41.6 0.0 (62%) EBIT 1.8 2.7 0.0 (33%) 100% EBIT % 11% 6% 77% PBT 1.8 2.7 (33%) • Reduction in revenue results from the refocusing of the business on profitable contracts • Important part of future strategy to support LCS and
Slide 8: 2012 Investment Program
2012 Investment Program For personal use only 2011 Strategic AUD $M Actual Aust. USA Initiatives Production plant & equipment 5.6 1.5 30.0 Furniture & equipment 1.1 3.0 Information technology 1.9 1.0 1.0 MMF phase II 17.8 60.0 New land and improvements 0.8 14.0 New office 1.8 16.0 Bay 5 6.0 14.0 Bui
Slide 9: USA Facility Expansion
USA Facility Austal USA Expansion Expansion For personal use only Alabama Marine Science Centre
Slide 10: USA Facility Expansion
USA Facility Austal USA Expansion Expansion For personal use only Modular Manufacturing Facility Assembly Bay 5
Slide 11: Vessels completed FY 2011
Vessels completed FY 2011 For personal use only H246 Leonora Christina H248 Jean De la Valette T & T Water Taxi’s
Slide 12: June Backlog
Over $1.2B Currently Under 30 June Backlog Contract $1.49B For personal use only At 30 June • 2 X 47m Catamarans for L’ Express des Illes (Guadeloupe) • 1 X 35m Monohull ferry for Mary D’ Enterprises (New Caledonia) • 1 X 41m Monohull ferry for New Caledonia • 7 X 103m Joint High Speed Vessels for U
Slide 13: LCS Update
LCS Update For personal use only • LCS 4 Coronado 75% complete, on time and ahead of budget. • LCS 6 design work is underway and fabrication will commence in February 2012. • LCS 8 will commence in September 2012. • Contractual dates for future awards lock in 2 awards per annum by 31 March for each
Slide 14: JHSV update
JHSV update For personal use only • JHSV 1 87% complete, on time, profitable but behind budget • Lessons learned from first vessel applied to subsequent hulls with substantial cost improvements • JHSV 2 33% complete, on time, near budget • JHSV 3 to 7 fully contracted • JHSV 8 + 9 to be awarded by F
Slide 15: United States Navy Order book potential
United States Navy Order book potential For personal use only Austal USA projected orderbook profile at June 2011 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 De
Slide 16: Factors impacting US Defence spending
Factors impacting US Defence spending For personal use only • Macro issues at play: • US Defense Department strategic review • Budget Control Act of 2011 • China’s military spending “The U.S. Navy is continually assessing and observing Chinese naval capabilities to potentially deny the U.S. regional
Slide 17: US Navy procurement plans
US Navy procurement plans For personal use only "At the end of the day, we have to ask whether the nation can really afford a Navy that relies on $3 to $6 billion destroyers, $7 billion submarines, and $11 billion carriers." Secretary of Defense – Robert Gates, February 2011
Slide 18: Strategy overview
Strategy overview For personal use only • Backdrop of high Australian dollar, weak European and US economies and increasing competition for labour in Australia. • Strategic initiatives: Regionalise the commercial manufacturing capacity to Asia and potentially Europe Continue to develop new produ
Slide 19: Summary
For personal use only Summary • Transition year for Austal: • US operations are growing in accordance with plan and will deliver revenue in the order of US$ 550m in 2012 • Australian operations are being restructured: • Regionalising commercial manufacture • Henderson to focus on defence with CCPB a
Slide 20: Questions?
For personal use only QUESTIONS ?
Slide 21: For further information / Disclaimer
For personal use only Richard Simons, Chief Financial Officer Telephone: + 61 8 9410 1111 For further information 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 offer or invitatio