Slide 1: Celebrating Success: FY2020 Results Presentation
Celebrating Success For personal use only FY2020 Results Presentation 24 August 2020 David Singleton, Chief Executive Officer Greg Jason, Chief Financial Officer Patrick Gregg, CEO - Designate
Slide 2: Financial Headlines
For personal use only Financial Headlines YEAR ON YEAR CHANGE • EBIT $130.4 m 41% • NPAT $89.0 m 45% • Total Dividends 8¢ per share 33% • Operating Cash Flow $164 m $0 m • Net Cash $231 m $130 m Slide 2
Slide 3: FY2020 Key Facts
For personal use only FY2020 Key Facts $2.1 B $4.3 B 10 45 9 6,800 NEW SHIPS SHIPS UNDER SHIPS EMPLOYEES REVENUE ORDER BOOK ORDERED CONSTRUCTION DELIVERED OR SCHEDULED 6 31 17% 85% SERVICE CENTRES VESSELS UNDER TOTAL REVENUE TOTAL REVENUE SUSTAINMENT FROM SUPPORT DEFENCE CONTRACTS 7 SHIPYARDS IN 5 C
Slide 4: Operational Highlights
Operational Exceptional support growth continues; For personal use only • 28% Year on Year Revenue Growth to $360 million maintains momentum. • Group EBIT margin 8.2% above target band of 7-8%. • Support investment continues and further ship deliveries will drive future growth. Highlights Australasi
Slide 5: FY2020 Financials
For personal use only FY2020 Financials Slide 5
Slide 6: Earnings
For personal use only Earnings $m FY2020 FY2019 Change % Record Revenue, EBITDA, EBIT and NPAT Revenue $ 2,086.0 $ 1,851.0 $ 235.0 13% Revenue increased across all segments underpinned by: EBITDA 176.1 135.0 41.1 30% Expansion of commercial shipbuilding EBIT 130.4 92.8 37.6 41% Support reven
Slide 7: Segment breakdown
For personal use only Segment breakdown FY2020 USA: $m Concept Ships Support Other Total Shipbuilding margin near the middle of the guidance range. Revenue $ 1,310.7 $ 293.0 $ - $ 1,603.8 Strong Support revenue growth, margin USA EBIT 106.8 16.9 (0.7) 123.0 below target band (7 – 8%). EBIT Margi
Slide 8: Cash flow
For personal use only Cash flow $m FY2020 FY2019 Change Operating: Operating $ 164.5 $ 164.5 $ (0.0) Strong conversion of EBITDA to operating cash flow. Investing Sustaining $ (13.9) $ (14.3) $ 0.4 Investing: Enhancing (4.3) (23.5) 19.2 Sustaining capex in typical range of $(10) – (15) million.
Slide 9: Net Cash / (Debt)
For personal use only Net Cash / (Debt) $m $300 June 2020 Net Cash $272 m 1 $250 $200 $150 $100 Cash $50 $0 ($50) (Debt) ($100) ($150) ($200) Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 1. Excludes th
Slide 10: Business Priorities 2021
Business Priorities 2021 For personal use only Implement US$100 million upgrade to US shipyard to meet new steel naval vessel program demands Use strategic Asian positioning to pursue Defence and Commercial programs Exploit technology leadership positions Continue to drive group-wide competitiveness
Slide 11: Strategic Outlook
Strategic Outlook For personal use only Slide 11
Slide 12: Austal USA US$100 million shipyard extension for steel warships
Austal USA has committed to a US$100 million extension For personal use only to the Mobile, Alabama shipyard to build steel warships (50% funded by US Government) Assembly Bay Phase 1 upgrade Phase 2 Modular Manufacturing Facility upgrade Two new Assembly Bays Blast & Paint Panel Line Facility facil
Slide 13: Austal USA investment will increase value of target projects ~3 times
Austal USA investment will increase value of For personal use only target projects by ~ 3 times New naval shipbuilding opportunities set to increase threefold. Projected potential new ALUMINIUM value Projected potential new per year STEEL value (accessible to Austal USA) per year Diagram is for illu
Slide 14: New shipbuilding projects ~US$2 billion per year from 2022
New shipbuilding projects* ~ US$2 billion per For personal use only year are estimated to occur from 2022 A$ billion 2.5 2 1.5 1 0.5 0 FY2022 FY2023 FY2024 FY2025 * Projects that have been assessed by Austal to be suitable for construction in the existing aluminium and planned steel shipbuilding fac
Slide 15: Defence Support is a key strategic focus
Defence Support is a key strategic focus For personal use only and has grown by 10 times in 6 years Support revenue A$m $360 m 12 x LCS delivered $400 6 x GCPB In-Service Support $350 11 x EPF delivered $300 10 x CCPB In-Service Support $250 10 x EPF delivered $200 7 x LCS delivered $150 7 x EPF del
Slide 16: Support Revenue has potential to rise to $500 m
Support Revenue has potential to rise to $500 m in the For personal use only next few years as ship deliveries & other initiatives occur 18 x CCPB In-Service Support^ 21 x GCPB in-service support 19 x LCS Delivered 14 x EPF Delivered Emerging Support Opportunities that will contribute to Growth 13 x
Slide 17: Force Structure Plan opportunities for Australian Shipbuilding
Recently published Force Structure Plan indicates significant For personal use only opportunities for Australian Shipbuilding over next 15 years Annual expenditure Cumulative expenditure A$ millions A$ millions $600 5,000 4,500 $500 4,000 3,500 $400 3,000 $300 2,500 2,000 $200 1,500 1,000 $100 500 $
Slide 18: Commercial ferry market and COVID-19
Commercial ferry market will For personal use only likely be affected by COVID-19 but is relatively small in our business and we see a reasonable pipeline Slide 18
Slide 19: Research & Development Investment Delivering Benefits
Research & Development Investment For personal use only Delivering Benefits Engineering maintenance software system sold to MARINELINK-Smart available on all new ships Royal Australian Navy Slide 19 Electric boats system developed for major ports Unmanned Surface Vessels in Operation
Slide 20: FY2020 Business Overview
For personal use only FY2020 Business Overview Slide 20
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Slide 22: In-service Support
In-service Support For personal use only 31 vessels for 5 operators in USA and Australia 12 x LCS 3 x EPF 10 x CCPB 6 x GCPB Slide 22
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Slide 28: FY2020 Operational Overview
For personal use only FY2020 Operational Overview Slide 28
Slide 29: USA operations
For personal use only USA operations Shipbuilding margin improvement to 8.1% (FY2019 margin 7.9%). Littoral Combat Ship LCS 22 & 24 delivered LCS 32, 34, 36 commenced construction LCS 38 scheduled Expeditionary Fast Transport Mature program, steady margins EPF 11 delivered EPF 13 c
Slide 30: Australia operations
For personal use only Australia operations Guardian Class Patrol Boat Replacement Project continues - 3 vessels delivered, 2 awaiting crews for training and delivery Hulls 398 and 399 – 2 x 58 metre Cape Class Patrol Boats for Trinidad and Tobago Coast Guard under construction Hull 394 (1st of
Slide 31: Philippines operations
For personal use only Philippines operations Philippines Government continuing discussions with Australian Government for funding support of 6 x OPV for Philippines Navy. If awarded to Austal, would be constructed at Austal Philippines VESSEL PROGRAMS: Hull 419 - Fjord Line 109 metre Auto Expres
Slide 32: Vietnam operations
For personal use only Vietnam operations Hull 397 – 94 metre Auto Express catamaran ferry for Government of Trinidad and Tobago was launched May 2020 Hull 424 – 41 metre catamaran ferry for SGTM of Mauritius commenced construction Slide 32
Slide 33: China operations
For personal use only China operations 2 x 42 metre catamaran ferries delivered, including o Hull AL004 – Xidao Dazhou Tourism o Hull AL007 – Shenzen Airport 5 x vessels under construction during FY2020, including the largest, fastest high speed aluminium ferry constructed in China – Hull AL008
Slide 34: Disclaimer
Disclaimer For personal use only David Singleton, Chief Executive Officer Telephone: +61 8 9410 1111 For further information visit 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 o
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