Slide 1: FY22 Financial Results
Austin Engineering Ltd FY22 Financial Results 29 August 2022 www.austineng.com austineng.com
Slide 2: Key financial highlights
Key financial highlights • NPAT up 525% to $20.6 million, and ahead of initial guidance. • Revenue up 3% to of $203.3 million despite COVID-affected revenue in Australia. • EBITDA up 155% to $32.5 million. • Return on equity up to 19% versus under 10% in previous years. • Net debt $1.2 million impro
Slide 3: 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 profits for our clients. 17 Locations across six continents, including partners. $203.3M $138.3M $135M FY22 Reve
Slide 4: Our 40-year journey
Our 40-year journey Brisbane, Australia Perth, Australia Casper, USA La Negra, Chile Batam, Indonesia Global Operation Worldwide Mackay, Australia 1982 2004 2007 2009 2011 2017 2022 2022 Austin is founded Acquired JEC Acquired Westech Acquired Conymet Commenced operations Austin is rebranded Austin
Slide 5: 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 6: Five truck tray types for different applications
Five truck tray types for different applications WESTECH ULTIMA JEC-LD JEC HPT P6 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 7: Leading range of mining buckets for many applications
Leading range of mining buckets for many applications P7 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 8: 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. P8 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 9: 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 10: Why we are different
Why we are different • Austin is an industrial business building standard product types with more reliable revenue and earnings outlook. Product • Products are made to order, fast turnover consumables critical to most types of mining worldwide. Average truck Focused 85% body turnover is 3-8 years de
Slide 11: 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 12: Our markets
Our markets • 3rd party data suggests world market for 100 tonne+ trucks is circa 20,000 in total. Austin estimates over 3,000 replacement truck bodies and 500 buckets are required p.a. Global ~18% • Austin is the world brand leader but with a market share estimated at circa 18% indicating growth
Slide 13: FY22 highlights
FY22 highlights Revenue Net debt EBITDA $203.3m $1.2m 35.0 32.5 30.0 Up 3% from FY21 Excl. $14.3m of lease liabilities 25.0 Impact of Austin 2.0 EBITDA Dividends 20.0 19.9 $32.5m 0.3 cps in million 15.0 14.2 12.7 Up 155% from FY21 Fully franked final FY22 declared 8.9 10.0 5.0 NPAT EPS $20.6m 3.55c
Slide 14: FY22 highlights
FY22 highlights • Total revenue from continuing operations was up 3% from FY22 with Australia down on the PCP due to buying cycle of a major customer and covid impacts reducing output, offset by strong sales in the USA and Chile as they shrugged off COVID-19 impacts in the previous year. • EBITDA fr
Slide 15: Financial Results
Financial Results Gareth Jones, Chief Financial Officer P 15 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 16: Financial Performance: Statutory (Continuing Operations)
Analysis of Financial Results Financial Performance: Statutory (Continuing Operations) FY FY 2021 to 2022 12 months ending 2022 2021 % Change Revenue $M 203.3 198.1 3% • Revenue up $5.2 million despite impact of COVID-19 in EBITDA $M 32.5 12.7 155% Western Australia. EBITDA margin % 16.0% 6.4% 149%
Slide 17: Cash Flow
Analysis of Financial Results Cash Flow Fiscal year ending $M FY2022 FY2021 Cash flows from operating activities EBITDA 29.5 9.7 Add: • Movement in working capital (12.4) (14.1) • Operating cash flows impacted by working capital movement due • Income tax paid (1.3) (2.5) to an increase in work-in-pr
Slide 18: Movements in Cash
Analysis of Financial Results Movements in Cash Cash flows reflect continuing and discontinued operations, as such certain amounts will not reconcile to performance statements above, which are shown on a continuing basis OCFbIT = Operating cashflow before Interest and Tax. P 18 Austin Engineering Li
Slide 19: Balance Sheet and Other Items
Analysis of Financial Results Balance Sheet and Other Items Decrease in Net Debt Working Capital • Net debt decreased $8.4 million to $1.2 million, primarily driven by • Work-in-progress increased $11.3 million due to higher activity in focused working capital management and improving cash H2. Raw m
Slide 20: Sector Analysis
Analysis of Financial Results Sector Analysis Asia-Pacific FY2022 FY2021 North America FY2022 FY2021 South America FY2022 FY2021 Revenue (continuing operations) $M 107.5 138.3 Revenue (continuing operations) $M 66.7 35.7 Revenue $M 29.2 24.1 EBITDA $M 8.9 17.5 EBITDA $M 15.9 (2.4) EBITDA $M 7.7 (2.4
Slide 21: Property Portfolio
Analysis of Financial Results Property Portfolio Over the years, Austin acquired several properties globally to conduct business. As part of strategy review, several of these were sold or placed on sale. The following property portfolio remains on hand at the end of the financial year: Property Held
Slide 22: Global Strategy
Global Strategy David Singleton, Chief Executive Officer and Managing Director P 22 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 23: Global strategy launched July 2021
Global strategy launched July 2021 To be a technology-led global leader in mining product manufacture Phase 3 (FY 2023/4) Technology and Innovation • Launched new HP-T truck tray in Q4 and launch customer won. Phase 2 (FY 2023 impact) • Launch new JEC HP bucket range with multiple buckets sold. Manu
Slide 24: Building a leading mining products business
Building a leading mining products business • Truck Bodies • Hulk Buckets • JEC HP Buckets • Dipper Buckets • Tyre Handler • Wear Monitoring. P 24 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 25: Austin's acquisition of Mainetec will drive performance
Austin’s acquisition of Mainetec will drive performance The numbers at a glance… Acquisition metrics Cost based synergy benefits Market based synergy benefits ($3m in FY23) (not included in accretion analysis) • Price $19.6m over 2 years • Steel cost savings by leveraging • Sales of Hulk excavator b
Slide 26: Mainetec builds high performance bucket systems
Mainetec builds high performance bucket systems P 26 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 27: Mainetec builds high performance bucket systems
Mainetec builds high performance bucket systems P 27 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 28: Global dipper bucket opportunity
Global dipper bucket opportunity Over 80% of Australian dipper buckets have major systems upgrades, but there are 10 times as many dipper buckets in the Americas. North America Canada Indonesia United States Batam Casper | Wyoming Australia South America Perth (Head Office) Australia South America C
Slide 29: Austin launched two new product types in 2022
Austin launched two new product types in 2022 Austin’s investment in R&D has led to the launch of two new product ranges optimised for the Australian market. Next Gen Truck Body High Performance Buckets Series P 29 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 30: Our lightest ever truck tray
OUR LIGHTEST EVER TRUCK TRAY • 7.3 tonnes more payload • Customer carries additional $2.8 million ore per tray annually • Easier to build P 30 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 31: Our best ever bucket
OUR BEST EVER BUCKET Up to Average Up to 15% 25% 3% lighter than our reduction in improvement in comparable bucket sidewall wear digging efficiency means more ore load • Developed to meet customer demands • Has helped drive 4x increase in bucket sales • Will lead to more rebuild potential P 31 Austi
Slide 32: Outlook & Guidance
Outlook & Guidance P 32 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 33: FY23 Market Guidance
FY23 Market Guidance • FY23 outlook looks strong based on improving business efficiency, broad market recovery, especially in the Americas and new product launches aimed at improving competitiveness. • Full year NPAT is expected to be up 17% to circa $24 million (excluding Mainetec contribution. Upd
Slide 34: Sustainability
Sustainability P 34 Austin Engineering Limited FY2022 Results Presentation www.austineng.com
Slide 35: Frequency rate
Sustainability Safety Safety statistics Safety Leadership LTIFR TRIFR • During FY22 Austin maintained and improved the Critical Control 8 7.3 18 15.7 Effectiveness Monitoring Program (CCEMP) rolled out in FY21. 7 16 14 12.9 12.7 12.8 6 • The Group is progressively moving from Golden Rules to employe
Slide 36: People
Sustainability People Headcount Growth in Communities • Of our total global workforce (including labour hire) of 1,050 at 30 June 2022, more than 80% of the workforce in each of our facilities globally is sourced from local communities. • Austin’s supply chain is heavily linked to local communities,
Slide 37: Environment
Sustainability Environment 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 environment, and the communities in which it operates. This commitment is driven by Austin’s Core Values, wh
Slide 38: 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 39: At Austin "Design matters"
At Austin “Design matters“ design matters | austineng.com www.austineng.com