Austal Limited · ASX:ASB
Austal — H1 FY2021 Earnings Presentation
25 slides from Austal's earnings presentation, Feb 26, 2021
Slide 1: FY2021 H1 Results
FY2021 H1 Results 26 February 2021 Paddy Gregg, Chief Executive Officer Greg Jason, Chief Financial Officer
Slide 2: Financial Headlines FY2021 H1
Financial Headlines FY2021 H1 CHANGE FROM PCP • Revenue $840 m (19%) • EBIT $70.5 m 18% • NPAT $52.4 m 29% • Interim Dividend 4 ¢ per share 33% • Operating Cash Flow $93.5 m $71.4 m • Net Cash 1 $260.2 m $(12.2) m 1. Excludes the notional debt of the CCPB 9 & 10 leasing program 2
Slide 3: FY2021 H1 Key Facts
FY2021 H1 Key Facts $840 M $2.9 B 38 10 5,800 REVENUE ORDER BOOK SHIPS UNDER SHIPS EMPLOYEES CONSTRUCTION DELIVERED OR SCHEDULED 8 6 SHIPYARDS 33 SERVICE CENTRES IN 5 COUNTRIES VESSELS UNDER SUSTAINMENT CONTRACTS 3
Slide 4: FY2021 H1 Financials
FY2021 H1 Financials 4
Slide 5: Earnings
Earnings $m FY2021 H1 FY2020 H1 Change % Revenue $ 840.3 $ 1,038.8 $ (198.4) (19%) Lower revenue driven by FX and lower throughput (More detail: Slide 6) EBITDA 92.4 84.4 8.0 10% Higher EBIT driven by: EBIT 70.5 59.9 10.5 18% • Strength of USA and Australasia margin • Negative impact of reduced
Slide 6: Group revenue movement
Group revenue movement LCS 36 – 38 long Reduced Average FX Primarily growth of lead materials in commercial activity $M movement FY2020 H1 & More detail: Slide 10 following low margin FY2021 H1: US$0.72 emergent work from COVID-19 delays completion of three FY2020 H1: US$0.68 CCPB dockings More deta
Slide 7: Group EBIT movement
Group EBIT movement Driven by incentive LCS 26 delivery Average FX award fees, funding FY2020 H1 was incentive and Strengthening of Driven by lower movement approvals and enhanced by realisation of cost margins during Corporate FY2021 H1 US$0.73 reversal of doubtful high margin, $M reductions across
Slide 8: Segment breakdown
Segment breakdown FY2021 H1 $m Concept Ships Support Other Total USA: Revenue $ 553.9 $ 87.7 $ - $ 641.6 FX impact on revenue $(45) m FX impact on EBIT $(4) m USA EBIT 56.5 13.0 (0.1) 69.4 Shipbuilding margin reflects incentives and EBIT Margin % 10.2% 14.8% - 10.8% strong performance as miles
Slide 9: USA Shipbuilding Revenue
USA Shipbuilding Revenue LCS 36 & 38 long lead Average FX movement materials in FY2020 H1 FY2021 H1: US$0.72 $M and lower labour hours FY2020 H1: US$0.68 including COVID-19 delays $800 $675 $(39) $(80) $600 $(3) $554 $400 $200 $0 FY2020 FX LCS EPF FY2021 H1 Translation H1 9
Slide 10: USA Support Revenue
USA Support Revenue Admission to the panel of west coast sustainment execution contract providers (SEC West) and a dry dock in San Diego is sought to permanently grow US support earnings Average FX USN ceased Demand for Class Reduced Engineering FFG design concept Revenue from USA movement performin
Slide 11: Support Margin USA
Support Margin USA Reported IFRS margin is volatile due to the timing of incentive award fees, government funding approvals and Singapore start-up projects, normalised EBIT margin is in the 6.8% - 8.9% band EBIT Margin Reported IFRS Normalised 15% 14.8% 10% 8.9% 7.7% 7.5% 7.6% 9.4% 7.7% 5% 7.0% 6.8%
Slide 12: Cash flow
Cash flow $m FY2021 H1 FY2020 H1 Change Operating $ 93.5 $ 22.1 $ 71.4 Operating: Investing Strong EBITDA conversion Sustaining $ (10.8) $ (7.1) $ (3.8) Investing: Enhancing (42.8) (2.4) (40.4) Enhancing capital expenditure includes BSE, MARRS, Financing Philippines dry dock acquisitions and new
Slide 13: Financial Outlook
Financial Outlook FY2021 Revenue guidance $1.65 B reduced from $1.8 B @ USD / AUD 0.77 • Negative impact of AUD appreciation on translation • Lower USA Support revenues • COVID-19 delays shifting revenue into FY2022 FY2021 EBIT guidance $125 M maintained @ USD / AUD 0.77 • USA shipbuilding margin im
Slide 14: USA H2 Outlook - Beyond LCS
USA H2 Outlook - Beyond LCS • Defense Production Act Contract defined for the Mobile shipyard USCG OPC expansion, enabling steel vessel construction • US Coast Guard Offshore Patrol Cutter (OPC) Detailed Design and Construction RFP released • Autonomous EPF conversion contract appropriated in USA Go
Slide 15: Strategic Outlook
Strategic Outlook 1. LCS transition and COVID-19 impact (increased cost, commissioning & delivery disruption, and commercial ferry markets) are a challenge 2. Strong balance sheet and investing for future growth 3. Future work opportunities across ships / systems / support I. US programmes II. Phili
Slide 16: Business Overview
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Slide 17: Ships in construction
Ships in construction as at 31 Dec 2020 17
Slide 18: Defence Support is a key strategic focus and targeted for growth
Defence Support is a key strategic focus and targeted for growth as more vessels are delivered Up to 18 x CCPB in-service support 19 x LCS Delivered 21 x GCPB in-service support 14 x EPF Delivered 13 x CCPB in-service support 2020 2021 2022 2023 2024 2025 18
Slide 19: Operational Highlights USA
Operational Highlights USA • EPF and LCS programs continue to perform well. • Delivered EPF 12 (September) and LCS 26 (December). • EPF 15 appropriated (again). • Modifications being incorporated into EPF 14 to add enhanced medical capability including: • Habitability modifications • V22 Osprey land
Slide 20: Operational Highlights Australasia
Operational Highlights Australasia • We have delivered five vessels despite supply chain and global mobility COVID-19 challenges • H1 ship deliveries: 2x Guardian class and 3x ferries (Fred Olsen 1, JRK, and T&T Ferry) • Commercial ferry market continues to be subdued due to COVID-19 • BSE acquisiti
Slide 21: Sustainment reaching new heights in Cairns
Sustainment reaching new heights in Cairns Austal Australia has expanded the company’s sustainment footprint in Australia with the acquisition of BSE Maritime Services in Cairns and Brisbane, Queensland. Additional capability now includes slipways in both locations and the Pacific’s largest mobile b
Slide 22: Spirit of Tasmania
Spirit of Tasmania Austal was invited to submit a formal proposal for increasing Australian content for the construction of 2 x ‘Spirit of Tasmania’ Bass Strait Ferries 22
Slide 23: Austal has a growing range of digital enabled products & services
Austal has a growing range of digital enabled products & services Microscopy analysis by Curtin Uni New Volta family of battery-electric fast ferries now market ready Prototyping 3D printing of metal structures at large scale data & EAM compute LUSI in Cloud Event Mobile Hub Tablets 3D APIS Model Se
Slide 24: Disclaimer
Disclaimer Paddy Gregg, 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 offer or invitation to subs
Slide 25: End
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