Slide 1: Investor Information Package
For personal use only Austal Limited Investor Information Package August 2008
Slide 2: 2008 Overview
For personal use only 2008 Overview • Demand for ferries continues from the Hong Kong region. • Defence sales business growth continues. • One of three contractors selected to carry out design phase of JHSV program. • US Navy cancels LCS 4. • Price submitted to US Navy for 3 vessels to be awarded in
Slide 3: Financial Results
For personal use only Financial Results 2007 2008 Revenue 543.6 626.1 EBIT 58.5 52.6 EBIT % 10.8% 8.4% Profit before tax 63.7 70.8 Tax Expense -17.9 -18.5 Net Profit 45.8 52.3 Basic EPS (cents) 24.4 28.3 (a) $ millions unless stated Investor Information Package Slide 3
Slide 4: Australia vs US Revenue
For personal use only Australia vs US Revenue Australia vs US Revenue $ Millions 500 450 400 350 300 250 200 150 100 50 0 2005 2006 2007 2008 Australia USA • Australian revenues increase 21% generated by production efficiencies from Advanced Ship Building modular construction and additional capacity
Slide 5: Result Highlights
For personal use only Result Highlights • Vessel margins reduced as a result of: - cost growth on LCS with no additional profit. - lower margin on Middle East contract to compensate for advance progress payments. • Interest income up from $5m to $18m due to progress payments in advance. • Overheads
Slide 6: Group Workforce
For personal use only Group Workforce Employees 1,600 1,400 1,200 1,000 800 600 400 200 - June 2004 June 2005 June 2006 June 2007 Jun-08 Australia USA • 14% increase in Australian workforce. • Labour shortages expected to continue in Perth. • US workforce held steady awaiting decision on LCS awards.
Slide 7: Austal USA – Workforce Growth
For personal use only Austal USA – Workforce Growth # of Employees 2000 Projected 2,300 employees with LCS and/or Joint High Speed Vessel award 1500 1000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Investor Information Package Slide 7
Slide 8: Vessels Completed in 2008
For personal use only Vessels Completed in 2008 • 88 metre vessel for City of Istanbul • 65 metre vessel for Sultanate of Oman • 7 x 48 metre vessels for Cotai Strip (Macau) • 3 x 57 metre RAN Patrol Above: Shinas – delivered to the Sultanate of Oman in Boats June 2008. Investor Information Package
Slide 9: Current Orders - Commercial
For personal use only Current Orders - Commercial • 1 x 107 metre vessel for Hawaii Superferry • 1 x 65 metre vessels for Sultanate of Oman • 7 x 48 metre vessels for Cotai Strip (Macau) • 2 x 88 metre vessels for middle east • 2 x 69 metre vessels for middle east • 2 x 48 metre vessels for New Aust
Slide 10: Current Orders - Military
For personal use only Current Orders - Military • 6 x 30 metre patrol boats for Trinidad & Tobago Coast Guard – including 5 year maintenance & support contract • 1 x 127 metre Littoral Combat Ships for United States Navy Investor Information Package Slide 10
Slide 11: Launch of LCS
For personal use only Launch of LCS 2 Investor Information Package Slide 11
Slide 12: Current Status of LCS
For personal use only Current Status of LCS 2 Approximately 85% complete Christening on 4 October 2008 Going to sea within 6 months Investor Information Package Slide 12
Slide 13: Littoral Combat Ship
For personal use only Littoral Combat Ship • Austal USA is the designer and builder in the General Dynamics consortium. • Navy remains committed to LCS program and 313 ship fleet plan. • Future vessels will be awarded on a fixed price incentive basis. • Subject to available funds, award of 2008 vess
Slide 14: Joint High Speed Vessel
For personal use only Joint High Speed Vessel • An approved program by the US Army and Navy. • High speed transport of personnel, supplies and equipment. • Over 100 metres in length. • ~US$130M cost/ship. • 10 – 12 ships in the programme. • Initial proposal submitted 27 October 2007. • Award prelimi
Slide 15: Planned US Expansion
For personal use only Planned US Expansion Additional assembly bay Planned 700,000 sq ft Modular Manufacturing Facility Investor Information Package Slide 15
Slide 16: Austal's Strategic Overview
For personal use only Investor Relations Contacts Austal’s Strategic Overview
Slide 17: Growth Strategy
Growth Strategy For personal use only Australian Submarine Coast Guard Corporation Foreign Military JHSV Patrol Sales LCS Boats . Inte U.S rnat iona Passenger/Car l Ferries Defense Service & Maintenance l ercia Liveaboards Revenue Service Service & m Maint. JV’s Com Austal Cruise boats Through- Life
Slide 18: Growth Strategy: Relaunching the Oceanfast brand
Growth Strategy Relaunching the Oceanfast brand For personal use only • Positioning in the mid- range yacht market. • High quality, high value-for-money. • Limited ability for client to make changes. Investor Information Package Slide 18
Slide 19: Growth Strategy continued: The Patrol Boat Market
Growth Strategy continued The Patrol Boat Market For personal use only • Countries are more interested than ever in protecting their shorelines. • Austal has produced patrol boats for numerous countries: ¾ Yemen ¾ Qatar ¾ Royal Australian Navy • Recently contracted for 4 vessels for Trinidad & Tobag
Slide 20: Australian Submarine Corporation
Australian Submarine Corporation For personal use only • Austal’s experience with RAN Patrol Boats and LCS positions us well for the acquisition opportunity. • Sale likely to commence in 4th quarter of 2008. • Government currently determining required Australian ownership level. Will be a minimum of
Slide 21: Outlook
For personal use only Outlook • Contracts on hand at 30 June amounted to $320 million. • LCS & JHSV programs make up 20% of future US Navy fleet. ¾ Awards in both programs expected this year • Commercial sales enquiries expected to pick up with fall in Australian dollar. • Construction of Modular Ma
Slide 22: Investor Relations Contacts
For personal use only Investor Relations Contacts Greg Metcalf – Chief Financial Officer Telephone: + 61 89 410 1111 For further information www.austal.com