Slide 1: 1st Half 2007 Results Presentation
1 Half 2007 st Results Presentation www.austal.com Slide 1
Slide 2: 1st half highlights
1st half highlights • Net profit after tax $19.4 m • Earnings per share 10.5 cents per share • 2nd Littoral Combat Ship contract – $135m • Award of multiple ferry order – $140m • Extension to multiple ferry order – $60m • Acquired 30% minority interest in US Operation www.austal.com Slide 2
Slide 3: Recent Performance
Recent Performance 1H2005 2H2005 1H2006 2H2006 1H2007 Revenue 162.8 158.4 167.8 224.6 250.5 EBIT 23.6 17.7 19.7 26.8 23.1 EBIT % 14.5% 11.2% 11.7% 11.9% 10.3% Profit before tax 24.4 18.1 19.6 30.0 25.8 Tax Expense (3.1) (4.5) 1.1 (6.5) (5.9) OEI 0.3 0.3 (2.1) (1.4) 0.5 Net Profit 21.6 13.9 18.6 22.1
Slide 4: Current Projects
Current Projects Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Australia RAN - 14 x 56 metre Turkey - 88 metre Turkey - 88 metre Cruise vessel - 58 metre Oman - 2 x 65 metre Multiple Ferry Order Multiple Ferry Order Option USA Hawaii - 107 metre Hawaii - 107 metre LCS
Slide 5: Workforce
Workforce Employees 1,400 1,200 1,000 800 600 400 200 - 30 Jun 04 31 Dec 04 30 Jun 05 31 Dec 05 30 Jun 06 31 Dec 06 Australia USA www.austal.com Slide 5
Slide 6: Manpower - Australia
Manpower - Australia • Improved processes have increased domestic recruitment numbers and quality • Staff retention initiatives continue to reduce turnover of existing staff • Skilled migrant program has contributed significantly to growth in work force (currently employ 200 Filipino workers) • More
Slide 7: Productivity - Australia
Productivity - Australia • Implementation of the scoping study for full implementation of Advanced Shipbuilding (approx 30% complete) • Full implementation expected during next 18 months • Increased automation of simple tasks • Increased “block” construction will result in more productive time • New
Slide 8: Launch of 1st HSF
Launch of 1st HSF www.austal.com Slide 8
Slide 9: US Navy Littoral Combat Ship
US Navy Littoral Combat Ship • 1st vessel 50% complete with launch in December 2007. • 2nd vessel awarded in December 2006 with construction to start in April 2007. • Stop work on Lockheed Martin 2nd vessel. • Congress has appropriated funds for 2 vessels in 2007. • US Navy advise requirement for up
Slide 10: Littoral Combat Ship
Littoral Combat Ship www.austal.com Slide 10
Slide 11: Statement by US Department of Defense
Statement by US Department of Defense • “the littoral combat ship program remains of critical importance to our Navy. With its great speed and interchangeable warfighting modules, the ship will provide unprecedented flexibility” - Admiral Mike Mullen, Chief of Naval Operations – 12 January 2007 www.
Slide 12: Potential large volumes of LCS vessels
Potential large volumes of LCS vessels • US Navy Budget proposes the following orders; – 2 in FY 2007 (Appropriated) – 3 in FY 2008 (Confirmation late 2007) – 6 in FY 2009 – 6 in FY 2010 – 6 in FY 2011 www.austal.com Slide 12
Slide 13: Joint High Speed Vessel Program
Joint High Speed Vessel Program • US Navy / Army budget proposes; – 1 in FY 2008 – 2 in FY 2009 – 2 in FY 2010 – 2 in FY 2011 – 1 in FY 2012 Vessel value estimated at US$130m www.austal.com Slide 13
Slide 14: ASC
ASC • Australian Submarine Corporation to be privatised – Holds up to 25 year submarine maintenance contract – Preferred builder for the $6 billion AWD contract – Reported $18.5m profit in 2005/06 • Timing – Commencement of sale process expected late 2007 – Completion in mid – late 2008 www.austal.c
Slide 15: Summary
Summary Australian operations • Operating at high capacity levels through to 1Q 2008 • Sound prospects in the commercial market beyond 2008 due to market leading position and diverse product range • Increasing recognition and credibility as a defence supplier due to the RAN and LCS projects www.aust
Slide 16: Summary (cont.)
Summary (cont.) US Operations • Expanding rapidly with capacity sold through to end of 2009 • Potential long-term contract income through 2020 for the US$16.5 billion Littoral Combat Ship Project • Bidder for the Joint High Speed Vessel Program with RFP expected to be released by April 2007 • Purcha