Slide 1: Report for the Half Year Ended 31 December 2013
Report for the Half Year For personal use only ENDED 31 DECEMBER 2013
Slide 2: HY 13/14 Highlights
HY 13/14 Highlights • A much quieter period than anticipated For personal use only • Constrained capital spend in the mining sector is delaying the purchase of new/replacement equipment and expenditure on maintenance of equipment • No loss of available market share • Gains in available market share
Slide 3: Revenue, EBITDA, Dividend Developments
HY 13/14 Revenue, EBITDA, Dividend Developments Revenue ($m) EBITDA ($m) For personal use only 350 60 300 50 250 40 21.0 132 200 165 2H 30.2 2H 1H 30 1H 150 113 18.7 85 20 16.6 100 77 10.7 63 157 11.0 30.1 50 125 106 10 19.9 28 95 91 13.1 17.0 43 67 4.6 12.4 8.2 29 3.9 7.9 0 0 FY07 FY08 FY09 FY10 FY
Slide 4: Financial Results - Summary
HY 13/14 Financial Results - Summary 1H 12/13 1H 13/14 Half on Half For personal use only $m $m % Change Revenue 157.0 106.4 -32% EBITDA 30.1 8.2 -73% NPBT 24.0 1.2 -95% NPAT 17.2 0.9 -95% EBITDA/Revenue 19.1% 7.7% -60% NPBT/Revenue 15.3% 1.1% -93% NPAT/Revenue 11.0% 0.8% -93% Basic Earnings Per Sha
Slide 5: Financial Results – Segment Revenue & EBITDA
HY 13/14 Financial Results – Segment Revenue & EBITDA 1H 12/13 1H 13/14 Half on Half For personal use only $m $m % Change Revenue: Australia 107.9 61.8 -43% Americas 42.3 42.8 2% Middle East 1.3 0.4 -69% Asia (Indonesia) 5.5 1.4 -75% 157.0 106.4 -32% EBITDA: Australia 19.7 3.6 -82% Americas 8.3 4.7
Slide 6: Financial Results – Segment Review (Group Result)
HY 13/14 Financial Results – Segment Review Group Result: • Inconsistent business conditions with customers delaying maintenance, capital and replacement For personal use only purchases • Australia has been the worst affected but mines are still producing at record levels which is expected to lead t
Slide 7: Financial Results – Segment Review (Australia, Asia)
HY 13/14 Financial Results – Segment Review Australia: • Reduced level of activity across all four East Coast coal-related operations during the first half due For personal use only to cost reduction initiatives by miners and contractors in the coal industry • This reduced demand for the manufacture
Slide 8: Financial Results – Segment Review (Americas)
HY 13/14 Financial Results – Segment Review Americas: North America: For personal use only • Solid revenues for Westech for the first half and a good operating result which met expectations, despite a North American market that is showing no signs of growth • Canadian Tar Sands continues to be a sou
Slide 9: Balance Sheet & Cash Flow
HY 13/14 Balance Sheet & Cash Flow • Ongoing Balance Sheet strength with Net Assets Jun-13 Dec-13 increasing by 13% from June 2013 (27% on pcp) , For personal use only $m $m with most of the increase being cash retained from equity raising in December 2013 Working Capital 26.7 22.0 • A reduction in
Slide 10: Business Update - Australia (Queensland)
Business Update - Australia Queensland: For personal use only Brisbane: • Quiet first half due to an ongoing reduction in the requirement for new and replacement mining products in the coal industry • Focus on cost reductions and efficiency improvements during this period • Operation enters the seco
Slide 11: Business Update - Australia (Western Australia)
Business Update - Australia Western Australia: For personal use only Perth: • Business conditions for the first half were below the exceptionally high levels of the previous year • Despite the lower revenue an above budget result was realised due to improved efficiencies and cost cutting initiatives
Slide 12: Business Update - Americas (North America)
Business Update - Americas North America – Westech: • Unexpected softening of sales opportunities within the North American gold mining industry due to For personal use only the lower than expected gold price, but there are signs that prices have stabilised • With the new restrictions on coal fire p
Slide 13: Business Update – Americas (cont’d), Indonesia & Middle East
Business Update – Americas (cont’d), Indonesia & Middle East South America (continued) Colombia: For personal use only • Colombia awaiting a number of tenders which will increase workload and lead to much higher revenue and profit contributions Peru: • Peru is expecting a higher financial result in
Slide 14: Expansion Plans Update
Expansion Plans Update Americas: • Servigrut acquisition completed in January 2014 For personal use only • Reviewing two facilities in Brazil to assemble product supplied from Colombia and Chile • Facilities will also allow Austin to compete in the maintenance/repair market in Brazil • The purchase
Slide 15: Business Update – Bradken Proposal
Business Update – Bradken Proposal • Austin has received a non-binding and highly conditional proposal from Bradken Limited For personal use only • The proposal is for all of the shares in Austin which it does not own, with a fixed exchange ratio of 0.75 Bradken shares for every one Austin share • T
Slide 16: Outlook
Outlook Industry themes: For personal use only • Market conditions continue to be inconsistent with results varying from month to month • Mining companies are still delaying expenditure on capital/replacement and maintenance programs Austin’s market position and response to market conditions: • Dema
Slide 17: Austin’s Principal Products
For personal use only Austin’s Principal Products Off-highway Buckets Water tanks Service modules dump truck bodies Tyre handlers Ancillary Industrial cooling and heat attachments transfer systems (COR Cooling)
Slide 18: Austin’s Principal Services
For personal use only Austin’s Principal Services Equipment Specialised Painting and repair and fabrication blasting maintenance Specialised On-site maintenance and shutdown machining and services (Pilbara Hire) line boring
Slide 19: Austin’s Brands
Austin’s Brands The Austin Engineering brand encompasses design and manufacture of mining and earthmoving For personal use only equipment, along with the provision of support services, from four Australian operations (Brisbane, Hunter Valley, Mackay, Perth), an Indonesian operation and Peruvian oper