Austal Limited · ASX:ASB
Austal — Shareholder Meeting (November 2019)
25 slides from Austal's shareholder meeting presentation, Nov 1, 2019
Slide 1: Annual General Meeting 2019
Annual General Meeting 2019 David Singleton, CEO Ships in Build ESG Reporting FY 2020 Guidance
Slide 2: FY2019 best year ever - CEO overview
For personal use only • By almost any measure the financial year 2019 has been our best ever, whether we measure revenue, profits, cash levels, order book or share price. • The performance is a result of across the board improvements which have been delivered by the management teams running the busi
Slide 3: New contracts, deliveries and vessels under construction
For personal use only New contracts; 1 x Auto Express 94 - Hull 397 - Trinidad and Tobago Government (NIDCO) 4 x LCS (32, 34, 36, 38) - US Navy 4 x Aulong (AL007, 8, 9, 10) - Shenzhen Airport, Beibi Gulf, Blue Sea Jet, Shenzhen Pengxing 2 x EPF (13 and 14) - US Navy - Contracts announced 26 March 20
Slide 4: Ships under construction, scheduled and sustainment
8 x GCPBS - Hulls 521 to 528 Commonwealth of Australia 1 x Hull 393 Molslinjen Express 4 1 x Hull 394 Fred Olsen SA (Trimaran 1 of 2) - Australia 1 x Hull 396 JR Kyushu Beetle 1 x Hull 419 Fjord Line For personal use only 1 x Hull 420 VS Grand Ferries 1 x Hull 680 Braveline 1 1 x Hull 681 Braveline
Slide 5: Asia expansion and procurement
For personal use only • Continue to see major opportunities in the USA (See later slides) assisted by good schedule, quality and cost performance on the current programs. • Asia expansion has fundamentally changed our business and made us much more competitive. • Historic average turnover in Philipp
Slide 6: LCS program
For personal use only • LCS Deliveries in FY2019 – 2 (18 and 20). • LCS Orders in FY2019 – 4 (32, 34, 36, 38). • LCS 16 and 18 were commissioned during FY2019. • LCS has been the largest program ever won by Austal with 19 vessels ordered encompassing deliveries out to 2024. It is emblematic of Austa
Slide 7: Scale model of USS Canberra gifted
For personal use only US President Donald Trump gifted a scale model of the future USS Canberra (LCS30) to Australian Prime Minister Scott Morrison during a State Visit to the USA in September 2019. 6
Slide 8: EPF delivered and under construction
For personal use only • EPF 10 delivered • EPF’s 11 and 12 under construction • EPF13 long lead materials ordered (Contract US$57M received Oct 2018). • EPF’s deployed around the globe; • EPF1 Spearhead – USA (East Coast) • EPF2 Choctaw County – Bahrain • EPF3 Millinocket – Malaysia • EPF4 Fall Rive
Slide 9: FFG(X), EPF and unmanned surface vessels
For personal use only FFG-X • Successor to the LCS program. • Austal has now made its commercial and technical offer and expects a result by July 2020 at the earliest and September by the latest, subject to approvals. • USN has indicated contract form could be a 10 ship block buy if all options are
Slide 10: Philippines shipyard
For personal use only Delivered FY2019; • 1 x 30 metre catamaran ferry for VS Grand Ferries, Philippines. • 2 x 50 metre catamaran ferries for Brave Line, Taiwan. Currently constructing; • 1 x 109 metre catamaran ferry for Fjord Line, Norway. • 1 x 117 metre trimaran for Fred Olsen SA, Spain. • New
Slide 11: Philippines order book and builds
For personal use only • We now have 3 ships in the order book to be built in this facility with a total order value approaching A$350m which is a record for this facility. The current vessel in full construction is a 109m catamaran for Fjord Line. This is a very challenging build as it is the first
Slide 12: Philippines Offshore Patrol Vessel bid
For personal use only • We have been working on a bid for an Offshore Patrol Vessel program for nearly 2 years. • The vessel is an evolution of our Cape vessel but designed specifically for the Philippines. • The procurement budget has been announced by the PN Navy as circa A$800m for 6 ships over c
Slide 13: Vietnam shipyard
For personal use only • Our move to Vietnam has been very successful so far. We have recruited an excellent mostly ex-Austal management team who had previously been building aluminium ships for the now defunct Strategic Marine company. • We have built a good local team of management supervisors and
Slide 14: Aulong joint venture in China
For personal use only Aulong joint venture with Jianglong Shipbuilding of Guandong • Delivered 42 metre ferry to Blue Sea Jet, China - January 2018. • 5 additional ferries under construction / scheduled. • 1 x 35 metre ferry for Blue Sea Jet. • 4 x 42 metre ferries for Xidao Dazhou Tourism Co Ltd. •
Slide 15: Molslinjen Express 4
For personal use only Hull 393 (Express 4) for Molslinjen of Denmark • Construction commenced 26 April 2017. • Rolled out 18 August 2018. • Launched 16 October 2018. • Delivered 30 January 2019. • Largest (by volume) vessel Austal has built. • Capacity for over 1000 passengers, 425 cars, travelling
Slide 16: Guardian class patrol boats
For personal use only • Four of 21 GCPB have been delivered in FY19 – PNG, Tuvalu, Tonga, Samoa. • Fifth GCPB to be delivered at handover ceremony on 8 November – H525 'Gizo' - Solomon Islands. • Hull 521 (GCPB#1) – First Guardian-class Patrol Boat constructed under Commonwealth of Australia’s Pacif
Slide 17: Australian shipyard outlook
For personal use only Australia is now seeing the impact of the very strong order intake that we achieved in 2017 and 2018. In this financial year we will be launching and delivering; • 4 Guardian Class Patrol Boats. • A 117m Trimaran for Fred Olsen to be based in the Spanish Canary Islands. • A 82m
Slide 18: Trimaran for Fred Olsen SA
Hull 394 – the next big project at Henderson shipyard • 117 metre trimaran for Fred Olsen SA. • 2 x identical vessels to be built under contract valued at A$190million. • 2nd trimaran (H395) to be built at Austal Philippines. • Plate cutting for H394 conducted 20 August 2018. For personal use only 1
Slide 19: Trimaran for JR Kyushu
For personal use only • 83 metre Trimaran (Hull 396) for JR Kyushu, Japan. • Route is between Fukuoka, Japan and Busan, South Korea. This vessel is a great example of how Austal as a technology company wins work. JRK currently runs jet foil vessels between S Korea and Japan. These vessels are ageing
Slide 20: Trinidad and Tobago Coast Guard Cape class
For personal use only Trinidad and Tobago Coast Guard – Hulls 398 and 399 • 2 x Cape Class Patrol Boats (58 metre monohulls). 18
Slide 21: MARINELINK
For personal use only MARINELINK • Austal's MARINELINK suite of products has been expanded to offer greater vessel and fleet management capability. • MARINELINK - original monitoring and control system fitted to over 160 vessels since 1996. • MARINELINK - Smart expands on MARINELINK to offer live (r
Slide 22: ESG reporting
For personal use only This year we published our first Environmental Social Governance report one year ahead of what is required by the ASX. The report lays out what Austal has been doing in this area and is available for people to read in the corporate governance section of our website. • On Enviro
Slide 23: Community and charitable works
• Extended our charitable works to the Philippines with worker groups undertaking community works like refurbishing classrooms at a local school. • Rewritten our Charitable mandate to maximise our impact and employee involvement. For personal use only 20
Slide 24: FY2020 guidance
For personal use only Whilst it is too early to update guidance we continue to stick with that given in late August/ Early September this year. It was pleasing to recently sign a contract for another large vessel for Mols to create continuity in the Philippines production program. Additional work to
Slide 25: Disclaimer and contact
Disclaimer David Singleton, 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