Slide 1: Austal Limited
AUSTAL AUSTAL LIMITED LIMITED AUSTAL AUSTAL SHIPS SHIPS IMAGE IMAGE MARINE MARINE OCEANFAST OCEANFAST AUSTAL AUSTAL USA USA
Slide 2: The Austal Group
THE AUSTAL GROUP ! Austal Limited is an integrated aluminium shipbuilder based in Western Australia; ! The company operates from three construction yards in Henderson, WA and one in Mobile, Alabama in the USA; ! Austal’s product range includes passenger and vehicle passenger ferries, cruise yachts,
Slide 3: Austal Group Brand Divisions
AUSTAL GROUP BRAND DIVISIONS AUSTAL LIMITED Image Marine Oceanfast Austal Ships Austal USA 30% Bender Shipbuilding USA Vessels < 50 M Luxury Motor Vessels to 100+ M US Domestic Yachts Market Passenger Vehicle Ferries Ferries Full Austal Passenger Ferries Shipbuilding Live-aboard Defence Range Vessel
Slide 4: Strategy Perspectives
STRATEGY PERSPECTIVES ! Building shareholder value by targeting profitable markets and building long- term stable revenue streams; ! Growth strategy based on diversification of products and identification of new markets to reduce cyclical risk; ! Internal focus on production efficiency and costs; !
Slide 5: Vessel Deliveries Since ASX Listing
VESSEL DELIVERIES SINCE ASX LISTING Image Marine Acquisition Oceanfast Acquisition & Austal USA Establishment 25 20 15 No. of vessels 10 5 0 1998 1999 2000 2001 2002 *2003 *2004 Pax Ferries Car Ferries Live-aboards Cruise Motor Yachts Patrol/Crew Boats * Based on current order book
Slide 6: Vessels Under Construction
VESSELS UNDER CONSTRUCTION Austal Ships • 2 x 69 metre cruise yachts for Tahiti; • 86 metre vehicle-passenger catamaran for North America; • 66 metre vehicle-passenger catamaran for Fred Olsen; • 49.9 metre vehicle-passenger ferry for Kangaroo Island. • 56 metre passenger ferry for Tahiti Image " 2
Slide 7: Vessels Under Construction
VESSELS UNDER CONSTRUCTION Oceanfast " 54 metre full displacement steel hull motor yacht; " 56.5 metre full displacement steel hull motor yacht; " 58 metre high speed luxury motor yacht; " 53 metre luxury motor yacht. Austal USA " 34 metre dinner cruise vessel for Miami; " 43.5 metre passenger ferry
Slide 8: Financial Perspectives
FINANCIAL PERSPECTIVES ! Listed on the ASX in December 1998 and is now capitalised at $153 million; ! Track record of profits despite cyclical nature of the industry and short-term troughs; ! Balance of revenue streams across key product and geographic markets; ! Demonstrated ability to build long-t
Slide 9: 2003 Half Year Results
2003 HALF YEAR RESULTS ! Net loss of $13.5 million for half year to 31 December 2002; ! Cost overruns at Oceanfast and Austal USA ! Delay in delivery of 86 metre fast ferry for CATS to enable port facilities to be completed; ! Anticipated full year loss; ! Traditional Austal/Image commercial busines
Slide 10: Operational Changes for Improved Performance: Oceanfast
OPERATIONAL CHANGES FOR IMPROVED PERFORMANCE Oceanfast " Standardisation of contract specifications; " Application of more efficient production practices; " Structural changes to project management to better suit demands of current and future projects.
Slide 11: Improved Production Efficiencies at Oceanfast
IMPROVED PRODUCTION EFFICIENCIES AT OCEANFAST Improved production techniques and efficiencies are evident from the decrease in aluminium and steel fabrication overruns at Oceanfast, after the first 10 months of production of each vessel ALUMINIUM STEEL Cost of overruns Cost of overruns Hull 75 Hull
Slide 12: Operational Changes for Improved Performance: Austal USA
OPERATIONAL CHANGES FOR IMPROVED PERFORMANCE Austal USA " Implementation of an increased understanding of regulatory requirements for U.S. built vessels which will result in lower design and production costs; " Continued focus on increasing the workforce and implementation of training programs to en
Slide 13: Revenue History
AUSTAL REVENUE HISTORY A$ million 50 150 250 350 450 1998 1999 2000 2001 2002
Slide 14: Financial History
AUSTAL FINANCIAL HISTORY Operating profit before tax Net profit after tax A$ million 0 5 10 15 20 25 30 35 40 1996 1997 1998 1999 2000 2001 * ** 2002 Average * Operating profit before tax adversely effected by foreign exchange loss of $9.5M ** Tax favourably impacted by prior year tax adjustment of
Slide 15: Financial History
AUSTAL FINANCIAL HISTORY Dividend Earnings per share Cents 0 5 10 15 20 1999 2000 2001 2002 Average
Slide 16: Financial Position
FINANCIAL POSITION December 2002 June 2002 $M $M TOTAL CURRENT ASSETS 101.7 142.3 TOTAL NON-CURRENT ASSETS 107.3 90.8 TOTAL CURRENT LIABILITIES 87.6 94.0 TOTAL NON-CURRENT LIABILITIES 0.5 4.5 NET ASSETS 120.9 134.6 INCLUDES CASH OF 51.0 48.3
Slide 17: Non-Current Receivables
NON -CURRENT RECEIVABLES NON-CURRENT NON-CURRENT DEC 2002 JUNE 2002 RECEIVABLES $M $M Austal Group Management 15,463 15,103 Share Plan Provision for loss on AGMSP (4,084) Conferry (loans – payable over 8,800 2,116 the next 4 years) Euroferrys (10% preference 7,729 8,464 shares redeemed out of profit
Slide 18: Austal Group Inventory
AUSTAL GROUP INVENTORY December 2002 June 2002 $M $M TOTAL WORK IN PROGRESS 43.6 80.7 NB: Decrease is due to the delivery of an 86 metre vehicle-passenger ferry for Conferry
Slide 19: Cash Assets
CASH ASSETS 60 50 40 $ millions 30 20 10 0 31-Dec-02 28-Feb-03 30/06/2003 31/12/2003 (Forecast) (Forecast)
Slide 20: Market Competitiveness
AUSTAL GROUP MARKET COMPETITIVENESS Total Market number of Estimated Market Share vessels* Vehicle Ferries 26 Passenger Ferries 85 Patrol Boats 223 Motor Yachts 81 Mini Cruise 8 0% 10 % 20% 30 % 40 % 50 % * Based on orders published from start January 2001 to end February 2003 (Source: Internal Aust
Slide 21: Austal - The Future
AUSTAL - The Future Austal Ships and Image Marine - Commercial and Defence Austal Ships " Consistent revenue and profit performance: " Continued product diversification in addition to ferries : - cruise - defence - patrol boats (eg. RAN patrol boats) Image Marine " Continued specialisation in core p
Slide 22: Austal - The Future
AUSTAL - The Future Austal Ships and Image Marine - Commercial and Defence Continued development: - meet operators requirements; - address the needs of new applications for high speed vessels; - maintain technological advantage over other shipyards Product development evident through an increase in
Slide 23: Austal - The Future
AUSTAL - The Future Oceanfast " Increased share of the lucrative luxury motor yacht market " Interest from benchmark quality product i.e. “Aussie Rules”
Slide 24: Austal - The Future
AUSTAL - The Future Austal USA " Existing orders a significant step in US yard becoming a major supplier of aluminium vessels to the US commercial market; " Development of facilities and workforce to participate in future major US military projects e.g. Littoral Combat Ship and Theatre Support Vesse
Slide 25: Military Applications: Littoral Combat Ship
AUSTAL - The Future Military applications of high-speed multi-hull vessels: Littoral Combat Ship " Current bid for a preliminary design is to be submitted by 14 April 2003. " Result and selection for preliminary design will be 90 days after submission ie mid July 2003 and 2 - 3 teams will be awarded
Slide 26: Military Applications: US Army Theatre Support Vessel
AUSTAL - The Future Military applications of high-speed multi-hull vessels: US Army Theatre Support Vessel " Tender released in May 03 with a submission date in October 03. " Selection of one builder. " First vessel to commence in 04. " 7 vessels to be built over an unspecified time frame (estimated
Slide 27: In Closing
AUSTAL - The Future In closing… " Core commercial business is profitable with enquiries being received across the product range; " Group financial position remains strong; " Vehicle/passenger ferry market still subdued; " Lessons learned and skills acquired at Oceanfast to facilitate an increased sh
Slide 28: Austal Limited
AUSTAL AUSTAL LIMITED LIMITED AUSTAL AUSTAL SHIPS SHIPS IMAGE IMAGE MARINE MARINE OCEANFAST OCEANFAST AUSTAL AUSTAL USA USA