Slide 1: FY2019 Results Presentation
Austin Engineering Limited FY2019 Results Presentation 27 August 2019 www.austineng.com
Slide 2: Important Information
Important Information This presentation has been prepared by Austin Engineering Limited (ABN 60 078 480 136) (“Austin” or the “Company”). The information in this presentation should be read in conjunction with Austin’s continuous disclosure announcements. The information is of a general nature and h
Slide 3: Agenda
Agenda ▪ Overview ▪ Analysis of Financial Results ▪ Review of Operations ▪ Market Outlook and Guidance ▪ Appendices P3 Austin Engineering Limited FY2019 Results Presentation | August 2019 www.austineng.com
Slide 4: Overview
Overview • Operating cash inflows of $13.8 million the strongest in over 5 years and, together with Record operating $20.2 million raised from the sale of assets, delivered a significant cash injection in FY2019 cash flow • Operating cash flows were supported by a reduction in working capital of $7.
Slide 5: Analysis of Financial Results
Analysis of Financial Results Chief Financial Officer: Sam Cruickshank P5 Austin Engineering Limited FY2019 Results Presentation | August 2019 www.austineng.com
Slide 6: Financial Performance: Normalised
Analysis of Financial Results Financial Performance: Normalised • Revenue decreased by 14% compared to FY2018 FY % (pcp) due to: Period ending FY2019 2H2019 1H2019 FY2018 Change — Restructure of Hunter Valley operations and closure of unprofitable facility Revenue $M 235.7 113.6 122.1 275.2 (14%) —
Slide 7: Financial Performance: Statutory
Analysis of Financial Results Financial Performance: Statutory One-off net costs: Period ending FY2019 2H2019 1H2019 FY2018 FY % Change • One-off costs relate principally to non-cash net losses on disposal of assets from continuing operations and restructuring costs in Chile and Peru Revenue $M 235.
Slide 8: Asset Sales
Analysis of Financial Results Asset Sales Austin sold the majority of its non-core assets during FY2019 with $5.5 million of assets remaining to sell at 30 June 2019 • Four cranes and other minor assets remaining to be sold, actively marketed for sale • Chile property has an agreed contract for sale
Slide 9: Cash Flow
Analysis of Financial Results Cash Flow From continuing and discontinued operations Year ending 30 June Historical cash flow from operating activities 15 $M 2019 2018 2017 Cash flows from operating activities 10 NPAT (4.6) (11.9) (27.6) 5 Add: - • Depreciation and amortisation 6.5 10.8 11.2 • Impair
Slide 10: Working Capital
Analysis of Financial Results Working Capital As at As at As at Tight management of working capital remains 30 Jun 31 Dec 30 Jun a key focus for the business 2019 2018 2018 Net working capital at 30 June 2019 decreased $M by $7.4 million on pcp to $22.1 million due to: • Receivables (-29%) — reducti
Slide 11: Balance Sheet
Analysis of Financial Results Balance Sheet As at As at 30 Jun 30 Jun Gearing Summary 2019 2018 Net Debt and Gearing Total Assets $M 177.4 223.8 $’m Total Shareholders Funds $M 101.4 104.2 100.0 Net Debt - 40% discontinued Facilities related to continuing and discontinued operations 80.0 operations
Slide 12: Review of Operations
Review of Operations Managing Director: Peter Forsyth P 12 Austin Engineering Limited FY2019 Results Presentation | August 2019 www.austineng.com
Slide 13: FY2019 Americas
Review of Operations by Region FY2019 Americas Americas FY% Iron Ore FY2019 2H2019 1H2019 FY2018 Change Coal USA Revenue $M 122.8 67.2 55.6 136.2 (10%) Copper Chile Gold Colombia EBITDA (normalised) $M 12.3 8.4 3.9 8.1 52% Oil Peru EBITDA margin % 10.0% 12.5% 7.0% 5.9% 69% USA • USA delivered a mode
Slide 14: FY2019 Australia
Review of Operations by Region FY2019 Australia Iron Ore Australia FY% FY2019 2H2019 1H2019 FY2018 Change Coal Brisbane Perth Revenue $M 96.9 38.4 58.5 124.0 (22%) Copper Mackay Gold Hunter Valley EBITDA (normalised) $M 4.4 (0.3) 4.7 7.9 (44%) Oil EBITDA margin % 4.5% na 8.0% 6.4% (29%) Operations •
Slide 15: FY2019 Asia
Review of Operations by Region FY2019 Asia Asia FY % Iron Ore FY2019 2H2019 1H2019 FY2018 Change Coal Indonesia Revenue $M 16.0 8.0 8.0 15.0 7% Copper Gold EBITDA (normalised) $M 4.3 1.9 2.4 4.3 - Oil EBITDA margin % 26.9% 23.7% 30.1% 28.7% (6%) Operations • This region delivered earnings comparable
Slide 16: Safety
Review of Operations Safety Safety statistics • Total Reportable Incident Frequency Rate (TRIFR) LTIFR which is reported on a 12 month rolling average, 35 has fallen from 29 in FY2015 to 16 in FY2019 30 • Lost Time Injury Frequency Rate (LTIFR), Other Machinery and Frequency rate also reported as a
Slide 17: People
Review of Operations People Board and Leadership Team and Headcount Board and Leadership team Austin headcount at year end, by region • David Singleton appointed as 3,000 Non-Executive Director on 15 April 2019 Asia • Sam Cruickshank permanently appointed 2,500 Chief Financial Officer on 11 January
Slide 18: Awards
Review of Operations Awards AFR BOSS Most Innovative Companies in 2019 Consumable lower Reusable Upper structure structure Austin ranked Second Most Innovative Company • In the AFR BOSS 2019 list of the top 10 most innovative companies, Austin Engineering was ranked second in the “Agriculture, Minin
Slide 19: Market Outlook and Guidance
Market Outlook and Guidance Managing Director: Peter Forsyth P 19 Austin Engineering Limited FY2019 Results Presentation | August 2019 www.austineng.com
Slide 20: Commodity Analysis
Market Outlook and Guidance Commodity Analysis Iron Ore, Coal and Copper Prices Iron Ore / Coal A$ per Tonne 180 10000 9500 160 9000 Copper A$ per Tonne 140 8500 8000 120 7500 Iron Ore 7000 Coal 100 6500 Copper 80 6000 5500 60 5000 Jul-17 Mar-18 May-18 Jul-18 May-19 Jul-19 Sep-17 Feb-18 Sep-18 Feb-1
Slide 21: Austin's Macro View
Market Outlook and Guidance Austin’s Macro View Source: Rio Tinto Limited | 2019 Half Year Results Presentation | 1 August 2019 Source: theparkerbaycompamy.com • Parker Bay Surface Mining Equipment Index tracks the • Rio Tinto, one of Austin’s major clients, have announced purchase of new equipment
Slide 22: FY2020 Outlook
Market Outlook and Guidance FY2020 Outlook • Order book and committed work is mixed throughout the group — Perth, Australia has a strong order book and a number of orders pending — USA is being impacted by trade disputes with indications that a number of clients are deferring procurement decisions u
Slide 23: Appendices
Appendices: – Competitive advantage – Market analysis – Operations – Products and services P 23 Austin Engineering Limited FY2019 Results Presentation | August 2019 www.austineng.com
Slide 24: Competitive advantage
Appendix: Competitive advantage Market leading position Improving financial position • Large global producer of custom truck • Significant reduction in net debt levels to bodies and buckets levels below 1 times normalised EBITDA • Strategically located across four • Optimised asset holding, non-core
Slide 25: Market analysis
Appendix: Market analysis The Americas Australia Asia • History of success with the strong • New truck body innovations have • Batam is a world-class facility, Austin Westech product brand created business opportunities meeting Austin’s global standards • Existing customer base, particularly • Stron
Slide 26: Operations
Appendix: Operations Australia • Located on the east and west coast, providing an array of manufacturing, repair and support services Brisbane Perth • Perth is the largest workshop in Australia Mackay • Mackay is focussed on body/bucket repairs and maintenance Hunter Valley • New product supplied to
Slide 27: Products and services
Appendix: Products and services Austin Engineering Products Service • Leading designer and manufacturer of customised dump truck • A complete service provider, offering on and off-site repair and bodies, buckets and ancillary products used in the mining maintenance to customers including miners, min
Slide 28: www.austineng.com
Innovation Update Austin Engineering Limited www.austineng.com www.austineng.com