Slide 1: 2005 Annual Results Presentation
2005 Annual Results Presentation www.austal.com
Slide 2: 2005 Financial Highlights
2005 Financial Highlights • Net profit after tax $35.5m (up 76%) • EPS 18.5 cents • Dividend 9 cents fully franked • Share Buy-Back 3.6m shares (1.8%) • Austal USA $1.4m loss www.austal.com
Slide 3: Five Year Summary
Five Year Summary $ million 2001 2002 2003 2004 2005 Revenue 194.5 343.6 307.7 310.1 321.3 EBIT 2.0 33.5 -39.4 24.4 41.3 EBIT % 1% 10% -13% 8% 13% Profit before tax 3.1 35.1 -36.7 24.7 42.5 Tax expense 10.7 -5.9 12.5 -5.0 -7.6 OEI 0.7 1.1 5.5 0.4 0.6 Net Profit 14.5 30.4 -18.7 20.1 35.5 EPS (cents)
Slide 4: Recent and Current Projects
Recent and Current Projects 58m cruise 36m cruise 6 x NSW Patrol Boats 2 x 45m ferries 67m ferry 38m cruise 85m ferry 12 x RAN Patrol Boats 50m cruise 2 x 47.5m ferries 127m ferry 10 x Yem en Patrol Boats 56m ferry 3 x Kuw ait patrol boats 86m ferry 2003 2004 2005 2006 2007 2008 www.austal.com * Bas
Slide 5: Current Orders
Current Orders • 6 x 16m patrol boats • 37m cruise vessel • 45m passenger ferry • 45m vehicle-passenger ferry • 11 (13) x 56m patrol vessels • 58m charter / cruise vessel • 67m vehicle-passenger ferry • Littoral Combat Ship design www.austal.com Confirmed contracts at June 30, 2005
Slide 6: Typical cost structure of an Austal vessel
Typical cost structure of an Austal vessel 10% 21% Labour Aluminium 8% Main engines, waterjets, gearboxes etc 38% Other materials, overheads and general expenses 23% EBIT www.austal.com
Slide 7: Outlook for 2006
Outlook for 2006 • Australian operations well placed in potential contracts – outcomes will be known in the second half of the calendar year. • US operations – profit contribution expected in 2006 following confirmation of Hawaii project and initial Littoral Combat Ship. www.austal.com
Slide 8: Outlook for 2006
Outlook for 2006 • Total forward orders of $288m at 30 June 2005. Following to be confirmed by 31 December 2005; – 2 x Hawaii Superferry $215m – 1 x LCS vessel $150m – 2 x RAN patrol boats $50m – Commercial orders ???m TOTAL $415m + www.austal.com
Slide 9: Austal Limited in 3 - 5 years
Austal Limited in 3 - 5 years Austal Limited Austal Ships Austal (USA) “Austal Defence JV” & (70% held) Austal Image Revenue Revenue Revenue Presently $313m pa Up to $300m pa (now $15m) More than $400m pa Mature Business Evolving Business Opportunities Commercial Ferries Littoral Combat Ship Amphibi
Slide 10: Austal USA Expansion
Austal USA Expansion • Completion of US$18m expansion due in October 2005 • Funded by – Grants : US$10m from City of Mobile / State of Alabama – Loan : US$6m from General Dynamics www.austal.com
Slide 11: Austal USA
Austal USA Northern Expansion Existing Facility www.austal.com
Slide 12: US Manpower
US Manpower • Production manpower presently 300 • Requirement for 360 at 31 December 2005 • Ultimate requirement over 600 www.austal.com
Slide 13: Status of Hawaii project at 30 June 2005
Status of Hawaii project at 30 June 2005 • Closing due in September • Change in engine from MAN to MTU requiring MARAD approval • Environment issues – Hawaii Superferry successful at State level but now in Federal arena. HSF do not expect this to delay Closing. www.austal.com
Slide 14: Status of Hawaii project at June 2005
Status of Hawaii project at 30 June 2005 www.austal.com
Slide 15: US Navy Littoral Combat Ship
US Navy Littoral Combat Ship • Austal is ship designer and builder in one of two teams. • Austal partnered with General Dynamics. • “Flight 0” comprises 4 ships – two for each team. • Construction of first GD/Austal vessel expected to commence in Oct 2005. • US Navy advise requirement for up to 75 v
Slide 16: US Navy Littoral Combat Ship
US Navy Littoral Combat Ship www.austal.com
Slide 17: Public Statements by US Navy
Public Statements by US Navy • “absolutely convinced…there will be a rush to build 50…and then a move for another 25 or 50 ships” – Admiral Vern Clark, Chief of Naval Operations – 3 June 2005 www.austal.com
Slide 18: Status of LCS
Status of LCS • Awaiting exercise of option for initial vessel in October 2005 following passage of US Budget. • Second vessel option must be exercised by the end of 2006. www.austal.com
Slide 19: Potential large volumes of LCS vessels
Potential large volumes of LCS vessels • US Navy long term force structure sent to Congress in March calls for; – 7 vessels by 2010 – 27 vessels by 2014 – 52 vessels by 2019 – Up to 75 vessels by 2024 • Austal has the leading edge vessel design. www.austal.com
Slide 20: Austal 127m LCS
Austal 127m LCS • Length 127.1 metres • Beam 30.4 metres • Speed 41 to 48 knots • Range Over 4000 nm • Flight Deck 1030 sqm • Delivery 30 September 07 www.austal.com
Slide 21: LCS based on proven commercial technology
LCS based on proven commercial technology www.austal.com
Slide 22: Australian Naval Opportunities
Australian Naval Opportunities • Australian Submarine Corporation to be privatised – Holds 25 year submarine maintenance contract – Recently awarded preferred builder for the $6 billion AWD contract • Amphibious Ship Project - $2 billion – $1.5-$2.0b project, with contract award in early 2007 – Proj
Slide 23: Summary
Summary • Increasing diversity and reliability of earnings – Market leader in high speed ferries – Growth in Middle East and Asia for patrol vessels • Large potential growth; – for the US$16.5 billion Littoral Combat Ship Project – conventional naval shipbuilding in Australia • Continuation of share
Slide 24: Location of Austal vessels
Location of Austal vessels Norway Germany Estonia Denmark UK Ireland Greece Milwaukee New York Portugal Turkey Miami Canaries Spain Japan Bahamas Malta Kuwait French Caribbean Italy Saudi Arabia China Mexico Hong Kong Venezuela Yemen Malaysia Singapore Maldives Indonesia Darwin New Caledonia Tahiti