Austal Limited · ASX:ASB
Austal — ASX Spotlight Series 2016 - New York
24 slides from Austal's conference presentation, Mar 3, 2016
Slide 1: ASX Spotlight Series 2016 – New York
ASX Spotlight Series 2016 – New York For personal use only Andrew Bellamy, Chief Executive Officer 3 March 2016
Slide 2: Overview – about Austal
Overview – about Austal For personal use only Founded in 1988 and listed on the Australian Securities Exchange since 1998, Austal is a global shipbuilder and leading defence prime contractor specialising in the design, construction and maintenance of high performance vessels for defence and commerci
Slide 3: Overview – corporate snapshot
Overview – corporate snapshot For personal use only Share price (2 years) Board and management $2.60 John Rothwell AO Non Executive Chairman $2.40 $2.20 Giles Everist Independent Director $2.00 Jim McDowell Independent Director $1.80 $1.60 Andrew Bellamy Chief Executive Officer $1.40 (until 4 April
Slide 4: Overview – shipbuilding programs
Overview – shipbuilding programs For personal use only Order book of $2.8 billion at 31 December 2015 secures revenue through CY2020, including: o 10 Littoral Combat Ships for US Navy 10 funded, with 1 delivered, funding for eleventh vessel expected in FY2016 o 10 Expeditionary Fast Transports (fo
Slide 5: Objectives for sustained growth
Objectives for sustained growth For personal use only Strengthen Ongoing Target operations and objectives opportunities balance sheet • Shipbuilding margin • Maintain cash • Invest in R&D to grow achieved generation to support intellectual property programs and dividends base • Focus on applying lea
Slide 6: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 6
Slide 7: Revenue and underlying earnings
Revenue and underlying earnings For personal use only Revenue (A$m) EBITDA (A$m) NPAT (A$m) FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 H1 H1 H1 H1 1 H1 2 H1 H1 1 H1 2 H1 505.8 680.2 747.4 37.7 44.9 41.8 14.4 21.0 16.8 Revenue growth reflected favourable foreign exchange transla
Slide 8: Segment breakdown
Segment breakdown For personal use only ($m) Ships Systems Support Other1 Total Revenue 497.7 109.4 31.4 - 638.4 USA EBIT 27.4 0.8 3.3 (4.6) 26.9 EBIT Margin% 5.5 0.7 10.5 - 4.2 Revenue 78.8 - 26.8 - 105.6 Australia EBIT 8.8 - 3.5 (1.0) 11.3 EBIT Margin% 11.2 - 13.0 - 10.7 Revenue 15.1 - 1.2 - 16.3
Slide 9: Cash and debt
Cash and debt For personal use only Strong Operating cash flow FY2016 FY2015 FY2014 Cash flow H1 H1 H1 FY2015 H1 was enhanced by the sale of the (A$m) (A$m) (A$m) stock trimaran ($54.1 million) Operating 51.8 118.0 43.6 Continued discipline in capital expenditure Investing (2.4) (3.6) (2.0)
Slide 10: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 10
Slide 11: US Navy – Littoral Combat Ship
US Navy – Littoral Combat Ship For personal use only 10 ship contract awarded as prime contractor, worth US$3.5 billion and additional 1 ship option 2 LCS constructed and delivered by Austal for GD (LCS 2 and LCS 4) Margin and schedule pressure on LCS 6, 8 and 10. Austal implementing experienc
Slide 12: US Navy – Expeditionary Fast Transport
US Navy – Expeditionary Fast Transport For personal use only Formerly Joint High Speed Vessel (JHSV), renamed by US Navy to Expeditionary Fast Transport (EPF) 10 ship award to Austal valued at US$1.6 billion (fully funded), securing work through to CY2017 Program progressing well – matured int
Slide 13: Austal strongly positioned in US
Austal strongly positioned in US For personal use only Winning service contracts on Austal-built vessels have US Foreign Policy remains LCS and investing in support continued to be funded and focused on Asia-Pacific business to best position programs are maturing defence strategy Austal for addition
Slide 14: Australia – Cape Class Patrol Boats
Australia – Cape Class Patrol Boats For personal use only $330 million contract for the design, construction and through-life support of 8 Cape Class Patrol Boats for the Australian Border Force Final vessel delivered in August 2015 Austal now performing through-life support on 8 completed ves
Slide 15: Australia – High Speed Support Vessels
Australia – High Speed Support Vessels For personal use only US$124.9 million contract for the design, construction and integrated logistics support of two 72 metre High Speed Support Vessels for the Royal Navy of Oman Construction is progressing well at the Henderson shipyard o Sea trials HSSV
Slide 16: Australian defence shipbuilding
Australian defence shipbuilding For personal use only The Federal Government's plan for a strong and sustainable naval shipbuilding industry was announced 4 August 2015 and remains a firm priority for the Turnbull Government Initiative Impact on Austal The Government will invest over A large, long
Slide 17: Australian defence shipbuilding
Australian defence shipbuilding For personal use only Initiative Impact on Austal Advancing the Future Frigate Variant of Austal’s LCS is a potential platform for future frigate. programme to replace the ANZAC (Upgunned LCS soon to be classed as a frigate by US Navy) class frigates from CY2023 to Ot
Slide 18: Philippines
Philippines For personal use only Delivered two 45 metre high speed catamaran ferries to Abu Dhabi National Oil Company in August 2015 under a $30 million design and construct contract Commenced construction of two crew boats, to be delivered in Q3 CY2016: o 70 metre catamaran under US$34 millio
Slide 19: Systems and Support
Systems and Support For personal use only Austal is steadily adding experience and capability to deliver a growing portfolio of Naval sustainment contracts US expanding activity beyond own vessels: o Prime contractor for Post Shakedown Availability (PSA) and other post delivery test and trial pr
Slide 20: Strategy and Outlook
Strategy and Outlook For personal use only SHIPS SYSTEMS SUPPORT 20
Slide 21: Strategy
Strategy For personal use only Sustain the Strengthen the Diversify the Scale the business business business business • Maintain current • Improve margins • Grow annuity-style • Position Austal for annual revenue in by driving revenue by building future Navy medium to long- efficiencies / on existin
Slide 22: Pipeline for vessel programs
Pipeline for vessel programs For personal use only Pursuing opportunities to deliver on strategy by growing Austal’s order book and securing additional long-term revenue Target markets Vessels • US: strong potential to extend existing • Future frigate evolved from modified LCS and EPF programs Lit
Slide 23: Outlook
Outlook For personal use only LCS program to stabilise Good opportunity for award Best position Austal for and mature – greatest effect of additional LCS and EPF Pacific Patrol Boat to be on vessels at early in addition to existing block replacement, Future Frigate, stage construction buy contracts
Slide 24: Disclaimer
Disclaimer For personal use only Andrew Bellamy, 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 of