Slide 1: Results Presentation H1FY13
Results Presentation H1FY13 For personal use only Andrew Bellamy, Chief Executive Officer 22 February 2012
Slide 2: Improving margins driving performance
Improving margins driving performance For personal use only Margins continue to improve at USA operations – 5.2% for H1 compared with 1.2% for the corresponding prior year period Losses from Australian operations have reduced sharply – forecast breakeven for FY13 Balance sheet significantly im
Slide 3: Major achievements
Major achievements For personal use only Major new contract confirmed: o JHSV 10 – US$144m USNS Spearhead (JHSV 1) delivered Opened new commercial vessel manufacturing facility in the Philippines profitable in H1FY13 Established strategic business units o Better aligns costs and revenue o En
Slide 4: Performing to previous Outlook
Performing to previous Outlook For personal use only November 2012 Outlook Current Status USA • Apply learning, improve margins • EBIT margin up to 5.2% • JHSV 10, LCS 14 & LCS 16 contracts • JHSV 10 awarded, LCS 14 & 16 expected • Revenue in excess of $700m for FY13 • Revenue $323.4m in H1, expecti
Slide 5: Financials
Financials For personal use only SHIPS SYSTEMS SUPPORT 5
Slide 6: Profit and Loss Summary
Profit and Loss Summary For personal use only Income statement H1FY13 H1FY12 Increase ($m) ($m) ($m) H1FY13 results Revenue 389.4 267.4 122 Sustained margin improvement in the Underlying EBITDA 28.4 2.7 25.7 USA, EBIT margin now 5.2% Reported EBITDA 24.0 2.7 21.3 Further US margins growth EBIT 12
Slide 7: Balance Sheet
Balance Sheet For personal use only Balance sheet H1FY13 ($m) end FY12 ($m) Balance sheet summary Total assets 839.0 826.0 Growth in asset base, reflecting Cash 78.4 51.8 increasing scale of USA business Restricted cash 84.3 52.9 Balanced sheet strengthened by Receivables 64.2 96.2 successful $7
Slide 8: Segment breakdown
Segment breakdown For personal use only USA H1FY13 ($m) H1FY12 ($m) Henderson H1FY13 ($m) H1FY12 ($m) Revenue 323.4 227.0 Revenue 46.5 32.5 EBIT* 16.7 2.6 EBIT (1.3) (7.8) EBIT margin (%)* 5.2 1.2 EBIT margin (%) (2.9) (24.1) Margin improvement continues Forecast to break even FY13 JHSV 1 deli
Slide 9: Capital expenditure
Capital expenditure For personal use only Segment ($m) H1FY13 H2FY13(f) FY13(f) FY12 USA 9.5 12.8 22.3 107.5 HSO 0.1 - 0.1 0.3 PSO 1.0 5.4 6.4 10.1 Service & Systems - 0.2 0.2 - Other - 0.8 0.8 - TOTAL: 10.6 19.3 29.8 117.9 Major capital expenditure program completed in FY12 (expansion of USA) M
Slide 10: Operations Update
Operations Update For personal use only SHIPS SYSTEMS SUPPORT 10
Slide 11: Order book
Order book For personal use only Order book of $2.2 billion at December 2012 – secures revenue until 2016, including: o Joint High Speed Vessels for US Navy x9 contracted x1 delivered (out of 10 vessel award) o Littoral Combat Ships for US Navy x4 contracted (out of 10 vessel award), plus x1 from
Slide 12: Littoral Combat Ship
Littoral Combat Ship For personal use only 10 ship award to Austal (plus 2 from General Dynamics) worth US$5.0 billion Total of 4 ships contracted, plus 2 from General Dynamics (1 delivered) LCS 14 & LCS 16 contracts expected H2FY13 LCS 4 sea trials planned H2FY13 “At the geo-strategic level
Slide 13: Joint High Speed Vessel
Joint High Speed Vessel For personal use only 10 ship award to Austal valued at US$1.6 billion All 10 ships contracted and first ship delivered JHSV 10 contract confirmed December 2012 JHSV 1 delivered December 2012 JHSV 2 USNS Choctow County preparing for sea trials SHIPS SYSTEMS SUPP
Slide 14: Cape Class Patrol Boat
Cape Class Patrol Boat For personal use only $330 million contract to design, manufacture and support 8 new CCPBs Underwrite activity at Henderson shipyard until H1FY16 CCPB 1 preparing for sea trials CCPB 1 naming ceremony in March 2013 CCPB 2 construction commenced CCPB 2 keel laying c
Slide 15: Philippines
Philippines For personal use only Enables Austal to compete in the global commercial market (e.g. ferries, wind farm support vessels) Started operations in February 2012, maiden profit reached this half Facility opened by Philippines President Benigno S. Aquino III First ship delivered Decem
Slide 16: Service and systems
Service and systems For personal use only Provides long-term opportunity and stability for Austal o Significant recurring revenue from post-delivery of vessels Austal’s IP and global footprint provides large opportunity to provide through life support for JHSV and LCS o Ships designed for 20 to
Slide 17: Strategy and Outlook
Strategy and Outlook For personal use only SHIPS SYSTEMS SUPPORT 17
Slide 18: USA defence outlook
USA defence outlook For personal use only • Bi-partisan views that mandated cuts to US Defence budget are a blunt instrument – will harm recovery USA “fiscal cliff” • Austal’s US order book is unaffected (funded from previous budgets) • Uncertainty in medium-term as Congress works through this chall
Slide 19: Strategy
Strategy For personal use only Increase our status as a prime defence contractor Use lessons learnt on first-in-class vessels to drive margin improvement in US Continue to refocus Henderson operations on the manufacture and support of defence vessels Expand commercial construction at our Philippines
Slide 20: Outlook
Outlook For personal use only Lessons learnt from a FY13 guidance for challenging period to deliver Strengthened balance sheet to $65-71m EBITDA $23-26m in stronger earnings from US deliver on $2.2 billion order book NPAT reaffirmed operations Long lead items in defence Further contracts expected In
Slide 21: Appendices – Austal Overview
Appendices – Austal Overview For personal use only Austal is a global defence prime contractor. The Company designs, constructs and maintains revolutionary platforms such as the Littoral Combat Ship (LCS) and the Joint High Speed Vessel (JHSV) for the United States Navy, as well as an extensive
Slide 22: Austal
Austal For personal use only Founded in 1988 and listed on the Australian Stock Exchange in 1998, Austal is a leading defence prime contractor, specializing in the design, construction and maintenance of high performance vessels for defence and commercial purposes Austal has a global footprint wit
Slide 23: Ships
Ships For personal use only Warships and Multi Role Vessels Advanced design, construction, engineering and support are Austal’s core competency 248 vessels constructed Delivered globally Defence Global defence prime contractor with significant programs in place Patrol Vessels US Navy’s Litto
Slide 24: Systems
Systems For personal use only Austal’s Systems division provides advanced integration, maintenance and command and control systems for defence and commercial applications Advanced Integration: Radars, communications, command and control systems and user- interfaces Maintenance: Through Life Supp
Slide 25: Support
Support For personal use only Austal has a large support offering through its regional centres London Washington Gibraltar Mobile Dubai Muscat Philippines Trinidad Singapore Darwin Perth Canberra Service products are tailored to address customer requirements Vessel and Fleet Maintenance Refit
Slide 26: 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