Slide 1: Financial Year 2017 Results Presentation
Austin Engineering Ltd Financial Year 2017 Results Presentation For personal use only 31 August 2017
Slide 2: Contents
Contents For personal use only Page 1 Summary 3 2 FY17 results 5 3 Strategy and safety 14 4 Outlook 18 5 Appendix: Austin operations, products and services 20 Page 2 www.austineng.com.au
Slide 3: 1. Summary
For personal use only 1. Summary
Slide 4: Summary
Summary For personal use only Improving industry • The major commodity markets are progressively improving, with clients re-investing conditions ✔ in replacement of large mining fleet components. Improved products and • Ongoing improvements in engineering and design have resulted in enhanced service
Slide 5: 2. FY17 results
For personal use only 2. FY17 results
Slide 6: Financial performance (normalised results)
Financial performance Normalised results (#039;m) FY16 1H17 2H17 FY17 FY17 Revenue and profitability Revenue 188.2 91.0 143.3 234.3 For personal use only Trading: Growth 57.6% 24.5% • After difficult industry conditions in FY16 and 1H17, Austin Gross profit 56.3 27.7 43.6 71.3 has traded strongly in 2H
Slide 7: Financial performance (statutory results)
Financial performance Statutory results (#039;m) FY16 1H17 2H17 FY17 FY17 Statutory results Revenue 188.2 91.0 143.3 234.3 For personal use only Asset impairment: Growth 57.6% 24.5% • Impairment charges ($19.2 million) were applied to Chile, Gross profit 56.3 27.7 43.6 71.3 Australian Site Services and
Slide 8: Diversified revenue
Diversified revenue 1 FY17 Revenue by region 3 FY17 Revenue by customer type For personal use only 7% 4% 3% Miners Australia 45% Mining Americas 35% contractors 58% OEM's 48% Asia Other 2 FY17 Revenue by commodity 4 FY17 Revenue by product and service 6% Maintenance 16% Iron Ore 4% /Repairs 8% Tray
Slide 9: Working capital and capital expenditure
Working capital and capital expenditure FY17 Working capital growth ($’m) FY17 Capital expenditure ($’m) For personal use only 100.0 6.0 80.0 60.0 5.0 5.2 40.0 20.0 4.0 - 3.0 (20.0) (40.0) 2.0 (60.0) (80.0) 1.6 1.0 30 June 2016 30 June 2017 Payables (36.5) (55.7) Inventory 15.8 31.6 0.0 Receivables
Slide 10: Cash flow and net debt
Cash flow and net debt Cash flow (#039;m) 1H17 2H17 FY17 Net debt ($’m) 30 June 2017 Cash flows from operating activities LIM term loan 20.1 For personal use only NPAT (5.7) (21.9) (27.6) Australian working capital facility 7.3 Add: depreciation and amortisation 5.6 5.6 11.2 Other facilities 22.1 Add:
Slide 11: FY17 by region: Australia
FY17 by region Australia (#039;m) FY16 FY17 Iron Ore Australia Coal For personal use only Brisbane Revenue 92.2 104.6 Perth Copper Mackay EBITDA (normalised) 1.5 9.5 Gold Hunter Valley EBITDA margin 1.6% 9.1% Other Operations: • Perth operations delivered improved earnings in FY17, as major mining comp
Slide 12: FY17 by region: Americas
FY17 by region Americas (#039;m) FY16 FY17 Iron Ore Americas Coal For personal use only North America Revenue 89.7 112.3 Colombia Copper EBITDA (normalised) 5.3 3.1 Chile Gold Peru EBITDA margin 5.9% 2.8% Other North America: • Activity levels were subdued for the majority of the year, with improvement
Slide 13: FY17 by region: Asia
FY17 by region Asia Asia (#039;m) FY16 FY17 Iron Ore For personal use only Indonesia Revenue 6.3 17.4 Coal EBITDA (normalised) 0.3 1.7 Copper EBITDA margin 4.8% 9.8% Operations: • Performance significantly improved in 2H17 as a result of higher utilisation of facilities. • Utilisation increased as Aust
Slide 14: 3. Strategy and safety
For personal use only 3. Strategy and safety
Slide 15: Strengths
Strengths For personal use only Market leading position Visibility over orders • Large global producer of custom truck • High visibility over orders for the next six bodies and buckets. months. • Strategically located across four • Recurring revenue from repairs and continents including Australia, A
Slide 16: Strategy
Strategy • Focus on re-orienting the business to provide clients with engineering solutions combined with high quality and efficient manufacturing capability. For personal use only To be the largest supplier of truck • Restructure of engineering centres to form one global engineering operation. bodi
Slide 17: Safety
Safety FY17 Safety statistics Summary For personal use only 2,500 12 Statistics: 10 • Headcount has increased from 1,772 at 30 June 2016 to 2,000 2,174 at 30 June 2017. 8 1,500 • Improved fatigue management has been achieved without 6 materially impacting on the average man hours per 1,000 4 employe
Slide 18: 4. Outlook
For personal use only 4. Outlook
Slide 19: Outlook
Outlook Revenue pipeline 1H18 EBITDA outlook ($’m) For personal use only 16 +100% 14 +80% 12 10 +60% 8 +40% 6 4 +20% 2 - - 2H17 1H18 2H17 1H18 Actual Outlook Committed work Other forecast revenue Actual • 2H17 guidance (February 2017) included order book and • Based on the current order book and com
Slide 20: 5. Appendix: Austin operations, products and services
For personal use only 5. Appendix: Austin operations, products and services
Slide 21: Operations
Operations • Located in the east and west coast, providing an array of manufacturing, repair and support services. For personal use only • Perth is the largest workshop in Australia. Australia • Mackay and Hunter Valley are focussed on body/bucket repairs and maintenance. Brisbane Perth • Austin Sit
Slide 22: Products and services
Products and services Austin Engineering For personal use only Products Services • Leading designer and manufacturer of customised • A complete service provider, offering on and off-site dump truck bodies, buckets and ancillary products repair and maintenance and heavy equipment lifting to used in t
Slide 23: Disclaimer
Disclaimer 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 has been pre