Austin Engineering Limited · ASX:ANG
Austin Engineering — Investor Presentation (May 2016)
27 slides from Austin Engineering's investor presentation, May 2016
Slide 1: Capital Raising Presentation
Austin Engineering Ltd Capital Raising Presentation For personal use only May 2016
Slide 2: Disclaimer
Disclaimer This investor presentation (Presentation) has been prepared by Austin Engineering Limited (ABN 60 078 480 136) (“Austin” or the “Company”). This Presentation has been prepared in relation to a share placement and renounceable entitlement offer of New Shares under section 708AA of the Corp
Slide 3: Disclaimer
Disclaimer Future performance: This Presentation contains certain “forward looking statements”. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “anticipate”, “likely”, “intend”, “should”, “could”, “may”, “predict”, “plan”, “propose”, “wil
Slide 4: Executive Summary
Executive Summary • Austin Engineering Ltd (“Austin”) is a leading global designer and manufacturer of large yellow goods componentry and maintenance services to the mining industry. Austin is undertaking a significant For personal use only recapitalisation to enable the Company to take advantage of
Slide 5: Investment Thesis
Investment Thesis For personal use only 1. Austin has grown its maintenance businesses which provide a base-level of sustainable earnings - Austin has grown its recurring revenue base to ~55% of sales over the past 12 months. This provides a platform that generates approximately $120 million of reve
Slide 6: Earnings Guidance
Earnings Guidance • The Company reported 1H16 normalised EBITDA of $3.8m and revised full year guidance ‒ FY16 normalised EBITDA is expected to be between $8m to $12m For personal use only ‒ Austin is forecasting stronger orders and higher volumes, which will lift productivity in its manufacturing f
Slide 7: Austin Engineering Business Outlook
Austin Engineering Business Outlook Austin has recently secured a number of new contract wins and orders while continuing to grow its maintenance business For personal use only Americas: • Chile has recently been awarded an off-site repair contract with a major client worth $11m of revenue over two
Slide 8: Austin Engineering Business Outlook
Austin Engineering Business Outlook Australia: • Perth recently secured an order for 32 trays for a major iron ore producer to be delivered across 2016 and For personal use only 2017 • The Perth based Site Services operation recently completed a major specialist repair order in Zambia and is in talk
Slide 9: Placement & Entitlement Offer: Key Details
Placement & Entitlement Offer: Key Details Offer Size • Share placement raising $1.67m to institutional investors • 2 for 1 fully underwritten renounceable entitlement offer of ordinary shares in For personal use only Austin to all eligible shareholders to raise approximately $28.1m Offer Price • $0
Slide 10: Strengthened Balance Sheet
Strengthened Balance Sheet Pro Forma as • This pro-forma2 Balance Sheet illustrates the As at 31 Impact of the December Capital Raising at 31 effect of the Capital Raising on the balance December 2015 ($m) ($m) 2015 ($m) sheet of the Company as at 31-December-15 For personal use only Cash and cash e
Slide 11: Debt Profile After Capital Raising
Debt Profile After Capital Raising • Post capital raising the Company’s total gross debt would be reduced to $36.6m. The table below shows the movements since 31 December 2015 including the impact of the Capital Raising: For personal use only Movements since Impact of the Capital As at 31 December 2
Slide 12: Indicative Timetable
Indicative Timetable Event Date¹ For personal use only Company enters Trading Halt Tuesday, 24 May 2016 Share recommence trading on the ASX and Company announces Thursday, 26 May 2016 Share Placement and Renounceable Entitlement Offer Share Placement DvP settlement Tuesday, 31 May 2016 Placement sha
Slide 13: Appendix
For personal use only Appendix
Slide 14: FY16 Forecast Methodology
FY16 Forecast Methodology • The forecast provided by the Company is based upon its normal annual budget process which includes a bottom up process where each operation provides a detailed profit & loss statement, balance sheet For personal use only and cash flow statement. The main tasks involved ar
Slide 15: Basis of Preparation of Pro-forma Balance Sheet
Basis of Preparation of Pro-forma Balance Sheet • To illustrate the effect of the Offer on the Company, the pro-forma consolidated balance sheet of the For personal use only Company has been prepared based on the reviewed balance sheet of the Company as 31 December 2015, adjusted to reflect the foll
Slide 16: Key Risks: Summary
Key Risks Summary Investors should be aware that there are risks associated with an investment in the Company. Activities of the Company and its For personal use only controlled entities, as in any business, are subject to risks which may impact on the Company’s future performance. There are a numbe
Slide 17: Key Risks: Specific Risks
Key Risks Specific Risks Market risk For personal use only • For the last few years there has been a significant decline in expenditure in the types of goods and services that the Company provides. There is a risk that the reduced expenditure in recent years will be deeper and continue for longer th
Slide 18: Key Risks: Operational risk
Key Risks Operational risk • Interruptions at the Company’s facilities could impact Austin’s ability to supply its customers and could adversely affect our For personal use only operations, financial condition or results of operations. • The production of mining consumables and steel products involv
Slide 19: Key Risks: Occupational Health and Safety
Key Risks Occupational Health and Safety (OHS) • Austin’s operations are subject to extensive health and safety laws and regulations. • Failure to comply with the Company's internal health and safety policies and processes and with health and safety laws and For personal use only regulations could r
Slide 20: Key Risks: Contractual risks
Key Risks Contractual risks • Austin's financial performance is reliant on the revenue produced from the utilisation and productivity of its key assets. To ensure that the productivity of the Company’s assets is maximised, where possible the Company engages in short term contracts with its For perso
Slide 21: Key Risks: Disruption and General Risks
Key Risks Disruption to Business Operations • The Company’s activities are subject to a range of operational risks. Such operational risks include equipment failures, IT system failures, external services failure (including energy or water supply), industrial action or disputes and natural disasters
Slide 22: Key Risks: Liquidity and economic conditions
Key Risks Lack of liquid market for shares • There can be no guarantee that an active market in the Shares will develop or continue or that the price of the Shares will increase. If a market does not develop or is not sustained, it may be difficult for investors to sell their Shares at a price that
Slide 23: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any cou
Slide 24: Foreign Selling Restrictions
Foreign Selling Restrictions Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in connec
Slide 25: Austin's Principal Products
Austin’s Principal Products For personal use only Off-highway Buckets Water tanks dump truck bodies Service modules Tyre handlers Ancillary attachments 25
Slide 26: Austin Principal Services
Austin Principal Services For personal use only Equipment Specialised Painting and repair and fabrication blasting maintenance Specialised On-site maintenance and shutdown machining and services (Austin Engineering Site line boring Services) 26
Slide 27: Austin Brands
Austin Brands The Austin Engineering brand encompasses design and manufacture of mining and For personal use only earthmoving equipment, along with the provision of support services, from four Australian operations (Brisbane, Hunter Valley, Mackay, Perth), an Indonesian operation and Peruvian operat
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