Slide 1: Austal Philippines Institutional Investor, Shareholder and Analyst Tour
Austal Philippine Institutional Investor, Shareaaaa| and AnalystJour - PRESENTER: Wayne Murray DATE: 11 April 2019 PHILIPPINES
Slide 2: About Austal
ABOUT AUSTAL A al «= @Q SHIP SHIP ASSET ASX:ASB DESIGNER BUILDER MANAGER SINCE 1998 a o a7 WORLD'S LARGEST 300 100 54 ALUMINIUM SHIPS CUSTOMERS COUNTRIES SHIPBUILDER US$1.34B 2018 Revenue — —xr AUSTAL
Slide 3: HSO was building two big vessels at the time
HSO WAS BUILDING TWO BIG VESSELS AT THE TIME FOR EUROPEAN CUSTOMERS; UNDER PRESSURE FROM THE RESOURCE BOOM IN WA
Slide 4: Started small with 30 people and two covered bays
STARTED SMALL WITH 30 PEOPLE AND TWO SMALL COVERED BAYS WITH A LEAN-TO.
Slide 5: Initial acquisition was a simple structure but it had space
INITIAL ACQUISITION WAS A SIMPLE STRUCTURE BUT IT HAD SPACE TO EXPAND, WATER FRONT POTENTIAL AND SEMI SKILLED PEOPLE IN THE SURROUNDING AREA WITH SOME ALUMINIUM, BUT MOSTLY STEEL SKILLS
Slide 6: Water front underdeveloped
WATER FRONT UNDERDEVELOPED. SLIPWAY WAS CAPABLE OF SIMPLE LAUNCHES AND POSSIBLE RECOVERY IN GOOD WEATHER ONLY NO REAL QUAY FRONT OTHER THAN L-SHAPED PIER
Slide 7: There was a plan from the beginning
THERE WAS A PLAN FROM THE BEGINNING LAND RECLAMATION, TO BE READY FOR EXPANSION WHEN THE TIME WAS RIPE – MARKET AND WORK FORCE IN THE MEANTIME, TECH TRANSFER TOOK PLACE IN THE EXISTING FACILITIES
Slide 8: First phase was consolidation and growth
FIRST PHASE WAS CONSOLIDATION AND GROWTH. STARTED WITH SMALLER SIMPLER WINDFARM BOATS
Slide 9: Why West Coast Cebu?
WHY WEST COAST CEBU? CITY APPEARS LOGICAL LOCATION WITH INFRASTRUCTURE. MOUNTAINS PROVE BENEFICIAL TO DEVELOPING A RELATIVELY STABLE BLUE COLLAR WORK FORCE
Slide 10: Austal Philippines growth
AUSTAL PHILIPPINES GROWTH Mid 2016 AP Reaches Technology Transfer Maturity ore A od Tonnes Alu Revenue 1800 700 100M h 10 AUSTAL 2012 -2016 2016 -2020
Slide 11: Austal Philippines growth
AUSTAL PHILIPPINES GROWTH Focus on Leadership, Training, Welfare & Changes Attitude Staff Turn over 2016 - Circa 16% Staff Turn over 2018 - Circa 5% “Le mA = oon UML [eee 2 ee ee ee eS 1 AUSTAL
Slide 12: Austal Philippines growth
AUSTAL PHILIPPINES GROWTH Key Indicators Improve Project to Project & Year to Year Man Hours Per Tonne Trend 2016 to 2018 | | Hin a MHes/T H409 H412 H413 H416 H418 H420 H680 H681 ¢ Fabrication efficiency improves each boat. 12 Revenue 2014 to 2018 SHOWN AS % OF FULL EXPANSION CAPACITY 25 26 FY2014 F
Slide 13: Quality not easy to quantify
QUALITY NOT EASY TO QUANTIFY, BUT ACROSS THE BOARD UNSOLICITED POSITIVE COMMENTS CAME BACK FROM CUSTOMERS, REGULATORY AUTHORITIES, ISO AUDITORS AND EQUIPMENT MANUFACTURERS
Slide 14: Austal Philippines expansion
AUSTAL PHILIPPINES EXPANSION Change, Growth, Capability & Market Justifies Expansion
Slide 15: Austal Philippines growth
AUSTAL PHILIPPINES GROWTH Extra Expansion Capacity Enables Significant Revenue Improvement ¢ Revenue shown as % of full expansion 100 capacity. Indicative Revenue & Overhead ¢ 2020 revenue will > 45 sRevenue vary based on order 30 31 25 26 m@ Overhead book make-up. FY2014 FY2015 FY2016 FY2017 FY2018
Slide 16: Austal Philippines growth
AUSTAL PHILIPPINES GROWTH Extra Expansion Capacity Enables Significant Revenue Improvement wg ¢ Revenue shown as Indicative Revenue & Overhead 5 . % of full expansion 100 capacity. * Revenue — Pe 45 m Revenue opportunity 30 32 25 26 m@ Overhead 2 significantly FY2014 FY2015 FY2016 FY2017 FY2018 mye
Slide 17: Austal Philippines growth
AUSTAL PHILIPPINES GROWTH Team Growth Provides Opportunity for Local Leadership . . AP nadenunt Workforce doubles in Year 2012 - 2020 2018/19. 1200 1090 1090 1000 * From local 800 communities and 600 sg S12 trained in-house. 380 400 312 200 a9 | i uu = | * Expat o m i 0 Leader/Coaches less 2012 2013
Slide 18: Large projects underway in new facility
LARGE PROJECTS UNDERWAY IN NEW FACILITY BUILDING INDOORS IS GREAT FOR ALUMINIUM CONSTRUCTION BUT ALSO A BENEFIT FOR THE TROPICAL ENVIRONMENT WHERE STORMS ARE COMMON
Slide 19: New sheds designed to suit varying large hull configurations
NEW SHEDS DESIGNED TO SUIT VARYING LARGE HULL CONFIGURATIONS
Slide 20: Skill set enable various support options not just aluminium
SKILL SET ENABLE VARIOUS SUPPORT OPTIONS NOT JUST ALUMINIUM.
Slide 21: The new facility has been developed
THE NEW FACILITY HAS BEEN DEVELOPED WHILE THE EXISTING SHEDS REMAIN FULLY FUNCTIONAL. EXISTING SHEDS WILL REMAIN FULLY CAPABLE IN PARALLEL TO THE NEW FACILITY DEPENDING ON MARKET DRIVERS, LARGE AND MEDIUM VESSEL BUILDS CAN BE BUILT TO CERTAIN LEVELS OF COMPLETION, IN ANY OF THE SHEDS – FRED OLSEN TR
Slide 22: Austal Philippines sales opportunity
AUSTAL PHILIPPINES SALES OPPORTUNITY Repeat Customers and Vessels ¢« 56m Catamaran for repeat Asian customer — late 2019. « Possible repeat of FRS Design. h 21 AUSTAL
Slide 23: Austal Philippines sales opportunity
AUSTAL PHILIPPINES SALES OPPORTUNITY Domestic Market is Starting to Realise New Local Build is an Option Again * 49m Catamaran for repeat Philippines customer -— late 2019. + Increase domestic market footprint. 22 AUSTAL h
Slide 24: Wide body bay underway
WIDE BODY BAY UNDERWAY AND WILL HELP ADD VALUE PRELIFT OF BUILD UNITS.
Slide 25: New office space and competitive labour rates
NEW OFFICE SPACE AND COMPETITIVE LABOUR RATES AND CAPABILITY TO ENHANCE GROUP SUPPORT WORK
Slide 26: We are exporting world standard boats from PHP
WE ARE EXPORTING WORLD STANDARD BOATS FROM PHP TO OTHER SHIPBUILDING COUNTRIES.
Slide 27: Employer of choice
EMPLOYER OF CHOICE – UNI’S, SCHOOLS AND LOCAL WORKFORCE
Slide 28: Open tender
OPEN TENDER. GOV WANTS MAJORITY BUILT IN-COUNTRY. AUSTAL COULD BUILD ALL IN COUNTRY IN COOPERATION WITH LOCAL PARTNERS.
Slide 29: Austal Philippines future
AUSTAL PHILIPPINES FUTURE Sustainment For USA Military Sealift Command Out Of AP * Multiple EPF’s deployed in the region. ¢ Provide local sustainment from yard with Aluminium 28 expertise. AUSTAL h
Slide 30: Austal Philippines future
AUSTAL PHILIPPINES FUTURE The Real Austal Philippines Value Is PEOPLE
Slide 31: End slide
END SLIDE austal.com J ASX:ASB ra y y PHILIPPINES
Slide 32: Disclaimer
Disclaimer David Singleton, ChiefExecutive Officer Telephone: +61 8 9410 1111 For furtherinformation visit www.austal.com Disclaimer This presentation and any oral presentation accompanying it has been prepared by Austal Limited (‘Austal"). Itshould notbe considered as an offer or invitationto subsc