Slide 1: Investor Information Package
For personal use only Austal Limited Investor Information Package August 2009
Slide 2: 2009 Overview
2009 Overview For personal use only • Global economic crisis impacted FY09 result. – Delays in commercial vessel contracting created a trough in the order book – One-off write downs impacted final result this year • Several events and activities in FY09 have positioned Austal well for the coming yea
Slide 3: One-Off Write Downs' Impact
One-Off Write Downs’ Impact For personal use only • Hawaii Superferry write down of sub-debt – $30M full year write off – US Maritime Administration took possession of vessels – Any sale of vessels above $135M could mean some return of capital to Austal • Derivative accounting treatment – $15M full
Slide 4: Financial Results
Financial Results For personal use only 2008 2009 Revenue 626.1 500.4 EBIT 52.6 1.5 EBIT % 8.4% 0.3% Profit before tax 70.8 9.8 Tax Expense -18.5 -0.6 Net Profit 52.3 9.2 Basic EPS (cents) 28.3 5.0 (a) $ millions unless stated Investor Information Package Slide 4
Slide 5: Financial Results (Excluding Abnormal Items)
Financial Results (Excluding Abnormal Items) For personal use only 2009 Revenue 626.1 EBIT 1.5 Abnormal Items - HSF receivable write off 29.9 - Deferred premium option write off 14.8 Adjusted EBIT 46.2 Profit before tax 54.5 Tax expense adjusted -16.0 Net Profit before abnormals 38.5 Investor Inform
Slide 6: Result Highlights
Result Highlights For personal use only • Group vessel margins continue to be impacted by LCS 2 cost plus contract • Income from commercial vessel sales down due to economic slow down • US earnings up over prior year due to extended construction time for LCS 2 • Progress payments paid in advance nor
Slide 7: Vessels Completed in 2009
Vessels Completed in 2009 For personal use only • 2 x 88 metre vessels for Kingdom of Saudi Arabia • 2 x 69 metre vessels for Kingdom of Saudi Arabia • 1 X 65 metre vessel for Sultanate of Oman • 7 x 48 metre vessels for Cotai Strip (Macau) • 2 x 48 metre vessels for New Above: One of two 69m vehicl
Slide 8: Current Orders
Current Orders For personal use only • 6 X 30m patrol boats for Trinidad & Tobago • 4 X 21m patrol boats for Maltese Coast Guard • 1 X 113m ferry for Nordic Ferry Services • 1 X 107m ferry for Virtu Ferries Computer render of the 113m Nordic Ferry Services vehicle ferry • 1 X 103m JHSV for US Navy L
Slide 9: Service business
Service business For personal use only • Focus on expanding multi-year service contracts; • Announced contracts with Egyptian and Trinidad operators (>$15M in Revenue); • Testing market in other geographic regions for further remote centres. Investor Information Package Slide 9
Slide 10: LCS Sea Trials
LCS 2 Sea Trials For personal use only • Builders trials largely complete • Acceptance trials to begin in September • Expect to hand vessel over in Q4 2009 • LCS 2 will remain at Austal USA until early next calendar year for crew training and commissioning. Investor Information Package Slide 10
Slide 11: Littoral Combat Ship Program Update
Littoral Combat Ship Program Update For personal use only • Navy awarded LCS 4, USS Coronado, in April 2009. • Five “quick start” modules have commenced construction. • Full construction will begin in September 2009. • Bid submitted in July 2009 for up to 3 additional LCSs to be awarded in FY10. • U
Slide 12: Joint High Speed Vessel
Joint High Speed Vessel For personal use only • JHSV 1 will commence full construction in Q4 2009; • $1.3M test module was funded for Modular Manufacturing Facility construction; • Long lead time materials have been ordered by Navy for vessels 2 and 3; • US House of Reps have appropriated funding fo
Slide 13: US Infrastructure Expansion
US Infrastructure Expansion For personal use only • Phase One completed on time and on budget; • Test module construction to begin in September; • US$56M of capex spent in FY09 for this facility; • Additional assembly bay and officing will be required in FY10 to support awarded contracts; • Lease-to
Slide 14: Planned US Expansion
Planned US Expansion For personal use only Additional assembly bay Additional office facilities Investor Information Package Slide 14
Slide 15: Austal USA – Workforce Growth
Austal USA – Workforce Growth For personal use only Austal USA Total Manpower Forecast 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Heavy hiring activity beginning in Q4 2009 support known vessel contracts. 1,000 500 0 9 2 3 5 0 Ja 0 1 Ja 3 4 Ja 4 Ap 9 Ja 9 Ap 0 11 Ja 1 Ap 2 Ja 2 Ap 3 14 Ap 5 O 9 O 0 2
Slide 16: Austal's Strategic Overview
For personal use only Investor Relations Contacts Austal’s Strategic Overview
Slide 17: Growth Strategy
Growth Strategy For personal use only Order book growing Coast Guard Foreign Military JHSV Patrol Sales LCS Boats Inter Revenue growing . U.S natio nal with new contracts Passenger/Car signed Ferries Defence Service & Maintenance l ia Liveaboards Revenue merc Service Service & Maint. JV’s Com Austal
Slide 18: Growth Strategy: Relaunching the Oceanfast brand
Growth Strategy Relaunching the Oceanfast brand For personal use only • Positively received by the market • Competitively priced as compared to custom vessels • Market is tight, but inquiries continue to occur • Assess next steps following sale Investor Information Package Slide 18
Slide 19: Growth Strategy continued: Military Capability
Growth Strategy continued Military Capability For personal use only • Australian Defence White Paper seeking 20 “multi-role vessels; • International market demand for defence capability • Intend to exploit US LCS and JHSV experience and apply Australian commercial skills • Developing a new product l
Slide 20: Outlook
Outlook For personal use only • Contracts on hand by end of FY10 will surpass $1.5B. • Potential for up to $6M in further derivative write down in FY10. • Strong focus on selling trimaran and pleasure stock vessels. • Watch for final Congressional appropriations for LCS and JHSV. • Manpower expected
Slide 21: Investor Relations Contacts
Investor Relations Contacts For personal use only Greg Metcalf – Chief Financial Officer Telephone: + 61 89 410 1111 For further information www.austal.com