Slide 1: 2016 full year results (concise)
2016 full year results (concise) For personal use only David Singleton, Chief Executive Officer 29 August 2016 Greg Jason, Chief Financial Officer
Slide 2: Earnings in line with guidance
Earnings in line with guidance For personal use only Income FY2016 FY2015 Revenue decrease driven by write down of Change LCS work in progress (WIP) with FX offset statement (A$m)* (A$m)^ Primary drivers of EBIT reduction: Revenue 1,339.9 1,414.9 (5)% LCS WIP write down ($156 million in EBITDA
Slide 3: Segment breakdown
Segment breakdown For personal use only ($m) Ships Systems Support Other1 Total Revenue 821.4 213.9 97.8 - 1,133.0 USA EBIT (90.8) 2.2 6.0 (8.0) (90.5) EBIT Margin % (11.1) 1.0 6.2 - (8.0) Revenue 139.0 - 48.0 - 187.1 Australia EBIT 5.6 - 2.1 (1.0) 6.8 EBIT Margin % 4.0 - 4.4 - 3.6 Revenue 31.9 - 2.
Slide 4: Discipline in long-term debt reduction
Discipline in long-term debt reduction For personal use only 120 114 112 105 105 Forecast 100 97 Gross debt ($millions) 80 60 45 40 26 20 - - - 0 Dec 2014 June 2015 Dec 2015 June 2016 Dec 2016 USD US Infrastructure AUD CCPB 9 & 10 SHIPS SYSTEMS SUPPORT 4
Slide 5: LCS test programs largely complete
LCS test programs largely complete For personal use only Naval vessel rules modifications incorporated Physical shock trials complete. Analysis by US Navy will continue. Modification requirement has dropped dramatically Financial impacts understood Expect residual risks reducing SHIPS SY
Slide 6: Austal remains strongly positioned in US
Austal remains strongly positioned in US For personal use only Winning service contracts on Austal-built vessels have US Foreign Policy remains LCS and investing in support continued to be funded and focused on Asia-Pacific business to enhance programs are maturing defence strategy prospects for add
Slide 7: Transition period in Australia
Transition period in Australia For personal use only HSSV 1 HSSV 2 CCPB 9 & 10 Charter CCPB 9 CCPB 10 Mols PPB 1 PPB 2 PPB 3 PPB 4 OPV 1 Design OPV 2 OPV 3 OPV 4 CCPB ISS ACPB Rem 2016 2017 2018 2019 2020 2021 HSSV High speed support vessels for Oman CCPB Cape class patrol boats for Royal Australian
Slide 8: Design work load Australia and Philippines
Design work load Australia and Philippines For personal use only Full Time Equivalent Design personnel 120 100 80 Potential Order Intake 60 Current Design Load Current Manpower 40 20 0 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 SHIPS SYSTEMS SUPPORT 8
Slide 9: Once in a generation opportunity for Austal – Continuous Shipbuilding in Australia
Once in a generation opportunity for Austal- “Continuous Shipbuilding” in Australia For personal use only Designer Build location Adelaide Submarine Adelaide Future Frigate Adelaide initial 2 vessels Henderson next 10 vessels Offshore Patrol Vessel SHIPS SYSTEMS SUPPORT 9
Slide 10: Austal today is by far Australia's largest shipbuilder
Austal today is by far Australia’s largest shipbuilder For personal use only all vessels to Austal vessels currently under construction in Alabama approximate scale ×7 ×3 127m LCS 102m EPF Austal vessels currently under construction in Henderson ×1 Upcoming Australian builds 72m HSSV ×1 ×1 70m Oil &
Slide 11: Pipeline has strengthened considerably
Pipeline has strengthened considerably For personal use only • Strong potential to continue 1 United States extending the LCS and EPF Defence programs. • Exports from Austal’s portfolio 2 Middle East of aluminium high performance Defence naval vessels including HSSV and Cape Class variants. • Steel
Slide 12: Disclaimer
Disclaimer For personal use only David Singleton, 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 o