Slide 1: 2014 Annual General Meeting
2014 Annual General Meeting For personal use only Andrew AndrewBellamy, Bellamy,Chief ChiefExecutive ExecutiveOfficer30 Officer October 2014 30 October 2014
Slide 2: Highlights
Highlights For personal use only Delivered record revenue of $1.1 billion, exceeding guidance Financial Reduced net debt by 50% in the year to below $70 million Increased work in hand to $2.8 billion at 30 June 2014 Operational US operations contracted until CY2019 Australian operations co
Slide 3: Underlying results
Underlying results For personal use only Revenue (A$m) EBITDA (A$m) NPAT (A$m) FY2013 FY2014 FY2013 FY2014 FY2013 FY2014 899.5 1,122.9 67.0 89.1 27.8 38.7 *Underlying results exclude items related to stock vessels, land sales and other abnormal activities. SHIPS SYSTEMS SUPPORT 3
Slide 4: Discipline in long-term debt reduction
Discipline in long-term debt reduction For personal use only 300 248 250 211 Gross debt ($millions) 200 154 150 135 100 50 19 9 4 1 0 Dec 2012 Jun 2013 Dec 2013 Jun 2014 AUD Denominated (AUD) USD Denominated (USD) SHIPS SYSTEMS SUPPORT 4
Slide 5: Objectives for sustained growth
Objectives for sustained growth For personal use only Strengthen Ongoing Target operations and objectives opportunities balance sheet • Shipbuilding margin • Maintain cash • Invest in R&D to grow achieved generation to support intellectual property programs and dividends base • Successfully delivere
Slide 6: Operations update
Operations update For personal use only SHIPS SYSTEMS SUPPORT 6
Slide 7: Order book
Order book For personal use only Order book of $2.6 billion as at 30 September secures revenue through CY2018, including: o 10 Littoral Combat Ships for US Navy x8 funded (out of 10 vessel contract) o 10 Joint High Speed Vessels for US Navy Fully funded, with x4 delivered (out of 10 vessel contrac
Slide 8: Progress across the business
Progress across the business For personal use only • US Navy extends charter of Austal High Speed Vessel, • Awarded $30 million Westpac Express contract to design and • Sale of Hull 270 stock • Awarded x2 LCS construct two 45m high boat service contracts speed catamaran • GD/Austal team wins valued
Slide 9: US Navy – Littoral Combat Ship
US Navy – Littoral Combat Ship For personal use only 10 ship contract awarded as prime contractor, worth US$3.5 billion – 8 fully funded, with at least 1 more expected to be funded in Q1 CY15 2 x LCS constructed and delivered by Austal for GD (LCS 2 and LCS 4) Program maturing well: o LCS 6 la
Slide 10: US Navy – Joint High Speed Vessel
US Navy – Joint High Speed Vessel For personal use only 10 ship award to Austal valued at US$1.6 billion (fully funded), securing work through to CY2017 Program progressing well – matured into a phase of efficient production and predictable delivery: o JHSV 1, 2, 3 & 4 – delivered o JHSV 5 - lau
Slide 11: Austal strongly positioned in US
Austal strongly positioned in US For personal use only US Foreign Policy remains Additional opportunities for focused on Asia-Pacific through-life support on LCS Austal-built vessels have defence strategy, with Austal- and JHSV (e.g. support continued to be funded and built LCS and JHSV involved con
Slide 12: Australia – Cape Class
Australia – Cape Class For personal use only $330 million contract for the design, construction and through-life support of 8 Cape Class Patrol Boats for the Australian Customs and Border Protection Service Program has matured significantly, with efficient productions expected to drive margin gr
Slide 13: Australia – High Speed Support Vessels
Australia – High Speed Support Vessels For personal use only US$124.9 million contract for the design, construction and integrated logistics support of two 72 metre High Speed Support Vessels for the Royal Navy of Oman Construction has commenced at Henderson shipyard: o Final vessel to be delive
Slide 14: Philippines
Philippines For personal use only $30 million contract from the Abu Dhabi National Oil Company to design and construct two 45 metre high speed catamaran ferries: o Construction has commenced; delivery expected in CY2015 Contract for customisation of Hull 270 worth approximately $6 million 21 m
Slide 15: Systems and Support
Systems and Support For personal use only Austal has established a global footprint, strategic partnerships and the IP to provide through life support for defence vessels such as the LCS, JHSV and CCPB US support business growing profitably and will benefit from Planning Yard agreement with Gene
Slide 16: Outlook
Outlook For personal use only SHIPS SYSTEMS SUPPORT 16
Slide 17: Strategy
Strategy For personal use only United States Australia Philippines • Vessel programs maturing • Maturing of Cape Class • Build commercial shipbuilding and stabilised work force Patrol Boats program capability to position Austal for market opportunities • Augment contracts with • Target construction
Slide 18: Pipeline for vessel programs
Pipeline for vessel programs For personal use only Austal pursuing opportunities to grow order book and secure additional long-term revenue – focus on medium-term shipyard capacity Target markets Vessels • US: potential to extend existing LCS and • Small frigate evolved from modified JHSV programs
Slide 19: Multi-mission combatant vessel
Multi-mission combatant vessel For personal use only Rheinmetall MLG 27mm Mk 49 RAM Rheinmetall MASS-2L MM 40 Block III Exocet Terma SKWS (DL-6T) Mk 56 ESSM A244 Torpedoes Oto Melara 76mm Austal’s design of a smaller frigate-size multi-mission combatant that has significant capability and lethality
Slide 20: Cape-variant patrol boat for Australian Navy
Cape-variant patrol boat for Australian Navy For personal use only SHIPS SYSTEMS SUPPORT 20
Slide 21: Outlook
Outlook For personal use only Continue progressive Diversity and long-term growth in profit margins on nature of vessel programs $1.2bn revenue guidance ship construction, provides visibility on for FY2015 augmented by an increase earnings and strong cash in support work outlook Prudent cash managem
Slide 22: Disclaimer
Disclaimer For personal use only Andrew Bellamy, 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 of