Austin Engineering Limited · ASX:ANG

Austin Engineering — Shareholder Meeting (November 2017)

27 slides from Austin Engineering's shareholder meeting presentation, Nov 17, 2017

  1. Slide 1: Austin Engineering Ltd Financial Year 2017 AGM Presentation

    Austin Engineering Ltd Financial Year 2017 AGM Presentation For personal use only 17 November 2017

  2. Slide 2: Agenda

    Agenda 1  Commencement of meeting at 10.00 am For personal use only 2  Chairman’s address and presentation 3  Managing Director’s address and presentation 4  Questions 5  AGM formal business of the meeting 6  Close Page 2 www.austineng.com.au

  3. Slide 3: Chairman's address – Jim Walker

    Chairman’s address – Jim Walker For personal use only Page 3 www.austineng.com.au

  4. Slide 4: Introductions

    Introductions For personal use only Chairman and Independent Non-Executive Director Jim Walker Managing Director Peter Forsyth Independent Non-Executive Directors Charlie Sartain and Chris Indermaur CFO and Company Secretary Christine Hayward Auditor Craig Jenkins (BDO) Page 4 www.austineng.com.au

  5. Slide 5: Summary

    Summary For personal use only Improving industry  The major commodity markets are progressively improving, with clients re-investing conditions ✔ in replacement of large mining fleet components. Improved products and  Ongoing improvements in engineering and design have resulted in enhanced service

  6. Slide 6: Debt structure

    Debt structure Austin Debt as at 30 June 2017 Revised Austin Debt (estimated average balances) For personal use only Facility Type A$’m Facility Type A#039;m LIM Term Loan 20.1 Term Loan 12.5 Working Capital 7.3 Australia Working Capital 11.5 US Working Capital 8.0 Other 22.1 Other 20.0 Gross debt 49.5

  7. Slide 7: Managing Director's Address - Peter Forsyth

    Managing Director’s Address - Peter Forsyth For personal use only Page 7 www.austineng.com.au

  8. Slide 8: Strengths

    Strengths For personal use only Market leading position Visibility over orders  Large global producer of custom truck  High visibility over orders for the next six bodies and buckets. months.  Strategically located across four  Recurring revenue from repairs and continents including Australia, A

  9. Slide 9: Strategy

    Strategy  Focus on re-orienting the business to provide clients with engineering solutions For personal use only combined with high quality and efficient manufacturing capability. To be the largest supplier of truck  Restructure of engineering centres to form one global engineering operation. bodi

  10. Slide 10: Outlook

    Outlook Revenue pipeline 1H18 EBITDA outlook ($’m) For personal use only 16 +110.0% 102% 14 100% $14.3m +100.0% 12 100% $12m +90.0% 95%+ 10 $10m +80.0% 8 6 +70.0% 72% 4 +60.0% 2 +50.0% - 2H17 Actual 1H18 Outlook 2H17 1H18 Actual Outlook Order book Other forecast revenue Actual  2H17 guidance (Febru

  11. Slide 11: Safety

    Safety FY17 Safety statistics Summary For personal use only 2,500 12 Statistics: 10  Headcount has increased from 1,772 at 30 June 2016 to 2,000 2,174 at 30 June 2017. 8 1,500  Improved fatigue management has been achieved without 6 materially impacting on the average man hours per 1,000 4 employe

  12. Slide 12: Diversified revenue

    Diversified revenue 1 FY17 Revenue by region 3 FY17 Revenue by customer type For personal use only 7% 4% 3% Miners Australia 45% Mining Americas 35% contractors 58% OEM's 48% Asia Other 2 FY17 Revenue by commodity 4 FY17 Revenue by product and service 6% Maintenance 16% Iron Ore 4% /Repairs 8% Tray

  13. Slide 13: Operations

    Operations  Located in the east and west coast, providing an array of manufacturing, repair and support services. For personal use only  Perth is the largest workshop in Australia. Australia  Mackay and Hunter Valley are focused on body/bucket repairs and maintenance. Brisbane Perth  Austin Site

  14. Slide 14: Financial performance

    Financial performance Normalised results (#039;m) FY16 1H17 2H17 FY17 FY17 Revenue and profitability Revenue 188.2 91.0 143.3 234.3 For personal use only Trading: Growth 57.6% 24.5%  After difficult industry conditions in FY16 and 1H17, Austin Gross profit 56.3 27.7 43.6 71.3 has traded strongly in 2H

  15. Slide 15: FY17 by region – Australia

    FY17 by region Australia Australia (#039;m) FY16 FY17 Iron Ore Coal For personal use only Brisbane Revenue 92.2 104.6 Perth Copper Mackay EBITDA (normalised) 1.5 9.5 Gold Hunter Valley EBITDA margin 1.6% 9.1% Other Operations:  Perth operations delivered improved earnings in FY17, as major mining comp

  16. Slide 16: FY17 by region – Americas

    FY17 by region Americas (#039;m) FY16 FY17 Iron Ore Americas Coal For personal use only North America Revenue 89.7 112.3 Colombia Copper EBITDA (normalised) 5.3 3.1 Chile Gold Peru EBITDA margin 5.9% 2.8% Other North America:  Activity levels were subdued for the majority of the year, with improvement

  17. Slide 17: FY17 by region – Asia

    FY17 by region Asia (#039;m) FY16 FY17 Asia Iron Ore For personal use only Indonesia Revenue 6.3 17.4 Coal EBITDA (normalised) 0.3 1.7 EBITDA margin 4.8% 9.8% Copper Operations:  Performance significantly improved in 2H17 as a result of higher utilisation of facilities.  Utilisation increased as Aust

  18. Slide 18: Major Customer Productivity Project

    Major Customer Productivity Project For personal use only Page 18 www.austineng.com.au

  19. Slide 19: Rio Tinto Kennecott | Pink Pilot Program

    Rio Tinto Kennecott | Pink Pilot Program Austin’s North American Business Unit Largest off highway truck For personal use only body order in nearly 50 years, with 76 bodies manufactured and supplied to Bingham Canyon with majority of bodies delivered during FY2018. Page 19 www.austineng.com.au

  20. Slide 20: Questions

    Questions For personal use only Page 20 www.austineng.com.au

  21. Slide 21: AGM Formal business of the meeting

    AGM Formal business of the meeting For personal use only Page 21 www.austineng.com.au

  22. Slide 22: Resolution – Adoption of Remuneration Report

    Resolution 1 – Adoption of Remuneration Report To consider and, if thought fit, pass the following as an ordinary resolution: For personal use only ‘That the Remuneration Report for the year ended 30 June 2017 be and is hereby adopted’ Manner in which the security-holders directed proxy votes (as at

  23. Slide 23: Resolution – Re-election of Mr Chris Indermaur as Non-executive Director

    Resolution 2 – Re-election of Mr Chris Indermaur as Non-executive Director For personal use only To consider and, if thought fit, pass the following as an ordinary resolution: ‘To re-elect Mr Chris Indermaur, in accordance with Listing Rule 14.4, who retires with effect from the end of the Annual Ge

  24. Slide 24: Poll Procedures – Computershare

    Poll Procedures – Computershare For personal use only Page 24 www.austineng.com.au

  25. Slide 25: Products and services

    Products and services Austin Engineering For personal use only Products Services  Leading designer and manufacturer of customised  A complete service provider, offering on and off-site dump truck bodies, buckets and ancillary products repair and maintenance and heavy equipment lifting to used in t

  26. Slide 26: Disclaimer

    Disclaimer This presentation has been prepared by Austin Engineering Limited (ABN 60 078 480 136) (“Austin” or the “Company”). The information in this presentation should be read in conjunction with Austin’s continuous disclosure announcements. The information is of a general nature and has been pre

  27. Slide 27: Austin Engineering Ltd Financial Year 2017

    Austin Engineering Ltd Financial Year 2017 AGM Presentation For personal use only 17 November 2017

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