Slide 1: Half-year 2007-08 Presentation
For personal use only Austin Engineering Half-year 2007-08 Presentation February 18, 2008
Slide 2: Overview - Exceeded Forecasts
Overview - Exceeded Forecasts For personal use only • Record results for half-year to December 31, 2007 driven by acquisitions and improved performance across the business • Earnings before interest and tax up 110% to $7m for half-year, exceeding guidance given at AGM in November • Revenue for half-
Slide 3: Financial highlights for 1H 2007-08
Financial highlights for 1H 2007-08 For personal use only HY2007 HY2006 Increase $m $m % Revenue 43.21 29.39 47% EBITDA 7.86 3.91 101% EBIT 7.00 3.34 110% PBT 6.81 3.33 105% NPAT 4.66 2.33 100% Basic Earnings per Share (cents) 10.05 5.85 72% Interim Dividend per Share (cents) 1.0 0.5 100% Net Assets
Slide 4: Financial highlights for 1H 2007-08
Financial highlights for 1H 2007-08 For personal use only • Free cash resources of $4.7m at December 2007 • $6.3m of operational cash flow for six months to December 2007 • Net debt, including free cash, of $20.7m at December 2007 • Westech US$19m acquisition funded by bank debt, denominated in US D
Slide 5: Perth
Operational review - Perth For personal use only • Operating result ahead of expectations • Demand for JEC product range and buoyant economic conditions drive high levels of activity and capacity utilisation • Opened second workshop in late September, increasing capacity by 65% • Throughput increase
Slide 6: Brisbane
Operational review - Brisbane For personal use only • Technology increased workshop capacity, improved productivity to offset skills shortage • Significant orders for dump truck bodies and excavator buckets from 2Q onwards • Increased manufacture of Westech bodies under licence; seven delivered in 1
Slide 7: Mackay - Kaldura Industries
Operational review - Mackay For personal use only Kaldura Industries • Enjoyed solid activity with productive capacity used for dump truck body assembly, refurbishment and renovation • $3.8m workshop redevelopment and expansion completed end of November, substantially raising capacity • Increased ex
Slide 8: Mackay - Austbore
Operational review - Mackay For personal use only Austbore • First full six-month contribution since acquisition in April 2007; result in line with expectations • Strong workload and revenue in 1H; largely concentrated on overhaul of components and assemblies for major mining customers • Enters 2H w
Slide 9: Oman
Operational review - Oman For personal use only • Productive output increased significantly in 1H • Major portion of project - manufacture of busbar assemblies for Sohar Aluminium Smelter - completed early February; remainder of project expected to be complete by April 2008 • No revenue recognised f
Slide 10: Westech
Operational review - Westech For personal use only • Purchased Westech, based in Casper, Wyoming, US, late in 1H - Company’s biggest acquisition to date • US$19m purchase price included US$14.3m of property, plant, equipment and other net assets • Transaction completed on November 30, 2007, providin
Slide 11: Austin's strategy
Austin’s strategy For personal use only • Continuation of existing successful strategic model • Foundation established to deliver sustainable earnings growth • Further growth and diversification through acquisition • Employ technology to further reduce costs, increase capacity and output • Increase
Slide 12: Positioned for Future Growth – Worldwide Manufacturing
POSITIONED FOR FUTURE GROWTH – WORLDWIDE MANUFACTURING For personal use only OMAN MACKAY (South America Westech licencee)
Slide 13: Positioned for future growth
Positioned for future growth For personal use only Western Australia • Westech licence has positioned Austin Engineering as the pre-eminent supplier of lightweight dump truck bodies • Receiving strong orders from major iron ore companies • Second facility will operate at full capacity from March 200
Slide 14: Positioned for future growth
Positioned for future growth For personal use only United States (Westech) • Increase market presence in South America • Opportunity for expansion into the Canadian Tar Sands region • Consider suitability of Westech design for Indian, Chinese and Russian markets • Good manufacturing workload into 08
Slide 15: Outlook
Outlook For personal use only • Forecasting strong increases in all key financial measures of the Company for FY 2007-08 • Strong balance sheet and record order book extending into 2008-09 • Good long-term prospects for continued strength in mining industry, particularly iron ore and coal • Opportun
Slide 16: Thank you
For personal use only Thank you For more information please visit www.austineng.com.au