Austin Engineering Limited · ASX:ANG
Austin Engineering — Shareholder Meeting (November 2007)
20 slides from Austin Engineering's shareholder meeting presentation, Nov 23, 2007
Slide 1: Austin Engineering Annual General Meeting
For personal use only Austin Engineering Annual General Meeting November 23, 2007 Sydney
Slide 2: About Austin Engineering
About Austin Engineering For personal use only • ASX-listed company with $110m market capitalisation • Manufacturing operations in Brisbane, Perth, Mackay and Oman (Middle East), serving the resources sector • Employing 595 people across the business • JEC Mining & Earthmoving Products a market lead
Slide 3: Serving major resources provinces in Australia and Middle East
Serving major resources provinces in For personal use only Australia and Middle East
Slide 4: Austin Engineering – Financial Snapshot
Austin Engineering – Financial Snapshot For personal use only Key 2007 financial data EBITDA $7.31m Net profit $4.97m EPS 12.45c Dividends per share 4c Payout ratio 25-40% Board and executive team Peter Fitch Chairman Michael Buckland Managing Director Peter Pursey Non-exec Director Eugene Fung Non-
Slide 5: Delivered on our strategy in 2007
Delivered on our strategy in 2007 For personal use only • A year of consolidation and growth • Record net profit of $4.97m, up 207% • Maintained cost control and improved efficiencies through automation • Kaldura Industries and Austbore ahead of expectations • $6.9m capital raising completed and wel
Slide 6: Strengthening Austin – the acquisitions
Strengthening Austin – the acquisitions For personal use only Kaldura Industries in Mackay, QLD • $5.3m acquisition completed July 2006 • Purchase price on multiple of 2.36 times EBIT • Specialist in mining equipment repair • Complements fabrication operation in Brisbane Austbore in Mackay, QLD • $1
Slide 7: Financial highlights for 2006-07
Financial highlights for 2006-07 For personal use only
Slide 8: Growing the business
For personal use only Growing the business
Slide 9: Growing the business
For personal use only Growing the business
Slide 10: Growing the business
For personal use only Growing the business
Slide 11: Operational overview - Perth
Operational overview - Perth For personal use only • Record revenue and profit in 2006-07 • Buoyant market, very high levels of activity and capacity utilisation • Throughput increased through robotic welding, offsetting skilled labour shortage • Recent expansion to increase capacity by 65% • 100% o
Slide 12: Operational overview – Perth Expansion
Operational overview – Perth Expansion For personal use only • Taken occupancy of new facility • Initial lease term 5+5 • Expansion based on discussions with major clients
Slide 13: Operational overview - Brisbane
Operational overview - Brisbane For personal use only • Predominantly serves central Queensland coal fields • 2006-07 workload affected by infrastructure issues • Completed change in production focus and work mix; JEC product lines now 85% of revenue • Technology increased workshop capacity, product
Slide 14: Operational overview - Mackay (Kaldura Industries)
Operational overview - Mackay For personal use only Kaldura Industries • Result ahead of expectations, driven by high capacity utilisation and improved productivity • Completed $3.5m workshop expansion, increased capacity by 60% • Focus on increasing revenue, marketing initiatives underway
Slide 15: Operational overview - Mackay (Austbore)
Operational overview - Mackay For personal use only Austbore • Successfully integrated into existing operations • Results as per forecast • Looking forward to full year contribution, targeting increased revenue and synergies
Slide 16: Operational overview - Oman
Operational overview - Oman For personal use only • $11.5m project for production of busbar assemblies for Sohar Aluminium Smelter • Progressing after slower than expected start, targeting February completion • Well positioned to take advantage of opportunities in expanding Middle East • A number of
Slide 17: Austin's strategy
Austin’s strategy For personal use only • Growth and diversification through acquisition • Employ technology to further reduce costs, increase output • Increase revenue in Perth and Mackay through capacity expansion • Acquire new product lines • Establish additional overseas operations
Slide 18: Favourable industry conditions
Favourable industry conditions For personal use only Activity in the resources sector is expected to remain high: • Iron ore leading growth in Western Australia; infrastructure spending to drive growth in Queensland coal • China, India and South East Asian economies to continue to drive demand for c
Slide 19: Outlook
Outlook For personal use only • Record order book with orders into 2008-09 • Resources sector to remain strong, both new projects and repair and replace • Potential to expand Westech relationship for manufacture of truck bodies under licence • Capacity to pursue further acquisitions • Strong balance
Slide 20: Thank you
For personal use only Thank you For more information please visit www.austineng.com.au
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