Investor Information Package - PDF by weg20718

VIEWS: 21 PAGES: 17

More Info
									                 Austal Limited 
   f                            g
Half‐Year Results Investor Package
                    February 2010
Results Highlights & Key
Events
Results
•   Total Revenue down by 26% to $221m
•   Earnings before interest and tax up by 27% to $21.1m
•   Work in hand at 31 December 2009 - $776.6m
•   B l      h t
    Balance sheet
      •   Cash - $72.4m
      •   Financial Debt - $84.7m
      •   Net Assets - $249.1M
Key events during the period
•   USS Independence commissioned and Austal’s second LCS (USS Coronado) commenced construction
•   LCS bid documents received and preparation underway for submission in late March 2010
•   JHSV 1 (USS Fortitude) under construction.
•   Award of 4 X 41m water taxis for Trinidad & Tobago - $74.7m
•   Hawaii Superferry vessels deployed on Haiti humanitarian relief demonstrating the versatility of the vessels

•   Austal Service established in Egypt, Trinidad & Tobago, Oman, Hong Kong and Darwin, providing a strong foundation
    for the expansion of service activities
•   Stock vessels launched
Subsequent to period end
•   Options exercised for JHSV 2 and 3 in January 2010 – increments order book by $233.9m

Investor Information Package                                                                                       Slide 2
                y
Financial Summary
Austal Group
AUD $M                                           H1 2010            H1 2009        Change
Revenue                                              221.0              297.8          (26%)
EBIT                                                  21.1                16.6           27%
Net profit after tax                                  15.5                16.9          (8%)
EPS                                             8.5 cents          9.2 cents            (8%)
Cash balance                                          72.0              136.0          (47%)
•   GFC continues to impact sales. Prospects remain strong but the sales cycle has
    lengthened
•                                                            $1.9m
    Additional write-down on the deferred premium options of $1 9m during the period
•   Cash impacted by investment in stock vessels
•   Prior period EBIT impacted by unusually high level of interest income resulting from a
    large deposit receipt

Investor Information Package                                                        Slide 3
Business Line Results -
Austal USA
AUD $M                                            H1 2010          H1 2009
Revenue                                                94.9            97.8
EBIT *                                                  7.6             4.4
EBIT %*                                               8.0%            4.5%
Profit before tax *                                     4.7             3.7
NPAT *                                                  30
                                                        3.0             2.3
                                                                        23
•    Revenue during the period comprised LCS 2 (USS Independence),
             (              ), p               g
     JHSV 1 (USS Fortitude), procurement of long lead items for JHSV 2
     and 3 and early start work on LCS 4 (USS Coronado)

•    The award of JHSV 2 and 3 underwrites revenue for the next two
     years

•    Expectation that the US Navy will award the procurement of long lead
     items for JHSV 4 and 5 by the end of the financial year
*Normalised for HSF write-off

Investor Information Package                                                Slide 4
Business Line Results -
Austal Australia
AUD $M                                                     H1 2010             H1 2009
Revenue                                                        106.7             184.3
EBIT                                                            12.6              19.3
EBIT %                                                        11.8%             10.5%
Profit before tax                                               14.1              21.7
NPAT                                                            11 0
                                                                11.0              15 2
                                                                                  15.2
•   Revenue during the period was impacted by a low level of orders. Revenue
    comprised :
     •   Completed vessels - Trinidad & Tobago patrol boats X 6
                           - Maltese Coast Guard vessels X 4
                           - Queensland police boats X 2

     •   Work in progress      - Virtu Ferries 106 metre Catamaran
                               - Bornholm 113 metre Catamaran
                               - Stock trimaran and motor yacht
                                                   g
                               - 4 Trinidad & Tobago water taxis
•   Waste Elimination implemented and beginning to produce labour savings
Investor Information Package                                                        Slide 5
Business Line results
Austal Service
AUD $M                                                    H1 2010             H1 2009
Revenue                                                        26.6                  7.1
EBIT                                                            21
                                                                2.1                  2.0
                                                                                     20
EBIT %                                                        7.9%                28.2%
Profit before tax                                               1.1                  2.0
NPAT                                                            0.8                  0.3
•   Service business is in early growth phase. Start up costs have impacted
         i in this  i d
    margin i thi period.

•   Revenue has grown with the award of long term contracts in Egypt and
    Trinidad & Tobago

•   Packaging of “Through Life Service Contracts” with vessel sales will contribute
    to the growth of this segment.

•   Currently evaluating additional locations in specific international markets
    C                                                 f
Investor Information Package                                                          Slide 6
Investment Program Update

               $
         A U D $M                           A p p r o ved        Incur r ed       T o Go
                                             F Y 2 0 10       t o 3 1/ 12 / 0 9
         Aust ralia
              PP &E                              1.4                0.2             1.1
              Facilites                          0.9                 -              0.9
              IT                                 1.1                0.4             0.7
         T OT A L A U ST R A LIA                3 .4                0 .6           2 .7
         USA
                 PP &E                          12.1                 8.2            3.8
                 Facilites *                    24.8
                                                24 8                14 0
                                                                    14.0           10 8
                                                                                   10.8
                 IT                              3.8                 2.2            1.6
         T OT A L U SA                         4 0 .7              2 4 .4          16 .2
         T OT A L A U ST A L GR OU P           4 4 .0              2 5.0           19 .0
•     Australian capex funded from cash holdings
•     US Facilities capex funded by “Go Zone” bonds, balance from cash holdings
* Net of $9.5m of Katrina funding

Investor Information Package                                                               Slide 7
Vessels Completed in H1
2010



  2 X 22m Queensland Police    4 X 21m Maltese Coast
         Patrol Boats              Guard Vessels




  6 X 30m Trinidad & Tobago      1X 127m US Navy
        Patrol Boats            Littoral Combat Ship

Investor Information Package                           Slide 8
    Current Orders

•        113m ferry f N di
     1 X 113 f      for Nordic
     Ferry Services

•        107m ferry f Vi t
     1 X 107 f      for Virtu
     Ferries

•        45m     t taxis for
     4 X 45 water t i f
     Trinidad & Tobago
                                   Computer render of the 113m Nordic Ferry Services
                                   vehicle ferry
•        103m     for  Navy
     3 X 103 JHSV f US N

•    1 X 127m LCS #4 USS
     C      d
     Coronado

•    Total value of these
     contracts is over AUD$1B
    Investor Information Package                                                       Slide 9
Service business

•   Operations now established in
    Egypt, Trinidad & Tobago,
    Oman, Hong Kong and Darwin
•   Term contracts:
     • Egyptian Government – 3 yr
        term contract, plus 2 yr
        option valued at $12m
     • Trinidad & Tobago
        Government – 5 yr term
        contract valued at ≈ $19.7m
•   Evaluating locations for an
     dditi   l      i   l     i
    additional 3 regional service
    hubs


Investor Information Package          Slide 10
 Littoral Combat Ship
 Update
      2,    Independence, was
• LCS 2 USS I d    d
 delivered to the US Navy in
 December and commissioned in
 January

• Full construction of LCS 4, USS
  Coronado, awarded in December
    • Delivery in mid-2012


• RFP issued in January for 10 vessels
    • Bids due on 29 March
    • Down-select to one design and award of
                           July August
      contract expected in July-August 2010
    • Second-source shipyard to be selected in 2012
      5-vessel award


                              $
• Value of contract is over US$4B
 Investor Information Package                         Slide 11
        g
Joint High Speed Vessel
Program Update
•   JHSV 1 under full construction;

•   Delivery of JHSV 1 in December
           y
    2011

•   JHSV 2 and 3 full construction
    awarded in January;
     •   JHSV 2 construction will commence June
     •   JHSV 3 construction will commence Nov.


•   Long lead time materials orders
    for vessels 4 and 5 expected in
             34
    the next 3-4 months;

•   Austal expects to deliver a JHSV
    every 6 months from late 2011

Investor Information Package                      Slide 12
                  g
    US Shipbuilding Plan

•     Both LCS & JHSV programs critical in meeting US Navy fleet numbers

•     Including replacement of initial LCSs, Navy plans to build 66 LCSs over the
      life of the program

•        y projects a requirement for 41 JHSVs and Army now wants 12
      Navy p j          q                                y
       o Hawaii Superferry, Huakai, used in Haitian relief effort has
         demonstrated capability of basic design to the military




•     The LSC and JHSV programs represent >33% of the US Navy’s stated goal
                    313 ship
      of building a 313-ship navy

    Investor Information Package                                            Slide 13
    US Infrastructure
    Expansion Status
•       ase One of the odu a
     Phase O e o t e modular
     manufacturing facility (“MMF”)
     completed on time and on budget
     and is currently being used to
     produce JHSV 1;

•    Currently completing bay door
     expansions on 2 existing assembly
     bays (US$4M)
     b    (US$4M);

•    Completing site works for new                 New projected
                                                                       Phase Two of MMF if
     assembly bay which will be required if   assembly bay required
                                                                      Austal is awarded LCS
     we win LCS award;                         if Austal is awarded
                                                                              contract
                                                   LCS contract

•    Phase Two of the MMF will
     commence if Austal wins LCS award;

•    No further capex planned in FY10 at
          stage.
     this stage

    Investor Information Package                                                  Slide 14
Stock vessel update


• 102m trimaran
    •   Sea trials commenced 10 February
    •   Several clients have toured the
        vessel
    •   Very positive feedback
    •   Expect to announce sale before end
        of this fiscal year


             acht
• 48m motor yacht
    •   Vessel completed in January
    •   Departed for Abu Dhabi boat show
        on 5 February
    •   Expect to sell before end of this
        fiscal year


 Investor Information Package                Slide 15
Outlook

•   Expect announcements on the sale of the trimaran and pleasure
    stock vessels by the end of the financial year.
•   Manpower expected to grow by 400 in US to support existing
    contracts.
•                           $2.6m                          FY10.
    Potential for a further $2 6m derivative write down in FY10
•   Expect the award for long lead procurement items for JHSV 4 and 5
     y                          year.
    by the end of the financial y
•   Expect US Navy announcement on LCS contract award winner in
    July-August timeframe.




Investor Information Package                                       Slide 16
Investor Relations Contacts

  Richard Simons – Chief Financial Officer

  Telephone: + 61 8 9410 1111

  For further information
  www.austal.com

								
To top