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  1. Welcome to the FY 2021 AGM. I am Paddy Gregg the CEO at Austal.
  2. I will be presenting in the same format with by giving a financial, then business overview and context. As always, I plan to present for no more than 20 minutes to allow time for questions.
  3. It's been a challenging year with Covid, but we have successfully kept our yards open and adhered to social distancing rules. We have been challenged with a strengthening Aussie dollar, and on the back of 5 years of record results I can only report this is the second best set of results we have announced, despite all the challenges.
  4. We remain focused on opportunities for long term sustainable growth and profitability of the business and replenishing the orderbook to keep our facilities full and staff gainfully employed.

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Upon direction / cue from Paddy - Play TTCG Capes Departure (Export) Video (Video 1)

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  1. Revenue in FY21 delivered inline with guidance.
  2. We are also working our way though the orderbook and while replacement is a key focus for us, let's not overlook the fact that we have 29 ships under construction or scheduled. That is still a significant volume of work ahead for the company.
  3. I'm very proud of what our teams in AUSA and Australasia have achieved, to deliver 19 ships - a record for us - despite the challenges of Covid is a fantastic achievement.
  4. Many businesses are suffering but with the strong orderbook we possess, and strong balance sheet, we battle Covid from a very fortunate position and that can be seen from the results we are delivering today.
  5. Our service and support business has had some immediate challenges, but we still see a bright future for this division and I'm pleased to say the BSE (now Austal Cairns and Austal Brisbane) acquisition and integration has gone well. We are now up to 8 service centres worldwide, with 35 vessels under sustainment contracts, up from 33, growing opportunity as we continue to deliver defence vessels in both USA and Australia.

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  1. These results demonstrate a really strong operational performance, and although revenue is reduced and impacted by FX, our earnings dropped by relatively smaller amount.
  2. The one area that continues to receive maximum focus is replenishment of the orderbook and associated revenue. I plan to talk more about the opportunities available to Austal, particularly in US, later in the presentation.
  3. Standouts in the half were:
    1. Increased shipbuilding margins from both USA and Australasia
    2. Confidence in the balance sheet to allow us pay shareholders another 4c dividend and continue to invest in both organic and inorganic opportunities.
    3. Austal has maintained a very healthy net cash position of around $232 million - this enables us to deliver returns to shareholders whilst retaining the ability to self-fund investment in long-term growth opportunities.
    4. We are investing for future shareholder returns, including in building steel capability in the USA, a key component in order to replace LCS revenue.
    5. Finally and importantly, the results demonstrate how the nature of our business
      - being heavily skewed to defence - can withstand the current economic and operational challenges.

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Austal Limited published this content on 11 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2021 05:46:03 UTC.