AUSTAL LIMITED — AGM Information 2010

Oct 21, 2010

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Austal Limited 2010 Annual General Meeting

22 October 2010

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Results Highlights
and Key Events
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AUD $M	2010	2009	Change
Revenue	521.4	500.4	4%
EBIT	52.7	1.5	3,413%
Net profit after tax	37.1 8 5 ce ts	9.2	303%
EPS	20.3 cents	5.0 cents	306%
NPAT adj. for abnormal items	39.6	38.5	3%

Key events during FY 2010:

• Full award of contracts for additional Joint High Speed Vessels (JHSV)

• LCS final pricing submitted

• MMF commissioned and reaching designed throughput levels

• 17 vessels delivered (16 out of Australian facilities)

• Virtu Ferries 107m catamaran delivered subsequent to year end

• Consolidation of Margate, Tasmania and Egmont Road facilities into Austal Ships

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Segment Results
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AUD $M EBIT	2010 2009 Change
Austal Australia 27.6 25.7 7% Austal USA 23.7 -24.7 196% Service 3.9 N/A Other (2.5) 0.5 TOTAL 52.7 1.5 3,413%

• Austal Australia’s strong productivity improvement measures and cost savings efforts generated stronger EBIT despite lower revenue

• Austal USA now building momentum and consistency in its order book

• First full year of dedicated focus on Service as a business unit yielded positive results

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2011 Investment
Program
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	2010
AUD $M	Actual	Aust.
Plant & Equipment	12.3	1.6
Furniture & Equipment	1.7	0.9
Information Technology	1.9	0.6
Building improvements	23.0	0.4
New Office
New land and improvements
Bay 5 additions
MMF Phase II
TOTAL	38.9	3.5

• Facility expansion at Austal USA tailored to support the existing order book (JHSV)

• To-date, 39% of the $207M invested in Austal USA has been funded by local, State and Federal grants

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Vessels Completed
FY 2010
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2 x 22m Queensland Police Boats

4 x 21m Maltese Coast Guard Vessels

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6 x 30m Trinidad & Tobago Patrol Boats

1x 127m US Navy Littoral Combat Ship

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Vessels Completed
FY 2010
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4 x 48m Water Taxis

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Vessels Completed
Subsequent to Year End
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1 x 107 metre vehicle ferry for Malta

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Approximately $1.4B
Currently Under
Contract
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• 1 x 113m vehicle ferry for Nordic Ferry Services (Denmark)

• 2 x 47m passenger ferries for L’Express des Illes (Guadeloupe)

• 1 x 127m Littoral Combat Ship (LCS) for US Navy

• 5 x 103m Joint High Speed Vessel (JHSV) for US DOD

• 1 x 102m trimaran vehicle ferry (stock vessel)

• 1 x 48m luxury motor yacht (stock vessel)

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Positioning Austal
for the Future
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Predictable shareholder returns in the future will be driven by:

• Military shipbuilding contracts

• Innovative, new designs

• State-of-the-art production facilities and techniques

• Leveraging our intellectual property

• Financial capability

• Expansion of service offerings

• A talented workforce

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Military Shipbuilding
Contracts
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US Navy Littoral Combat Ship

• LCS 4, USS Coronado , approximately 36% complete.

• Tender for 10 vessel contract worth circa US$4.5B is pending

• First 5 of 10 JHSVs now under contract. JHSV program could grow

• to 52 vessels over time

• Austal continues to pursue patrol boat contracts in Australia and

• abroad

• Currently tendering for an 8-vessel Australian Customs contract

• RAN’s Multi-Role Vessel tender expected in next 3-5 years.

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Patrol Boats
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Proposed RAN Multi-Role Vessel

US Army-Navy Joint High Speed Vessel

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Innovative, New
Designs
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• Austal continues to refine and improve its trimaran design o Superior seakeeping o Lower operating costs o Greater passenger comfort o High payload capacity

• New product development includes o An “efficient catamaran” design, achieving high speeds at lower operating costs o Low cost passenger ferry design

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State-of-the-art Production
Facilities and Techniques
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Austal differentiates ourselves from the competition through superior construction techniques:

• Commissioned our Module Manufacturing Facility in Alabama

• • Waste elimination program and

• “Lean Manufacturing”

• Maximising automation o Rotating construction jigs o Multi-headed gantry welders o Computer-numerically controlled router cutters and pipe-benders

• 3-D design software

• Modular construction

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Leveraging Our Intellectual
Property
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Expanding our reach into untapped markets while protecting our I.P.:

• Improved IP management process

• Technology transfer model developed

• Positioning Austal to be able to

• produce ships around the world in countries seeking local content through

• Joint ventures

• o Partnerships

o Simple contractual relationships

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Financial Capability
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Austal has strengthened its ability to pursue large construction projects:

• Renegotiated the corporate banking facility to allow for expansion of debt facilities, if necessary, to support continued growth in the business

• Access to a further US$140M in Gulf

• Opportunity Zone bonds with interest rates well below standard commercial terms

• Leveraged US government grants

• through Katrina funding and MARAD (over US$37M received to-date)

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Expansion of Service
Offerings
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Geographic expansion of our service business:

• Geographic expansion puts us in closer contact with our customers on a daily basis

• Darwin

• o Spain

• o Egypt

o Trindad & Tobago o Oman

• Multi-year service and maintenance contracts

• Through-life-support contracts for

• the Joint High Speed Vessel program and, potentially, LCS

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A Talented Workforce
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• Management teams in Australia and the US have been strengthened

o New COO in Australia

o New CFO

o Greater management depth

• The workforce in the US has grown to 1,800 and may double with an LCS contract win

• The safety record in all our facilities is better than ever (lost time injury frequencies are less than half the industry standard)

• Design and production innovations have been driven by our workforce

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Concluding Remarks
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• Current visibility and predictability of earning streams is unparalleled in Austal’s history

• Balance sheet remains strong and capital is in place to fund expansionary requirements as required

• With JHSV program Austal today is the sole supplier of a vessel which may ultimately become a 52 ship class

• Potential award of LCS will deliver a step change in the earnings profile. The US Navy is still committed to a 55-ship LCS class

• Proven business that continues to deliver growth opportunities through international expansion and diversification

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Austal Limited 2010 Annual General Meeting

22 October 2010