AUSTAL LIMITED — Annual Report 2007

Aug 26, 2007

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Austal Limited Investor Information Package

2007 Overview

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• Return of large ferry orders from Hong Kong region

• Award of 2[nd] Littoral Combat Ship

• Purchase of shipyard in Tasmania to provide increased capacity

• Acquired minority interest in Austal USA

• Expansion of US workforce by 75% to over 1,000 employees

• Secured expertise of Bob Browning as Austal USA CEO to drive future growth

• Implementation of Advanced Ship Building modular

	2006	2007
Revenue	389.0	543.6
EBIT	46.5	58.5
EBIT %	12.0%	10.8%
Profit before tax	49.6	63.7
Tax Expense	-5.4	-17.9
Net Profit	44.2	45.8
Basic EPS(cents)	22.4	24.4
(a) $millions unless stated

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Australia vs US Revenue
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Australia vs US Revenue

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$ Millions
400
350
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250
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100
50
0
2003 2004 2005 2006 2007
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Australia USA
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Workforce
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Employees

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1,600
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200
-
June 2004 June 2005 June 2006 June 2007
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USA

Australia

Vessels Completed in 2007

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• 88 metre vessel for City of Istanbul.

• 59 metre private cruise vessel

• 16 metre Bermuda Police Boat

• 5 x 57 metre RAN Patrol

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• Boats

• 107 metre vessel for

Above: Osman Gazi-1 – delivered to City of Istanbul in May 2007, on trials in Perth.

Hawaii Superferry.

Current Orders - Commercial

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• 1 x 88 metre vessel for City of Istanbul.

• 1 x 107 metre vessel for Hawaii Superferry.

• 2 x 66 metre vessels for Sultanate of Oman.

• 10 x 48 metre vessels for Cotai Strip (Macau)

• 2 x 88 metre vessels for middle east

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Above: Hawaii Superferry delivered in May 2007

• 2 x 69 metre vessels for middle east

Current Orders - Military

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• 2 x 57 metre Patrol

• Boats for Royal Australian Navy

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• 2 x 127 metre Littoral Combat Ships for United States Navy

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Littoral Combat Ship

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Littoral Combat Ship

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• Austal USA is the designer and builder in the General Dynamics consortium

• Navy committed to LCS program and 313 ship fleet plan

• Cancellation of Lockheed 2[nd] vessel

• Future vessels likely to be awarded on a fixed price incentive basis

• Down select to one design in 2010

• Likely Navy acquisition plan below

2007

2008 2009

Advanced Ship Building

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• Construction of precisely sized modules prior to main assembly

• Commenced on larger scale with 10 x 48 metre vessels for Cotai Strip (Macau)

• • Simplification of drawings assisting on production floor

• • Introduction of Ship Constructor design software supporting less skilled employees

• Productivity improvements

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Planned US Expansion
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• 100 acres of land acquired

• Panel Construction Facility completed

• Router Cutter & Fitout Facility (In progress)

• 3[rd] large Erection Bay to accommodate 135 metre vessel

• Modular Manufacturing Facility (Constructed in 2 phases)

Investor Relations Contacts Future Growth Prospects

Joint High Speed Vessel

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• Joint High Speed Vessel (JHSV) is an approved program by the US Army and Navy.

• Over 100 metres in length and US$130 million each.

• Concept similar to Westpac Express.

• Sept 2007

• Request for proposal released.

• Jan 2008

• Award preliminary design (2)

• Sept 2008

• Contract award

2007		2008		2009		2010		2011		2012
-		1		2		2		2		1

Australian Submarine Corporation

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• Austal teamed with General Dynamics (51/49) basis

• Sale likely to be concluded in second half of 2008

• Sale on expected to be impacted by change of Federal Government

• Attraction to Austal;

• Increased participation in Defence business / consolidation of Naval shipbuilding in Australia

• Large / long-term build contracts

• Ability to apply commercial experience to the defence sector

• Long term maintenance contracts

• Sale price unknown and will depend on the structure for the underlying $8 billion air warfare destroyer contract

• Government has stated that ASC must be at least 51% Australian

Outlook

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• Contracts on hand at 30 June amounted to $765 million

• Commercial sales enquiries continue to be strong

• Increasing focus on building capability in defence programs

• Expansion of Tasmanian workforce

• Continued expansion of US workforce to accommodate LCS & JHSV programs

• Expansion of US facility and introduction of Advanced Ship Building modular construction in Alabama

• Focus on building service & maintenance revenues

Investor Relations Contacts John Rothwell – Executive Chairman Greg Metcalf – Manager US Business Development Telephone: + 61 89 410 1111 For further information www.austal.com

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