Austal Ltd Andrew Bellamy Chief Executive Officer

Austal Ltd Andrew Bellamy Chief Executive Officer

ASX Sptlight Cnference Andrew Bellamy, Chief Executive Officer February 2013

Austal Funded in 1988 and listed n the Australian Stck Exchange in 1998, Austal is a leading defence prime cntractr, specializing in the design, cnstructin and maintenance f high perfrmance vessels fr defence and cmmercial purpses Austal has a glbal ftprint with strategically lcated shipyards and service facilities Australia United States Eurpe Caribbean Middle East Asia Austal cmprises three business segments: Ships Systems Supprt Ships Systems Supprt SHIPS SYSTEMS SUPPORT 3

Ships Advanced design, cnstructin, engineering and supprt are Austal s cre cmpetency 248 vessels cnstructed Delivered glbally Defence Glbal defence prime cntractr with significant prgrams in place US Navy s Littral Cmbat Ship (LCS) US Navy s Jint High Speed Vessel (JHSV) Australian Custms and Brder Prtectin Service s Cape Class Patrl Bat Patrl and auxiliary vessels fr US Navy, Ryal Australian Navy and ther defence frces and gvernment agencies Cmmercial 25 year recrd as market leader Wrld leader in the design, cnstructin and supprt f high perfrmance aluminium vessels fr the cmmercial market Warships and Multi Rle Vessels Patrl Vessels High Perfrmance Vessels SHIPS SYSTEMS SUPPORT 4

Systems Austal s Systems divisin prvides advanced integratin, maintenance and cmmand and cntrl systems fr defence and cmmercial applicatins Advanced Integratin: Radars, cmmunicatins, cmmand and cntrl systems and userinterfaces Maintenance: Thrugh Life Supprt f machinery, radars, cmmunicatins and ther nbard systems thrugh remte mnitring and Cmputerised Maintenance Management Systems Cmmand and Cntrl: Prprietary, scalable, netwrk slutins with cmmn perating picture fr glbal and lcal crdinatin f assets in a maritime and land envirnment Advanced Integratin Maintenance Cmmand and Cntrl SHIPS SYSTEMS SUPPORT 5

Supprt Austal has a large supprt ffering thrugh its reginal centres Lndn Washingtn Gibraltar Mbile Trinidad Dubai Muscat Philippines Singapre Darwin Perth Canberra Service prducts are tailred t address custmer requirements Vessel and Fleet Maintenance Refit and Repair Ship Management Training Cnsultancy SHIPS SYSTEMS SUPPORT 6

Imprving margins driving perfrmance Margins cntinue t imprve at USA peratins 5.2% fr H1 cmpared with 1.2% fr the crrespnding prir year perid Lsses frm Australian peratins have reduced sharply frecast breakeven fr FY13 Balance sheet significantly imprved, reduced net debt and gearing A$4.4m lss n sale f stck yacht. Prceeds used t reduce debt. FY13 guidance f A$65-71m EBITDA and A$23-26m NPAT n track (excluding stck bats) Expectatin 40/60 split between H1 and H2 will repeat in FY13 Revenue (A$m) Underlying EBITDA (A$m) Underlying NPAT (A$m) H1FY12 H1FY13 H1FY12 H1FY13 H1FY12 H1FY13 4.4 3.1 267.4 389.4 2.7 24.0 Underlying EBITDA A$28.4m -3.0 5.4 Underlying NPAT A$8.5m Reprted EBITDA Stck Yacht Reprted NPAT Stck Yacht 7

Majr achievements Majr new cntract cnfirmed: JHSV 10 US $144m USNS Spearhead (JHSV 1) delivered Opened new cmmercial vessel manufacturing facility in the Philippines prfitable in H1FY13 Established strategic business units Better aligns csts and revenue Enhances transparency in perfrmance Expanded supprt and capability Acquisitin f Hydraulink NT and its assciated business KM Engineering in Darwin, Australia Opened Marine Supprt Base in Hendersn, Australia Strategic partnerships expanded in USA & Asia SHIPS SYSTEMS SUPPORT 8

Perfrming t previus Outlk Nvember 2012 Outlk USA Current Status Apply learning, imprve margins EBIT margin up t 5.2% JHSV 10, LCS 14 & LCS 16 cntracts JHSV 10 awarded, LCS 14 & 16 expected Revenue in excess f A$700m fr FY13 Revenue A$323.4m in H1, expecting 40/60 split HSO Australia Execute Cape Class cntract CCPB 1 launched Pursue Defence exprt pprtunities Pipeline develpment cntinuing Operate at break-even fr FY13 Lss sharply reduced, break-even expected PSO Philippines Cmplete mbilisatin and ramp up First ship delivered Cntinue full capacity peratins Further wind farm vessels Operate prfitably fr FY13 A$0.7m f prfit during H1 Supprt Cntinued grwth, psitin t benefit frm US Navy frward deplyment Fresh strategic alliances, directly targeting US Navy supprt

Financials SHIPS SYSTEMS SUPPORT 10

Prfit and Lss Summary Incme statement H1FY13 (A$m) H1FY12 (A$m) Increase (A$m) Revenue 389.4 267.4 122 Underlying EBITDA 28.4 2.7 25.7 Reprted EBITDA 24.0 2.7 21.3 EBIT 12.6 (4.0) 16.6 Underlying NPAT 8.5 (3.0) 11.5 Reprted NPAT 5.4 (3.0) 8.4 EPS 2.14c (1.26c)* 3.40c * Restated after capital raising H1FY13 results Sustained margin imprvement in the USA, EBIT margin nw 5.2% Further US margins grwth expected as peratinal efficiencies n JHSV and LCS captured USA imprvement lifts verall grup EBIT margins t 3.2% Philippines prfitable in the first year Australia heading t break even, Custms vessels prviding sustainable cre thrugh t 2015 A$3.1m pst tax impact frm stck yacht sale (A$4.4m pre tax) One stck bat remains n balance sheet SHIPS SYSTEMS SUPPORT 11

Balance Sheet Balance sheet H1FY13 (A$m) end FY12 (A$m) Ttal assets 839.0 826.0 Cash 78.4 51.8 Restricted cash 84.3 52.9 Receivables 64.2 96.2 Inventries 198.1 193.5 Prperty, plant & equipment 376.5 370.4 Ttal liabilities 479.3 548.9 Trade creditrs 87.8 128.6 G Zne Bnds 216.5 219.4 Other interest bearing 47.7 46.0 Gvernment grants 52.7 52.3 Net assets 359.7 277.0 Balance sheet summary Grwth in asset base, reflecting increasing scale f USA business Balanced sheet strengthened by successful A$77.9m capital raising Net debt reduced by A$59.4m Gearing level nw 0.22 Leverage rati nw 1.87 One f tw nn-prductive stck vessels nw remved frm balance sheet SHIPS SYSTEMS SUPPORT 12

Segment breakdwn USA H1FY13 (A$m) H1FY12 (A$m) Revenue 323.4 227.0 EBIT* 16.7 2.6 EBIT margin (%)* 5.2 1.2 HSO Australia H1FY13 (A$m) H1FY12 (A$m) Revenue 46.5 32.5 EBIT (1.3) (7.8) EBIT margin (%) (2.9) (24.1) Margin imprvement cntinues JHSV 1 delivered, prductivity lessns being implemented JHSV 10 cntract cnfirmed Expect 2 x LCS cntracts cnfirmed in H2FY13 Frecast t break even FY13 Custms Cape Class Patrl Bat wrk until H1FY16 PSO Philippines H1FY13 (A$m) H1FY12 (A$m) Revenue 12.7 EBIT 0.7 EBIT margin (%) 5.7 Service & Systems H1FY13 (A$m) H1FY12 (A$m) Revenue 23.9 14.2 EBIT 0.3 (1.6) EBIT margin (%) 1.2 (11.3) Increased prfit margin thrugh imprved efficiency Increased revenue reflects fcus n grwing the divisin Earnings being reinvested back int the business fr grwth SHIPS SYSTEMS SUPPORT 13

Capital expenditure Segment (A$m) H1FY13 H2FY13(f) FY13(f) FY12 USA 9.5 12.8 22.3 107.5 HSO Australia 0.1-0.1 0.3 PSO Philippines 1.0 5.4 6.4 10.1 Service & Systems - 0.2 0.2 - Other - 0.8 0.8 - TOTAL: 10.6 19.3 29.8 117.9 Majr capital expenditure prgram cmpleted in FY12 (expansin f USA) Minr estimated expenditure fr FY13 includes: Philippines Shipyard Operatins (PSO) Phase ne facility cmpletin USA Outfit yard, ffice cmplex, Navy building, and prductin tling Capex t be funded thrugh revised bank facilities and USA gvernment grants Leverage rati frecast t remain cmfrtably within target range f 1.5 t 2.5 SHIPS SYSTEMS SUPPORT 14

Operatins Update SHIPS SYSTEMS SUPPORT 15

Order bk Order bk f A$2.2 billin at December 2012 secures revenue until 2016, including: Jint High Speed Vessels fr US Navy x9 cntracted x1 delivered (ut f 10 vessel award) Littral Cmbat Ships fr US Navy x4 cntracted (ut f 10 vessel award), plus x1 frm General Dynamics Cape Class Patrl Bats x8 cntracted plus thrugh life supprt Cmmercial vessels x3 27 metre wind farm supprt catamarans x1 80 metre vehicle-passenger catamaran SHIPS SYSTEMS SUPPORT 16

Littral Cmbat Ship 10 ship award t Austal (plus 2 frm General Dynamics) wrth US $5.0 billin Ttal f 4 ships cntracted, plus 2 frm General Dynamics (1 delivered) LCS 14 & LCS 16 cntracts expected H2FY13 LCS 4 sea trials planned H2FY13 At the ge-strategic level, it s all abut the littrals. General James F. Ams Cmmandant f the Marine Crps April 2012 SHIPS SYSTEMS SUPPORT 17

Jint High Speed Vessel 10 ship award t Austal valued at US $1.6 billin All 10 ships cntracted and first ship delivered JHSV 10 cntract cnfirmed December 2012 JHSV 1 delivered December 2012 JHSV 2 USNS Chctw Cunty preparing fr sea trials SHIPS SYSTEMS SUPPORT 18

Cape Class Patrl Bat A$330 millin cntract t design, manufacture and supprt 8 new CCPBs Underwrite activity at Hendersn shipyard until H1FY16 CCPB 1 preparing fr sea trials CCPB 1 naming ceremny in March 2013 CCPB 2 cnstructin cmmenced CCPB 2 keel laying ceremny in January 2013 During the year Austal develped a very prfessinal and prductive relatinship with Custms that has led t significant design and engineering imprvements n the Cape Class Patrl Bats. Nigel Perry Natinal Directr f Maritime Operatins, Custms and Brder Prtectin Service SHIPS SYSTEMS SUPPORT 19

Philippines Enables Austal t cmpete in the glbal cmmercial market (e.g. ferries, wind farm supprt vessels) Started peratins in February 2012, maiden prfit reached this half Facility pened by Philippines President Benign S. Aquin III First ship delivered December 2012 Full rder bk x3 27 metre wind farm vessels x1 80 metre vehicle-passenger catamaran Ramp up t 300 emplyees achieved as planned SHIPS SYSTEMS SUPPORT 20

Service and systems Prvides lng-term pprtunity and stability fr Austal Significant recurring revenue frm pst-delivery f vessels Austal s IP and glbal ftprint prvides large pprtunity t prvide thrugh life supprt fr JHSV and LCS Ships designed fr 20 t 30 year life These cntracts will begin t be awarded in FY13 Austal actively pursuing Frward deplyment mdel f LCS t drive size f thrugh life supprt pprtunity fr Austal Strategic partnerships established in Asia and USA SHIPS SYSTEMS SUPPORT 21

Strategy and Outlk SHIPS SYSTEMS SUPPORT 22

USA defence utlk USA fiscal cliff Bi-partisan views that mandated cuts t US Defence budget are a blunt instrument will harm recvery Austal s US rder bk is unaffected (funded frm previus budgets) Uncertainty in medium-term as Cngress wrks thrugh this challenge Electin f Barack Obama Prvides cntinuity in defence strategy fcus n Asia-Pacific regin (e.g. US Secretary f State Hillary Clintn s visit in Nvember) The right ships Vessels patrlling littrals imprtant fr prtectin f trade rutes LCS and JHSV vessels specifically designed fr littrals Supprt wrk US Navy cntinuing t develp Thrugh Life Supprt strategy Austal s existing glbal service ftprint clsely aligns with ptential frward deplyment lcatins SHIPS SYSTEMS SUPPORT 23

Strategy Increase ur status as a prime defence cntractr Use lessns learnt n first-in-class vessels t drive margin imprvement in US Cntinue t refcus Hendersn peratins n the manufacture and supprt f defence vessels Expand cmmercial cnstructin at ur Philippines shipyard Grw cmmercial and defence vessel service and maintenance business Leverage ur existing defence systems integratin capabilities t pursue new pprtunities SHIPS SYSTEMS SUPPORT 24

Outlk Lessns learnt frm a challenging perid t deliver strnger earnings frm US peratins FY13 guidance fr A$65-71m EBITDA A$23-26m in NPAT reaffirmed Strengthened balance sheet t deliver n A$2.2 billin rder bk Lng lead items in defence cntracts prvide visibility f incme Further cntracts expected in H2FY13 Increasing pprtunities fr higher margin supprt wrk SHIPS SYSTEMS SUPPORT 25

Appendix - Austal Overview Austal is a glbal defence prime cntractr. The Cmpany designs, cnstructs and maintains revlutinary platfrms such as the Littral Cmbat Ship (LCS) and the Jint High Speed Vessel (JHSV) fr the United States Navy, as well as an extensive range f patrl and auxiliary vessels fr defence frces and gvernment agencies glbally. Austal als designs, installs, integrates and maintains sphisticated cmmunicatins, radar and cmmand and cntrl systems. Austal benefits frm its psitin as a wrld leader in the design, cnstructin and supprt f custmised, high perfrmance aluminium vessels fr the cmmercial high speed ferry market, an achievement gained ver a perid f nearly 25 years. Austal s primary facilities cmprise a cmbined defence and cmmercial shipyard in Hendersn, Western Australia; a dedicated defence shipyard in Mbile, Alabama; and a dedicated cmmercial shipyard in Balamban, Philippines. The Cmpany als prvides vessel supprt services frm its facilities in Australia, the United States, Asia, Eurpe, the Caribbean, and the Middle East. Systems develpment, sales and supprt are crdinated frm Austal s facility in Canberra, Australia. SHIPS SYSTEMS SUPPORT 26

Disclaimer Andrew Bellamy, Chief Executive Officer Telephne: +61 8 9410 1111 Fr further infrmatin visit www.austal.cm Disclaimer This presentatin and any ral presentatin accmpanying it has been prepared by Austal Limited ( Austal ). It shuld nt be cnsidered as an ffer r invitatin t subscribe fr r purchase any securities in Austal r as an inducement t make an ffer r invitatin with respect t thse securities. N agreement t subscribe fr securities in Austal will be entered int n the basis f this presentatin. Our presentatin cntains frward-lking statements r prjectins based n current expectatins. These statements are nt guarantees f future perfrmance and are subject t risks and uncertainties. Actual results may differ materially due t: the availability f US gvernment funding due t budgetary r debt ceiling cnstraints; changes in custmer pririties; additinal csts r schedule revisins. Actual results may als effect the capitalizatin changes n earnings per share; the allwability f csts under gvernment cst accunting divestitures r jint ventures; the timing and availability f future impact f acquisitins; the timing and availability f future gvernment awards; ecnmic, business and regulatry cnditins and ther factrs. We disclaim any duty t update frward lking statements t reflect new develpments. Accrdingly, t the maximum extent permitted by applicable laws, Austal makes n representatin and can give n assurance, guarantee r warrant, express r implied, as t, and takes nt respnsibility and assumes n liability fr, the authenticity, validity, accuracy, suitability r cmpleteness f, r any errrs in r missin, frm any infrmatin, statement r pinin cntained in this presentatin. Yu shuld nt act r refrain frm acting in reliance n this presentatin material. This verview f Austal des nt purprt t be all inclusive r t cntain all infrmatin which its recipients may require in rder t make an infrmed assessment f Austal s prspects. Yu shuld cnduct yur wn investigatin and perfrm yur wn analysis in rder t satisfy yurself as t the accuracy and cmpleteness f the infrmatin, statements and pinins cntained in this presentatin befre making any investment decisin. SHIPS SYSTEMS SUPPORT 27

Austal Ltd Andrew Bellamy Chief Executive Officer