ASX Investor Briefing Singapore & Hong Kong

October 2011

NEW TOOLS TO DEFEND A NEW

WORLD

SHIPS ● SYSTEMS ● SERVICE

Contents

• Austal Overview

• The US Strategy

• The U.S. Navy Vessel Programs

• Austal USA’s expansion

• Factors influencing US defense spending

• Austal USA – beyond the current

programs

• Questions

Austal Overview

Austal Overview

• Worlds largest aluminium shipbuilder, founded in Western Australia in 1988

• Designed and built more than 230 vessels including:

– Revolutionary warships and freighters for the U.S. Navy

– Patrol Boats for Royal Australian Navy, Customs and international governments

– High speed ferries capable of record speeds of up to 100km/h-plus and payloads of 1,400 passengers and 370 cars

– Luxury, award winning private vessels

• Listed on the Australian Stock Exchange in 1998 (Stock Code: ASB)

Business Structure

Austal Limited (ASX: ASB)

USA Ships Service & Systems

Austal Overview

• Shipyards in Henderson, Western Australia and Mobile, Alabama, USA

• Global service and sales office network

• 2,700 employees across both shipyards

Historical Performance

EBIT $M

($40)

($20)

$0

$20

$40

$60

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

Other

USA

Australia

The US Strategy

The US Opportunity

• In 1997, the US Navy convened a forum of global shipbuilders to discuss future needs in a “changed world”

• Substantial potential market: – Commercial ferries – Oil & gas support vessels – Growing interest by Navy for high speed

craft • Two barriers to entry

– The Jones Act – Security restrictions in selling to the US

Navy

Austal USA – the beginning

Construction of first assembly completed in 2001

Site acquired in 2000

“Anapaula” & “Veronica” 2 x 45 meter Crew/Supply Boat Delivered - 2002

“Biscayne Lady” 34 meter Dinner Cruise Catamaran Delivered - 2003

“Zephyr” 44 meter Passenger Catamaran Delivered - 2003

“Cloud Nine” 41 meter Dinner Cruise Yacht Delivered - 2003

Austal USA Building Construction - 2000

2002 2003 2004

HSV

Austal USA History

2000

Site aerial view 1998

Site aerial view 2004

Austal USA Facility

“Lake Express” 58 meter Vehicle-Passenger Catamaran Delivered - 2004

107 meter “Alakai” Vehicle-Passenger

Catamaran Delivered - 2007

“Independence” 127 meter Littoral Combat Ship

Delivered - 2009

2004 2005 2008

113 meter “Huakai” Vehicle-Passenger Catamaran Delivered - 2009 HSV

Austal USA History

2007

10 vessel contract for JHSV - 2008

2009

The U.S. Navy Vessel Programs

Littoral Combat Ship

• High speed, shallow draft multi role combatant

• LCS 4 Coronado 75% complete, on time and ahead of budget.

• LCS 6 design work is underway and fabrication will commence in February 2012.

• LCS 8 will commence in September 2012.

• Contractual dates for future awards lock in 2 awards per annum by 31 March for each year between 2012 and 2015.

Average revenue stream of US$600M pa from 2013 to 2017

Joint High Speed Vessel

• Fast freighter designed for intra

theater support to move a brigade

size force and equipment

• Navy plan for a 44 ship fleet

• Austal awarded a 10 ship $1.6B

contract.

• JHSV 1, 2 and 3 are under construction with vessels 4 and 5 due to commence

within the next 6 months and vessels 6 and 7, 6 months thereafter

• Navy and Army have identified a requirement for another 12 vessels. RFP and

contract award expected in FY13/14

Average revenue stream of US$280M pa from 2012 to 2015

Austal’s share of the US Battle Force

Austal's Slice of the Navy's FY 2012-16 Shipbuilding

Plan

AustalJHSV/LCSLockheedLCSAll others(28 ships)

By 2040, JHSV and LCS vessels will comprise almost 25% of the “battle force”

Austal USA’s expansion

United States Navy Order book

potential

By 2012, the order book will exceed

$2B

Facility Expansion plan

Austal USA Today

• 7 JHSV’s fully under contract • LCS 4 – 75% complete, due for

delivery mid 2012 • LCS 10 ship Block Buy –

December 2010, LCS 6 and LCS 8 contracted

• USA headcount is approx. 2,300

• Development of $160M of additional manufacturing facilities has commenced

• Funded principally through: ◦ US$225M Go Zone Bond

issuance – 30 yr term ◦ US$70M of Government Grants

Factors influencing US defense spending

Factors impacting US Defense

spending

• Macro issues presently at play:

◦ US Defense Department strategic review ◦ Budget Control Act of 2011

US Defense historical budget by segment

US Defense spending – the China factor

• China’s official defense budget was $80B in 2010 vs. US budget of $528B.

• Growing at a double digit rate and represents about 2.3% of GDP.

• The Chinese defense budget will exceed the US defense budget by 2023

“The U.S. Navy is continually assessing and observing Chinese naval capabilities to potentially deny the U.S. regional access.” Admiral Gary Roughead, Chief of Naval Operations, April 2011

United States Navy procurement plans

"At the end of the day, we have to ask whether the nation can really afford a Navy that relies on $3 to $6 billion destroyers, $7 billion submarines, and $11 billion carriers." Secretary of Defense – Robert Gates, February 2011

Austal USA – beyond the current programs

Austal USA - Beyond the Plan

• Build out of JHSV and LCS fleets to the 30 year ship

plan of 313 ships

◦ JHSV – Austal is today the exclusive builder of

these vessels

◦ LCS – Austal’s independence class is a proven

platform

• Better fuel economy • Superior sea keeping &

stability • Greater volume & deck area • Safe, efficient work spaces

INDEPENDENCE FREEDOM

Austal USA - Beyond the Plan

• Service and maintenance

◦ First LCS service contract awarded of US$19.6M

◦ Through Life Support

• 10% of original cost per year for 25 years per ship

• Foreign Military sales

◦ LCS interest from Saudi Arabia for the SNEP II program

◦ Saudi Patrol boat program

◦ Offshore Patrol Cutter

The final word ….

Questions ?

33

WESTERN AUSTRALIA EXPORTS MORE THAN

JUST NATURAL RESOURCES

Appendix

Over $1.2B Currently Under Contract

35

Current Backlog $1.74B

• 2 X 47m Catamarans for L’ Express des Illes (Guadeloupe) • 1 X 35m Monohull ferry for Mary D’ Enterprises (New Caledonia) • 1 X 41m Monohull ferry for New Caledonia • 7 X 103m Joint High Speed Vessels for U.S. DOD • 3 X 127m Littoral Combat Ships for U.S. Navy • LCS Technical Services for U.S. Navy • 8 X Cape Class Patrol Boats for Australia Customs and Border Protection

Service • 3 X 22m Wind farm vessels for Turbine Transfers • 44 X Modular accommodation units for mining industry client

Group Balance sheet

• Available undrawn working capital lines in excess of $70M • Net debt including 30 year GZB - $46.8M

• Net cash excluding 30 year GZB - $34.1M

AUD $M 2011 2010 Change

Total Assets 674.6 648.1 4%

Cash 42.3 29.0 46%Restricted cash 129.8 1.1 11,700%Inventories 177.9 275.3 (35%)Property, plant & equipment 208.3 217.7 (4%)

Total Liabilities 400.4 378.8 6%

Bank loans 9.1 41.4 (78%)Go Zone Bond (GZB) 209.7 70.0 200%Government Grants 45.5 59.9 (24%)

Equity 274.2 269.4 2%

Independence V Freedom

• Significantly better fuel economy • Superior sea keeping & stability • Substantially greater volume,

deck area • Safe, efficient work spaces

INDEPENDENCE FREEDOM

Austal’s LCS

Joint High Speed Vessel

• Length: 103m (338ft) • Beam: 28.5m (93.5ft) • Draft: 3.8m (12.5ft) • Payload, Speed, Range:

– 600st @35kts for 1200nm • Embarked troops

– 150 berths; 312 airline seats • Unobstructed area in cargo bay

– 1800m2 (20,000 ft2) • Ramp and cargo bay

– Supports M1A2 Abrams Tank • Aviation capability:

– CH-53E Helicopter • Propulsion:

– 4x MTU 20V8000 diesel engines • Motion Characteristics:

– Active ride control system

Embarked Force Seating Area

Onboard WestPac Express

Crew State Rooms Embarked Force Berthing Compartments

ACCOMMODATIONS l Crew = 42

- 2 x Single SR - 6 x Double SR - 7 x Quad SR

l Troop Seats = 312 l Troop Berths

- Permanent 104 - Temporary 46

l Galley & Messing = 48

JHSV Features

MISSION BAY l Area (with Tie Downs) = 1,858.06 m2

(20,000 ft2) l Clear Height = 4.75m (15.6ft) l Turning Diameter = 26.2m (86ft) l ISO TEU Stations = 6 Interface Panels TELESCOPING BOOM CRANE

• 12.3 MT @ 15m, 18.2 MT @ 10 m

VEHICLE RAMP

• Articulated Slewing Stern Ramp • Straight Aft to 45° Starboard

JHSV Features

Richard Simons, Chief Financial Officer Telephone: + 61 8 9410 1111 For further information www.austal.com Disclaimer This presentation and any oral presentation accompanying it has been prepared by Austal Limited (“Austal”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in Austal or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in Austal will be entered into on the basis of this presentation. Our presentation contains “forward-looking” statements or projections based on current expectations. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to: the availability of US government funding due to budgetary or debt ceiling constraints; changes in customer priorities; additional costs or schedule revisions. Actual results may also effect the capitalization changes on earnings per share; the allowability of costs under government cost accounting divestitures or joint ventures; the timing and availability of future impact of acquisitions; the timing and availability of future government awards; economic, business and regulatory conditions and other factors. We disclaim any duty to update forward looking statements to reflect new developments. Accordingly, to the maximum extent permitted by applicable laws, Austal makes no representation and can give no assurance, guarantee or warrant, express or implied, as to, and takes not responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.

You should not act or refrain from acting in reliance on this presentation material. This overview of Austal does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of Austal’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision

http://www.austal.com/

Slide Number 1ContentsSlide Number 3Slide Number 4Slide Number 5Austal OverviewAustal OverviewSlide Number 8Austal OverviewSlide Number 10The US StrategyThe US OpportunitySlide Number 13Austal USA HistoryAustal USA FacilityAustal USA HistoryThe U.S. Navy Vessel ProgramsSlide Number 18Joint High Speed VesselAustal’s share of the US Battle ForceAustal USA’s expansionSlide Number 22Slide Number 23Austal USA TodayFactors influencing US defense spendingSlide Number 26US Defense spending – the China factorUnited States Navy procurement plansAustal USA – beyond the current programsAustal USA - Beyond the PlanAustal USA - Beyond the PlanThe final word ….Questions ?AppendixOver $1.2B Currently Under ContractGroup Balance sheet Independence V FreedomAustal’s LCSJoint High Speed VesselJHSV FeaturesJHSV FeaturesSlide Number 42