Austal : Annual Report 2023

AustalLimited

AnnualReport

2023

Contents
Contents	i
Index to the notes to the financial statements	ii
Chairman's report	1
Chief Executive Officer's report	4
Review of operations	11
Directors' report	15
Nomination & Remuneration Committee Chair's message	21
Remuneration report	23
Auditor independence	47
Consolidated statement of profit and loss and other comprehensive income for the year ended 30 June 2023	48
Consolidated statement of financial position as at 30 June 2023	49
Consolidated statement of changes in equity for the year ended 30 June 2023	50
Consolidated statement of cash flows for the year ended 30 June 2023	51
Notes to the consolidated financial statements	52
Directors' declaration	119
Independent audit report to the members of Austal Limited	120
Shareholder information	126
Corporate governance statement and ESG report	127
Corporate directory	127

Austal Limited | Contents i

Index to the notes to the financial statements

Basis of preparation	52
Current year performance	56

Capital structure

78

Working capital

84

Infrastructure & other assets

91

Financial risk management	104
Unrecognised items	112
The Group, management and related parties	115

ii Austal Limited | Index to the notes to the financial statements

Company Overview

FY2023 has been a year of significant achievement and progress for Austal, while meeting the challenges of new product lines, new manufacturing and sustainment facilities and a competitive global marketplace for both defence and commercial shipbuilding.

Continuing a clear pathway of expansion, with the aim of becoming the Indo Pacific's leading naval defence prime contractor, Austal grew industrial and sovereign capability in Australia and the United States, with several new projects won and existing contracts further developed.

Worldwide, the company was awarded contracts for 11 new ships, while a total of 9 ships were delivered by Austal's shipyards in Australia, the US, Philippines and Vietnam.

In the United States, the Austal team delivered two Independence-variant Littoral Combat Ships; LCS-32 and LCS-34, and one Spearhead-class Expeditionary Fast Transport, EPF-13; the US Navy's largest semi- autonomous ship. Reflecting the great confidence the US Government has in Austal USA's steel manufacturing capabilities, the Mobile, Alabama shipyard was awarded new contracts for three more T-ATS (Towing, Salvage and Rescue) ships and up to seven T-AGOS (Ocean Surveillance) ships for the US Navy.

An historic moment was celebrated by Austal teams around the world when the USS Canberra (LCS 30) was commissioned in Sydney, Australia in July 2023. Originally designed by Austal Australia and constructed by Austal USA, the USS Canberra is the first US Navy ship to be commissioned outside of the United States

and is named after Australia's capital and in honour of the original HMAS Canberra that was sunk during World War II.

In Western Australia, Austal continued to exceed expectations in terms of quality, productivity and efficiency, delivering 4 Evolved Cape-class Patrol Boats for the Royal Australian Navy in FY2023. Over the past 5 years, Austal Australia has delivered 24 ships, including Evolved Cape-class and Guardian-class Patrol Boats and multiple commercial vessels, for operators around the world.

In the Philippines, Austal completed the largest (by volume) commercial ferry ever constructed by an Austal shipyard - the 115 metre 'Express 5' for Molslinjen

of Denmark. The Balamban, Cebu shipyard has now delivered more than 20 ships to 12 operators in 11 countries in 10 years.

Austal Vietnam completed the construction of a 66-metrehigh-speed ferry, 'Apetahi Express' for repeat customer The Degage Group of French Polynesia during the financial year; the third vessel constructed at the Vung Tau shipyard since opening in 2018.

Another innovation introduced by Austal in FY2023 was the DeepMorpher™ artificial intelligence tool that is helping to optimise hull forms, quickly and efficiently. The technology is assisting and enhancing the expertise developed by the design and engineering team over 35 years, to deliver the best possible solutions for defence and commercial customers around the world.

iii	Austal Limited | Annual Report 2023

Highlights 2023

$1.59B	$2.32B	40
Revenue	Order Book	Ships scheduled or
		under construction

9	60	4,300
Ships	Vessels under	Employees
delivered	sustainment

SHIPYARDS

SERVICE CENTRES AND OFFICES

	UK	London
	USA
	Washington
San Diego	Mobile
		Muscat
		Oman	Vung Tau
	Port of Spain		Balamban
		Vietnam
	Trinidad and Tobago		Singapore	Philippines

Darwin

		Cairns
	Australia	Brisbane
Henderson (Perth)		Canberra

Austal Limited | Annual Report 2023

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