LEADING THE WORLD IN THE DESIGN AND CONSTRUCTION OF HIGH SPEED ALUMINIUM VESSELS

MACQUARIE EMERGING LEADERS CONFERENCE – MAY 2008For

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OVERVIEW

Overview: AUSTAL LIMITED IS A PUBLICLY LISTED AUSTRALIAN COMPANY SPECIALISING IN THE DESIGN AND CONSTRUCTION OF ALUMINIUM COMMERCIAL AND DEFENCE VESSELS.

Corporate Profile: Founded: 1988

Listed: Australian Stock Exchange 1998 (Stock Code: ASB)

Revenue: 2004 AU$ 310 million2005 AU$ 321 million2006 AU$ 389 million2007 AU$ 544 million

Total Employees: 2600 approx. Australia and USA yards combined

Head Office: 100 Clarence Beach Road, Henderson, Western Australia

US Shipyard: Mobile, Alabama, USA

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PRODUCT OVERVIEW

Commercial Veh / Pax

Leisure

Commercial Passenger

Defence

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YARD OVERVIEW -AUSTRALIA

Henderson

Henderson

Henderson

Margate

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YARD OVERVIEW -USA

Mobile, Alabama

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FINANCIAL PERFORMANCE

1H2006 2H2006 1H2007 2H2007 1H2008

Revenue 167.8 224.6 250.5 295.4 333.7EBIT 19.7 26.8 23.1 35.4 33.1EBIT % 11.7% 11.9% 9.2% 12.0% 9.9%Profit before tax 19.6 30.0 25.8 37.9 42.2Tax Expense 1.1 (6.5) (5.9) (12.0) (12.3)OEI 2.1 1.4 0.5 0.2 0.0Net Profit 18.6 22.1 19.4 25.7 29.9EPS (cents) 11.3 10.8 10.3 13.8 15.8

$ millions unless stated For

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CURRENT ORDER BOOK

• 107 metre vessel for Hawaii Superferry.• 127 metre Littoral Combat Ship for US Navy.• 2 x 88 metre vessels for undisclosed client.• 2 x 69 metre vessels for undisclosed client.• 2 x 65 metre vessels for Sultanate of Oman.• 7 x 48 metre vessels for Cotai Strip (Macau).• 2 x 48 metre vessels for New World Fast Ferries.• 6 x 30 metre patrol vessels for the Government of the Republic of

Trinidad and Tobago.• 57 metre private leisure vessel.• 36 metre private leisure vessel.

Total – 25 vessels

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LCS UPDATE

• Vessel launched in April 2008.

• 75% complete when launched.

• Handover of vessel to Navy late 2008.

• GD/Austal and Lockheed vessels tested in 2009.

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LCS LAUNCHF

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LCS ON DRYDOCKF

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LCS DOCKSIDEF

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LCS UPDATE

• “313 ship fleet is the floor.”• “You can look at the shipbuilding plan and you can see that

LCS is the major driver of the number, and it’s not just to drive the number higher”

• “The fact is that we as a Navy do have a gap in what I call the green water. We’re really good in the blue. We’re started to emerge again in the brown water with our riverine force. But in the littoral or green water, we have a gap. LCS fills the gap and LCS is the best ship to fill the gap. It has the speed. It has the shallow draft that expands the amount of area in which we can operate. And it’s also been designed to have rapidly changeable mission modules. That’s part of the design. So LCS is a very important ship for our Navy”

• - Admiral Gary Roughhead, Chief of US Naval Operations – 12 February 2008 (media roundtable at the Pentagon)

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AUSTAL TRIMARAN

• Flight Deck– Larger. Able to operate two

helicopters in high sea states– Significantly higher flight deck

from the waterline– Accommodates larger helicopter

• Largest internal volume– Greater internal volume for

weapons, logistics, combat systems

• Lightweight– Faster for a given powering– Less expensive support costs– Lower fuel consumption for a

given speed• Seakeeping

– Ability to maintain higher speeds in rough seas

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LCS UPDATE

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Original 3 6 6 6 6 5 6 6 5 -

2009 Plan 1 2 3 3 4 6 6 6 6 6

• Long range Navy plan shows continued commitment to 313-ship fleet and 55 ship LCS program.

• 2008 budget - US$337 million (1 vessel) - Award by August 2008.• 2009 plan – US$920 million (2 vessels) – Award both vessels in

June 2009.• RFP released 31 March 2008 with 60 days for submission of bid.• Fixed price incentive contracts.• One builder will be awarded 2008 vessel and one of the 2009

vessels with other builder to build 2009 vessel.

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JOINT HIGH SPEED VESSEL

• Austal awarded US$3 million Preliminary Design contract in February 2008.

• Contracts awarded to: - Austal, Bath Iron Works & Bollinger

• Likely program timeline:July 2008 Complete preliminary designSep 2008 Award detailed design and

construction contract for one vessel and 7 vessel options

Oct 2009 Start of construction first vessel• Likely increase in program size from 8 to 10 - 12 vessels.• Vessel price US$130 million.

FY08 FY09 FY10 FY11 FY12

Contract Award 1 2 2 2 1

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US OPERATIONS EXPANSION

• Modular Manufacturing Facility to be built in two stages.

• Stage one design underway, construction to commence Sept 2008.

• Stage one expenditure up to US$70 million.

• Stage one capacity - ability to build three LCS size vessels per year.

• Funding support - Katrina Relief money US$33 million.

- State of Alabama in excess of US$20 million cash over 4 years.

Full expansion will increase capacity to six LCS size vessels per year

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MULTI ROLE VESSEL

• 80 - 90 metre trimaran• Large flexible RoRo

mission / logistics deck• Multi mission helicopter

capability• Systems packaged

mission modules• Speed > 25 knots• Range 4,500 nautical

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LEISURE MARKET

• Standard line of vessels for both private & commercial leisure operations.

• Range of vessels between 35 – 60 metres.

• Range of cruise yachts, live aboard/dive vessels and adventure vessels from 8 –80 passengers.

• Leisure market remains strong despite recent turbulence in equity markets.

• Strong demand for boutique cruise vessels.

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AUSTRALIAN SUBMARINE CORPORATION

• Austal teamed with General Dynamics (51/49) % basis.• Attraction to Austal;

– Increased participation in Defence business.– Long term maintenance contract to service submarines (25 years).– Potential to build other defence vessels from ASC facility.– Contract to build three Air Warfare Destroyers with a value of $8 billion.

• Reasons for teaming with General Dynamics;– GD are technology partners with ASC on submarine maintenance.– GD have proven track record in conventional warship building.– GD have significant experience at building AWD’s having built 26 similar vessels

in Bath, Maine.– GD are advisors to ASC on the design of Common User Facility to be built by the

SA Government.• Sale of ASC likely to commence second half of 2008.

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OUTLOOK

Australian Operations• Sales enquiries for passenger only commercial vessels remain strong.• Continued gains from Advanced Ship Building modular construction through

reduction in labour hours.• Increasing interest in Multi Role Vessel.• Continued focus on building capability in defence programs.• Hong Kong / Macau market expected to remain strong.• Expanding service / maintenance business.• Leisure boat market.

US Operations• Preparing proposal for financial year 2008 & 2009 LCS vessels.• Conducting JHSV Preliminary Design contract with contract award Sept 08.• Designing stage one of Modular Manufacturing Facility.

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INVESTOR RELATIONS CONTACTS

John Rothwell - Executive ChairmanGreg Metcalf - Chief Financial Officer

Telephone - +61 89 410 1111

For further information – www.austal.com

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