Austal (ASB) 2024年年度報告「ASX」.pdf

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1、Austal LimitedAnnual Report2024Austal Limited|Annual Report 2024iAustal Limited|Annual Report 2024iiIndex to the notes to the financial statementsContentsContents.iIndex to the notes to the financial statements.ii2024 Overview.iiiChairmans report.1Chief Executive Officers report.4Review of operation

2、s.12 Directors report.16Nomination&Remuneration Committee Chairs message.22Remuneration report.24Auditor independence.48Consolidated statement of profit and loss and other comprehensive income for the year ended 30 June 2024.49Consolidated statement of financial position as at 30 June 2024.50Consoli

3、dated statement of changes in equity for the year ended 30 June 2024.51Consolidated statement of cash flows for the year ended 30 June 2024.52Notes to the consolidated financial statements.53Consolidated entity disclosure statement as at 30 June 2024.122Directors declaration.123Independent audit rep

4、ort to the members of Austal Limited.124Shareholder information.130Corporate governance statement and ESG Report.131Corporate directory.131Basis of preparation.53 Note 1 Corporate information.53Note 2 Basis of preparation.53Current year performance.57Note 3 Operating segments.57Note 4 Revenue.60Note

5、 5 Other profit and loss.66Note 6 Earnings per share(EPS).69Note 7 Reconciliation of net profit after tax to net cash flows from operations.70Note 8 Dividends paid and proposed.71Note 9 Income and other taxes.72Capital Structure.79Note 10 Cash and cash equivalents.79Note 11 Interest bearing loans an

6、d borrowings.79Note 12 Reconciliation of financing cash flow to interest bearing debt.81Note 13 Contributed equity and reserves.82Note 14 Government grants relating to assets.84Working Capital.85Note 15 Trade and other receivables.85Note 16 Prepayments.86Note 17 Inventories and work in progress.86No

7、te 18 Trade and other payables.87Note 19 Provisions.88Infrastructure&other assets.94Note 20 Property,plant and equipment.94Note 21 Leases.97Note 22 Intangible assets and goodwill.99Note 23 Impairment testing of non-current assets.101Note 24 Investments and other financial assets.104Note 25 Other non

8、-current assets.105Financial Risk Management.106Note 26 Financial risk management.106Note 27 Derivatives and hedging.112Note 28 Fair value measurements.113Unrecognised items.115Note 29 Commitments and contingencies.115Note 30 Corporate investigations.116Note 31 Events after the balance date.117The G

9、roup,management and related parties.118Note 32 Parent interests in subsidiaries.118Note 33 Related party disclosures.118Note 34 Key management personnel(KMP)compensation.118Note 35 Share based payments.119Note 36 Parent entity information.121 Main cover image:Austal engineers Clara Szolnoky and Luke

10、 Beumont Barrett in the Patrol Boat Autonomy Trial(PBAT Remote Command Centre,Henderson,Western Australia.Top image:PBAT Sentinel,the decommissioned Armidale-class Patrol Boat utilised to complete the Patrol Boat Autonomy Trial for the Royal Australian Navy).Austal Limited|Annual Report 2024iiiAusta

11、l Limited|Annual Report 2024iv45Ships scheduled or under construction7Ships delivered4,258Employees$1.469B Revenue67 Vessels under sustainment$12.7BOrder BookHighlights 2024 Company OverviewSHIPYARDSSERVICE CENTRES AND OFFICESWashingtonMobileSan Diego Balamban PhilippinesCanberraHenderson(Perth)Cair

12、nsDarwin Vung Tau VietnamAustraliaUSASingaporeBrisbaneLondonUKPort of SpainTrinidad and TobagoCharlottesville(including options)Celebrating 35 years of shipbuilding in FY2024,Austal has continued to grow into a position of strength,expertise and capability in the global maritime industry;delivering

13、multiple defence and commercial shipbuilding programs,in-service support and sustainment programs,and cutting-edge technologies for customers around the world.Austals demonstrated success in naval shipbuilding,and collaboration with industry partners and stakeholders here in Australia has seen the c

14、ompany selected to become the Commonwealth of Australias Strategic Shipbuilder,under a formal Agreement anticipated to be finalised in the final quarter of CY2024.The Commonwealths Strategic Shipbuilding Agreement(SSA),announced in November 2023,will enable continuous naval shipbuilding to be achiev

15、ed through the more efficient awarding of naval vessel contracts,and the more effective engagement of industry partners to help deliver multiple,new naval shipbuilding projects announced under the Commonwealths Defence Strategic Review-with Austal as the Strategic Shipbuilder.Pilot projects announce

16、d under the SSA include the Landing Craft(Medium)and Landing Craft(Heavy)vessels for the Australian Army,with subsequent projects to include General Purpose Frigates and Large Optionally Crewed Vessels for the Royal Australian Navy.The SSA is a transformational development for Austal and Australias

17、defence industry,with decades of naval shipbuilding work scheduled to be completed in the Henderson,Western Australia shipyard precinct engaging Austal employees,contractors and supply chain partners,industry partners and stakeholders.Austal Australias existing naval shipbuilding programs continued

18、with industry-leading efficiency over FY2024,with four Guardian-class Patrol Boats and one Evolved Cape-class Patrol Boat delivered during the financial year.Austal is contracted for a further four Guardians(24 in total)and four Evolved Capes(10 in total)as at 30 June 2024.Worldwide,the company deli

19、vered a total of 7 ships,and was awarded contracts for 12 new ships during the reporting period.In the United States,Austal USA delivered the penultimate(18th)Independence-variant Littoral Combat Ship,the USS Kingsville(LCS 36)while also continuing construction of the future USS Pierre(LCS 38).The s

20、hipyard also delivered the 14th Spearhead-class Expeditionary Fast Transport,USNS Cody to the United States Navy,while continuing construction of EPFs 15 and 16.Austal USA also made significant progress on multiple steel shipbuilding programs for the United States Navy,including the Towing,Salvage a

21、nd Rescue Ships,T-ATS 11,12 and 13 and the Auxiliary Floating Dock(Medium),and also launched Overlord Unmanned Surface Vessel Vanguard(OUSV 3).Construction commenced on the first of five(awarded to date)Landing Craft Utility 1700-class vessels and the team continued fabrication of five command modul

22、es for Virginia and Columbia-class submarines and six aircraft elevators for two Gerald R.Ford-class aircraft carriers for the United States Navy.Austal USA also received construction contracts for three Expeditionary Medical Ships(EMS)and the first of up to seven Ocean Surveillance(T-AGOS)ships in

23、FY2024;and broke ground on new final assembly facilities(including ship lift capability)at the Mobile,Alabama shipyard.This new facility will enable larger steel ships,including the United States Coast Guard Offshore Patrol Cutters,to be assembled and serviced.In the Philippines,Austal completed a n

24、umber of commercial vessel service repair contracts before starting construction on a 32-metre passenger ferry for Rottnest Fast Ferries,of Hillarys,Western Australia in March 2024.The Balamban,Cebu based team are now preparing for an exciting new project,a 66-metre sailing cargo trimaran,for the Ve

25、la Transport Group of France.Austal Vietnam commenced construction of an all-new Austal vessel design in FY2024;a 71-metre steel hull RoPax Cargo Vessel for a valued,repeat customer,the Degage Group of French Polynesia.The customised ferry solution,designed by Austal Australia offers great cargo and

26、 passenger capacity for oceangoing journeys and is first of class.From a technology,research and development perspective,a highlight of the year has been the success of the Patrol Boat Autonomy Trial(PBAT),completed for the Royal Australian Navy.Led by Austal in collaboration with Greenroom Robotics

27、 and Trusted Autonomous Systems,the trial included a series of tests on remote and autonomous operations,over an extended period of time on Sentinel,a decommissioned Armidale-class Patrol Boat,off the coast of Western Australia.Designed to test the reliability of,and build trust in the vessels auton

28、omous systems,an endurance trial included a number of collision avoidance events that demonstrated the capabilities of the platform and navigation programs that may help deliver optionally crewed vessels for the Royal Australian Navy in the future.Austal Limited|Annual Report 2024vAustal Limited|Ann

29、ual Report 2024viHeadingPatrol Boat Autonomy Trial Western AustraliaPBAT Sentinel navigating autonomously through the Abrolhos IslandsGreenroom Robotics team onboard PBAT SentinelPBAT Sentinel during endurance trialsPBAT team in the Remote Command Centre during sea acceptance trialsAustal Australia,

30、in collaboration with Greenroom Robotics and Trusted Autonomous Systems(Defence Cooperative Research Centre)successfully completed the Patrol Boat Autonomy Trial(PBAT)for the Royal Australian Navy in FY2024.Funded by the Commonwealth of Australia,the PBATs objectives were to establish robotic,automa

31、ted and autonomous elements on a former Navy patrol boat,as a proof-of-concept demonstrator for optionally crewed,autonomous and/or remote operations.The trial also explored the legal,regulatory pathways and requirements of operating an autonomous vessel.PBAT included a series of trials involving re

32、mote and autonomous navigation events,conducted off the Western Australian coastline during March and April 2024.Commodore Michael Turner,Navys Director General Warfare Innovation Navy said“PBAT stands out not only for its demonstration of autonomous technology and its practical application to opera

33、tional vessels,but also for the spirit of collaboration that underpinned its success”.Austal AustraliaPBAT Sentinel during endurance trialsPBAT team in the Remote Command Centre during sea acceptance trialsAustal Limited|Annual Report 2024viiAustal Limited|Annual Report 2024viiiHeadingEvolved Cape-c

34、lass Patrol BoatsAustal Australia delivered the 6th Evolved Cape-class Patrol Boat(ECCPB),ADV Cape Pillar,to the Royal Australian Navy in October 2023.The 7th ECCPB,ADV Cape Solander,was delivered in August 2024,leaving three more vessels to be delivered under the current contract.In August 2023,loc

35、al supply chain partners contributing to both the Evolved Cape and Guardian-class Patrol Boat Projects joined the Austal team at the Henderson,Western Australia shipyard for a celebration of both shipbuilding projects continued productivity,efficiency and success.Austal AustraliaADV Cape Pillar(ECCP

36、B 6)Some of the local supply chain partners at the Austal Australia shipyard in Henderson,Western AustraliaAustal Limited|Annual Report 2024ixAustal Limited|Annual Report 2024xHeadingGuardian-class Patrol BoatsAustal Australia delivered four Guardian-class Patrol Boats(GCPBs)to the Commonwealth of A

37、ustralia under the Pacific Patrol Boat Replacement Project in FY2024;each one gifted to the Pacific Island nations of the Federated States of Micronesia,Papua New Guinea,Samoa and Fiji respectively.The 20th Guardian-class was delivered to the Commonwealth of Australia in July 2024 and gifted to the

38、Republic of Kiribati.Following a contract extension awarded in June 2024,Austal Australia is now contracted to deliver a total of 24 Guardian-class Patrol Boats.Guardian-class Patrol Boats alongisde at Austal,Henderson,Western Australia Austal AustraliaHMPNGS Gilbert Toropo,the 4th GCPB for Papua Ne

39、w Guinea,was handed over in October 2023 Austal Limited|Annual Report 2024xiAustal Limited|Annual Report 2024xiiHeadingAustal USA delivered the penultimate Independence-variant Littoral Combat Ship,the USS Kingsville(LCS 36),in March 2024.The final,19th Independence-variant LCS,the future USS Pierre

40、,continued construction at Mobile,Alabama during the reporting period and is scheduled for delivery to the US Navy in 2025.USNS Cody(EPF 14),the first EPF Flight II vessel,was delivered to the US Navy in January 2024.EPF Flight II vessels feature enhanced medical capability(afloat)and can provide cr

41、itical combat care in austere and contested operating environments.LCS ProgramEPF ProgramUSS Kingsville(LCS 36)USNS Cody(EPF 14)Austal USAAustal Limited|Annual Report 2024xiiiAustal Limited|Annual Report 2024xivAustal USATowing,Salvage and Rescue(T-ATS)Landing Craft Utility(LCU)1700-ClassConstructio

42、n on the first Landing Craft Utility(LCU)1700-class vessel commenced in April 2024.Austal USA has been awarded contracts for five LCU vessels,with options for up to 12 vessels in total,valued at US$379.7 million.LCU are carried aboard the US Navys amphibious assault ships to the objective area and u

43、sed across a range of military operations to deliver vehicles,personnel and cargo from sea-to-shore and back.Render of the Landing Craft Utility(LCU)1700-classSolid progress has been made on the Towing,Salvage and Rescue Ship(T-ATS)Program for the US Navy during FY2024,with construction continuing o

44、n the first three of five vessels contracted.The keel laying for the first ship USNS Billy Frank Jr.(T-ATS 11),was held at the Mobile,Alabama shipyard in November 2023.The Navajo-class T-ATS ships provide ocean-going tug,salvage,and rescue capabilities to support US fleet operations.Missions includi

45、ng oil spill response,humanitarian assistance,and wide area search and surveillance.USNS Billy Frank Jr.under constructionUnited States Marine Corps Lieutenant General Karsten S.Heckl joined the Austal USA team to mark the start of construction of the first LCU,in April 2024Austal Limited|Annual Rep

46、ort 2024xvAustal Limited|Annual Report 2024xviMobile,Alabama Shipyard ExpansionAustal USA announced the design and subsequent breaking ground on a new final assembly facility at the Mobile,Alabama shipyard in FY2024.The infrastructure expansion includes a new assembly building,waterfront improvement

47、s,and a new ship lift system.The project is scheduled to be completed and fully operational by summer of 2026.The new assembly bay will enable the erection of large steel modules for United States Navy and Coast Guard ships,including the Offshore Patrol Cutter(OPC)and TAGOS-25 programs.The expansion

48、 includes a ship lift that will provide a safe and reliable system to launch ships as they are completed in the assembly buildings.The articulated ship lift will enable large ships,such as the new Constellation-class Frigates,Littoral Combat Ships and Offshore Patrol Cutters to be docked at the land

49、-side facility,for repairs and maintenance.The new final assembly building,comprising three bays,will occupy four and a half acres,approximately 120 metres long by 150 metres wide and provide nearly 18,000 square metres of new covered manufacturing space.When this expansion is complete,Austal USA s

50、Mobile,Alabama facility will include a steel panel line of approximately 11,000 square metres,two module manufacturing facilities totaling over 92,000 square metres of covered manufacturing space optimised for serial production,and seven assembly bays providing over 37,000 square metres of covered s

51、pace.In total,the expanded Mobile facility will cover 180 acres and,when this project is complete,nearly 140,000 square metres of covered manufacturing space.Austal USARenders of the new Final Assembly Building and Ship Lift,under constructionAustal Limited|Annual Report 2024xviiAustal Limited|Annua

52、l Report 2024xviiiHeadingAustal and Gotlandsbolaget of Sweden signed a Memorandum of Understanding(MOU)in February 2024 to negotiate to develop a construction contract for the Gotland Horizon X catamaran concept,first announced in April 2023.Gotland Horizon X is intended to be a high-speed aluminium

53、 catamaran that will utilise gas turbines in a combined cycle to transport up to 1,450 passengers,cargo and vehicles between the Swedish mainland and the island of Gotland.Under the terms of the MOU,Austal and Gotlandsbolaget will work towards a contract for the design and construction of a high-spe

54、ed catamaran to be built at the Austal Philippines shipyard.In July 2024 Vela Transport of France awarded Austal a contract(in the range of A$40-45 million)to design and construct a new 66.8 metre sailing cargo trimaran.The first-of-class high-value cargo vessel,based on a concept by VPLP of Paris a

55、nd featuring a sailing system by MerConcept,will be constructed by Austal Philippines,and is scheduled for delivery in mid CY2026.Meanwhile,construction of a 32 metre aluminium passenger ferry for Rottnest Fast Ferries of Hillarys in Western Australia commenced at the Balamban,Cebu shipyard in Janua

56、ry 2024 and is due for delivery by the end of the calendar year.Austal PhilippinesSailing towards a cleaner futureVELA Transports sailing cargo trimaranRender of Gotland Horizon XRottnest Fast Ferries 32 metre catamaran under constructionAustal Limited|Annual Report 2024xixAustal Limited|Annual Repo

57、rt 2024xxAustal VietnamIn March 2024,Austal Vietnam was awarded a contract to design and construct a 71-metre roll-on-roll-off passenger(ROPAX)cargo vessel for repeat customer,The Degage Group of French Polynesia.The new,steel monohull ferry design from the Austal Australia team includes an aluminiu

58、m superstructure accommodating up to 140 seated passengers and 17 crew,and features a main cargo deck area of 494 sqm-capable of transporting a combination of 10 and 20 containers,palletised cargo and vehicles.With a cruising speed of 12 knots and a range of 1,000Nm,the new ship is designed to opera

59、te sustainable inter-island transport services between Papeete and the Palliser Islands in French Polynesia.Austal has previously designed and built six vessels for The Degage Group.Austal Vietnam starts construction on a new 71 metre steel monohull RoPax ferryAustal Vietnam and The Degage Group cel

60、ebrated the plate cutting for Dory 2 in June 2024Austal Vietnams CNC machine at the Vung Tau shipyardAustal Limited|Annual Report 2024xxiAustal Limited|Annual Report 2024xxiiDelivering In-Service Support for our customers around the world Austal Australia opened a new,dedicated maintenance facility

61、at the Trinidad and Tobago Coast Guard(TTCG)base in Harts Cut,Chaguaramas,on the island of Trinidad in October 2023.The new maintenance facility,constructed and operated by Austal under an In-Service Support agreement signed by the Government of the Republic of Trinidad and Tobago in April 2022,enha

62、nces the local teams capability to provide ongoing support to the Coast Guards Cape-class Patrol Boats,constructed by Austal in Australia and delivered in 2021.Austal has delivered a total of 13 vessels to Trinidad and Tobago,including six 30 metre Fast Patrol Craft and four 41 metre Passenger Expre

63、ss catamaran ferries delivered in 2010,and two Cape-class Patrol Boats and a 94 metre Auto Express catamaran ferry,A.P.T.James,delivered in 2021.Austal AustraliaTTCG Base,TrinidadTTS Scarborough(CG42)and TTS Port of Spain(CG41)Austals new maintenance facility,TrinidadAustal Limited|Annual Report 202

64、4xxiiiAustal Limited|Annual Report 2024xxivAustal Giving and Austal supply chain partners supporting Veterans Transition Centre,JarrahdaleAustal Giving and many of Austals local supply chain partners are proudly supporting the refurbishment of the Veterans Transition Centre(VTC)in Jarrahdale,Western

65、 Australia.The VTC is a not-for-profit registered charity that offers accommodation and respite,and associated services(such as counselling)in collaboration with local industry partners,for local Australian Defence Force(ADF)veterans and their families.Located in a natural bush setting on approximat

66、ely 42 acres in the Darling Ranges,45 minutes drive from Perth,the VTC is an ideally situated and effective support facility for ADF veterans.Austal employees and our supply chain partners have been generously volunteering their time and various surplus materials to help refurbish the facilitys main

67、 galley and two dormitories since 2021.Learn more at;www.veteranstc.org.au/how-to-help.Austal AustraliagivingAustal team volunteers at the VTC VTC dormitories,JarrahdaleAustal Limited|Chairmans report 1 Chairmans report Chairmans report Financial Year Highlights Financial Year Highlights The Groups

68、order book has grown to$12.7 billion,on the basis that all contract option agreements are exercised.The Strategic Shipbuilding Agreement with the Commonwealth should provide opportunity for further substantial increases to the order book.The diversification we previously added to the US portfolio pr

69、oduced orders in autonomy,submarine modules and additive manufacturing.Continued the transition from the LCS program and secured a very significant forward order book to deliver long-term value to investors.Cash generation was impacted by the loss-making T-ATS and AFDM contracts.Good underlying busi

70、ness performance delivered a solid EBIT despite tough commercial market.Resolution of the legacy Department of Justice(DoJ)investigation allows us to focus on a bright future.The appointment of a new Chairman and my transition.I am pleased to present the FY2024 Annual Report to shareholders on behal

71、f of the Board of Austal Limited,my last as Chairman of the Company.Austal had an excellent year in terms of its business strategy to secure its long-term future.The growth in order book to$12.7 billion,the diversification of build programs,and the announcement of the Strategic Shipbuilding Agreemen

72、t in Western Australia all positioned Austal for future success.At the same time,we are addressing the initial build issues with the Towing,Salvage,and Rescue ships(T-ATS)and Auxiliary Floating Dock Medium(AFDM)programs.They remain loss-making and we are in discussions with US Navy about how we reso

73、lve the T-ATS situation.As expected,the build program has had an effect on our short-term cashflow.The unique circumstances of these programs are different to the contracting and cost models of our other build programs,so the learnings gained provide a tremendous opportunity for the business.The vol

74、ume and diversity of contracts we have in the US,soon to be followed in Australia,means we will have continuous naval shipbuilding in our facilities into the 2030s and 2040s.Again,our shipyards in the USA and Australia produced great results with their vessel deliveries this year.Austal has always m

75、aintained a strong customer relationship focus,and our customers have worked constructively with us to progress construction programs and the delivery of vessels.The global transition towards zero emissions continues to impact the current volume of ferry orders,as can be seen in the financial result

76、s for Australasia.I am however pleased that there is light at the end of the tunnel and we have recently won 3 commercial orders with more opportunities in the pipeline.The pinnacle of the year,perhaps my career,was attending the commissioning of the Austal-built Littoral Combat Ship USS Canberra in

77、 Sydney in July 2023.This was the first time the US Navy has ever commissioned a warship outside of the United States and is a testament to the enduring relationship between the US and Australia,and indeed the important part that Austal plays in it.Strategic initiatives Strategic initiatives Austal

78、continues to progress its strategy towards our 2050 vision.Our focus remains on long-term,sustainable and profitable growth.This will be across shipbuilding,support and systems.In Australia,we aspire to become the Sovereign Defence Prime Shipbuilder,through organic and inorganic growth.In the US,we

79、also aim to grow our shipbuilding position,as we efficiently deliver the programs we have won,in tandem with continuing to invest in,and expand,our shipyard as we win more work.The pivot to steel is already yielding significant future opportunities through program wins in the USA,beyond the initial

80、T-ATS contract.We will continue to invest in our facilities so we are ready for the future and all types of ships that we may build.Our capital investment plans are firming,and I expect the Company will be able to release more detail in advance of our AGM in November.The future opportunity for Austa

81、l with submarine modules is substantial.We have commenced work on both Virginia-class and Colombia-class modules and will continue to grow this opportunity as submarine prime contractors look to utilise the existing defence industrial landscape to meet their construction deadlines.The new floating d

82、ock,“Independence”,has been delivered to San Diego.This is taking longer to commission than anticipated due to government 2 Austal Limited|Chairmans report environment studies and approvals,but once it is online it will enable further growth in our support business.Our investment in systems continue

83、s to yield some small,but strategically important wins,with our Lifecycle Upkeep Sustainment Intelligence(LUSI)software on trial on the Cape-class vessels with the Royal Australian Navy.The capability that the upgraded MARINELINK software provides in terms of efficient operation of vessels will cont

84、ribute to lower emissions and increased efficiencies in the commercial sector.Risks&opportunities Risks&opportunities It was pleasing to see the legal challenge on the Offshore Patrol Cutter(OPC)concluded in the courts with no impact on the program.The first steel ships on the new panel line are the

85、 T-ATS vessels.The strategic importance of this first build program was to establish the steel production line and fine-tune our processes in preparation for OPC and T-AGOS.The other steel shipbuilding programs in the portfolio include substantial cost-escalation protections,giving us confidence tha

86、t the T-ATS and AFDM issues are isolated and the learnings from T-ATS and AFDM will benefit the future programs.The AFDM commenced construction and adds to the throughput on our new steel panel line.The Evolved Cape-class and Guardian-class Patrol Boat Programs continue to progress well with multipl

87、e deliveries in the year.The Australian Navys Surface Combatant Fleet review opened the door to more Evolved Cape-class vessels and in the year just completed we received additional orders for 2 Evolved Cape-class and 2 Guardian-class Patrol Boats.Finally,the global commercial fast ferry fleet conti

88、nues to age and will need replacement.More stringent emissions regulations may drive some of this replacement and we are well placed with new product concepts.It is long overdue but the winning of three commercial orders should mean the losses incurred this year in our Australasian segment are not r

89、epeated in FY2025.The pivot to steel,in tandem with the expansion of our support business and increasingly diversified order book,has put us in a great place in the US,and now Australia too through the Strategic Shipbuilding Agreement.Board update Board update There have been a number of Board chang

90、es this year,including my own transition from Chairman to Non-Executive Director.Non-Executive Director Michael McCormack tendered his resignation from the board of Austal in March 2024.Mr McCormack served on the Austal board since 2020 and recently joined the board of Whitehaven Coal Limited,in add

91、ition to his other board positions at Central Petroleum,Origin Energy,the Australian Brandenburg Orchestra Foundation and the Clontarf Foundation.I would like to thank Mick for all that he has done during his time with us.I was pleased to announce the appointment of Kathryn Toohey AM CSC as a Non-Ex

92、ecutive Director of the Company.Kathryn brings strong program management,government procurement,digital and technology expertise to Austal,through her experience in senior executive roles in the Department of Defence,including Head of Land Capability with the Australian Army,responsible for the mode

93、rnisation and sustainment of all Army equipment and infrastructure including helicopters,tanks,communication systems and watercraft.In her last appointment within the Australian Defence Force Headquarters,she was responsible for integrating capability across the three Services as part of the Vice Ch

94、ief of the Defence Force Group.Kathryn was appointed a Member of the Order of Australia in 2017 for exceptional service to the Australian Defence Force”in the fields of capability development and education.Kathryns breadth and depth of defence industry expertise(Army),aligns perfectly with Austals s

95、trategic direction,especially considering the landing craft programs in Australia.I would like to conclude with some comments on my transition.I have retired from the position of Chairman of the Company to serve on the Austal board as a Non-Executive Director.Former US Secretary of Navy Richard Spen

96、cer will replace me as Chairman,and will also join the Board of Austal USA,providing important linkages between the two Boards.My retirement as Chairman marks a significant milestone in the history of Austal,having served in the position for 37 years since I founded the Company in 1987.During that t

97、ime Austal has grown from a small,privately-owned,West Australian,commercial shipbuilder to an ASX-listed,international defence prime contractor with a multibillion-dollar order book,over 4,200 employees and substantial ship building operations in Australia,the United States and South-East Asia.I se

98、t out four important criteria to select the new chair excellent character;strong business acumen;in-depth knowledge of the US defence industrial base;and enduring relationships with the Australian and/or US defence sector.Those criteria narrowed the field of candidates considerably,but Richard was a

99、t the top of the list,and Im pleased that he was receptive to our approach.It has been a challenging year for the Board and senior leaders of the Company,facing challenges Austal Limited|Chairmans report 3 such as legacy regulatory investigations,management changes and the transition from mature pro

100、grams.The contract wins in the USA and the announcement of Austal as the Strategic Shipbuilder in WA,provides even more certainty to the Company.The transition from aluminium to steel and the growth in the number of programs provide new opportunities,but will require focus from the teams as they gro

101、w.CEO Paddy Gregg continues to lead the revitalisation of our corporate strategy,while closely managing the Companys operations.The implementation of that strategy and an improved focus on customer relationships means that we have clear objectives.I remain optimistic about the future,driven by a rec

102、ord pipeline of work for the US operation,albeit we will have to navigate some challenges in the years coming as we progress the steel programs,which is part and parcel of commencing major new programs.The Board is improving internal compliance and reporting practices between the USA operations and

103、Austals corporate headquarters,and we will continue to work hard to implement these improvements.HSEQ HSEQ As always,our prime focus is ensuring that our employees go home safely every day.We continue to demonstrate excellent safety performance and pursue more stringent targets each year.It was espe

104、cially pleasing to see our largest site,our Mobile facility,again achieve awards for safety performance.ESG ESG Austal continues to ensure that its operations grow and evolve in a sustainable manner.Our focus is to build on a range of ESG initiatives with a particular focus on environmental and soci

105、al risks and opportunities in the year ahead.Since FY2021 our enhanced ESG report has adopted the Global Reporting Initiative and we have published our targets for GHG embodied emissions reductions in FY2022:By 2030,a 50%reduction of embodied emissions(Scope 1,2 and 3-upstream)and by 2050 a Net Zero

106、 commitment consistent with Science-Based Targets.Austal continues to advance research and development projects targeting improved methods to design and construct vessels with increased fuel efficiency and reduced emissions,or even no emissions with the recently announced Austal-built cargo sailing

107、ship.We continue to develop in areas such as additive manufacture,which looks like it will play a vital role in submarine build and support going forward.Thank-you Thank-you On behalf of the Board,I would like to thank each and every one of our people for their adaptability and resilience as we cont

108、inue to deliver on diverse shipbuilding programs.The recent contract wins in the USA and the Strategic Shipbuilding Agreement in Australia will underpin the business for many years and provides certainty for shareholders and employees.These wins are testament to the commitment of our people during t

109、he year.I would like to acknowledge the Austal executive team and support managers for their leadership in guiding the Company through a volatile macroeconomic period.I also want to express my appreciation to Austals loyal shareholders.John Rothwell AO Immediate Past Chairman(Effective until 30 June

110、 2024)4 Austal Limited|Chief Executive Officers report Chief Executive Officers report Chief Executive Officers report Group financial results Group financial results Key financial highlightsKey financial highlights Total revenue for the year decreased by 7%to$1,469 million in FY2024.FY2024 EBIT inc

111、reased significantly to a profit of$56.5 million,compared to EBIT loss of$(4.8)million in FY2023.Underlying EBIT of$58.9 million recognising the gain on a land sale of$54.4 million and the one-off impact of Department of Justice(DoJ)related costs$(56.8)million.Austal reported a NPAT of$14.9 million

112、in FY2024 compared to NPAT loss of$(13.8)million in FY2023.Austal delivered operating cash flow of$(13.0)million(FY2023:$86.7 million)and FY2024 net cash flow of$(5.7)million(FY2023:$(60.9)million).Austal has maintained a strong cash balance of$173.5 million at 30 June 2024,despite a significant cap

113、ital investment program and the loss-making T-ATS contract(30 June 2023:$179.2 million).Net cash was$3.9 million at 30 June 2024(30 June 2023:$49.7 million).Austal received a number of new contract awards during FY2024 in line with previously announced multi-hull programs.If all options on these pro

114、grams are exercised the order book equates to$12.7 billion.This year we have reported underlying results alongside our statutory results to adjust for two large one-off items.The resolution of the DoJ investigation,that has been ongoing since 2019,and the detail of which was disclosed in our recent

115、ASX announcement,allows us to focus on the exceptional order book and delivery of ships and service work.The impact of the provision for the DoJ resolution related costs was offset by the gain we made on a land sale at our shipyard in Mobile,resulting in a$2.4m difference between our underlying perf

116、ormance and our statutory result.The resolution with DoJ allows the Company to finalise its capital investment program and we will expect to have that in place and announced to the market in advance of our November AGM.This capital investment program is being made to support the substantial order bo

117、ok of$12.7 billion,which was largely won in the past two years.The transition from the mature LCS 20242023$000$00020242023$000$000Revenue1,468,907 1,585,034 Underlying EBITDA 1126,128 54,973 Underlying EBIT 258,852 (4,842)NPAT 314,876 (13,774)Underlying EBITDA margin8.6%3.5%Underlying EBIT margin4.0

118、%(0.3%)Net assets1,004,665 948,818 Net cash position3,902 49,702 Net cash flow(5,691)(60,912)Earnings/(Loss)per share($per share)0.041 (0.038)Dividends per share($per share)-0.070 Payout ratio-(184.2%)Reconciliation of statutory results to underlying results for FY2024 Reconciliation of statutory re

119、sults to underlying results for FY2024 4 4EBIT 2EBITDA 1Statutory results56,465 123,741 Non-underlying items:Gain on disposal of land and buildings(54,373)(54,373)DoJ/SEC penalty and related costs56,760 56,760 Underlying results58,852 126,128 1.Earnings before interest,tax,depreciation and amortisat

120、ion(EBITDA).1.EBITDA is comprised of EBIT with depreciation and amortisation($67.3 million)1.added back.2.Earnings before interest and tax(EBIT).2.EBIT is comprised of NPAT with finance income($3.9 million)and 2.finance costs($19.0 million)added back.3.Net profit/(loss)after tax(NPAT).4.Statutory EB

121、IT&EBITDA were equal to the underlying results in FY2023.EBIT and EBITDA are non-IFRS measures.EBIT is used to understand segment performance.EBITDA is used by management to understand cash flows within the Group.Theinformation is unaudited but is extracted from the audited accounts.Austal Limited|C

122、hief Executive Officers report 5 and EPF programs has caused our US revenue to reduce in FY2024 while we undertake the design work for the new programs.As we transition from design to procure and build,revenue will grow again.This success in winning work in the US is set to be repeated in Australia

123、with the Strategic Shipbuilding Agreement(SSA).In November 2023 we announced that we had entered into a Heads of Agreement(HoA)with the Commonwealth of Australia to progress to an SSA.Final signing of the SSA is expected in November this year,and would see Austal selected as the Commonwealths Strate

124、gic Shipbuilder at Henderson,Western Australia,where all Tier Two vessels are proposed to be built.As part of a pilot program under the SSA HoA,it is envisaged that Austal will construct and deliver the Birdon-designed Landing Craft(Medium)capability to the Australian Army under the Commonwealths LA

125、ND 8710 project.In addition,the Commonwealth also ordered 2 additional Evolved Cape-class Patrol Boats at an acquisition cost of$157 million,an important order for Defence to optimise its surface fleet and for Austal to ensure workforce stability.The SSA HoA was an important first step in developing

126、 a head contract framework under which future contracts can be formed for further work in Western Australia;the Evolved Cape-class extension provides important job security for Austals ship builders as the last vessel of the current program moves through to completion and delivery of the recently aw

127、arded 2 vessels;and the Landing Craft project will introduce a new-build program for Austal at Henderson.The Landing Craft(Medium)will be followed by Landing Craft(Heavy),and provided this is successful,it is anticipated that General Purpose Frigates(up to 8 to be built onshore with 3 built in the c

128、ountry of design)will follow.Optionally crewed Surface Vessels are also planned,giving our Australian business an unprecedented potential order book and an opportunity for continuous naval shipbuilding that has never existed before in Australia.Despite Austals strong cash position and forward outloo

129、k the Board decided not to declare a dividend for FY2024 due to the upcoming investment program in the US.Austal delivered 7 ships in FY2024 and maintained a strong balance sheet,while allocating considerable enhancing capital as we strengthened our strategic position in the US defence shipbuilding

130、sector.The investment in steel capability;in San Diego;and future investment in consolidation sheds,launch and recovery facilities in Mobile,allow the business to keep delivering and growing.Clearly the investment,in partnership with our major customer,in adding a steel production line to our alumin

131、ium capability has been money well spent.We will continue to invest in the business as we drive long term profitable growth.In Australia,we delivered 5 defence vessels 4 Guardian-class Patrol Boats to the Commonwealth of Australia and 1 Evolved Cape-class Patrol Boat to the Royal Australian Navy.If

132、we look back over the past six years,we have delivered 30 ships from the Australian business which is very impressive considering the challenges of COVID-19 and the lack of deliveries from other companies in Australia constructing defence vessels.Austal USA continued its success on long term program

133、s,delivering the US Navys LCS 36 and launching LCS 38.the last one!Through AUKUS we read daily about the great bond between Australia and the United States as we begin to understand what opportunities this pact may bring.Autonomy is a pillar of AUKUS and Austal has demonstrated considerable experien

134、ce and success in this area with the progress we have achieved on EPF 13(the largest surface ship in the US Navy fleet with autonomous capability),Overload Unmanned Service Vessel(OUSV)3,Saildrone,and with the Sentinel project in Australia,we are well placed for this to become another future revenue

135、 stream both in the US and Australia.The continued award of submarine module build work in Mobile is very exciting.The program commenced with Virginia-class modules,the same submarine class that Australia will be buying from the US,and has progressed to the larger Colombia-class modules.This will li

136、kely be a very important long term revenue and earnings stream for the US shipbuilding business.It was a tough year for commercial shipbuilding in both the Philippines and Vietnam.We made a strategic decision to keep the yards open and although this cost us financially in the short term,as can be se

137、en in the Australasia segment reporting,we chose to manage the business for the long-term.Im pleased to say that it appears to have been a worthwhile decision as we have taken 3 commercial orders and have an increase in tender activity for this market.People&Safety People&Safety Ensuring our people

138、go home safely at the end of each day is our number one focus.Austal continues to demonstrate effective and robust health and safety management throughout our global shipyard and service centres and,6 Austal Limited|Chief Executive Officers report continues to be recognised in meeting industry safet

139、y benchmarks.The following tables illustrate Health and Safety incidence performance for the Group against the pcp.Austal recorded a slight increase in Medical Treatment Injury Frequency Rate this reporting period,whilst Lost Time Injury Frequency Rate unfortunately increased slightly too.We are rev

140、iewing the contributing factors to those increases and will respond accordingly.Austal USAs safety-minded workforce earned three industry safety awards this year,further cementing the companys superior safety reputation.Austal USA has been recognised by America Equity Underwriters(AEU)with the 2023

141、AEU Safety Award and by the Shipbuilders Council of America(SCA)with SCAs 2023 Excellence in Safety and Improvement in Safety awards.These three awards bring Austal USAs total safety award count to 27 in 15 years.Further details on Health,Safety and Environmental initiatives at Austal can be found i

142、n Austals Environmental,Social and Governance(ESG)Report FY2024.USA USA Strategy Strategy Austal USA remains the core driver of Austals financial performance,constituting more than three-quarters of the Companys revenue in FY2024.The conclusion of the DoJ investigation allows us to finalise funding

143、for the desired investment in our steel ship consolidation facility and associated launch and recovery syncro-lift.Significant focus has been placed on the T-ATS program and the comprehensive analysis required to support the basis for the Request for Equitable Adjustment(REA).This program is challen

144、ging and is consuming more cash than planned at a time we would like to be investing,and it will remain a key focus for us in FY2025.Our growth strategy over the last three years has been clear and successful,as demonstrated by the order book.Our main focus now is on safely and efficiently deliverin

145、g on the programs we have won,but there is still opportunity to grow in four important areas:Submarine module manufacture has commenced,and we will look to grow this program with our partner Electric Boat.As this work increases,it will demonstrate to the market the potential size and longevity of th

146、e business and the strategic importance in the context of AUKUS.Submarines may be the focus of AUKUS in Pillar 1,but Pillar 2 brings exciting opportunities for Austal technology in areas such as additive manufacture and 3D printing.In October 2022,we opened Navys Additive Manufacturing Centre of Exc

147、ellence(AM CoE)in Danville,Va,where Austal leads a consortium of experts providing program management and oversight of all development and production efforts.The AM CoE will promote growth and resiliency of the US Navys submarine industrial base through establishment and expansion of dedicated addit

148、ive manufacturing and non-destructive testing(NDT)capabilities,and other supporting technologies.Recognising the compelling need to increase manufacturing capacity within the defence industrial base,the US Navy established the AM CoE to design a“build-to-print”capability aimed at long lead time part

149、s in order to achieve schedule adherence,build production reserves,and ultimately deliver Virginia and Columbia-class submarines to the USA and AUKUS.Autonomy will become an increasingly attractive option for navies,whether through efficiency and reduced or re-tasked crewing,or simply taking humans

150、out of harms way in a combat situation.Austal remains well placed to be able to integrate technology into naval platforms,as demonstrated on the EPF and Overlord programs,or even build bespoke autonomous vessels such as Saildrone.14.1510.7010.3910.076.817.057.527.047.58FY16FY17FY18FY19FY20FY21FY22FY

151、23FY24MedicalTreatmentInjuryFrequencyRate(Injuriespermillionhoursworked)1.753.113.622.071.681.701.782.122.21FY16FY17FY18FY19FY20FY21FY22FY23FY24LostTimeInjuryFrequencyRate(Injuriespermillionhoursworked)Austal Limited|Chief Executive Officers report 7 In San Diego the new floating dock,“Independence”

152、,has arrived,and as previously discussed,forms a key part of our Support growth model.It has taken longer to commission than anticipated due to increased environmental checks and approvals,but once in service it will help us achieve our growth targets on Sustainment.Shipbuilding Shipbuilding Austal

153、continued to grow its order book.In September 2023 it was awarded a US$91.5 million mixed-price incentive and firm-fixed-price type modification to definitise a previously awarded contract for the detail design and construction of three Landing Craft Utility(LCU)1700-class craft.The contract also in

154、cluded options for nine additional craft and associated support efforts.Two options were triggered by the US Navy just recently,adding another US$55 million to Austals order book.As discussed above,we received a strategically important order for the manufacture and outfitting of three electronic dec

155、k modules for the Virginia-class submarine program.The order was issued by prime contractor General Dynamics Electric Boat.Construction has begun and the modules are scheduled to be delivered to Electric Boat by the middle of 2025.The construction of these modules is the result of a strategic partne

156、rship formed in 2022 between Austal USA and Electric Boat,and supported by the US Navy,to take a strategic sourcing approach to expanding the production capacity of the submarine industrial base.As part of the partnership,Austal USA is constructing and outfitting Command and Control Systems Modules(

157、CCSM)and Electronic Deck Modules(EDM)for the Virginia and Columbia-class programs.The EPF program continues with aluminium being cut for the US Navys final Expeditionary Fast Transport,EPF 16.This is the third EPF Flight II ship(expanded medical capabilities)built by Austal USA in Mobile,and the 16t

158、h EPF contracted to Austal USA by the US Navy.We also delivered the 14th EPF to the US Navy during January 2024.In December 2023 we received an US$867.6 million undefinitised contract award(UCA)for final design and construction of three Expeditionary Medical Ships(EMS)from the US Navy.The EMS will b

159、e manufactured in Austal USAs aluminium manufacturing line following completion of the last Expeditionary Fast Transport(EPF 16).Like the EPF program,our LCS program doesnt miss a beat and we delivered the future USS Kingsville(LCS 36)and launched the final LCS(LCS 38)in FY2024.Early-stage productio

160、n of the T-ATS construction program has been disappointing.As previously stated,the program has had fundamental changes in specification from the original contract tender leading to an extension of the time to complete the program compounding the impact of cost inflation.In addition,the efficiency a

161、ssumptions for the newly commissioned steel manufacturing line,such as labour hours and consequentially,recovery of overheads,did not meet forecasts and have been subsequently revised.Although these efficiency issues are expected to increasingly improve as Austal progresses construction of the T-ATS

162、 vessels,they are slowing progress on the first vessels in production.As noted previously,Austal USA will be submitting a REA under the terms of the contract to seek recoveries for some of the additional costs incurred in the T-ATS project,however the timing and quantum of the ultimate resolution is

163、 still under negotiation.The challenging Auxiliary Floating Dock Medium(AFDM)for the US Navy is in production with the first major unit complete.The Offshore Patrol Cutter(OPC)program for the US Coastguard is in design and progressing well.This program is for up to 11 ships at a potential value of U

164、S$3.3 billion,and first metal is expected to be cut before the end of the financial year.The award of the T-AGOS contract to Austal was announced on 19 May 2023,when the company was awarded a US$113.9 million fixed-price incentive(firm target)and firm-fixed-price contract for detail design of the Au

165、xiliary General Ocean Surveillance Ship T-AGOS 25-class for the US Navy,including options for detail design and construction of up to seven T-AGOS 25-class vessels.The US Navy has then subsequently awarded Austal USA a US$516 million($A779 million)contract modification for the construction of the le

166、ad ship of the T-AGOS(ocean surveillance)program,T-AGOS 25.The contract modification exercises an option for ordering long lead time materials to continue/complete the design and construction of the lead ship.The contract modification provides for further payment as part of the overall contract.If a

167、ll options are exercised,the cumulative value of the contract is US$3.2 billion.T-AGOS ships,operated by 8 Austal Limited|Chief Executive Officers report United States Military Sealift Command(USMSC),support the antisubmarine warfare(ASW)mission of the commanders of the Atlantic and Pacific Fleets b

168、y providing a platform capable of passive and active anti-submarine acoustic surveillance.Support Support Austal USAs service and support business exceeded our expectations.At Austal San Diego the summer was highlighted by the July 2023 USS Canberra(LCS 30)commissioning watch party,provided for the

169、family and friends of the crew supporting the first US Navy ship commissioning outside the United States.Shortly thereafter we welcomed the arrival of our new Turkish-built floating dry dock,“Independence”.Once certified,this dry dock will further our repair and maintenance capability in the San Die

170、go area.Successfully executing our first Chief of Naval Operations availability on the USS Cincinnati(LCS 20)demonstrated the experience and depth of our workforce.Austal USA Gulf Coast continued to play an important role in our Services and Support business,primarily during the LCS new construction

171、 transition into the US Navy fleet.Outside of the continental United States,we continued to execute planned,emergent and continuous maintenance availabilities throughout the US Navy Seventh Fleet region on LCS class ships,and as the original equipment manufacturer on EPF class ships worldwide,demons

172、trating our responsiveness and capability abroad.Overall,the Austal USA service and support business delivered,with growth in EBIT.It recorded$67.8 million in EBIT this financial year(FY2023:$14.7 million),demonstrating further profitability in this segment.Our focus on delivering operational readin

173、ess to the US Navy on-time is becoming a differentiator for Austal USA,which will further enable a stable income stream that will support sustained shareholder returns.Outlook Outlook Austal has faced some challenges on its first steel programs that were bid in a non-standard process,but none-the-le

174、ss the state-of-the-art steel panel line is up and running and ready for the significant volume of work that has been won in the past few years.The resolution of the DoJ matter will allow us to finalise our plans for capital investment funding and set the shipyard up for all future classes of vessel

175、.Support opportunities continue to grow as we deliver more vessels,and when the San Diego facility and dock are fully commissioned,it will provide a platform for further growth.Austal technology may be a small part of our business today,but it has considerable strategic importance and Im confident t

176、his will be a new and healthy revenue stream that is well aligned with our support and submarine module business.Looking ahead,Austal enters FY2025 with a$12.7 billion order book,much of it unexercised options for the US Navy and US Coast Guard extending through to the early 2030s.Austal USAs focus

177、has been on broadening the potential order book with investment in facilities and capability,while delivering existing contracts,winning future build programs and ensuring we are part of the design process for longer term programs and developing a true long-term pipeline of work.The record order boo

178、k clearly demonstrates this strategy is working.Australasia Australasia Strategy Strategy Austals focus on sovereign capability has been rewarded with the appointment as Strategic Shipbuilder in Western Australia as announced by the Federal Government.This means that,providing we continue to deliver

179、,Austal will be the builder of all Federal Government program ships in WA into the future.The programs that have been announced for construction in WA are Landing Craft Medium and Heavy for Army,General Purpose Frigate and Optionally crewed Surface Vessel which are not yet included in the order book

180、 which will only occur when the contracts are finalised.This brings continuous naval shipbuilding to Austal and a longevity of pipeline we have never before experienced.We are seeing a resurgence in the commercial market with 3 orders won and a pipeline of opportunities.Making the strategic decision

181、 to keep the Philippines and Vietnam yards open negatively impacted the results this year,but was the right decision for the long term.Shipbuilding Shipbuilding Both the Philippines and Vietnam operations had a very quiet year.Both yards have significantly scaled down,and performed infill work to ma

182、intain capability while we sought to finalise new contracts.The first of these came when Austal Vietnam was awarded a contract to design and construct a 71-metre roll-on-roll-off(RORO)passenger cargo vessel for The Degage Group of French Polynesia.The new steel monohull ferry Austal Limited|Chief Ex

183、ecutive Officers report 9 design includes an aluminium superstructure accommodating up to 140 seated passengers and 17 crew,and features a main cargo deck area of 494 sqm capable of transporting a combination of 10 and 20 containers,palletised cargo and vehicles.The second award was for the Philippi

184、nes to construct a 32-metre catamaran for Rottnest Fast Ferries,based in Hillarys,Western Australia.Collaborating with vessel designer Incat Crowther,Austal commenced construction of the aluminium catamaran in the first quarter of CY2024.The third contract,announced in July 2024,was for a sail-power

185、ed cargo trimaran for Vela Transport of Bayonne,France.It is a unique concept and we look forward to working with Vela Transport to progress its design and construction.Our Australian operations continue to support the Royal Australian Navy and Border Force on the new build and sustainment of vessel

186、s.We had a successful year as we continue to deliver Evolved Cape-class and Guardian-class Patrol Boats.We delivered 4 Guardian-class Patrol Boats(GCBP 16,17,18 and 19)and a total of 19 Guardian-class Patrol Boats have gone to 12 Pacific Island Nations under the Australian Governments Pacific Mariti

187、me Security Program since 2018.We also received an order for an additional 2 Guardian-class Patrol Boats taking the total to 24.The Evolved Cape-class Patrol Boat program is also on track with the delivery of the 6th vessel,and similar to the Guardian-class Patrol Boat program,we received an order f

188、or an additional 2 vessels bringing the total number of Evolved Cape-class Patrol Boats being delivered to the Navy,under the SEA1445-1 Project,to 10.The release of the Australian Navys Surface Combatant Fleet review was well received.Following the output of this,Austal announced that it had signed

189、a HoA with the Commonwealth of Australia to establish a Strategic Shipbuilding Agreement(SSA)between Austal and the Commonwealth.If ultimately signed,a Strategic Shipbuilding Agreement would see Austal selected as the Commonwealths Strategic Shipbuilder at Henderson,Western Australia.The SSA HoA set

190、s out the key principles and provides a framework for further discussions and other due diligence activities to establish the SSA.The creation of the HoA also reflects the intent of both Austal and the CoA to ultimately establish the SSA on mutually acceptable terms.It is anticipated this will be si

191、gned in November 2024.As part of a pilot program under the SSA HoA,Austal will construct and deliver the Birdon-designed Landing Craft(Medium)(18 expected)to the Australian Army under the Commonwealths LAND8710 project.Subject to the programs performance and conclusion of the SSA,Austal understands

192、the Government also intends to build the Landing Craft(Heavy)(8 expected)capability through Austal under the framework of the SSA.The Commonwealth has approached 5 shipbuilders with existing designs for the General Purpose Frigate with an intention that 3 will be built offshore with 8 built by Austa

193、l in Henderson(subject to approvals).Following the General Purpose Frigate is an Optionally crewed Surface Vessel(6 anticipated).This would bring in the autonomy skillset Austal has been developing.The Australian Navys Surface Combatant Fleet review also mentioned the potential for additional Evolve

194、d Cape-class vessels,which we are pursuing.This pipeline of continuous naval shipbuilding will provide decades of work and more certainty than we have ever experienced.Support Support The support yards in Cairns and Brisbane are fully operational with Brisbane mainly focused on commercial work and C

195、airns on Navy and Border Force work.Many of the newly built Evolved Cape-class Patrol Boats will be home ported in Cairns,and as the fleet grows,we anticipate our revenue will grow too.As the Defence Strategic Review increases the size of the Royal Australian Navy fleet over coming years,there will

196、be more vessel sustainment activities being undertaken in Perth,Darwin and Cairns,where we are already established.Austals Asset Management solution LUSI(Lifecycle Upkeep Sustainment Intelligence)has had a successful year and continues to be used operationally on all of the Royal Australian Navys Ca

197、pe-class Patrol Boats.A companion product for the air domain,ALFI(Aviation Lifecyle&Fleet Management Intelligence)was deployed as a Proof of Concept for most of the last year.This has been successful,and ALFI has now transitioned into a long-term production deployment.10 Austal Limited|Chief Executi

198、ve Officers report Outlook Outlook I do not expect that we will have to take the financial pain in our commercial yards next year as we did this year,albeit for strategic reasons.The market is recovering with more hybrid technologies being discussed rather than a zero-emission solution that does not

199、 yet exist.The Australian Navys Surface Combatant Fleet review and the appointment of Austal as the Strategic Shipbuilder will secure long-term work,providing continuous naval shipbuilding.Never before has the Australian business been in this enviable position which should provide decades of stabili

200、ty in results and growth in the business.Systems&Innovation Systems&Innovation Technology is a critical pillar within Austals operational strategy and there have been many activities and developments of note this year.Austals trusted Control&Monitoring solution,MARINELINK,has been developed and depl

201、oyed for over 20 years on Austal vessels.Cyber security is becoming a more stringent requirement for on-board ship systems,with classification societies beginning to mandate compliance(e.g.For DNV classification,the DNV Cyber Secure class notation became mandatory for all new build contracts signed

202、after 1st July 2024).MARINELINK-Prime has been developed with a specific goal of compliance with these new cyber security requirements.MARINELINK-Prime is operating on all of the delivered Evolved Cape-class Patrol Boats for the Royal Australian Navy,as well as for Express 5 in the commercial sector

203、.New deployments of MARINELINK are underway for both newly contracted vessels to Austal,and for upgrades to previously delivered vessels.The original version of MARINELINK also continues to be successfully delivered and deployed.This includes on all of the Guardian-class Patrol Boats delivered to da

204、te,and as upgrades for previously delivered vessels.Autonomous Operations and Reduced Crewing for naval vessels have been brought to prominence in 2024 through the Government-initiated Enhanced Lethality Surface Combatant Fleet review.This review has highlighted the future Australian requirements in

205、 this area.There is a need for technology and automation to allow a future larger Australian naval surface fleet to operate with a minimal increase to crew complement,and there is now a stated intention to procure large Optionally crewed Surface Vessels for the Royal Australian Navy.Austals leadersh

206、ip of the Patrol Boat Autonomy Trial(PBAT),sponsored by the Commonwealths Warfare Innovation Navy(WIN)Branch,has placed the company in a strong position to support these developments.The PBAT program converted a decommissioned Armidale-class Patrol Boat(the PBAT Sentinel)to autonomous operations to

207、better understand the use and capabilities for future autonomous platforms.Modifications were made to the on-board MARINELINK system on the PBAT Sentinel to automate more of the ships functionality.Autonomous navigation capability was developed and integrated onto the PBAT Sentinel by Greenroom Robo

208、tics.This resulted in a successful 5-day endurance trial where the vessel was deployed in continuous autonomous operation on a long range journey along the West Australian coast.Subsequently,Austal and Greenroom Robotics have entered into a strategic partnership in order to further enhance Australia

209、s sovereign capability in the field of large autonomous vessels.Further opportunities to trial and mature these technologies are being pursued,and Austal is determining how to incorporate some of the advancements of the PBAT Sentinel into its current and future vessels.Austal is continuing to modern

210、ise its Australian business to support the future needs of vessel construction in Australia.In FY2023 Austal completed the deployment of a new Enterprise Resource Planning(ERP)solution from IFS.This deployment has been successful and used exclusively through FY2024.Austals Digital Transformation pro

211、gram is now focused on other parts of Austals business,including increased digitisation through the design,production and sustainment of Austals vessels and the future adoption of Advanced Manufacturing systems and techniques.Management Management I was pleased to appoint Michelle Kruger as Presiden

212、t of Austal USA.Michelle had been Interim President.Michelle joined Austal USA in 2022 as Vice President of Global Services and Support,responsible for global post-delivery vessel repair and warranty services.She quickly and successfully implemented a number of business strategies,developed key gove

213、rnment and commercial business partnerships and oversaw the delivery of projects that have added value to the business,including the opening of Austal USAs new San Diego waterfront facility and the delivery of a 9,000 tonne capacity dry dock.Austal Limited|Chief Executive Officers report 11 I look f

214、orward to working closely with her throughout FY2025 and beyond.Ian McMillan,our Chief Operating Officer,has been instrumental in enhancing our competencies,resources,methodologies,and overall preparedness to take on the role of being a Strategic Shipbuilder a position that will cement our presence

215、in Australia for the coming three decades.Our range of expertise has expanded,and our connections with Government,Defence,and Industry stakeholders have strengthened considerably in recent times.This growth will ensure that we,along with our industry partners,are well-equipped to meet the Australian

216、 Defence Force s expectations.Due to personal reasons and with confidence we have the right team in place to continue our progress and growth within the defence sector,Ian chose to resign from his role as Chief Operating Officer.We profoundly value the contributions Ian made to our company over the

217、past 3 years and we extend our best wishes to him for his future endeavours.Conclusion Conclusion The highlight of this year has undoubtedly been the announcement that Austal will be the Commonwealths Strategic Shipbuilder at Henderson,Western Australia.Ultimately that means an order book in Austral

218、ia that will follow what has been achieved in the US over the last three years.Resolution of the DoJ matter is pleasing and allows us to finalise our capex investment plans and funding to ensure our Mobile facility is ready for years of future work.There are still some challenges to resolve,such as

219、T-ATS,but Im confident we are on a path to do so.Support from the US navy and defence organisation is clear,and there are still some very exciting opportunities we are pursuing.The submarine module work is one of these opportunities,and is just as satisfying as our shipbuilding wins.This has real po

220、tential to be a significant revenue stream for Austal and I have no doubt there will be more to come on this over the coming year.Our inaugural chairman,John Rothwell,is retiring from his position of Chairman of the Company to serve on the Austal Board as a Non-Executive Director.Former US Secretary

221、 of Navy Richard Spencer will replace Mr Rothwell as Chairman,and will also join the Board of Austal USA,providing important linkages between the two Boards.Mr Rothwells retirement as Chairman marks a significant milestone in the history of Austal,having served in the position for 37 years since he

222、founded the company in 1987.During that time Austal has grown from a small,privately-owned,West Australian,commercial shipbuilder to an ASX-listed,international defence prime contractor with a multibillion-dollar order book,over 4,200 employees and substantial ship building operations in Australia,t

223、he United States and South East Asia.That is a truly amazing story and it is important to acknowledge Mr Rothwells role in that achievement.I look forward to working with both of them as they transition.Both Austal USA and Australasia have clear direction and an agreed set of objectives to build cus

224、tomer relationships and target addressable markets using technologically advanced products.We now have the ability to deliver shipbuilding,support and systems,for commercial and defence customers in both steel and aluminium.We have the most significant order book ever,with potential to grow more.Wit

225、h the resolution of a few outstanding issues,Austal is in a very exciting place.Paddy Gregg Managing Director and Chief Executive Officer 12 Austal Limited|Review of operations Review of operations Review of operations USA USA Financial performance Financial performance USA total segment revenue was

226、$1,174.3 million in FY2024 compared to$1,225.0 million in FY2023.EBIT increased by$87.7 million(1,694.7%)in FY2024 to$92.9 million,primarily driven by the T-ATS loss recognised in FY2023 and growth in the Support business year on year.This was reflected in an EBIT margin of 7.9%in FY2024,compared to

227、 0.4%in FY2023.Revenue decreased principally due to the diversification of new program revenue which was offset by the decline in revenue from the maturing Littoral Combat Ship(LCS)and Expeditionary Fast Transport(EPF)programs.Shipbuilding Shipbuilding In September 2023,Austal USA was awarded a US$9

228、1.5 million(A$143.4 million)contract for the construction of three Landing Craft Utility(LCU)1700-class craft,with options to construct an additional nine vessels and associated support arrangements.Construction of the first LCU commenced in April 2024 and in August 2024,Austal USA received a subseq

229、uent contract to construct a further two LCU,bringing the total under contract at the time of reporting,to five.Also in September 2023,Austal USA received additional orders from General Dynamics Electric Boat to manufacture and outfit another three electronic deck modules for Virginia-class submarin

230、es and in October 2023,an order was received for the construction of a command and control systems module for a Columbia-class submarine.Including previous orders,Austal USA is currently contracted to deliver 11 submarine modules at the Mobile,Alabama shipyard,with five under construction.Austal USA

231、 also continues to manufacture the first four aircraft elevators(of six in total)for the new Gerald R.Ford-class Aircraft Carriers(CVN 80 and CVN 81)for the United States Navy.In December 2024,the Navy awarded Austal USA an US$867.6 million(A$1.28 billion)contract for the construction of three Exped

232、itionary Medical Ships(EMS),based on Austals proven EPF platform.Construction of these vessels will commence following the completion of the last EPF 16,which commenced construction during the year.EPF 14,USNS Cody,was delivered to the US Navy in January 2024 and construction on EPF 15,Point Loma co

233、ntinues.Austal USA delivered the 18th Independence-variant LCS,USS Kingsville(LCS 36),to the US Navy in March 2024 and LCS 38,the future USS Pierre and last LCS to be manufactured by Austal USA,was christened in May 2024.In May 2024,Austal was awarded a US$516 million(A$779 million)contract modifica

234、tion for the construction of the lead ship of the Ocean Surveillance(T-AGOS 25)ship program,exercising an option to a previously awarded contract for long lead materials.The Navajo-class Towing,Salvage,and Rescue Ships(T-ATS)program continued to expand in FY2024,with the 3rd of five vessels contract

235、ed commencing construction in June 2024.The challenging Auxiliary Floating Dock Medium(AFDM)for the US Navy is in production with the first major unit complete.Finally,Austal USA celebrated the ground-breaking for a brand new Final Assembly facility in Mobile,Alabama,that will include ship lift capa

236、bility and enable larger steel ships,including the United States Coast Guard Offshore Patrol Cutters(OPC),to be assembled and serviced.The facility,subject to completion of financing arrangements,is due to open in 2026.The ship lift system,capable of lifting over 18,000 tonne,will be the largest on

237、the Gulf Coast and the widest in the United States;with the capability to support a wide range of naval shipbuilding and ship repair programs,including Constellation-class Frigates.Support Support Austals USA support business continues to grow.The Austal USA team are now providing support to 14 Spea

238、rhead-class Expeditionary Fast Transport ships and 18 Independence-variant LCS,through facilities in Mobile,Alabama;San Diego,California and Singapore.20242023$000$00020242023$000$000RevenueRevenueShipbuilding853,904$998,116$Support320,387 226,920 Total1,174,291$1,225,036$EBITEBITShipbuilding25,101$

239、(9,498)$Support67,848 14,677 Total92,949$5,179$EBIT MarginEBIT MarginShipbuilding2.9%N/ASupport21.2%6.5%Total7.9%0.4%Austal Limited|Review of operations 13 Safety Safety Austal USA received a further three national safety awards from the Shipbuilders Council in America in FY2024,continuing a track r

240、ecord of safety,having been recognised for 27 awards over the past 15 years.Material business risks-USA Material business risks-USA Steel shipbuilding in the USASteel shipbuilding in the USA In April 2022,Austal announced completion of its new steel shipbuilding facilities,on budget and slightly ahe

241、ad of schedule.Since opening the facility,Austal has commenced work on its initial steel vessel program,T-ATS.The Company has been awarded contracts for construction of 5 of these vessels.As advised through the Companys ASX announcements in June 2023 and January 2024,this program has experienced sig

242、nificant performance issues which resulted in the program being loss making,and being declared onerous during the year ended 30 June 2023.The program has had fundamental changes in specification from the original contract tender leading to an extension of the time to complete the program compounding

243、 the impact of cost inflation.Therefore,although these efficiency issues are expected to increasingly improve as Austal progresses construction of the T-ATS vessels,the projects forecast returns have been materially impacted,and performance issues have continued to be experienced during the current

244、year.As also communicated through relevant ASX announcements,Austal USA submitted a Rough Order of Magnitude to the US Navy in December 2023 associated with the Request for Equitable Adjustment(REA)which the Company is entitled to make under the terms of the contract.The Company is working with exte

245、rnal specialists to support the development and submission of the REA to seek recoveries for some of the additional costs incurred in the T-ATS project,but the precise timing and success of those claims remains uncertain.As discussions between the Company and the US Navy progress,the ultimate amount

246、 that may be recovered under the REA may increase or decrease compared to the amounts assumed as being probable of recovery at 30 June 2024.Refer to Note 19 Provisions for further detail and sensitivity analysis performed on REA recovery.The AFDM for the US Navy is in production with a focus on impr

247、oving efficiencies to mitigate costs to complete this program.US Coast Guard Offshore Patrol Cutter(OPC)programUS Coast Guard Offshore Patrol Cutter(OPC)program This contract award is a major boost for the Company,however,it also comes with risks such as:Pressure on facility construction it is inten

248、ded to construct the OPCs in new facilities,the details of which are currently being designed.As with most significant infrastructure expansion projects,there is a risk that these construction works are delayed or encounter difficulties that could impact the schedule for delivery of the OPC vessels;

249、New customer the OPCs will be constructed for the US Coast Guard.Austal has a longstanding and constructive relationship with the US Navy and the Company has every confidence that it will continue to develop and deepen its relationship with the US Coast Guard to a similar degree,however,the slight d

250、ifferences in policy and approach may introduce unexpected considerations in the initial stages of this relationship.Australasia Australasia Reporting of Austals Australia,Philippines,Vietnam and Muscat operations are combined into the Australasia Shipbuilding and Australasia Support reporting segme

251、nts for tendering,scheduling,resource planning and management accountability.Financial performanceFinancial performance The Australasia segment reported revenue of$302.9 million in FY2024,compared to$366.4 million for FY2023.EBIT decreased from$15.8 million in FY2023 to an EBIT loss of$(12.6)million

252、 in FY2024.Revenue and EBIT in FY2024 reduced due to new awards occurring later than originally anticipated and currently contracted fleets nearing completion.This was offset by the continued growth in the Support business in FY2024.Shipbuilding Shipbuilding Continuing an industry leading rate of pr

253、oduction and efficiency,Austal Australia delivered four Guardian-class Patrol Boats(GCPB)to the Commonwealth of Australia and one Evolved 20242023$000$00020242023$000$000RevenueRevenueShipbuilding154,837$222,319$Support148,062 144,094 Total302,899$366,413$EBITEBITShipbuilding(22,474)$6,720$Support9,

254、909 9,057 Total(12,565)$15,777$EBIT MarginEBIT MarginShipbuildingN/A3.0%Support6.7%6.3%TotalN/A4.3%14 Austal Limited|Review of operations Cape-class Patrol Boat(ECCPB)to the Royal Australian Navy during FY2024.With the 20th Guardian-class delivered in July 2024,four vessels remain to be delivered un

255、der the Pacific Patrol Boat Replacement(SEA3036-1)contract;this was extended by another two vessels(to 24 in total),by the Commonwealth of Australia in June 2024.The 6th Evolved Cape-class,ADV Cape Pillar,was delivered to the Royal Australian Navy in October 2023,and the 7th Evolved Cape-class,ADV C

256、ape Solander was delivered in August 2024.The 8th Evolved Cape-class,ADV Cape Schanck,was launched in June 2024,leaving two vessels under construction at the Henderson,Western Australia shipyard.In November 2023,Austal signed a Heads of Agreement(HoA)with the Commonwealth of Australia to establish a

257、 Strategic Shipbuilding Agreement(SSA)between Austal and the Commonwealth that,when signed,will see Austal selected as the Commonwealths strategic shipbuilder in Henderson,Western Australia.Under the HoA,Austal and the Commonwealth have committed to working towards concluding the formal SSA by the l

258、ast quarter of CY2024.As part of a pilot project to be undertaken under the SSA,the Commonwealth has nominated Austal to construct and deliver 18 Landing Craft(Medium)vessels(LCM)for the Australian Army,under the LAND 8710-1 project.Subject to the programs performance and conclusion of the SSA,Austa

259、l understands the Government also intends for Austal to build eight,larger Landing Craft(Heavy)vessels(LCH)under the framework of the SSA.Additional,future naval vessel programs that Austal may bid for under the SSA,and announced in the Commonwealths Defence Strategic Review and subsequent Independe

260、nt Analysis of Navys Surface Combatant Fleet,include eleven General Purpose Frigates(eight to be constructed in Australia)and six Optionally Crewed Surface Vessels.Austal Australia completed the Patrol Boat Autonomy Trial(PBAT)for the Royal Australian Navy over the course of FY2024;collaborating wit

261、h Australian technology company Greenroom Robotics and Trusted Autonomous Systems Defence Cooperative Research Centre(TAS-DCRC).The trial successfully demonstrated the capabilities of new autonomous and remote operations systems,integrated into a decommissioned Armidale-class Patrol Boat.Austal Phil

262、ippines commenced construction of a 32 metre passenger ferry for Rottnest Fast Ferries in FY2024,following a contract award in January 2024.The Incat Crowther designed vessel is due for completion in the second quarter of FY2025.Austal was also awarded the contract(in the range of$40 to$45 million)i

263、n July 2024 of a striking new,100%wind powered,66 metre sailing cargo trimaran for Vela Transport of France;this is scheduled to commence construction in the Balamban,Cebu shipyard in FY2025.Following a contract announcement(in the range of A$30-40 million)in March 2024,Austal Vietnam commenced cons

264、truction of a 71 metre Roll-on-roll-off(RORO)passenger cargo vessel,for repeat customer,The Degage Group of French Polynesia.The steel monohull ferry is a new Austal design that offers accommodation for 140 seated passengers as well as cargo space for 10 and 20 containers,palletised cargo and vehicl

265、es.Austal continues to pursue commercial and defence contracts for the Philippines and Vietnam yards,whilst working collaboratively with a number of commercial operators worldwide,to identify future fuel technologies such as hydrogen.Support Support Australasia Support activity in FY2024 included co

266、ntinuing servicing and support for the Australian Border Force fleet of 8 Cape-class Patrol Boats,the Royal Australian Navys two Cape-class Patrol Boats,Cape Fourcroy and Cape Inscription and seven Evolved Cape-class Patrol Boats fleet.Austal Cairns and Brisbane service centres are winning a steady

267、stream of business from commercial vessel operators in Australia and throughout the South Pacific;whilst Austal Darwin continues to support In-Service Support for the Evolved Cape-class in the Northern Territory.In October 2023,Austal opened a new maintenance facility in Trinidad and Tobago as part

268、of the ongoing support contract for the Trinidad and Tobago Coast Guard,operating two Cape-class Patrol Boats.Austals local team comprises three expat Australians and five Trinidad and Tobago maritime technicians and support personnel.Material business risks-AustralasiaMaterial business risks-Austra

269、lasia Commercial FerriesCommercial Ferries The commercial high speed aluminium ferry business is a significant market for Austal and provides significant workload to the Philippines and Vietnam shipyards.The newbuild ferry industry can be adversely affected by economic,political,social,climate,secur

270、ity and other factors which delay or eliminate future orders for vessels or even cause cancellations of current vessels and the global COVID-19 pandemic remains likely to depress the new vessel market for some years to come.However,we are seeing signs that this risk is reducing,with 3 commercial awa

271、rds since FY2023.Closure or Austal Limited|Review of operations 15 contraction of this market,or substantial contraction of the order book generally,could force a closure of shipyards or severe curtailment of operations.The Company initially identified this as a risk in 2020 with the depression of t

272、he commercial ferry market continuing beyond the initially-anticipated window,having been compounded by the effect that the war in Ukraine has had on supply chains,particularly in Europe.Ongoing uncertainty around how operators should respond to new legislated requirements for more environmentally-f

273、riendly operations is also restricting newbuilding appetite.While Austal continues to design and build some small commercial vessels including the revolutionary sailing cargo trimaran announced to ASX in July 2024-the future pipeline for Austals commercial operations has been materially impacted by

274、the depression in newbuilding activity.Resources in Austal Philippines and Austal Vietnam have been reduced to reflect the reduced pipeline of work in FY2024.However,the Company continues to pursue opportunities beyond its current order book,which has been bolstered by the recent contract wins.Witho

275、ut continuing to secure further material shipbuilding commitments into the future,the Company may need to consider closure or re-orientation of its Asian shipyards.This market also retains a risk of potential customer default based on insolvency or other commercial considerations that are less likel

276、y in contracts with government or state-owned entities.While Austal seeks to mitigate this risk through a combination of contractual and cashflow protection measures,an unexpected repudiation or material breach by a commercial customer could pose a risk to workforce retention and operational plannin

277、g,because the nature of the business means that large projects are not easily replaced or rescheduled entirely.Changes to Australian Government procurement priorities,strategy and timing Changes to Australian Government procurement priorities,strategy and timing Austal was pleased to announce in Nov

278、ember 2023 that it has executed a Memorandum of Understanding with the Commonwealth of Australia Department of Defence to work towards the appointment of Austal as the Commonwealths strategic shipbuilding partner in Western Australia under a Strategic Shipbuilding Agreement(SSA).If concluded,this fr

279、amework could establish Austal as the Governments designated shipbuilder for substantial surface vessels such as Heavy Landing Craft.Austal and the Commonwealth have been in constructive discussion to progress these arrangements since November and the Company will continue to support the Commonwealt

280、h in this exercise;however there is always a risk that the Commonwealths strategic,defence or political priorities change and that substantial programs(such as those contemplated under the SSA)are delayed,revisited and potentially reduced,re-prioritised or cancelled.Each of these potential actions w

281、ould have a material impact on the future of Austals Australasian business.Other material business risks Other material business risks Cyber security Cyber security Austals production of vessels for the US,Australian and other governments means that it handles sensitive information regarding people

282、and vessels.This information may be used in vessel operation.Austal has established information handling policies and standards and cyber security measures that seek to prevent the disclosure and theft of such information and in 2022 retained its ISO27001 accreditation,which further enhances the Com

283、panys cyber security framework.As a defence provider to the Commonwealth of Australia,Austal Australia is certified under the Department of Defences Defence Industry Security Program(DISP)and as a prime contractor to the US Department of Defence,Austal USA complies with the National Institute of Sta

284、ndards and Technology SP800-171 Standard(NIST 800-171).However,third parties retain the ability to access even the most well protected systems.This may create levels of interference or public disclosure,such as demands of large financial payments or interruption of service.16 Austal Limited|Director

285、s Report Directors report Directors report The Board of Directors of Austal Limited submit their report for the year ended 30 June 2024.Directors Directors The names and details of the Companys Directors in office at the date of this report are detailed below:Hon.Richard V.Spencer Non-Executive Chai

286、rman Hon.Richard V.Spencer Non-Executive Chairman The Hon.Richard V.Spencer was appointed Chairman of Austal Limited on 1st July 2024.Richard was the 76th Secretary of the United States Navy,sworn into office in August 2017 and serving until November 2019.After graduating from Rollins College Univer

287、sity,he served in the United States Marine Corps,as an H-46(Phrog)pilot.After leaving active duty,Richard began a successful career in finance,working on Wall Street for 16 years for companies such as Goldman Sachs,Donaldson,Lufkin and Jenrette,and Bear Stearns,before becoming President of Crossroad

288、s Investment Management LLC,and Vice Chairman and Chief Financial Officer of Intercontinental Exchange,Inc.(NYSE-ICE)and later Managing Director of Fall Creek Management LLC.He also served on the Pentagon Defense Business Board advisory panel and the Chief of Naval Operations Executive Panel.Mr.Spen

289、cer is currently the Global Chairman of Bondi Partners,an advisory firm based in Australia offering strategic counsel to corporate and government clients;Managing Director of Pallas Ventures,which focuses on emerging commercial technologies that have applicability in the National Security arena;and

290、is a member of the board of directors of the Global Atlantic Financial Group,Morpheus Space and Focused Energy.He is also a member of the Advisory Board to the US Innovation and Technology Fund.Paddy Gregg Managing Director and Chief Executive Officer Paddy Gregg Managing Director and Chief Executiv

291、e Officer Patrick(Paddy)Gregg was promoted to the position of Austals Managing Director and Chief Executive Officer on 1 January 2021,following 4 years as Austals Chief Operating Officer.Paddy is a highly regarded senior leader with significant project management,manufacturing and business experienc

292、e acquired within the high-technology Nuclear Defence Industry,Rail Industry and Naval Shipbuilding Industry.Immediately prior to joining Austal,Paddy was working for Network Rail in the United Kingdom.During his time there he was responsible for major infrastructure enhancements and renewals on the

293、 Western and Wales Routes.Paddy has extensive experience in the naval sector having worked for BAE Systems Submarines,based in Barrow-in-Furness,England.Paddy was the Head of Project for the second Astute-class hunter killer nuclear submarine build.In this role he worked closely with both the United

294、 Kingdom Ministry of Defence and Navy to ensure the project was successfully delivered.As Chief Operating Officer at Austal,Paddy had responsibility for the shipbuilding and sustainment operations in Australia,Philippines and Vietnam.This responsibility covered both new build of commercial and naval

295、 vessels,and the sustainment stream of the business focussed on support for the Australian Border Force and Royal Australian Navy.As Managing Director and Chief Executive Officer,Paddy oversees a global company comprising 5 shipyards and 8 service centres in 4 countries,with more than 4,200 employee

296、s worldwide.Paddy is a Chartered Engineer and fellow of the Institution of Mechanical Engineers,with a Masters Degree in Mechanical Engineering from the University of Newcastle-upon-Tyne,and a Masters in Business Administration from the Warwick Business School.Austal Limited|Directors Report 17 John

297、 Rothwell AO Non-Executive Director John Rothwell AO Non-Executive Director John has played a major role in the development of the Australian aluminium shipbuilding industry approaching 50 years of experience in boat and shipbuilding.He is the architect responsible for the establishment of Austal an

298、d was the founding Managing Director.John identified markets for high speed ferries throughout Asia which resulted in Austals rapid growth.He saw the potential for US Defense contracts for high speed aluminium naval ships and he led the formation of a new shipyard in Mobile,Alabama in 1999.John was

299、appointed as an Officer of the Order of Australia(AO)in January 2004 for services to the Australian shipbuilding industry,and for significant contributions to vocational education and training.He was named“Australian Entrepreneur of the Year”by Ernst and Young in 2002 and he was awarded the Western

300、Australia Citizen of the Year in the category of Industry and Commerce in 1999.John stepped down as Executive Chairman in 2008 to continue as Non-Executive Chairman after managing the Company for 20 years.John retired from his position as the Non-Executive Chairman on 30 June 2024 and remains on the

301、 Board of Directors as a Non-Executive Director.Sarah Adam-Gedge Independent Non-Executive Director Sarah Adam-Gedge Independent Non-Executive Director Sarah was appointed as a Non-Executive Director of the Company in August 2017,became Chair of the Audit&Risk Committee in December 2022,Deputy Chair

302、 of the Austal Limited Board in September 2019 and is a member of the Nomination&Remuneration Committee.She brings strong consulting,customer experience,digital and technology expertise to Austal through her experience in executive roles in the information technology and consulting sectors.Sarah is

303、also a Non-Executive Director of Codan Limited,Bravura Solutions Limited and Emeco Holdings Limited,as well as holding board roles on several private companies including as Chair of Kinetic IT Pty Ltd and Non-Executive Director of Cricket Australia.Prior to her professional director career,Sarah was

304、 the CEO&Managing Director of Wipro Australia&New Zealand,Publicis Sapient,the digital business transformation hub of the Publicis Groupe,Avanade Australia,Managing Partner and Vice President at IBM,Managing Partner at PwC and Partner at Arthur Andersen.Sarah s work experience is across many industr

305、ies and geographies.Sarah is a Chartered Accountant,and member of the Chartered Accountants Australia/New Zealand.She holds a Bachelor of Business(Accounting)from the Queensland University of Technology and is a Graduate of the Australian Institute of Company Directors.Sarah has extensive Diversity

306、and Inclusion experience,is a mentor for the Minerva Council and for Chartered Accountants Australia&New Zealand,has sponsored the development of Reconciliation Action Plans,and is committed to sustainability having completed the Sustainability and Social Impact Futures course at RMIT University.Chr

307、is Indermaur Independent Non-Executive Director Chris Indermaur Independent Non-Executive Director Chris was appointed as a Non-Executive Director of the Company in October 2018,has been a member of the Audit&Risk Committee and Nomination&Remuneration Committee since October 2018 and August 2019 res

308、pectively,and became Chair of the Nomination&Remuneration Committee in December 2022.Chris has over 40 years of experience in large Australian companies in Engineering and Commercial roles.Amongst these roles he was the Engineering and Contracts Manager for the QNI Nickel Refinery at Yabulu,Company

309、Secretary for QAL and General Manager for Strategy and Development at Alinta Limited.Chris is also a Director of Austin Engineering Limited and Mayur Resources Limited.Chris holds a Bachelor of Engineering(Mechanical)and a Graduate Diploma of Engineering(Chemical)from the West Australian Institute o

310、f Technology(now Curtin University).He also holds a Bachelor of Laws and a Master of Laws from the Queensland University of Technology and a Graduate Diploma in Legal Practice from the Australian National University.18 Austal Limited|Directors Report Lee Goddard Independent Non-Executive Director Le

311、e Goddard Independent Non-Executive Director Lee was appointed as a Non-Executive Director of the Company in January 2023,and has been a member of the Audit&Risk Committee and Nomination&Remuneration Committee since January 2023.He is an Executive Leader who continues to serve as a Royal Australian

312、Navy active reserve officer(rank Rear Admiral)following 34 years full time service up until January 2021.In April 2022 he was appointed as the inaugural CEO and Executive Director of the Australian Missile Corporation.He is also a Non-Executive Director of the Commonwealth Superannuation Corporation

313、,an Advisor to the Minderoo Foundation and OCIUS Technologies,and the Chairman(Race Director)of the Sydney to Hobart Yacht Race.Prior to assuming his current industry roles,he was dual appointed as Commander,Maritime Border Command and Operation Sovereign Border,responsible for the law enforcement a

314、nd operational oversight of Australias maritime economic and security zones;covering more than 10 per cent of the earths surface across the Indian,Pacific and Southern Oceans,Antarctic Territory and Australias northern maritime approaches.This was preceded by a two-year secondment into the Departmen

315、t of the Prime Minister&Cabinet.On promotion to Commodore in late 2014 he assumed the role of Commander Surface Fleet,commanding 18 major warships and over 3,500 personnel.He has commanded warships and joint-agency Taskforce s at every senior Navy rank from Commander to Rear Admiral.He has contribut

316、ed to a range of professional and academic journals focused on national security,maritime issues and international affairs.Kathryn Toohey AM,CSC Independent Non-Executive Director Kathryn Toohey AM,CSC Independent Non-Executive Director Kathryn was appointed as a Non-Executive Director of Austal Ltd

317、 in February 2024 and is a member of the Audit&Risk Committee and the Nomination&Remuneration Committee.She brings strong program management,government procurement,digital and technology expertise to Austal through her experience in senior executive roles in the Department of Defence.Kathryn was a s

318、enior officer in the Australian Army,retiring at the rank of major general in early 2023.For over two decades she was involved in Defence capability.She served as Head Land Capability responsible for the modernisation and sustainment of all Army equipment and infrastructure including helicopters,tan

319、ks,communication systems and watercraft.In her last appointment within the Australian Defence Force Headquarters she was responsible for integrating capability across the three Services.She was appointed a Member of the Order of Australia for exceptional service to the Australian Defence Force in th

320、e fields of capability development and education.Kathryn is also a Non-Executive Director of DefenceHealth Ltd,Cylent International Pty Ltd,Greater Western Sydney(GWS)Giants(a division of the AFL)and ACT Basketball.She is a member of the Australian Strategic Policy Institute(ASPI)Executive Council,a

321、nd provides a range of advisory and consulting services.Kathryn holds an Executive Master in Business Administration(Complex Project Management),a Master of Management in Defence Studies,a Graduate Diploma in Information Technology and a Bachelor of Electrical Engineering(Honours).She is a graduate

322、of the Australian Institute of Company Directors and the INSEAD Advanced Management Programme.Austal Limited|Directors Report 19 Interests in the shares and options of the company and related corporate bodies Interests in the shares and options of the company and related corporate bodies The interes

323、ts of the Directors in the shares of Austal Limited at the date of this report were as follows:Principal activities Principal activities The principal activities of the companies within the consolidated entity during the year were the design,manufacture and support of high performance vessels for co

324、mmercial and defence customers worldwide.These activities are unchanged from the previous year.Results Results The net profit after tax of the consolidated entity for the financial year was$14.9 million(FY2023:net(loss)after tax$(13.8)million).Review of operations Review of operations A review of th

325、e operations and financial position of the consolidated entity is outlined in the Review of Operations on page 12.Share price Share price The closing share price of Austal at 30 June 2024 was$2.49(30 June 2023:$2.37).Dividends Dividends No dividends were paid after the FY2024 H1 results(FY2023:H1 4.

326、0 cents per share)and no further dividend has been declared for FY2024 post 30 June 2024(FY2023:H2 3.0 cents per share).Significant events after the balance date Significant events after the balance date On 27 June 2024,the Group announced that former US Secretary of Navy Mr Richard Spencer will rep

327、lace Mr Rothwell as Non-Executive Chairman,and will also join the board of Austal USA,effective 1 July 2024.On 15 July 2024,the Group announced that Austal Australia delivered the 20th Guardian-class Patrol Boat(GCPB)to the Australian Department of Defence.On 26 July 2024,Mr Ian McMillan Chief Opera

328、ting Officer Australasia tendered his resignation effective immediately.The Board of Directors has initiated a search for a suitable replacement and interim management measures have been put in place to ensure continuity and stability in the Group s operations.On 29 July,the Group announced that Aus

329、tal Australasia has been awarded a contract to design and construct a wind-powered,aluminium cargo trimaran for Vela Transport of Bayonne,France.The exact purchase price for the vessel cannot be disclosed for commercial reasons,however,is in the range of$40 to$45 million.DirectorOrdinary SharesShare

330、 RightsIndeterminate RightsDirectorOrdinary SharesShare RightsIndeterminate RightsMr Richard Spencer16,523 -Mr John Rothwell32,761,692 -Mr Paddy Gregg242,399 -594,828 Mrs Sarah Adam-Gedge20,000 81,252 -Mr Chris Indermaur-62,653 -Mr Lee Goddard-8,722 -Ms Kathryn Toohey-20 Austal Limited|Directors Rep

331、ort On 2 August 2024,the Group announced Austal Australia has delivered the 7th of 10 Evolved Cape-class Patrol Boats(ECCPBs)under contract to the Royal Australian Navy.On 5 August 2024,the Group announced Austal USA has been awarded a US$54,997,317(A$84,455,364)fixed-priced incentive(firm-target)co

332、ntract modification for the construction of two additional Landing Craft Utility(LCU)1700-class vessels for the United States Navy.On 27 August 2024,the Group announced that it has reached a global resolution with both the US Department of Justice(DoJ)and the US Securities Exchange Commission(SEC)to

333、 resolve previously disclosed investigations into the events leading up to the write back of work in progress(WIP)in July 2016.The Directors are not aware of any other matters or circumstances that have arisen since the reporting date which significantly affected or may significantly affect the operations of the Group,the results of those operations,or the state of affairs of the Group in subseque