Ann: $200m Institutional Placement - investor presentation, page-2

After reviewing this prezzo against the ASB 1H/2025 results prezzo it looks to me that this was a opportunistic cap raise undertaken not for the stated need of the extra capital for FA2, but due to the ASB board considering that the SP had run too hard of late and giving cover for a part selldown of John Rothwell's holdings.

In the 1H results ASB reported that as of 20th Feb that; "Cash at bank (unaudited) is currently ~$514m having received another milestone payment for the sub module building contract in early January, and milestone payments on commercial orders." and that; "Austal has received a letter of support from an Australian Government financing agency for up to 50% of the financing required for the FA2 project for a period of up to 10 years (subject to final terms)"

They reportedly broke ground on FA2 in July 2024 and in the 'Capex funding and timeline for FA2' slide on pg18 in the CR investor prezzo they state that 'indicative phasing of capex' will be 25% in FY25, 60% in FY26 and 15% in FY27. So out of a total budget of A$450m (US$300m) they expect to spend A$112.5 in FY2025 (lets assume that half of that was spent in 1H/25, leaving A$56.25 to be spent in this 2nd half), A$270m in FY2026 and A$67.5m in FY27. So as of 31/12/24 they would have had an ongoing capex funding commitment of A$393.75 to complete FA2 in April 27.

Assuming the AUSGOV funding commitment for 50% of financing FA2 (A$225) was finalised, ASB would have to fund $A168 of capex from their own means to complete the FA2 project...but they reported that they had $514m in the bank as of 20/2/25, so why the desperate need to raise A$220m additional equity at a 15.6% discount to the prevailing SP as It doesn't appear to be to fund the build of FA2?

It just doesn't make sense IMO...lets hope the SP recovers sufficiently to offer retail holders a little SPP arb action to soften the blow.

DYOR & GLTAH!!!