AUSTAL ANNOUNCES CEO TRANSITION

COMPANY ANNOUNCEMENT

3 JUNE 2020

AUSTAL ANNOUNCES CEO TRANSITION

John Rothwell, the Chairman of Austal Limited (Austal) (ASX:ASB), today announces that its Chief Operating Officer Patrick Gregg will be promoted to the position of Chief Executive Officer effective 1 January 2021, following a six month transition from current Managing Director and CEO David Singleton.

Mr Gregg possesses significant project management, manufacturing and business experience acquired within the high technology nuclear defence industry, rail industry and naval shipbuilding industry, including at BAE systems where he was Project Director for the second of class Hunter killer nuclear submarine build.

Mr Singleton will have completed nine years as a Director including five years as CEO when he completes his term with Austal at the end of this calendar year. He will continue to work closely with Mr Gregg for the next six months to ensure an efficient handover.

Mr Rothwell said 3.5 years ago Mr Gregg was appointed as COO with a view to him being a natural successor for the CEO role in the future. Since his appointment Austal has set up operations in Vietnam, expanded its operations in the Philippines and won a new Cape class contract with the Australian Government.

“Our shipyards in Australia, the Philippines, Vietnam and China are working incredibly efficiently while producing quality defence and commercial vessels,” Mr Rothwell said.

“That is a reflection of Paddy’s drive, commitment and ability to engender similar characteristics from his employees. Those skills and personal qualities made him an ideal choice to take over from David at the end of the year.

“Paddy already possesses a good working relationship with Austal USA President Craig Perciavalle and I have no doubt that will continue.

“I would also like to thank David for his contribution to Austal over almost five years as CEO, and before that as a Non-Executive Director, and wish him all the best for the future.”

Mr David Singleton said after five years overseeing considerable business growth, the time was right to step aside and look for new opportunities.

“Austal is an incredible company producing excellent defence and commercial vessels and support services, delivering strong returns for shareholders,” he said.

“After an extended period with the company the time is now right to hand over to Paddy and explore new challenges.”

Mr Gregg said he was looking forward to the opportunity as CEO.
“Working as COO at Austal has provided me with an in-depth understanding of the opportunities and challenges that Austal faces. Working with Craig Perciavalle, CFO Greg Jason and the rest of Austal’s executive team, I will be focussed on ensuring Austal continues to drive value for our shareholders,” Mr Gregg said.

A summary of the key items of Mr Gregg’s employment agreement will be provided to shareholders once finalised. Mr Singleton will receive statutory and other entitlements under his contract upon leaving Austal.

Biography - Patrick Gregg

Patrick Gregg has extensive expertise and experience in the maritime defence sector and broader transportation industry, including vast knowledge of the Austal business, serving as Chief Operating Officer of the company since February 2017.

As COO, Mr Gregg has been responsible for major strategic investment in Austal’s shipbuilding facilities in the Philippines and establishing the new operational shipyard in Vietnam. This has been a key driver behind Austal’s strong revenue and earnings growth.

Prior to joining Austal, he most notably served in several senior project manager roles at BAE Systems, which is one of the world’s largest defence companies, over a period of 11 years.

While at BAE Systems, he oversaw the successful development and delivery of a nuclear submarine project worth around £1 billion and was a key project manager in a strategic initiative that reduced overhead costs at the company by 31%, which was 11% over the original target.

He has also held senior project management roles at Network Rail, which is the owner and infrastructure manager of most of the railway network in Great Britain.

Mr Gregg holds a Master’s of Mechanical and Automotive Engineering (Hons.) from the University of Newcastle-upon-Tyne and a Masters of Business Administration from Warwick Business School.

Mr Patrick Gregg (Left) and Mr David Singleton standing in front of a Guardian-class patrol Boat at Austal's Australian shipyard in Henderson, Western Australia.

Mr Patrick Gregg, pictured, is to be promoted to the position of Austal CEO effective 1 January 2021, following a six month transition from current Managing Director and CEO David Singleton.

-ENDS-

This ASX announcement has been approved and authorised for release by the Chairman of Austal.