Presentation to Patersons

Securities ‘Go West’

Conference

Sydney, 28 May 2009

About Austin Engineering

World’s largest non-OEM designer and manufacturer of mining dump truck bodies

Other key product lines include excavator buckets, service modules, tyre handlers and other specialised equipment used in the mining and resources business sectors

Established and proven branding through ‘Westech’

and ‘JEC’

range of products

Domestic and global resources sectors and customers served from manufacturing operations in Brisbane, Perth, Mackay, Wyoming USA and Oman in the Middle East

Significant market penetration and presence in Australia, North America, Canada, South America, Indonesia and Middle East

Strategic alignment with major miners and OEMs

Further and more significant expansion into South America actively being contemplated

Record financial performance in FY 2007-08 and 1H 2008-09: EBIT of $17m and $12m respectively

Forecast EBIT range of $20-$23m for FY 2008-09 maintained

Snapshot

Key 2008 financial data

EBIT $17.05m

Net profit $11.54m

EPS 24.73c

Dividends per share 7.5c

Payout ratio 25-40%

Board and executive team

Peter Fitch Chairman

Michael Buckland Managing Director

Peter Pursey Non-Exec Director

Eugene Fung Non-Exec Director

Paul Reading Non-Exec Director

Colin Anderson CFO

Top 5 shareholders

Bradken

Ltd 13.2%

ANZ Nominees Ltd 7.6%

Michael Buckland 5.3%

S J Quinlivan Pty Ltd 4.8%

National Nominees Ltd 3.1%

Current trading data (at 20 May 2009)

Share price $1.60

Shares on issue 47.1m

Market capitalisation $75m

Number of shareholders 3,200

Historical FY Financials

Financials for HY to 31 December 2008

HY2008$m

HY2007$m

Increase%

Revenue 94.59 43.21 119%

EBITDA 13.12 7.86 67%

EBIT 12.09 7.00 73%

PBT 11.64 6.82 71%

NPAT 8.13 4.66 75%

Basic Earnings per Share (cents) 17.26cps 10.05cps 72%

EBITDA/Revenue 13.9% 18.2%

EBIT/Revenue 12.8% 16.2%

NPAT/Revenue 8.6% 10.8%

31 Dec2008

30 June2008

Increase%

Working capital 14.99 12.14 23%

Property, plant & equipment 25.85 21.85 18%

Intangible assets 18.72 16.75 12%

Total assets 98.20 82.82 19%

Total liabilities 62.67 51.20 22%

Net assets 35.53 31.62 12%

Gross debt 29.20 21.84 34%

Net debt (gross debt -

cash) 19.80 16.03 24%

Net gearing 35.8% 33.6% 2.2%

Strong increases in revenue in the period flowing from a high level of activity in the mining and resources business sector49 Westech dump truck bodies delivered in Australia against 7 in the corresponding periodEBIT result achieved against a background of significant cost pressure and availability of labour and steelUnderlying solid business unit performance with high levels of activity and labour utilisationSome dilution in EBIT % margin caused by $0.8m of provisions for variations, lower than average margins on a newly-introduced product line and increased labour costsAverage interest rate cost of 3.7% on Westech acquisition loan and EBIT interest cover >21

$9.4m of period-end cash balances reflective of strong ($13.3m) positive underlying operational cash flow Debt mostly comprised of USD19m loan to fund Westech acquisition in 2007, increase caused by decline in AUDIncrease in AUD equivalent value of USD debt supported by corresponding increase in Westech’s USD assetsUSD19m loan extended to October 2010, interest only, with no change to covenantsRelatively low net gearing with capacity to accommodate further business growth$2m of capex in the period, almost exclusively on productivity-enhancing equipment, funded from operational cash flow

Sources of Revenue

Type Client

Miners Rio Tinto, BHP, Xstrata, Macarthur Coal, Anglo Coal

OEMs Komatsu, Terex, Liebherr, Hitachi, Esco

Contractors Leighton, Thiess, Macmahons, Golding Contractors, Downer EDI Mining

Others John Holland, Barclay Mowlem, Aluminium Smelter Operators

By type of customer:

Type Application

Dump truck bodies Iron ore, coal and other materials up to 350t payloads

Buckets Iron ore, coal and other materials, up to 60t payloads

Service modules Fuels, lubricants, waste liquids, multi-purpose loads

Others Structural steelwork projects and specialised aluminium smelter components and assemblies

`

By type of equipment and application:

Good quality, blue-chip, supportive clientsAbility to service client needs for the manufacture of both standard OEM (such as Komatsu and Terex) and non-OEM specialised (such as Westech) equipmentProvision of responsive engineering and design services to develop products to suit specific needs are highly regarded by customers

New and replacement equipment for multiple applicationsDump truck bodies last only 3-4 yearsPayload efficiency and utilisation criticalProven designs and solid on-field capability and results essentialOperators are changing focus in order to increase efficiencies, reduce operating costs through innovative product designs

By geographical area:Location Area Serviced

Perth Pilbara, Kalgoorlie, Africa, Indonesia

Brisbane and Mackay Queensland, New South Wales, Indonesia

Wyoming, USA Powder River coal basin, Canada, South America

Middle East Oman

Customer needs satisfied on a regional and national basis, unlike competitorsModern workshops can be ramped-up at relatively short notice to meet customer demandsUtilisation of robotic welding technology to improve quality and delivery schedules

Product Range

Above: Westech dump truck body, Below: JEC service module Above: JEC bucket, Below: JEC tyre handler

Niche market:Austin operates in a market with limited competition on a worldwide basis

Competitors are fragmented and regional, with limited or no national/international presence

Product and service capability:

Proven JEC and Westech product ranges are recognised and accepted by major miners and OEMs as market leaders on an international basis, offering significant operational savings

Extensive in-house design capability which can respond to customer requirements with fast turnaround times and innovative solutions -

a key and major attraction to customers

Quality and stable customers:

Our customers have strong underlying commercial operations and financial stability

Customers are encouraging Austin’s business development and are keen to pursue strengthened, expanded and longer-term business relationships

Product life cycles:Products are manufactured for new mines or mine expansion programs requiring new equipment

Products also manufactured for mines where existing equipment (such as dump truck bodies) requires to be replaced after 3-4 years of operation

Capability of offering new, more efficient products after demonstrated on-site performance

Market Positioning and Points of Differentiation

Sustainable business model:Proven productivity and profitability improvements from superior

product designs

Significant international market opportunities utilising the existing business strategy and model

Financial strength through solid operating margins and bottom-line profitability, strong operational cash flows, balance sheet capacity to accommodate growth, high EBIT interest cover and access to US dollar-denominated finance with low interest rates

Dedicated and motivated management team:Demonstrated capability to grow the business and to adapt to tough and evolving business conditions on an international basis

Commitment to pursue further business, product and performance improvements, working very closely with supportive customers and suppliers

Focus on developing the business further, using existing resources and expertise, to build the Austin Engineering brand and reputation and ultimately maximise value and shareholder wealth and returns

Market Positioning and Points of Differentiation

Recent Market Developments

Marked reduction in the level of activity by major miners, but operations have not come to a grinding halt and equipment is still being used

Protracted conclusion to the current round of iron ore price negotiations has delayed expenditure decisions by the major miners

Requirements for new and replacement equipment have been less than 2008 levels, however enquiry and tendering activity is beginning to pick up again with OEMs looking into the new financial year

Strong ongoing activity along the East Australian seaboard with moderating demand for coking coal in Central Queensland being offset by increased demand for thermal coal in the Hunter Valley region of New South Wales

Skilled labour becoming more available and cheaper although there has been little movement in the cost of steel, with input costs remaining at elevated levels

pending iron ore price negotiations

Commercial arrangements with customers largely “as-is”

with product operational capabilities, quality and delivery remaining the key criteria

Development of a credible commercial and technical reputation in

Oman (through a joint venture arrangement) is leading to the award of new contracts

Expand the company’s existing customer base and geographical presence through the promotion of the Westech and JEC product ranges

Development of long-term relationships with key customers and OEMs on a worldwide basis to become the preferred supplier of quality mining products through

long-term commercial arrangements, thereby securing recurring revenue streams

Generation of alternative revenue streams, particularly the market for replacement dump truck bodies and other mining products

Expansion into the South American mining equipment market to take advantage of market opportunities available due to limited local competition or reliance on expensive imported equipment

Focus on developing a new generation of dump truck bodies and other products capable of delivering further productivity efficiencies and cost savings for customers

Position the company to take advantage of a recovery in economic

conditions by pursuing good value business acquisitions and increasing the focus on sales development

Business Strategy

South America Expansion Plans

Overview:

Significant market analysis and business feasibility studies undertaken, with Chile and Brazil being identified as regions of particular market opportunity

Chile:

Major miners in Chile have large fleets of equipment, with around 1,000 dump trucks at various stages of their operational life

Activity levels in Chile are still strong, with major miners such as Codelco

still progressing with expansion plans

Equipment needs for the major Chilean miners generally satisfied

by local suppliers, with very limited competition

Two possible business setup arrangements already identified which would enable Austin to establish a significant, direct manufacturing presence in Chile

These would enable Westech and JEC product ranges to be marketed

along with existing local designs

Feasibility studies show higher than average operating margins achievable once operations fully established

Chilean government financial assistance packages available to expand operations

South America Expansion Plans

Brazil:

Mining activity in the region still good with the major miner, Vale, recently reporting ‘solid financial performance in 1Q09’

and spending US$1.7b on project investments (excluding acquisitions)

Equipment needs generally satisfied by importing, which incurs 8%-15% of non-refundable duties and tariffs -

a significant cost to miners

Customer needs would be better satisfied by the presence of a local supplier with product design, manufacture and after-sales support capabilities

Business setup arrangement identified, which would enable the Westech and JEC product ranges to be effectively marketed and introduced to the region

As with Chile, feasibility studies show higher than average margins are achievable once operations fully established

Brazilian government financial assistance packages available to establish and expand operations

Outlook

Operations and activity levels over the past few months largely progressing as anticipated earlier in the January to June 2009 half-year period

Commercial arrangements with customers and suppliers not expected to change significantly, with some further possible relief from high input costs

Customers planning horizons have shortened and future orders for

equipment are likely to be placed for shorter forward periods of time

A number of larger, longer-term projects for equipment still exist and Austin continues to be very actively involved with these

Queensland operations to begin the new financial year with a record forward workload well into the 2010 calendar year, whilst other operations actively pursue sales prospects in order to lengthen order books

EBIT for the full 2008-09 financial year still forecast to be within the range of $20-23 million, an increase of 18%-35% over the previous financial year

World’s largest non- OEM designer and

manufacturer of mining dump truck bodiesFor more information please visit www.austineng.com.au