Slide 1: Presentation by CEO and CFO, September 2008
Presentation by For personal use only Mr Terry Stinson CEO Mr Keith Halliwell CFO September 2008
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements For personal use only This presentation includes forward-looking statements that involve risks and uncertainties. These forward-looking statements are based upon management's expectations and beliefs concerning future events. Forward-looking statements are nec
Slide 3: Agenda
Agenda For personal use only Terry Stinson Introduction FY08 Results Group Overview The Future Synerject Summary P3 ORBITAL COPYRIGHT
Slide 4: Terry Stinson Introduction
For personal use only Terry Stinson Introduction P4 ORBITAL COPYRIGHT
Slide 5: Terry Stinson Introduction
Terry Stinson Introduction For personal use only • 2007 to 2008 – Vice President and General Manager, Siemens VDO, Powertrain, Gasoline Systems, Fuel Systems – Member of Board of Directors of Synerject • 2002 to 2007 – Vice President and General Manager, Siemens VDO, Gasoline Systems, Fuel Component
Slide 6: FY08 results
For personal use only FY08 results P6 ORBITAL COPYRIGHT
Slide 7: Highlights FY08
Highlights FY08 For personal use only • Synerject manufacturing joint venture commences production of electronic control units in China • First cash dividend payment of US$840,000 received from the Synerject manufacturing joint venture • Polaris releases 1st production ATV using Orbital technology •
Slide 8: FY08 Results – P&L
FY08 Results – P&L For personal use only A#039;m FY08 FY07 FY06 FY05 FY04 Revenue Engineering Fees 11.7 12.5 8.6 8.3 11.5 Royalties & Licences 2.7 2.3 2.4 2.2 3.2 Operating revenue 14.4 14.8 11.0 10.5 14.7 Share of Synerject profit 2.4 3.2 4.1 2.9 2.7 Other Income 0.3 0.4 0.5 1.0 2.0 17.1 18.4 15.6 14.
Slide 9: FY08 Results – EBIT Bridge 07 - 08
For personal use only A#039;m Fo 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 re ig n FY Ex 07 En ch gi an n ee g e rin Im g pa Li Se ct ce rv n i ce cin s g In & co R m oy e al t ie Sh s ar In e m co of e Sy ne rje ct Pr of O it th er Em In co pl m oy e ee Ex pe ns C es M L se t tl em O en th t er Ex pe ns es
Slide 10: FY08 Results – Balance Sheet
FY08 Results – Balance Sheet For personal use only A#039;m FY08 FY07 FY06 FY05 FY04 Current Assets Cash 8.8 11.3 3.3 8.0 12.3 Other current assets 8.9 4.6 3.7 3.0 3.9 Total current assets 17.7 15.9 7.0 11.0 16.2 Non-Current Assets Equity accounted investments 13.1 13.0 6.3 0.0 0.0 Property, plant & equ
Slide 11: FY08 Results – Cash Flows
FY08 Results – Cash Flows For personal use only A#039;m FY08 FY07 FY06 FY05 FY04 Operating Activities Cash receipts 10.7 14.3 10.2 11.1 15.4 Cash payments (12.2) (14.5) (12.3) (15.4) (15.0) Interest and taxes 0.6 0.1 0.2 0.5 0.3 Net operating cash flows (0.9) (0.2) (1.9) (3.8) 0.7 Investing Activities
Slide 12: FY08 Results – Synerject
FY08 Results – Synerject For personal use only Revenue Result 90 4.5 80 4 70 3.5 60 3 US#039;m US#039;m 50 2.5 40 2 30 1.5 20 1 10 0.5 0 0 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 Operating and Investing Cash Flows Net Debt 7 10 9 6 8 5 7 4 6 US#039;m US#039;m 5 3 4 2 3 2 1 1 0 0 FY05 FY06 FY07 FY08 FY05 FY06 FY
Slide 13: Corporate Overview
For personal use only Corporate Overview P13 ORBITAL COPYRIGHT
Slide 14: Orbital Vision
Orbital Vision For personal use only Innovative Technology Solutions for a Cleaner World – Clean, efficient and safe transportation; – Efficient use of energy and resources; – Use of renewable and sustainable energies; where each are readily developable in Australia, and applicable to the world Accu
Slide 15: Orbital Corporation Overview - 2008
Orbital Corporation Overview - 2008 For personal use only Small Engines Transport Mining Alcohol Gasoline Alternative LPG CNG/LNG Kerosene Fuels HCNG Diesel Hydrogen FlexDI - Alternative Fuels Integration, Development and Application Expertise Engineering Services P15 ORBITAL COPYRIGHT
Slide 16: Orbital Corporation Overview - 2008
Orbital Corporation Overview - 2008 For personal use only Synerject • Manufacture and supply of EMS systems to non-automotive OEM’s Engineering Services •Energy/emission audit to Governments and Industry •Advanced R&D •Support for Licensees Licensing & Royalties Alternative Fuels • LPG • LNG • CNG P
Slide 17: Orbital Corporation Overview - 2008
Orbital Corporation Overview - 2008 For personal use only •Synerject Toulouse Delavan Toulouse Wisconsin USA France Changchun Newport Chongqing China News China Virginia USA Sydney Perth Australia Australia Orbital Locations Regional Customer Support Synerject Locations P17 ORBITAL COPYRIGHT
Slide 18: Orbital and Synerject Customers
Orbital and Synerject Customers For personal use only Page 18 P18 ORBITAL COPYRIGHT
Slide 19: The Future
For personal use only The Future P19 ORBITAL COPYRIGHT
Slide 20: Why Alternative Fuels and Energy Management?
Why Alternative Fuels and Energy Management? For personal use only Global Projected Requirement Crisis Orbital’s Opportunity Oil Production Projected Availability Source: http://www.theoildrum.com/tag/update “In the next ten years it is projected that electricity, liquefied petroleum gas (LPG) and n
Slide 21: The Future
The Future For personal use only Synerject Alternative Fuel Solutions - Increased service of the growing China, – LPG Taiwan and other emerging markets – LNG/CNG - Expanded product offerings – E100 (Brazil) FY09 Engineering Services – Advanced Development – Production Customer Support Energy and Emi
Slide 22: Alternative Fuels – Customer Benefits
Alternative Fuels – Customer Benefits For personal use only LNG Application C15 Diesel/LNG Dual-Fuel • $50,000-$80,000 annual savings depending on application •15% greenhouse gas savings available P22 ORBITAL COPYRIGHT
Slide 23: Alternative Fuels – Customer Benefits
Alternative Fuels – Customer Benefits For personal use only LPG Auto Application • Approx AU$1,350 annual ULP Retail Cost of Fuel (Sydney) Diesel saving LPG $1.80 • 10% greenhouse gas $1.60 Cost/Litre (AU$) $1.40 savings available $1.20 $1.00 • Gov’t rebate on LPG $0.80 $0.60 conversions. Bracks Rep
Slide 24: Orbital Gas Products (OGP)
Orbital Gas Products (OGP) For personal use only • Q1 Premium supplier to Ford Australia for E-Gas systems • Vast experience and in-field knowledge of use of LPG in Australia • Direct access to Vialle experience, knowledge and in-field application of LPi technology • OGP addition to Orbital group me
Slide 25: LPG Products
LPG Products For personal use only Current LPG Systems Liquid Propane Injection P25 ORBITAL COPYRIGHT
Slide 26: LPG – Australia
LPG – Australia For personal use only Australian LPG Market $400 Market $350 Orbital $300 AU$ (million) $250 $200 $150 $100 $50 $0 Retrofit OEM Source: Orbital Information P26 ORBITAL COPYRIGHT
Slide 27: Asia CNG Market
Asia CNG Market For personal use only CNG Vehicles - Asia 3,000 2,500 Units (1000's) 2,000 1,500 1,000 500 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 Source: IANGV P27 ORBITAL COPYRIGHT
Slide 28: Synerject
For personal use only Synerject P28 ORBITAL COPYRIGHT
Slide 29: Synerject
Synerject For personal use only Synerject EMS 2 Wheel Vehicle Systems 400 350 300 Units ('000's) 250 4 Stroke Port Injection Fuel Rail System 200 (V-Twin motorcycle engine) 150 100 50 0 FY06 FY07 FY08 FY09(E) Synerject commences production in China M3a Scooter EMS Module P29 ORBITAL COPYRIGHT
Slide 30: Synerject – Non Automotive EMS Market Projection
Synerject For personal use only Non Automotive EMS Market Projection $6,000 $5,000 $4,000 AU$ million $3,000 $2,000 $1,000 $0 FY09 (E) FY10 (E) FY11 (E) FY12 (E) FY13 (E) Source: Orbital Projections P30 ORBITAL COPYRIGHT
Slide 31: Synerject – Emission Legislation
Synerject For personal use only Emission Legislation 2006 2007 2008 2009 2010 2011 2012 2013 2014 China MC Europe MC India MC Outboard/PWC Snowmobile ATV In Place Discussion or Proposed Total Motorcycle Only 80 70 Asia M/cycle Non-Auto volumes 60 (million units) 50 40 30 20 10 0 2006 2011 2016 The N
Slide 32: Summary
For personal use only Summary P32 ORBITAL COPYRIGHT
Slide 33: Summary
Summary For personal use only 1. Build on existing business sectors 2. Expansion into Alternative Fuels 3. Support Synerject growth 4. Investigate other growth opportunities Any Questions? P33 ORBITAL COPYRIGHT
Slide 34: Supplementary Information
Supplementary Information For personal use only P34 ORBITAL COPYRIGHT
Slide 35: Orbital Corporation Information
Orbital Corporation Information For personal use only Australian owned publicly listed company trading on ASX as OEC Listed on US OTC Bulletin Board (code OBTLY) Owner and developer of Orbital DI Shares on issue 475 million Debt $14.2 million (interest free loan from WA Government repayabl
Slide 36: Summary – Earnings by Sector
Summary – Earnings by Sector For personal use only 4 3 2 A$m 1 0 -1 FY04 FY06 FY07 FY08 Engineering Royalty & Licences Synerject P36 ORBITAL COPYRIGHT
Slide 37: Summary – Licensing and Royalties
Summary – Licensing and Royalties For personal use only 3 2.5 2 A#039;m 1.5 1 0.5 0 FY05 FY06 FY07 FY08 Revenue Contribution P37 ORBITAL COPYRIGHT
Slide 38: Summary – Engineering Services
Summary – Engineering Services For personal use only 14 12 10 8 A#039;m 6 4 2 0 -2 FY05 FY06 FY07 FY08 Revenue Contribution P38 ORBITAL COPYRIGHT