Orbital Corporation Ltd · ASX:OEC
Orbital — Investor Presentation (November 2024)
20 slides from Orbital's investor presentation, Nov 14, 2024
Slide 1: Investor Presentation
Investor Presentation 14 November 2024 Not for release to the US wire services or distribution in the United States
Slide 2: Disclaimer
Disclaimer You must read the following notices before reading or making any use of this document or any information contained in this document. By continuing to read, use or otherwise act on this document, you agree to be bound by the following terms and conditions, including any modifications to th
Slide 3: Disclaimer
Disclaimer Investment Risk: An investment in OEC is subject to known and unknown risks, some of which are beyond the control of OEC, including possible loss of principal invested. OEC does not guarantee any return on investment, any particular rate of return or the performance of OEC, nor does it gu
Slide 4: World leader in the design and manufacture of integrated engine systems
World leader in the design and manufacture of integrated engine systems for military drones* © 2024 Orbital Australia Pty Ltd (* Tactical Unmanned Aerial Vehicles ‘UAVs’) 4
Slide 5: At a glance
At a glance FY24 revenue $12.6M Now producing 4 different engine models for 4 major clients Orbital UAV’s production expansion expected to double over the next 24 months Primary Engine supplier to Textron Systems (Aerosonde 4.8 HQ) for supply to FTUAS program DSO National Laboratories recent upgrade
Slide 6: Orbital UAV export revenues
Orbital UAV export revenues Sovereign capability and export revenue Exporting ~$15m p.a1 To customers including: Vietnamese Security Company 1 Average export revenue over last 3 years © 2024 Orbital Australia Pty Ltd 6
Slide 7: FTUAS Program
FTUAS Program The US Army is replacing its tactical drone (Textron ‘Shadow’). The Shadow has been in operation over the last 15 years. The replacement is being evaluated under the Future Tactical Unmanned Air System program (FTUAS) and sees a transition from fixed wing systems to runway independent
Slide 8: Propulsion Capabilities
Propulsion Capabilities Orbital has over 40 years experience in developing advance combustion engine solutions, and over 15 years experience in heavy fuel systems. Our technology has been proven in theatre with over 800,000 hours flight times recorded. After successfully producing two smaller engine
Slide 9: Defence & UAV market
Defence & UAV market Expanding investments Rising global Defence budgets • In 2024, global defence spending is expected to reach record highs, with the United States leading the way at around US$967 billion (increase 5.5%) Increased UAV adoption • Worldwide UAV production forecast to increase at 9.9
Slide 10: Corporate overview
Corporate overview Share Capital As at 12 November 2024 Our FY25 Objectives • Expand production Fully Paid Ordinary Shares 146.0M • Generate positive operational cashflows Closing share price $0.09 • Investment in new engine development • Repatriate key supply chain components Market Capitalisation
Slide 11: Entitlement Offer Details
Entitlement Offer Details A one for eight renounceable pro rata entitlement offer of New Shares at an issue price of A$0.11 per New Share to raise gross proceeds Entitlement Offer Structure of up to approximately A$2.0 million (before costs). The Entitlement Offer is underwritten and is available to
Slide 12: Appendices
Appendices © 2024 Orbital Australia Pty Ltd (* Tactical Unmanned Aerial Vehicles ‘UAVs’) 12
Slide 13: Appendix A: Key Risks (1 of 7)
Appendix A: Key Risks (1 of 7) INTRODUCTION This section discusses some of the risks associated with an investment in Orbital. Orbital's business is subject to a number of risk factors both specific to its business and of a general nature which may impact on its future performance. Before subscribin
Slide 14: Appendix A: Key Risks (2 of 7)
Appendix A: Key Risks (2 of 7) Manufacturing facilities: The Company operates from aerospace manufacturing facilities. The Company is reliant on third parties in relation to the supply of parts and the ongoing maintenance, repair and calibration of such facilities or their replacement in case of cat
Slide 15: Appendix A: Key Risks (3 of 7)
Appendix A: Key Risks (3 of 7) Intellectual property protection: The Company principally relies upon patents, trade secrets, copyright and contract law to protect its intellectual property in its proprietary technology. The protective measures taken by the Company may not be adequate to protect its
Slide 16: Appendix A: Key Risks (4 of 7)
Appendix A: Key Risks (4 of 7) Government regulation: The Company develops products for use in the aerospace and defence sectors, which are subject to extensive regulation. Products manufactured using the Company’s technology may also be subject to government regulation, including regulations govern
Slide 17: Appendix A: Key Risks (5 of 7)
Appendix A: Key Risks (5 of 7) Liquidity risk management: Liquidity risk arises from the financial liabilities of the Company and the Company's subsequent ability to meet its obligations to repay financial liabilities as and when they fall due. The liquidity position of the Company is managed to see
Slide 18: Appendix A: Key Risks (6 of 7)
Appendix A: Key Risks (6 of 7) Climate change risk: Climate change is a risk the Company has considered, particularly related to its operations in the aerospace industry. The emergence of new or expanded regulations associated with the transitioning to a lower-carbon economy and market changes relat
Slide 19: Appendix A: Key Risks (7 of 7)
Appendix A: Key Risks (7 of 7) • changes in government policies, taxation and other laws (including variations to existing taxes and the introduction of new taxes; • the strength of, and fluctuations in, the equity and share markets in Australia and throughout the world; • movement in, or outlook on
Slide 20: Appendix B: International Offer Restrictions
Appendix B: International Offer Restrictions (1 of 1) This document does not constitute an offer of Entitlements and New Shares in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Entitlements and New Shares may not be offered