Orbital Corporation Ltd · ASX:OEC
Orbital — Investor Presentation (April 2020)
19 slides from Orbital's investor presentation, Apr 6, 2020
Slide 1: Investor Presentation April 2020
Investor Presentation April 2020
Slide 2: Cautionary statement
Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties. These statements are based upon management’s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factor
Slide 3: Statement on COVID-19
Statement on COVID-19 Like many businesses in Australia, the USA and around the Customers, Suppliers and Contractors Our sites in Australia and the USA remain fully operational and continue to world, Orbital UAV is closely monitoring business risks manufacture as normal. presented by the Coronavirus
Slide 4: What we do
What we do World leader in the design and manufacture of integrated engine systems for tactical unmanned aerial vehicles (UAVs) © 2020 Orbital Australia Pty Ltd Image shows Insitu’s ScanEagle3 and Orbital UAV’s propulsion system 4
Slide 5: At a glance
At a glance ASX listed company (ASX: OEC) On track to achieve FY20 revenue guidance of $25-$35 million and full-year profitability Long Term Agreement (LTA) with Insitu Inc. (a Boeing Company) to supply engines across entire fleet of military drones Two engine models currently shipping to Insitu Inc
Slide 6: What is a tactical UAV
What is a tactical UAV Tactical UAVs are used by global defence forces for gathering intelligence, surveillance and reconnaissance • Field operated by military units • Carries state-of-the-art electronic payloads (e.g. day/night cameras) • Worth $3.5 - $6 million per system* • Wingspan up to 5 m • F
Slide 7: UAV defence market
UAV defence market UAV production by region* 6552 $ millions 2017 Worldwide military UAV production 2026 3756 $128 billion* 2613 2422 2269 2283 Worldwide tactical UAV production 1063 906 $21.7 billion* 58 215 USA Asia-Pacific Europe Mid-East Other USA DoD UAV production Country/region $2.6 billion i
Slide 8: Tactical UAV landscape $21.7Bn
Tactical UAV landscape Tactical UAV $21.7Bn* © 2020 Orbital Australia Pty Ltd * UAS Market Outlook with Special Focus on Tactical Systems, Teal Group Corporation | For the years 2017-2026 8
Slide 9: Existing clients
Existing clients Long Term Agreement (LTA) Total sales to up to $350M over five years 2018-2023 date ~$22M © 2020 Orbital Australia Pty Ltd 9
Slide 10: Insitu Long Term Agreement
Insitu Long Term Agreement Under the Long Term Agreement, Orbital UAV is to design, manufacture To power Insitu’s and service three Orbital UAV engine models and manufacture and entire UAV fleet service two Insitu designed engine models | Designed | Designed ScanEagle2 In Production In Production In
Slide 11: Growing customer base
Growing customer base MoU signed with one of Singapore’s largest defence companies (ASX announcement 19 March 2020) MoU includes 3 phases for the design, development and initial low rate production of UAV engines Contract signed for Phase 1 requiring the design, development and production of an init
Slide 12: UAV defence market opportunities
UAV defence market opportunities Current Tactical UAV Programs Opportunity / Requirements NAVAIR Growing demand for modular, versatile and multi-mission capable platforms • Enhanced expeditionary capabilities • More payload capability & flexibility RQ-21A Blackjack: • Increasing fuel efficiency doin
Slide 13: Why Orbital UAV?
Why Orbital UAV? Heavy fuel 2-stroke IP and know-how 40 years developing innovative engine solutions 15 years as a global leader in spark ignited heavy fuel propulsion © 2020 Orbital Australia Pty Ltd 13
Slide 14: Delivering to defence
Delivering to defence Orbital UAV’s heavy fuel propulsion systems meet the US Dept of Defence’s ‘one fuel’ policy and high reliability requirements of front line personnel Orbital UAV Others Time between overhaul 500 hrs ~50 hrs Cold start to launch 2 min >20 min x3 U.S. FAR33.49 endurance test Yes
Slide 15: What we've delivered
What we’ve delivered Mar 2020 Mar 2020 Singapore defence InsituPrimary contract Jan 2020 Supplier Status Jan 2020 HY FY20 prelim revenue: Aug 2019 Second engine $11.4M shipping FY19 revenue: under LTA May 2019 $15.3M Oct 2018 First engine FY20 revenue: Expanded shipping $25-$35M Engineering services
Slide 16: Where we're going...
Where we’re going… New Customer Opportunities Capture increasing Defence market Supply Chain Efficiency Quality, cost, on time delivery Hood River United States End User Engagement Direct access to US DoD Perth Australia © 2020 Orbital Australia Pty Ltd 16
Slide 17: Board of Directors
Board of Directors John Welborn Todd Alder Steve Gallagher Kyle Abbott Chairman Managing Director Non-Executive Non-Executive Non-Executive Director & CEO Director Director - Appointed Chairman March 2015 - Appointed CEO & MD in 2017 - Board member since 2017 - Experienced aerospace and - MD & CEO o
Slide 18: Corporate overview
Corporate overview Capital Structure Investment Highlights Fully Paid Ordinary Shares 77.5M • Half-year revenue: $11.4M • On track for full-year profitability Market Cap @ $0.42 (31 Mar ‘20) $32.5M • Strong cash balance Cash & Receivables (31 Dec ‘19) $13.5M • Contracts with market leaders Revenue F
Slide 19: www.orbitaluav.com
™ www.orbitaluav.com Todd Alder Ian Donabie Managing Director / CEO Corporate Communications Manager +61 8 9441 2311 +61 8 9441 2165 contact@orbitalcorp.com.au idonabie@orbitalcorp.com.au