Slide 1: Pathway To Rapid Growth
For personal use only Pathway To Rapid Growth October 2016
Slide 2: Orbital is an innovative industrial technology company
For personal use only Orbital is an innovative industrial technology company Orbital invents, manufactures and invests in smart technology that delivers improved performance outcomes in the safety & productivity and unmanned aerial vehicle sectors 2
Slide 3: Outline
OUTLINE For personal use only 1 Orbital Introduction & Overview 2 Orbital UAVE Business 3 REMSAFE Business 4 Diversification and Growth 5 Summary
Slide 4: Orbital Business Highlights
ORBITAL BUSINESS HIGHLIGHTS For personal use only 30 June 2016 Highlights: Profit after tax of $1.2 million from revenue of $11.7 million Net tangible assets of $26.0 million Cash balance of $24.9 million UAVE production boosted by new $12 million order from Insitu-Boeing Long term produ
Slide 5: Corporate Overview
CORPORATE OVERVIEW For personal use only SHAREHOLDERS SHARE PRICE JP Morgan Nominees Australia Limited 31.6% 1.2 Board and Management 6.7% 1 CAPITAL STRUCTURE (OEC.AX) 0.8 Share Price (14 Oct 2016) $0.93 Fully Paid Ordinary Shares (14 Oct 2016) 77.2 million 0.6 Market Capitalisation (14 Oct 2016) $7
Slide 6: Orbital Directors and Management Team
ORBITAL DIRECTORS AND MANAGEMENT TEAM For personal use only Orbital Board of Directors Terry Stinson John Welborn John Poynton AO Chief Executive Officer & Chairman Independent Non-Executive Managing Director Non-Executive Director Director Orbital Management Team Ian Veitch Charis Law Dr Geoff Cath
Slide 7: Positioned for Rapid Growth
POSITIONED FOR RAPID GROWTH For personal use only Orbital, using core businesses, technologies, experience and facilities to achieve aggressive growth targets: AMBITION TRANSFORM Market leading innovative industrial technology company CORE Divest interest in legacy businesses Achieve $100m pa
Slide 8: Orbital Progress to Date
ORBITAL PROGRESS TO DATE For personal use only Raised $10M from Convertible Notes - converted to Equity Sale of Synerject 100% of outstanding Convertible Notes Converted to Equity December June December June 2014 2015 2015 2016 Divestment Transformed of Accelerator to core LPG Corporate Function bus
Slide 9: Orbital Businesses
ORBITAL BUSINESSES For personal use only Orbital consists of two core businesses, each positioned for rapid growth: 1. Unmanned Aerial Vehicles Orbital UAVE develops and supplies state of the art propulsion systems for unmanned aerial vehicles 2. Safety and Productivity Minimising isolation downtime
Slide 10: World Leaders in UAV Engines and Systems
For personal use only World Leaders in UAV Engines and Systems
Slide 11: Orbital UAVE global leader in small UAV propulsion
For personal use only ORBITAL UAVE is the global leader in the small unmanned aerial vehicle propulsion system market; delivering leading endurance, reliability and power-to-weight advantages.
Slide 12: Key Benefits
KEY BENEFITS For personal use only ORBITAL UAVE is the global leader in spark ignited, jet fuel propulsion systems for Small UAVs: Fuel Efficient Up to 40% better than today’s conventional engine Small Package Size Engine High power-to-weight ratio Fuel & Oil Tank System Light weight Electronic Cont
Slide 13: Competitive Advantage
COMPETITIVE ADVANTAGE For personal use only Orbital’s patented proprietary FlexDITM technology is the difference that delivers the world class heavy fuel performance: Diesel External High Pressure Others/ Turbine Compression Heaters etc. Direct Injection Experimental Ignition Low Cost ? Hi
Slide 14: Setting New Industry Benchmarks
SETTING NEW INDUSTRY BENCHMARKS For personal use only The first heavy fuel engine in its class to successfully complete durability testing over the US FAR 33.49 engine endurance test schedule Successful first test flight of the Insitu ScanEagle® UAV using an Orbital UAVE designed and built engin
Slide 15: Global UAV Projected Production Market
GLOBAL UAV PROJECTED PRODUCTION MARKET For personal use only Global military Small UAV production market $3,000 projected to reach approx. US$1.0b by 2020 $2,500 $2,000 $1,500 $1,000 $500 Medium Large Micro Small Small $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Company Announcement
Slide 16: 2016 Highlights
2016 HIGHLIGHTS For personal use only Second $12 million order received from Insitu Inc. Orbital Revenue Mix A$’000 30 June 2016 First production engines shipped to Insitu in May 16 5,814 Long term production contract with Insitu expected by end of CY2016 3,139 Propulsion systems being devel
Slide 17: Next Steps
NEXT STEPS For personal use only Leverage existing Insitu orders to expand market into other UAV classes Establish USA based facility for technical support, manufacturing, rebuilds & business expansion Continue to set new UAV propulsion benchmarks for performance, reliability and endurance E
Slide 18: Insitu CEO testimonial
For personal use only “The Insitu-Orbital propulsion system sets a new standard for small UAV propulsion systems and delivers high performance, increased endurance, and enhanced reliability, reducing life-cycle costs for our customers” Ryan M. Hartman, President and CEO, Insitu Inc., a subsidiary of
Slide 19: Remote Isolation System
For personal use only Remote Isolation System Minimising isolation downtime safely to maximise production
Slide 20: REMSAFE patented modular isolation system
For personal use only REMSAFE is a patented and modular isolation system enabling rapid and remote de-energisation of large mining equipment, increasing worker safety and reducing isolation downtime by up to 97% 20
Slide 21: The Key Benefits
THE KEY BENEFITS: For personal use only SAFETY PRODUCTIVITY RETURN ON TAILORED Eliminates exposure Cut isolation INVESTMENT REMSAFE of workers to arc flash downtime by up to Investment break- systems are and includes failsafe 97% and provides even point with tailored to site to ensure isolation is s
Slide 22: Safety
For personal use only • Eliminates risk of arc flash exposure • Includes failsafe to maintain isolation with interlocking system • Eliminates human error: • Ensures work is completed on correctly isolated equipment • Shorter procedures to follow reducing deviation SAFETY • Always isolates correctly
Slide 23: REMSAFE vs Other Remote Isolation Systems
REMSAFE vs Other Remote Isolation Systems For personal use only Other Remote Isolation Feature REMSAFE Systems SIL (Safety Integrity Level) Rated Components SIL Rated System Compliance with internationally recognised safety standards Tailored to meet site based Isolation procedures 2
Slide 24: Productivity
For personal use only • Minimises isolation downtime • Increases plant availability • Can be operated safely without electricians • Increases availability of product routes for alternate production or maintenance PRODUCTIVITY • Creates more ‘time on the tools’ for tasks under isolation • Reduces reh
Slide 25: Return on Investment
For personal use only Average Pre Isolation Total Potential Number of Annual Conveyor Installation REMSAFE Time with production revenue $A Isolations to production Reference date isolation REMSAFE time saved earned to last reading time saved time (min) (min) to date (hrs) date* (hrs) A Sep-11 757 40
Slide 26: Tailored
For personal use only REMSAFE systems: • Are fully customised • Integrate into any substation • Tailored based on individual site requirements • Risk assessed for each required tasks e.g. tramp metal removal TAILORED 26
Slide 27: 2016 Highlights
2016 HIGHLIGHTS For personal use only Orbital Revenue Mix A$’000 9 systems commissioned since December 2015 30 June 2016 Over 1,500 recorded isolations performed using 5,814 REMSAFE to date REMSAFE systems installed with BHP Billiton, Rio 3,139 Tinto and Anglo American First oversees applica
Slide 28: Next Steps
NEXT STEPS For personal use only Make REMSAFE synonymous with remote isolation Maximise penetration of Australia’s $1.7b critical bulk handling equipment market Produce a further refined REMSAFE product with cost reduction of 30% Establish partner sales channel with major OEM’s Expand into
Slide 29: One isolation switch, two buttons, three minutes
For personal use only One isolation switch Two buttons Three minutes to complete a verified, safe, full-energy isolation to maximise production
Slide 30: Diversification and Growth
For personal use only Diversification and Growth The Orbital Corporate Mergers & Acquisitions function is designed to identify high growth, mid stage, industrial technology opportunities 30
Slide 31: Orbital Mergers & Acquisitions
ORBITAL MERGERS & ACQUISITIONS For personal use only Mergers and Acquisitions core functions: Identifying high growth, mid stage, industrial technology opportunities Targeting bolt-on and adjacent acquisitions to expand and compliment Orbital UAVE and REMSAFE businesses Expand into new industr
Slide 32: Investment Focus
INVESTMENT FOCUS For personal use only Orbital is focused on investing in growing businesses in the commercialisation and early operations stage: Concept & Product Product Commercialisation & Early Operations Expansion Development Invest & Grow Realise full potential Develop & Cultivate • Highly ski
Slide 33: The Orbital Edge
THE ORBITAL EDGE For personal use only Orbital’s value-add extends beyond capital investment, utilising global networks & in house engineering capabilities, Orbital paves the way for rapid growth Electronics: Design: Commercialisation: • Shared Services Function • ECU Hardware • Full Suite of design
Slide 34: Success Stories
SUCCESS STORIES For personal use only World leaders in UAV engines and propulsion systems 10 patent families & 30+ noted inventions (UAV Specific) Created to save lives & boost production 13 patent families & 40+ noted inventions Built into largest global independent non-auto Engine Manage
Slide 35: Thank You. Any Questions?
For personal use only THANK YOU. Any Questions?
Slide 36: Cautionary Statement
CAUTIONARY STATEMENT For personal use only 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, uncertai
Slide 37: Contact Orbital
For personal use only Contact Orbital, or visit the website for further information www.orbitalcorp.com.au Orbital Corporation (ASX: OEC) 4 Whipple Street Balcatta, Western Australia, 6021 Telephone: +61 (8) 9441 2311