Orbital Corporation Ltd · ASX:OEC
Orbital — Investor Presentation (October 2020)
20 slides from Orbital's investor presentation, Oct 13, 2020
Slide 1: Investor Presentation
For personal use only Investor Presentation 13 October 2020
Slide 2: 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 3: Todd Alder, CEO & Managing Director
For personal use only Todd Alder CEO & Managing Director © 2020 Orbital Australia Pty Ltd 3
Slide 4: What we do
What we do For personal use only World leader in the design and manufacture of integrated engine systems for tactical unmanned aerial vehicles (UAVs) © 2020 Orbital Australia Pty Ltd Images: Insitu’s Integrator UAV (left) and ScanEagle3 UAV (right) 4
Slide 5: At a glance
At a glance For personal use only FY20 revenue $33.8M – Top end of revenue guidance Primary engine supplier to Insitu Inc. (a Boeing Company) Two of five engine models in production for Insitu, third engine model in development New engine development contracts with Northrop Grumman and one of Singap
Slide 6: What is a tactical UAV
What is a tactical UAV For personal use only 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* •
Slide 7: UAV defence market
UAV defence market For personal use only UAV production by region* Worldwide military UAV production $ millions $128 billion* 6552 2017 2026 Worldwide tactical UAV production 3756 $21.7 billion* 2613 2422 2269 2283 1063 906 USA DoD UAV production 58 215 $2.6 billion in 2017* USA Asia-Pacific Europe
Slide 8: Tactical UAV landscape
Tactical UAV landscape For personal use only 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
Slide 9: Our Tier 1 client base
Our Tier 1 client base For personal use only Long Term Agreement Signed in 2016 Supplying flight critical Expanded in 2018 components since SINGAPORE Primary Supplier in 2020 2013 DEFENCE 5 engine models COMPANY powering Insitu’s entire fleet April 2020 of tactical UAVs March 2020 Contract to design
Slide 10: Delivering on the Insitu Long Term Agreement
Delivering on the Insitu Long Term Agreement For personal use only Orbital UAV was designated Insitu’s primary engine supplier for the To power Insitu’s 5 engine models covered by the Long Term Agreement in March 2020 entire UAV fleet Status: Status: 3. ScanEagle2 1. Status: 4. Development timeline
Slide 11: Keith Hirschman, VP Global Growth
For personal use only Keith Hirschman VP Global Growth © 2020 Orbital Australia Pty Ltd 11
Slide 12: Defence to Defence Industry
Defence to Defence Industry For personal use only Military Service 1987-2017 Building Expertise Delivering Cold War through R&D, Test and Program Management End User Insight Post- 9/11 Global War on Terror ISR Systems (manned and unmanned) Customer Relationships 3 Pentagon Assignments Defense Indust
Slide 13: The UAS journey
The UAS journey For personal use only Early days “2nd Golden Age “Institutionalized” Next Gen of Aviation” Unprecedented growth Payload versatility Aviation programs of “Less Man” in UAS Combat flight hours ISR Services record (10x) 1999-2005 2006-2012 2013-2018 2020 © 2020 Orbital Australia Pty Ltd
Slide 14: Why Orbital UAV?
Why Orbital UAV? Heavy fuel 2-stroke IP and know-how For personal use only 40years developing innovative engine solutions 15years as a global leader in spark ignited heavy fuel propulsion © 2020 Orbital Australia Pty Ltd 14
Slide 15: Delivering to defence
Delivering to defence For personal use only Orbital UAV’s heavy fuel propulsion systems meet the US Dept of Defense’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.
Slide 16: Market opportunities: US Army Future Tactical UAS Program
Market opportunities For personal use only United States Army Future Tactical UAS Program Replacement of 4 companies currently participating Shadow 200 Tactical UAV in FTUAS capabilities assessment: Further timeline* Request for Information released end 2020 Decision made end 2021 Low rate initial p
Slide 17: Market opportunities: ADF 2020 Strategic Update
Market opportunities For personal use only ADF 2020 Strategic Update & Force Structure Plan Australian Defence Force • $270 billion to be invested in LAND129 Program defence capabilities over next decade • $2 billion identified for ISR and tactical UAV programs • LAND129 and SEA129 programs represen
Slide 18: Financial highlights
Financial highlights For personal use only FY20 FY21 REVENUE $33.8M 50 top end of guidance ($25M to $35M) Revenue 45 40 EBITDA $4.2M* 35 guidance $40M- transition to sustainable underlying earnings 30 25 NPAT $1.9M* 20 $50M 15 commitment to ongoing profitability 10 5 Cash & Cash Equivalents $8.7M 0
Slide 19: Corporate overview
Corporate overview For personal use only Capital Structure As at 12 October 2020 Our Financial Focus • Year-on-year revenue growth Fully Paid Ordinary Shares 77.6M • Transition to sustainable underlying earnings • Commitment to ongoing profitability Closing share price $1.26 • Strong balance sheet t
Slide 20: For personal use only
For personal use only ™ 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