Orbital Corporation Ltd · ASX:OEC
Orbital — Investor Presentation (July 2017)
15 slides from Orbital's investor presentation, Jul 25, 2017
Slide 1: Company Update July 2017
For personal use only COMPANY UPDATE JULY 2017
Slide 2: Contents
For personal use only CONTENTS 03 POSITION STATEMENT 04 COMPANY OVERVIEW 05 PRELIMINARY FINANCIAL RESULTS 2016/17 06 EXECUTIVE SUMMARY 07 ORBITAL UAVE UPDATE 10 REMSAFE UPDATE 11 DIRECTORS & MANAGEMENT 12 2017/18 MILESTONES 13 CLOSING REMARKS 14 CAUTIONARY STATEMENT 15 APPENDIX 1 - MARKET NEWS 02 Co
Slide 3: Innovation That Performs
For personal use only INNOVATION THAT PERFORMS ORBITAL invents and builds smart technology that delivers improved performance outcomes for our clients in the safety & productivity and unmanned aerial vehicle sectors. 03 Copyright Orbital Corporation Ltd 2017
Slide 4: Company Overview
COMPANY OVERVIEW SHARE PRICE & VOLUME 01 NEW $12 MILLION UAV ORDER For personal use only $ M 1.2 8 02 ORBITAL SHIPS FIRST PRODUCTION UAV ENGINES 1.0 03 04 UAV BUSINESS TAKING OFF - SECOND $12.8 0.8 02 05 6 03 MILLION ORDER 01 ORBITAL SIGNS NEW UAVE AGREEMENT 0.6 06 4 04 WORTH UP TO $120 MILLION 0.4
Slide 5: Preliminary Financial Results 2016/17
PRELIMINARY FINANCIAL RESULTS 2016/17 For personal use only PRELIMINARY RESULTS FY17 REVENUE & GROSS MARGIN % 25.0 60% $M FY17 FY16 FY15 REVENUE 14.3 11.8 9.7 50% 20.0 GM % EBITDA* (6.5) 4.7 1.3 NPAT (12.4) 1.3 (0.7) 40% CASH 17.9 26.3 8.0 15.0 DEBT 8.1 8.3 17.2 30% NET ASSETS 19.2 31.2 21.9 10.0 20
Slide 6: Executive Summary
EXECUTIVE SUMMARY For personal use only • 2016/2017 Loss primarily driven by temporary revenue interruption at Orbital UAVE & market conditions at REMSAFE • Positive UAVE market news drives strong market conditions for 2017/18* • Talent management strategy delivering material cost and operating impr
Slide 7: Orbital UAVE Long Term Supply Agreement
ORBITAL UAVE LONG TERM SUPPLY AGREEMENT For personal use only • Best in class credentials validated by US FAR 33.49 engine endurance test (first in class to do so) and ScanEagle® test flight success • First Insitu order of $12 million received August 2015 followed by second $12 million order Septemb
Slide 8: Orbital UAVE Positive Market Outlook
ORBITAL UAVE POSITIVE MARKET OUTLOOK For personal use only • Teal analysts predict that Worldwide UAV and drone spending will more than triple over the next decade.1 • US Naval Air Systems Command (Navair) awarded $1.73 billion contract for Intelligence, Surveillance & Reconnaissance (ISR) services
Slide 9: Orbital UAVE US Localisation
ORBITAL UAVE US LOCALISATION For personal use only CAPITALISE OPPORTUNITIES • US expected to dominate the UAV market followed by Europe & Asia • OEC is well positioned with US localisation strategy • Closer collaboration and engagement with major clients • Enhance delivery logistics and responsivene
Slide 10: REMSAFE Expands Product Suite
REMSAFE EXPANDS PRODUCT SUITE • Expansion of product suite beyond hardware supply For personal use only • Experts in isolation across multiple applications • Increased profile across customer base • Autonomous operations in mining present market opportunities • REMSAFE Mobile product enabler in evol
Slide 11: Directors & Management
DIRECTORS & MANAGEMENT BOARD OF DIRECTORS TERRY STINSON Chief Executive Officer & Managing Director For personal use only JOHN WELBORN Chairman Non-executive Director STEVE GALLAGHER Non-executive Director MANAGEMENT TEAM TODD ALDER Chief Financial Officer & Company Secretary DR GEOFF CATHCART Vice
Slide 12: 2017/18 Milestones
2017/18 MILESTONES For personal use only • Positive market news anticipated to drive strong demand for Orbital UAVE’s propulsion systems • Orbital UAVE to establish a US facility • REMSAFE expanded service and product lines together with newly appointed partners enhance access to market • Expected c
Slide 13: Closing Remarks
CLOSING REMARKS • Addressing revenue growth in 2017/2018: For personal use only 1. Orbital UAVE: capitalise on positive market news 2. REMSAFE : transformation through broader product suite and partner relationships • Leaner organisation with continued talent management to expedite company efficienc
Slide 14: Cautionary Statement
For personal use only 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, uncertai
Slide 15: Appendix - Market News
APPENDIX 1 - MARKET NEWS UAV Business For personal use only Article: The Global Military UAV Market 2016-2026 8 March 2017 http://www.prnewswire.com/news-releases/the-global-military-uav-market-2016-2026-300420637.html Article: Worldwide UAV and drone spending to more than triple over next decade, s