Orbital Corporation Ltd · ASX:OEC
Orbital — Shareholder Meeting (October 2011)
28 slides from Orbital's shareholder meeting presentation, Oct 26, 2011
Slide 1: Orbital Corporation Ltd 23rd Annual General Meeting
For personal use only Orbital Corporation Ltd 23rd Annual General Meeting Orbital Corporation Limited, 4 Whipple Street, Balcatta, Phone: +618 9441 2311 www.orbitalcorp.com.au Western Australia 6021 Fax: +618 9441 2133 Email: info@orbitalcorp.com.au Pg 1
Slide 2: Agenda
Agenda For personal use only • Introduction by Chairman • Chief Executive Officer’s Address • Formal Business • Questions and Answers Pg 2
Slide 3: Chairman's Address
For personal use only Chairman’s Address Orbital Corporation Limited, 4 Whipple Street, Balcatta, Phone: +618 9441 2311 www.orbitalcorp.com.au Western Australia 6021 Fax: +618 9441 2133 Email: info@orbitalcorp.com.au Pg 3
Slide 4: Financial Summary
Financial Summary For personal use only FY11 Financial summary: A$'000 FY11 FY10 Alternative Fuels Revenue 5,847 6,203 Contribution ( 757) ( 1,727) Consulting Services Revenue 9,492 9,621 Contribution 161 1,031 Licences and royalties Revenue 1,081 1,199 Contribution 610 732 Total Revenue 16,420 17,0
Slide 5: Cash Flow
Cash Flow For personal use only Cash Flow FY11 FY10 A$'000 Operating cash flow (1,792) (5,049) Synerject dividend 1,208 677 (584) (4,372) Sale of Balcatta property 8,557 0 Acquisition of Sprint Gas (1,780) 0 Other Capex and Development costs (1,074) (2,478) Financing cash flow (1,848) 336 Movement i
Slide 6: CEO's Address
For personal use only CEO’s Address Orbital Corporation Limited, 4 Whipple Street, Balcatta, Phone: +618 9441 2311 www.orbitalcorp.com.au Western Australia 6021 Fax: +618 9441 2133 Email: info@orbitalcorp.com.au Pg 6
Slide 7: Orbital - The Original Concept….Derivatives
Orbital - The Original Concept….Derivatives For personal use only The Origins Skills Today’s Products Future Products Alternative Fuel Systems for: Engine Management Systems Fuel Systems Orbital Engine (circa 1970 to 1982) Combustion Systems Pg 7
Slide 8: Orbital's Vision
Orbital’s Vision For personal use only “ Leader in Specialised Engine and Vehicle Systems” Small Engines Transport Mining Alcohol LPG CNG/LNG Gasoline HCNG Kerosene Diesel Hydrogen Alternative Fuels & Engineering Pg 8
Slide 9: Global Engine Roadmap - Technology Options
Global Engine Roadmap - Technology Options use only Baseline H2 New technology Next Generation Fuel Options CNG / LNG For personal LPG Orbital product Orbital R&D Petrol / Diesel Internal Advanced* Hybrid Plug in Electric Combustion ICE w/ RangeExt Engine (ICE) Power Options Pg 9
Slide 10: Year in Brief – Key Points
Year in Brief – Key Points For personal use only • PROFIT - Full Year underlying profit • GROWTH - Synerject growth - US$120.8 million Revenue in FY 2011 • EFFICIENCY - Continuous improvement – Efficiency gains • CASH - Sale of Land and Buildings • FORD - Launch of Ford “EcoLPi” Falcon vehicles • AL
Slide 11: Alternative Fuels – Year in brief
For personal use only ORBITAL ALTERNATIVE FUELS Alternative Fuels – Year in brief Alternative Fuels generated revenue of $5.8m compared with $6.2m in the previous year Key Activities: 5.8 Ford release of EcoLPi Ford Falcon vehicles using Orbital’s Liquid LPG 8% Acquisition of Sprint Gas Aust
Slide 12: Ford "EcoLPi" – Liquid LPG
Ford “EcoLPi” – Liquid LPG For personal use only Ford Falcon EcoLPi - Fuel Costs per 100 km $16 Fuel Cost Assumption $14 ULP Cost cent/litre 141.9 $12 LPG cost cent/litre 68.5 Diesel cost cent/litre 146.9 $10 Cost AU$/100 km $8 $6 $4 $2 $0 Source: http://www.greenvehicleguide.gov.au/GVGPublicUI/home
Slide 13: Liquid LPG Applications
Liquid LPG Applications For personal use only Product covers OE, After-OE and Aftermarket Dedicated applications – Same base technology OE After OE Bi-Fuel Aftermarket Bi-Fuel Pg 13
Slide 14: Sprint Gas Australia (SGA)
Sprint Gas Australia (SGA) For personal use only • Acquired 55% share on 28th May 2011 for $2m with option to acquire 100% over time • Full year contribution in FY12 • LPG conversion kits and components in the Australian LPG aftermarket • One of the largest distributors in the Australian LPG afterma
Slide 15: Synerject – Year in brief
For personal use only Synerject – Year in brief Revenue of US$120.8m compared to US$90.4m in the previous year Largest independent Engine Management System (EMS) supplier to global non-auto market 76% Born in Balcatta 51.4 Model for Growth Orbital Share of Synerject Sales $’m Pro-rata Consol
Slide 16: Synerject – Year in brief
For personal use only Synerject – Year in brief Synerject Revenue 150 125 • 34% sales growth, US$'m 100 75 notwithstanding that many of 50 25 Synerject’s markets are still - FY07 FY08 FY09 FY10 FY11 challenged by the aftermath 1st Half Full Year of the global financial crisis. Synerject Profit after
Slide 17: Consulting Services – Year in brief
ORBITAL Consulting Services – Year in brief Consulting Revenue of $9.5m, compared to $9.6m in For personal use only previous year Key Activities: Mitchell Corp (now Toll Resources) Dual Fuel LNG Program 9.5 UAS (Unmanned Aircraft Systems) FlexDITM 14% engine development $’m sales Changan F
Slide 18: R&D: Range Extender for Electric Vehicle
R&D: Range Extender for Electric Vehicle Wheel For personal use only Energy Flow Motor Mech. ICE G Rectifier Controller MG Trans. Generator Traction Motor DC / DC Specialised Internal Energy Flow Converter Energy Flow Combustion Engine Wheel Battery / Energy Storage Concept: • Small FlexDITM engine
Slide 19: Intellectual Property – Year in brief
ORBITAL Intellectual Property – Year in brief Intellectual Property For personal use only Revenue $1.1m compared to $1.2m in previous year North American marine market stabilising, 1.1 however still well down on pre global financial crisis market and reliant on discretionary 2% income $’m sales
Slide 20: Outlook
Outlook • Existing Businesses For personal use only – Automotive LPG • Ford success • Integration of Sprint Gas – LNG Heavy Duty • Toll Resources Fleet Test – UAS • Engineering programs in place • New Business Generation • Partnership discussions in Alternative Fuel EMS – India EMS – China EMS Pg 20
Slide 21: Delivering on the Strategy
Delivering on the Strategy For personal use only • Markets • Products • Skill base and facilities • Partners or acquisitions (speed to market) • Funding Pg 21
Slide 22: Formal Business
For personal use only Formal Business Orbital Corporation Limited, 4 Whipple Street, Balcatta, Phone: +618 9441 2311 www.orbitalcorp.com.au Western Australia 6021 Fax: +618 9441 2133 Email: info@orbitalcorp.com.au Pg 22
Slide 23: Item – Financial Reports
Item 2 – Financial Reports For personal use only • To receive and consider the financial statements for the year ending 30 June 2011 together with the Director’s Report and the Auditor’s Report Pg 23
Slide 24: Item – Remuneration Report
Item 3 – Remuneration Report For personal use only • That the Remuneration Report for the financial year ended 30 June 2011 is adopted Pg 24
Slide 25: Item – Re-election of Director
Item 4 – Re-election of Director For personal use only • That Dr M T Jones who retires by rotation in accordance with Article 9.3 of the Company’s Constitution and, being eligible, offers himself for re-election, be elected as a Director of the Company Pg 25
Slide 26: Item – Long Term Share Plan – T. Stinson
Item 5 – Long Term Share Plan – T. Stinson For personal use only • That approval is given for all purposes (including ASX Listing Rule 10.14 and exception 9 to ASX Listing Rule 7.2) for the issue of up to 866,250 fully paid ordinary shares in the Company, directly or indirectly, to Mr T D Stinson un
Slide 27: Questions
For personal use only Questions Orbital Corporation Limited, 4 Whipple Street, Balcatta, Phone: +618 9441 2311 www.orbitalcorp.com.au Western Australia 6021 Fax: +618 9441 2133 Email: info@orbitalcorp.com.au Pg 27
Slide 28: Thank you
For personal use only Thank you Orbital Corporation Limited, 4 Whipple Street, Balcatta, Phone: +618 9441 2311 www.orbitalcorp.com.au Western Australia 6021 Fax: +618 9441 2133 Email: info@orbitalcorp.com.au Pg 28