Orbital Corporation Ltd · ASX:OEC
Orbital — Investor Presentation (January 2015)
24 slides from Orbital's investor presentation, Jan 9, 2015
Slide 1: Corporate Presentation
For personal use only Orbital Corporation Limited (ASX: OEC) Corporate Presentation ORBITAL January 2015 1
Slide 2: The Orbital Business Today
The Orbital Business Today ORBITAL Orbital today earns income via 4 operating segments; System Sales, Synerject Joint For personal use only Venture, Consulting Services and Royalties & Licences. Segments 1 2 3 4 Royalties & Segment System Sales Synerject Joint Venture Consulting Services Licenses UA
Slide 3: System Sales
System Sales ORBITAL The Systems Sales segment is a developer of engines, propulsion systems, engine For personal use only management systems and fuel system components for Original Equipment Manufacturers and the motor vehicle aftermarket. Business Model / Summary Development and supply of high v
Slide 4: SUAS and MALE Market Sizing
SUAS and MALE Market Sizing ORBITAL Global SUAS market projected to reach US$1.0bn by 2016. Orbital estimate the SUAS For personal use only and MALE propulsion market to >$250m. Orbital propulsion market estimates2 Market Data Estimates Market Data Estimates Notes: 1. SUAS: Small Unmanned Aircraft S
Slide 5: UAS Propulsion Press
UAS Propulsion Press ORBITAL Key Quotes For personal use only From Shephard Media – Unmanned News “Williamson described progress on the propulsion system front as phenomenal. ‘We have really enjoyed our relationship with Orbital. We find them to be a world-class partner, and the plan that we embarke
Slide 6: Orbital's UAS Boeing Works
Orbital’s UAS Boeing Works ORBITAL Orbital has been working with Insitu Inc, a division of The Boeing Company, since For personal use only January 2013. Orbital have recently delivered the first UAS1 engine system to Insitu Inc First purpose-built ScanEagle Unmanned Aircraft System propulsion syst
Slide 7: Insitu SCANEAGLE 2
For personal use only Insitu “SCANEAGLE 2” Photo: Propulsion System as displayed at Paris EuroNaval 2014 Exhibition 7 http://www.insitu.com/scaneagle2
Slide 8: LNG Opportunity
LNG Opportunity ORBITAL The cost of LNG (Liquid Natural Gas) is approximately 40% lower than diesel. Orbital’s For personal use only FlexNG™ Dual Fuel System provides excellent cost value for mining applications in Western Australia. Reduce Fuel Cost Diesel-Like Performance Best in Class Reliability
Slide 9: Synerject Joint Venture
Synerject Joint Venture ORBITAL Synerject, Orbital's 30:70 partnership with Continental AG, is the world largest For personal use only supplier of Engine Management Systems (EMS) and fuel system to the non- automotive market. Synerject’s head office is located in Virginia, USA. Business Model / Summ
Slide 10: Value of Synerject to Orbital
Value of Synerject to Orbital ORBITAL Orbital’s stake in Synerject has significant value, demonstrated by Continental AG’s For personal use only previous 12% purchase from Orbital for US$6m during March 2013. This transaction implies a value for Orbital’s remaining 30% stake of US$15m. Synerject Rev
Slide 11: Consulting Services
Consulting Services ORBITAL Orbital Consulting Services (OCS) provides engineering consulting services in engine For personal use only design, development and supply of combustion systems, fuel and engine management systems, along with engine and vehicle testing and certification. Business Model / S
Slide 12: Royalties & Licenses
Royalties & Licenses ORBITAL Orbital earns royalties from products using its FlexDITM systems and technology. The For personal use only royalty bearing products today are in the marine, scooter/motorcycle and SUAS1 markets. Business Model / Summary Orbital has maintained a portfolio of patents to
Slide 13: The Resource Sector Opportunity
The Resource Sector Opportunity ORBITAL Orbital is actively pursuing acquisition/partnership opportunities in the domestic For personal use only resource industry targeted at providing systems and products that improve productivity and/or that predict failures to reduce downtime. These products and
Slide 14: Proposed REMSAFE Acquisition
For personal use only Proposed REMSAFE Acquisition ORBITAL 14
Slide 15: Proposed Transaction Details
Proposed Transaction Details ORBITAL Orbital has entered into a Share Sale Agreement to acquire a 50% interest in REMSAFE For personal use only for $5m to be financed through a Convertible Note Offer. Orbital to acquire a 50% interest in REMSAFE Structure Remaining 50% to be held by the inventor
Slide 16: Overview of REMSAFE
Overview of REMSAFE ORBITAL REMSAFE has developed, and is selling, a remote isolation product titled “REMSAFE” For personal use only to bulk commodity above ground producers such as BHPB, Rio Tinto and FMG. Overview of REMSAFE Product REMSAFE Applications What is REMSAFE? A high voltage remote iso
Slide 17: The REMSAFE Product
The REMSAFE Product ORBITAL The REMSAFE product is a system collectively made up of a number of individual For personal use only components. Each installation requires a “Master Control Station” and at least one “Field Isolation Station”. Master Control Station (MCS) Field Isolation Station (FIS)
Slide 18: REMSAFE Process Explained
REMSAFE Process Explained ORBITAL A typical manual isolation of a bulk haulage system can take up to 40-90 minutes. The For personal use only REMSAFE remote isolation system can complete the same task in less than 3 minutes. The REMSAFE system also completes the isolation remotely and is therefore s
Slide 19: REMSAFE Business Case
REMSAFE Business Case ORBITAL Using an illustrative example for ‘WA Iron Ore Miner’, the material isolation time For personal use only saving experienced via using REMSAFE can lead to substantial production tonne increases and short payback periods on investment. The Situation Before REMSAFE Outcome
Slide 20: REMSAFE Market Opportunity
REMSAFE Market Opportunity ORBITAL REMSAFE is applicable to all hard rock mining and oil & gas production systems. The For personal use only local WA iron ore market opportunity alone is estimated at >$350m. REMSAFE Addressable Market of Major WA Iron Ore Mining and Ports Operations1 (# of units) Co
Slide 21: REMSAFE Investment Highlights
REMSAFE Investment Highlights ORBITAL For personal use only Proven product and service offering – successfully implemented at the WA iron ore operations of BHPB, Rio Tinto and FMG Increasingly relevant product for clients in a declining commodity price environment – helps to minimise production
Slide 22: The Orbital Business - Future
The Orbital Business - Future ORBITAL Acquisition of REMSAFE is the first step in Orbital's growth through a more diversified For personal use only structure. Further possibilities include; JV in India, additional new resources sector acquisitions, and a new USA based Unmanned Aircraft System propul
Slide 23: Corporate Overview
Corporate Overview ORBITAL Capital Structure Share Price / Volume History For personal use only Current ASX Code OEC Last Price (as at 8 January 2015) A$0.31 Ordinary Shares on issue 44.9m Options on issue (listed and/or unlisted) 2.7m Market Capitalisation (@ A$0.31) A$13.9m Cash (as at 30 Jun 14)
Slide 24: Contact Orbital
For personal use only Contact Orbital, or visit the website for further information www.orbital.com.au Orbital Corporation (ASX: OEC) 4 Whipple Street Balcatta,Western Australia, 6021 Managing Director:Terry Stinson Telephone: +61 (8) 9441 2311 ORBITAL 24