Slide 1: Positioned for Rapid Growth
For personal use only POSITIONED FOR RAPID GROWTH August 2016
Slide 2: Orbital is an innovative industrial technology company
CORPORATE OVERVIEW 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
Slide 3: FY16 overview and capital structure
CORPORATE OVERVIEW For personal use only FY16 overview: Material investment to support growth in ORBITAL UAVE and REMSAFE Strong Balance Sheet position ORBITAL UAVE revenue deferred to H1 FY17 and will grow rapidly with expected Long Term Supply Agreement with Insitu, a subsidiary of The Boein
Slide 4: Positioned for rapid growth: core, transform, ambition
CORPORATE OVERVIEW For personal use only ORBITAL is an innovative industrial technology company positioned for rapid growth CORE TRANSFORM AMBITION Market leading innovative Divest interest in legacy industrial technology company Industrial innovation & commercialisation businesses Achieve $100m pa
Slide 5: Board of Directors and Management Team
CORPORATE OVERVIEW For personal use only Board of Directors Terry Stinson John Welborn John Poynton AO Chief Executive Officer Chairman – Independent Non-Executive Director and Managing Director Non-Executive Director Management Team Ian Veitch Charis Law Michael Lane Dr Geoff Chief Financial Chief
Slide 6: Two businesses positioned for high revenue growth in FY17
BUILDING OUR BUSINESSES For personal use only ORBITAL consists of two businesses which, after successful commercialisation in FY16, are positioned for high revenue growth in FY17: REMSAFE is a patented remote ORBITAL UAVE builds engine and isolation system for global mining propulsion systems for un
Slide 7: REMSAFE remote isolation system
BUILDING OUR BUSINESSES 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% Isolates in 3 minutes compared to a typical 45 minutes Eli
Slide 8: For personal use only
BUILDING OUR BUSINESSES For personal use only Connection Road - 45mins Field Failsafe Isolation Instrument Station Cubicle
Slide 9: Manual vs REMSAFE isolation process
BUILDING OUR BUSINESSES For personal use only Manual isolation process REMSAFE isolation process
Slide 10: REMSAFE Benefits - Safety
BUILDING OUR BUSINESSES For personal use only REMSAFE BENEFITS - SAFETY Safety Benefits Automated isolation eliminates risk from human error Fail-safe guarantees isolation is maintained – isolation cannot be inadvertently bypassed Recent Isolation Accident A recent fatality occurred in WA due
Slide 11: REMSAFE Benefits - Efficiency
BUILDING OUR BUSINESSES For personal use only REMSAFE BENEFITS - EFFICIENCY CASE STUDY Previous Additional Increase Potential System Isolations Isolation Production Production Revenue 275 Installed 2012 Time @5,000t/h Hours Earned* 45mins 1.93Mt 385 $149m Efficiency Benefits REMSAFE can cut total
Slide 12: REMSAFE Benefits - Return on Investment
BUILDING OUR BUSINESSES For personal use only REMSAFE BENEFITS – RETURN ON INVESTMENT Number of Pre REMSAFE Isolation Time Average Annual Total production Potential Conveyor Install date Isolations to last isolation time with REMSAFE production time time saved to revenue ($A) Reference reading (min)
Slide 13: Recent Highlights
BUILDING OUR BUSINESSES For personal use only RECENT HIGHLIGHTS 9 systems commissioned since December 2015 Over 1,500 recorded isolations performed using REMSAFE to date REMSAFE systems installed with BHP Billiton, Rio Tinto and FMG Installed and commissioned first overseas application with
Slide 14: Growth Strategy
BUILDING OUR BUSINESSES For personal use only GROWTH STRATEGY REMSAFE can be used for many other applications that require methodical isolations to reduce risk from human error and improved productivity. Other industry's include Rail, Manufacturing, Oil & Gas, Industrial Processing and Utilities.
Slide 15: ORBITAL UAVE global leader in small UAV propulsion
BUILDING OUR BUSINESSES For personal use only ORBITAL UAVE is the global leader in the small unmanned aerial vehicle propulsion system market, that deliver leading endurance, reliability and power-to- weight advantages. “The Insitu-Orbital propulsion system sets a new standard for small UAV propulsi
Slide 16: ORBITAL UAVE years of experience in heavy fuel propulsion
BUILDING OUR BUSINESSES For personal use only ORBITAL UAVE has over 10 years of experience as the global leader in spark ignited heavy fuel propulsion systems ScanEagle® Aerosonde 4.7 SUAS 2002 2004 2006 2008 2010 2012 2014 2016 • Initial R&D • Barrus • Mercury JP • Polaris 4S • Various UAV • Intern
Slide 17: Leveraging UAVE expertise to other UAV classes
BUILDING OUR BUSINESSES For personal use only ORBITAL UAVE’s expertise and success in the Small UAV class can be leveraged to seamlessly and rapidly deliver propulsion systems for other UAV classes. The technology behind ORBITAL UAVE’s propulsion systems and PROPULSION associated proprietary compone
Slide 18: The UAV Market
BUILDING OUR BUSINESSES For personal use only THE UAV MARKET Global military Small UAV System production market projected to reach almost US$1.0b by 2020 Global UAV Projected Production Market $7,000 Micro Small Medium Large $6,000 Market Value (US$ millions) $5,000 $4,000 $3,000 $2,000 $1,000 $0 20
Slide 19: UAVE Benefits
BUILDING OUR BUSINESSES For personal use only UAVE BENEFITS Small Package Electronic Size Engine Control Unit High power-to-weight ratio Light weight military specification Fuel Efficient Fuel & Oil Tank Up to 40% better than System today’s conventional engine Light weight Specialised Muffler FlexDI
Slide 20: Competitive Advantage
BUILDING OUR BUSINESSES For personal use only COMPETITIVE ADVANTAGE Diesel ORBITAL UAVE External High Pressure Others/ Turbine Compression Propulsion Heaters etc. Direct Injection Experimental Ignition System Low Cost ? High Power to Weight Ratio ? Cold Start & Operation ?
Slide 21: Recent Highlights
BUILDING OUR BUSINESSES For personal use only RECENT HIGHLIGHTS Received a $12 million order from Insitu Inc., a subsidiary of The Boeing Company for UAV propulsion systems First production ORBITAL UAVE engines shipped to Insitu in May 2016 Second batch order anticipated in 3QCY16 Significan
Slide 22: Growth Strategy
BUILDING OUR BUSINESSES For personal use only GROWTH STRATEGY ORBITAL UAVE’s expertise and success in the Small UAV class can be leveraged to deliver world class propulsion systems for other UAV classes Secure long term supply agreement with Insitu Establish USA facility for engine service, su
Slide 23: Growing the Portfolio
GROWING THE PORTFOLIO For personal use only Accelerator, which was created to identify high-value business opportunities, is becoming a core Mergers and Acquisitions function of the ORBITAL Corporate department • The Corporate M&A department will focus on identifying high-growth, mid-stage, industri
Slide 24: Summary
SUMMARY For personal use only FY16 focused on building the foundations for growth Realise strong revenue growth in FY17 from REMSAFE and ORBITAL UAVE ORBITAL UAVE revenue in FY17 to grow in line with Long Term Supply Agreement expected with Insitu, a subsidiary of The Boeing Company Expand REMSAFE i
Slide 25: 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 26: 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