Orbital Corporation Ltd · ASX:OEC

Orbital — H1 FY2011 Earnings Presentation

22 slides from Orbital's earnings presentation, Mar 15, 2011

  1. Slide 1: 1st Half FY2011 Results Presentation

    For personal use only 1st Half FY2011 Results Presentation March 2011

  2. Slide 2: Disclaimer

    Disclaimer 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, uncertainties and

  3. Slide 3: Key Messages

    Key Messages For personal use only • Strategy – Leading supplier of Engine Management Corporate Snapshot Systems (EMS), focusing on alternative fuels. • Headquarters Perth; Facilities in Perth, Sydney; Offices in USA and China. • Assumption – Crude oil price will rise. • ASX: “OEC” – market capitali

  4. Slide 4: Contents

    Contents For personal use only • Vision pg 5 • What we do – by Business Segment pg 6 • Markets and market drivers pg 7 • Half year highlights pg 10 • Half Year - Financial summary pg 11 • Synerject pg 12 • Alternative fuels pg 15 • Consulting services pg 17 • Intellectual property pg 18 • Cashflow/C

  5. Slide 5: Orbital's Vision

    Orbital’s Vision For personal use only “Leader in Specialised Engine Systems” Small Engines Transport Mining Alcohol LPG CNG/LNG Gasoline HCNG Kerosene Diesel Hydrogen FlexDITM - Alternative Fuels Integration, Development and Application Expertise Engineering Services Pg 5

  6. Slide 6: What we do – by Business Segment

    What we do – by Business Segment For personal use only Business Alternative Unit Fuels Sector Automotive (LPG), EMS (Auto, non- Non Auto EMS Non Auto EMS HD Trucks (NG) Auto), R&D global supplier Applications • Developer and • Services to the global • Supplier of DI • Royalties and supplier of Liqui

  7. Slide 7: Orbital's Potential Markets

    Orbital’s Potential Markets For personal use only Global Motorcycle Market Aust. HD Truck Fleet* * Articulated, > 60 tonne GCM (Gross Combined Mass) 60 50 50 40 Units (Millions) Units ('000's) 40 30 30 20 20 10 10 0 0 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Source: Yamaha Fact Re

  8. Slide 8: Market Drivers

    Market Drivers only Fuel Costs Brent Crude Spot Price ULP $2.00 Diesel $150 Crude Oil Cost $1.80 Costs to LPG $1.60 Customer US$/Barrel Cost AU$/litre $1.40 $100 $1.20 use $1.00 $0.80 $50 $0.60 For personalFuel $0.40 $0.20 $0 $0.00 7 9 1 3 5 7 9 1 199 199 200 200 200 200 200 201 c, c, c, c, c, c, c,

  9. Slide 9: Changing Attitude to Alternative Fuels

    Changing Attitude to Alternative Fuels For personal use only • Fuel/Crude Oil price drives market • Fuel Security • Government policy changes – Alternative Fuels – lower CO2 • LPG infrastructure • LNG infrastructure in development LPG CO2 savings Infrastructure Automotive Liquid LPG Up to 13% Automo

  10. Slide 10: Half Year Highlights

    Half Year Highlights For personal use only • Net profit after tax of $29k - a $2.7 million improvement on the result for the same period last year. • Synerject increased sales to US$57 million (+36%) and profit after tax to US$2.6 million (+203%) . • Positive operating cashflow (including Synerject

  11. Slide 11: Financial Summary

    Financial Summary Half Year ended 31 December 2010 For personal use only Dec 2010 Dec 2009 Key Points #039;000 #039;000 Alternative Fuels Revenue 2,717 2,912 • Return to profitability. Contribution (396) (920) Consulting Services Revenue 4,202 4,526 Contribution 36 (12) • $2.7m improvement in result Licen

  12. Slide 12: Synerject – Non-Auto EMS Supplier

    Synerject – Non-Auto EMS Supplier For personal use only 42:58 joint venture of Orbital and Continental Automotive • Largest global EMS supplier in non auto market. 12th year of operation • Headquarters in Virginia, USA; Facilities in USA, China, France, Offices in Italy, Taiwan • US$90.4m revenue in

  13. Slide 13: Synerject – Non-Auto EMS Supplier

    Synerject – Non-Auto EMS Supplier Key Points Dec 2010 Dec 2009 For personal use only US#039;000 US#039;000 • 36% sales growth, notwithstanding that many of Synerject’s markets are still challenged by the Revenue 56,608 41,584 aftermath of the global financial crisis. Profit after tax 849 2,573 Operating c

  14. Slide 14: Synerject – Non-Auto EMS Supplier

    Synerject – Non-Auto EMS Supplier For personal use only Synerject Revenue 100,000 Key Points 75,000 US$000's • 36% sales growth, notwithstanding that 50,000 many of Synerject’s markets are still 25,000 challenged by the aftermath of the global - financial crisis. FY07 FY08 FY09 FY10 FY11 1st Half Fu

  15. Slide 15: Alternative Fuels

    Alternative Fuels For personal use only Alternative Fuels – Market Driven by cost, CO2 reduction and Fuel Security • OAGS - Developer and Supplier of Liquid LPG systems to the auto industry • OCS - Developer and supplier of Dual Fuel LNG Systems for truck industry • OCS - Engine System development f

  16. Slide 16: Alternative Fuels - Orbital AutoGas Systems (OAGS)

    Alternative Fuels - Orbital AutoGas Systems (OAGS) For personal use only Key Points • Orbital Autogas Systems (OAGS) has Dec 2010 Dec 2009 developed and supplies Liquid Petroleum Gas (LPG) systems to Ford Australia, Holden #039;000 #039;000 Special Vehicles (HSV) and to the aftermarket. • The aftermarket

  17. Slide 17: Orbital Consulting Services (OCS)

    Orbital Consulting Services (OCS) For personal use only Key Points Dec 2010 Dec 2009 • Revenue for the first half was 7% lower than the previous corresponding period. #039;000 #039;000 • Cost control and project efficiencies generated a break even segment result Revenue 4,202 4,526 similar to last year. C

  18. Slide 18: Intellectual Property (IP)

    Intellectual Property (IP) For personal use only Key Points Dec 2010 Dec 2009 • Orbital earns license fees and royalties from EMS utilising its FlexDITM systems and #039;000 #039;000 technology. • The royalty bearing products today are in the Revenue 463 432 marine, recreational and scooter/motorcycle Con

  19. Slide 19: Cashflow and Capital Management

    Cashflow and Capital Management For personal use only Cashflow Dec 2010 Dec 2009 #039;m #039;m Key points Operating cash flow (0.4) (2.0) • Positive operating cashflow (including - Synerject dividend 0.7 0.5 Synerject dividend). Capex and Development costs (0.4) (1.7) Financing cash flow (1.5) (0.6) • $1.

  20. Slide 20: Balance Sheet

    Balance Sheet For personal use only Dec 2010 June 2010 Key points #039;m #039;m Cash 2.0 3.6 • Minimal interest bearing debt. Receivables 4.8 5.1 Inventory 2.8 3.7 • West Australian Government Loan Current Assets 9.6 12.4 – Restructured February 2010 Synerject Investment 10.9 11.6 – Term – 2010 to 2025. –

  21. Slide 21: Key Messages and Outlook

    Key Messages and Outlook For personal use only • The strategy to invest in specialist EMS, and particularly alternative fuel applications, is supported by the long term pressure on crude oil price. • Improving market place for Orbital’s and Synerject’s products. • OAGS will see a significant increas

  22. Slide 22: Thank You

    For personal use only Thank You Pg 22

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