Orbital Corporation Ltd · ASX:OEC
Orbital — Investor Presentation (February 2020)
16 slides from Orbital's investor presentation, Feb 3, 2020
Slide 1: Investor Presentation
Investor Presentation February 2020
Slide 2: Cautionary statement
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, uncertainties and other factor
Slide 3: What we do
What we do World leader in the design and manufacture of integrated engine systems for tactical unmanned aerial vehicles (UAVs) © 2020 Orbital Australia Pty Ltd Image shows Insitu’s ScanEagle3 and Orbital UAV’s propulsion system 3
Slide 4: Who we are
Who we are ASX listed company (ASX: OEC) Revenue generating manufacturer – on track for FY20 full-year profitability Contract with Boeing/ Insitu Inc. to supply up to $350M of military drone engines Two engine models shipping to Boeing/ Insitu Inc. Negotiations with other global defence primes under
Slide 5: What is a tactical UAV
What is a tactical UAV Tactical UAVs are used by global defence forces for gathering intelligence, surveillance and reconnaissance • Field operated by military units • Carries state-of-the-art electronic payloads (e.g. day/night cameras) • Worth $3.5 - $6 million per system* • Wingspan up to 5 m • F
Slide 6: UAV Defence Market
UAV Defence Market UAV production by region* 6552 $ millions 2017 Worldwide military UAV production 2026 $128 billion* 3756 2613 2422 2269 2283 Worldwide tactical UAV production 1063 $21.7 billion* 906 58 215 USA DoD UAV production USA Asia-Pacific Europe Country/region Mid-East Other $2.6 billion i
Slide 7: Tactical UAV landscape
Tactical UAV landscape Tactical UAV $21.7Bn* © 2020 Orbital Australia Pty Ltd * UAS Market Outlook with Special Focus on Tactical Systems, Teal Group Corporation | For the years 2017-2026 7
Slide 8: Existing Clients
Existing Clients Market Leaders Market dominated by two players Long Term Agreement (LTA) Total sales to up to $350M over five years 2018-2023 date ~$22M © 2020 Orbital Australia Pty Ltd 8
Slide 9: Supporting Insitu's entire UAV fleet
Supporting Insitu’s entire UAV fleet Long Term Agreement 5 years (from October 2018) ScanEagle2 $120-350M Insitu’s versatile and agile UAV family Integrator™ ScanEagle® ScanEagle3 Two engines now in production © 2020 Orbital Australia Pty Ltd 9
Slide 10: Why Orbital UAV?
Why Orbital UAV? Heavy fuel 2-stroke IP and know-how 40 years developing innovative engine solutions 15 years as a global leader in spark ignited heavy fuel propulsion © 2020 Orbital Australia Pty Ltd 10
Slide 11: Delivering to Defence
Delivering to Defence Orbital UAV’s heavy fuel propulsion systems meet the US Dept of Defence’s ‘one fuel’ policy and high reliability requirements of front line personnel Orbital UAV All Others Time between overhaul 500 hrs ~50 hrs Cold start to launch 2 min >20 min x3 U.S. FAR33.49 endurance test
Slide 12: What we've delivered
What we’ve delivered Jan 2020 Jan 2020 HY FY20 prelim revenue: Aug 2019 Second engine $11.4M* shipping FY19 revenue: under LTA May 2019 $15.3M Oct 2018 First engine FY20 revenue: shipping Expanded $25-$35M Sep 2018 under LTA LTA with US facility Boeing/ Insitu opening September 2018 January 2020 *Un
Slide 13: Where we're going…
Where we’re going… New Customer Opportunities Capture increasing Defence market Supply Chain Efficiency Quality, cost, on time delivery Hood River United States End User Engagement Direct access to US DoD Perth Australia © 2020 Orbital Australia Pty Ltd 13
Slide 14: Board of Directors
Board of Directors John Welborn Todd Alder Steve Gallagher Kyle Abbott Chairman Managing Director Non-Executive Non-Executive Non-Executive Director & CEO Director Director - Appointed Chairman March 2015 - Appointed CEO & MD in 2017 - Board member since 2017 - Experienced aerospace and - MD & CEO o
Slide 15: Corporate overview
Corporate overview Capital Structure Investment Highlights Fully Paid Ordinary Shares 77M • Half-year revenue: $11.4M* Market Cap @ $0.34 (28 Jan ‘20) $27M • On track for full-year profitability • Strong cash balance Cash & Receivables (31 Dec ‘19) $13.5M* • Tight capital structure Revenue FY19 $15.
Slide 16: www.orbitaluav.com
™ www.orbitaluav.com Todd Alder Ian Donabie Managing Director / CEO Corporate Communications Manager +61 8 9441 2311 +61 8 9441 2165 contact@orbitalcorp.com.au idonabie@orbitalcorp.com.au