Orbital Corporation Ltd · ASX:OEC

Orbital — FY2011 Earnings Presentation

23 slides from Orbital's earnings presentation, Aug 30, 2011

  1. Slide 1: Year ended 30 June 2011 Results Presentation

    For personal use only Year ended 30 June 2011 Results Presentation August 2011 Pg 1

  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 and Corporate Snapshot

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

  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 • 2011 Highlights pg 10 • Financial summary pg 11 • Synerject pg 12 • Alternative fuels pg 15 • Consulting services pg 18 • Intellectual property pg 19 • Cashflow/Capital management

  5. Slide 5: 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 FlexDI - Alternative Fuels Integration, Development and Application Expertise Engineering Services Pg 5

  6. Slide 6: Orbital Today

    Orbital Today For personal use only Business Unit Sector Automotive (LPG), Non Auto EMS EMS (Auto, non- Non Auto EMS HD Trucks (NG) global supplier Auto), R&D Applications • LPG Supply • Supply of DI • Services to the • Royalties and – Ford and PI global engine licence fees Business – HSV Engine and

  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 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Source: Yamaha Fact Re

  8. Slide 8: Market Drivers

    Market Drivers For personal use only Ford Falcon EcoLPi ‐ Fuel Costs per 100 km Tapis Crude $16 160 $14 Crude Oil Cost 140 Fuel Costs to $12 Cost AU$/100 km 120 Customer US$/Barrel $10 100 $8 80 $6 60 40 $4 20 $2 0 $0 Falcon XT GM GM Golf GTI Golf Falcon Golf Golf Commodore Commodore (155 kW) Comfor

  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 CO2 savings LPG Automotive Liquid LPG Up to 14% Infrastructure Automo

  10. Slide 10: 2011 – Highlights

    2011 – Highlights • Statutory net profit after tax of $1.76 million compared to a profit of $4.52 million last year. For personal use only • Underlying profit after tax of $0.16 million compared to a loss of $2.31 million last year. • Synerject increased revenue to US$120.83 million (+34%) and profi

  11. Slide 11: Financial Summary - Year ended June 2011

    Financial Summary - Year ended 30 June 2011 June 2011 June 2010 For personal use only #039;000 #039;000 Key Points Alternative Fuels Revenue 5,847 6,203 Contribution (757) (1,727) • $1.76m statutory profit. Consulting Services Revenue 9,492 9,621 Contribution 161 1,031 • $2.47m improvement in underlying r

  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. 13th year of operation • Headquarters in Virginia, USA; Facilities in USA, China, France, Offices in Italy, Taiwan • US$120.8m revenue i

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

    Synerject – Non-Auto EMS Supplier Key Points For personal use only June 2011 June 2010 • Synerject increased revenue by 34% to US$120.8 Synerject - 100% (USGAAP) US#039;000 US#039;000 million, with a corresponding increase in profit Revenue 120,834 90,375 after tax. Profit after tax 6,500 4,744 Operating

  14. Slide 14: Synerject – Non-Auto EMS Supplier: Revenue, Profit, Cash Flow

    Synerject – Non-Auto EMS Supplier Synerject Revenue For personal use only 150 Key Points 125 US#039;m 100 • 34% sales growth, notwithstanding that 75 many of Synerject’s markets are still 50 25 challenged by the aftermath of the global - financial crisis. FY07 FY08 FY09 FY10 FY11 1st Half Full Year • I

  15. Slide 15: Alternative Fuels

    Alternative Fuels Alternative Fuels – Market Driven by cost, CO2 reduction and Fuel Security For personal use only • OAGS – Develops and Supplies Liquid LPG systems to the auto industry • OCS - Develops and Supplies Dual Fuel LNG Systems for truck industry; Engine System Development for Ethanol and

  16. Slide 16: Alternative Fuels – Key Points

    Alternative Fuels Key Points For personal use only June 2011 June 2010 • Orbital Autogas Systems (OAGS) has developed #039;000 #039;000 and supplies “Liquid” LPG injection systems to Ford Australia, Holden Special Vehicles (HSV) Revenue 5,847 6,203 and to the aftermarket. Contribution (757) (1,727) • OAGS

  17. Slide 17: Alternative Fuels – Sprint Gas Australia (SGA)

    Alternative Fuels – Sprint Gas Australia (SGA) Key Points For personal use only Sprint Gas May 2011 • Orbital acquired 55% of LPG fuel systems Fair value at acquisition #039;000 aftermarket distributor, SGA in May 2011. Cash 420 • A$2.2M initial investment by Orbital, including Receivables 1,319 $0.2m

  18. Slide 18: Orbital Consulting Services (OCS)

    Orbital Consulting Services (OCS) For personal use only June 2011 June 2010 Key Points #039;000 #039;000 • Revenue for the year was marginally lower than last year. Revenue 9,492 9,621 Contribution 161 1,031 • The strong Australian dollar has increased the cost of OCS services to overseas customers and ma

  19. Slide 19: Intellectual Property (IP)

    Intellectual Property (IP) For personal use only Key Points June 2011 June 2010 #039;000 #039;000 • Orbital earns license fees and royalties from EMS utilising its FlexDITM systems and Revenue 1,081 1,199 technology. Contribution 610 732 • The royalty bearing products today are in the marine, recreational

  20. Slide 20: Cashflow and Capital Management

    Cashflow and Capital Management Cash Flow June 2011 June 2010 For personal use only #039;000 #039;000 Operating cash flow (1,792) (5,049) Key points Synerject dividend 1,208 677 (584) (4,372) Sale of Balcatta property 8,557 0 • $3.8 million improvement in operating Acquisition of Sprint Gas (1,780) 0 cash

  21. Slide 21: Balance Sheet

    Balance Sheet For personal use only Key points June 2011 June 2010 #039;000 #039;000 Cash and Term Deposits 6,874 3,608 • Land and Buildings sold in February 2011 Receivables 6,841 5,084 for $8.65 million. Inventory 4,388 3,722 Current Assets 18,103 12,414 • Minimal interest bearing debt. Synerject Invest

  22. Slide 22: 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

  23. Slide 23: Thank You

    For personal use only Thank You Orbital Corporation Ltd 4 Whipple St, Balcatta West Australia 6021 Ph +61 8 94412311 Fax +61 8 94412345 Web: //www.orbitalcorp.com.au Pg 23

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