Orbital Corporation Ltd · ASX:OEC
Orbital — Shareholder Meeting (October 2009)
37 slides from Orbital's shareholder meeting presentation, Oct 21, 2009
Slide 1: 21st Annual General Meeting
For personal use only 21st Annual General Meeting 21st October 2009
Slide 2: Agenda
Agenda For personal use only • Introduction by Chairman • Chief Executive Officer’s Address • Formal Business • Questions and Answers Pg 2
Slide 3: Chairman's Address
For personal use only Chairman’s Address Pg 3
Slide 4: Financial Highlights
Financial Highlights For personal use only A$'000 Jun-09 Jun-08 Consulting Services Revenue 8,798 11,681 Contribution 1,767 2,406 Alternative Fuels Revenue 6,264 - Operating Profit 246 - Development Costs (985) - Contribution (739) - License and Royalties Revenue 1,115 2,684 Contribution (1,130) 771
Slide 5: CEO's Address
For personal use only CEO’s Address Pg 5
Slide 6: Overview - Orbital
Overview - Orbital For personal use only Leader in Engine Management Systems for Specialised Markets Alternative Fuels Engine Management Systems ORBITAL Orbital Consulting Services (OCS) Consulting Orbital Orbital Direct Injection Pg 6
Slide 7: Orbital Facility Overview
Orbital Facility Overview For personal use only Vehicle emissions testing facilities Vehicle/motorcycle emissions testing facilities Engine development test cells Engine development/durability test cell NVH/development test cell Heavy duty engine test cell Engine durability test cells Extreme enviro
Slide 8: Alternative Fuels – Year in brief
For personal use only Alternative Fuels – Year in brief OAGS generated profit of $246k with a turnover of $6,264k since acquisition in June 2008 Investment in next generation LPG systems - $985k 6.3 8.8 Awarded next Supply Contract for Ford 10% Australia from 2010 47.2 Installed new heavy du
Slide 9: Synerject – Year in brief
For personal use only Synerject – Year in brief Equity accounted contribution of $1,846k and dividend to Orbital of $4,577k compared to $2,357k and $958k respectively in the previous year Continental takes an additional 8% controlling interest in Synerject in exchange for US$4 million 6.3 Orbita
Slide 10: Orbital Consulting Services – Year in brief
ORBITAL Consulting Services – Year in brief Consulting Revenue of $8,798k with contribution of $1,767k For personal use only compared to $11,681k and $2,406k respectively in the previous year New marketing initiatives taken in China and South America to offset reduced work from Orbital’s traditi
Slide 11: Orbital Intellectual Property – Year in brief
ORBITAL Intellectual Property – Year in brief Intellectual Property For personal use only Revenue FY09 $1,115k vs $2,684k in the previous year Royalties are significantly lower than in previous years The year has been impacted by the global downturn in particular the marine market – US market
Slide 12: Strategy Development
For personal use only Strategy Development Pg 12
Slide 13: Who Are We?
For personal use only Who Are We? Orbital Strengths Market Demands – Engine Management – Greenhouse Gas Systems (EMS) Reduction • ECU, software, • Global warming hardware, control Leader in • CO2 • Combustion, application Engine • Emission legislation Management Systems for – Crude Oil Availability
Slide 14: New Product Development – Orbital's role
New Product Development – Orbital’s role For personal use only Market Technology Drivers/Demand Commercialisation Expertise New Product New Leading Edge Development Product on Market Technology Manufacturing Solution Expertise (Partners such as Continental, Viale, Motonics and others) Pg 14
Slide 15: Orbital Revenue Progress and Outlook
Orbital Revenue Progress and Outlook For personal use only 1995 2000 2005 2008/9 5 year look-ahead LNG Aust CNG Asia • LNG Aust. EMS S • CNG Asia America • EMS South EMS India America CONSULTING CONSULTING • EMS India LPG Retail • Retail LPG INTELLECTUAL PROPERT Y INTELLECTUAL PROPERT Y OAGS INTELLE
Slide 16: Why Alternative Fuels
For personal use only Strategy Development Why Alternative Fuels Pg 16
Slide 17: Why Alternative Fuels: Reduction in Greenhouse Gas
Why Alternative Fuels Reduction in Greenhouse Gas - Global Warming For personal use only ¾LPG up to 13% reduction in CO2 vs petrol ¾CNG up to 25% reduction on CO2 vs petrol Source: NASA (http://www.pacebutler.com/blog/global-warming-graphs/) Pg 17
Slide 18: Why Alternative Fuels: Fuel Availability
Why Alternative Fuels Fuel Availability – the future? For personal use only ¾Peak Oil – Supply vs future demand ¾Cost/barrel ¾Future Demand Outstrips Crude Oil Production/Supply Projected ¾Crude Oil costs set to be Energy driven up as supplies diminish Demand Brent Crude 140 120 100 US$/Barrel 80 60
Slide 19: Why Alternative Fuels: Fuel Costs to the User
Why Alternative Fuels Fuel Costs – to the user For personal use only ¾LPG between $600 to $1300 saving on family car fuel costs per year ¾LNG up to $80,000 for line haul truck, depending on usage Perth Fuel Prices ULP Diesel $2.00 LPG $1.75 Av. Price AU$/Litre $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.
Slide 20: Why Alternative Fuels: Supply Security
Why Alternative Fuels Supply Security - Australia Proven Reserves For personal use only ¾Crude Oil – 8 years ¾LPG – 45 years ¾Natural Gas – 66 years 120 Reserve/Production (Years) Oil 100 proven reserves / Quad kJ NG 80 NG 66 years 60 LPG 45 years Condensate 36 years 40 Crude Oil 8 years 20 0 1980 1
Slide 21: Organisation – Implementing the Strategy
For personal use only Organisation – Implementing the Strategy Pg 21
Slide 22: The Orbital Business
The Orbital Business For personal use only The Businesses INTELLECTUAL PROPERT Y Today “Base” CONSULTING Business – LPG Retail – EMS India Future – EMS S America Additions – CNG Asia Growth Strategy – LNG Australia Pg 22
Slide 23: New Potential Businesses
For personal use only New Potential Businesses Pg 23
Slide 24: LPG Retail
LPG Retail For personal use only • Product Conventional LPi Gas – LLi (Liquid LPi Injection) for Gas Systems Power Systems automotive • Market Driver FC Driveability – Emissions (Australia, 2010), operating costs • Customer Demand CO2 Vehicle Cost • Technology provider – Orbital • Manufacturing Part
Slide 25: EMS (India)
EMS (India) For personal use only • Product – EMS systems and Projected Indian Motorcycle Volume immobiliser systems for motorcycles in India 11 • Market Driver – Emissions (Bharat IV, 10 2014) – Customer demand for MIllions of Units 9 functionality • Customer Demand 8 – Indian OEM’s (Bajaj, Hero Ho
Slide 26: EMS South America (Brazil)
EMS South America – (Brazil) For personal use only • Product – EMS systems for Ethanol, CNG and LNG – Heavy duty engines for on-road & off- road vehicles, & power generation • Market Driver – Local fuel infrastructure – Operating costs • Customer Demand – OEMs: – Aftermarket: • Technology provider –
Slide 27: CNG (Asia)
CNG (Asia) For personal use only • Product – CNG systems for automotive application • Market Driver – Local fuel infrastructure, operating costs, – Greenhouse gas targets • Customer Demand – Auto OEM, public, Gov’t • Technology provider – Orbital • Manufacturing Partners – Continental Source: IANGV
Slide 28: LNG (Australia)
LNG (Australia) For personal use only • Product – LNG systems for dual fluid (diesel- C15 Diesel/LNG Dual-Fuel LNG) for heavy duty line haul transport • AU$50,000-$80,000 annual • Market Driver savings depending on – Operating cost application – Greenhouse Gas •15% greenhouse gas savings • Customer
Slide 29: Orbital Revenue Progress and Outlook
Orbital Revenue Progress and Outlook For personal use only 1995 2000 2005 2008/9 5 year look-ahead LNG Aust CNG Asia • LNG Aust. EMS S • CNG Asia America • EMS South EMS India America CONSULTING CONSULTING • EMS India LPG Retail • Retail LPG INTELLECTUAL PROPERT Y INTELLECTUAL PROPERT Y OAGS INTELLE
Slide 30: Orbital: Leader in Engine Management Systems
Orbital For personal use only Leader in Engine Management Systems for Specialised Markets 30 years experience in Engines, Combustion and Fuel and Control Systems Pg 30
Slide 31: Formal Business
For personal use only Formal Business Pg 31
Slide 32: Item – Financial Reports
Item 1 – Financial Reports For personal use only • To receive and consider the financial statements for the year ending 30th June 2009 together with the Director’s Report and the Auditor’s Report Pg 32
Slide 33: Item – Remuneration Report
Item 2 – Remuneration Report For personal use only • To adopt the Remuneration Report for the financial year ended 30 June 2009 Pg 33
Slide 34: Item – Re-election of Director
Item 3 – Re-election of Director For personal use only • That Mr W.P. Day who retires by rotation in accordance with Article 9.3 of the Company’s Constitution and, being eligible, offers himself for re-election, be elected as a Director of the Company Pg 34
Slide 35: Item – Long Term Share Plan – T. Stinson
Item 4 – Long Term Share Plan – T. Stinson For personal use only • That approval is given for all purposes under the ASX Listing Rules (including ASX Listing Rule 10.14 and exception 9 to ASX Listing Rule 7.2) for the issue of up to 6,562,500 fully paid ordinary shares in the Company, directly or in
Slide 36: Questions
For personal use only Questions Pg 36
Slide 37: Thank You
For personal use only Thank You Pg 37