Orbital Corporation Ltd · ASX:OEC
Orbital — Shareholder Meeting (November 2016)
27 slides from Orbital's shareholder meeting presentation, Nov 7, 2016
Slide 1: 2016 Annual General Meeting - CEO Presentation
For personal use only 2016 Annual General Meeting - CEO Presentation 7th November 2016
Slide 2: ORBITAL is an innovative industrial technology company
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 vehicle sectors 2
Slide 3: Building Our Businesses
Building Our Businesses For personal use only ORBITAL currently consists of two core businesses, each positioned for rapid growth: Unmanned Vehicles Orbital UAVE develops and supplies state of the art propulsion systems for unmanned aerial vehicles Safety and Productivity Minimising isolation downti
Slide 4: Corporate Overview
Corporate Overview For personal use only SHAREHOLDERS SHARE PRICE2 JP Morgan Nominees Australia Limited 31.6% National Nominees Limited 3.6% 1.2 Mulloway Pty Ltd 3.5% 1 Annapurna Pty Ltd 3.4% Board and Management 6.7% 0.8 CAPITAL STRUCTURE (OEC.AX) 0.6 Share Price (3 Nov 2016) $0.92 Fully Paid Ordin
Slide 5: Business Highlights
Business Highlights For personal use only Orbital 30 June 2016 Highlights: Profit after tax of $1.3 million from revenue of $11.7 million Cash balance of $24.9 million Sale of interest in Synerject for US$17.8 million (A$24.2 million) UAVE First $12 million production order in August 201
Slide 6: Strategy for Rapid Growth
Strategy for Rapid Growth For personal use only AMBITION TRANSFORM Australian company which is the leader in worldwide industrial innovation CORE Divest interest in Achieve $100m pa legacy businesses revenue for both Innovation & Strengthen ORBITAL ORBITAL UAVE & commercialisation UAVE and
Slide 7: Orbital UAVE global leader in small UAV propulsion
For personal use only ORBITAL UAVE is the global leader in the small unmanned aerial vehicle propulsion system market; delivering leading endurance, reliability and power-to-weight advantages.
Slide 8: The Business
The Business For personal use only Propulsion systems, engines and ancillaries for unmanned aircraft U - Unmanned A - Aerial V - Vehicle E – Engines Design, development, validation, manufacturing and supply of UAVE’s heavy fuel engines, engine management systems and fuel systems Repair
Slide 9: Setting New Industry Benchmarks
Setting New Industry Benchmarks For personal use only First of its kind First engine designed specifically for Small UAV application – clean sheet of paper design, class leading performance, reliability and repairability Endurance benchmark The first heavy fuel engine in its class to success
Slide 10: Recent Highlights
Recent Highlights For personal use only May 2016 UAVE at AUVSI displayed by Insitu – a key global Unmanned vehicle exhibition – First production engines shipped to Insitu Insitu establishes their Commercial Business Unit to service the growing commercial UAV market Insitu Pacific announce
Slide 11: UAVE Today
UAVE Today For personal use only Insitu Program Thousands of hours of successful bench testing Hundreds of hours of successful flight testing Delivering first $12m Insitu order Original target to complete by end of 2016 CY delayed, expected to continue into Q1 2017 due to component supply
Slide 12: Market Opportunities
Market Opportunities For personal use only Expand product portfolio with UAV Propulsion System existing customers Market Projection1 $2,000 $1,800 Tactical UAV (TUAV) $1,600 $1,400 VTOL market Develop rotary engine solutions for Vertical US$ MILLIONS $1,200 Take Off & Landing $1,000 ROTARY $80
Slide 13: Next Steps
Next Steps For personal use only Deliver Fulfil existing production contracts with Insitu and others Execute Long term supply agreement with Insitu, expected by end of this calendar year Leverage Use existing Insitu business as leverage to expand market into other UAV customers and classes
Slide 14: REMSAFE patented modular isolation system
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%
Slide 15: The Business
The Business For personal use only Remote Isolation Systems for any high or low voltage application In mining, distances can be significant Power Room REMSAFE Isolate Electrical Power Field Isolation Station 15
Slide 16: Key Benefits
Key Benefits For personal use only SAFETY PRODUCTIVITY Eliminates exposure of workers to Cut isolation downtime by up to arc flash and includes failsafe to 97% and provides significant ensure isolation is maintained cost savings RETURN ON TAILORED INVESTMENT REMSAFE systems are tailored Investment b
Slide 17: Setting New Industry Benchmarks
Setting New Industry Benchmarks For personal use only Other Remote Isolation Feature REMSAFE Systems SIL (Safety Integrity Level) Rated Components SIL Rated System Compliance with internationally recognised safety standards Tailored to meet site based Isolation procedures 17
Slide 18: Recent Highlights
Recent Highlights For personal use only FY 2016 Commissioned 8 REMSAFE systems in Pilbara since December 2015 June 2016 Installed and commissioned first international REMSAFE system at Zibulo, South Africa, for Anglo American. This was also first system for coal Rental finance option devel
Slide 19: Opportunities
Opportunities For personal use only Mining – Conveyors, Dumpers • Australia alone is a $1.7b critical bulk handling market, $1.3 b from conveyers alone • Australia represents only around 15% of the global mining bulk handling equipment Rail – Rail Switches, high voltage electric power, tight time sc
Slide 20: REMSAFE Today
REMSAFE Today For personal use only Recent Installations Recently installed systems currently under evaluation in the Pilbara, demonstration of success to customers leads to new orders Market interest growing, Significant number of proposals issued to multiple customers across Australia Ne
Slide 21: Next Steps
Next Steps For personal use only Securing strategic alliances Eaton – a global technology leader in power management systems Collaboration agreement underway with OEM system provider Establishing marketing channels with major global suppliers Maximise mining sector penetration Roll out a
Slide 22: Mergers & Acquisitions
For personal use only Mergers & Acquisitions 22
Slide 23: ORBITAL Mergers & Acquisitions
ORBITAL Mergers & Acquisitions For personal use only Identifying high growth, mid stage, industrial technology opportunities Targeting bolt-on and adjacent acquisitions to expand and compliment Orbital UAVE and REMSAFE businesses Expand into new industrial technology sectors to diversify the O
Slide 24: Investment Focus
ORBITAL Mergers & Acquisitions For personal use only Investment Focus ORBITAL is focused on investing in and growing businesses that are in the product commercialisation and early operations stage: Product Concept & Product Commercialisation & Expansion Realise full potential Development Develop & C
Slide 25: Summary
Summary For personal use only Orbital Group FY16 focused on building UAVE and REMSAFE Established dedicated Orbital M&A team and processes FY17 - Orbital pursues its aggressive growth strategy Orbital UAVE ORBITAL UAVE production start, two $12 million orders to date Targeting long ter
Slide 26: 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 27: 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 Managing Director: Terry Stinson | Telephone: +61 (8) 9441 2311