Orbital Corporation Ltd · ASX:OEC
Orbital — Shareholder Meeting (October 2010)
30 slides from Orbital's shareholder meeting presentation, Oct 28, 2010
Slide 1: 22nd Annual General Meeting
Annual General Meeting 28th October 2010 For personal use only Orbital Corporation Ltd 22nd Annual General Meeting ORBITAL Pg 1 Clean Engine Technology
Slide 2: Agenda
Agenda For personal use only • Introduction by Chairman • Chief Executive Officer’s Address • Formal Business • Questions and Answers ORBITAL Pg 2 Clean Engine Technology
Slide 3: Chairman's Address
Annual General Meeting 28th October 2010 For personal use only Chairman’s Address ORBITAL Pg 3 Clean Engine Technology
Slide 4: Financial Highlights
Financial Highlights FY10 financial highlights: For personal use only A$'000 FY10 FY09 Consulting Services Revenue 9,621 8,798 Contribution 1,031 319 Alternative Fuels Revenue 6,203 6,264 Contribution ( 1,727) ( 739) Licences and royalties Revenue 1,199 1,115 Contribution 37 ( 1,130) Total Revenue 1
Slide 5: CEO's Address
Annual General Meeting 27th October 2010 For personal use only CEO’s Address ORBITAL Pg 5 Clean Engine Technology
Slide 6: Year in Brief – Key Points
Year in Brief – Key Points • 2nd Half profitability For personal use only • Continuous improvement – Efficiency gains • OAGS – Ford production gap – Liquid LPG Systems aftermarket sales – HSV flagship vehicle • WA Government loan restructure • Actively pursuing Alternative Fuels Business Strategy –
Slide 7: Alternative Fuels – Year in brief
For personal use only Alternative Fuels – Year in brief OAGS generated revenue of $6,203k, with a loss of $1,727k Australian LPG system aftermarket subdued 6.2 this year due to low petrol prices, reduced rebate and future excise introduction 10% $’m sales Increased investment for next generati
Slide 8: Synerject – Year in brief
For personal use only Synerject – Year in brief Revenue of US$90,375k compared to US$74,635k in the previous year Profit after tax of US$4,744k up 30% from US$3,662k 72% Market recovery in marine and recreational 43.4 product in North America in H2 Orbital Share of Synerject Sales $’m Taiwan
Slide 9: Orbital Consulting Services – Year in brief
ORBITAL Consulting Services – Year in brief Consulting Revenue of $9,621k, up 9.4% from $8,798k For personal use only Contribution of $1,031k, compared to $319k in previous year Key Activities: 9.6 Mitchell Corp LNG Program 16% HD Test Facility European Advanced Engineering contracts $’m
Slide 10: Orbital Intellectual Property – Year in brief
ORBITAL Intellectual Property – Year in brief Intellectual Property For personal use only Revenue $1,199k, up 7.5% from $1,115k Contribution of $37k compared to $1,130k loss in previous year 2% North American marine market showed improvement in H2, however still well down on $’m sales pre glob
Slide 11: Lessons from 2010
Lessons from 2010 For personal use only • Our core businesses (Engineering and Licensing) offer minimal revenue growth in short term • EMS for Alternative Fuels – Growth Market – Matches our skillset, partners and increasing market demand • Orbital needs growth – Acquisition or Partnership will requ
Slide 12: Orbital's Market Update
Orbital’s Market Update For personal use only • LPG Market in Australia remains subdued • Global Natural Gas auto market continues to grow • Ethanol market good in Brazil, delays in requirement for Direct Injection application • Improvement in recreational and marine market, but well below pre GFC d
Slide 13: Strategy Development
For personal use only Strategy Development ORBITAL Pg 13 Clean Engine Technology
Slide 14: Orbital's Vision
Orbital’s Vision For personal use only Components Combustion Control Systems and Software Leader in Engine Management Systems for Alternative Fuels and Specialised Markets Engine Testing and Design Fuel Systems Electronic Hardware Design ORBITAL Pg 14 Clean Engine Technology
Slide 15: Alternative Fuels – Growth Potential
Alternative Fuels – Growth Potential Fuel Costs $2.00 ULP For personal use only Diesel $1.80 LPG $1.60 $1.40 Cost AU$/litre $1.20 $1.00 $0.80 ¾ Cost to User $0.60 $0.40 $0.20 $0.00 1 3 5 7 9 1 -0 -0 -0 -0 -0 -1 ec ec ec ec ec ec D D D D D D Source: http://www.fuelwatch.wa.gov.au/prices/dsp_hist_avg.
Slide 16: Orbital's Value in Alternative Fuel EMS market
Orbital’s Value in Alternative Fuel EMS market For personal use only New Products Orbital’s Value ¾ EMS Product Track Record Polaris JPMV800 Dongan Minivan ¾ Experience TRD Aurion Bajaj Autorickshaw ¾ Technology V8 OEM Auto Applications Kymco KDI ¾ Market Scooter M1 4S ECU SeaDoo PWC ¾ Supply base T
Slide 17: Common ECU and Software Platform Strategy
Common ECU and Software Platform Strategy Gasoline, NG, LPG, Ethanol, Heavy Fuels For personal use only Gasoline, NG, LPG, Ethanol LNG Direct Manifold Injection Intake Injection Injection ECU and Software Strategy Inlet ¾ Hardware, sensors Exhaust ¾ Operating System ¾ Base calibration/maps Inlet Man
Slide 18: Implementing the Strategy
For personal use only Implementing the Strategy ORBITAL Pg 18 Clean Engine Technology
Slide 19: Implementation - Strategy
Implementation - Strategy For personal use only • Partnerships in EMS – India EMS – S America EMS – Asia NG • New Business Generation – LNG Heavy Duty – UAV – Automotive LPG & CNG ORBITAL Pg 19 Clean Engine Technology
Slide 20: Target Market Sectors
Target Market Sectors For personal use only Sector Automotive Heavy Duty Non Auto Consulting IP Transport EMS Services Revenue Applications Business Unit • Supplier of LPG • Services to the Vapouriser • Developer of Dual global engine • IP for existing systems Fuel Systems for • Supplier of and vehi
Slide 21: Orbital EMS Product Planning Matrix
Orbital EMS Product Planning Matrix Heavy Duty For personal use only PI Gasoline/NG DI Gasoline DI Gasoline Liquid LPG DI LPG, CNG Pass. Car CNG Truck LNG 2W and 3W Motorcycle, 3W Recreational Pass Car Pass Car (Dual Fuel) Orbital Orbital Orbital Orbital Orbital Orbital Orbital System Integration In
Slide 22: Delivering on the Strategy
Delivering on the Strategy For personal use only • Markets 9 • Products 9 • Skill base and facilities 9 • Partners or acquisitions (speed to market) 9 • Funding 9 ORBITAL Pg 22 Clean Engine Technology
Slide 23: Formal Business
Annual General Meeting 27th October 2010 For personal use only Formal Business ORBITAL Pg 23 Clean Engine Technology
Slide 24: Item – Financial Reports
Item 2 – Financial Reports For personal use only • To receive and consider the financial statements for the year ending 30th June 2010 together with the Director’s Report and the Auditor’s Report ORBITAL Pg 24 Clean Engine Technology
Slide 25: Item – Remuneration Report
Item 3 – Remuneration Report For personal use only • To adopt the Remuneration Report for the financial year ended 30 June 2010 ORBITAL Pg 25 Clean Engine Technology
Slide 26: Item – Re-election of Director
Item 4 – Re-election of Director For personal use only • That Dr V. Braach-Maksvytis who retires by rotation in accordance with Article 9.3 of the Company’s Constitution and, being eligible, offers herself for re-election, be elected as a Director of the Company ORBITAL Pg 26 Clean Engine Technology
Slide 27: Item – Long Term Share Plan – T. Stinson
Item 5 – Long Term Share Plan – T. Stinson For personal use only • That approval is given for all purposes (including ASX Listing Rule 10.14 and exception 9 to ASX Listing Rule 7.2) for the issue of up to 8,750,000 fully paid ordinary shares in the Company, directly or indirectly, to Mr T D Stinson
Slide 28: Item – Consolidation of Shares
Item 6 – Consolidation of Shares For personal use only • That for the purposes of section 254H of the Corporations Act 2001 (Cwlth), ASX Listing Rule 7.20 and for all other purposes, the issued capital of the Company be consolidated on the basis that every ten shares be consolidated into one share,
Slide 29: Questions
Annual General Meeting 27th October 2010 For personal use only Questions ORBITAL Pg 29 Clean Engine Technology
Slide 30: Thank You
Annual General Meeting 27th October 2010 For personal use only Thank You ORBITAL Pg 30 Clean Engine Technology