Slide 1: Investor Update Presentation
Investor Update Presentation 17 October 2022
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: World leader in the design and manufacture of integrated engine systems
World leader in the design and manufacture of integrated engine systems for military drones* (* Tactical Unmanned Aerial Vehicles ‘UAVs’) © 2022 Orbital Australia Pty Ltd 3
Slide 4: At a glance
At a glance Orbital UAV (ASX : OEC) Targeting a $3 billion annual global tactical UAV defence market Heavy fuel (jet fuel) engine capability is an objective requirement within the tactical UAV market Orbital UAV’s patented technology solves the heavy fuel engine challenge for tactical UAVs Orbital U
Slide 5: What is a tactical UAV?
What is a tactical UAV? Intelligence, Surveillance, Reconnaissance Tactical UAVs are used by global defence forces for intelligence, surveillance and reconnaissance (ISR) missions • Field operated by military units • $2 - $6 million per system1 • State-of-the-art electronic payloads (e.g. day/night
Slide 6: Orbital UAV's target market
Orbital UAV’s target market Tactical UAV’s dominated by defence Primes $3B Global tactical UAV forecast production in 20221 © 2022 Orbital Australia Pty Ltd 6
Slide 7: Why heavy fuel?
Why heavy fuel? An objective requirement for allied forces THE BENEFITS JP-8 & JP-5 Safety – higher flashpoint temperature Logistics – transportation, avoids cross contamination (kerosene-based, heavy fuels) IMMEDIATE MARKET DEMAND have been the Heavy fuel is an objective requirement of the US Army’
Slide 8: Our unique product offering
Our unique product offering Industry leading performance Orbital UAV’s heavy fuel propulsion systems provide the world’s best performing UAV engines Orbital UAV Others Time between overhaul 500 hrs ~50 hrs Cold start to launch 2 min >20 min x3 U.S. FAR33.49 endurance test Yes No Image: ScanEagle3, c
Slide 9: Engine production contracts
Engine production contracts Existing engine production contracts Production Engines x 2 © 2022 Orbital Australia Pty Ltd 9
Slide 10: Production customer
Production customer Boeing Insitu – a market leader 2021 Defence Revenue One of the largest, most • Unmanned autonomous systems supporting a variety of defence, civil, and commercial applications ~$54 billion1 diversified aerospace & defence • 25 years experience companies in the world • 1,300,000 f
Slide 11: Engine development programs
Engine development programs Existing engine development to production contracts Development Programs X5 SINGAPORE DEFENCE COMPANY © 2022 Orbital Australia Pty Ltd 11
Slide 12: Engine development customers
Engine development customers Established Primes & market disruptors • Subsidiary of Textron Inc. (NYSE: TXT), a $19 billion multi-industry • Founded in 2017, transforming US & allied military capabilities with company1 advanced technology • World leader in unmanned aircraft systems and one of the la
Slide 13: Engine development opportunities
Engine development opportunities Near term engine development opportunities Opportunity Pipeline © 2022 Orbital Australia Pty Ltd 13
Slide 14: Development opportunity customers
Development opportunity customers Globally recognised defence Primes • Global leader in UAS and services • Recognised as one of the fastest growing private • Acquired Arcturus UAV in 2021 for ~$690M companies in the US in 20203 • Tactical UAS include the JUMP® 20 and Puma™ platforms • Listed in Forb
Slide 15: Building out our engine opportunity
Production / Development / Opportunity Building out our engine opportunity • Production, maintenance & overhauls continue on two Boeing Insitu engine production lines • Contracts with Textron Systems & Singapore customer have confirmed production pathways • AeroVironment, Skyways & L3 Harris represe
Slide 16: Production expansion
Production expansion Engine development adding to Orbital UAV’s production profile AUSTRALIA Expansion identified for additional development Existing facility footprint: 3,238m2 Development programs & production lines Engineering & Testing Adjoining facility in Australia: 2,125m2 (Currently sublet b
Slide 17: Diversified customer strategy
Diversified customer strategy Delivering a diversified defence customer portfolio © 2022 Orbital Australia Pty Ltd 17
Slide 18: The continued rise of UAVs
The continued rise of UAVs A critical defence capability CHANGING FACE Annual global tactical OF WARFARE UAV market • Rising border intrusions $3B • Information / data is key (ISR) • New in theatre e-warfare and precision strike capabilities • Armed forces acquiring UAVs for the first time US SPENDI
Slide 19: Tactical UAV market segments
Tactical UAV market segments Engines – a critical sub-system Integration / Mission Build Labour: 10% Management Systems: 30% UAV Bill of Materials: 10% $3Bannual global Training: 10% tactical UAV market Engines: 10% Payloads: 20% Ground Support Equipment: 10% © 2022 Orbital Australia Pty Ltd 19
Slide 20: Expanding into the $3B market
Expanding into the $3B market Executing an increased content strategy Integration / Mission Build Labour: 10% Management Systems: 30% UAV Bill of Materials: 10% Including: Power Electronic Speed $3Bannual global Training: 10% Management System Controller Harnessing tactical UAV market Flight
Slide 21: Corporate overview
Corporate overview 0.7 Share Capital As at 14 October 2022 0.6 Share Price 0.5 0.4 Fully Paid Ordinary Shares 91.9M AUD 0.3 0.2 Closing share price $0.20 0.1 0 13-Oct-21 12-Nov-21 12-Dec-21 11-Jan-22 10-Feb-22 12-Mar-22 11-Apr-22 11-May-22 10-Jun-22 10-Jul-22 09-Aug-22 08-Sep-22 08-Oct-22 Market Cap
Slide 22: Delivering superior solutions to the global UAV defence market
Delivering superior solutions to the global UAV defence market • Patented engine technology delivers significant competitive advantages • Existing suite of global defence customers • Targeting expansion within the $3B UAV market segment • Strong Federal and State Government support © 2022 Orbital Au
Slide 23: www.orbitaluav.com
ORBITAL Ready to fly..." www.orbitaluav.com in ¥
Slide 24: References
References Slide 5 1 World Military UAS Profile & Forecast 2020-21, Teal Group Corporation: Represents cost of the 4 https://www.globaldata.com/store/report/singapore-defense-market- aircraft plus a portion of the system cost, e.g. ground control station, remote video terminal, launch analysis/?_gl=