Slide 1: Investor Presentation FY22 Half-Year Financial Results
Investor Presentation FY22 Half-Year Financial Results 25 February 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 integrated engine systems for military drones
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: H1 in review
H1 in review Key outcomes July-December 2021 Revenue of $8.9M underpinned by existing engine production lines & development programs Other income of $2.3M driven by delivery of operational milestones aligned to WA Government loan repayment offsets Completion of $6.4M Renounceable Entitlement Offer N
Slide 5: FY22 Half-Year Financials
FY22 Half-Year Financials © 2022 Orbital Australia Pty Ltd 5
Slide 6: Profit & Loss
Profit & Loss For the half-year ended 31 December 2021 Commentary Underlying Profit & Loss FY22 H1 FY21 H1 • H1 revenue of $8.9M, impacted by Boeing-Insitu volume downgrades and delays in production of engine models 2 & 3 Revenue $8.9M $19.0M • Gross margin of 40%, in line with corresponding period
Slide 7: Balance sheet
Balance sheet For the half-year ended 31 December 2021 Commentary 31 Dec 2021 30 Jun 2021 Inventory $14.1M $12.8M • Inventory increase of $1.3M due to materials purchased Trade & other receivables $3.4M $4.8M for Boeing-Insitu 3rd engine model production of $1M Trade & other payables ($2.3M) ($1.7M)
Slide 8: Cash flows
Cash flows For the half-year ended 31 December 2021 Commentary FY22 H1 FY21 H1 • H1 net cash outflows from operating activities Net cash from operating activities ($3.2M) ($5.0M) of $3.2M includes: • Inventory purchases increase to support production volumes; and Net cash from investing activities (
Slide 9: Corporate overview
Corporate overview Share Capital As at 24 February 2022 Our FY22 Focus • Continue to diversify our customer base Fully Paid Ordinary Shares 90.9M • Boeing-Insitu 3rd engine program recovery • WA Government loan offset milestones Closing share price $0.21 • Deliver ongoing cash flow efficiencies Mark
Slide 10: Outlook & Growth Strategy
Outlook & Growth Strategy © 2022 Orbital Australia Pty Ltd 10
Slide 11: Market forecast
Market forecast Continued growth • World UAS production forecast to be over US$32B by 2029 • World military UAS production in 2022 forecast to be ~US$7.5B • Civil government and commercial drone markets continue to show rapid growth © 2022 Orbital Australia Pty Ltd Source: World Military UAV Profile
Slide 12: Tactical UAV market
Tactical UAV market Established Primes & disruptors Worldwide tactical UAV production 2020 – 20291 US$15.7B Addressable Propulsion System Market estimated at ~15% Worldwide tactical UAV production US$210M p.a. in 20201 US$1.4B 1 Source: World Military UAV Profile & Forecast 2020-21, Teal Group Corpo
Slide 13: Customer portfolio
Customer portfolio Defence Primes & new entrants March 2020 Engine design & • Long Term Agreement SINGAPORE development Signed in 2016 • Expanded in 2018 DEFENCE contract with one of • Primary Supplier in 2020 COMPANY Singapore’s largest defence companies • Flight critical October 2021 components si
Slide 14: Boeing-Insitu
Boeing-Insitu Status of the Long Term Agreement Engine 1 • Volumes confirmed through to end of calendar year 1. • Engine build activities transferred to Australia during H1 Engine 2 • Volumes confirmed through to end of calendar year • Development program terminated in February 2022 Engine 3 • Orbit
Slide 15: Customer programs
Customer programs 2022 status & milestones Status 2022 milestone Continuous production 2 x engine models of engines 1 & 2; Outcome of in production 4th engine model proposal Program 1: On track Delivery of pre-production Prototype delivered for evaluation engine models and flight testing in 2021 Del
Slide 16: Future market opportunities
Future market opportunities Major tactical UAV programs United States Army • Replacement of RQ-7B Shadow Future Tactical UAS Program • Requirements to include: • FTUAS program remains • Vertical take-off and landing largest global Defence • Runway-independent opportunity to develop • Reduced acousti
Slide 17: Our unique service offering
Our unique service offering Heavy fuel engine capability an objective requirement Tactical UAV Image: ScanEagle3, courtesy Insitu Inc. Fully assembled and mission ready propulsion systems Orbital UAV Others Time between overhaul 500 hrs ~50 hrs Cold start to launch 2 min >20 min x3 U.S. FAR33.49 end
Slide 18: FY22 January - June
FY22 January - June Objectives Achieving production targets for Boeing-Insitu engine models 1 & 2 Meeting program development milestones for Textron Systems, Singapore & Skyways Targeting additional national & global customer contracts Realise WA Government loan offset milestones Deliver 2nd half ne
Slide 19: Growth outlook
Growth outlook Orbital UAV’s unique differentiators Superior engine technology, design & production solutions Technology highly relevant to the UAV market’s growing demand for longer duration & higher reliability engines Expanding portfolio will be strengthened further with current opportunities acr
Slide 20: Todd Alder / Ian Donabie contact details
Todd Alder Ian Donabie Managing Director / CEO www.orbitaluav.com Corporate Communications Manager +61 8 9441 2311 +61 8 9441 2165 contact@orbitalcorp.com.au idonabie@orbitalcorp.com.au