Orbital Corporation Ltd · ASX:OEC
Orbital — Non-Deal Roadshow (October 2018)
18 slides from Orbital's roadshow presentation, Oct 16, 2018
Slide 1: Investor Roadshow
Investor Roadshow October 2018
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: Emerging world leader in tactical UAV propulsion systems and flight critical components
Emerging world leader in tactical UAV propulsion systems and flight critical components 3
Slide 4: Recent highlights
Recent highlights • UAV focused strategy • A$22 million revenue in FY18 • Purpose built U.S. facility operational • Launch of Modular Propulsion Solution • Awarded supply contract for two Insitu Inc. designed engines • Long Term Agreement expanded, potential value A$350 million over five years 4
Slide 5: Where we compete
Where we compete Example: MQ-9 Reaper • Price per aircraft: $55 million - $65 million* • Payload: up to 1,700 kg Combat UAV • • Length: up to 11 m Wingspan: up to 20 m • Max endurance: 27 hours • Max altitude: 50,000 ft Example: ScanEagle3 CURRENT FOCUS • Price per aircraft: $2.5 million - $4 millio
Slide 6: Market landscape
Market landscape 90% Market Share Tactical UAV $14.6Bn* * UAS Market Outlook with Special Focus on Tactical Systems, Teal Group Corporation | For the years 2017-2026 6
Slide 7: Case study: Insitu ScanEagle propulsion system
Case study: Insitu ScanEagle® propulsion system ORBITAL UAV supplies the complete, fully assembled and mission-ready ScanEagle® propulsion system FlexDI™ Electronic Revolutionary fuel delivery Control Unit and engine management Light weight military components specification Proprietary Ultra-light W
Slide 8: Evolution of the propulsion system
Evolution of the propulsion system Existing propulsion system Optimised for the Modular Propulsion Solution* * Stylised for confidentiality reasons 8
Slide 9: Introducing the revolutionary Modular Propulsion Solution
Introducing the revolutionary Modular Propulsion Solution* Fuel Tank Options Engine Options Slice Options Alternator Options * Stylised for confidentiality reasons 9
Slide 10: Strong existing relationships
Strong existing relationships ORBITAL UAV has existing relationships with the largest players in the tactical UAV market 2016 LTA 2018 LTA 3 years 5 years (from October 2018) A$40-120M A$120-350M Long Term Agreement 1 engine : 1 platform 5 engines : entire fleet (LTA) Total sales to date ~A$18M 10
Slide 11: Expanded Insitu LTA
Expanded Insitu LTA 2017/18 2018/19 LTA - 3 years LTA - 5 years (from October 2018) A$40-120M A$120-350M Illustrative purposes only* ScanEagle ScanEagle3 ScanEagle2 ScanEagle2 Integrator *Due to design confidentiality. 11
Slide 12: Revenue guidance FY19
Revenue guidance FY19 30.0 25.0 20.0 15.0 10.0 5.0 - FY16A FY17A FY18A FY19F FY20+ 12
Slide 13: Global experience and expertise
Global experience and expertise Heavy fuel 2 stroke Supplier Tier one customer Dual Australia and IP and knowhow relationships experience U.S. facilities Hood River United States 35 years of experience developing innovative engine solutions 10 years Perth Australia of experience as the global leader
Slide 14: Closing remarks
Closing remarks • UAV strategy, focused on capturing tier one customers in the $14.6 billion tactical UAV market. • Mitigated revenue volatility of one product / one platform business. • Revolutionary Modular Propulsion Solution enables rapid deployment across multiple platforms. • Demonstrable grow
Slide 15: Corporate overview
Corporate overview Capital Structure Share Price Price (AUD) Share Price (30 Sep 18) A$ 0.50 $0.55 Fully Paid Ordinary Shares M 77 Market Capitalisation A$m 39 $0.50 Cash (30 Jun 18) A$m 11 $0.45 Debt (30 Jun 18) A$m 8 $0.40 Net Assets (30 Jun 18) A$m 22 $0.35 Revenue Guidance FY19 A$m 24 FY18 Resul
Slide 16: Board of Directors and Management
Board of Directors and Management Board of Directors John Welborn Todd Alder Steve Gallagher Terry Stinson Kyle Abbott Chairman Chief Executive Officer Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director and Managing Director Management Todd Alder Roulė Jones
Slide 17: Superiority in UAV propulsion systems and flight critical components
Superiority in UAV propulsion systems and flight critical components 17
Slide 18: www.orbitaluav.com
ORBITAL www.orbitaluav.com in ¥