Orbital Corporation Ltd · ASX:OEC
Orbital — FY2021 Earnings Presentation
18 slides from Orbital's earnings presentation, Aug 27, 2021
Slide 1: Investor Presentation: FY21 Full Year Financial Results
Investor Presentation FY21 Full Year Financial Results 27 August 2021
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’) © 2021 Orbital Australia Pty Ltd 3
Slide 4: Presentation summary
Presentation summary FY21 revenue $31.2M Primary engine supplier to Insitu Inc. (a Boeing Company) Customer diversification strategy to mitigate revenue concentration Engine development programs (Textron-Lycoming, Singapore) progressing towards production Growing defence market presents additional T
Slide 5: FY21 Financial Results
FY21 Financial Results © 2021 Orbital Australia Pty Ltd 5
Slide 6: FY21 in review
FY21 in review FY21 revenue $31.2M underpinned by Boeing-Insitu agreement Two engine models in production for Boeing-Insitu Boeing-Insitu headwinds impacted order volumes in FY21 H2 Production of third engine model for Boeing-Insitu delayed by customer design changes Further customer diversification
Slide 7: Profit & Loss
Profit & Loss For the full year ended 30 June 2021 Commentary Underlying Profit & Loss FY21 FY20 • FY21 Revenue of $31.2M, impacted by Boeing-Insitu volume downgrade in H2 Revenue $31.2M $33.8M • Gross margin at 42%, improvement on FY20 Gross Profit $13.0M $13.3M GM % 42% 39% • Overheads reduced in
Slide 8: Balance sheet
Balance sheet As at 30 June 2021 Commentary FY21 FY20 Inventory $12.8M $9.4M • Inventory increase of $3.4M is a result of Boeing-Insitu volume downgrade, to be utilised in FY22 Trade & other receivables $4.6M $6.1M Trade & other payables ($1.7M) ($4.5M) • Deferred revenue increase due to customer ad
Slide 9: Cash flows
Cash flows For the full year ended 30 June 2021 Commentary FY21 FY20 • FY21 net cash outflow from operating activities of $1.6M includes: Net cash from operating activities ($1.6M) $3.7M • Reworks of $2.4M • Restructure cost of $0.6M • Excess inventory of $6.5M due to Boeing-Insitu Net cash from inv
Slide 10: Corporate overview
Corporate overview Capital Structure As at 30 June 2021 Our FY22 Financial Focus Fully Paid Ordinary Shares 77.7M • Return to profitability • Third engine model in production Closing share price $0.83 • Investment in new production lines Market Capitalisation $64.5M • Generating positive operational
Slide 11: The year ahead
The year ahead © 2021 Orbital Australia Pty Ltd 11
Slide 12: FY22 outlook
FY22 outlook Building customer revenue diversity Boeing-Insitu 3rd engine production line operational & 4th engine development program initiated Textron engine production line readiness Hood River USA Singapore customer engine production line readiness Securing additional customer contracts in H1 &
Slide 13: Boeing-Insitu long term agreement
Boeing-Insitu long term agreement Primary engine supplier to Boeing-Insitu Status: 3. 1. ScanEagle2 Status: Status: 4. Development timeline TBD Integrator™ 2. Status: Status: 5. Development timeline TBD ScanEagle® ScanEagle3 Images stylised for confidentiality reasons © 2021 Orbital Australia Pty Lt
Slide 14: FY22 engine development programs
FY22 engine development programs Significant long-term revenue opportunities Delivered Milestone SINGAPORE DEFENCE COMPANY © 2021 Orbital Australia Pty Ltd * For illustrative purposes only 14
Slide 15: Production line expansion
Production line expansion Accelerating revenue growth SINGAPORE DEFENCE COMPANY * * FY21 FY22 FY23 © 2021 Orbital Australia Pty Ltd * For illustrative purposes only 15
Slide 16: ADF opportunities
ADF opportunities Current tactical UAV programs Australian Defence Force Tactical UAV Programs Australian Army Royal Australian Navy LAND129 Phase 3 SEA129 Phase 5 © 2021 Orbital Australia Pty Ltd 16
Slide 17: Defence & UAV market
Defence & UAV market Rising budgets and increasing demand Rising global Increased UAV Australian sovereign Defence budgets + production & adoption + industrial capability • Global defence spending • Worldwide UAV production • Defence Budget will grow reached US$1.83 trillion in forecast at US$95.5 b
Slide 18: 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