Slide 1: The Future and Today
For personal use only Future Today and the
Slide 2: First Half Highlights
First Half Highlights For personal use only First cash dividend of US$840,000 received from Synerject Synerject delivers first production of electronic control units from new manufacturing facility in China Orbital launches new “FlexDI” product to enable “One engine – Any fuel” capability for
Slide 3: Orbital Global Locations
For personal use only Orbital Global Locations July 2005 December 2006 Synerject Newport News Toulouse Delavan France Wisconsin USA Changchun Chongqing Newport China China News Virginia USA Perth Australia March 2006 Orbital Locations Synerject Locations Regional Customer Support P3 ORBITAL COPYRIGH
Slide 4: Orbital's Vision
Orbital’s Vision For personal use only Innovative Technology Solutions for a Cleaner World Focused on: – Clean, efficient and safe transportation; – Efficient use of energy and resources; – Use of renewable and sustainable energies; where each are readily developable in Australia, and applicable to
Slide 5: Group Overview – Income Streams
Group Overview – Income Streams For personal use only Orbital Corporation Engineering Services Royalties and Licensing Manufacturing - Analysis & Design - Orbital Direct Injection - EMS Design & Devt. - Combustion Systems - Calibration & Testing - Control Systems - EMS Manufacturing - Engine Develop
Slide 6: 1st Half FY08 – Financial Review
For personal use only 1st Half FY08 – Financial Review Income Statement A#039;m Half Year Dec-07 Dec-06 Dec-05 %YOY Total revenue 7.8 8.2 4.9 (5% ) Total expenses (8.4) (8.8) (6.9) (5% ) Share of profit of Synerject 0.4 0.8 0.8 (50% ) Results from operations (0.2) 0.2 (1.2) N/A Loss after taxation (0.4
Slide 7: 1st Half FY08 – Financial Review
For personal use only 1st Half FY08– Financial Review • Cash Flow • Operating Cash Outflow - $2.66 million – Cash inflow of $0.46 million before working capital movements (Dec ‘06: $(0.20) million outflow.) – Similar year on year after excluding R&D syndicate settlement last year. • Other Cash Flow
Slide 8: Earnings Contribution by Segment
1st Half FY08– Financial Review For personal use only Earnings Contribution by Segment 2 1 A$m 0 -1 Dec-04 Dec-05 Dec-06 Dec-07 Engineering Royalty & Licences Synerject Increased R&D expenditure reduced Royalty & Licencing contribution in Dec07 Half P8 ORBITAL COPYRIGHT
Slide 9: Orbital Growth Drivers
Orbital Growth Drivers For personal use only Emissions reduction (toxic and greenhouse legislation) Lower energy/fuel consumption (greenhouse and oil price) Alternative fuels (greenhouse and renewable) Cost effective engine solutions (China and India) P9 ORBITAL COPYRIGHT
Slide 10: Orbital Business Focus
Orbital Business Focus For personal use only Orbital business segments are across the whole value chain Engineering services R&D IP licensing Product / Synerject Proof of Design for Market Growth Market Decline Idea concept Manufacture release Consolidation Typical product life cycle P10 ORBITAL COP
Slide 11: New Growth Opportunities for Orbital
New Growth Opportunities for Orbital For personal use only Compressed/Liquid Natural Gas (CNG/LNG) Background Natural gas is becoming a real alternative to diesel and gasoline for many transport applications Natural gas has significant economic drivers for the high energy users e.g. taxis, heavy
Slide 12: Why Natural Gas? Economic
Why Natural Gas? For personal use only Economic Typically much lower cost than diesel or gasoline Australia CNG/LNG is nearly 50% lower cost than equivalent per litre diesel Stability of CNG pricing versus Oil, allows long term cost planning for major operators P12 ORBITAL COPYRIGHT
Slide 13: Why Natural Gas? Environmental
Why Natural Gas? For personal use only Environmental Particulate emissions and NOx can be significantly lower relative to diesel Can provide greenhouse gas benefits versus the gasoline or diesel equivalent (depending on the baseline engine) Evaporative emissions significantly lower than gasoli
Slide 14: Orbital Natural Gas Opportunities
Orbital Natural Gas Opportunities For personal use only Automotive Orbital FlexDI is being developed for various automotive products including 3 wheeler application in India Heavy duty Trucks Orbital have completed an engineering contract for AGO to assist rectification of CNG/LNG system for
Slide 15: Synerject Overview
Synerject Overview For personal use only 50:50 Joint Venture with Siemens-VDO established in 1997 Supplies and manufactures Engine Management Systems (EMS) and electronic fuel injection systems for the global non-automotive market Access to Siemens-VDO automotive components and know how for no
Slide 16: Synerject – Products and Markets
Synerject – Products and Markets For personal use only 4 Stroke Market 2 Stroke Market Port Injection Direct Injection Direct Injection Port Injection P16 ORBITAL COPYRIGHT
Slide 17: Target Market Growth Trends
Target Market Growth Trends For personal use only 70 63 M 60 Unit Volumes 50 39.5 M in the 40 Total Motorcycle, Marine and 30 M/cycle only Recreation Asia M/cycle Markets 20 10 0 2006 2009 2012 2015 P17 ORBITAL COPYRIGHT
Slide 18: Legislative Drivers for Technology and EMS
Legislative Drivers for Technology and EMS For personal use only Global Motorcycle Emissions Legislation 0% EMS Technology Carburetor China Europe India Taiwan EMS Emissions or Carburetor >50% EMS 100% EMS 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 P18 ORBITAL COPYRIGHT
Slide 19: Synerject ECU in production in China
Synerject ECU in production in China For personal use only The production of Synerject’s M3 Electronic Control Unit (ECU) module has commenced at their manufacturing facility in Changchun, China The new module, which integrates the ECU, throttle body and sensors, is offered to motorcycle manufac
Slide 20: Synerject - Outlook
Synerject - Outlook For personal use only Continued investment in customer applications and facilities in China for future profit growth Launch of new EMS products in current markets and Taiwan will add revenue growth in 2008/09 Launch of new E-TEC products from Delavan e.g. Snowmobile Conti
Slide 21: Orbital Engineering Services
Orbital Engineering Services For personal use only Providing fundamental design, development and research in: Engine management systems Fuel systems Combustion systems Fuel economy and emissions control Gaseous and Alternative Fuels e.g. LNG/CNG fuel systems Heavy duty gaseous applicatio
Slide 22: Orbital Engineering Services
Orbital Engineering Services For personal use only Recent programs launched: Design and development of new family of “clean” general purpose engines, manufactured in China for US market National in-service Emissions study for Roads and Traffic authority of NSW Rectification program for assisti
Slide 23: Orbital Engineering Services - Outlook
Orbital Engineering Services - Outlook For personal use only Focus on emerging markets in Asia and lever our IP along with R&D investment for strong selling propositions Cyclic nature of customer outsourcing has near term influence, building long term strategic alliances with key customers to en
Slide 24: Orbital - Licensing and Royalties
Orbital - Licensing and Royalties For personal use only Over 500,000 Orbital DI engines in the market P24 ORBITAL COPYRIGHT
Slide 25: Orbital - Licensing and Royalties
Orbital - Licensing and Royalties For personal use only Mercury OptiMax launches two new models in June 07 and wins J.D. Power award for quality for third consecutive year Bajaj launch gasoline DI autorickshaw in May, gaseous versions under development Envirofit achieve sign-off of retro-fit k
Slide 26: Licensing and Royalties - Outlook
Licensing and Royalties - Outlook For personal use only Bajaj gasoline DI autorickshaw increasing volume through FY2008 and FY2009 Extension of Orbital DI applications into growth products e.g. High end motorcycles, snowmobiles and ATVs Extension of Orbital technology into new markets e.g. gas
Slide 27: Orbital Summary
Orbital Summary For personal use only Targeting profit growth and positive cash flows with increased emphasis on Orbital technology, Synerject and a broader product and customer base Focus on the development and commercialisation of a range of innovative technologies, particularly those related
Slide 28: Disclaimer
Disclaimer For personal use only Forward Looking Statements This presentation includes forward-looking statements that involve risks and uncertainties. These forward-looking statements are based upon management's expectations and beliefs concerning future events. Forward-looking statements are neces