Orbital Corporation Ltd · ASX:OEC
Orbital — Shareholder Meeting (October 2008)
44 slides from Orbital's shareholder meeting presentation, Oct 22, 2008
Slide 1: Orbital Corporation Limited 20th Annual General Meeting
For personal use only Orbital Corporation Limited 20th Annual General Meeting
Slide 2: Agenda
Agenda For personal use only • Chairman’s Address • Chief Executive Officer’s Address • Formal Business • Questions and Answers
Slide 3: Chairman's Address
For personal use only Chairman’s Address
Slide 4: FY08 Results
FY08 Results For personal use only FY08 financial highlights: A$'m FY08 FY07 %YOY Total revenue 14.9 15.2 -2% Total expenses (16.7) (16.2) -3% Share of profit of Synerject 2.4 3.2 -25% EBIT 0.3 1.6 -57% Profit after taxation 0.5 1.3 -62% EPS (cents) 0.10 0.30 -67% NTA (cents) 3.19 3.47 -8%
Slide 5: Highlights FY08
Highlights FY08 For personal use only • Synerject manufacturing joint venture commences production of electronic control units in China • First cash dividend payment of US$840,000 received from the Synerject manufacturing joint venture • Polaris releases 1st production ATV using Orbital technology •
Slide 6: Chief Executive Officer's Address
For personal use only Chief Executive Officer’s Address
Slide 7: Orbital Vision
Orbital Vision For personal use only Innovative Technology Solutions for a Cleaner World Saving Energy Costs while Improving the Environment Use of renewable and sustainable energies, developed in Australia, and applicable to the world Accumulated total tonnes of CO2 saved over the lifetime of produ
Slide 8: The Situation Today
The Situation Today For personal use only • Market Meltdown • Int’l Business Impact • Impact to Orbital Possible Opportunities
Slide 9: Possible Opportunities
Possible Opportunities For personal use only Orbital Opportunity Further Delays Result in Business Uncertainty
Slide 10: The World Around Us
The World Around Us….. For personal use only Toyota produces CNG hybrid In figures released this week byToyota LPG is set to roll out the world’s first Australia, there has been an 18.9% vehicle increase powered by compressed natural gas in the number of LPG conversions (CNG) up andto theelectricity
Slide 11: Lessons Learned
Lessons Learned For personal use only In Planning for the Future We Should Learn from the Past?
Slide 12: Lessons Learned – Auto and Non-Auto
Lessons Learned – Auto and Non-Auto For personal use only 1970 – 1980 Automotive Rotary Engine Development Stabilise Synerject Now is the License and Engineering Focus Time for Growth Royalty Strategy Consulting 1980 – 1988 Alternative Fuels Fuel System, Auto 2S Engine Aligned Businesses Auto 2S, In
Slide 13: Emission Legislation Drives Orbital Growth
Emission Legislation Drives Orbital Growth For personal use only Bombardier PWC moves Aprilia Introduction to 4-stroke Delayed Euro III Motorcycle Legislation Carburetted scooters OCP Systems continue 120,000 Motorcycle (2&3W) 100,000 Marine New direct 80,000 injection Optimax Introduction products
Slide 14: Synerject Growth and Orbital Royalties
Synerject Growth and Orbital Royalties - Driven by Emission Legislation For personal use only Legislation near term in China and India - Enforcement will be challenging OCP Systems 120,000 - Emissions will drive the market Motorcycle (2&3W) Marine - Timing is uncertain – lesson from EU 100,000 2006
Slide 15: Commercialisation – Lessons Learned
Commercialisation – Lessons Learned For personal use only Orbital Automotive License and Royalty Strategy “Did not Yield Desired Results” Our Customers Prefer to Buy “Engineering, Systems and Components” “They will pay License and Royalty – if there is supply” For the Future - Orbital Should Build O
Slide 16: Where Are We Today?
For personal use only Where Are We Today?
Slide 17: Orbital Today
Orbital Today For personal use only Engineering Services •Energy/emission audit to Governments and Industry •Advanced R&D •Support for Licensees Synerject and OGP • Manufacture and supply of EMS systems to non-automotive OEM’s • Manufacture and Supply LPG Systems Licensing & Royalties Alternative Fu
Slide 18: Orbital Tomorrow
Orbital Tomorrow For personal use only Where Are We Going? How Should We Get There? Build on our Engineering Knowledge, “Grow Our Core Business” and “Expand into Aligned Markets”
Slide 19: Orbital Tomorrow – Builds on Our Expertise
Orbital Tomorrow – Builds on Our Expertise For personal use only Small Engines Transport Mining Alcohol LPG CNG/LNG Gasoline HCNG Kerosene Diesel Hydrogen FlexDI - Alternative Fuels Integration, Development and Application Expertise Engineering Services
Slide 20: Orbital Tomorrow
Orbital Tomorrow For personal use only Technology Services License & Royalty • Energy and Emission Management • 3 wheeler growth • Production Customer Support • Performance vehicles • Advanced R&D • 4 stroke engines Alternative Fuel Engineering • LPG • LNG/CNG • E100 (Brazil) FY09 NEW Complementary
Slide 21: Why Alternative Fuels and Energy Management?
Why Alternative Fuels and Energy Management? For personal use only Projected Requirement Orbital’s Opportunity Oil Production Projected Availability Source: http://www.theoildrum.com/tag/update “In the next ten years it is projected that electricity, liquefied petroleum gas (LPG) and natural gas (pa
Slide 22: How Do We Grow – Immediate Future (1)
How Do We Grow – Immediate Future (1) For personal use only Synerject • Manufacture and supply of EMS systems to non-automotive OEM’s Technology Services •Energy/emission audit to Governments and Industry •Advanced R&D •Support for Licensees Licensing & Royalties Alternative Fuels • LPG • LNG • CNG
Slide 23: How Do We Grow – Immediate Future (2)
How Do We Grow – Immediate Future (2) For personal use only Synerject • Manufacture and supply of EMS systems to non-automotive OEM’s Technology Services •Energy/emission audit to Governments and Industry •Advanced R&D •Support for Licensees Licensing & Royalties LPG • OGP Alternative Fuels CNG/LNG
Slide 24: OGP (Orbital Gas Products)
OGP (Orbital Gas Products) For personal use only Orbital – Only combined LPG Technology and System Provider in Australia Auto OEM Customer requirements interpreted into system specification
Slide 25: OGP Advantage – the LPi System
OGP Advantage – the LPi System For personal use only ~10% reduction in fuel ~6-7% increase in power consumption, CO2 vs gasoline, no longer and operating costs “torque loss at low rpm” Vapouriser Power LPi FC Driveability CO2 Vehicle Cost Weight Operating Cost LPi Performance vs Gen II LPi WOT Perfo
Slide 26: LPG Market in Australia
LPG Market in Australia For personal use only Australian Automotive Potential LPG Market $600 $500 AU$ (millions) $400 FY09 (E) FY10 (E) $300 FY11 (E) $200 FY12 (E) FY13 (E) $100 $0 Retrofit OEM Orbital Share Today Source: Orbital Information
Slide 27: Natural Gas Vehicle Market
Natural Gas Vehicle Market For personal use only Source: IANGV
Slide 28: Synerject
Synerject For personal use only 2 Stroke Direct Injection Fuel Rail System (outboard marine engine) In-Tank Fuel Pump Module (Motorcycle application) Port Injection 2 Cylinder ECU Engine Management & Vehicle Functions (motorcycle application) Synerject EMS 2 Wheel Vehicle Systems 400 350 300 Units (
Slide 29: Future Orbital (1)
Future Orbital (1) For personal use only Current Orbital Technical Services Licensing, OGP SYN Orbital Royalty, IP FlexDI R&D •Government •Energy Audit •Energy Management
Slide 30: Future Orbital (2)
Future Orbital (2) For personal use only Future Orbital Orbital Brand Technical Services Licensing, LPG LNG CNG Parts Eng. SYN Orbital Royalty, IP FlexDI R&D •Government Alternative Complementary •Energy Audit Fuels Businesses •Energy Management OGP
Slide 31: Formal Business
For personal use only Formal Business
Slide 32: Financial Report and Reports of the Directors and Auditors
Item 1 For personal use only • Financial Report and Reports of the Directors and the Auditors
Slide 33: Remuneration Report
Item 2 For personal use only • Remuneration Report
Slide 34: Re-election of Director – Mr J G Young
Item 3 For personal use only • Re-election of Director – Mr J G Young
Slide 35: Election of Director – Dr M T Jones
Item 4 For personal use only • Election of Director – Dr M T Jones
Slide 36: Election of Director – Dr V Braach-Maksvytis
Item 5 For personal use only • Election of Director – Dr V Braach-Maksvytis
Slide 37: Reduction of Share Capital
Item 6 For personal use only • Reduction of Share Capital
Slide 38: Executive Long Term Share Plan
Item 7 For personal use only • Executive Long Term Share Plan
Slide 39: Approval of new Performance Rights Plan
Item 8 For personal use only • Approval of new Performance Rights Plan
Slide 40: Acquisition of shares by the Managing Director under the Plans
Item 9 For personal use only • Acquisition of shares by the Managing Director/Chief Executive Officer under the Executive Long Term Share Plan and the Performance Rights Plan
Slide 41: Acquisition of shares by the Managing Director under the Share Plan
Item 10 For personal use only • Acquisition of shares by the Managing Director/Chief Executive Officer under the Executive Long Term Share Plan
Slide 42: Questions and Answers
For personal use only Questions and Answers
Slide 43: Thank You
For personal use only • Thank You
Slide 44: Orbital Corporation Limited 20th Annual General Meeting
For personal use only Orbital Corporation Limited 20th Annual General Meeting