Slide 1: Orbital Half Year Presentation February 2007
7] ORBITAL Presentation by Dr Rodney Houston Chief Executive Officer & Keith Halliwell Chief Financial Officer February 2007
Slide 2: Contents
8 ORBITAL Contents » Introduction = Group Overview = FYO7 Half year Results «= Business Segments = Outlook
Slide 3: Introduction
8 ORBITAL _Introduction = Australian owned publicly listed company trading on ASX as OEC = Listed on US OTC Bulletin Board (code OBTLY) = Owner and developer of Orbital DI = Shares on issue 473 million = Market capitalisation $95 million * Debt $13.1million (interest free loan from Western Australia
Slide 4: Group Overview — Orbital's Vision
8 ORBITAL _Group Overview — Orbital’s Vision Building shareholder value through leadership in innovative powertrain solutions Focus on: = Supply and manufacture of powertrain systems and components - Synerject = Development and application of powertrain IP — Licensing and Royalties = Provision of un
Slide 5: Group Overview — Growth Drivers
8 ORBITAL _Group Overview — Growth Drivers « Emissions reduction (toxic and greenhouse) = Lower fuel consumption (greenhouse and oil price) = Alternative fuels (greenhouse and renewable) " Cost effective powertrain solutions
Slide 6: FY07 Half Strategic achievements
8 ORBITAL FYO7 187 Half Strategic achievements = Bajaj enter into a new license for LPG and CNG three wheeler vehicles = Over 500,000 engines now in the market worldwide utilising Orbital DI technology = Synerject establishes manufacturing centre in Changchun in China = Share placement and share pur
Slide 7: FY07 1st Half Results
8 ORBITAL FY 07 — 1% Half Results AS'm Dec-06 Dec-05 %YOY Total revenue 8.2 49 67% Total expenses (8.8) (6.9) 28% Share of profit of Synerject 0.8 0.8 0% Results from operations 0.2 (1.2) N/A Loss after taxation ____ (9-4) (1.4) ih EPS (cents) (0.10) (0.34) 71% NTA (cents) 3.710 1.880 97% *N.B. Dece
Slide 8: Half Results — EBT Analysis
8 ORBITAL alf Results — EBT) | Analysis 3 2.5 = — = 2 g | Fos a 04 : , _ Tm ~0.5 4 414 ~1.5 fo x S& €§ €§ § F S§ EC FE EF gf cou & Sf eS ia @ & & aS & Na & & & 3 ws oa a s s aS iS Ss w & ¢ ss
Slide 9: FY07 1st Half Results: Cash Flow and Balance Sheet
8 ORBITAL _FY 07 - 1% Half Results Cash Flow Operating Cash Flow ~ Cash inflow of $0.04 million compared to $2.04 million outflow in 2005 - Turnaround due to increased engineering revenue ~ Settlement of legal dispute of $0.58 million paid in the half year Other Cash Flow ~ Share placement and SPP r
Slide 10: Earnings Contribution by Segment
8 ORBITAL FY 07 - 1% Half Results— Earnings Contribution by Segment Dec 03 Dec-04 Dec-05 Dec-06 m Engineering @ Royalty & Licences © Synerject
Slide 11: Orbital Corporation Engineering Services
8 ORBITAL Orbital Corporation Engineering Services - Analysis& Design - EMS Design & Devt. - Calibration & Testing - Powertrain Devt.
Slide 12: Synerject
89 ORBITAL _Synerject = Supplies and manufactures EMS and electronic fuel injection systems for global non- automotive market = Access to Siemens-VDO automotive components and know how for non-automotive applications «= Exclusive manufacturing rights to Orbital Dl air/fuel injector = Major customers
Slide 13: Synerject — Products and Markets
8 ORBITAL _Synerject — Products and Markets 4 Stroke Port Injection Direct Injection 2 Stroke Direct Injection Port Injection
Slide 14: Synerject - Target Market Growth Trends
JORBITAL | — (ea ee Synerject - Target Market Growth Trends The overall target market expected to grow at 5% per year between 2006 and 2012 60 Total Unit — 59 7 Volumes a in the 40 5 Motorcycle, so Le! Total Marine and M@ Motorcycle Recreation 20 | 7 Markets 2006 2009 2012
Slide 15: Synerject M3 ECU (to be manufactured in China)
8 ORBITAL _Synerject M3 ECU (to be manufactured in China) Same ECU for all engine displacements 50cc to 250cc Throttle Body ECU ‘ Includes : SYN ERIE Pressure sensor ae Air temperature sensor Throttle position sensor
Slide 16: Synerject Locations
89 ORBITAL / BY NCICC) LOU Ouse fe sv Synerject Locations © Regional Customer Support
Slide 17: Synerject - Outlook
8 ORBITAL _Synerject - Outlook mplement cost reductions and efficiencies at Delavan facility for improved margins nvestment in new products to help win new customers and further improve margins nvestment in new manufacturing facility and engineering centre in China in 2007 to support future growth R
Slide 18: Licensing and Royalties - Products
8 ORBITAL _Licensing and Royalties - Products ERCURY The Water Caifs TOHATSU
Slide 19: Licensing and Royalties — Market Drivers
89 ORBITAL _Licensing and Royalties — Market Drivers Legislative change for improved fuel efficiency and emissions Early adoption in ‘niche’ markets, e.g. outboards, PWCs, 50cc scooters Greenhouse lobby and oil prices driving change in previously resistant markets and products Near term growth in ne
Slide 20: Licensing and Royalties - Outlook
8 ORBITAL _Licensing and Royalties - Outlook = Bajaj to enter production with autorickshaw in FY2007 = Extension of Orbital DI applications into growth products e.g. motorcycles and ATVs # Extension of Orbital technology into new markets e.g. gaseous and spark ignited heavy fuel applications « Mercu
Slide 21: Engineering Services - Markets
8 ORBITAL Engineering Services - Markets « Provides services to OEMs, suppliers and regulators, globally « 40-50% of business involves application of Orbital Dl for new products or customers « Emerging markets for gaseous fuels and alternative fuels in the non-auto and auto market (LPG,CNG, Kerosene
Slide 22: Engineering Services - Outlook
8 ORBITAL _Engineering Services - Outlook = Focus on new markets in Asia and lever our IP along with R&D investment for strong selling propositions = Building long term strategic alliances with key customers to enable more long term contracts for Engineering services = Potential to grow to $15-20m/y
Slide 23: R&D Overview — Advanced Development
8 ORBITAL _ R&D Overview Orbital place a high importance on internal R&D investment to support future growth LR Advanced Development = Advanced gasoline combustion oe systems targeting 25% reduction in fuel consumption « Advanced CNG combustion systems = CNG/LPG Fuel system development for auto & no
Slide 24: R&D Overview — Enhancement of Orbital DI
@ ORBITAL _ R&D Overview Orbital place a high importance on internal R&D investment to support future growth Enhancement of Orbital DI technology = High performance non-automotive engine applications = Spark-ignition of heavy fuels (kerosene & Diesel) = Next generation system development for reduced
Slide 25: ae 3a
8 ORBITAL 7 ye — (A ae 3a pine Sealer) TT ie
Slide 26: In summary
8 ORBITAL _In summary « Target profit growth and positive cash flows with increased emphasis on Orbital technology, Synerject and a broad customer base « Focus on the development and commercialisation of a range of innovative technologies, particularly those related to the efficient use of energy an