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Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This...

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Investor Presentation February 2020
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Page 1: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

Investor PresentationFebruary 2020

Page 2: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

Cautionary statement

This presentation includes statements looking-forward that involve risks and uncertainties. These statementsare based upon management’s expectations and beliefs concerning future events. Forward-lookingstatements are necessarily subject to risks, uncertainties and other factors, many of which are outside thecontrol of the Company, that could cause actual results to differ materially from such statements. Actualresults and events may differ significantly from those projected in the forward-looking statements as a result ofa number of factors including, but not limited to, those detailed from time to time in the Company’s AnnualReports. Orbital UAV makes no undertaking to subsequently update or revise the forward-looking statementsmade in this presentation to reflect events or circumstances after the date of this release.

Front cover image shows Insitu Inc’s ScanEagle3 2© 2020 Orbital Australia Pty Ltd

Page 3: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

What we do

World leader in the design and manufacture of integratedengine systems for tactical unmanned aerial vehicles (UAVs)

© 2020 Orbital Australia Pty Ltd 3Image shows Insitu’s ScanEagle3 and Orbital UAV’s propulsion system

Page 4: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

Who we are

© 2020 Orbital Australia Pty Ltd

ASX listed company (ASX: OEC)

Revenue generating manufacturer –on track for FY20 full-year profitabilityContract with Boeing/ Insitu Inc. to supply up to $350M of military drone engines

Two engine models shipping to Boeing/ Insitu Inc.

Negotiations with other global defence primes underway4

Page 5: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

5

What is a tactical UAV

• Field operated by military units• Carries state-of-the-art electronic

payloads (e.g. day/night cameras)• Worth $3.5 - $6 million per system*• Wingspan up to 5 m• Flies at up to 20,000 ft• Maximum endurance of 24 hours

Tactical UAVs are used by global defence forces for gathering intelligence, surveillance and reconnaissance

* Includes air vehicles or AVs, a ground control station, remote video terminal, launch system and recovery system© 2020 Orbital Australia Pty Ltd

Page 6: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

UAV Defence Market

© 2020 Orbital Australia Pty Ltd

Worldwide military UAV production$128 billion*

Worldwide tactical UAV production$21.7 billion*

* UAS Market Outlook with Special Focus on Tactical Systems, Teal Group Corporation | For the years 2017-2026

USA DoD UAV production$2.6 billion in 2017*

2613 2422

1063 90658

6552

3756

2269 2283

215

USA Asia-Pacific Europe Mid-East Other

Country/region

UAV production by region*

20172026

$ millions

Teal Group Predicts Worldwide Military UAV

Production of $128 Billion between 2017 - 2026

6

Page 7: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

7

Tactical UAV landscape

* UAS Market Outlook with Special Focus on Tactical Systems, Teal Group Corporation | For the years 2017-2026

Tactical UAV$21.7Bn*

© 2020 Orbital Australia Pty Ltd

Page 8: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

8

Market LeadersMarket dominated by two players

Existing Clients

Total sales to date ~$22M

Long Term Agreement (LTA)up to $350M over five years

2018-2023© 2020 Orbital Australia Pty Ltd

Page 9: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

Supporting Insitu’s entire UAV fleetLong Term Agreement

9

ScanEagle2

ScanEagle3

Integrator™

ScanEagle®

Insi

tu’s

vers

atile

and

ag

ile U

AV fa

mily

Two engines now in production

5 years (from October 2018)

$120-350M

© 2020 Orbital Australia Pty Ltd

Page 10: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

10

Why Orbital UAV?Heavy fuel 2-stroke IP and know-how40 years developing innovative engine solutions15 years as a global leader in spark ignited heavy fuel propulsion

© 2020 Orbital Australia Pty Ltd

Page 11: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

Delivering to Defence

Orbital UAV’s heavy fuel propulsion systems meet the US Dept of Defence’s ‘one fuel’ policy and high reliability requirements of front line personnel

Orbital UAV All OthersTime between overhaul 500 hrs ~50 hrsCold start to launch 2 min >20 minx3 U.S. FAR33.49 endurance test Yes No© 2020 Orbital Australia Pty Ltd 11

Page 12: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

What we’ve delivered

Oct 2018Expanded LTA with Boeing/ Insitu

May 2019 First engine shipping under LTA

Aug 2019 FY19 revenue: $15.3MFY20 revenue: $25-$35M

Jan 2020Second engine shipping under LTA

Jan 2020 HY FY20 prelim revenue: $11.4M*

Sep 2018US facility opening

January 2020September 2018

© 2020 Orbital Australia Pty Ltd 12

*Unaudited

Page 13: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

New Customer OpportunitiesCapture increasing Defence market

Supply Chain EfficiencyQuality, cost, on time delivery

End User EngagementDirect access to US DoD

Where we’re going…

Hood River United States

PerthAustralia

© 2020 Orbital Australia Pty Ltd 13

Page 14: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

Board of Directors

- Appointed Chairman March 2015- MD & CEO of Resolute Mining Ltd- Director Equatorial Resources Ltd

John WelbornChairman

Non-Executive Director

- Experienced aerospace and defence industry executive

- MD of WA Specialty Alloys 1996-2015

Kyle AbbottNon-Executive

Director

Todd AlderManaging Director

& CEO

- Appointed CEO & MD in 2017- Focusing on: financial

discipline; strategy alignment; and operational efficiency

Steve GallagherNon-Executive

Director

- Board member since 2017- 30 years experience as a CEO

and director of global businesses

© 2020 Orbital Australia Pty Ltd 14

Page 15: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

Corporate overview

15

Capital StructureFully Paid Ordinary Shares 77MMarket Cap @ $0.34 (28 Jan ‘20) $27MCash & Receivables (31 Dec ‘19) $13.5M*Revenue FY19 $15.3MRevenue H1 FY20 $11.4M*Revenue guidance FY20 $25-35M

Top Shareholders31%

10%4%

55%UIL Limited

Colonial First State

Directors & Employees

Other

• Half-year revenue: $11.4M*• On track for full-year profitability• Strong cash balance • Tight capital structure• Contracts with market leaders• Proven management with the ability to execute

Investment Highlights

© 2020 Orbital Australia Pty Ltd*Unaudited

Page 16: Investor Presentation - Orbital · Investor Presentation February 2020. Cautionary statement This presentation includes statements looking-forward that involve risks and uncertainties.

www.orbitaluav.com

Todd AlderManaging Director / CEO+61 8 9441 [email protected]

Ian DonabieCorporate Communications Manager

+61 8 9441 [email protected]


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