orbit technologies overview...pedestals, controllers, servo-drivers, tracking antennas, receivers,...

Orbit Technologies Overview2009: Turnaround

2010: Sustainable Profitable Growth

11-1-2010

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Safeharbor Statement

The forward-looking statements contained herein reflect management's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of Orbit, including, but not limited to, those risks and uncertainties detailed in Orbit' periodic reports filed with the Israeli Securities Exchange Commission. Orbit undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.This presentation contains trade names, trademarks and service marks of other companies. We do not intend our use or display ofother parties’ trade names, trademarks and service marks to imply a relationship with, or endorsement or sponsorship of, these otherparties.

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Orbit Technologies - Agenda

Overview2009: Turnaround2010: Growth

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Marine Satellite Communication

Orbit Technologies – Overview

A communication company headquartered in Israel with Global presence

TrackingThree product lines:Mobile Satellite Tracking Avionics Intercommunication Management

Many customers andinstallations with vast experience

Avionics IntercommunicationManagement

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MaritimeSatellite Communications (VSAT & TVRO)Stabilized Tracking Antennas/SystemsNavel Audio Intercommunication System (NAIS)

Orbit Technologies – Applications(Maritime, Airborne, Land)

Cruise Lines

Cargo

Oil & Gas

Yachts

Navies

Over 3,300 Marine Over 3,300 Marine SatComSatCom Systems Installed WorldwideSystems Installed Worldwide

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Orbit Technologies – ApplicationsYachts

Navies

AirborneSatellite Communication for UAV’sStabilized Tracking Antennas/SystemsIntercommunication management Systems

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Orbit Technologies – ApplicationsYachts

Navies


LandSatellite Communication for TrainsStabilized Tracking Antennas/Systems

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Orbit Technologies – Sales Distribution


LandSatellite Communication for TrainsStabilized Tracking Antennas/Systems

Commercial Defense

Sales Distribution (24 months)

Americas, 28% Israel, 29%

EMEA, 32%APAC, 11%

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Orbit Customers and Partners

NATO ForcesNATO Forcesshipyard

Maritime Airborne Land

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The ICS shall consist of an Orbit airborne digital audio management system (O) orequivalent tempest tested secure digital audio system (T) that provides undistortedcommunication amongst crewmembers. Control panels shall be installed at each pilot,sensor operator/observer station. Each panel shall provide selective monitoring andvolume control of each radio, the satellite phone, and “hot mike” communications. Flightcrew stations shall have the ability to monitor, select, control frequency, transmit andreceive all air traffic control (ATC) and mission radios. Each sensor operator/ observerstation shall have the ability to monitor ATC radios and to monitor, select, controlfrequency, transmit and receive all mission radios. Microphone/phone jack panels shallbe installed at each passenger position to enable ICS communications.

3.3.13.2.1 Intercommunication System

U.S. DEPARTMENT OF HOMELAND SECURITYU.S. CUSTOMS AND BORDER PROTECTION

PERFORMANCE SPECIFICATIONFOR THE

US CUSTOM AND BOARDER PROTECTIONMULTIROLE ENFORCEMENT AIRCRAFT (MEA)

VERSION 1.0

JANUARY 30, 2009

Orbit airborne digital audio managementsystem becoming an industry standard…

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Profit

Sales & Profit ($M)Sales & Profit ($M)

Results are IFRS compliant since 2007

23.3 25 23.9

31.5

40.7 40.5

46.4

-5900

230 80

-130-900

-80

2600

-130-300 -0.3

-900 -1200

2600

2300

-40

-30

-20

-10

0

10

20

30

40

50

2003 2004 2005 2006 2007 2008 2009 (Fcst.)

$ M

-6000

-5000

-4000

-3000

-2000

-1000

0

1000

2000

3000

4000

5000

6000

7000

$ (000)

Sales Op. Profit Net Profit

Rev.

CAGR > 12%

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Quarterly Sales & Profits (M$)Quarterly Sales & Profits (M$)

10.2 9.810.5 10.7

11.311.99

10.1

780

250

-1300-1200

-800

650 570

450440

40

-1300

-780

-10

-5

0

5

10

15

Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09

$ M

-1500

-1000

-500

0

500

1000

1500

2000

$ (000)

Sales Op. Profit Net Profit

-2600

6600

EBITDA

Rev. Profit

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Improvements in financial performance

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Profit & LossProfit & Loss

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(13.5%)4.8%8.5%4.3%Net Profit (Loss) %

(1,323)5712,5541,455Net Profit (Loss)

1-9/2009 1-9/2008 Q3/2009 Q3/2008

Revenues 34,017 30,027 11,990 9,771

Gross Profit 9,998 4,780 3,716 2,023

Gross Margin 29% 16% 31% 21%

Research & Development, Net 2,150 2,161 881 723

Sales & Marketing 3,780 4,900 1,244 1,571

General & Administrative 2,393 2,336 812 960

Operating Profit (Loss) 1,675 (4,617) 779 (1,231)

Operating Margin 5% (15%) 6.5% (12.6%)

EBITDA 2,613 (3,629) 1,098 (750)

EBITDA % 7.7% (12%) 9.2% (7.7%)

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Producing more with much less…

+23%

% $000 % $000 % $000 % $000 % $000Revenue 100% 11,990 100% 11,325 100% 10,702 100% 10,504 100% 9,771COGS 69% 8,274 69% 7,831 74% 7,864 81% 8,483 82% 8,032Gross Margin 31% 3,716 31% 3,494 26% 2,838 19% 2,021 18% 1,739

Net Profit 5% 571 4% 445 4% 439 -4% -399 -13% -1,263

Q4/08 Q3/08Q1/2009Q3/2009 Q2/2009

$4M (initial 9 months) and $2.2M (23% quarterly) increase in revenue in spite of:Major reduction in hours:

Over 45% reduction in over time Q3 2009 vs. Q3 2008 (52% in Operations) about 13,000 working hours saved5 less working days a quarter in 2009 about 26,000 working hours saved208 people at end of Q3 2009 vs. 230 at the end of Q3 2008

While increasing gross margin

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CR Efforts in first 9 months of 2009CR Efforts in first 9 months of 2009

Overall Saving Plan $150,000 $150,000 $200,000Q1 Actual Q2 Actual Q3Actual

ACS $13,936 $23,330 $13,610TR $84,605 $18,662 $27,610SATCOM $29,568 $97,005MARINE $126,828 $195,675 $233,475Total $225,369 $267,235 $371,700

$20,000 $20,000 $15,000$245,369 $287,235 $386,700Total

General

Summary

Meterial (K)

19ORBIT Technology Group Confidential

OrSat ASP’s (Average Sales Price)

Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09ORSAT 18 11 39 33 59 74 34 72 61 27 43 43 38 41 41ORSAT Avg. Price $36,540 $36,853 $35,781 $37,384 $37,226 $37,671 $38,191 $39,429 $39,389 $40,562 $41,821 $41,332 $45,129 $42,315 $45,727

0

10

20

30

40

50

60

70

80

Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

ORSATORSAT Avg. Price

12 x Ku/X band systems

11 x Ku/X band systems

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OrSat’s 8W cost roadmap

$27,000

$28,000

$29,000

$30,000

$31,000

$32,000

$33,000

$34,000

$35,000

$36,000

$37,000

Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10

21% GM increase… from 16% in Q4’08 to 37% forecasted for Q2’10

More than 22% cost reduction in 18 months

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Building Our Organization

Complementing Orbit’s Talent

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Orbit Management Team

Avi CohenPresident and CEO

Avi CohenAvi CohenPresident and CEOPresident and CEO

Israel AdanEVP S&M

Israel AdanIsrael AdanEVP S&MEVP S&M

Nissim BardaVP HR & Admin.ORAKIM BL Mgr.

Nissim BardaNissim BardaVP HR & Admin.VP HR & Admin.ORAKIM BL Mgr.ORAKIM BL Mgr.

Erez ShabirowSVP R&D

Erez ShabirowErez ShabirowSVP R&DSVP R&D

Jacob KaplanACS BL Mgr.

Jacob KaplanJacob KaplanACS BL Mgr.ACS BL Mgr.

Samuel SnirTracking BL Mgr.

Samuel SnirSamuel SnirTracking BL Mgr.Tracking BL Mgr.

Lior WeinsteinSatCom BL Mgr.Lior WeinsteinLior Weinstein

SatCom BL Mgr.SatCom BL Mgr.

Gil SoloveyVP OperationsGil SoloveyGil Solovey

VP OperationsVP Operations

David JosephOrbit CS (USA)David JosephDavid Joseph

Orbit CS (USA)Orbit CS (USA)

John HarrisonOrbit GV (UK)

John HarrisonJohn HarrisonOrbit GV (UK)Orbit GV (UK)

Stanley Yow(Orbit Singapore)

Stanley YowStanley Yow(Orbit Singapore)(Orbit Singapore)

Yossi LeviSVP Delivery & BD

Yossi LeviYossi LeviSVP Delivery & BDSVP Delivery & BD

Ze’ev SteinChairman of the Board

ORBIT Technology Group

ZeZe’’ev Steinev SteinChairman of the BoardChairman of the Board

ORBIT Technology GroupORBIT Technology Group

GR Product Marketing

GR GR Product Marketing Product Marketing

Delivery(Program Managers)

DeliveryDelivery(Program Managers)(Program Managers)

Oded AvrahamiCustomer Service Oded AvrahamiOded Avrahami

Customer Service Customer Service

Shmuel KorenSVP & CFO

Shmuel KorenShmuel KorenSVP & CFOSVP & CFO

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Orbit’s Growth Engines

Satellite Communication

and

Tracking Solutions

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Orbit is moving up the value chain…

From Positioning Systems

to Tracking Antennas

and Turn-key Tracking Solutions…pedestals, servo-drivers and controllers

turn-key solutions including pedestals, controllers, servo-drivers, tracking antennas, receivers, test equipment, racks, shelters and trailers

25%-20Expected Tracking growth rate is annually in each of 2010 and 2011

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Orbit’s Growth Engines

Satellite Communication growth rate is >30%annually in each of 2010 and 2011

Market share increase mostly in the US and in APAC (India)Major large order wins in both commercial and defense marketsRegulation increasing barrier to entry and Orbit’s product differentiation

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Mobile Satellite Communication Market Drivers

Demand for Broadband services continue to grow and are expected everywhere just like in the office

No alternative to Satellite for Broadband on the move (e.g., at sea)

Resulting in Rapid deployment of satellites in space

Deployment of various frequency bands (Ka,X,Ku) for various applications

Technologies continue to improve

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Marine Market Forecast

There are 120,000 to 140,000 large vessels (>100 tone)Less than 10% penetration

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Orbit Marine Market Share

January 2009Orbit share will increase in both 2010 and 2011…

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Commercial Communication SatellitesGeosynchronous Orbit

22⁰⁰ angular separationangular separation

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Satellite RegulationsAdjacent Satellite interference

35,680km’s

GEO

Geostationary Earth Orbit (GEO)

The GEO Satellites are located 2-3degree apart

Antenna Radiation Patterns

Side Lobes

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The OrSat System – Regulations

ORBIT ADVANTAGE/DIFFERENTIATION

The only Ku antenna in the world, of its size, that has been type approved by both Eutelsat and Intelsat

Brazilian regulationA major USA Integrator has listed its Marine Mobile Satcom Solution based on the OrSat

ST-1 SatelliteAsia-Pacific regulation

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Summary

Orbit:Is focused Has a strong leadership teamOffers a differentiated product portfolioExperiencing a strong market positionStarting to win large size contracts

Orbit is ready to take advantage of its position and grow ~20% in 2010

team… sense of urgency… innovation…

2009: Turnaround2010: Sustainable Profitable Growth

Thank You!

orbit technologies overview...pedestals, controllers, servo-drivers, tracking antennas, receivers,...

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