Get your business Brexit ready 7th December 2016

Michael Montague General Manager Tyrone Fabrications

Who Are Tyrone? Rail Telecommunications Broadcasting Utilities Power Established in 1992 Located on an 7.25 Hectare purpose built site in Co.Tyrone 73+ staff £10m Turnover Design, Manufacture, Integrate and supply cabinets and cabins Broadcasting Utilities Power

Customers

Who Knows What Is Going On? When Are We Going? We Are Going, But Negotiating Terms As If We Stayed. OUT/IN IN

Vodafone - Europe Tyrone major supplier of product to Vodafone UK and Ireland for 15+ years We just in past 12 months received Vodafone Accreditation for Europe via Vodafone Procurement Company in Luxembourg so we can tender for their European works Negative - if imposed, could import duties Kill off this opportunity - What exchange rates do we use Positive - Vodafone wish us to tender a number of products they would like to use - Presently a good time for export Vodafone – price sensitive therefore we will have to be “lean manufacturing” in larger Vodafone’s HQ was based in London since 2009. Now moving their HQ office to a European Member Country, 300 employees have already moved across their Networks batches to complete

R.O.I Projects Large percentage of Tyrone Sales are ROI based – circa €2.5m > O2 > SIRO > Irish Rail > ESB Existing Fixed price contracts – the current weakened “£”, gives us In the telecoms world, we tender for projects 1-2 years away, how Irish/British Government – Free Trade Agreement? more “€”! do we price/predict exchange rates?

One of the largest “Fibre” carriers in the world, American Company Expanding into widespread Europe with UK one of its main hubs Tyrone supply Zayo network cabins in the UK and talking about the rest of Europe with them currently Negative - Due to Brexit, UK network expansion has been temporarily put on hold Positive - Tyrone are to carry out site surveys in France, Germany and Netherlands to start with for upgrades of equipment and cabins Conclusion – Turnkey Value Added Solutions

– How They are Helping Funded Graduate for 18 months which we have now kept on employment R&D Projects which have engineered new solutions: a) Solar Charging Station b) Hybrid-Power-Station Currently Tendering for Projects in Haiti, Nigeria and South Africa as a whole for these products > Team only back from a visit in South Africa, having submitted a tender > Order Pending for Solar Charging Station in Haiti for January

So What Will Change? Pre-Brexit -Recession / Work Patterns -Local Competition -Breaking Into Foreign Markets -Cheap Import Into NI Economy -Exchange Rate Fluctuation (minor) Post-Brexit -Exchange Rate Fluctuation (major) -Increased Material Prices (Europe) -Freedoms (Goods/Workers/Services etc.) -Tariffs

Summary 2G - 1991 FUTURE 5G - 2019 3G - 1998 4G - 2008 Too early to say how Brexit will affect us however, we can plan... For UK (NI) market to be sustainable and grow, we need to export What should we do? - New product development / Innovation - Diversification - Customer Relations - More Value-Added-Product - Exchange-Rate-Planning (Contracts/Money Forward Buying) FUTURE 5G - 2019 3G - 1998 4G - 2008

Currency Hedging & Opportunities ASM, Chartered Accountants Michael McAllister Currency Hedging & Opportunities ASM, Chartered Accountants

range of supports available Paddy Savage InterTradeIreland’s range of supports available

Range of Services

Brexit Readiness Vouchers Financial support for professional cross-border/Brexit advice. Brexit Advisory Service & Briefing Events Share advice and information to help prepare for any new trading relationships that may emerge. FUSION Funding for collaborative innovation partnership with an Academic and a Graduate. Acumen Assistance to source and fund the right person to help develop your cross-border sales. Elevate Bespoke consultancy for your business to help you develop a winning sales plan. Designed especially for micro businesses. Simple Guide to Cross-Border Business Free guide available to download from our website.

Questions & Answers

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