Specialty Engineering Slough, Tuesday 25 April 2006 Presentation by: John Langston, Group MD, Specialty Engineering
2 Specialty Engineering Sales Distribution Spec Eng: £929m Sales at 31 July 2005 John Crane Interconnect Flex Tek Marine Specialty Engineering
3 Vision for Specialty Engineering Technology based groups/scaleable organisation Medical expansion Acquisitions Capitalise on increased growth profile Acquire adjacent businesses and leverage global distribution strength Sell peripheral non- core businesses Gastite – grow Aerospace/Industrial – restructure and harvest Harvest Deliver Full Potential for each of our four businesses Interconnect John Crane Flex-Tek Marine Specialty Engineering
4 2006Acquired Lorch Microwave 2005Acquired Millitech Inc 2005 Acquired US Seals 2004 Acquired John Crane Timing 2004Acquired TRAK TECOM Industries 2004Divested Icore International 2003Divested Polymer 2003 Specialty Engineering Formed 2002Divested John Crane LIPS 2002Divested Air Movement Group 2002 Established Chinese WOFE 2001 Acquired Summitek Instruments 2000Acquired LEA International, EMC Technology, RF Florida Labs and Radio Waves Established Costa Rica lower-cost manufacturing facility 2000Industrial + Sealing Solutions Evolution of Specialty Engineering Return on Sales 11% 15% Specialty Engineering sales
Interconnect Interconnect is a global electronic components and sub-systems manufacturer providing signal, power and microwave capability to the military & aerospace, wireless infrastructure and other industries. Our products are application specific and incorporate innovative technologies to achieve ultimate system performance.
6 Interconnect - Overview Application Specific Devices High Growth High Margin Long Life Programs Standard Electronic Devices Lower Growth Lower Margin High Cap Ex $91bn $9bn Interconnect Addressable Market £m FY0001FY0102FY0203FY0304FY0405FY0506E Sales Trend Interconnect
7 Interconnect - Market Landscape US EU Asia L. America Sales by Region Defence Telecom Medical Rail Industrial Others Civil Aero Sales by Market Main Competitors L3 Cobham Amphenol ITT Cannon Herley Main Customers Interconnect
Flex Tek Flex Tek provides hose and ducting for commercial and residential air movement and hoses for aerospace, industrial applications and automotive
9 Flex Tek - Market Landscape US EU Asia Home Appl. Industrial Building mat. Other Aerospace Sales by MarketSales by Region Sales by business area Tubular Plastic Products - Duravent Heat Technology Flex Tek
10 Marine Kelvin Hughes Limited is a world leader in the design and manufacture of marine navigation systems for the commercial and defence markets and the world’s largest supplier of paper and digital nautical charts US Europe UK Sales by Region 08/09Sales by Market 08/09 Commercial Shipping (Electronics) Commercial Marine Data Systems Leisure Marine Defence Market Drivers Commercial - legislation Competitors: Furuno, JRC, Sperry, Raytheon and SAM Naval - Funding Marine Data Systems - Service, Price Marine
Specialty Engineering