3 Key points Q2 Continued growth in turnover Important new contracts secured: New contract on antennas to a major NATO country in May New contract on masts to the US army in May New contract with US based radio producer on antennas in June New contract with US based radio producer on antennas in July Good market development in all business units, high tendering activity Preparing for higher production capacities in second half of 2007 Integration process run as planned, positive contribution from all entities
5 A previous business division of Hexagon Public listed company on Oslo Stock Exchange Headquarter close to Stavanger Offices and production facilities in Tau, Stavanger, Oslo and St Amand Les Eaux in France. 170 employees, whereof 86 in France Comrod develops, manufactures and markets masts, antennas, industrial products and power supplies. Approximately 80% of sales is to the defense communication market Comrod holds leading global market positions within antennas and masts for the defence market Comrod Communicaton ASA – Company profile
6 Masts The Business Areas Industrial products Power supply Product illustration Products Revenues and EBITDA 2006 Type of clients NOKm 27,2 / NOKm -1,1 OEM, defense organizations Telescopic, sleeve, man-pack, manual and motorized versions Key customers In defense market, key clients include Thales, DGA and US Army NOKm 26,2 / NOKm 2,1 Utilities, industrial companies Insulating products such as insulators, insulating poles and structural composites which are custom designed products Defense (10% of sales) and utility and energy industry (90 % of sales). Key clients include Siemens and SCNF NOKm 14,9 / NOKm 2,8 Defense organizations Battery systems, technology rights acquired from Eltek ASA with exclusive rights in the defense market In the defense market, key clients include Kongsberg Group and FMV Sweden Manufacturing France / Norway France Outsourced to plants in Norway, Poland and China Antennas NOKm 129,3 / NOKm25,5 OEM, defense organizations, commercial vessels HF, VHF, UHF, dual band, GPS, multi-band antennas and antenna systems Defense (80 % of sales) and maritime industry (20 % of sales). Key clients include ITT, Harris, Thales and Rhode & Schwarz Norway / France Source: Comrod Communication
7 Product range include HF, VHF, UHF, dual band, GPS, multi-band antennas and antenna systems Products are manufactured at in-house manufacturing facilities Key attractive features of products -Superior quality, proven record -Meets the toughest demands -Flexibility Commercial vessels Navy Bowman Vehicle Collection HF MHz, VHF MHz, UHF MHZ Overview of products Business Area – Antennas (58% of revenue) Man-pack VHF 30-88MHz Handheld VHF 30-88MHz
8 Market : Antennas Comrod has well established leading market positions in most main EU countries and now sells to more than 60 countries The big new contracts for the US is an important step in becoming a major player also in the US market Total market is increasing due to new and more advanced radio communication technologies being introduced and applied
9 Overview of products Business Area – Masts (13 % of revenue) Masts include telescopic, sleeve, man-pack, manual and motorized versions Products are manufactured at in-house manufacturing facilities Key attractive features of products -Easy maintenance -Standard as well as tailor made versions -Advanced control for unmanned use Surveillance Omaha Beach LOS (land of sight) Advanced control Unmanned use
10 Market : Masts New contract won in June for deliveries of 30m high tactical masts to the US Army. Mast segment is increasing due to increasing use of high band width communication where LOS systems are applied
11 Include battery chargers and power supply Manufacturing outsourced to companies in Norway, Poland and China Key attractive features of products -Demanding applications -Tailor made solutions -Both Ni Cad and Li-Ion batteries Double Man-pack charger Standard power supply Combined charger and power supply 1 position vehicle charger Overview of products Product area – Power supply (16 % of revenue)
12 Market: Power Supply Market openings into the existing sales networks of Comrod and Lerc High activity on new tenders Comrod in unique technology position.
13 Include insulating products such as insulators, insulating poles for railroad and utilities, offshore products and custom designed structural components. Products are manufactured at in-house manufacturing facilities Key attractive features of products -Tailor-made solutions -Niche markets -Extensively tested and quality assured Offshore applications Railroad applicationsInsulators Foamed pipe Overview of products Product area – Industrial products (13 % of revenue)
14 Market : Industrial Products Growth within Offshore Application Products, good margins. Stable market for Other Insulator Products.
15 UMS Norway – Unmanned Systems Development and sales of UAVs (Unmanned Aerial Vehicles) First “scaled down” prototype successfully tested from March this year Full scale prototype to be airborne within this year 5 m wing span 5m fuselage length Speed: 300 km/h Flying time: 7 -9 hours Targeting the rapidly increasing demand for tactical UAVs in the defense and civil markets
25 Summary and outlook 2007 New contracts strengthening our position with the major radio producers. Positive market outlook for all business areas Integration process in good progress – positive and dedicated efforts from all organizational units Continued growth expected in 2007 and beyond