July 2013 Introduction to Chemring Disclaimer 2014 Chemring Group PLC The information in this document is the property of Chemring Group PLC and may not be copied or communicated to a third party or used for any purpose other than that for which it is supplied without the express written consent of Chemring Group PLC. This information is given in good faith based upon the latest information available to Chemring Group PLC, no warranty or representation is given concerning such information (express or implied), nor is any responsibility or liability of any kind accepted, by Chemring Group PLC with respect to the completeness or accuracy of the content of or omissions from this presentation, and the contents of which must not be taken as establishing any contractual or other commitment binding upon Chemring Group PLC or any of its subsidiary or associated companies. Chemring Group PLC is under no obligation to revise, update, modify or amend the information in this document or to otherwise notify a third party recipient if any information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate regardless of whether those statements are affected as a result of new information, future events or otherwise. 2 Chemring Group FY13 Revenues - £472m FY13 Operating Profit - £57m Chemring revenues • • • • • Countermeasures £125m Sensors & Electronics £211m Energetic Systems £136m Chemring specialises in the manufacture of high technology products for the aerospace, defence and security markets Employing more than 3,500 people worldwide, and with production facilities in four countries, Chemring has customers in more than fifty countries worldwide Three strategic product segments: Countermeasures, Sensors & Electronics, and Energetic Systems Diverse portfolio of products that deliver high reliability solutions to protect people, platforms, mission and information against constantly changing threats Operating in niche markets and with strong investment in R&D, Chemring has the ability to rapidly react to urgent customer needs VISION: “To be the leading developer and producer of technologies to detect and counter radio frequency and network based threats, Improvised Explosive Devices, chemical and biological agents and guided missiles.” 3 Organisation Chart Chemring Group PLC Operating Business Units Countermeasures Sensors & Electronics Chemring Countermeasures UK Chemring Technology Solutions (UK) Chemring Countermeasures USA Chemring Sensors & Electronic Systems (USA) Chemring Australia 3d-Radar (Norway) 4 Energetic Systems Chemring Defence (UK) Chemring Energetic Devices (USA) Chemring Ordnance (USA) Chemring Energetics (UK) Chemring Prime Contracts (UK) Chemring Nobel (Norway) Military Pyrotechnics Energetic Sub-systems Countermeasures F-22 flare suite Chemring Group is the global leader in the manufacture of countermeasures which are used to protect aircraft and ships from the threat of heat seeking and radar guided missiles and tracking systems. Markets - 50% world market share CH-47 special material decoys • Largest supplier of airborne decoy countermeasures to the US Department of Defense and the UK Ministry of Defence • Technology leader in spectral, special material and thrusted flares for fixed-wing and rotary-wing aircraft • Customers in 35 countries Products - world leading capabilities Air countermeasures • Conventional and advanced flares – protection against heat seeking and guided missiles RF / IR Naval Countermeasures • Special material decoys – covert and pre-emptive infra-red decoys • Chaff – protection against radar guided threats Naval countermeasures • Radio Frequency decoys – protect ships against radar guided threats • Infra-Red decoys – protect ships from infra-red guided threats • Centurion naval decoy launcher – optimises the placement of naval decoys Centurion Naval Launcher Maintain world lead in expendable decoys • Exploit clear lead in conventional and advanced flares • Build market leading position in naval launchers and decoys 5 Sensors & Electronics HMDS Markets – Leading positions in mission critical niches • Over 230 US Husky-Mounted Detection System (HMDS) fielded in theatre • Leading US supplier of stand-off chemical detection (Joint Service Lightweight Standoff Chemical Agent Detector -JSLSCAD) and biological agent detection (Joint Biological Point Detection System -JBPDS) • UK technical lead in electronic warfare and signals intelligence Resolve EW system • Contract R&D capability to UK Government agencies, including cyber security consultancy • Advanced solutions and equipment for counter-IED and Explosive Ordnance Disposal (EOD) scenarios Products - world leading capabilities • Hand-portable, vehicle-mounted and networked detection systems Security systems - target tracking • Man-portable and vehicle-mounted Electronic Warfare systems and electronic surveillance • Consultancy, training, solutions and managed services – network intelligence, data processing, information assurance and cyber security • Remote initiators, recoilless de-armers and lightweight disruptors for counter-IED/EOD Exploit world leading technologies IED defeat solutions • Maintain lead in GPR and jamming technology • Become market leader in IED, chemical/biological threat detection and IED neutralisation 6 Energetic Sub-Systems Market - sole source supply to NASA and Martin Baker • Leading supplier of low shock satellite separation products and NASA Standard Initiators • Largest supplier of pyromechanisms for aircraft egress systems • Trusted supplier to key prime contractors including Lockheed-Martin, Boeing, Raytheon, MBDA and ATK Atlas rocket & boosters Products - high quality, high reliability • Missile ‘launch and fly’ - actuators, retention mechanisms, safe and arm units, motors and weapon release cartridges • Space and satellite launch - initiators, separation sub-systems, thrusters, actuators, CADs/PADs • Ejection seat components and canopy cutting charges to Martin Baker • High explosives and rocket motor compositions including HMX, RDX, NTO, NENA products and insensitive munitions Aircrew egress • Rocket motor design and manufacture Maintain leading niche positions • Exploit trans-Atlantic footprint to promote US space qualified products • Ensure position on next generation platforms for missile and space programmes • Explore non-defence opportunities Satellite separation nuts 7 Energetic Systems – Military Pyrotechnics Markets - NATO/Non-NATO balance • Major supplier to US and UK • Strong routes to market in the Middle East Products - specialist rounds and products for niche applications Ammunition • 40mm grenades and mortar ammunition for infantry forces Demolition and breaching systems • Anti Personnel Obstacle Breaching Systems • Sabrex shaped cutting charges • Bangalore Torpedo breaching system Pyrotechnic • Smokes, signals and illumination rounds • Advanced spectral pyrotechnic illumination and screening products • Training rounds, launchers and simulators • Security products - CS grenades, cartridges and stun grenades Roll-out operational excellence • Promote newly developed products • Improve asset utilisation by winning major US build-to-print programmes 8 Global Footprint 11 facilities located across 4 countries Europe United States of America • • • • Chemring Countermeasures USA, Philadelphia & Tennessee Chemring Energetic Devices, Illinois & California Chemring Ordnance, Florida • • • • • • Chemring Countermeasures, UK Chemring Technology Solutions, UK Chemring Defence, UK Chemring Energetics, UK & Norway 3d-Radar, Norway Chemring Prime Contracts, UK Chemring Sensors and Electronic Systems, Virginia & N.Carolina Australia • 9 Chemring Australia Global Customer Base FY13 revenue split 86:14 between NATO and Non-NATO customers • • FY13 £472 million (continuing) Global revenues by segment US DoD is Chemring’s single largest customer Countermeasures 26% Chemring has extensive relationships with prime contractors – – – – – BAE Systems Boeing General Dynamics Raytheon ATK Energetic Systems 29% 20% UK 19% Sensors & Electronics 45% 48% 7% Europe (ex UK) 33% 34% 43% 59% USA 23% 26% 6% Middle East 54% 3% 20% 38% 59% 1% ROW 5% 28% 67% 10 7% Asia Pacific 13% 14% 73% Chemring timeline Revenue £/m 800 Revenue profile Electronics acquisitions FY14 Consolidation & Refocus • Sale of ammunition & pyro businesses • Reduced debt • Strengthened balance sheet • Acquisition 3d-Radar technology 700 600 Energetics acquisitions 500 Countermeasures market growth 400 300 200 100 0 2005 2006 2007 2008 2009 2010 11 2011 2012 2013 Strategy Chemring’s strategy is focused on its core competences and balances mature products with new technologies, offering users entirely new capabilities which will gain a growing share of future defence budgets. Maintain world lead in expendable Countermeasures • Exploit clear lead in conventional and advanced flares • Build market leading position in naval launchers and decoys Exploit world leading technologies in Sensors & Electronics • Maintain lead in Ground Penetrating Radar and jamming technology • Become market leader in IED, chemical/biological threat detection and IED neutralisation Maintain leading niche positions In Energetic Systems • Exploit trans-Atlantic footprint to promote US space qualified products • Ensure position on next generation platforms for missile and space programmes • Explore non-defence opportunities 12 Transitioning from short-cycle to long-term programmes Business Segment Sensors & Electronics Vehicle mounted IED detection 2010 2015 JSLSCAD Biological detection JBPDS 2025 HMDS POR HMDS IDIQ Chemical detection Electronic Warfare 2020 NGCD JBTDS $1bn production and service IDIQ, and exports $1bn production IDIQ $500m production IDIQ Global follow-on orders (Including Qatar, UAE & Spain) UK MOD Countermeasures Eurofighter Typhoon Sole qualified source for flares F35 Joint Strike Fighter Sole qualified source for flares Energetic Systems PAC-3 Missile Sole qualified source for Electronic Safe Arm Fuse (ESAF) Sole qualified source for rocket motors and key components Martin-Baker Ejector Seats 13 Our Capabilities 14 Countermeasures - Capabilities Air Countermeasures Advanced Countermeasures Naval Launcher Special Material Decoys Naval Decoys 15 Countermeasures - Capabilities Air Countermeasures Chemring’s comprehensive product range is based on proven threat driven solutions to protect all types of air platforms – fast-jets, transport aircraft and helicopters. CH-47 Chinook Typhoon Tornado F-35 SH-60 Seahawk Our products support the challenges of modern air missions and offer mission specific capabilities including day and night visual covertness and tailored spectral characteristics. Chemring supplies conventional and advanced flares for most NATO platforms F-18 C-17 F-15 AC-130 AC-130 16 F-22 Countermeasures - Capabilities Advanced Countermeasures Chemring’s advanced countermeasures are designed to defeat latestgeneration guided missiles, which can discriminate between traditional flares and target aircraft, by emulating flight characteristics and infra-red spectral emissions. Typhoon Chemring is the sole supplier for Typhoon flares Spectral flare Royal Navy Lynx helicopter deploys “cocktail” of spectral and MTV flares Thrusted flare K7 thrusted 2” x 1” flare protects F-16 and defeats seeker by maintaining similar flight profile to target aircraft Our advanced countermeasures protect both legacy and next generation platforms including F35 and Typhoon. Chemring is the sole supplier for F-22 and F-35 flares 17 Half Year Results FY14 Growth Drivers Case study: Next generation aircraft drive market growth Global aircraft fleet 1,600 F-35 Aircraft Delivered 1,400 F-35 1,200 Chemring sole supplier of all three flares: MJU-68 & 69 – unique to F-35 MJU-64 Special Material Decoy Global fleet of c.3000 platforms 1,000 800 Typhoon 600 400 Typhoon 200 - 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 0 Chemring sole supplier of decoys: 55mm flare and spectral variant unique to Typhoon Additional opportunity for BOL chaff & IR Potential export opportunities remain in Bahrain, Belgium, Canada, Denmark, Malaysia, Peru, Poland and Qatar. Global fleet of c.800 platforms Build-up of operational stockpiles of 500 – 1000 flares per aircraft delivered Training and test consumption of 10-50 flares per in-service aircraft per year New flares much more expensive than the flares they replace (c.$500 / flare) Decoy user base expands as retiring platforms are sold on to new NATO and growing economies deliveringglobalprotection Source: SIPRI, Global Military Balance, IHS Janes 18 Countermeasures - Capabilities Special Material Decoys Chemring’s Special Material Decoys rapidly oxidise in air to generate an Infra-Red signature to protect against advanced heatseeking air-to-air and surface-toair missile threats. BOL- Infra-red cassette Chinook CH-47 dispensing flares and Special Material Decoys Used on multiple platforms including fast-jets, helicopters and transport aircraft. Material is dispensed from conventional cartridges, or a BOL dispencer to provide a preemptive solution to prevent missile lock-on before launch. M211 1”x1” decoy cartridge 19 Infra-red image of BOL – IR preemptive decoy Countermeasures - Capabilities Naval Decoys Chemring is the world leader in the provision of naval anti-ship missile countermeasures or ‘soft kill’ expendables for protecting warships. Type 45 Destroyer HMS Dauntless fitted with Chemring’s Naval decoys It is the prime supplier of passive Radio Frequency / Infra Red decoys to the Royal Navy, many NATO and other navies throughout the world. 130mm round firing Infra-red chaff fired from launchers on board HMS Iron Duke 20 Countermeasures - Capabilities Naval launcher Chemring’s CENTURION launcher is a twelve barrelled fully trainable launcher that optimises decoy placement, minimising the need for ship manoeuvre, delivering rapid, accurate and enhanced protection, increasing survivability and sustainment of naval platforms. CENTURION delivers accurate payload placement to maximise decoy effectiveness Fixed Launcher CENTURION can be easily retro-fitted to a broad number of platforms as well as operating autonomously on a range of vessels. CENTURION can be configured with a range of 130mm rounds, as well as being adaptable to other calibres, to suit mission profiles. Centurion provides a major improvement in ship borne EW defensive capabilities and can also address surface threats, torpedo threats, and has the potential for longer range offensive capability. 21 CENTURION Trainable Launcher Sensors & Electronics - Capabilities Force Protection Chem Bio Detection Innovation Electronic Warfare Enterprise Security 22 Sensors & Electronics - Capabilities Force Protection Chemring is the world leader in IED detection, based on its highly successful HMDS ground penetrating radar system. SOLO – individual protection against Radio ControlledIEDs HMDS vehiclemounted IED detection R-VISOR autonomous mine detection Chemring also offers a range of robot mounted and handheld products to find buried mines and IEDs, and is a leading developer of advanced jamming technologies to defeat radio-controlled IEDs. Disruptors safely neutralise IEDs, protecting assets and forensic evidence 3D Radar GPR antenna arrays SHARD – handheld reconfigurable IED detection 23 Growth Drivers Case Study: HMDS Program of Record • • • • • Originally funded to satisfy an urgent operational requirement in Iraq and Afghanistan, over 230 systems were in use with US, Canadian, Australian, and Spanish militaries. Recognised as a critical requirement in the protection of troops, the system is now in the process of transitioning through a customer funded R&D phase before becoming a baseline item in the US Department of Defense budget (a Program of Record). Reduced demand from the US DoD during this R&D phase will be off-set by International sales, most recently Turkey. Over 600 systems are expected to be delivered to the US DoD with full rate production commencing in FY17. This secures the position of the HMDS as an enduring capability for the US military over the next ten to fifteen years. 24 The Husky Mounted Detection System (HMDS) is a combat proven, high-performance ground penetrating radar (GPR) system providing rapid detection of landmines and other explosive devices (IEDs) Sensors & Electronics - Capabilities I-Collector Low cost biological detection and collection Chem Bio Detection Chemring is a leading provider and systems integrator or advanced point and stand-off chemical threat detection systems and biological agent detectors. Chemring is participating in all three initial R&D contracts for the Next Generation Chemical Detector Program of Record. JUNO Hand-held chemical detector PGR-1064 Explosives, narcotics, chemical warfare agents, and toxic chemical detection JBPDS Automatic detection and identification of airborne biological agents The ISCAD – passive infra-red Chemical detection system is fitted in the Stryker NBCRV 25 Sensors & Electronics - Capabilities GPS jamming protection Electronic Warfare Chemring’s EW technology detects, intercepts, locates and disrupts enemy communications on a tactical and strategic level. Tactical Electronic Warfare system for radio Direction Finding and interception Strategic signals intelligence geolocation and intercept Chemring also provides solutions to protect friendly forces communication networks. Locate-T A mobile version of LOCATE to extend range and improve accuracy SAMPSON Advanced processing algorithms for the radar fitted to Type 45 Destroyer 26 Sensors & Electronics - Capabilities Passive content inspection network probe Enterprise Security Chemring provides communications interception, inspection, illegal content tracking and network defence capability. Our solutions provide targeted information to law enforcement agencies for the detection, prevention and prosecution of serious crime and terrorism. We also protect organisations from the threat of cyber attack. A turnkey suite of modular products for lawful intercept Crypto network design and device management tool Bio-inspired cyber security solution for enterprise networks SmartToken Making commercial devices suitable for government use 27 Sensors & Electronics - Capabilities Innovation Chemring is one of the UK’s leading suppliers of innovative solutions, product development and contract R&D. Altimeters for UAVs and target drones Video capture and object tracking SmartSwitch Policy management for Smartphones With more than 400 patents, Chemring continually invests in technology, people and research to rapidly solve complex problems and provide state-of-the-art products that meet the needs of customers worldwide. Autoland A UAV Helicopter performs an automatic landing Portable 3G network 28 Energetic Sub-Systems - Capabilities Aircrew egress / safety Missile Components Space 29 Energetic Sub-Systems - Capabilities Canopy cutting cords to assist in canopy breakup and removal Aircrew Egress / Safety Chemring designs and manufactures a range of safety systems used in emergency situations including crew egress. These products are supported by our safety testing equipment, including communications and oxygen supply testing. Scot Communication and Oxygen System Tester (SCOT) Emergency Egress Handles Exclusive supplier to Martin Baker, the world’s leading manufacturer of ejection seats Joint Combined Aircrew Systems Tester (JCAST) 30 Energetic Sub-Systems - Capabilities Space Chemring is a leading space component supplier, with a 55 year heritage proven through space programmes. Chemring actuators, thrusters and retractors are used on a number of significant NASA and ESA programmes including the Atlas, Delta and Titan family of launch vehicles, space exploration vehicles and satellites. Over 200 highreliability Chemring products contributed to the successful landing of NASA’s Curiosity rover on Mars. Large thrusters are used for booster rocket separation, including the Atlas launcher. In collaboration with the Gioconda consortium, Chemring is supporting the UK MOD’s miniaturised satellite research project currently being developed for space research. 31 Energetic Sub-Systems - Capabilities Missile components Chemring supplies a wide range of high quality, high reliability, zero maintenance components supporting a number of missile, bomb and torpedo programmes across an international military customer base. US Tomahawk long range cruise missile uses a number of Chemring products within its launch sequence PAC-3 Surface to Air missile 2.75” Rocket Chemring also supplies rocket motors, with a strong track record in fuze and warhead design, manufacture and integration. Weapon Release Cartridges 32 NLAW disposable anti-tank weapon Military Pyrotechnics - Capabilities Signalling, screening & illumination Law enforcement and crowd control Demolition stores Mine & obstacle breaching systems 40mm grenades 33 Military Pyrotechnics - Capabilities Signalling, screening & illumination Chemring has an extensive portfolio of products that covers illumination, signalling, search and rescue, screening, training, law enforcement and high energy products. Our screening and obscuring products can be used for rapid and highly effective concealment of troops and equipment in the visual, infrared and laser wavelengths during operations and training. Illumination mortars Screening smokes Vehicle launched grenades for screening 34 Military Pyrotechnics - Capabilities Law enforcement Chemring manufactures a range of non-lethal security products for military and law enforcement applications. Products include: - CS Smoke Pellets - Baton rounds - Rubber Bursting CS Grenades - Vehicle launched grenades - Stun grenades CS and Stun grenades 40mm baton round 35 Military Pyrotechnics - Capabilities 40mm grenades Chemring manufactures low and high velocity High Explosive and High Explosive Dual Purpose ammunition. Special Forces troops using under-slung rifle 40mm grenade launcher Chemring also produces a new range of 40mm extended range low velocity ammunition for under-slung infantry rifle grenade launchers. Soldier carrying a bandolier of 40mm High Explosive grenades 36 Military Pyrotechnics - Capabilities Mine & obstacle breaching systems Chemring is the leading manufacturer of manportable Obstacle Breaching Systems for quickly clearing safe passageways through antipersonnel minefields, IED threat areas, multi-strand wire and other obstacles. APOBS is a self-contained, one-shot, expendable linear demolition charge which can be transported and deployed by a two person team Reusable, inert training versions are also available. APOBS firing Advanced Performance Bangalore Torpedo (AP Bangalore) gives significant improvement in performance and is easier to carry and use . 37 …and detonating. Military Pyrotechnics - Capabilities Demolition stores Sheet Explosive Chemring has developed a complete capability in demolition stores to meet the needs of military users for Explosive Ordnance Disposal, field engineering and demolition. We provide a full range of explosive products from initiation systems to main charges, both bulk explosive and cutting charges. Sabrex flexible linear cutting charge C4 Mouldable Plastic Explosive 38 Our Businesses 39 Organisation Chart Chemring Group PLC Operating Business Units Countermeasures Sensors & Electronics Chemring Countermeasures UK Chemring Technology Solutions (UK) Chemring Countermeasures USA Chemring Sensors & Electronic Systems (USA) Chemring Australia 3d-Radar (Norway) 40 Energetic Systems Chemring Defence (UK) Chemring Energetic Devices (USA) Chemring Ordnance (USA) Chemring Energetics (UK) Chemring Prime Contracts (UK) Chemring Nobel (Norway) Military Pyrotechnics Energetic Sub-systems Countermeasures Chemring Countermeasures Location: Salisbury, Wiltshire, UK Number of employees: 270 Chemring Countermeasures has world-leading decoy technology for air and naval platforms – Main UK supplier of decoy flares and chaff to protect military aircraft from Electro Optic, Infrared and Radio Frequency guided missiles and has developed a range of tailored spectral, thrusted and multi-shot flare and chaff products – £30 million investment in fully automated production facility, able to provide a significant increase in capacity to meet the high surge requirements during times of conflict. – Strong position in naval countermeasures – Centurion naval launcher developed for perceived UK and world market need for trainable launcher – Licensed explosive site complying with all HSE requirements in accordance with UK Legislation - The Explosive Regulations 2014 – Constant research and development requirement to maintain technology lead supported by a dedicated R&D team and comprehensive environmental test facilities. The majority of programs are funded by UK MoD combined with some PV programs to support export customer requirements – Customers are National Ministries of Defence including the UK, Germany, Italy, Norway, Holland, Singapore and Saudi Arabia Typhoon flare Naval decoy deployment Centurion launcher 41 Countermeasures Chemring Australia F-18 Location: Lara, Victoria, Australia Number of employees: 90 Chemring Australia manufactures flares and pyrotechnics, and distributes other Group products for the Australian market P-3 Orion ASCEND military smoke grenade – $36 million investment in a state of the art automated countermeasures facility to manufacture KC-38 and CM-118 flares. – Ten-year supply agreement underpinning on-shore manufacturing capability – Recently awarded a contract to become a qualified supplier of MJU-66/B flares for the F35 Joint Strike Fighter for US and global market – Manufactures a small range of military pyrotechnics and marine pyrotechnics – Provides route to Australian market for other Group products – Establishing electronic systems development and support capability – Principal Customer is Australia’s Department of Defence Disruptor Marine hand-smoke 42 Countermeasures SMD cloud in mixed decoy “cocktail” Alloy Surfaces HMDS Location: Chester Township, Pennsylvania, USA Number of employees: 105 Alloy Surfaces manufactures Special Material Decoys (SMDs) Infra-red view of BOL-IR – SMDs eject a cloud of patented pyrophoric metal “leaves” which heat up on contact with air to create an infra-red (IR) area decoy – SMD’s and new variants have spectral, kinematic and area decoy characteristics likely to future-proof the technology against most foreseen IR threats – BOL-IR deploys cassettes of Special Materials as a pre-emptive IR decoy preventing guided missiles from locking-on to the aircraft before they are launched – Alloy Surfaces also offers SMD material as a covert hand thrown infra-red signalling device for soldiers on the ground – Customers are US Navy, Army and Air Force, with significant exports to UK and Australia M211 Helicopter decoy IR illumination device 43 Countermeasures Kilgore Flares F-22 Location: Toone, Tennessee, USA Number of employees: 460 Kilgore Flares is a high volume manufacturer of traditional magnesium flares, with a sole source position on US next generation fighters – – F-35 Products dominated by traditional high volume MTV flares, with growth from advanced flares for new platforms (F-22 and F-35) Manufactures the standard US flares: - M206 - a 1”x1” square flare for helicopters and the C-130 - MJU-7 – a 2” x 1 “ rectangular flare for the F-16 - MJU-10 – a 2.52 x 1” rectangular flare for the F-15 – – New products include M212 spectral flare for helicopters Kilgore also manufactures air dropped marine location markers and flares – Customers are mainly the US Air Force, Army and Navy Marine location marker deployment 44 Sensors & Electronics Chemring Sensors & Electronic Systems (CSES) HMDS Location: Dulles, Virginia, USA Number of employees: 145 Hand-held CSES (Dulles & Trondheim) manufactures the Husky Mounted Detection System (HMDS), and now includes 3d-Radar’s civil and military products – World lead in vehicle-based mine and IED detection based on Ground Penetrating Radar sensor and advanced algorithm technology – New hand-held detector ‘Groundshark’ well positioned for US requirement – 3d-Radar acquired in 2014 to add civilian and exportable military products – 3d-Radar customer base includes UK and French ministries of defence, as well as commercial road and rail inspection operations – Current customers still dominated by the US Army, but exports now include Canada, Australia Spain, Turkey and Italy 3d-Radar road survey JBPDS Thor III – CREW manpack JSLSCAD 3d-Radar military 45 Sensors & Electronics Chemring Sensors & Electronic Systems (CSES) HMDS Location: Charlotte, North Carolina, USA Number of employees: 80 CSES (Charlotte) manufactures vehicle mounted and hand-held Chemical and Biological detection systems Hand-held Juno JBPDS Thor III – CREW manpack – Chemring Detection Systems acquired in 2011 to add Chem / Bio detection to complete the Force Protection detection portfolio – Supplies the two main sensors for the US Stryker NBC Reconnaissance Vehicle – JBPDS (Bio) and JSLSCAD (remote chemical detection) – Juno and PGR hand-held products developed for military, security and non-military applications – Main customer is US Chem / Bio PEO JSLSCAD 46 Sensors & Electronics C-HAWK Chemring Technology Solutions Resolve portable EW JBPDS Locate SIGINT Location: Romsey, Hampshire, UK Number of employees: 410 Chemring Technology Solutions is a recognised leader in contract R&D, and manufactures a number of specialist detection and electronic warfare products – – – Smartlink deployable base-station – – Roke acquired in 2010 to add a world leading capability in IED detection and jamming , as well a self funded critical mass in electronics 60% of revenues in contract R&D First proprietary products are Resolve (man-portable EW), Locate (strategic Signals Intelligence) and IED detectors New opportunities include: Smartlink deployable 3-G mobile base station; Smartswitch mobile phone policy-on-the-device; Perception network protection; subsystems for UAVs and a handful of non-defence opportunities Customers are UK Government Agencies (40%), and primes, including Lockheed Martin, L-3 TRL, QinetiQ, Selex and Siemens Smartswitch policy-ondevice 47 Energetic Sub-Systems Chemring Energetic Devices (Downers Grove) Atlas rocket & boosters Location: Downers Grove, Illinois, USA Number of employees: 90 Chemring Energetic Devices (Downers Grove) manufactures missile & ammunition components and space thrusters and test equipment Aircraft ACES II Egress components JASSM Lug Retraction Device – Scot acquired in 2008 to bring US footprint for ejection seat and missile components complementing CEUK and adding new space market – Manufactures pyrotechnic components for missiles, space launcher and aircrew egress – also test equipment for aircrew life-support systems – Customers are USAF, USN, Boeing, and FMS countries for aircraft DCA/PAD egress safety; Raytheon and Lockheed Martin (Lug Retraction) for missile components; NASA, Northrop Grumman and ULA for space thrusters, explosive bolts and pyro-valves JCAST 48 Energetic Sub-Systems Chemring Energetic Devices (Torrance) PAC-3 Missile Location: Torrance, California, USA Number of employees: 130 Chemring Energetic Devices (Torrance) manufactures space initiators and separation components and Safe / Arm system for the PAC-3 missile Safe/arm device – Hi-Shear acquired in 2009 to build clear lead in US space market with Scot, as well as adding advanced missile safe / arm technology – PAC-3 Electronic Safe/Arm Fuze is the largest single product line – High margin business with scope to use Chemring European presence to expand sales into lucrative European satellite market – Sole-source for NASA Standard Initiator, and lead supplier of low shock satellite separation devices – Customers are Lockheed Martin (PAC-3 and space) Boeing, Harris and ULA Satellite separation nuts Explosive Disruptor Bolts 49 Energetic Sub-Systems Ejection Seat Chemring Energetics UK Location: Ardeer, Scotland, UK Number of employees: 310 CEUK manufactures propellants, rocket motors, explosives and pyromechanisms for aircraft, missile and demolitions NLAW Shoulderlaunched missile Sabrex cutting charges Metron range of actuators – Nobel acquired in 2005, Leafield in 2006 – Strong position in aircrew egress through supply of propellants, cartridges and rocket motors to Martin-Baker – Supply of missile components and sub-systems including rocket motors for the UK’s Next Generation Light Anti-tank Weapon (NLAW) and 2.75” rockets – UK MoD partnering agreement for high explosives and modern demolition stores – Detonators, Bangalore Torpedo, Sabrex, and in future sheet and block explosives – Metron actuators are a growing non-defence business – Customers are UK MoD, Martin-Baker, Saab, Thales and BAES 50 Energetic Sub-Systems Chemring Nobel Location: Saetre, Norway Number of employees: 95 High Explosive Compositions Chemring Nobel synthesises powdered base explosives for high performance military and civil applications – Acquired in 2007 to provide internal supply of HMX and RDX-based compositions – Leader in high performance compositions for pressable, cast cure and melt pour explosive manufacture – Supplies high-quality materials with controlled powder morphology to optimise performance with insensitivity – Customers in the defence market are Nexter, ATK, Aerojet, Nammo, Diehl and Rheinmetall Italy; in the commercial market Schlumberger and Dyno Nobel 51 Energetic Systems – Military Pyrotechnics Vehicle Launched Grenades Chemring Defence UK Location: Draycott, Derbyshire, UK Number of employees: 220 Chemring manufactures pyrotechnic products, payloads and minebreaching systems for military and security users Conventional & Compact Smoke – – – – – Mature market with very little product innovation Military products are flares, smokes, trip-flares, signalling cartridges and training products Security products include CS grenades and cartridges and stun grenades Day/night distress signal for both military and non-military users (via Drew Marine) Customers are UK MoD, Europe and Middle Eastern users CS products Day/night distress smoke & flare Disruptor 52 Energetic Systems – Military Pyrotechnics Chemring Ordnance Location: Perry, Florida, USA Number of employees: 290 40mm grenade Chemring Ordnance manufactures pyrotechnic training grenade fuzes, 40mm ammunition and a mine-breaching system (APOBS) APOBS mine-field breaching system – MEI acquired in 2008 to add US footprint to complement CD in signals, illumination & training, and to bring range of 40mm grenade ammunition and pyrotechnics: also includes Titan Dynamics’ training products, and Mecar Inc.’s trading business – Main current product is APOBS – 40mm products and M228 practice grenade fuze will recover in future – Significant business procuring non-NATO ammunition for US government – Main customer is the US DoD 40mm product range Disruptor 53 Disclaimer 2014 Chemring Group PLC The information in this document is the property of Chemring Group PLC and may not be copied or communicated to a third party or used for any purpose other than that for which it is supplied without the express written consent of Chemring Group PLC. This information is given in good faith based upon the latest information available to Chemring Group PLC, no warranty or representation is given concerning such information (express or implied), nor is any responsibility or liability of any kind accepted, by Chemring Group PLC with respect to the completeness or accuracy of the content of or omissions from this presentation, and the contents of which must not be taken as establishing any contractual or other commitment binding upon Chemring Group PLC or any of its subsidiary or associated companies. Chemring Group PLC is under no obligation to revise, update, modify or amend the information in this document or to otherwise notify a third party recipient if any information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate regardless of whether those statements are affected as a result of new information, future events or otherwise. 54
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