Defeating the Threat - Investis Digital
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Defeating the Threat Delivering Global Protection CHEMRING GROUP PLC
Transcript of Defeating the Threat - Investis Digital
CHEMRING GROUP PLC07 June 2007
Defeating the Threat
Delivering Global Protection
CHEMRING GROUP PLC
CHEMRING07 June 2007 1
Chemring Group PLCChemring, a FTSE 250 company, has:
a market capitalisation in excess of £650moperations in UK, USA, Germany, Italy, Spain, France & Australiasuccessful market access to 80+ countries world-wide
Countermeasures Energetics
60% of SalesWorld Leader
40% of SalesRapid Growth
Energetics
CHEMRING07 June 2007 2
Peace-Keeping and Conflict
Source: UN
Numbers Deployed
Iraq c.170,000Afghanistan 32,000
UN Peacekeeping140,000
CHEMRING07 June 2007 3
The Threat to the Skies
Stinger Mistral SA-9 Gaskin SA-13 Gopher
SA-7 Grail SA-16 GimletSA-14 Gremlin SA-18 Grouse
Maximum Ranges From 2.5 To 4.0 Nautical Miles. Maximum Altitude Up To 16,000 feet.
CHEMRING07 June 2007 4
The Threat to the Skies
Kinematic flaresSpectral flares
MTV flares
Area flares
Chaff
Radar Controlled Anti-Aircraft Guns
MANPADS & other Surface to Air Missiles
Air to Air Missiles
CHEMRING07 June 2007 5
Evolution of the Threat
1960sSpin Scan
1970s/80sCooled Con
Scan
1980s/90s Cross Array/Rosette
Flare Countermeasures
2005Staring Imagers
2010 Spectral Imagers/
Dual Mode Seekers
2000ScanningImagers
Technology
Time11stst GenerationGeneration
22ndnd GenerationGeneration
33rdrd GenerationGeneration
4th Generation4th Generation
CHEMRING07 June 2007 6
Countermeasures - Air
Decoys for Helicopters Wide Range of IR FlaresDecoys for Fixed Wing A/C
CHEMRING07 June 2007 7
New PlatformsHelicopters:
Tiger – France, Germany, Spain, AustraliaNH-90 – Germany, France, Italy, Holland, Sweden, Finland, Norway, Australia, Greece, New Zealand, SpainEH 101 – UK, US, Japan, Portugal, Canada, Italy, Denmark
Transport Aircraft:V-22 – USA400m – Germany, France, Spain, UK, Turkey, South Africa, Belgium, Malaysia, Luxembourg
Combat Aircraft:F-22 – US, Japan ?JSF – US, UK, Italy, Holland, Turkey, Canada, Norway, AustraliaTyphoon – UK, Germany, Italy, Spain, Austria Saudi ArabiaSu-30 – India, Indonesia, Malaysia, Algeria
CHEMRING07 June 2007 8
The Global Countermeasure Market
Source: Internal estimates based on US program documentation & export market knowledge
£m
illio
n
Global Market Size (£m)
US Army
US Navy
US AirForce
UK
RoW
Peacekeeping activities driving increased decoy usage.US FY08 budget figures showing significant growth. USAF growth driven by introduction of advanced flares for 3rd & 4th
generation seekers:MJU-55 for F-18ALA-17 for B-52F-22 advanced flaresJSF advanced flares
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
2004 2005 2006 2007 2008 2009 2010
CHEMRING07 June 2007 9
The Threat at Sea
Anti-torpedo decoy
Corner reflectors
Chaff
Visible & IR Obscurant
Sea-Skimming Missiles Sonar Guided Torpedoes
Laser-Guided BombsAir-Launched Rockets
& Missiles
CHEMRING07 June 2007 10
Countermeasures – Naval
Naval Rounds and Payloads
CHEMRING07 June 2007 11
The Threat on Land
Munitions IED Pyrotechnics
CHEMRING07 June 2007 12
Flare6%
Red Phosphorous3%
Irritant10%
Other7%
Initiators & Det Cord12%
Other Aircraft Pyro6%
Total US & EU market c.£600m
PyrotechnicsAircrew Escape Propulsion 9%
Cartridges 23%
Smoke 10%
Battlefield Effects 8%
Rocket 7%
Aircraft Pyro47%
CHEMRING07 June 2007 13
F UZ E
PR
OX
DM
84F U
Z E P
RO
X D
M84
FuzePrimerFuze
Booster
Payload or High
Explosive
Tracer / Base Bleed Grain
Munitions
Propellant
GrenadesRockets
Anti-tank
Source: Forecast International , Chemringinternal estimates
Estimated Global Ammunition Market (2006)
US & EU market £4.9 billion
Small Calibre24.9%
Medium Calibre7.2%
Large Calibre8.2%
Mortars9.2%
Bombs4.1%
Rockets4.9%
Bunker Defeat/Anti-Tank3.7%
Simple Missles15.4%
Complex Missles19.5%
Others0.3%
Grenades2.5%
Fuze
CHEMRING07 June 2007 14
Mine Detection20%
Detectors, Tools etc2%
ECM43%
ROV's20%
Total US & EU market £2.5bn
EOD
Initiators, 2.6%
Demolition Stores, 4.2%Plastic Explosive, 0.6%
Minefield Breaching, 0.9%Demil, 4.2%
CHEMRING07 June 2007 15
Corporate Strategy
Strategic Intent:Build on core competences
Energetic materialsHigh reliability & safetyHigh volume manufacturingGlobal defence markets
Maintain US/Europe Balance
Expand countermeasuresMaintain market shareExploit lead in SMD & spectral flareEstablish lead position on new platforms
Energetics focus for strong growthAcquisitions in both US & EuropeOutsourcing opportunities from PrimesConsolidation for synergy & critical mass Counter-
measuresEnergetics Potential
NewSectors
Market Growth
0
1
2
3
Munitions EOD Pyro
Partnering and acquisitions in
large energetics
markets
Mar
ket s
ize
( £bi
llion
)
