Introduction to Chemring Group PLC
Transcript of Introduction to Chemring Group PLC
CHEMRING GROUP PLC20 October 2006, Version 2
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Introduction to Chemring Group PLC
CHEMRING GROUP PLC
CHEMRING GROUP PLC20 October 2006, Version 2
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Chemring Group PLCChemring, a FTSE 250 company, has:
a market capitalisation in excess of £500m.a compound underlying EPS growth rate of 14% for the last 6years.operations in UK, USA, Germany, Spain, France & Australiasuccessful market access to 70+ countries world-wide
World Leader in expendable countermeasures.Core Competencies in:
the design & manufacture of energetic materialshigh volume manufacturinghigh reliability & safety
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Historical Performance
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Turn
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(£ m
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n)Countermeasures
Energetics
Marine
Discontinued activities
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Our Vision
“….To be the leading producer of countermeasures & energetic materials for
the global defence market.”
A strongly focussed company:- Priority to deliver above average shareholder returns - Balanced US/European production- Global supply to defence, government & law enforcement
Customers
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Chemring Group PLC – The Company Today
Countermeasures £90.8m
Air – IR & chaff
Sea – IR, chaff &acoustic
Land – Smokes, VDGsMarine Electronics £11.5m
Beacons
Transponders
Communications
Weather systems
Survivor location lights
Energetics £30.2mInitiators
Gas generators
Rockets & propulsion
Smokes
Flares & signals
Cutting charges
Demolition stores
Law Enforcement
Total sales £132.5m(2005)
Sales by Division
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CHEMRING GROUP PLCOperating Companies
Marine ElectronicsCompanies
ICS ElectronicsArundel, UK
McMurdoPortsmouth, UK
Energetic MaterialsCompaniesCountermeasures
Companies
PWSSPortsmouth, UK
PW DefenceDerby, UK
Oroquieta (51%)Pamplona, Spain
Chemring AustraliaVictoria, Australia
Nobel EnergeticsArdeer, UK
Alloy SurfacesPhiladelphia, USA
Kilgore FlaresTennessee, USA
Cirra (49%)France
Chemring Countermeasures
Salisbury, UK
CometBremerhaven, Germany
Leafield EngineeringCorsham, UK
Technical OrdnanceSouth Dakota, USA
BDL SystemsPoole, UK
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Corporate StrategyOrganic Growth
Divest
Organic & Acquisitive Growth
Countermeasures Energetics Marine
Impact of Acquisitions
Excellent BrandExcellent Products
Excellent Staff
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Chemring is a Multi-domestic Group with Manufacturing in the USA, UK, Germany, Spain and Australia
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Analysis of Turnover
CountermeasuresEnergeticsMarine
Countermeasures remains dominant business.New acquisitions will enhance size of Energetics.£90.8m
69%
£30.2m23%
£11.5m8%
USAUKEuropeROW
£60.6m46%
£31.5m24%
£26.0m19%
£14.4m11%
US remains largest market at 46%.US Airforce is largest CustomerUS Army using more Special Material Decoys
UK sales have grown from £21m to £26mRAF using more Special Material DecoysChemring largest supplier to MOD
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Make in the US, for the US market
Make in EU, for the EU market
Export to the global defence market from both US and EU
Geographic Strategy
Marketing presence in middle and
far east
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Global Market (£m)The Global Countermeasure Market
Decoy market expected to grow steadily with ongoing threat
UK deployment in Afghanistan increases decoy usage
Typhoon flare suite adds to existing demand
USAF largest user & plans to buy new products:
MJU-10ALA-17 for B-52F-22 advanced flaresJSF advanced flaresV-22 introduction
Source: Internal estimates based on US program documentation & export market knowledge
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2004 2006 2008 2010
£ m
illio
n
US Army
US Navy
US AirForce
UK
RoW
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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 – US, others?A400m – 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
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Growth in Helicopter ProtectionIncreasing threat to helicopter platforms
High profile target
Vulnerable to attack – low altitude, slow
Development of helicopter Defensive Aids Suites (DAS) by major systems prime contractors
Growth in helicopter fleet fitted with countermeasures dispensers
Apache – HIDAS upgrades for UK, Kuwait, UAE, Greece, Singapore, Saudi
NH90 & Tiger – DAS and countermeasure dispensers fitted as standard
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Alloy
Armtec
CCMKilg
oreThio
kolWall
opLac
roix IM
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Estimated Global Countermeasure Market
(2005)£180-190m
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2005
Percent
Other
US
UK
Estimated Revenues of Leading Suppliers of Expendable Countermeasures
(2005)
£m
Source: Chemring internal estimates
The Countermeasures Market in 2005
Chemring Total = £90.8m
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Decoys for Fixed Wing A/C
Countermeasures - Air
Decoys for Helicopters Wide Range of Circular IR Flares
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Energetics
Coloured Signaling Smoke
Electrical and RF Initiators
Stun Grenades & Explosives
Illumination Flares
Large Caliber Primers
Battlefield Simulation
Propellants Pyromechanisms Missile components
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US & EU A
mmunition
US & EU M
issiles
£ m
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US & EU Energetics Market
Initiators and explosive trainHigh ExplosivePropellantPyrotechnics, cartridges and products
350
90170 170
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190
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Ammunitio
n Compo
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Missile
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nents
Military
pyro
Demolitio
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ODMari
ne pyro
Aircra
ft Pyro
£ m
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n
Small Calibre
MediumCalibre
Large Calibre
Mortar
GrenadesRockets
Anti-tank
Air to Air
Air to Surface
S to S
Anti-tank
Surface to Air
US & EU Systems MarketUS & EU Energetic Materials Market
Source: Chemring internal estimates
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FUZ
E PR
OX D
M84
FUZ
E PR
OX D
M84
Fuze
Primer
Primer
Initiator
Booster
Main Charge (High Explosive) Propellant
Tracer or base bleed grain Percussion Initiatior
Energetics – Ammunition Components
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Energetics – Missile Components
Rocket motorExplosive train
Detent ActuatorSafety Arming Unit
Warhead
Fuze
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KC-25 Marine Location Marker
Coloured Signaling Smoke
Vehicle Discharge Grenades
MANPADS Simulation
Battlefield Simulation
Energetics – Military Pyrotechnics
Stun Grenades and Cutting Charges
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Energetics – Demolition Stores
Mine BreachingElectrical and RF Initiators
Detonators and stores
Explosives
Shaped Charges
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Line cutters
Ejector seat and crew egress
• Seats
• Shaped cutting charges
• Fire suppression
Cartridge and flare squibs
Energetics – Aircraft Pyrotechnics
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Para rockets
Lifesmokes
Handflares
Man Over Boards (MOBs)
Speedlines
Energetics – Marine Pyrotechnics
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Customers DefenceOEM
DefenceOEM
MarketSegments
Service /Products
SegmentsSegments
•Ammunition•Missiles•Military Pyrotechnics•Aircraft Pyrotechnics•Niche
•Ammunition•Missiles•Military Pyrotechnics•Aircraft Pyrotechnics•Niche
ProductsProducts
•Sub Systems.
•Pyro mechanisms.•Propellants.
•HE.•Demolition Stores
•Sub Systems.
•Pyro mechanisms.•Propellants.
•HE.•Demolition Stores
DefenceEnd UserDefenceEnd User
SegmentsSegments
ProductsProducts
•Countermeasures•Ammunition
•Military Pyro•Demolition Stores
•Countermeasures•Ammunition
•Military Pyro•Demolition Stores
DefencePrime
Contracting
DefencePrime
Contracting
SegmentsSegments
ProductsProducts
•Chemring & Out Sourced Products•Chemring & Out Sourced Products
MarineMarine
SegmentsSegments
ProductsProducts
•Commercial Pyro.
•Leisure Pyro.
•Commercial Pyro.
•Leisure Pyro.
•Countermeasures•Ammunition•Military Pyrotechnics•Dem Stores, EOD IED •Aircraft Pyrotechnics
•Countermeasures•Ammunition•Military Pyrotechnics•Dem Stores, EOD IED •Aircraft Pyrotechnics
•Countermeasures•Ammunition•Military Pyrotechnics•Dem Stores, EOD IED •Aircraft Pyrotechnics
•Countermeasures•Ammunition•Military Pyrotechnics•Dem Stores, EOD IED •Aircraft Pyrotechnics
•Commercial Marine•Leisure Marine•Commercial Marine•Leisure Marine
Customer Strategy