Transcript Comrod Communication ASA

Comrod Communication ASA
Q2 Presentation
Stavanger, 27th. August 2007
Eirik S. Larsen, CEO
Kari Duestad, CFO
Ole Gunnar Fjelde, EVP and
MD Comrod AS
Agenda
2
I.
Key points
II.
Company overview
III.
Q2 Financials
IV.
Summary
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
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Agenda
4
I.
Key points
II.
Company overview
III.
Q2 Financials
IV.
Summary
Comrod Communicaton ASA – Company profile
 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
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The Business Areas
Antennas
Masts
Industrial products
Power supply
Product
illustration
Products
 HF, VHF, UHF, dual band,
GPS, multi-band antennas and
antenna systems
 Telescopic, sleeve, man-pack,
manual and motorized versions
 Insulating products such as
insulators, insulating poles and
structural composites which are
custom designed products
 Battery systems, technology
rights acquired from Eltek ASA
with exclusive rights in the
defense market
Key customers
 Defense (80 % of sales) and
maritime industry (20 % of
sales). Key clients include ITT,
Harris, Thales and Rhode &
Schwarz
 In defense market, key clients
include Thales, DGA and US
Army
 Defense (10% of sales) and
utility and energy industry (90 %
of sales). Key clients include
Siemens and SCNF
 In the defense market, key
clients include Kongsberg Group
and FMV Sweden
Type of clients
 OEM, defense organizations,
commercial vessels
 OEM, defense organizations
 Utilities, industrial companies
 Defense organizations
Manufacturing
 Norway / France
 France
 France / Norway
 Outsourced to plants in Norway,
Poland and China
Revenues and
EBITDA 2006
 NOKm 129,3 / NOKm25,5
 NOKm 27,2 / NOKm -1,1
 NOKm 26,2 / NOKm 2,1
 NOKm 14,9 / NOKm 2,8
Source: Comrod Communication
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Overview of products
Business Area – Antennas (58% of revenue)
Bowman Vehicle
Collection
Man-pack VHF 30-88MHz
Handheld VHF 30-88MHz
Navy
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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
HF 1.6-30MHz, VHF 3088MHz, UHF 225450MHZ
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
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Overview of products
Business Area – Masts (13 % of revenue)
Unmanned use
Surveillance
Omaha Beach LOS (land of
sight)
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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
Advanced control
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
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Overview of products
Product area – Power supply (16 % of revenue)
Double Man-pack
charger
1 position vehicle charger
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
Standard power supply
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Combined charger and power supply
Market: Power Supply
 Market openings into the existing sales
networks of Comrod and Lerc
 High activity on new tenders
 Comrod in unique technology position.
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Overview of products
Product area – Industrial products (13 % of revenue)
Offshore applications
Railroad applications
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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
Foamed pipe
Insulators
Market : Industrial Products
 Growth within Offshore Application Products,
good margins.
 Stable market for Other Insulator Products.
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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
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Agenda
16
I.
Key points
II.
Company overview
III.
Q2 Financials
IV.
Summary
Financial performance Q2
 Substantial growth in turnover
 Growth in EBIT
 EBIT margin down
 Good development in the Power supply business area
 Good development in the Mast business area
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Q2 financials
Total Sales
EBITDA
EBIT
EBIT %
18
Q2 2007
66 300
7 580
4 574
6,9%
Q2 2006
   
27 740
139,0 %
4 218
79,7 %
3 030
51,0 %
10,9%
Q2 2006
Proforma
47 831
6 889
4 090
8,6%
Segment Information : Turnover per Business Area
Q2 2007
Antennas
Turnover
EBIT
EBIT %
Masts
Turnover
EBIT
EBIT %
Industrial Products
Turnover
EBIT
EBIT %
Power Supply
Turnover
EBIT
EBIT %
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Q2 2006 - Proforma
31 627
508
2%
30 964
2 436
8%
16 402
2 441
15 %
4 575
12
0%
9 263
89
1%
7 358
837
11 %
9 025
2 450
27 %
4 933
805
16 %
Turnover per segment
Antennas
9025
Masts
Industrial Products
Power Supply
9263
31627
16402
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Cash Flow Statement
(All figures in 1000 NOK)
Profit before tax
Depreciation and write-downs
Change in net working capital
Net cash flow from operations
Net cash flow from investment activities
Net cash flow from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at start of period
Cash and cash equivalents at end of period
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30.06.2007
4 941
6 001
-1 407
9 536
26 889
-20 923
15 501
4 184
19 685
31.12.2006
11 732
5 686
-9 059
8 360
-122 587
116 733
2 506
1 678
4 184
Balance sheet
30.06.2007
31.12.2006
253 825
271 627
Equity
88 631
18 726
Net interest-bearing liabilities
93 339
183 581
Property, Plant and Equipment
54 996
57 878
Intangible assets
65 907
67 386
Available unused credit facility
10 000
5 000
Total Capital
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Capital structure
 91 Mill NOK long term bank loan
 10 mill NOK overdraft protection
 Lerc: local financing of working capital factoring agreement
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Agenda
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I.
Key points
II.
Company overview
III.
Q2 Financials
IV.
Summary
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
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Q&A
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www.comrod.com
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