Specialty Engineering

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Specialty Engineering
Slough, Tuesday 25 April 2006
Presentation by John Langston, Group MD,
Specialty Engineering
www.smiths-specialtyengineering.com
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Specialty Engineering Sales Distribution
Sales at 31 July 2005
John Crane
Interconnect
Marine
Flex Tek
Spec Eng 929m
Specialty Engineering
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Vision for Specialty Engineering
Deliver Full Potential for each of our four
businesses
Interconnect

• Technology based groups/scaleable organisation
• Medical expansion
• Acquisitions
• Capitalise on increased growth profile
• Acquire adjacent businesses and leverage global
  distribution strength
• Sell peripheral non- core businesses
• Gastite grow
• Aerospace/Industrial restructure and harvest
• Harvest

John Crane
Flex-Tek
Marine
Specialty Engineering
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Evolution of Specialty Engineering
sales
2006
2006 Acquired Lorch Microwave 2005 Acquired
Millitech Inc 2005 Acquired US Seals 2004
Acquired John Crane Timing 2004 Acquired TRAK
TECOM Industries 2004 Divested Icore
International 2003 Divested Polymer 2003
Specialty Engineering Formed 2002 Divested John
Crane LIPS 2002 Divested Air Movement Group 2002
Established Chinese WOFE  2001 Acquired
Summitek Instruments 2000 Acquired LEA
International, EMC Technology, RF Florida Labs
and Radio Waves Established Costa Rica
lower-cost manufacturing facility 2000 Industrial
Sealing Solutions
2005
15
2004
Return on Sales
11
2003
2002
2005
2001
2002
2003
2004
2006
2000
2001
2000
Specialty Engineering
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Interconnect
Interconnect is a global electronic components
and sub-systems manufacturer providing signal,
power and microwave capability to the military
aerospace, wireless infrastructure and other
industries. Our products are application specific
and incorporate innovative technologies to
achieve ultimate system performance.
www.smithsinterconnect.com
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Interconnect - Overview
Interconnect Addressable Market
9bn
91bn

• Standard Electronic Devices
• Lower Growth
• Lower Margin
• High Cap Ex

• Application Specific Devices
• High Growth
• High Margin
• Long Life Programs

Interconnect
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Interconnect - Market Landscape
Sales by Region
Sales by Market
US
Defence
EU
Telecom
Industrial
Asia
Medical
Civil Aero
L. America
Others
Rail
Main Competitors
Main Customers

• L3
• Cobham
• Amphenol
• ITT Cannon
• Herley

Interconnect
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Flex Tek
Flex Tek provides hose and ducting for commercial
and residential air movement and hoses for
aerospace, industrial applications and automotive
www.wereflexible.com
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Flex Tek - Market Landscape
Sales by Market
Sales by Region
Aerospace
Home Appl.
US
Asia
Industrial
EU
Building mat.
Other
Sales by business area
Tubular
Plastic Products - Duravent
Heat Technology
Flex Tek
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Marine
Kelvin Hughes Limited is a world leader in the
design and manufacture of marine navigation
systems for the commercial and defence markets
and the worlds largest supplier of paper and
digital nautical charts
Sales by Region 08/09
Sales by Market 08/09
Commercial Shipping (Electronics)
US
Defence
UK
Commercial Marine Data Systems
Europe
Leisure Marine

• Commercial - legislation
• Competitors Furuno, JRC, Sperry, Raytheon and
  SAM
• Naval - Funding
• Marine Data Systems - Service, Price

Market Drivers
Marine
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Specialty Engineering
www.smiths-specialtyengineering.com