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Introduction to Chemring

Chemring Group

2

Chemring revenues £125.8m £99.1m £152.4m

Countermeasures Energetic Systems Sensors & Electronics

FY15 Revenues - £377.3m

FY15 Operating Profit - £34.4m

• Chemring specialises in the manufacture of high technology products for the aerospace, defence and security markets

• Employing nearly 3,000 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.”

Organisation Chart

3

Energetic Sub-systems

Chemring Group PLC

Operating Business Units

Chemring

Countermeasures UK

Chemring

Countermeasures USA

(Kilgore Flares)

Chemring

Countermeasures USA

(Alloy Surfaces)

Chemring Technology

Solutions (UK)

Roke (UK)

Chemring

Defence (UK)

Chemring

Energetic Devices (USA)

Chemring

Energetics (UK)

Energetic

Systems

Sensors

& Electronics Countermeasures

Military Pyrotechnics

Chemring Nobel (Norway) Chemring Sensors &

Electronic Systems (USA)

– NIITEK & Chemring

Detection Systems

Chemring

Prime Contracts (UK)

Chemring

Ordnance (USA)

3d-Radar (Norway)

Chemring Australia

Countermeasures

4

Markets - 50% world market share

• 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 33 countries

Products - world leading capabilities

Air countermeasures

• Conventional and advanced flares – protection against heat-seeking and guided missiles

• 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

F-22 flare suite

RF / IR Naval Countermeasures

Centurion Naval Launcher

CH-47 special material decoys

Maintain world lead in expendable decoys

• Exploit clear lead in conventional and advanced flares

• Build market leading position in naval launchers and decoys

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.

Sensors & Electronics

5

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

• 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

• 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

HMDS

Resolve EW system

Security systems - target tracking

IED defeat solutions Exploit world leading technologies

• Maintain lead in GPR and jamming technology

• Become market leader in IED detection and neutralisation, and chemical/biological threat

detection

Energetic Systems – Energetic Sub-Systems

6

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

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

• 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

Atlas rocket & boosters

Aircrew egress

Satellite separation nuts

Energetic Systems – Military Pyrotechnics

7

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

Timeline

8

0

100

200

300

400

500

600

700

800

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Revenue £/m

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Wallop

Defence

Systems

assets

Countermeasures market growth

Energetic Systems acquisitions

Sensors & Electronics acquisitions

Strategy

9

• Maintain world lead in Countermeasures

– Continuous operational improvement to capitalise on automated facilities

– Targeted investment in technology to meet emerging air and naval threats

– Maintain sole-source position on next-generation platforms

– Complete development of Centurion launcher

• Build a world leading technology base in Sensors & Electronics

– Continue to develop technologies for IED, chemical and biological threat

detection and evolve land electronic warfare products

– Win key US and NATO programmes

– Maintain and grow consultancy and contract R&D business

• Optimise leading niche positions in Energetic Systems

– Improve delivery performance to secure position on next-generation programmes

– Upgrade military and security pyrotechnics product range

Strategy

10

• Improve operational performance

- Maintain tight control of corporate overhead

- Rationalise site footprint to match current requirements

- Better operational delivery by eliminating bottlenecks and improving

manufacturing capability

- Share best practice, within and across segments

• Manage the portfolio

- Disposal of European munitions businesses in 2014

- Small, targeted bolt-on acquisitions

- 3d-Radar acquired in 2014 – net consideration £1.4m

- Purchase of countermeasures assets from Wallop Defence

Systems announced November 2015, completion expected Q2

FY16 – initial consideration £2.5m

• Target growth markets

- Invest in new product development for home markets – US, UK and

Australia

- Ensure broader access into Middle East and Asia Pacific markets

- Target growing security and non-defence markets

Transition from short-cycle to long-term programmes

11

Business Segment

Sensors & Electronics

Vehicle-mounted IED

detection

Chemical detection

Biological detection

Electronic Warfare

Countermeasures

Eurofighter Typhoon

F-35 Joint Strike Fighter

Energetic Systems

Patriot PAC-3 Missile

Martin-Baker ejector seats

2015 2020 2025 2010

JBPDS

HMDS POROR

NGCD JSLSCAD

UK MOD

Production IDIQ, upgrades

and exports

Production IDIQ

Production IDIQ

Global follow-on orders and

new product introduction

Sole qualified source for flares

Sole source for Electronic Safe

Arm Fuse (ESAF)

Sole qualified source for key

energetics

On-going R&D and International sales

Sole qualified source for new

flares

R&D

R&D

R&D JBTDS

HMDS IDIQ

Future growth programmes: January 2016 status

12

• Key strategic wins on long-term US Programs of Record

Ground penetrating radar

Awarded sole source Engineering and Manufacturing Development (“EMD”) contract to

design next generation counter-IED Husky Mounted Detection System

Chemical detection

Down-selected on all three variants of the Next Generation Chemical Detection

(“NGCD”) development programme

Biological detection

Confirmed as sole source provider for the Joint Biological Tactical Detection System

(“JBTDS”)

F-35 Joint Strike Fighter

Sole qualified supplier of countermeasures for global F-35 fleet

Chemring Australia’s qualification as second source progressing well

13

Our Capabilities

Countermeasures - Capabilities

14

Air Countermeasures

Advanced Countermeasures

Special Material Decoys

Naval Decoys

Naval Launcher

Countermeasures - Capabilities

15

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.

Our products support the

challenges of modern air

missions and offer mission

specific capabilities including

day and night visual

covertness and tailored

spectral characteristics.

F-15 C-17

SH-60

Seahawk

Chemring supplies

conventional and

advanced flares for

most NATO

platforms

F-22

F-35

F-18

Typhoon

CH-47

Chinook

AC-130

Tornado

Countermeasures - Capabilities

16

Advanced Countermeasures

Chemring’s advanced

countermeasures are designed to

defeat the latest-generation guided

missiles, which can discriminate

between traditional flares and target

aircraft, by emulating flight

characteristics and infra-red spectral

emissions.

Our advanced countermeasures

protect both legacy and next

generation platforms, including F35

and Typhoon.

Spectral flare

Royal Navy Lynx

helicopter deploys

“cocktail” of spectral

and MTV flares

Typhoon

Chemring is

the sole

supplier for

Typhoon

flares

Thrusted flare

K7 thrusted 2” x 1” flare

protects F-16 and defeats

seeker by maintaining

similar flight profile to

target aircraft

Chemring is the sole

supplier for F-22 and

F-35 flares

0

200

400

600

800

1,000

1,200

1,400

1,600

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

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201

8

201

9

202

0

202

1

202

2

202

3

202

4

Growth drivers Case study: Next generation aircraft drive market growth

17

- Build-up of operational stockpiles of 3,000 flares per aircraft, but only for 50% of the actual fleet

- Training and test consumption of 150 flares per in-service aircraft per year (10% of war stock)

- New flares more expensive than the flares they replace

- Decoy user base expands as retiring platforms are sold on to new NATO and growing economies

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, UAE, Kuwait, Denmark, Malaysia,

and Qatar

- Global fleet of c.800 platforms

Global aircraft fleet

Air

cra

ft d

eli

ve

red

Chemring sole supplier of F-35 unique flares:

- Ultimate global fleet of c.3,000 platforms

F-35

Typhoon

Source: SIPRI, Global Military Balance, IHS Jane’s

F-35 Fleet

Typhoon

Fleet

Countermeasures - Capabilities

18

Special Material Decoys

Chemring’s Special Material Decoys

rapidly oxidise in air to generate an

Infra-Red signature to protect against

advanced heat-seeking air-to-air and

surface-to-air missile threats.

Used on multiple platforms including

fast-jets, helicopters and transport

aircraft.

Material is dispensed from

conventional cartridges, or a BOL

dispenser to provide a pre-emptive

solution to prevent missile lock-on

before launch.

Chinook CH-47

dispensing flares and

Special Material

Decoys BOL- Infra-red

cassette

Infra-red image of

BOL – IR pre-

emptive decoy M211 1”x1”

decoy cartridge

Countermeasures - Capabilities

19

Naval Decoys

Chemring is the world leader in the

provision of naval anti-ship missile

countermeasures or ‘soft kill’

expendables for protecting

warships.

It is the prime supplier of passive

radio frequency / infra-red decoys

to the Royal Navy, many NATO

and other navies throughout the

world.

Infra-red chaff fired from launchers on board Type 23 Frigate HMS Iron Duke

Type 45 Destroyer HMS Dauntless fitted with Chemring’s Naval decoys

130mm round firing

Countermeasures - Capabilities

20

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 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.

CENTURION delivers accurate

payload placement to maximise

decoy effectiveness

CENTURION can be configured with a

range of 130mm rounds, as well as

being adaptable to other calibres, to

suit mission profiles.

CENTURION can be

easily retro-fitted to a

broad number of platforms

as well as operating

autonomously on a range

of vessels.

Fixed

Launcher

CENTURION

Trainable

Launcher

Sensors and Electronics - Capabilities

21

Force Protection

Chem Bio Detection

Innovation

Enterprise Security

Electronic Warfare

Sensors and Electronics - Capabilities

22

Force Protection

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 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.

HMDS vehicle-

mounted IED

detection

SOLO – individual

protection against

Radio Controlled-

IEDs

R-VISOR

autonomous mine

detection

SHARD –

handheld

reconfigurable

IED detection

Disruptors safely

neutralise IEDs,

protecting assets and

forensic evidence

3D Radar

GPR antenna arrays

23

Growth drivers Case Study: HMDS counter-IED systems

development and market penetration

HMDS

• HMDS originally funded as urgent operational requirement in Iraq and Afghanistan for US

DoD

• Significant additional sales to ‘coalition’ forces – Canada, Australia, Spain, Italy, Turkey

• The system is transitioning to baseline capability through customer funded R&D. Potential

solution includes Roke developed detection technologies. 300 – 600 US systems 2017

onwards, plus exports

• Significant international demand remains

3d-Radar

• 3d-Radar acquired to provide complementary non-ITAR solutions

• Opportunities in Middle East are progressing positively

• 3d-Radar solutions marketed in adjacent markets. Applications include infrastructure, tunnel

detection and industrial survey

Hand-held and Robot

• HMDS technologies utilised in Groundshark hand-held detector

• Initial orders received, substantial opportunities in pipeline

• Small remotely operated vehicle-based system also developed

The HMDS is a combat

proven, high-performance

ground penetrating radar

(GPR) system providing rapid

detection of landmines and

other explosive devices

(IEDs)

Groundshark employs HMDS

technologies to provide latest

generation hand-held solution

for land mine and IED

detection Originally a single solution for a single customer, GPR capability has now transitioned to a

family of solutions

Sensors and Electronics - Capabilities

24

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. JBPDS Automatic detection and

identification of airborne

biological agents

JUNO

Hand-held

chemical

detector

I-Collector

Low cost

biological

detection and

collection

PGR-1064

Explosives, narcotics,

chemical warfare agents,

and toxic chemical

detection

The ISCAD – passive

infra-red Chemical

detection system is

fitted in the Stryker

NBCRV

Sensors and Electronics - Capabilities

25

Electronic Warfare

Chemring’s EW technology

detects, intercepts, locates and

disrupts enemy

communications on a tactical

and strategic level.

Chemring also provides

solutions to protect friendly

forces communication

networks.

Strategic signals

intelligence geolocation

and intercept

SAMPSON

Advanced processing

algorithms for the radar

fitted to Type 45

Destroyer HMS Daring

Locate-T

A mobile version of

LOCATE to extend

range and improve

accuracy

GPS jamming

protection

Tactical Electronic Warfare

system for radio Direction

Finding and interception

Sensors and Electronics - Capabilities

26

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.

Passive content

inspection network

probe

Crypto network

design and device

management tool

Bio-inspired cyber security

solution for enterprise networks

SmartToken

Making commercial devices

suitable for government use

A turnkey suite of

modular products

for lawful intercept

Sensors and Electronics - Capabilities

27

Innovation

Chemring is one of the UK’s

leading suppliers of innovative

solutions, product

development and contract

R&D.

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.

Video capture and object tracking

Portable 3G

network

Altimeters for

UAVs and

target drones

SmartSwitch

Policy management for

Smartphones Autoland

A UAV Helicopter

performs an automatic

landing

Energetic Sub-Systems - Capabilities

28

Aircrew

egress /

safety

Missile

Components Space

Energetic Sub-Systems - Capabilities

29

Aircrew Egress / Safety

Scot Communication

and Oxygen System

Tester (SCOT)

Joint Combined

Aircrew

Systems Tester

(JCAST)

Canopy cutting cords to

assist in canopy break-up

and removal

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.

Exclusive supplier to Martin

Baker, the world’s leading

manufacturer of ejection seats

Emergency

Egress Handles

Energetic Sub-Systems - Capabilities

30

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.

Large thrusters are used

for booster rocket

separation, including the

Atlas launcher.

Over 200 high-reliability

Chemring products

contributed to the

successful landing of

NASA’s Curiosity rover

on Mars.

In collaboration with the

Gioconda consortium, Chemring

is supporting the UK MOD’s

miniaturised satellite research

project currently being

developed for space research.

Energetic Sub-Systems - Capabilities

31

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.

Chemring also supplies rocket

motors, with a strong track record

in fuze and warhead design,

manufacture and integration.

US Tomahawk

long range

cruise missile

uses a number

of Chemring

products within

its launch

sequence

NLAW

disposable

anti-tank

weapon

Weapon Release Cartridges

2.75” Rocket

PAC-3 Surface

to Air missile

Energetic Sub-Systems - Capabilities

32

Demolition

stores

Signalling,

screening &

illumination

40mm

grenades

Law

enforcement

and crowd

control

Mine &

obstacle

breaching

systems

Energetic Sub-Systems - Capabilities

33

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,

infra-red and laser wavelengths

during operations and training.

Illumination mortars

Screening smokes

Vehicle launched

grenades for

screening

Military Pyrotechnics - Capabilities

34

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

Illumination mortars

CS and Stun

grenades 40mm baton round

Military Pyrotechnics - Capabilities

35

40mm grenades

Chemring manufactures low and

high velocity High Explosive and

High Explosive Dual Purpose

ammunition.

Chemring also produces a new

range of 40mm extended range

low velocity ammunition for

under-slung infantry rifle grenade

launchers.

Illumination mortars

Special Forces troops

using under-slung rifle

40mm grenade launcher Soldier carrying a bandolier

of 40mm High Explosive

grenades

Military Pyrotechnics - Capabilities

36

Mine & obstacle breaching systems

Chemring is the leading

manufacturer of man-portable

obstacle breaching systems for

quickly clearing safe

passageways through anti-

personnel minefields, IED threat

areas, multi-strand wire and

other obstacles.

Reusable, inert training versions

are also available.

APOBS is a self-contained, one-

shot, expendable linear

demolition charge which can be

transported and deployed by a

two person team

Advanced Performance

Bangalore Torpedo (AP

Bangalore) gives significant

improvement in performance

and is easier to carry and

use.

…and detonating. APOBS firing

Military Pyrotechnics - Capabilities

37

Demolition stores

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.

C4 Mouldable Plastic Explosive

Sheet Explosive

Sabrex flexible

Linear cutting

charge

38

Our Businesses

Organisation Chart

39

Energetic Sub-systems

Chemring Group PLC

Operating Business Units

Chemring

Countermeasures UK

Chemring

Countermeasures USA

(Kilgore Flares)

Chemring

Countermeasures USA

(Alloy Surfaces)

Chemring Technology

Solutions (UK)

Roke (UK)

Chemring

Defence (UK)

Chemring

Energetic Devices (USA)

Chemring

Energetics (UK)

Energetic

Systems

Sensors

& Electronics Countermeasures

Military Pyrotechnics

Chemring Nobel (Norway) Chemring Sensors &

Electronic Systems (USA)

– NIITEK & Chemring

Detection Systems

Chemring

Prime Contracts (UK)

Chemring

Ordnance (USA)

3d-Radar (Norway)

Chemring Australia

Countermeasures

40

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,

infra-red 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,

Netherlands, Singapore and Saudi Arabia

Naval decoy deployment

Chemring Countermeasures Location: Salisbury, Wiltshire, UK

Number of employees: 347

Typhoon flare

Centurion launcher

Countermeasures

41

Chemring Australia Location: Lara, Victoria, Australia

Number of employees: 84

Chemring Australia manufactures flares and pyrotechnics, and distributes other

Group products for the Australian market

– $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

F-18

P-3 Orion

ASCEND military smoke grenade

Marine hand-smoke

Countermeasures

42

Alloy Surfaces Location: Chester Township, Pennsylvania, USA

Number of employees: 213

HMDS

Infra-red view of BOL-IR

M211 Helicopter decoy

IR illumination device

SMD cloud in mixed

decoy “cocktail”

- Alloy Surfaces manufactures Special Material Decoys (SMDs)

- 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, Marine Corps Army and Air Force, with significant

exports to UK and Australia

Countermeasures

43

Kilgore Flares Location: Toone, Tennessee, USA

Number of employees: 505

F-35

Marine location

marker deployment

F-22

Kilgore Flares is a high volume manufacturer of traditional magnesium flares,

with a sole source position on US next generation fighters

– 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 US Navy, Marine Corps Army and Air Force, with significant

exports to UK and Australia

44

Chemring Sensors & Electronic Systems

(CSES) Location: Dulles, Virginia, USA and Trondheim, Norway

Number of employees: 110

Sensors & Electronics

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

HMDS

Hand-held

3d-Radar road survey

3d-Radar military

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Chemring Sensors & Electronic Systems

(CSES)

Location: Charlotte, North Carolina, USA

Number of employees: 78

Sensors & Electronics

CSES (Charlotte) manufactures vehicle mounted and hand-held Chemical and

Biological detection systems

– Chemring Detection Systems acquired in 2011 to add chemical/biological

detection to complete the Force Protection detection portfolio

– Supplies the two main sensors for the US Stryker NBC Reconnaissance Vehicle

– JBPDS (biological) 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

HMDS

Hand-held Juno

JBPDS

JSLSCAD

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Chemring Technology Solutions

Location: Romsey, Hampshire, UK

Number of employees: 377

Sensors & Electronics

Chemring Technology Solutions is a recognised leader in contract R&D, and

manufactures a number of specialist detection and electronic warfare products

– Roke acquired in 2010 to add a world leading capability in IED detection and jamming, as

well as 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

Resolve portable EW

Locate SIGINT

Smartlink deployable

base-station

Smartswitch policy-on-

device

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Chemring Energetic Devices

(Downers Grove)

Location: Downers Grove, Illinois, USA

Number of employees: 214 (total including Torrance)

Energetic Sub-Systems

Atlas rocket & boosters

JCAST

JASSM Lug

Retraction

Device

Aircraft ACES II Egress

components

Chemring Energetic Devices (Downers Grove) manufactures missile &

ammunition components and space thrusters and test equipment

– 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

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Chemring Energetic Devices

(Torrance)

Location: Torrance, California, USA

Number of employees: 214 (total including Downers Grove)

Energetic Sub-Systems

PAC-3 Missile

Explosive Bolts

Satellite separation nuts

Safe/arm device

Chemring Energetic Devices (Torrance) manufactures space initiators and

separation components and Safe / Arm system for the PAC-3 missile

– 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

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Chemring Energetics UK

Location: Ardeer, Ayshire, UK

Number of employees: 296

Energetic Sub-Systems

CEUK manufactures propellants, rocket motors, explosives and

pyromechanisms for aircraft, missile and demolitions

- 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

Ejection

Seat

NLAW Shoulder-launched

missile

Sabrex cutting

charges

Metron range of

actuators

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Chemring Nobel

Location: Saétre, Norway

Number of employees: 98

Energetic Sub-Systems

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

High Explosive

Compositions

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Chemring Defence UK

Location: Draycott, Derbyshire, UK

Number of employees: 197

Energetic Systems – Military Pyrotechnics

Chemring manufactures pyrotechnic products, payloads and mine-breaching

systems for military and security users

– 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

– Customers are UK MOD, Europe and Middle Eastern users

Conventional &

Compact Smoke

Vehicle Launched

Grenades

Day/night distress

smoke & flare

CS products

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Chemring Ordnance

Location: Perry, Florida, USA

Number of employees: 258

Energetic Systems – Military Pyrotechnics

Chemring Ordnance manufactures pyrotechnic training grenade fuzes, 40mm

ammunition and a mine-breaching system (APOBS)

– MEI acquired in 2008 to add US footprint to complement Chemring Defence in

signals, illumination & training, and to bring a 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

APOBS mine-field

breaching system

40mm grenade

40mm product range

Disclaimer

2016 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.

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