Of note and interest will be the additional spend on $1Bn on MRAP vehicles for Afghanistan and a further spend of $1Bn in Iraq on modernising the mechanized division and improvements in sustainment of the rotary and fixed wing aircraft of the newly created Iraqi security forces.

Spend on military vehicles, where TT electronics is strong on components used with military vehicles such as radios and surveillance kit and the vehicles electrical architecture, is due to continue with Abrams, Bradley, Stryker and the light tactical vehicles such as MATV. Further upgrades are scheduled for these applications with our customers: General Dynamics, Force Protection, Oshkosh, Bae, Textron and AMG all expected to benefit.

2011 US Ground Programme Budget $BnOther parts of TT electronics will be looking to the mil-aero sector to continue developing aircraft through either role-fit, with the UK MoD looking to introduce new Chinooks over the next few years and upgrade their Lynx fleet to the developments on Eurofighter and Joint Strike Fighter.

Although we wait for the details of the spending reviews, we believe we can look forward to continued business supporting our armed forces with developing technology throughout 2011.

October 2010

Issue 3: Role Fit Helicopters at NCE | TT exhibitions | Military contract awards | Farnborough 2010 | SC21awards IMS and Welwyn | Thales Warthog |

Welcome to the third issue of TT electronics’ Defence Insight, keeping you up to date with what is going on across the Group in this segment.Defence and Aerospace continue to play an important part of the sales of TT electronics and in H1 of 2010 accounted for over 12% of Group revenues.

With many economies now facing austerity cuts in spending, the Defence sector will no doubt be subjected to its fair share of reductions, with the pros and cons of several programs being ‘banded’ about such as Trident, the 2 new aircraft carriers and cuts to Tornado or Eurofighter tranche 3.

Those business units within TT electronics that support the Defence Industry in the UK await with great interest the output of the Strategic Defence and Security Review (SDSR) in the autumn of 2010. This Paper is expected to provide a roadmap for how our businesses will be able to serve this sector going forward and provide guidance on some of the major military programs that will be retained. Businesses have reached out to the politicians to ensure that our concerns were voiced, with New Chapel Electronics (NCE) hosting a 2 hour presentation and discussion with their local MP during the summer.

The 21st Century ‘battlespace’ is one of new, emerging threats and these will provide TT electronics with an opportunity as innovation and technology plays an even greater part in our protection.

Commentary from the US, with respect to defence, is slightly different to that in the UK. Preliminary budgets for 2011 have already been published and are holding reasonably well for TT electronics with spend expected to continue on modernisation of its armed forces at $214Bn an increase of 3.4% over 2010.

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New Chapel Electronics (NCE) has been working on a number of programmes supporting many of the Integrated Product Teams (IPT’s) within the Ministry of Defence. This is at a number of sites within the UK and also with US helicopter suppliers on a vast array of platforms to enable the Armed Forces to carry out their commitment in supporting action at the world’s hotspots including Afghanistan.

Activity has been centred round the design of equipment that is used to carry out specific tasks or roles in various theatres around the world. “ROLE Fits”( as they are known), vary considerably from complete cockpit refit on Chinook helicopters (known as programme Julius) to Radar Warning Receiver (RWR) devices on the Puma most of which are fitted under Urgent Operational Requirement (UOR) conditions that often means complete design and fit within very tight lead-times.

In addition to the UOR fits we have replaced many electrical assemblies such as those used on the Load Pole on Puma, HUMS cables on Chinook and Megga-Interrupt Cables used by the crew to comm-unicate with the pilots during helicopter loading.

NCE customer support/prototype engineers are frequently called upon to visit the various platforms on site, to measure and carry out “trial- installations prior to the design and eventual manufacture of required equipment.

NCE has forged a very close working relationship within the MOD and as a result, been very successful in securing Enabling Contracts for this equipment against which, demand orders have been issued, which should continue into the future, subject to the outcome of the government defence review.

We continue to develop relationships within the MOD at sites such as Odiham, Benson, Yeovilton and Abbey Wood in the UK. This has provided exposure to the OEM primes and has resulted in NCE gaining additional company approvals and hence direct orders from Agusta Westland and Boeing on their respective aircraft.

To ensure continuous supply and to enable NCE to grow the business levels further the company is now actively pursuing DAOS approval (Design Approved organisation Scheme) which is now mandated to enable NCE to continue to design equipment for direct fitting to the aircraft without any third party approval.

Programmes include:Chinook:• Radar Warning Receiver (RWR)• Night Enhancement Programme (NEP)• Infra- Red jamming Equipment (IR Jammers)• ALQ 156 – Self Defence Suite• Chaff & Flare Dispensers• Megga- Interrupter Cables –to allow

communication whilst loading• BENIC/BOWMAN harnessing• Human Usage Monitoring Cables (HUMS)• JULIUS – Glass Cockpit replacement • RAINMAKER – Fire extinguishing equipment• MINIGUN – Small arms units • BLOS – Satellite telephone system

Puma Helicopter:• Radar Warning Receivers (RWR) Head Cables• Radar Warning Receivers (RWR) Main Cables• Secondary Identification Friend or Foe Cables (SIFF)• Electronics Self Defence Suite (ESDS)• Load Pole (For carrying equipment slung below

the aircraft)• Human Usage Monitoring Equipment(HUMS)

October 2010

Helicopter Role Fit – what is it? New Chapel Electronics Involvement

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Both Connectors Divisions New Chapel Electronics and Sensors Halo exhibited at this year’s air show.Andy Ponting – Sales Director for Aerospace within the Connectors Division commented that “Farnborough 2010 was a good show for New Chapel Electronics with several positive enquiries being received during the week.

Unscheduled meetings took place with existing customers who were present and welcomed the opportunity to catch up on recent developments of the company in the informal atmosphere of an exhibition.

Potential customers visited the stand to see what we had to offer and gave us the chance to explain in detail the options available within the TT electronics capability portfolio.

The opportunity to “walk the floor” presented the opportunity to identify potential customers from their equipment on show and to discuss their requirements with people we just would not meet in the normal course of events.

With such a diversity of equipment on show, ideas were formulated that would enable the further development of current product lines and to

AUSA – TT electronics will be exhibiting at the major Defence expo hosted by the United States Army at The Washington DC Congress Centre

between October 25th and 27th 2010. The exhibition usually attracts 50, 000 visitors from around the world. TT electronics businesses sharing the stand will be BI Technologies, IRC, Optek, AB Interconnect and IMS. Above is an image of the TT electronics stand showing our broad capability in Defence.

possibly add to our portfolio such that a range of different customers could be explored.

It is very satisfying to see our customers showing their vehicles and products with New Chapel product on display on their equipment. This year we counted our products on so many more exhibition stands – both prime and second tier suppliers.

The Meet the Buyer event was well organised, and provided the opportunity to discuss the capabilities face to face with potential customers we would not normally get the chance to engage with. The Buyers were well represented from all levels – it was interesting to see some of those present were senior managers demonstrating how serious this show is taken.

As always you cannot quantify the value of the networking opportunities such a show offers, with the opportunity to meet people from all disciplines of the industry.

Overall the Farnborough Air show was an excellent show for New Chapel Electronics, and an important place to be seen, during this difficult time for our industry”.

We have also just completed the second year of showcasing our capabilities utilising the Dream Marketing roadshow (right) which during September visited 14 major customers in the UK and Airbus in Toulouse. Amongst the customers visited were Selex Galileo, and Selex communications, Rolls Royce, Lockheed Martin, Goodrich, Bae Systems, Augusta Westland, GE Aviation and QinetiQ .

October 2010

Farnborough Airshow, July 2010

Exhibitions

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The virtual military defence team has been working towards supporting the LPPV (Light Patrol Protected Vehicle) for the past few months and is delighted that Force Protection Europe has secured an initial award of 200 vehicles for deployment in Afghanistan in 2011. These Ocelot vehicles have been designed to replace the Snatch Landrover which have been criticised for not offering troops in Afghanistan and Iraq enough protection from roadside bombs. The Ministry of Defence announced that the British-designed Ocelot vehicle which has a V-shaped shell intended to defend against attacks coming from below the carriage will be deployed in 2011 in Afghanistan.

The Ocelot, which was created by Warwickshire-based Force Protection Europe and Ricardo, a British automotive engineering company, was among several bids competing for the Ministry of Defence contract. AB Interconnect has been working with the US parent company for the past four years and sold over $10m of connectors and harnesses in support of the larger model variants of the Cougar and Buffalo deployed by the US in Iraq and Afghanistan.

• V-shaped armoured hull helps deflect blasts from roadside bombs

• Modular design means pods can be changed according to role

• Key roles: Patrol, fire support and protected logistics in all terrains

Its wheels work independently of each other; this means it is less of a problem if one falls off as the others would continue to work.All the components can be removed easily – meaning that the pod where up to six people can sit can be changed and the vehicle could be turned into an ambulance if required.

October 2010

Force Protection wins LPPV contract with Ocelot

Internal cooperation is key additional commitment enabling business units to set faster pace for supply-chain improvement

TT electronics’ divisions have achieved rapid progress with the aerospace industry’s 21st Century Supply Chains (SC21) improvement programme. The divisions are cooperating internally to accelerate improvements and increase value for customers.

Welwyn Components is the latest TT group company to achieve SC21 accreditation, having recently won bronze recognition by A|D|S, the organisation that originated and manages the programme. The group’s contract assembly business, TT electronics - integrated manufacturing services, has also announced re-accreditation to bronze standard following its latest audit. In addition, New Chapel Electronics is submitting its first exposition for assessment by A|D|S, and expects to receive initial SC21 recognition when this is completed.

Our group companies have the additional benefit of working together through activities such as internal cluster events providing extra opportunities to learn together and share experiences and information. This will help them progress more quickly along their individual SC21 journeys, and ultimately deliver extra value for customers through stronger supply chain relationships, greater efficiency and increased competitiveness.

Underlining the importance of defence and aerospace sectors to the TT group, the group’s commitment to SC21 is progressing alongside several other initiatives including intensive use of web-based information and communication channels to maintain and increase knowledge of the defence sector. “We are committed to increasing our presence and growing our share of this important market by delivering dependable, innovative services that add value for our customers.

TT electronics reveals secret of group companies’ SC21 achievements

Above: Chris Callan of TT electronics Welwyn Components receiving the SC21 award from Wayne Sear of AEC.

Ocelot and Snatch Landrover

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facilities at AB Connectors and New Chapel, as part of the contract AB Connectors provided a final integration of electronic systems to be fitted into the vehicle by Thales.

http://news.bbc.co.uk/1/hi/wales/south_east/8690060.stm

October 2010

Thales Warthog “The Warthog vehicle, with its installed electronic systems, represents a very significant military capability.”Alex Cresswell, Thales UKTT electronics / AB Connectors supported Thales UK during the integration of counter measure protection and radio communication systems on the recently award of 115 Warthog military vehicles which have now been deployed in Afghanistan. These all terrain vehicles being critical to British troops for the enhanced protection and mobility required in this conflict zone. The contract worth £2million involved the manufacture of connectors and harnesses at our

The Warthog vehicles are being equipped by Thales UK near Llanelli

Image courtesy of ST Kinetics

Recently announced contracts from the sector General Dynamics SV FRES General Dynamics has been awarded £500M for the demonstration phase of the SV(FRES) Special Vehicles future Rapid Effect Systems. The SV will replace the CVRT fleet which is now a 40 year old design, launched in 1972. GD will build and integrate 7 vehicles in Spain at their Santa Barbara Sistemas facility. Eventual integration will be in the UK at the Donnington site. It is expected that 245 vehicles will be initially ordered which could rise to 1200. The turret gun will be developed by Lockheed Martin at Ampthill.

Oshkosh FMTV Oshkosh Defense, has received a delivery order more than 3,100 trucks and trailers. They secured this contract from Bae Sealey Texas during 2010.

Selex CTX SELEX Communications, a Finmeccanica company, has won a significant export contract to supply its CTX interface system offering In-The-Ear (ITE) hearing protection for frontline troops involved in extended and intensive operations.

CTX is an intelligent radio interface system providing multiple communication interfaces. In quiet surroundings, CTX users hear normally and can adjust the mode of operation to reduce sound or, conversely, to amplify sound for increased hearing. On detection of impulse noise, CTX limits the sound level to a maximum of 85dB, ensuring hearing protection whilst maintaining full Situational Awareness in any operational environment.

ABC has been involved in designing a new connector and harsh environment cable assembly capable of withstanding water depths of more than 20m and still being operational.

Smiths LCD Chemical Detector Smith’s Detection was awarded in April $24M contract to purchase 5,353 joint chemical agent detectors. ABC have been working with Smiths for the past 2-years providing connectors and cable assemblies for this chemical detection unit used by the army.

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About TT electronics TT electronics plc is a focused, global electronics group supplying leading manufacturers in the defence, aerospace, medical, transportation and industrial markets. The Group consists of five divisions: Components, Sensors, Secure Power, Integrated Manufacturing Services and General Industrial each delivering technology, products and services to customers in target markets worldwide. TT electronics plc operates from headquarters based in Weybridge, Surrey, with more than 20 global manufacturing locations and more than 6,000 employees worldwide.

Additional information is available from our corporate website: http://www.ttelectronics.com

It would be great to get your feedback on this Insight or any other topic that’s on your mind. Comments, view and questions can be e-mailed to me harvey.preston@ttabconnectors.com or you can call me on +44 (0)1443 743401.

Or you can contact liz.blair@ttelectronics.com +44 (0)1670 536 749.

October 2010

BAE HawkBAE Systems secured a new order, worth over £500million, with Hindustan Aeronautics Limited (HAL), to supply products and services to enable a further 57 Hawk Advanced Jet Trainer (AJT) aircraft to be built under licence in India for the Indian Air Force (40 aircraft) and Indian Navy (17 aircraft).

AM General - HMMWV AM General, LLC, was awarded a U.S. Army contract valued at $619 million for 2,526 High Mobility Multipurpose Wheeled Vehicles, or Humvees, for the Afghan police force and National Guard, according to the U.S. Defense Department, together with a further build of 653 for the US Army.