The company and its divisions

Ultra concentrates on providing its customers with capabilities and systems using the Group's electronic and software solutions for niche markets in defence, security, transport and energy. Within these market sectors Ultra focuses on developing specialist capabilities that provide differentiated solutions to customers' requirements.

Why Ultra is different

Ultra Electronics is an internationally successful defence, security, transport and energy company with a long, consistent track record of development and growth, achieving 16% compound annual growth of total shareholder return since flotation in 1996.

Ultra businesses constantly innovate to create solutions to customer requirements that are different from and better than those of the Group's competitors. By applying these differentiated solutions to a wide range of international platforms and programmes, Ultra has built an exceptionally broad range of niche market positions.

Ultra offers support to its customers through the design, delivery and support phases of a programme. Ultra businesses have a high degree of operational autonomy so that they may provide exceptionally agile and responsive support to customers and partners.

Major market sectors

The major market sectors in which Ultra operates are:

battlespace IT systems and equipment
sonar systems
equipment for civil and military aircraft
specialist equipment for defence and security applications
specialist systems and equipment for the transport and energy sectors


Revenue by sector			Revenue by region

1	Battlespace IT	37%	1	United Kingdom	26%
2	Sonar	17%	2	North America	54%
3	Civil equipment	12%	3	Middle East & Asia Pacific	11%
4	Defence equipment & consultancy	13%	4	Mainland Europe	9%
5	Civil aircraft equipment	8%
6	Military aircraft equipment	13%

Major customers

Ultra's independence allows it to work with all of the world's major defence, security, transport and energy customers and prime contractors including:

● BAE Systems ● Boeing
● British Energy (EdF) ● EADS ● GE
● Kongsberg ● L3 ● Lockheed Martin
● Raytheon ● Rolls-Royce ● Thales
● UAE Armed Forces ● UK MoD
● US DoD ● UTC

Structure

Operationally, the Group is organised into three divisions:
Aircraft & Vehicle Systems, Information & Power Systems and Tactical & Sonar Systems.

*Footnote

headline operating profit is before amortisation of intangibles arising on acquisition and profit on disposal of property, plant and equipment net of property-related provisions. IFRS profit from operations £76.0m (2008: £64.1m). headline profit before tax and headline earnings per share are before amortisation of intangibles arising on acquisition, fair value movements on derivatives, profit on disposal of property, plant and equipment net of property-related provisions and loss on closing out foreign currency hedging contracts. Basic EPS 115.1p (2008: 2.6p). operating cash flow is cash generated by operations, less net capital expenditure, R&D and LTIP share purchases. cash conversion is cash generated by operations, less net capital expenditure, R&D and LTIP share purchases as % of profit from operations before amortisation of intangibles arising on acquisition and profit on disposal of property, plant and equipment net of property-related provisions. net debt comprises bank overdrafts and loans less cash and cash equivalents. organic revenue/profit growth is the annual rate of increase in revenue/profit that was achieved, assuming that acquisitions made during the prior year were only included for the same proportion of the current year.

Aircraft & Vehicle
Systems

Major systems and products

Airframe ice protection systems; Active noise and vibration control; Aircraft system electronics; Aircraft system test equipment; Consultancy and training solutions; High integrity data bus network nodes; Armoured vehicle electronic systems; High integrity software and systems; HiPPAG airborne compressors; Human/machine interface equipment; Manned and unmanned vehicle control equipment; Portable oxygen generating equipment; Specialist pneumatic sub-systems; Remote weapon station control equipment; Performance consultancy; Rugged aircraft harness systems; Specialist sensors; Structural health monitoring systems; Training solutions

Employees

980

Locations in:

United Kingdom, North America and the UAE

Revenue

£157.6m

2008 £130.1m

+21%

2008 +30%

24% of Group revenue

Headline operating profit*

£20.9m

2008 £19.7m

+6%

2008 +22%

21% of Group headline
operating profit*

2009 key events

first flights of the Boeing 787, Airbus A400M and Gulfstream G650 aircraft, on each of which Ultra has equipment that will move to the production phase
a contract, with production options, for final development of the control electronics of the cannon specified for the British Army's upgraded Warrior and new FRES SV armoured vehicles
progress through flight test of the F-35 Joint Strike Fighter for which Ultra will supply engine and lift fan ice protection systems and its HiPPAG pneumatic compressors for weapons release and missile cooling