Pipehawk plc Annual General Meeting 9 th December

Pipehawk plc Annual General Meeting 9 th December 2010

Nick Field - MD • Progress and Achievements • Strategy • Next Steps

Progress To Date • Sales / Business Development • • • Grown our client base to include 4 new customers Increased substantially our quotation quota. Quotations generate orders ! Recruited a Business Development Manager to grow our consultancy and product business Opened our client industries to automotive and rail sectors Expanded our Consultancy business from 1 to 4 placements Won and delivered projects with much potential for repeat orders Moved our project business to far higher contribution Explored product idea’s with a view to manufacture at QM or offshore (volume dependant) Continued to develop opportunities with PERA Established a specialism in electric vehicles based on our extensive knowledge in high power systems • First consultant role now in place with a leading academy. Quoted a number of service contracts that will form the roots of our service business.

• Operations • • • Progress To Date Extensive reorganisation of business to align to client base and strategy Driven out substantial cost and inefficiency through reorganisation and re work of systems Recruited a senior manager to drive forward our special projects business unit Recruited two new engineers to strengthen our systems capability Re-skilled our business with the right skills to deliver a diverse range of turnkey solutions Successfully delivered a number of turnkey projects to an expanding client base Opened a new facility in Worcester to provide us with space and tools to undertake much larger projects Established relationships with off shore manufacturing companies Expanded our manufacturing capability in Worcester Recruited skills to fulfil our contractual obligations

How ? • How do we achieve our targets ? • • • Diversification (Industries and Services) Increased customer base (focused in automotive, rail, aerospace, pharmaceutical and military) Blend organic growth and later strategic acquisition Focus on key strengths (electronics, mechanics and software) Balanced, controlled risk by blending – Special Projects – Consultancy and Service – Products

Strategic Goals o Projects – Focused on our core skills to control risk • • Test and ATE based systems Vision systems Component inspection systems RF systems High power, power distribution and power management Special purpose machining systems (Rapid feed and cut) Robotic assembly and test systems – Focusing on our core skills controls and minimises risk associated with special projects, maximises profit and customer retainment. – Retains QM’s technical edge.

Strategic Goals o Consultancy focused on real customer needs • Project Management • Project Health Checks • Production of RFQs • Project Engineering • Business & product strategy development • Development & manufacturing methods • Diagnostic strategy & solutions • Quality systems • Parts & logistics operations o Engineering Services focused on today’s customer needs • Diagnostic software and applications authoring • Manufacturing production and test systems • ECU and Vehicle architecture design • Electric vehicle systems • Test and simulation • Validation • Off-site Engineering

Strategic Goals o Products • Develop our own and customer specific products in the fields of • • • Electrical and electronic test Programming Mechanical and electronic special tools Low volume control units High power management • QM and customer branded products • Target lower volume (10 – 10, 000) to avoid main stream and highly cost competitive markets o Increased added value / profit o Less competition o Less sensitive / appealing to low cost (off shore) manufacturing territories o Retention of IP o On higher volumes retain design and control but consider sub contract to low cost manufacturing territories

Next Steps • Sales / Business Development • • To establish our first service contracts To recruit two Field Sales Engineers for projects Grow our consultancy business unit to 8 engineers by end FY (opportunities exist – need to find people) Continue to expand our client base – target 2 -3 new clients each quarter. Develop our product business 1 -2 new products by end FY Identify and consider possible acquisition Develop our specialism in electric / hybrid vehicles, design and simulation Improve our marketing for existing products e. g PERA

Next Steps • Operations • • • Recruitment of a Controls Engineer Recruitment of skills to fulfil opportunities within consultancy Exploring the potential to bring two existing Worcester facilities under one roof • Reduce costs, increase economies • Provide more manufacturing space • Enable a small machine shop in house Recruitment of Field Service Engineer • To fulfil service contracts • Provide a valuable lead in to potential opportunities • Improve our customer support Review our in source / outsource policies

Adien Limited Bob Tallentire – MD ▼The market place ▼Opportunities ▼Outlook

The Market Place ▼Fragmented industry ▼Competitors ▼Numbers ▼Results ▼Very competitive ▼Emphasis on cost saving through innovation

The Market Place ▼Private Housebuilders ▼Construction 3 rd December 2010 - "It is very clear that the economy cannot rely on a major contribution from construction going forward. "

Opportunities ▼Infrastructure projects “Infrastructure is the sector predicted to be the strongest over the next five-year forecast period, with an annual average growth rate of 8. 5% between 2010 and 2014”

Outlook ▼Fragmented industry must consolidate ▼Infrastructure projects going ahead but least cost solutions needed ▼Innovative cost saving products required – e. Spott

e-Safe Development Dr Richard Chignell Copyright Pipe. Hawk plc 2010

e-Safe Background Low Cost GPR Safety Tool to allow Unskilled Operators to check for Obstructions prior to Excavation Higher Volume Product requiring Pipe. Hawk plc to have a Marketing/Sales Partner Late 2009 Discussions were held with a Number of Potential Partners All expressed interest but wanted to see more progress particularly in the User Interface Copyright Pipe. Hawk plc 2010 17

e-Safe Development Goals Achieved Detailed Cost Exercise shows that the Cost Requirements are achievable Early versions of the necessary Software have been demonstrated running without a PC The Software necessary to realise the User Interface is defined and tested and is being ported to the Hardware for Field Evaluation Plan to resume Partner Discussions in 2011 Copyright Pipe. Hawk plc 2010