English version - Hexagon Composites ASA

COMROD COMMUNICATION ASA – LISTING ON THE OSLO STOCK EXCHANGE
and fittings. There are a number of players and the market can be characterized as fragmented. It is
also a very competitive market.
Since the market is moving towards a commodity type market, relationships are becoming less
important, whereas price is becoming an increasingly important factor.
6.1.4 The market for power supplies
The market for power supply products is very fragmented with many small suppliers. Comrod is at an
early stage in its ownership of this product range. However with the potential and strategic market
position that Comrod/Lerc possesses it gives this niche product range a superior position.
This is a segment where most of the contracts are based on inquiries, offers and purchase orders. The
trends for this segment are similar to the trends for the antenna segment. On the product side, the
demand for LiIon and smart batteries seem to replace the demand for NiCad batteries. There is also a
trend towards more compact products and “smart solutions” as is also the case for antennas.
The type of customers match the market for antennas to a large degree and there is substantial
opportunities with cross-selling for suppliers offering both antennas and power supplies.
6.2 Market shares and competition
In the following, competition and market shares for each of the Company’s main product groups, i.e.
antennas, masts, industrial products and power supplies, are described in more detail.
It should be noted though, that some level of discretion regarding the actual deliveries and the value of
the contracts is typical for the defence sector. Given the characteristics of the market and the type of
products delivered, a number of the players, including suppliers, OEMs and end-users, do not disclose
information, or they only disclose selected information, regarding the contracts entered into. In many
cases customers also prefer to remain anonymous. As a result, it is not possible to estimate the exact
size of the total market for the products. Based on its market knowledge the Company has, however,
estimated market sizes and market shares for the main market segments in which the Company
competes. See more information in the following sections.
6.2.1 Antennas
The global market for composite antenna products in which Comrod competes, is estimated to
approximately NOK 912 million, of which the European market is estimated to NOK 283 million, the
US market is estimated to NOK 379 million and other regions make up NOK 250 million.
Competition in the antenna market
The Company had a combined market share of approximately 12% of the global market in 2006. This
include antennas for the defence segment as well as marine antennas for the commercial segment.
The market for the Company’s antenna products is relatively fragmented. However, the five largest
players, Comrod, Shakespeare, RA Miller and Antenna Products, control approximately 36% of the
market. During 2006 Comrod slightly increased its total market share, and is estimated to have a
market share of 13.5% at the end of 2006.
The table below gives a breakdown of the market and competition in Europe and the US for the
segment of the antenna market in which the Company operates.
50