C-Flex Unparalleled Situational Awareness

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1 SEPTEMBER 2013 C-Flex Unparalleled Situational Awareness Photo: Royal Danish Navy CONTENTS: Side-Looking Airborne Radar to France / 2 // Terma to Deliver Decoy System to the Indonesian Navy PKR Frigate / 3 // C-Flex Systems for the Danish Navy s Patrol Vessels / 4 // Terma s SCANTER 4100 Radar Supports Danish Offshore Patrol Vessels in the Arctic / 5 // X-Ray Technology of F-35 Composite Parts / 6 // SCANTER 4100 Selected for Mid-Life Modernization of Indonesian Navy Warship / 6 // New Generation of Terma Radar Operational Aboard IVER HUITFELDT / 7 Terma s C-Flex system will be among the modernizations in the Mid-Life Upgrade of the Danish Navy s THETIS-class patrol vessels. The THETIS vessels, operational in the waters around Greenland and the Faroe Islands since , will undergo a thorough update, where Terma will replace old C3 systems with our C-Flex Command & Control modules. Furthermore, the four vessels radar systems will be replaced with Terma s SCANTER 4100 Naval Air and Surface radar system. The SCANTER 4100 systems are considered technologically state-of-the-art and are equipped with the newest software and electronics. The SCANTER 4100 s high resolution images offer unique situational awareness for both Search & Rescue missions and missile detection. Terma s SCANTER 4100 radar has also been selected for the mid-life modernization of the Republic of Indonesia s Fatahillah-class corvettes.

2 Side-Looking Airborne Radar to France Terma launched the SLAR in the 1980s, and the equipment is mountable on numerous types of aircraft here Royal Danish Air Force Challenger aircraft with SLAR antenna For the past 30 years, France has been using Terma s Side-Looking Airborne Radar (SLAR). This year, the fifth of eight new systems will be delivered. In 2010, Terma signed an agreement with Laboratoire National d'essais (LNE) to supply eight new SLAR systems for their Beechcraft 300 fleet. The aircraft are operated by the French customs services, and the SLAR systems will be used for ship detection and oil spill monitoring. With its long-range sensors, the SLAR is capable of monitoring out to a distance of nautical miles to each side of the aircraft, whereas ice and vessels rendering strong radar echoes are visible up to 40 nautical miles. The SLAR integrates with a number of other sensors such as AIS (Automatic Identification System), FLIR (Forward Looking InfraRed camera), and video cameras. This year, Terma will deliver the fifth of the eight systems, and the last three will follow within the next two years. In 1982, Terma entered into the first agreement with LNE to supply the SLAR capacity. This first SLAR system flown in France was active in service until year In the late 1990s, the fleet was supplemented with two additional SLAR systems integrated into two new aircraft, which are still in operation. Terma launched the SLAR in the 1980s as a turnkey solution comprising computer, console, and installation, and the equipment is mountable on numerous types of aircraft. The French Beechcraft 300 fleet is equipped with Terma's SLAR system 2 TERMA UPDATE. SEPTEMBER 2013

3 Terma to Deliver Decoy System to the Indonesian Navy PKR Frigate Terma will supply the SKWS Decoy Launching System for the Indonesian Navy PKR frigate. The PKR frigate, which is based on Damen Schelde s famous SIGMA-design, will be equipped with a 24-tube SKWS (Soft Kill Weapon System) designed to provide 360 degrees coverage against attacking anti-ship missiles. Delivery will be completed by the end of Currently, Terma has contracts with four international navies to supply SKWS decoy systems in the coming years. Terma has already supplied the SKWS Decoy Launching System to more than 60 ships around the world, including the Tarik Ben Ziyad-class to the Royal Moroccan Navy also based on Damen Schelde s SIGMA ship design. The selection of Terma s SKWS Decoy Launching System for the PKR frigate is a continuation of the cooperation with the Indonesian Navy (TNI-AL) for supply of SKWS systems to their fleet of frigates and corvettes. The TNI-AL already has SKWS on the Diponegoro-class corvettes. The contract for supply of the SKWS Decoy Launching System to the PKR frigate is the result of a long and trusted collaboration with Damen Schelde Naval Shipbuilding on deliveries of decoy systems for the SIGMA design corvettes and frigates. Terma's 12-tube launcher Terma s SKWS system is a modern decoy launching system that can fire all existing 130 mm decoys also known as SeaGnat decoys. Integrated with the ship s electronic warfare and radar sensor assets, the decoy system will provide fast and intelligent firing of all types of off-board decoys, providing reliable protection from anti-ship missile attacks from all angles. Photo: Damen Schelde Naval Shipbuilding The PKR frigate will be equipped with a 24-tube SKWS Decoy Launching System TERMA UPDATE. SEPTEMBER

4 C-Flex Systems for the Danish Navy s Patrol Vessels Photo: Royal Danish Navy The Danish THETIS vessels are operational in the waters around Greenland and the Faroe Islands Terma s C-Flex system will be among the modernizations in the Mid-Life Upgrade of the Danish Navy s THETISclass patrol vessels. The THETIS vessels, operational in the waters around Greenland and the Faroe Islands since , will undergo a thorough update, where Terma will replace old C3 systems with our C-Flex Command & Control modules. Furthermore, the four vessels radar systems will be replaced with Terma s SCANTER 4100 Naval Air and Surface radar system. The upgrades will be carried out within the next four years, and the current contract has several follow-on options, which the Danish Defence Acquisition and Logistics Organization (DALO) can explore at a later stage. The C-Flex Command & Control system is a modern, flexible solution that supports the full mission cycle for maritime domain security and surveillance by integrating the shipboard sensor and weapon systems to generate a realtime confident situational awareness display. The accuracy and effectiveness of the C-Flex system allows for the Commanding Officer to make time-critical decisions and perform actual target engagement in missions like law enforcement, Search & Rescue, and peace keeping/selfprotection. During the past 10 years, Terma has supplied the C-Flex system in customized versions to a number of navies throughout the world, including the Romanian Navy, the Royal Thai Navy, and other ASEAN countries. 4 TERMA UPDATE. SEPTEMBER 2013

5 Terma s SCANTER 4100 Radar Supports Danish Offshore Patrol Vessels in the Arctic For the past 20 years, the Danish Offshore Patrol Vessels (OPV), the THETIS-class, have been operational in the very demanding environment in the North Atlantic around Greenland and the Faroe Islands. Thus, the OPVs will undergo a comprehensive Mid-Life Upgrade during the next 3-4 years, where they, among other advances, will be equipped with Terma s high-end Naval Air and Surface Surveillance Radar, the SCANTER The contract with the Danish Defence Acquisition and Logistics Organization (DALO) encompasses four SCANTER 4100 radar systems, with an option for an additional four systems. The additional systems are aimed at training at the Danish Navy s schools, as well as extra systems for the KNUD RASMUSSEN-class OPVs, which the Danish government in 2012 decided to expand with an additional ship. Photo: Royal Danish Navy Photo: Royal Danish Navy Furthermore, Terma is to support the deliveries with spare parts and technical preparedness for seven years. The first radar must be operational 18 months after contract signing, and the remaining radars 24 months after signing. Due to Terma s vast experience with radar systems, most recently displayed with the development of our SCANTER 6000 radar, the Danish Navy s new SCANTER 4100 radar systems will be technologically state-of-the-art and equipped with the newest software and electronics resulting in significant improved performance. Terma s SCANTER 4100 radar supports operation of both UAVs and helicopters and provides unsurpassed small target detection in close range and up until the radar horizon in all weather conditions. The SCANTER 4100 s high resolution images offer unique situational awareness for both Search & Rescue missions and missile detection. Terma has delivered the SCANTER 4100 radar for several vessels around the world, including Royal Navy s HMS Clyde, French Navy L Adriot, and the Brazilian Navy s Amazonas-class. In addition to C-Flex, the Danish THETIS vessels will be upgraded with the SCANTER 4100 radar system TERMA UPDATE. SEPTEMBER

6 X-Ray Technology Approved for Inspection of F-35 Composite Parts Terma Aerostructures, the only Danish supplier of advanced aeronautical structural panels and components to Lockheed-Martin, had their digital X-ray equipment approved for inspection of composite parts for the Lockheed Martin F-35 deliveries. After years of persistent test and documentation efforts, Terma Aerostructures recently received the Special Process Approval that allows the use of digital X-ray on Conventional Edges for F-35. Digital X-ray inspection technology replaces traditional use of wet film. This change of technology will speed up the inspection process by a factor of 5-10 and provide the involved parties with identical digital pictures and evidence. This is yet another example of how Terma benefits from years of involvement and investment in the F-35 program. In order to meet the high demand for affordability and timely delivery, it is mandatory for Terma to constantly optimize production processes and invest in new technology, says Jesper Freltoft, Director, Manufacturing Engineering. Terma s involvement in the F-35 Lightning II program since Denmark entered the program in 2002 comprises eight Terma has received the Special Process Approval that allows the use of digital X-ray on Conventional Edges for F-35 different production programs within advanced composite structural parts and electronics. To date, Terma s aggregate order intake relative to the F-35 Lightning II program amounts to approx. USD 425 million. SCANTER 4100 Selected for Mid-Life Modernization of Indonesian Navy Warship Ultra Electronics Command and Control Systems has been contracted by the Republic of Indonesia s Ministry of Defence for the mid-life modernization of the first of the Fatahillah-class corvettes. Terma s SCANTER 4100 radar has been selected by Ultra Electronics for integration as part of the new combat system. Terma and Ultra expect to finalize negotiations this autumn. The SCANTER 4100 systems are considered technologically state-of-the-art and equipped with the newest software and electronics resulting in significant improved performance shared with the SCANTER 6000 radars. The radar supports operation of both UAVs and helicopters and provides unsurpassed small target detection in close range and up until the radar horizon in all weather conditions. Air targets are detected to 96 nm and sea skimming missiles as they meet the radar horizon. The SCANTER 4100s high resolution pictures offer unique situational awareness for all missions from Search & Rescue to missile detection. 6 TERMA UPDATE. SEPTEMBER 2013

7 New Generation of Terma Radar Operational Aboard IVER HUITFELDT Terma s SCANTER 6000 surveillance radar has successfully been operational on board the Danish Navy s frigate IVER HUITFELDT. The frigate was deployed to the Gulf of Aden as part of NATO s Operation Ocean Shield to prevent vessels from being hijacked and their crews being taken hostage. It returned to Denmark in May According to the Royal Danish Navy, the boarding teams of IVER HUITFELDT in total visited 113 ships and minor vessels during the operation. The crew was in contact with 666 merchant vessels to advise them about the risk of attack from pirates in the region. Above all, two Danes and four Filipinos who were held hostage in Somalia for more than two years were released and rescued aboard IVER HUITFELDT. The SCANTER 6000 radar was installed and prepared for operation on the frigate in late The SCANTER 6000 radar was installed and prepared for operation on the frigate in late 2011 Photo: Royal Danish Navy The main task of the SCANTER 6000 radar is to serve as a multi-role sensor system to meet requirements for tactical surface surveillance, Search & Rescue, and helicopter control. It is a coherent X-band 2D Solid State radar developed by Terma to address market requirements for improved surface and low airspace situational awareness. It has been specifically designed as an affordable all-weather sensor solution to plug the gap between standard marine navigation radars and more expensive military surveillance radar systems. The SCANTER 6000 delivers exceptional resolution through the application of advanced hardware design and intelligent processing. The result is a state-of-the-art radar sensor that overcomes the limitations of previous generation radars so as to reliably detect very small targets in high sea and weather clutter backgrounds. In addition, the SCANTER 6000 is the only radar in its class capable of providing simultaneous small target detection, helicopter guidance, and large and small target detection at close and maximum range. Furthermore, it maintains exceptional performance against non-cooperative targets in harsh weather. Due to their unique ability to detect small targets at large distances under severe weather conditions, Terma radars are in high demand in the fight against smugglers, illegal immigrants, pirates, terrorists, and other illegal activities. Terma's SCANTER 6000 naval surveillance radar is already installed on the U.S. Navy's Stiletto vessel and installed on the French navy s cutting edge Offshore Patrol Vessel (OPV) L Adroit. The advanced naval radar is also supplied to the navies of Germany and the UAE and for new OPV programs as well as update programs. Terma has previously supplied radar systems for the Danish Navy vessels. Deliveries comprise the SCANTER 2001 for the ABSALON-class and the SCANTER 4100 which has been installed on the Offshore Patrol Vessels of the»knud RASMUSSEN«-class. The Danish Acquisition and Logistics Organization ordered the SCANTER 4100 for the four OPVs of the THETIS-class as part of a mid-life update program. TERMA UPDATE. SEPTEMBER

8 Financial Highlights USD million 2012/ / / / /09 Revenue Equity Capital, year-end Assets, total Order intake Order book, year-end Number of full-time employees Average for the year 1,080 1,195 1,205 1,261 1,183 Terma in Brief Operating in the aerospace, defense, and security sector, Terma supports customers and partners all over the world. With more than 1,050 committed employees globally, we develop and manufacture mission-critical products and solutions that meet exacting customer requirements. At Terma, we believe in the premise that creating customer value is not just about strong engineering and manufacturing skills. It is also about being able to apply these skills in the context of our customers specific needs. Only through close collaboration and dialog can we deliver a level of partnership and integration unmatched in the industry. Our business activities, products, and systems include: command and control systems; radar systems; self-protection systems for ships and aircraft; space technology; and advanced aerostructures for the aircraft industry. Headquartered in Aarhus, Denmark, Terma has subsidiaries and operations in The Netherlands, Germany, Singapore, India as well as a wholly-owned U.S. subsidiary, Terma North America Inc. Terma North America Inc. is headquartered in Arlington in the Washington D.C. area, with other offices in Georgia, Texas, and Virginia. TERMA UPDATE. SEPTEMBER 2013 Editor Kasper Rasmussen, kar@terma.com Terma A/S Hovmarken Lystrup Denmark T F Terma A/S Vasekær Herlev Denmark T F Terma Singapore Pte. Ltd. 3 International Business Park #03-05 Nordic European Centre Singapore T F Terma North America Inc South Clark Street Century Two, Suite 810 Arlington, VA 22202, USA T +1 (703) F +1 (703) idworks.dk 6486/09.13

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