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1 Welcome to ICN s advanced technologies seminar 2012 FORMULA 1 QANTAS AUSTRALIAN GRAND PRIX Friday 16 March 2012, 3.00pm 4.30pm

2 Rakesh Singh Business Development Manager Cablex Pty Ltd

3 Introduction Formed in 1985 Privately owned Australian company Manufacture and Supply of Cable Assemblies and Harnesses, Electromechanical Assemblies and Platform Installation Services Continuous Improvement Program (GO Program Global Expansion + Operational Excellence) Established relationships with Capability Partners PCAs, Machining, Sheet Metal, Design Global recognition for cost competitiveness, schedule adherence and quality services 16

4 Facilities Cablex Australia - East Bentleigh, Melbourne Corporate, Project Management, Engineering and QA No. of employees = 140 Cablex Systems India Bangalore - operational Jun No. of employees = 12 Cablex USA Baltimore (incorporated) Cablex Europe part of Business Plan 17

5 Major Programs Northrop Grumman AEW&C MESA Radar / IFF System Eurocopter NH90 and Tiger Helicopters Airbus Military A330 MRTT Program Lockheed Martin JSF Program Thales Australia Bushmaster Vehicles Alstom X Trapolis Train Project Yarra Trams Smartcard Ticketing Systems Agilent Technologies (ex Varian Inc) Leica Biosystems Redflex Traffic Systems Telecom cables through Ericsson, Alcatel, Siemens, NEC 18

6 Military Aerospace Programs Airbus A330 MRTT Refueler Eurocopter NH90 Multi Role Helicopters F-35 Joint Strike Fighter Boeing AEW+C Surveillance (Wedgetail) Eurocopter Tiger Armed Reconnaissance Helicopter, Tiger 19

7 Australian Defence Programs Thales - Bushmaster BAE Systems M113 G. Dynamics - ASLAV 20

8 Rolling Stock 21

9 Cablex Experience Measures to Enhance Productivity and Competitiveness * Implement Lean Manufacturing - floor layout redesign; improved work flow - cycle time reduction - automated work-in-progress tracking - utilization of visual aids - line balancing; FIFO * Structured In-house Training Program - international workmanship standards - customer specific standards 24

10 Cablex Experience Measures to Enhance Productivity and Competitiveness * Supply Chain Strategy - consolidated shipments - sea freight - supply agreements with key suppliers - Vendor Managed Inventory - leverage EADS global buy prices * Low Cost Manufacturing Base - Bangalore, India - retain centre of excellence in Melbourne 26

11 Cablex Experience New Manufacturing Processes * wire harness manufacture - automatic overbraiding process - laser wire marking process - automatic taping process - automated testing process * semi rigid coaxial cable manufacture - automatic bending and stripping machines - pre-conditioning per Mil standard - precision cable (0.047 / 1.2mm dia) 27

12 New Process Capabilities Automatic Braiding Metal and Nomex 28

13 New Process Capabilities Automatic Taping Semi Rigid Cables Processing Environmental Chamber 29

14 Challenges Cablex Experience * high Australian dollar * tighter banking terms * need for working capital * high compliance cost * availability of relevant skilled personnel * expensive training program - learning curve; 6 months - impact on productivity 30

15 Cablex Experience Opportunities * global demand for quality high end harness manufacturers * identified as strategic supplier for Eurocopter, France * global supply chain opportunities with international primes - Boeing, USA - Northrop Grumman, USA - Raytheon, USA - Airbus Military, Spain - Thales Australia State and Federal Government assistance critical to success - SADI funding for training - Industry Transition Fund - EMDG for export effort - EFIC funding - Aus Industry Capability development program - New Air Combat Capability development program - Industry bodies ICN; AIDN; AJIG 31

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