PHOTONIS

RESEARCH ANALYSIS
GROUP 3
 PRODUCTS

1. Advanced performance detector camera

2. Channeltron electron multipliers

 PRODUCTS

3. Electron Generator

4. Fibber optic light guides

 PRODUCTS

5. Glass coated wires

6. Image intensifier tubes

 PRODUCTS

7. Long life micro channel plates

8. Low light level imaging sensors

 PRODUCTS

9. Neutron and gamma detectors

10. Photon detectors

 PRODUCTS

11. Power tubes

12. Resistive glass

 PRODUCTS

13. Time of flight detectors

14. Travelling wave tube & accessories

 Markets

1. Defence
2. Research applications
3. Security surveillance
4. Space exploration
5. Nuclear instrumentation
6. Physics research
7. Analytical instruments
8. Industry application
9. Communication
 Competitors

SAIC : Science application international

- Is one of the biggest competitors to PHOTONIS
- Provides technical support
- Founded – 1969
- Located – Reston, Virginia (USA)
 Competitors

AMUN :
Operates in electrical and electronic goods
industry
Generates 315% revenue of photonis
Located in Antwerp, Antwerp.
Founded in 2007
 Competitors

SRI International : NGO/NPO

Founded – 1946
Menlo park, California
Has 1650 more employees than PHOTONIS
 Competitors

MELEXIS :
3rd biggest competitor of PHOTONIS
Founded – 1988
Leper, west Flanders.
Operates in the semi conductor industry
Generates 593.9M$ more revenue than PHOTONIS
 Number of employees

PHOTONIS - 1000
AMUN - 152
SRI INTERNATIONAL - 2650
MELEXIS - 1200
FAIR CHILD IMAGING - 10
AEROSPACE - 119
DRAPER - 951
E2V - 1750
WestED - 193
SAIC – 15,000
BATTELLE – 21,927
 Sales

• Photonis has experienced a prolonged period of weakening revenues over the last three
years.

• Most recently, the company's sales declined by 6% in FY 2016 and a further 13% in the first
nine months of FY 2017 compared to the same periods in prior year.

• This decline was mainly driven by lower demand for the company's core night vision
products and unfavourable product mix towards lower value components.

• The decline in sales had a disproportionately negative impact on group profitability.

EBITDA (as reported by the company) decreased by 21% to EUR38 million in FY 2016 and
by 51% in the first nine months of FY 2017 compared to the same period in prior year.
 Sales

• The drop in EBITDA in Q1-Q3 2017, which was driven by the pressure on sales, was only partly mitigated by
a cost cutting plan put in place by the company which generated savings of EUR2 million in manufacturing
overheads and EUR1 million in general and administrative expenses during the period.

• The drop in EBITDA resulted in a further deterioration of Photonis' adjusted gross leverage towards 9x as of
the last twelve months (LTM) to 30 September 2017 (based on unaudited management accounts and an
LTM EBITDA of EUR30 million as reported by the company) from below 8x as of the end of FY 2016 (or 8.9x
as calculated by Moody's including the negative impact of non-recurring items and write-off of inventories,
among others, as disclosed in the 2016 audited annual accounts).

• While Moody's positively notes the sale of a technology transfer contract with India should bring a boost to
the company's sales and EBITDA of c.EUR10 million and EUR8 million, respectively, a portion of which will be
invoiced in FY 2017 with the remainder to be invoiced in H1 2018, this represents a one-off project that the
rating agency does not anticipate at this stage to be replicated beyond 2018 in other countries.
 COMMUNICATION

• The PHOTONIS Power and Microwave product line, one of the broadest in the industry,
encompasses tubes and associated circuit components that are designed to cover
virtually every need in this field.
• Output capabilities range from a few watts to megawatts, and frequency coverage in our
power tubes extends from DC to 1400MHz power tubes.

• Recent acquisition of Triton ETD adds Traveling Wave Tubes and Microwave Power
Modules and their related accessories to this product group, providing electronic warfare,
signal jamming, satellite communications and weapon system simulator application
support in ranges from 2-37GHz.

• With over 60 years of outstanding power tube experience and an established reputation
for production of tubes with excellent performance, quality, and life, our engineers
continue to add innovative tube and associated circuit designs for new areas of customer
need.
 COMMUNICATION

 PHOTONIS & PHOTONIS USA PENNSYLVANIA INC offer the power tube user a reliable and quality product
with dependable production capacity and capabilities, backed by strong application and design
engineering support.

 The PHOTONIS Power and Microwave product line encompasses a wide variety of tubes and their
associated circuitry components designed for specialty use.

 We manufacture power tubes, gridded power tubes, tetrodes, vacuum electron tubes, traveling wave
tubes, microwave power modules and triodes for use in defence, communications, broadcast, research
and other applications.

 Output capabilities range from a few watts to megawatts, and frequency coverage extends from DC to
over 1400 MHz for power tubes and a range of products supporting 2-37GHz for traveling wave tubes and
microwave power modules.
 COMMUNICATION

• Our power tubes can be found across the globe, from mobile communications applications to physics
research and were designed to meet very stringent environmental and technical specifications.

• With over 70 years of outstanding Power Tube experience through our RCA, BURLE and Triton ETD
heritage, PHOTONIS has established a reputation for product performance, quality, and life.

• PHOTONIS engineers continue to add innovative tube and associated circuit designs for new
applications. If you have a specific need for a custom power tube, contact us and let our experience
work for you.

• Quality control is an integral part of the PHOTONIS Power and Microwave operation and is certified
under ISO 9001:2008 Quality Management System.

• This adherence to quality ensures you get the right product for the right application with the high level
of quality and reliability you expect from PHOTONIS.
 The Impact of Micro and Macro Environment Factors on Marketing

• There are two kinds of external marketing environments; micro and

macro. These environments’ factors are beyond the control of marketers,
but they still influence the decisions made when creating a strategic
marketing strategy.
 Micro and Macro Environment

Micro Environment Factors :

1. The suppliers:

 Suppliers can control the success of the business when they hold the power.
The supplier holds the power when they are the only or the largest supplier of
their goods. The buyer is not vital to the supplier’s business & the supplier’s
product is a core part of the buyer’s finished product and/or business.

2. The resellers:

 If the product the organisation produces is taken to market by 3rd party resellers or
market intermediaries such as retailers, wholesalers, etc then the marketing
success is impacted by those 3rd party resellers. For example, if a retail seller is a
reputable name then this reputation can be leveraged in the marketing of the
product.
 Micro and Macro Environment

Micro Environment Factors :

3. The customers:

 Who the customers are (B2B or B2C, local or international, etc.) and their
reasons for buying the product will play a large role in how you approach the
marketing of your products and services to them.

4. The competition:

 Those who sell same or similar products and services as your organisation are
your market competition, and the way they sell needs to be taken into account.
How does their price and product differentiation impact you? How can you
leverage this to reap better results and get ahead of them?
 Micro and Macro Environment

Micro Environment Factors :

5. The Public:

 Your organisation has a duty to satisfy the public. Any actions of your company must
be considered from the angle of the public and how they are affected. The public have
the power to help you reach your goals just as they can also prevent you from
achieving them.
 Micro and Macro Environment

Macro Environment Factors :

1. Demographic forces:

Different market segments are typically impacted by

common demographic forces, including country/region,
age, ethnicity, education level, household lifestyle, cultural
characteristics and movements.

2. Economic factors:

The economic environment can impact both the

organisation’s production and the consumer’s decision-
making process.
 Micro and Macro Environment

Macro Environment Factors :

3. Natural/physical forces:

The Earth’s renewal of its natural resources such as forests, agricultural products, marine
products, etc must be considered. There are also the natural non-renewable resources
such as oil, coal, minerals, etc that may also impact the organisation’s production.

4. Technological factors:

The skills and knowledge applied to the production, and the technology and materials
needed for production of products and services can also impact the smooth running of
the business and must be considered.
Thank You