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simulated position or on simulated A/C trajectory)
􀀹 VIVACE hydraulic task way forward:
- Scenario 2 “detailed model” will be presented at Forum 3.
Structural Monitoring Systems plc
Investor Presentation
15 April 2008
CVM™ “Technology Ready”
Disclaimer: The information contained herein is proprietary to Structural Monitoring Systems plc. and shall not be
duplicated, used or disclosed in whole or in part for any purpose other than that for which it is specifically provided, without
express written permission of Structural Monitoring Systems plc. This restriction does not limit the right of recipient to use
information contained in this document if such information is available from another source without restriction.
CVM™ - MAKING IT PAY
CLEARING BARRIERS NEW MARKETS
CUSTOMER
ACCEPTANCE
2
TESTED
PRODUCTS
QUALIFIED
PROCESSES
& STAFF
REGULATORY
ACCREDITION
MILESTONES
• ACCREDITION of CVM products in both
strategic civilian and military aerospace
markets.
• INSTALLATION on Boeing commercial aircraft
structure.
• Airbus “CVM is TECHNOLOGY READY”
3
• Firm relationships with the FOUR LARGEST
commercial aircraft manufacturers: Airbus,
Boeing, Bombardier, and Embraer.
• Increasing numbers of customer who want use
CVM on their aircraft.
• Order volumes increasing and sales revenue
are set to increase.
SMS has achieved “first mover” status
in a new area of business with
high margins and high barriers to entry.
Sandia Certificate of Recognition For
First Installation On A Boeing Aircraft
STATUS
• Operators of Boeing aircraft supporting roll out of CVM for specific
applications due in mid-2008.
• Airbus exposing CVM benefits to Airbus operators, new market
opens.
• New strategic relationships in civilian aerospace - Bombardier and
Embraer
• New strategic relationships in military aerospace sectors in UK,
4
Europe, USA and China – first fleet wide military applications
expected in 2008.
• Non-aerospace markets open with CVM Switch product ,automotive
testing, bridge monitoring in USA and large mining equipment.
• New generation CVM technology for new-build aircraft, and in-flight
monitoring systems for Airbus and Embraer in civilian aerospace and
EADS in military aerospace..
MARKET OVERVIEW
• Aircraft - Retrofit: “FIRST MOVER” position in LARGE
emerging market for in-situ structural monitoring on
aging aircraft.
– VALUE PROPOSITION accepted by US airlines.
The Market for CVM™ stems from the
Value created by enabling reduced
Cost of Ownership, and increased
Asset Productivity.
5
• Aircraft - New Build: Largest aircraft manufacturers on
board for integration of CVM technology into new build
metallic and composite aircraft structures.
• Test / Infrastructure: Product diversification of CVM
into high value markets, such as the automotive test,
bridge infrastructure and mining equipment.
• Military Vehicles: monitoring of armoured fighting
vehicles.
Market Opportunity – Aging Aircraft
• The average US military aircraft is 16 years old.
• The average US civil aircraft is 14 years old.
• Increasing average US military and civil aircraft
fleet age a major issue.
• US Government – Transport House Committee
hearing of issues associated with airline nonconformance
with FAA mandatory inspections –
Number of
Aircraft
Age 10+
years
Age 20+
years
Major US Airlines 3,696 90% 41%
International Airlines 3,646 83% 36%
US Cargo Carriers 982 97% 81%
International Cargo Carriers 95 96% 84%
US Air Force 4,421 71% 42%
6
conformance fleets grounded and widespread media reports -
FAA crackdown.
• Growing interest by the US military in the use of
Condition Based Maintenance using sensor
based systems to monitor the condition of fixed
and rotary wing aircraft structures.
• CVM instrumentation and sensors provide an
ACCREDITED cost effective means of
monitoring airframe structural integrity, and
enables efficient data collection and analysis.
USAF Aircraft Fleet Ages
Progress In The Civil Aircraft Retrofit Sector -
SMS is working closely with the world’s four largest civil aircraft manufacturers
• Boeing
– CVM included into the Boeing Common
Methods NDT Manual.
　
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