Merger proposal between and

Transcription

1 Merger proposal between and 29 May 2006

2 Agenda The transaction Presentation of the merged company Financials highlights Shareholder matters Timetable 2

3 The transaction main terms Eltek ASA ( Eltek ) and Nera ASA ( Nera ) have agreed to seek to finalise a merger agreement Exchange ratio: 1 Eltek share per 5.75 Nera shares Key conditions: Due diligence Regulatory approvals Shareholder approvals Morten Angelil will be CEO of the combined group Signing of merger plan is expected ultimo June

4 The transaction Presentation of the merged company Financial highlights Shareholder matters Timetable 4

5 Eltek and Nera in brief Eltek ASA Nera ASA One of the world leaders in DC Power and Energy Systems to telecom operators and OEMs One of the world leaders in the field of microwave transmission and satellite communication Revenues of NOK 2,085 million in 2005 (+28%), EBIT of NOK 227 million Revenues of NOK 2,642 million in 2005 (+12%), EBIT of NOK 55 million Global company 50% of revenue from EMEA, 27% from Asia Pacific and 23% from Americas Global company 41% of revenue from EMEA, 33% from Asia Pacific and 26% from Americas Listed on the Oslo Stock Exchange, with a market cap of approximately NOK 3 bn and 1,300 employees Listed on the Oslo Stock Exchange, with a market cap of approximately NOK 1.5 bn and 1,400 employees 5

6 Transaction rationale The merger will create a technology equipment supplier with sustainable leading positions in Transmission Satellite communication Telecom Power Eltek -Nera will be a uniquely positioned global telecom equipment company Global coverage First tier customer base Leading engineering capabilities 6 The merger will create value, through Scale effects in sales Scale effects in sourcing and logistics Exploit synergies in overlapping functions

7 Strengthen the global footprint Nera sites Eltek sites Nera and Eltek are represented globally and can exploit the combined footprint Co-location opportunities exist in many countries 7 NOKm NOKm NOKm Americas 1, Eltek Nera , EMEA 2, Eltek Nera , Asia Pacific 1, Eltek Nera

8 Strong customer base for cross selling Eltek Nera 8

9 Nera and Eltek possess complementary strengths Both companies have Innovative and strong product portfolios Highly competent organisations Strong brand names in their niches Strong and long-lasting customer relations A higher volume base will increase leverage and improve results 9

10 The telecom industry is consolidating Ericsson Marconi Lucent Alcatel Telefonica O 2 Nextel Sprint Cingular AT&T Wireless AT&T SBC BellSouth Verizon MCI and more 10

11 and scale is increasingly important The combined company will be able to: Push more volume through the global distribution networks Wide but thin coverage in certain areas Improve its sourcing Increased purchasing power will reduce cost of goods sold Increased leverage of the R&D capabilities 11

12 Key focus areas for the combined company Improve the leverage on our sales channels Pursue a strong sales culture Push more volume through the network Exploit cross-selling opportunities Further deepen the customer relationships Implement best practice in production and logistics Consolidation of overlapping functions 12

13 The transaction Presentation of the merged company Financial highlights Shareholder matters Timetable 13

14 Key financials Combined* NOKm Eltek Nera Eltek Nera Eltek Nera Q06 Total revenue 1,049 2,253 1,634 2,360 2,085 2,642 4,727 1,305 Revenue growth 18.1 % -7.9 % 55.8 % 5.2 % 27.6 % 11.5 % 18.1 % 37.1 % Total expenses -1,004-2,198-1,449-2,371-1,830-2,529-4,359-1,216 EBITDA EBITDA-margin 4.3 % 2.4 % 11.3 % -0.5 % 12.3 % 4.3 % 7.8 % 6.8 % EBIT** EBIT-margin 1.8 % -1.1 % 10.0 % -3.1 % 10.9 % 2.1 % 6.0 % 4.2 % PTP Net income after min.int Earnings accretive for all shareholders in 2007 Note (*): No pro forma adjustments made Note (**): EBIT excluding non-recurring items Figures for 2003 according to NGAAP, 2004 and 2005 according to IFRS 14

15 The transaction Presentation of the merged company Financials highlights Shareholder matters Timetable 15

16 Current shareholder structure Eltek Nera # Shareholder Share 1 CITIGROUP GLOBAL MARKETS INC ,42 % 2 CLEO CAPITAL AS ,44 % 3 FOLKETRYGDFONDET ,21 % 4 UBS (LUXEMBOURG) S.A ,79 % 5 ORKLA ASA ,23 % 6 MORGAN STANLEY & CO. INC ,19 % 7 JPMORGAN CHASE BANK ,08 % 8 NATIONAL FINANCIAL SERVICES LLC ,10 % 9 SKANDINAVISKA ENSKILDA BANKEN ,03 % 10 STOREBRAND LIVSFORSIKRING AS ,93 % 11 MP PENSJON ,66 % 12 Privat investor ,41 % 13 STATE STREET BANK & TRUST CO ,12 % 14 COMMERZBANK AG ,04 % 15 UBS AG, LONDON BRANCH ,98 % 16 KLP FORSIKRING AKSJER ,98 % 17 MLPF&S NOREWGIAN CUSTODY ACCOUNT ,97 % 18 DEUTSCHE BANK AG LONDON ,92 % 19 OKO OSUUSPANKKIEN KESKUSPANKKI ,92 % 20 HSBC SECURITIES SERVICES (LUX) SA ,77 % Top 20 shareholders ,2 % # Shareholder Share 1 CREDIT SUISSE SECURITIES ,82 % 2 FOLKETRYGDFONDET ,67 % 3 ORKLA ASA ,50 % 4 ODIN NORGE ,12 % 5 CREDIT SUISSE SECURITIES ,49 % 6 MORGAN STANLEY & CO. INC ,90 % 7 SKAGEN VEKST ,81 % 8 SKANDINAVISKA ENSKILDA BANKEN ,52 % 9 DEUTSCHE BANK AG LONDON ,74 % 10 ODIN NORDEN ,21 % 11 CREDIT SUISSE SECURITIES (USA) LLC ,08 % 12 ARENDALS FOSSEKOMPANI ASA ,02 % 13 JPMORGAN CHASE BANK ,97 % 14 STYRBJØRN AS ,62 % 15 NORDEA VEKST AKSJEFONDET ,48 % 16 VICAMA AS ,38 % 17 ISINVEST AS ,13 % 18 NERA ASA ,97 % 19 VITAL FORSIKRING ASA(OMLØP) ,84 % 20 HOLBERG NORGE VERDIPAPIRFONDET ,82 % Top 20 shareholders ,1 % 16 Source: Manamind top 20

17 Pro forma shareholder structure post merger # Shareholder Share 1 CITIGROUP GLOBAL MARKETS INC ,51 % 2 FOLKETRYGDFONDET ,99 % 3 ORKLA ASA ,72 % 4 CLEO CAPITAL AS ,08 % 5 CREDIT SUISSE SECURITIES NOM ,70 % 6 UBS (LUXEMBOURG) S.A ,09 % 7 ODIN NORGE ,44 % 8 MORGAN STANLEY & CO. INC ,92 % 9 JPMORGAN CHASE BANK ,86 % 10 CREDIT SUISSE SECURITIES ,79 % 11 MORGAN STANLEY & CO. INC ,55 % 12 SKAGEN VEKST ,51 % 13 SKANDINAVISKA ENSKILDA BANKEN ,40 % 14 NATIONAL FINANCIAL SERVICES LLC ,26 % 15 SKANDINAVISKA ENSKILDA BANKEN ,22 % 16 STOREBRAND LIVSFORSIKRING AS ,16 % 17 DEUTSCHE BANK AG LONDON ,09 % 18 MP PENSJON ,00 % 19 ODIN NORDEN ,88 % 20 PRIVATE INVESTOR ,85 % Top 20 in Newco ,0 % Total number of outstanding shares after the merger is approximately 54 million Eltek and Nera shareholders to own approximately 60% and 40% of the combined entity, respectively 17

18 The transaction Presentation of the merged company Financials highlights Shareholder matters Timetable 18

19 Indicative timetable Announcement Board approvals of merger plan Prospectus publication Extraordinary General Meetings Closing 29 May Ultimo June July August October 19