ANNUAL REPORT & ACCOUNTS...switchgear monitoring and protection business, now has a presence in 29 countries and has secured recent contract wins with global switchgear OEMs after

ANNUAL REPORT & ACCOUNTS

to June 2014

Transense Technologies PLC Annual Report & Accounts 2014 Page 2 Page 3

Three Trading DivisonsLeveraging the Company’s IP and expertise

Transense Group Structure

www.transense.co.uk

WelcomeTransense AnnualReport &Accounts 2014

www.trans-logik.comBicester, Oxon, UK

www.intellisaw.comBoston, MA, USA

Translogik IntelliSAW SAWSense Transense Technologies

www.sawsense.comBicester, Oxon, UK

www.transense.co.ukBicester, Oxon, UK

Tyre Management Solutions for the mining, commercial vehicle and passenger car markets. A range of products for remotely monitoring tyre temperatures, pressures, tread depths and a variety of other key parameters to extend the life of tyres, reduce fuel costs and improve safety.

Continuous, wireless, critical asset monitoring systems for the power transmission, power distribution, and industrial markets. Leveraging Transense’s SAW technology to provide real-time temperature monitoring for electrical switchgear and various other applications.

New trading division focused on commercialising the Company’s torque, temperature and pressure sensors. Supporting longer-term development projects with existing partners as well as in other new areas of opportunity, both in the automotive and non-automotive fields.

Transense Technologies is the parent Company, holding Group IP and providing technical and R&D resource to the three trading divisions. Developer of wireless, battery-less and battery based sensor systems using Surface Acoustic Wave (SAW) and Radio Frequency (RF) technologies.

The Transense Group consists of three Trading Divisons. These have been established to target specific global markets where the Group’s technology offers significant advantages over competing technologies and products.

SAW

2 Transense Group Divisions

4 Contents

5 Chairman’s Statement

6 CEO Report

8 Corporate Information

10 Strategic Report

54 Statement of Corporate Governance

56 Remuneration Report

59 Directors’ Report

62 Statement of directors’ responsibilities in respect of the Strategic Report,

Directors’ Report and the Financial Statements

63 Independent Auditor’s report to the members of Transense Technologies plc

65 Consolidated Statement of Comprehensive Income

66 Consolidated Balance Sheet

67 Company Balance Sheet

68 Statement of Changes in Equity

69 Consolidated and Company Cash Flow Statement

70 Notes to the Financial Statements

Page 4 Page 5

Transense is pleased to announce its full year results for the year ending 30 June 2014.

Sales for the year were £3.6m (FY to the 30 June 2013 - £1.5m), a year-on-year increase of approximately 138%. The Company achieved a maiden EBITDA* profit of £0.02m for the first half, but as highlighted in the most recent trading update, the Company recorded a loss for the full year of £1m. This is due to delays in orders which are still anticipated but were originally expected to conclude before the year end.

Given the strong top line growth, robust gross margins in line with expectations and lower than forecast overheads, the

EBITDA* loss for the financial year is trending favourably and was less than half that sustained in the previous year.

As a result of the increase in turnover, we have also experienced a substantial increase in the working capital requirement to fund the increased debtors and stock requirements.

All three trading divisions are seeing growing interest in their products and increased market awareness of the commercial and technological benefits they offer. Translogik, our tyre management solutions business, has seen its customer numbers double to more than 120 during the year with record levels of sales and new enquiries. IntelliSAW, our electrical switchgear monitoring and protection business, now has a presence in 29 countries and has secured recent contract wins with global switchgear OEMs after lengthy system pilots, lasting up to two years. Despite the longer sales cycle for IntelliSAW, these wins encourage our belief that the considerable number of trials underway around the globe should translate into significant orders. SAWSense, our torque sensor business, has several projects that offer the potential for commercialisation of its SAW (Surface Acoustic Wave) technology in 2015.

Transense recently moved into new premises in Weston on the Green, a few miles from the previous office location in Upper Heyford, which is being redeveloped. The new site offers more space to support the Company’s growth plans, and provides higher

quality facilities to enable the Company to maintain itself as a centre of technical excellence.

Although larger individual contracts are likely to continue to cause volatility in reported results and delays in finalising orders, if continued, could have an adverse effect on future results, the considerable pipeline of contract opportunities across the division gives the Board confidence in achieving another year of solid growth, building on the progress achieved to date.

David M Ford

Chairman

22nd October 2014

Chairman’s statementContents

* EBITDA is the Earnings Before Interest, Taxation, Depreciation & Amortisation, and is calculated by taking the operating loss and adding back depreciation & amortisation

Transense Technologies PLC Annual Report & Accounts 2014 Page 6 Transense Technologies PLC Annual Report & Accounts 2014 Page 7

Chief Executive’s report

Further field trials and deployments are continuing in Australia.

IntelliSAW

IntelliSAW has expanded its global network and now has distributors in 29 different countries. Sales have been below expectations and we believe this to have been largely caused by the extended pilots and complex validation processes required for potential customers to implement a new product to such critical assets. A recent contract win with one of the world’s top three switchgear OEMs in China came about after completion of a project that began over two years ago. Now that these validation processes have been completed by several major industrial customers, IntelliSAW expects adoption of the IS485 system on a larger scale. Additionally, as a reflection of the products’ increasing industry recognition, a number of end-users have begun to request the Company’s system when specifying switchgear panels.

In South America, a first order was received from a major switchgear OEM providing switchgear panels to one of the largest petrochemical operations in the world. This project began well over a year ago, once again demonstrating how long the sales process can be when dealing with top-tier customers. This win in Brazil marks both the displacement of the prior go-to supplier of thermal monitoring in that market (using infrared camera technology) as well as significantly increasing IntelliSAW’s visibility with several

The last financial year began strongly, with record sales and EBITDA profitability for the Group achieved in the first half of the year. Delays in signing a number of significant contracts resulted in a decrease in revenue in the second half; however the Translogik division was profitable for the year as a whole and the Company expects IntelliSAW to follow a similar revenue growth pattern in due course.

Translogik

The Translogik division, which provides tyre management solutions for the mining, earthmover and commercial vehicle markets, had an excellent year and made a major contribution to group

other switchgear OEMs and industrial customers within that market.

A number of pilots are underway in the UAE where switchgear failure due to overheating is common and a reliable solution is highly sought after. This is a valuable potential market to IntelliSAW as solutions are required urgently and large infrastructure budgets are available.

In 2013 IntelliSAW was selected by Siemens India to supply its IS485 system for real-time temperature monitoring in medium voltage switchgear cabinets. The systems are provided as a factory-installed option for Siemens customers requesting this feature. Switchgear cabinets produced at this Siemens operation began shipping with factory-fitted IS485 systems in January 2014. This supply agreement represents an important milestone for IntelliSAW, both in terms of the growing market recognition of its products, and driving the potential for new customer wins in association with a top-tier global switchgear manufacturer.

Development of new complementary products to the IS485 system, combining the system reader function with a full-featured HMI (Human Machine Interface), have greatly simplified the system implementation process while bringing additional functionality to the end-user. At the same time, the option to add humidity sensors to the system brings another point of performance monitoring within these critical electric power delivery assets.

overheads, with year-on-year sales growth of 226%.

Inspection Tools

The last twelve months have seen significant increases in sales of both the Generation 1 probe (up 200%) and the newer iProbe (up 22%). A number of new customers are currently developing systems that integrate the probes, and more than one of these systems is for passenger cars. Previously the tyre inspection probes were used for commercial vehicles only. The market for passenger cars is significantly larger than the commercial vehicle market alone, representing an encouraging additional development.

iTrack

Sales of Translogik’s iTrack Tyre Temperature and Pressure Monitoring Systems for mining and off-the-road vehicles (“iTrack”) increased by 370%, with deployments continuing at the Sishen mine in South Africa, owned by Kumba Iron Ore, a subsidiary of Anglo American plc, as well as at mines managed by Otraco Chile, a subsidiary of Otraco International (the world’s leading provider of earthmover/off-the-road tyre management services to the mining industry).

Translogik has received encouraging feedback from customers on the value of accurate, real-time tyre data being provided by the iTrack system, with new insights being gained into how 24/7 tyre monitoring information can impact on overall mining vehicle performance and mine efficiency.

SAWSense

A number of projects are underway and Transense is pleased to report that progress is being made in partnership with one of the largest European industrial electronic system manufacturers on a SAW application as part of a condition monitoring system. The project has been underway for two years developing prototypes. The customer has started the industrialisation process with production expected to follow in the second half of the current financial year. The customer has a global interest in SAW technology for multiple applications.

In addition, SAWSense progress continues on a major torque related project with one of the world’s largest industrial companies. This company has the in-house capability to develop, build and deploy SAWSense torque sensing solutions in multiple applications across a host of industrial sectors with a mixture of both short and longer term industrialisation timescales. As the client is both the developer of the applications, as well as the end-user, this represents an excellent opportunity.

Work continues on a diverse range of applications of Transense’s SAW technology for measuring torque (electric power assisted steering and driveline), temperature and pressure with new companies and the Board is hopeful that further licences will be granted, subject to the satisfactory

“The last twelve months have seen significant increases in sales of both the Generation 1 probe (up 200%) and the newer iProbe (up 22%)”

conclusion of commercial discussions in each case.

SAWSense’s revenue for the full year to June 2014 was up 113% compared to the previous financial year and prospects for further growth are strengthening.

Outlook

With revenue having increased year-on-year by approximately 138% compared to 2013 the Board is pleased by progress across all divisions.

Translogik has now achieved profitability, although it remains reliant on the receipt of large orders and we believe that IntelliSAW is well positioned for similar success within the next 12 to 18 months as the extremely lengthy product pilots begin to translate into major orders. Despite the slowing of orders since the start of this calendar year, the outlook for 2015 is encouraging.

Graham Storey

Group CEO

22nd October 2014

David M Ford Chairman

Graham StoreyGroup CEO

Melvyn Segal FCAFinance Director

Transense Technologies PLC Annual Report & Accounts 2014 Page 9Transense Technologies PLC Annual Report & Accounts 2014 Page 8

Non-Executive DirectorsDavid Kleeman (Deputy Chairman) - Joined the company in December 2007Rodney James Westhead - Joined the Company in April 2007

Company Secretary & Registered OfficeMelvyn Segal - 1 Landscape Close, Weston on the Green, Oxon, OX25 3SX

Remuneration Committee - David Kleeman & Rodney WestheadAudit Committee - David Kleeman & Rodney Westhead

Corporate Information

Nomad & Broker

N+1 SingerOne Bartholomew LaneLondonEC2N 2AX

Bankers

HSBC Bank Plc1 Sheep StreetBicesterOxonOX26 7JA

Patent Agents

IP-Active.com LtdPatent and Trade Mark AttorneysBirmingham Science Park AstonFaraday WharfHolt StreetBirmingham B7 4BBwww.ip-active.com

The Board of Directors are ultimately responsible for the management of the Company’s business strategy, optimising performance, investment objectives, approving significant items of expenditure and consideration of significant financing and legal matters. The Directors are responsible for overseeing and maintaining the relationship between the Company, investors, partners and customers. The Company is currently led by a Board consisting of three Executive Directors and two Non-executive Directors.

David qualified as a solicitor in 1980. He specialised in Intellectual Property (IP) law. In the late 1980’s he dealt with the acquisition by his firm, Tarlo Lyons, of the entire consumer debt recovery department of HSBC and negotiated a long term contract to deal with all branch consumer debt. In 1990 he became the firm's first Managing Partner. In 1993 he left the firm to move into a general business environment. Since then he has been involved with a variety of companies in various industries in a non-executive or semi-executive capacity. In 1998 he led the management buyout of the consumer debt recovery department of his old firm, Tessera Group, and is still a non-executive director of that company.

Graham commenced work for a courier business in the late 1980’s and quickly took over the running of a subsidiary company operating a Tropical Plant hire business. Graham then effected a management buy out of that business and through both organic growth and acquisitions, he built up The Moyses Stevens Group to become the biggest commercial and retail florist in the UK and personally held three Royal Warrants.

Melvyn is a chartered accountant and experienced company Finance Director, having previously held Finance Director positions at various high growth private and public businesses. Prior to entering the commercial sector Melvyn was a partner for 22 years at the accountancy firm Arram Berlyn Gardner (ABG). During his tenure at ABG the firm grew from 3 partners and 20 staff to 7 partners and over 70 staff and was rated in the top 60 firms.

Auditor

KPMG LLPArlington Business ParkThealeReadingRG7 4SD

Company & Intellectual Property Lawyers

Charles Russell8 - 10 New Fetter LaneLondonEC4A

Registrars

Neville Registrars LimitedNeville House18 Laurel LaneHalesowenB63 3DA0121 585 1131www.nevilleregistrars.co.uk

Company Number

01885075

Executive Directors

Transense Technologies PLC Annual Report & Accounts 2014 Page 11Transense Technologies PLC Annual Report & Accounts 2014 Page 10

Company Vision & Mission

SAWsenseTranslogik

&IntelliSAW

Research & Development

Commercial Products

Innovation

Licensees, Partners& Distributors

Strategy & Approach

To deliver market leading wireless, battery-less torque, temperature and pressure measurement solutions through the use of our innovative Surface Acoustic Wave technology and sensor expertise.

Vision

To allow our customers and partners to provide high quality products and services that enable increased efficiencies, higher performance, improved safety and commercial success.

Mission

Strategic Report


• Working with our licensees & partners to actively market our technology• Aggressively targeting high margin market segments where our

technology has unique selling points. We have identified the mining, commercial vehicle, aviation, heavy industrial and electrical sectors as fulfilling these criteria

• Develop products leveraging our IP and expertise to exploit these identified market opportunities

• Establishing joint ventures & strategic alliances• Entering non-automotive markets• Actively marketing our technology in emerging markets• Providing engineering consultancy

Group Business Model• Maximise revenue from the commercialisation of Transense’s

patented technology in conjunction with licensees and partners

• Develop additional routes to market through wholly-owned trading divisions and joint development agreements

• Increase shareholder value

• Continue to develop new technology based on Transense’s core competencies

23 based at the Company HQ in the UK

39 Active patents with

a further 5 awaiting approval

Oxford - UK

Boston - USA

Shanghai - China

Bogota - Colombia

Year-on-Year growth for the year ending June 2014 compared to the

the previous year

Year-on-Year growth for the year ending June 2014 compared to the

the previous year

PatentsStaff Revenue GrowthOffices Gross ProfitTrading Divsions

3940 +138%4 +157%3

Strategy

Translogik

IntelliSAW

SAWSense


Key Performance IndicatorsTransense use a range of metrics to guage the

Group’s annual operational performance

Jun-12 Jun-13 Jun-14

Revenue 1,014 1,517 3,603 Gross Profit 565 1,017 2,616 Gross Profit % 55.7% 67.0% 72.6%Adjusted EBITDA (3,023 ) (2,157 ) (953 )Net working capital excluding cash 225 277 1,516 Net cash used in operations (2,994 ) (2,033 ) (2,872 )

Principal RisksThe Board currently consider the following factors to

represent the biggest risks to the Group’s success

• External macro-economic factors

• Insufficent working capital

• Loss of key staff

• Emergence of competing products

• Non-performance of key commercial partners


Increase tyre life

Reduce fuel consumption

Improve safety

Mining & Earthmoving Large haul trucks

The large tyres used in the mining and earthmoving industries are extremely expensive and often in short supply with lengthy lead times to order. Consequently, extending the life and efficiency of these valuable assets is of critical importance to mine owners and operators. Translogik’s iTrack OTR tyre monitoring system offers a compelling solution for extending tyre life, avoiding breakdowns, increasing production, improving fuel economy and keeping vehicles and drivers safe. In addition, the accurate, real-time data helps drive operational efficiencies.

www.trans-logik.com/itrack

Commercial VehiclesHeavy truck & LCV

The same operational cost imperatives that exist within the OTR tyre market also exist for commercial vehicle operators and owners. Maintaining their vehicle tyres in optimum condition allows fleets to reduce running costs, minimise the occurence of expensive tyre blowouts and meet the increasingly stringent legal requirements that commercial vehicles are required to achieve around the world, in terms of minimum safe tyre condition. The Translogik tyre inspection probes provide a quick, reliable and efficient means of electronically monitoring key tyre performance parameters.

www.trans-logik.com/iprobe

Passenger CarsTyre service providers

The Translogik tyre inspection probes are increasingly being used by passenger car tyre service centres. The drivers for adoption in this market are similar, but in addition, the rapid, high precision tyre date collected for each tyre can be used to generate a visual audit report that allows the provider to better explain the vehicle’s tyre condition to its owner. This ensures that the full ‘story’ of the tyre is provided, for instance identifying issues such as uneven wear. This translates into higher levels of confidence for the customer and higher sales for the operator.

www.trans-logik.com

Increases in tyre life of up to 25% have been achieved by current iTrack systems(*Customer supplied data)

25%*

Tyre Management solutions division. Targeting the growing need to maximise the effective life of tyres within the mining, commercial vehicle and passenger car tyre markets.


Translogik’s Markets

40,000+ Units

21.8 million

65,000,000

+183%**Increase in OTR tyre costs - Size 53/80R63 - May 2010 to Nov 2011

Large Mining Haul Trucks currently operating globally***

Global commercial vehicle production in 2013*

Global passenger car production in 2013*

* http://www.oica.net/category/production-statistics/2013-statistics/** http://www.hsmtire.com/!data/tire_market_report4.pdf

May 2010 Dec 2010 Jun 2011Aug 2010 Feb 2011 Nov 2011

+60%****Increase in fuel costs - US Diesel - 2009 to 2013

2009 2010 20122011 2013

*** http://parkerbaymining.com/mining-equipment/mining-trucks.htm**** http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_a.htm

Geo-Fencing

Keep your employees and assets safe. A Geo-fence is a predetermined area or boundary that is set for a particular vehicle fitted with iTrack. If the vehicle crosses that virtual boundary or geo-fence area, then the tracking software can alert you. The system allows for multiple concurrent geo-fence zones to be defined to ensure that vehicles are only operating in approved areas, further increasing the safety of the mine.

MobiTrack

Translogik’s new mobile application for Android.

• Check tyre status quickly by the side of the vehicle with no need to gain access to the cab.

• Configure iTrack systems & update tyre positions.

• Settings such wheel layout/numbering, vehicle registration, in-cab warning levels, and enabling/disabling atmospheric pressure compensation can be accessed through the MobiTrack configuration.

The Translogik Off-the-Road (OTR) ‘iTrack’ Tyre Monitoring System provides fast, accurate, reliable real-time data on the condition of vehicle tyres, combined with live tracking of vehicle location and status.


Making mines safer & more productive

iTrack provides a rugged and reliable solution with a range of features that allow mine operators to track their vehicle’s tyre temperature and pressure, speed, braking and location in real-time and receive early warning of potential problems or hazards. This live data allows swift remedial action to be taken, which can be the difference between safe mine operation and a major incident. By ensuring the vehicle’s tyres are operating within recommended temperature and pressure limits, iTrack brings increased levels of safety to both the vehicle drivers and the technicians that work on them. From a commercial perspective, by ensuring that tyres are correctly inflated, tyre life is extended and costly down-time from repairs and intervention is reduced, improving productivity.

• Increase productivity

• Avoid breakdowns

• Extend tyre life by up to 25%*

• Improve fuel efficiency by up to 8%*

• Maximise haul speeds

• Reduce vehicle down-time

• Reduce tyre maintenance costs

• Improve driver & technician safety

• Real-time temperature & pressure monitoring

• Live GPS tracking of vehicle status

• User configurable alarms & automated alerts

• Remote monitoring via web or mobile device

• TKPH Calculations


Mining TPMS

The distance an exploding mining vehicle tyre can throw a 7.25 kg bowling ball4.8km


“200% year on year increase in sales of the generation 1 tyre inspection probe”

“370% annual increase in iTrack mining tyre monitoring system sales”


Global iTrack DeploymentsCurrent live customer sites

Safety & Productivity

In a recent study carried out in Chile, it was discovered that a Bridgestone OTR tyre could run 10KPH faster than the equivalent Michelin tyres and stay within its recommended heat thresholds. This had the direct result of the mine only needing to run 25 dumper trucks as opposed to 27, thus saving on 2 x vehicles, fuel, driver salaries, maintenance and increasing safety (less vehicles on the road).

Fuel savings

The same Chilean study demonstrated that running tyres at the correct pressure at all times has saved US$35,000 of fuel per truck per annum.

Mechanical defects

iTrack data analysis allowed them to identify uneven load distribution on several vehicles based on relative tyre temperatures; an overheating tyre was discovered to have been caused by a mechanical fault with the suspension which would otherwise have caused significant loss of tyre life or potential failure. They estimated that iTrack saved them $120k USD (2 x Michelin 60” tyre @ $60k each) on just the second day of trial, by alerting them to a tyre running at just 36 psi, therefore putting immense strain on the twin.

Return on InvestmentCase StudiesExisting iTrack users have reported increases in tyre life of up to 25% and fuel savings of up to 8%. Savings of this magnitude provide a rapid return on investment with the iTrack system paying for itself in as little as six months.

Translogik is a totally independent company enabling us to provide truly unbiased performance testing of different manufacturers mining tyres.


Commercial SuccessesMajor partners & customers

There are over 40,000 large mine trucks in operation around the world, and in excess of 100,000 including large ancillary vehicles.

Translogik signed a contract with Kumba Iron Ore (“Kumba”), a subsidiary of Anglo American (“Anglo”) in South Africa, for the provison of iTrack mining vehicle tyre monitoring systems to its Sishen mine. Anglo American is one of the world’s largest mining companies. Its portfolio of high-quality mining assets and natural resources spans bulk commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals – copper and nickel; and precious metals and minerals – in which it is a global leader in both platinum and

diamonds. It operates in Africa, Europe, South and North America, Australia and Asia. Headquartered in London with 107,000 permanent employees. iTrack is also now in use in large open pit mines in Chile, managed by Codelco, and more recently at three Australian mines.

iTrack is now used by some of the world’s largest mining companies, and marketed and supported by mine service providers with global reach.

60%*

The ability to provide customers with accurate tyre data is a significant value-add to retailers and service providers.

Translogik has recently seen increased level of interest in the probes from the passenger car tyre market, which opens up a significant new revenue stream.

Below are a few of the companies currently using the probes.

* The average time saved carrying out an inspection with a probe compared to a manual inspection

Reduce Fuel CostsBy ensuring tyres are correctly inflated using fast, accurate, wireless data provided by Translogik’s solutions

Tyre Inspection Probes

Key Features

• Wireless tyre pressure measurement• Wireless tread depth measurement• Accurate data capture via Bluetooth• Rechargeable• Lightweight• Rugged Construction

Increase Tyre LifeBy ensuring tyres are correctly inflated using fast, accurate, wireless data provided by Translogik’s solutions

Improve SafetyBy ensuring that tyres are managed correctly,and gaining early warning of potential tyre failure, accidents caused by blowouts or delaminations can be reduced.

Translogik’s range of tread depth & tyre pressure probes provide fast, accurate, reliable data on the condition of tyres wirelessly

Customer IntegrationTranslogik works closely with its global partners to integrate the probes into their tyre management systems, providing technical development support to some of the largest companies in the tyre industry.


RFID Reader

TPMS Reader

The ultimate integrated tyre inspection tool: Wireless tread depth, tyre pressure & RFID reader

www.trans-logik.com

The revolutionary Translogik ‘iProbe’ adds UHF RFID (Radio Frequency Identification) and TPMS* (Tyre Pressure Monitoring System) interrogation to the existing tyre pressure and tread depth measurement abilities of the TL-G1 probe to provide the ultimate tyre inspection tool in a tough, compact and lightweight hand-held package.

Providing a complete solution in a single wireless inspection device redefines the state-of-the-art and brings new levels of functionality, accuracy and efficiency to the fleet management market. Reduce vehicle inspection times by up to 60% and reduce data errors to zero.**

The iProbe can read RFID tags at up to 50cm - allowing quick and easy inspection of ‘dual’ tyres.*TPMS sensor reader is an optional factory fit module.

**Data compiled during Translogik product trials.

Key Features• Integrated UHF RFID reader

• RFID read range of up to 50cm

• Wireless tread depth measurement

• Wireless tyre pressure measurement

• UHF 840 - 960 Mhz for worldwide application

• Replaceable rechargeable battery

• Internal sounder with vibration alert


• Quick and efficient process

• Modern technology inspires consumer confidence

• Report gives visual aid assisting both the sales staff and the customer in understanding the tyre condition and what’s required

• Professionalism builds customer trust & loyalty which leads to greater customer retention and revenue

Opti-Tread

This data is then used to generate a custom visual report which highlights tread depth levels, wear patterns and pressures. The report makes it

The system uses the Translogik generation one probe to collect tyre pressure and tread depth data which is transmitted wirelessly to the Opti-Tread system.

The Opti-Tread diagnostic system for tyre tread depth and vehicle safety is a new hardware and software solution used at retail tyre service centres and in a variety of shops serving consumer vehicles. It produces a unique one-page Tyre Audit Report clearly depicting the condition of tyres on a customer’s vehicle.

extremely easy to identify tyres that need replacing and shows up potential issues such as poor wheel alignment, tyre damage or possible slow punctures.


EM-iProbe Integrated with iTrack

• Electronic tread depth and pressure measurement

• Sends data via Bluetooth

• 130 mm tread depth measurement

• RFID option

• Replaceable battery

• Specifically designed for the harsh mining environment

www.trans-logik.com

3D Mapping Monitor vehicle elevation

iTrack function that measures:

• Pitch, yaw & roll

• Excessive g force

Helps detect:

• Poor driving

• Mechanical failure

• Poor load distribution


Mag-Fit SensorsA new option for iTrack

An alternative sensor fitment option that allows for quicker deployment of sensors.

The sensor is attached to a magnetic fixing which attaches directly to the metal rim.


iTrack data has allowed mines to run vehicles 10kph faster than before - a Significant gain for production

EM-iProbe

3D Mapping

Magnetic Fit iTrack Sensors

New and upcoming products include a new heavy duty probe for the mining & earthmoving markets.

Image (right) shows the new EM-iProbe



OEMsFactory fit

Utility CompaniesInfrastructure

Industrial CustomersManage own power

The average cost of critical asset failure per event$500k+

Image (right) shows a typical electrical switchgear

Continuous Monitoring

Passive sensors

“Wireless solutions for temperature monitoring of medium voltage and high voltage assets are a necessity.”

www.intel l isaw.com

Continuous, wireless, critical asset monitoring systems for the power transmission, power distribution, and industrial markets. Adding intelligence to the ‘smartgrid’ network.

Today, more than ever before, the customer demand on electric power transmission and distribution infrastructure is rising. This fact, coupled with aging equipment, leads more and more to electric power switchgear being stressed up to and beyond its original rated capacity. Increasing maintenance schedules dictated by the need to save costs do not help this situation. The operating temperature of switchgear has been found to have a very high correlation to the operational life of the asset: when switchgear are operated at very high temperatures, the likelihood of failure increases dramatically. Consequently, monitoring the temperature of likely

failure points within electric power switchgear provides invaluable data on the health of that piece of equipment: early detection of incipient problems leads to rapid identification of problems and can provide significantly better maintenance scheduling that result in little or no down-time associated with switchgear failure.

Clearly, if there is a need to understand the health of switchgear by monitoring its temperature, the method of measuring temperature MUST NOT contribute to any failure mechanisms, especially flashover. For medium-voltage and high-voltage equipment, anything that touches medium-voltage or high-voltage

conductors must never violate the air-dielectric separation design requirements for the operating voltage. It is almost impossible to guarantee the dielectric separation needed for such equipment with wired temperature monitoring solutions. Both the safety and liability concerns of wired solutions prohibit their use in these applications.

Wireless solutions for temperature monitoring of medium-voltage and high-voltage switchgear are a necessity.

• The vast majority of critical assets in the field today are greater than 25 years old.

• Less than 5% of installed critical assets have continuous monitoring integrated.

• Temperature is the leading indicator of critical asset failure.

• Critical asset failure is one of the leading causes of power outages.

• The average cost of critical asset failure is greater than $500K per event.

• The ROI for implementing continuous switchgear monitoring is less than 12 months.

• Critical asset failure often involves injury to humans, and is known to cause deaths.

The Case for Critical Asset Monitoring

The capital cost payback time for implementing continuous critical asset monitoring is less than

12 months


Advanced Monitoring Solutions for Critical Electric Power Transmission & Distribution Assets

Bringing advanced sensing solutions through Surface Acoustic Wave technology.

www.intellisaw.com

Switchgear explosionSwitchgear FireOverloaded Infrastructure

The Fuxin Special Steel Company Ltd, a division of Taiwan based Formosa Plastic Group (FPG) is completing a large stainless steel manufacturing plant in the Xiamen area of China’s Fujian Province.

This is the largest stainless steel project in Fujian and the first steel works constructed by FPG.

The plant is designed for an annual output capacity of 1.8M metric tons of hot rolled stainless steel coils and cold rolled stainless steel products with an output value of RMB 30 billion (USD $5 billion).

The new steel plant is approximately 1km in length and is served by a 220kV underground electrical feed that is transformed down to multiple 35kV feeds which are distributed to numerous substations within the plant.

A total of 340 cabinets are being commissioned at Fuxin Special Steel, each with a 6-sensor IS485 system to monitor the temperature of critical points in the switchgear.

The cabinets arrive at the Fuxin Steel Plant with the IS485 Readers and Sensor Modules pre-installed.

Final commissioning of the IS485 systems was completed by IntelliSAW’s regional integration partner PQClean.

Case StudyFuxin Steel


The IntelliSAW IS485 FamilyA complete thermal monitoring solution

IntelliSAW SAW technology allows you to monitor the temperature of all your critical assets such as Switchgear, Cables, Machines, and ISO Phase Bus with our wireless sensors that are passive (no power required)

critical when the environment of the switchgear changes quickly.

Typically, a medium-voltage or high-voltage switch has at least four areas of concern to operational staff: the input bus bars in the cabinet, the input connections to the switch or breaker itself, the output connections from the switch or breaker and the output cable connections. Each of these areas has three phases of power, so there are 12 locations that ought to be monitored to assess the health of the equipment. Clearly, the absolute minimum critical locations are the inputs and outputs of the switch or breaker, so at a minimum, the temperature of 6 locations is of the highest importance.

The IntelliSAW wireless temperature monitoring system consists of three main components: the passive wireless temperature sensors, the reader and the network connecting all

of the readers together with asset management infrastructure.

The sensors along with the reader antennas are deployed wherever temperatures need to be monitored, usually in the elevated-voltage compartment. The readers are installed in the low-voltage compartment, generally with other monitoring and communication equipment. Each of the readers is connected to each other and the asset management system via one or more networks, possibly using intermediate gateway devices. The gateways provide aggregation and data-management functions between low-intelligence readers and high-functionality asset management systems. Additionally, the gateways can provide local diagnostic and test functions as well as diverse data archival functions.

Why should electric power monitoring be continuous?

Key Features• Completely passive wireless temperature sensors that require no power.

• Designed for continuously monitoring your HV/MV/LV equipment 24/7, 365 days a year.

• Capable of measuring all relevant hot spots simultaneously such as bus bars, breaker inputs/outputs, and cables.

• Up to 12 sensors can be used to simultaneously in various configuration.

• Data communication via Modbus-RTU over standard RS485 bus.

• IEC61850, DNP-3, and MODBUS-TCP data gateway with 3G option.

• User-configurable alarms, both limit and differential.

• We also have the ability to monitor humidity and, soon, partial discharge.

IM485 - Temperature Measurement Meter

Intellisaw Reader Air Interface

Passive Sensors

IS485 Reader

There have been numerous cases of the load through medium-voltage or high-voltage switchgear changing very rapidly, leading to catastrophic results. This can be a result of new loads imposed on a circuit that are unknown to the switchgear operator, or can be a result of events such as animals unexpectedly altering the air-dielectric behavior in switchgear, with disastrous results (both for the animal and switchgear).

Continuous monitoring of switchgear temperature can identify rapidly changing conditions on the switchgear and can initiate predictive and preventative measures early enough to prevent loss of equipment, and, in many cases, interruption of service. Alerts, alarms and trend-tracking based on temperature data are


IntelliSAW Global PresenceRoutes to market

U.S & Canada

8 99 211 1S. & Central AmericaEurope & Middle East AfricaAsia Oceania

these systems could introduce potential asset fault conditions such as arcing, flashover, or shorting due to the nature of how they operate.

IntelliSAW’s IS485 systems employs Surface Acoustic Wave (SAW) technology for simultaneously monitoring the temperature on critical asset hot-spots such as bus bars, breaker inputs, breaker outputs, and cables. A SAW temperature sensor is manufactured on a quartz substrate, a piezoelectric material that can store radio frequency signals as ultrasonic vibrations for several microseconds in a resonant structure. The sensor then returns the stored energy as re-broadcast radio waves at the resonant frequency. The SAW sensor is remotely interrogated via RF allowing for

The market for IntelliSAW’s thermal monitoring solutions is truly global in nature. There are major drivers for adoption; the requirement to maximise the capacity of existing infrastructure, as well as ensuring that new assets are optimally managed. The move towards ‘smartgrids’, where intelligence is added at various nodes throughout the power network necessiates that sensors continually monitor performance.

a completely passive sensor, affording simple attachment to key monitoring points and eliminating the need for power or communication wiring. SAW technology is quickly being adopted as the reliable method of real-time thermal monitoring in low, medium, and high-voltage applications because of their unique advantages over other solutions:

Passive - SAW sensors are non-invasive and battery-less; they are completely powered by the IS485 reader interrogation signals.

Robust - The IntelliSAW sensors were designed to operate in harsh electrical environments, withstand voltage and current spikes, and prevent sensor corrosion.

Improve Substation Predictive Maintenance with SAW Technology

With increased visibility on improving electrical power grid reliability, critical assets (switchgear, transformers, and circuit breakers) represent some of the most vulnerable components. Once commissioned, power assets are expected to be in continuous use with little time for direct maintenance, especially any activity that required the unit to be temporarily taken out of service. Consequently these assets become particularly vulnerable to overheating due to overloading, corrosion, loose connections and challenging environmental conditions. And while continuous monitoring technology has been available for some time now, the vast majority of

Reliable - SAW sensor technology has been well researched and sensors are projected to have over a 20 year installation life expectancy.

The IntelliSAW IS485 reader interfaces to the SAW sensors over a common low-power radio frequency such as 433MHz. The reader continuously interrogates all of its configured sensors and provides the data over standard protocols (RS485 and Modus-RTU) to a gateway, SCADA system, or local HMI such as the IM485 panel mount meter. A network of IS485 systems (readers and SAW sensors) can be used to outfit a complete substation to reliably provide real-time continuous monitoring of critical assets to enhance predictive maintenance capabilities and prevent station downtime.

IntelliSAW has rapidly established a large global distributor and representative network, with regional offices in two of its key markets, Shanghai, China, and Bogota, Colombia (South and Latin American office)

Distributors & Reps by Region

Boston Headquarters Regional OfficeDistributorRepresentative

5largest OEMs

The IS485 can now be specified as a factory-fit option with Siemens in India, and the Company is working at various sites with partners including Siemens, ABB, Schneider, Eaton & GE.

The sales cycle for IS485 systems is long due to the critical nature of the assets being monitored requiring thorough and exhaustive testing to prove reliabilty and performance, and that fitting usually has to wait for scheduled maintenance. However, as the number of customers successfully completing this validation process increases it is anticpated that this sales cycle will shorten.


New Developments

• IntelliSAW is developing a continuous real-time, online solution for early warning and trending of corona and partial discharge in medium voltage switchgear

• The system does not require an ‘as installed’ baseline measurement like other UHF methods and has real-time algorithms to distinguish UHF signals from noise sources, from corona, and from PD.

• The system is calibrated to a reference source at a reference location; however the UHF signal received by an antenna varies with the actual PD source position.

• The system will provide early warning detection of PD events affording the customer the opportunity to take corrective action to prevent failure.

IntelliSAW is continuing to expand the capabalities of its IS485 solution and now offers humidity monitoring and soon partial discharge.

Industry AdoptionAdoption of the IS485 solution is gathering momentum as industry awareness of the system grows. IntelliSAW is running numerous trials around the world in conjunction with the largest OEMs in the industry.

Partial Discharge (PD) Damage IntelliSAW Humidity Sensor

In electrical engineering, partial discharge (PD) is a localised dielectric breakdown of a small portion of a solid or fluid electrical insulation system under high voltage stress, which does not bridge the space between two conductors.


AutomotiveMultiple Applications

There is a global demand to improve vehicle fuel efficiency which is driven by decreasing oil reserves and the desire to reduce greenhouse gasses. Examples of how this can be achieved is by direct control of driveline torque rather than using mathematical models and by replacing Hydraulic Power Assisted Steering (HPAS) with Electric Power Assisted steering (EPAS) which is only applied when needed. Unlike evolutionary changes, replacing one type of sensor with another, driveline torque sensing is considered a revolutionary change by automotive manufacturers.

The speed the Transense SAW sensor has to operate at while attached to the drive shaft in a McLaren F1 car

18,000rpmImage (right) shows a Transense SAW wafer

Temperature

SAW

SAWSense is focused on commercialising the Group’s valuable intellectual property, in association with its partners and licensees, in the automotive, industrial and motorsport markets.

Torque

Pressure

Torque driveline

SAWSense is currently working with several large multi-nationals on automotive applications of the Company’s technology. It has already been made public that SAWSense is working in partnership with General Motors on a torque driveline project, but as previously discussed this application is seen by automotive manufacturers as a revolutionary change and they are cautious regarding the release of information. However we can say that we are working with several other automotive manufacturers in the US and Europe and are currently at various stages of product validation.

EPAS

There has been a transition in the automotive industry for many years moving away from HPAS towards the use of EPAS. The benefit of using a SAW based non-compliant sensor is that there does not need to be major mechanical or material modifications to the steering shaft. SAW sensors are also unaffected by magnetic fields. This is often a problem if the sensor is placed close to an electric motor. SAWSense are currently working on an EPAS project which is hoped to begin commercialisation in 2015.

Wind Turbine

MotorsportTorque & TPMS

Interest in the technology is increasing in this niche market. TPMS systems continue to be marketed by our licensee Stack and their parent company Autometer who are located in the US. As part of the Joint Development Agreement (JDA) with McLaren signed in August 2011 and following on from the success of the KERS project, Transense is continue to manufacture torque sensor shafts for Indycar. These torque sensors are used across the Indycar grid to marshal the engine output power.

The following Youtube link shows the component and description of its use:

www.youtube.com/watch?v=Oodd1zmkvzU

www.transense.co.ukTransense Technologies PLC Annual Report & Accounts 2014 Page 48 Transense Technologies PLC Annual Report & Accounts 2014 Page 49

The Inherent Benefits of SAW Sensor Technology

natural frequency persists for perhaps 20 micro seconds and a portion of that mechanical energy will be converted, due to the piezo-electric effect, back into an electrical signal at the IDT.

Transense have developed SAW Interrogation Units (SIU) comprising patented electronic hardware and embedded software. The SIU generates a radio frequency (RF) pulse which is transmitted to the IDT of the SAW sensor, exciting the resonator into mechanical vibration. When the interrogation signal is paused, the SAW resonator “rings” at its natural frequency. The returning (back scattered) electrical signal is received by the SIU, which analyses it determining the natural frequency of the SAW sensor and hence the surface strain on the die.

Interrogation can be via wired connections or by non-contacting means - either a broadcast radio signal or by use of RF couplers. A coupler comprises a stator and a rotor which may be a pair of disks or a pair of co-axial cylinders. The rotor is mounted directly to the structural component and rotates with

SAW Technology:

SAW devices, as deployed by Transense, are realised as crystalline quartz substrates (dies) typically 6 x 4 mm by 350 microns thick. On each die up to 3 resonators, with natural frequencies around 433MHz, are laid down in thin film aluminium, using photo-lithographic techniques. Each resonator comprises a central inter-digitated transducer (IDT) with a series of reflecting strips distributed on either side. Overall resonator dimensions are 2 to 3 mm long x 0.3 to 0.4 mm wide. The spacing between individual features in the IDT and reflectors is of the order of 2 microns so you need a microscope to resolve the fine detail. SAW resonators respond to both mechanical and thermal strain by changing their natural frequency of vibration.

In practice, Transense SAW dies are either bonded directly to structural components to sense local strains or packaged inside small stainless steel buttons. The buttons, typically 11 mm diameter by 3 mm thick, are then either bonded or welded to structural components. Because the resonators would be adversely affected by dust or contamination, it is preferable to use hermetically sealed button packages in most automotive or industrial sensing applications.

The piezo-electric nature of crystalline quartz means that an oscillatory electrical input to the IDT will induce a mechanical vibration (SAW) on the surface of the die. Further, when the electrical input signal is stopped, vibration of the SAW resonator at its

Surface Acoustic Wave (SAW) resonant sensor systems have been the subject of development by Transense Technologies over the past 15 years for a variety of measurement applications. First it may be useful to review the basic technology and physical characteristics of the system:

it. It carries a 360° microstrip which is wired to the SAW sensor. The stator is mounted to the chassis side and, as its name suggests, does not rotate. It too carries a 360° microstrip, which faces its partner on the rotor, and is wired to the SIU. Electromagnetic coupling allows transmit / receive signals to pass between the couplers so the SIU can interrogate the SAW sensor.

By mounting 3 resonators in specific locations and directions on a single SAW die, it is possible to determine both mechanical strain and temperature independently. The mechanical strains may be directly converted, via traceable calibration standards, into engineering parameters, such as pressure or force or torque, depending on the design of the sensor button and its mounting orientation on the structural component, eg shaft or disk. The accurate sensing of temperature, on the same die, enables these parameters to be temperature compensated over the range -40°C to 125°C and significantly higher for specialist applications.

“There has also been interest from European and North American customers in our torque technology for use in avionic applications”

SAW

Non-automotive Large diameter shaft

The initial focus of the Company was automotive but following the increasing interest in the technology for non-automotive applications SAWSense has re-developed and adapted Its torque sensor technology for several niche applications. One of the first projects was to develop a sensor for use on large diameter shafts. This was a European FP7 funded project named “Intelwind” and SAWSense were part of a consortium of 9 companies. The project objective was to develop a condition monitoring system which included a torque sensor for wind turbines. The product developed under this project could also be used be used for other large diameter shaft applications such as marine and static engines for power generation and pumping.

As an alternative to exploring individual markets SAWSense is currently working with a major European manufacturer who supplies product to all of these applications. Our patented SAW technology is currently being industrialised by the customer with commercialisation expected in 2015

There has also been interest from European and North American customers in our torque technology for use in avionic applications. This has necessitated further adaptation of the technology for this harsh environment. Combined with aggressive timescales in avionic terms this has presented yet another set of challenges for the Transense engineering team.


SAW

Further SAW benefits include:

Low Mass: a typical Torque or TPMS button package weighs 2 grams. This is very beneficial in motorsport applications where every gram counts.

Small Size: enables the addition of one or two buttons to existing components such as shafts or disks with only minimal intrusion or modification. Modern automobile engines, transmissions and drivelines are engineered to minimum size and weight so that free space is always a rare commodity.

No Special Material required for the component: Again the structural materials in modern automotive designs are optimised for strength, fatigue life and cost. The only requirement for an effective SAW sensor is that the material be elastic, ie. free from plastic deformation in use, which is the normal specification for any structural component.

The principal benefits of Transense resonant SAW sensing systems are the abilities to measure engineering parameters such as torque, pressure and temperature on rotating components wirelessly and passively - that is to say no power has to be separately applied to the sensor as it gets the energy to excite the SAW and transmit its response from the interrogating RF pulse.

As a result, torque measurement in automotive powertrains and electric power assisted steering (EPAS) systems, or pressure measurement in car or truck tyres, or dynamic torque / force / pressure / temperature measurement in industrial applications, is straightforward in principle.

Conventional strain sensing technologies, eg. foil strain gauges applied to components in order to sense torque, require either direct wired connections with slip rings to enable transmission of power and signal across the rotary / stationary boundary, or on-board electronics comprising typically a battery, local signal conditioner and receive / transmit radio components.

Even when the battery is replaced by a kinetic energy harvesting device, there still needs to be energy storage (small rechargeable battery or capacitor) on the component with attendant weight and cost.

Benefits of SAW Technology

No Sensitivity to Magnetic Fields: Many automotive applications require that torque sensing is required in proximity to electric motors and solenoids. In addition the earth’s magnetic field varies with altitude and proximity to mountains.

Mechanically Rugged: In manufacturing environments, components may be knocked or dropped applying high shock loads. In service, high speed rotation involves very high centripetal forces often thousands of “g”. Also in service significant vibration levels may be present. SAW sensors have demonstrated considerable tolerance to these loadings.

Good Dynamics: SAW sensors can be sampled at 2 kHz enabling for example, torque measurement in engines and powertrains every few degrees of shaft or disk rotation (eg. every 3 degrees at 1000 rpm).

Good Measurement Accuracy: SAW torque sensors can deliver better than 1% of full scale accuracy over the temperature range -40°C to +125°C together with low hysteresis and drift.

Cost Effective: A typical Transense SAW torque or TPMS button is an intrinsically low cost device. It contains no electronic components, just a stainless steel can and a quartz die.

The above resonant SAW sensor system benefits are not all achieved by the competing torque sensing magneto-elastic (M-E) technologies. In these systems, a shaft is magnetised or has a magnetic ring fitted tightly or deposited thereon. Surrounding the shaft, a sense coil detects changes in the magnetic field within the shaft or ring from which the torque in the shaft may be determined.

M-E sensors are susceptible to unwanted magnetic fields, however they can be shielded. Where the shaft itself is magnetised then there are special material requirements. Mechanical knocks can cause changes in the shaft’s magnetisation. There are also practical minimum coil size issues, axial lengths are typically 30 - 50 mm. Achieving low hysteresis and zero stability are significant measurement challenges.

Conclusions:

This article has reviewed resonant SAW sensing technology as developed and applied by Transense Technologies plc.

In principle, RF pulses, circa 433MHz, excite SAW resonators deposited on a piezo-electric quartz die, which ring at a natural frequencies determined by the mechanical and thermal strain applied to it by the component on which it is mounted. The back scattered RF signals can be analysed to measure the frequencies and determine the mechanical strain and temperature.

Resonant SAW sensing systems are particularly relevant to measuring dynamic engineering parameters, especially on rotating components, eg. pressure in tyres and torque in powertrains.

There are a number of other benefits including small size and mass, good measurement performance over a wide temperature range and dynamic band and tolerance to extraneous loads and stray magnetic fields.

Transense resonant SAW sensing systems compare favourably with competing strain sensing technologies.

Article written by Dr. Ray Lohr

Small Size

Low Mass

Mechanically Rugged

Benefits of SAW:


“SAWSense revenue for the full year to June 2014 was up 113% compared to the previous financial year.”

SAWSense is currently engaged in projects with 9 major OEMs

By order of the Board

Graham Storey

Group CEO

22nd October 2014


Statement of corporate governance


Remuneration report

Remuneration report (continued)

Directors’ report


Directors’ report (continued) Directors’ report (continued)


Statement of directors’ responsibilities in respect of the Strategic Report, Directors’ Report and the Financial Statements

KPMG LLP Arlington Business ParkThealeReadingRG7 4SDUnited Kingdom

Independent Auditor’s report to the members of Transense Technologies plc


Consolidated Statement of Comprehensive IncomeFor the year ended 30 June 2014

Independent Auditor’s report to the members of Transense Technologies plc (Continued)


Consolidated Balance Sheetat 30 June 2014

Company Balance Sheetat 30 June 2014


Statement of Changes in Equity Consolidated and Company Cash Flow Statement For the year ended 30 June 2014


Notes to the Financial Statements Notes (continued)


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Transense Technologies PLC Annual Report & Accounts 2014 Page 94

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ANNUAL REPORT & ACCOUNTS...switchgear monitoring and protection business, now has a presence in 29 countries and has secured recent contract wins with global switchgear OEMs after