Powering the world’s telecom infrastructurereports.huginonline.com/814109/88153.pdf4 History 1968 PCP established 1971 Eltek established 1983 Eltek UK established as the first step

1

Eltek

Powering the world’s telecom infrastructure

Introduction

Morten F. Angelil - CEO

2

Agenda

Introduction Morten F. AngelilProducts & Technology Arne SteinbakkOutsourcing Vidar SelvigFinancials Jørgen LarsenMarket Outlook Morten F. AngelilStock Information Morten F. Angelil

Mission

Our mission is to secure global communication by providing critical power solutions for telecom infrastructure

3

Reliable Telephone Service

SwitchingSystem

DC PowerSystem

Transm.System

Utility AC

To/FromPublic Network

Batteries

Power systems for wired and wireless telecom networks

Rectifiers and monitoring unitsStandard systems and Custom design Installation and service

Customers are telecom operators and builders of telecom infrastructure

4

History

1968 PCP established

1971 Eltek established

1983 Eltek UK established as the first step in internationalization

1994-00 Eltek established in Hong Kong/China, Germany, Poland, India, Singapore, France, Sweden and Australia

1998 80% of PCP acquired by CC Industries

1998 Eltek listing on Oslo Stock Exchange

1999 Sale of Fire & Safety business (completed 2000)

2000 Merger Eltek/PCP

2000 Included in OBX-index OSE (25 most traded shares)

Revenue continuing operations

544

774 867

1118

1894

0

500

1000

1500

2000

1996 1997 1998 1999 2000

5

Company chart

ELTEK ASA

ELTEK ENERGY AS 100 %

ELTEK (UK) LTD. 100 %

ELTEK ENERGY FRANCE S.A. 100 %

S.F.E.E. S.A, France 51 %

ELTEK ENERGY LTD., Hong Kong 61 %

ELTEK POLSKA Sp.z.oo 51 %

ELTEK ENERGY PTE. LTD., Singapore 95 %

ELTEK SGS PVT. LTD, India 51 %

GERTEK STROMV., GmbH, Germany 67 %

UNITECH AS, Norway 100 %

COMPOWER AS, Norway 34 %

MICROPOWER FORV. AB, Sweden 34 %

ELTEK PACIFIC LTD, Australia 51 %

ELTEK ENERGY AB, Sweden 100 %

POWER CONVERSION PRODUCTS, LLC, USA 100 %

PCP INTERNATIONAL DE, Mexico 100 %

BEIJING PCP CO. LTD., China 50 %

ELTEK ENERGY TECHNOLOGY LTD100 %

ELTEK ENERGY CVI LTD 100 %

Global Location

Head Office

Sales & Service

Assembly -Test

Manufacturing - Assembly -Test

Outsourcing Partner

Distributors

6

EuropeC. Howe

Asia/Pac.L. Jervan

ChinaF. Kong

AmericasC. Seyer

TechnologyR. Hagen

Sales / Marketing J. Rønsen

CEOM. F. Angelil

CFOJ. Larsen

COOV. Selvig

SupplyG. Henriksen

Organisation

Products

Arne Steinbakk – R&D Manager

7

Presentation outline

Power conversion basicsProducts and applicationsR&DTechnology trends

Power conversion basics

Voltage VCurrent APower W

Electrical power is available as alternating (ac) voltage, typically 230V, 50Hz

Electronics operate from low dc voltages, typically 5V or lower for digital circuits

8


Telecom equipment require power back-up in case of mains failure (batteries, diesel generator)High reliability (redundant systems)48Vdc output with multiple load distribution to feed downstream converters Flexible system configurationHigh efficiency


Switch

RectifierAC/DC

ACLoad

DCLoad

DCLoadBrick

Brick

48VDC to110/120VAC

InverterGenSet

Batteries

Circuit Breakers

48VDC230 VAC

RectifierAC/DC

RectifierAC/DC

DC UPS SYSTEM

9

Power Conversion Basics

Switch

230 VAC UPSAC/DC

ConversionAC/DC

AC/DC

110/208 VACTransformer

GenSet

Batteries (High Voltage)

AC Distr.

UPSDC/AC Distribution

Transformer

DCLoad

DCLoad

AC UPS System

Bypass

On Board

ACLoad

Brick

Brick

Front-End

Power Conversion Basics

AC to AC UPS systems require more conversion stages from input to load

Result: lower efficiency, higher cost

Distribution of low voltage DC is safer and eases installation and service

10

Products and applications

Convergence of IT and telephony

IT or computer equipment traditionally require AC UPSTelephony equipment require DC UPSComputer and telecommunication equipment are becoming one!New IP data/voice equipment is being powered from 48Vdc UPS

�Extremely high power requirements


Distribution

ControlEnd Equipment

Batteries

AC in

DC out

Rectifiers

DC/DC

Source: Skyline Marketing

TELECOM POWER SYSTEMS

11


Distribution

Control Unit

Rectifiers


Small systems: Less than 100A (5kW)

Medium systems: Between 100 and 1000A (5kW – 50kW)

Large systems: Greater than 1000A (50kW)

12


MPSFan-cooled

SMPS200Convection-cooled

Applications small systemsCustomer premises, POP’s, DLC cabinets, Wireless, fiber repeaters


Applications medium systemsWireless base stations, distributed power systems, large POP’s, fiber repeaters, small switches

13


Large GSeries® system

Large central office switches, internet HUB’s, Web hosting, co-location, optical switches.

Extendedmarket cover in USA


Large Aeon System

Large central office switches, internett HUB´s, Web hosting, co-location, optical switches

New system replaces old system at substantially lower cost

14


TCP/IP Gateway™Most technologically advanced monitorDC system communication via LonworksMost technologically advanced monitorDC system communication via LonworksActs like a small web server: Point your browser to IP address and you are connected to the DC PlantIP connectivity through Telnet, SNMP and TCP/IP

Output Amperes

1000 >100 > 10000 >

Functional

MPSU 4000 MPSU 6000

TWPP 1500, 3000

PRS 700- 10kw

PRS 700- 21 kW

TWPP 250kW

AEON 4000 500kW

G-series 500kW

MEDIUM LARGESMALL

Flexible Futuristic

MPSU 200

MPS


15

R & D

Mission statement

Our focus is to provide the most cost competitive state-of-the-art power solutions –on time

R & D

Cost competitive productsTechnology and outsourcing in one departmentOutsourcing and production ramp-up becomes an integral part of the development projectContinuous product maintenance and cost reduction activities on volume products

16

R & D

State-of-the-art power solutionsHigh focus on research and new technologyCollaboration with internationally acclaimed universities on strategic research programs Synergies from R&D centres within the Group

R & D

State-of-the-art productSMPS 4000 Aeon

Output power 4 kW (48V/75A)Input voltage range 100 – 300 VacProtected against high/low mains, high temperature, lightning transients…Complete digital interface to the system using Can bus Power Density 7.2w/cubic inch or 0.44w/cubic cmOne of the highest power density, most cost effective units on the market

17

R & D

On-Time SolutionsGoal is to reduce development time to 12 months or less for new productsReduce risk before project startDefine system requirements before designing the building blocksFocus on project management

R & D

Research, Development and Engineering:Capabilities

R&D departments in England, USA and Norway, appr. 60 peopleLocal system engineering in all regions, appr. 30 peopleCore products are developed in R&D, system adaptions to fit local requirements and approvals are done locally

18

Technology trends

Extremely high power requirements for IP telephony/Internet Integration of telecom equipment and DCpower in small sitesRemote monitoring (Internet, SNMP)Distributed intelligence

Technology trends

More compact power solutions. Higher density, higher efficiency”Bricks” on each printed circuit board due to low operating voltages. End converter must be close to the loadDesigns streamlined for stable, high volume production

19

Outsourcing

Vidar Selvig - COO

Outsourcing

High volume core products from Eltek Energy already outsourcedOutsourcing TWPP from PCP in process –effect from April 2001Outsourcing of high volume system assembly in process –prepare for large 3G volumesGlobal logistic and warehousing outsourced from Q1 2001IT will be outsourced (partly ASP) in Q2 2001Outsourcing partners in Europe, Asia and Americas

20

Outsourcing effects

Access to high capacityImproved delivery performanceImproved qualitySignificantly lower product costFocus changed to other critical business processes

Financials

Jørgen Larsen - CFO

21

Financial development 1996-2000Continuing operations

0

50

100

150

200

250

300

1996 1997 1998 1999 20000

500

1000

1500

2000

2500

3000

EBITDA Revenue

Key Figures

2000 1999 Growth rate 2000 1999 Growth rate

Revenue 1 894,0 1 117,5 69 % 538,3 370,1 45 %EBITDA 252,1 108,6 132 % 73,1 46,6 57 %EBIT 189,1 55,0 244 % 54,3 31,8 71 %Profit before tax, cont. operations 205,6 56,2 266 % 60,2 32,7 84 %Net profit, cont. operations 135,4 37,8 258 % 41,6 19,5 113 %Disc.oper./Equity part. 161,2 153,1 5 % -33,6 135,7

Net profit 296,6 190,9 55 % 8,0 155,2

EPS 5,36 1,48 262 % 1,72 0,81 112 %Cash EPS 7,14 3,06 133 % 2,21 1,20 84 %

Whole year 4th quarter

EPS figures are calculated excluding discontinued operations and equity participation compensation.Integration costs of NOK 7 million in 4th quarter 2000.

22

Revenue and EBITDA

29,219,0 17,4

8,7 12,0 15,0

35,046,6

39,8

70,7 68,4 73,1

0

200

400

600

800

q1 98 q2 98 q3 98 q4 98 q1 99 q2 99 q3 99 q4 99 q1 00 q2 00 q3 00 q4 000

20

40

60

80

EBITDA Revenue

Including employer’s tax on stock optionsAmounts in MNOK

Development Gross Margin 2000

40,5 % 41,9 %

35,9 %38,9 %

0 %

10 %

20 %

30 %

40 %

50 %

Q1/00 Q2/00 Q3/00 Q4/00

23

Africa1 % Asia/Pacific

10 %

Europe37 %

Americas46 %

705435

0300600900

2000 1999

Global sale per 4th quarter

Amounts in Mill NOK

China6 %

22 230

300600900

2000 1999

864

490

0300600900

2000 1999

19279

0300600900

2000 1999

111 910

300600900

2000 1999

GR: -4%

GR: 76%

GR: 143%

GR: 22%

GR: 62%

Revenue and Order per 4th quarter

498

1 894

2 162

230

1 118 1 206

0

400

800

1200

1600

2000

Revenue Order intake Order backlog

2000 1999

Amounts in MNOK

24

Order Intake per quarter

201 191237

179243 274

360 329

422

640

533 567

0

100

200

300

400

500

600

700

1.q.98 2.q.98 3.q.98 4.q.98 1.q.99 2.q.99 3.q.99 4.q.99 1.q.00 2.q.00 3.q.00 4.q.00

Amounts in MNOK

Order Backlog per quarter

164 133 146 141 168210

271230

302

480 469 498

0

100

200

300

400

500

600

1.q.98 2.q.98 3.q.98 4.q.98 1.q.99 2.q.99 3.q.99 4.q.99 1.q.00 2.q.00 3.q.00 4.q.00

Amounts in MNOK

25

75 %

15 %10 %

Power Systems Batteries/other Installation/Service

Sales per product area 2000

9 %

34 %

42 %

2 %13 %

Small recitfiers SMPS 1000 TWPP SMPS 4000 SMPS 5000

Power Systems

Sales per customer group 2000

32 %

20 %

48 %

Wireline-Backbone Wireline-Access Wireless

26

15 largest customers

NextelLevel 3Switch & DataWorldcomPRTEM AllegianceMaxis CommunicationDolphinN G BaileyKPN-QwestNortelMotorolaDongguan City TelecomAlcatelTelenor

Share of total revenue: 55%

Balance Sheet

Amounts in MNOKGoodwillOther fixed assetsTotal fixed assetsInventoriesShort term receivablesCash in hand, bank depositsTotal current assetsTotal assets

Share capitalOther equityMinority interestsTotal equityLong-term liabilitiesBank overdraftShort term liabilitiesTotal current liabilitiesTotal equity and liabilities

Equity ratio

31.12.00541,6125,2666,7258,7504,0128,3891,1

1.577,8

24,3944,624,3

993,1123,513,3

427,9441,1

1.557,8

63,8%

31.12.99514,7154,3669,0195,5282,6124,2602,3

1.271,3

14,0880,814,5

909,371,20,7

290,1290,8

1.271,3

71,5%

27

Employees per 2000.12.31

96

413

55

230

China Europe Asia/Pacific America

Total number of employees; 794

Market Outlook


28

Europe

A leading player in EuropeLocations in Norway, UK,Germany, France, Sweden and Poland

Sales in more than 25 countries

Turnover NOK 705 millionCustomers/contracts

Level 3DolphinNortelTelenorEricssonSiemensKPN QwestNG BaileyAlcatelFibreway

FacilitiesHead office, R&D, System Assembly Service, Installation

Market outlook Europe

UMTS licences awarded in 80% of EuropeNew infrastructure (approx 5000 base stations perlicence per country)Fierce competition Time to market/deliveries vital

Broadband networks build-upGreat demand for new co-location facilities

UK still European HubMainland Europe currently developing

Deregulation of network accessOpportunities for new players

29

Asia/Pacific

Significant player in Asia/Pacific

Market leader in Singapore, big in Australia and the regionTurnover NOK 192 millionCustomers/contracts

Nortel, Silcar, Singapore Telecom, Phiana, Nokia, Maxis, Motorola

FacilitiesEngineering and system design, System assembly, installation, service/maint.

LocationsSingapore SydneyDehli

Market Outlook Asia/Pacific

Strong demand for 2/2,5G wireless networksInternet development requires infrastructure

Large Internet sitesTele hotelsCo-location facilities

Broadband networks/Network accessTrend from US and Europe starting in Asia

Promising future for 3G wireless networks

30

China

Well established in China

Consolidated turnover NOK 111 million

Turnover based on Eltek/PCP products NOK 300 million

Customers/contractsGuangDong Province Mobile, Dongguan City TelecomGuangZhou City TelecomYuNan Province MobilePRTEMChina Unicom

FacilitiesManufacturing,Engineering and system design,

System assembly, installation, service/maint.

LocationsDonguan GuangZhouBeijingShenYanWuHanHongKong

Market Outlook China

Huge & promising market with world’s highest growth rate

Telephone subscribers >200M in Year 2000Mobile subscribers 70M in Year 2000, 200M

in Year 2003 Internet subscribers 20M in Year 2000 with 150-200% annual growth rate

31

Americas

A strong position in the world’s largest market

Turnover NOK 864 millionCustomers/contracts

Worldcom NextelMotorolaAllegianceSwitch & DataAT&T

FacilitiesManufacturing, Engineering and system design, System assembly, installation, service/maint.

LocationsCrystal Lake8 sales offices across the US

Mexico City

Market Outlook US

Public network cap ex still strong but growing slower than past two yearsDC power spending rate ahead of overall capexServers/IT industry going away from AC to DCHigh growth segments

Optical networkingBroadband accessWirelessCo-Location and Web hosting

32

Market Outlook CALA

Strong demand for 2/2,5G wireless networksLicenses still being awardedGreat demand for fixed wireless

Underdeveloped fiber network infrastructureBackboneWeb hostingAccess and competitive services

Promising (long term) market for 3G

Network Expansion Drivers

Growing traffic (voice/data) volumesNeed for speedNew Internet services - wireline/wirelessFalling information costs


33

The Broadband Imperative

Deregulation unleashes competitive forcesCarriers are expanding service offeringsCustomers with powerful PCs want fast access Network bandwidth must expand quickly

➨ Significant implications for power


Internet Impact

Explosion of applications - information, entertainment, e-commerceLow-cost, high-value mediaHigh-speed accessFacilitates multimedia - voice, data, videoTransport over backbone telephone network


34

Tomorrow’s All Optical Network

Intercity SuperRing

Local City Ring

Loop Ring

Multimedia Terminals

IPServer

Multimedia Terminals

OpticalSwitches Optical

Switches

IPServer

OpticalCross-connect

DC Power System


Global Wireless Subscribers

0

500

1 000

1 500

2 000

2 500

3 000

1995 2000 2005 2010 2015

Subs

crib

ers

(mill

ions

)

EU 15 N. America Asia Pacific CALA ROW

Source: ITU, Skyline Marketing

35

Source: Darnell; Skyline, est. Feb. 01

Global Telecom Power Market

CAGR 24%

CALA

Asia-Pacific

EMEA

N. America

China

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

2000 2001 2002 2003 2004 2005

Power Equipment-only

36%

17%

21%

30%

24%

CAGRUSD

Global Market Shares 2000DC Power Systems for telecom power

2 %

2 %

2 %

3 %

4 %

14 %

16 %

48 %

9 %

PowerOneAscomInvensysPeco IIEltekMarconiEmersonTycoOthers


36

Recent development

EuropeBuild out of

Web hostingTele hotelsCo-locations

Still 2G wireless build out3G wireless start in 2nd quarter 2001

Recent development

USAExtended market cover

2000: Medium systems – TWPP2001: Small systems – Eltek products (large volume)

Large systems – new product; GSeries®New location in Dallas from 2nd quarter

Increased competitivenessOutsourcing TWPP to Mexico – significant cost reduction

Continued strong wireless activityAll major service providers confirm large capex programmes

37

Recent development

Asia/Pacific and ChinaHigh 2G wireless activityInitial 3G wireless activityWeb hosting and co-location build upIncreasing activity on Frame Agreement in AustraliaIncreased distribution network in ChinaCo-ordination and consolidation of Eltek’s and PCP’s activities in China

Expansion

Leverage UMTS opportunities in Europe

Strengthen sales and distribution in the USExpand into South America

Capitalise on network inAsia/Pacific

Expand salesnetwork in China

Continue growth and global expansionOrganic growth AcquisitionsMergers

38

Stock Information


Stock performance

Eltek Stock vs OSE Total Index and IT-index

as per 26.03.2001

0

100

200

300

400

500

08.07

.98

08.09

.98

08.11

.98

08.01

.99

08.03

.99

08.05

.99

08.07

.99

08.09

.99

08.11

.99

08.01

.00

08.03

.00

08.05

.00

08.07

.00

08.09

.00

08.11

.00

08.01

.01

08.03

.01

Eltek ASA Total index IT index

NOK

39

Largest shareholders per 28 February 2001

Shareholders registered in

VPS as at 06.03.01

Shareholder Number of shares % of totalCC Industries 7 480 828 30,8 %Eltek Holding AS/A.F. and W. Angelil 6 704 303 27,6 %Edward Weil Jr 982 108 4,0 %DnB Investor (sev. accounts) 788 680 3,3 %Gjensidige Nor Kapitalforvaltning 464 680 1,9 %Tine Pensjonskasse 444 000 1,8 %Storebrand Livsforsikring 361 700 1,5 %Chris Seyer III 343 099 1,4 %SND Invest AS 320 000 1,3 %Stephen Griffitts 280 613 1,2 %Vital Forsikring (sev. accounts) 222 900 0,9 %Aksjefondet Gambak 200 000 0,8 %Avanse Forvaltning (sev. accounts) 193 500 0,8 %DnB Markets 167 560 0,7 %Storebrand Spar (sev. accounts) 166 000 0,7 %Vesta Forsikring (sev. accounts) 133 760 0,6 %Terra Forvaltning (sev. accounts) 126 000 0,5 %Tony Cosentino 110 000 0,5 %Jørgen Larsen 105 249 0,4 %K-G Invest 105 000 0,4 %

Number of shareholders

761 624

2 070

2 871

0

500

1000

1500

2000

2500

3000

year end 1998 year end 1999 year end 2000 28.02.01

Documents

Powering the world’s telecom infrastructurereports.huginonline.com/814109/88153.pdf4 History 1968 PCP established 1971 Eltek established 1983 Eltek UK established as the first step